AGOA One-Year Extension Shields Thousands of Jobs – Trade Minister

By Praisebell Rosemond Larbi

The Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has welcomed the decision by the United States government to extend the African Growth and Opportunity Act (AGOA) by one year, describing the move as critical relief for Ghanaian exporters and a major safeguard for jobs across key sectors of the economy.

According to the Minister, the one-year extension, which was signed into law by the U.S. administration on Tuesday, February 3, 2026, will help protect thousands of jobs, particularly in export-oriented sectors such as garments and textiles, agro-processing, cocoa derivatives, and light manufacturing.

She said the decision provides much-needed certainty for exporters who had faced heightened uncertainty following the introduction of new U.S. tariff measures, and reinforces Ghana’s standing as a reliable and competitive trading partner in the American market.

“The extension of AGOA will safeguard thousands of Ghanaian jobs and provide breathing space for exporters who were facing uncertainty in planning production, investment and employment decisions,” the Minister said.

In a statement issued by the Trade Ministry, it was recalled that the extension followed months of sustained engagement by the Mahama administration with U.S. authorities, aimed at mitigating the impact of new tariff measures on Ghanaian exports.

“It would be recalled that since the imposition of the 10 per cent universal tariff, President John Mahama, through the Minister for Trade, Agribusiness and Industry, engaged U.S. counterparts through both diplomatic and direct engagements to mitigate the impact on Ghanaian businesses,” the statement noted.

The Ministry added that the Trade Minister also held a series of meetings with exporters and industry stakeholders to reassure them of government’s commitment to protecting market access, preserving investment confidence, and preventing job losses.

The background to the extension reflects growing trade tensions. On April 2, 2025, the United States announced a 10 per cent universal tariff on imports from all countries, including Ghana, which took effect on April 5, 2025. This was followed by the introduction of an additional 15 per cent tariff on Ghanaian exports on August 7, 2025, as part of a broader U.S. policy shift aimed at addressing trade imbalances and promoting reciprocal trade practices.

For Ghanaian exporters, particularly those relying on duty-free access under AGOA, the new tariffs raised concerns about declining competitiveness, shrinking margins and potential job losses.

AGOA, which was enacted in 2000, remains one of the most important trade frameworks between the United States and Africa. The programme grants duty-free and quota-free access to the U.S. market for eligible exports from participating African countries. As of the end of 2024, 32 African countries, including Ghana, were eligible under the scheme.

The Trade Ministry stressed that most Ghanaian exports to the U.S. market benefit from AGOA preferences, describing the agreement as a non-reciprocal trade arrangement that has supported export growth, industrial development and job creation.

The Minister said the one-year extension provides a critical window for exporters to stabilise operations, protect employment and maintain market presence, while efforts continue to secure longer-term certainty for businesses operating under AGOA.

She also commended the Ministry of Foreign Affairs, the World Trade Organisation (WTO), and other West African countries for what she described as their collective efforts in securing the extension.

The Trade Minister further praised Ghanaian exporters for their resilience during the period of tariff uncertainty and encouraged them to leverage the Accelerated Export Development Programme to deepen market penetration and strengthen Ghana’s export performance in the U.S. market.

The Ministry believes the extension offers an opportunity to consolidate export gains, protect jobs and reinforce Ghana’s trade position as discussions continue on the future of AGOA beyond the one-year reprieve.