AGOA expiry threatens economy, foreign exchange – IEAG
The Importers and Exporters Association of Ghana (IEAG) says the country will suffer serious economic setbacks if it fails to urgently address the expiration of the African Growth and Opportunity Act (AGOA).
According to the organisation, since Ghana is an import-driven economy, losing the privileges that AGOA presents will cause foreign exchange deficiencies for trade.
This comes on the back of growing frustrations among Ghanaian exporters over the expiration of AGOA, which they fear will jeopardise access to the United States market and pose significant economic challenges.
Ghana’s status under AGOA, which enabled duty-free entry of eligible goods from Sub-Saharan Africa into the United States, officially ended on 30 September, following the Trump administration’s decision not to renew the programme.
This means Ghanaian exporters, particularly in value-added and labour-intensive sectors, will now encounter increased tariffs in the US market.
Reacting to the development in an interview with ZED 101.9 FM, the Executive Secretary of the Importers and Exporters Association of Ghana, Samson Asaki Awingobit, cautioned that if government fails to take decisive action, the country may face serious economic turmoil.
“Government will suffer the consequences if it fails to act because we are import-based, and not having enough forex in our coffers will put a strain on the cedi, causing significant depreciation of the cedi against the dollar,” he said.
He added: “Most of our exporters under AGOA bring in the forex through their exports to the US market, and if this begins to decline, it will cause economic shocks to the country.”
Meanwhile, the First Gentleman says Ghana has begun talks with the United States over tariffs imposed under the Trump administration and the future of the key African trade pact, describing the outcome as critical for Ghana’s economic prospects.
