Exporters face tariff surge after AGOA expiry

Ghana’s eligibility under the African Growth and Opportunity Act (AGOA), which provided duty-free access for eligible goods from Sub-Saharan Africa to the US market, officially ended on 30 September following the Trump administration’s decision to allow the programme to lapse.

This development means Ghanaian exporters will face increased tariffs, particularly in value-added and labour-intensive sectors.

The International Trade Centre (ITC) highlights significant tariff hikes for sectors such as apparel and textiles (+14 per cent), skins, leather and footwear (+4.3 per cent), and processed food and animal feed (+2.4 per cent). These sectors heavily relied on AGOA’s preferential access for competitiveness.

ITC Executive Director Pamela Coke-Hamilton warned the expiration could severely harm exporting businesses already grappling with other trade challenges.

“If AGOA were to lapse, it would deal a blow to African countries already feeling the weight of new trade measures, from the latest tariffs to sustainability requirements. Access to key markets is becoming more difficult, and African countries, especially the least developed, are feeling the strain,” she stated.

The United Nations Conference on Trade and Development (UNCTAD) echoed concerns, noting that AGOA’s lapse threatens export diversification and industrialisation across Africa, particularly impacting light-manufacturing exports such as apparel and agro-food products.

 African traders will now face tariffs two to three times higher than those on fuels and minerals due to tariff rate disparities.

Dr Samuel Worlanyo Mensah, Executive Director of the Centre for Greater Impact, stressed the need for Ghanaian businesses to expand their market scope and leverage the African Continental Free Trade Area (AfCFTA) to boost intra-African trade and avoid future tariffs.

He called on the government to support businesses strategically in identifying and expanding into thriving markets within Africa to avert any economic setbacks.

“Ghanaian businesses must start looking for other markets that are accessible and without such high tariffs. It is a good time to take advantage of AfCFTA and engage in trade among ourselves on the continent,” Dr Mensah.