Ghana's Exporters Urged to Explore New Markets as AGOA Expiration Looms
Nicholas Apokerah, Executive Director of TradeAid Integrated, has warned Ghanaian exporters and manufacturers about the potential impact of the African Growth and Opportunity Act's (AGOA) expiration. He has urged them to explore new markets, including the Africa Continental Free Trade Area (AfCFTA), EU, Asia, BRICS, and Arab countries, as negotiations with the United States to renew AGOA are ongoing.
AGOA, which expired in 2025, provided duty-free access to the US stock market for over 6,000 products from eligible African countries, including Ghana. This made Ghanaian products more affordable globally and directly benefited US importers. However, if negotiations fail to renew AGOA, Ghanaian exporters and African manufacturers could face severe consequences.
The end of AGOA's duty-free framework would trigger higher tariff costs for exporters. US tariffs on affected products could potentially reach 15%, making Ghanaian products less competitive in the US stock market today. This would not only impact Ghana's foreign exchange earnings but also discourage investment in local manufacturing.
Apokerah has called for a paradigm shift, encouraging exporters to look beyond the US stock market. He highlighted the opportunities within the AfCFTA, which aims to boost intra-African trade and investment. With 54 African Union member states involved, of which 48 have ratified the agreement, the AfCFTA seeks to reduce tariffs on 90 percent of goods, making it a promising alternative market.
With the future of AGOA uncertain, Ghanaian exporters and manufacturers must prepare for potential changes. Exploring new markets, as urged by Apokerah, could mitigate the impact of AGOA's expiration. The AfCFTA, with its vast potential, offers a significant opportunity for Ghanaian products to remain competitive and accessible on the global stage.
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