Importers urge gov’t to engage US, other countries as AGOA expires
By Stephen Freeman
The Importers and Exporters Association of Ghana has called on the government to act swiftly and negotiate with the United States of America over a 15 per cent increase in tariffs on exports to the US, as well as the expiration of the African Growth and Opportunity Act (AGOA).
AGOA, enacted in 2000, has been the cornerstone of US trade policy with sub-Saharan Africa, granting duty-free access to the American market for over 1,800 products, alongside more than 5,000 products under the Generalised System of Preferences programme.
However, the Act expired on 30 September 2025, ending 25 years of duty-free trade for eligible African countries into the US market.
Speaking on Business Breakfast on Zed FM, the Executive Director of the Importers and Exporters Association of Ghana, Sampson Asaki Awingobit, maintained that if government fails to negotiate with the US soon, the cedi will depreciate and businesses may be forced to cut costs through layoffs and other stringent measures.
“What this means is that it will affect job creation, and some companies may even have to lay off some of their staff because the demand for their products may reduce as a result of the 15 per cent increase,” he revealed.
Mr Awingobit also said the situation would affect the nation’s foreign exchange reserves.
“If we export, we bring in proceeds to shore up what the central bank receives in the form of loans, grants and other inflows. This will cause an artificial shortage of forex,” he explained.
On a positive note, he expressed optimism about government’s engagement with China to open a new market for Ghanaian exporters. He believes it will help alleviate the pressure, even though it is a new market and a medium-term intervention.
“So, the only option was finding a new market, and we are grateful to the Chinese for giving Ghana zero per cent market entrance. However, this is not long-term, and we encourage the government to engage with other countries, alongside the USA, to enable us deliver effectively,” Mr Awingobit added.
