The Minority Caucus in Parliament has expressed outrage over the U.S. government’s decision to impose a 10% tariff on Ghanaian products, citing unfair trade practices.
According to Michael Okeyere Baafi, Ranking Member of the Committee on Trade, Industry, and Tourism, “We find ourselves, among other African countries, in the crosshairs of a sweeping tariff escalation by the United States.”
The Caucus is urging the government to prioritize the African Continental Free Trade Area (AfCFTA) to diversify export markets and reduce reliance on the US.
They also call for support for affected exporters and diplomatic efforts to reduce the tariffs.
Micheal Okyere Baafi emphasized, “The introduction of a 10% tariff on goods that previously entered the US duty-free will likely reduce the price competitiveness of Ghanaian products in the US market.”
The affected sectors include apparel, cocoa, and yams, which are critical to Ghana’s economy.
The apparel industry, employing over 5,000 young people, is particularly vulnerable.
Micheal Baafi noted, “While most cocoa beans enter duty-free, about 30% of cocoa exports (powder and paste) benefit from AGOA preferences. A 10% tariff would impact this segment.”
The Minority Caucus is also criticizing the government’s lack of clear policy direction on exports.
Micheal Baafi stated, “Unfortunately, we have not seen a clear policy direction on exports by the NDC government. How they respond to this sweeping tariff by the US is very critical to our exporters, especially those in the apparel industry that employs over 5,000 young people.”
The Caucus recommends that the government develops specialized programs and policies to support exporters, provides financial assistance, training, and market intelligence, and advocates for the extension or replacement of AGOA to maintain preferential access to the US market.
In a statement, Michael Baafi concluded, “The government should provide a clear policy direction on exports and how it plans to respond to the US tariffs. Ensure that the National AfCFTA Policy Framework and Action Plan are adequately funded and implemented.”
-BY Daniel Bampoe
