AGOA ‘technically dead’ due to new US tariffs – Mahama
President John Mahama has declared the African Growth and Opportunity Act (AGOA) “technically dead” following the United States’ decision to impose new tariffs on African exports, including a 15 per cent levy on Ghanaian goods.
Speaking at his first presidential media encounter of his second term, President Mahama warned that the prospects for the trade agreement’s renewal are bleak.
“Countries in Africa enjoyed zero tariffs in the US because we were classified as developing economies. It was a concession the US gave. But President Trump has a more transactional approach. He believes the US has been taken for granted for too long, so even countries like Ghana have now been slapped with a 15 per cent tariff after enjoying zero tariffs.
“AGOA is technically dead. It was due for renegotiation in September, but with this tariff in place, there is no chance of renewal. We are watching carefully. The power to impose tariffs rests with Congress, but in this case, the US president is pushing the limits,” he explained.
AGOA, enacted in 2000, has been a cornerstone of US trade policy with sub-Saharan Africa, granting duty-free access to more than 1,800 products, in addition to over 5,000 items under the Generalized System of Preferences programme.
The programme was modernised and extended in 2015 to run until 2025.
However, the Trump administration’s protectionist stance has cast serious doubt over its continuation.
“We want to know what happened and, if there was wrongdoing, to sanction whoever it is. While we work to stabilise our economy and improve the value of our currency, we must protect that currency, because a strong cedi is good for all of us,” he stated.
The President added that the BoG’s decision to step back from the forex market is part of a broader effort to let the cedi “find its true value”, while tightening oversight to prevent abuses that could undermine Ghana’s economic recovery.
