President John Dramani Mahama has expressed doubt over the future of the African Growth and Opportunity Act (AGOA), warning that the trade programme is “technically dead” following the imposition of new U.S. tariffs on African countries, including Ghana.
He revealed that Ghana, which previously enjoyed duty-free access to the U.S. market under AGOA, now faces a 15% tariff on its exports.
Speaking during his first presidential media encounter of his second term, President Mahama explained that AGOA was due for renegotiation in September, but the U.S. administration under Donald Trump disrupted the trade framework with protectionist policies.
“Countries like Ghana enjoyed zero tariffs in the U.S. because we were considered developing. It was a concession that the U.S. gave. Then came President Trump with a transactional mindset, arguing that the U.S. had been taken for granted for too long. So even for Africa, including Ghana, he slapped a 15% tariff on us from zero,” Mahama said.
“AGOA is technically dead. It was due for renegotiation in September, but with this 15% tariff, there is no way it will be renewed. We are watching carefully. The power to impose tariffs lies with Congress, but in this case, the U.S. president is pushing the limit,” he added.
Since its enactment in 2000, AGOA has been central to U.S.–Africa trade relations, granting eligible sub-Saharan African countries duty-free access to over 1,800 products, in addition to 5,000 items under the Generalized System of Preferences (GSP).
Congress modernized and extended AGOA in 2015 to run until 2025; however, the Trump administration’s protectionist shift has cast serious doubt on the programme’s continuation beyond its expiration date.
Source: AdomOnline
ALSO READ:
