The nation’s fragile export technique has been laid naked as the US slaps a ten% tariff on Ghanaian items, a transfer the Minority Caucus in Parliament says may cripple key industries and threatens 1000’s of jobs.
The Caucus has condemned the federal government’s lack of a transparent coverage response, warning that exporters, particularly these within the attire, cocoa, and yam sectors, will bear the brunt of this sudden commerce shift.
The tariff, introduced by former U.S. President Donald Trump, comes as a retaliation in opposition to Ghana’s 17% common tariff on U.S. imports.
Whereas it stays unclear if the measure will immediately have an effect on Ghana’s African Progress and Alternative Act (AGOA) standing, the monetary implications are already elevating alarms.
Underneath AGOA, Ghana enjoys duty-free entry to the U.S. marketplace for over 6,700 merchandise, together with textiles, agricultural items, and manufactured exports.
The imposition of tariffs means Ghanaian merchandise, as soon as aggressive on account of AGOA advantages, will now face extra prices, making them much less enticing within the U.S. market.
Key Sectors at Threat
• Attire Trade: Over 5,000 younger staff depend on exports to the U.S. The brand new tariff threatens jobs and income in a sector that has lengthy struggled to realize a foothold in worldwide commerce.
• Cocoa Exports: Whereas uncooked cocoa beans enter duty-free, processed cocoa merchandise (powder and paste)—which make up practically 30% of cocoa exports—stand to be hit by the tariff, lowering incentives for worth addition.
• Yams: A staple of Ghanaian exports to the U.S., yams presently take pleasure in AGOA advantages. A 10% tariff may erode this benefit, lowering the enchantment of Ghanaian yams in American markets.
The Minority Caucus has accused the federal government of failing to prioritise export diversification, leaving Ghana overly depending on the U.S. market.
The NPP administration had initiated insurance policies underneath the African Continental Free Commerce Space (AfCFTA) to spice up intra-African commerce and cut back publicity to international commerce shocks.
Nevertheless, the NDC authorities, they argue, has uncared for these efforts, providing no clear plan to counter the U.S. tariff.
“How will the federal government reply to this sweeping tariff? We’ve but to see any specialised program to assist exporters or broaden Ghana’s manufacturing base,” the Minority assertion learn.
Regardless of efforts to extend exports to ECOWAS nations by the One District, One Manufacturing facility (1D1F) initiative—resulting in an increase within the commerce of iron rods, ceramics, and plastics—the broader export technique stays weak.
The Caucus additionally famous that price range allocations for AfCFTA implementation have been disappointingly low, signaling an absence of dedication to financial resilience.
To cushion the impression of the tariffs and safeguard Ghana’s exporters, the Minority Caucus is demanding fast motion:
• Diversification of Export Markets: Quick-track AfCFTA implementation and cut back overreliance on the U.S. by boosting intra-African commerce.
• Authorities Help for Exporters: Present monetary help, coaching, and market intelligence to assist companies regulate.
• Product Diversification & Worth Addition: Shift focus from uncooked materials exports to processed items to extend profitability and international competitiveness.
• Diplomatic Engagement: Open pressing negotiations with the U.S. to make clear the tariff’s impression on AGOA and push for a discount or elimination of the brand new expenses.
• Coverage Readability: The federal government should present a definitive roadmap on the way it plans to navigate the tariff shock and defend Ghanaian companies.
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