Ghana engages US on AGOA renewal, tariffs and trade balance amid ‘America First’ push

Ghana has affirmed its commitment to strengthening economic cooperation with the United States, as Trade, Agribusiness and Industry Minister, Madam Elizabeth Ofosu-Adjare, met senior U.S. officials in Washington, D.C., to address critical trade policy issues impacting both countries.

The high-level meeting came in the wake of renewed protectionist measures under the United States’ revived “America First” Trade Policy.

 The policy, reintroduced by the Trump administration in early 2025, imposes a blanket 10 per cent tariff on imports from several countries, including Ghana, and threatens to undercut long-standing preferential arrangements such as the African Growth and Opportunity Act (AGOA).

A release copied to the Ghana News Agency said the discussions focused on AGOA, Ghana’s Local Content Policy, U.S. import regulations, outstanding debts to American firms, and the revival of the Trade and Investment Framework Agreement (TIFA).

Madam Ofosu-Adjare emphasised the importance of AGOA in attracting U.S. investment, particularly, in Ghana’s growing garment and textile industry.

 She reiterated Ghana’s strong support for the renewal of the agreement, which is set to expire in September 2025.

“AGOA has been a win-win framework that not only creates jobs and fosters economic growth in Ghana but also benefits U.S. industries sourcing competitive African goods,” she said.

AGOA, enacted in 2000, provides duty-free access to over 1,800 products from eligible sub-Saharan African countries.

Ghanaian exports under the agreement have included cocoa derivatives, textiles, gold jewellery, cashew nuts, and shea butter.

However, with the new tariff regime casting uncertainty over future market access, Ghana is urging urgent consultations to preserve the gains made under AGOA and to explore updated frameworks that reflect current trade dynamics.

The Minister also addressed concerns over Ghana’s local content policies, particularly their implications for U.S. mining firms operating in the country.

Both parties agreed on the need for constructive engagement to balance Ghana’s development goals with the expectations of foreign investors.

Concerns were also raised about the importation of excavators and over-aged vehicles from the U.S. into Ghana.

Both delegations highlighted the importance of regulatory clarity and compliance with safety and environmental standards.

On outstanding debts owed to American businesses operating in Ghana, Madam Ofosu-Adjare assured the U.S. officials that the Ministry of Finance was actively working to resolve the payments in a timely manner.

The discussions also underscored reactivating the TIFA platform, a structured bilateral mechanism to strengthen trade and investment relations.

As a follow-up, Madam Ofosu-Adjare is scheduled to meet with officials at the U.S. Trade Representative’s Office in the coming weeks to continue consultations.

The United States delegation welcomed Ghana’s initiative to engage directly, signalling its willingness to collaborate on shared priorities.

Madam Ofosu-Adjare was accompanied by Ambassador Jane Gasu Aheto, Acting Head of Mission; Dr Mary Awusi, Chief Executive Officer of the Ghana Free Zones Authority; and Mr Abdul Razak, Deputy CEO of the Ghana Investment Promotion Centre.

Representing the United States were Mr Thomas Bruns, Deputy Assistant Secretary for the Middle East and Africa at the Department of Commerce, and Mr Giancarlo Cavallo, Acting Director and Designated Federal Officer for the President’s Advisory Council on Doing Business in Africa (PAC-DBIA).

Ghana and the United States have long maintained robust trade relations, with total goods trade reaching $2.1 billion in 2024.

 U.S. exports to Ghana stood at $967 million, while Ghanaian exports to the U.S. reached $1.2 billion.

However, the balance has shifted, with a growing U.S. goods trade deficit of more than $200 million.

The recent “America First” policy – originally championed by former President Trump during his first term and revived after his re-election – has triggered global concern.

A sweeping executive order issued in January 2025 authorised reciprocal tariffs and the review of all major trade agreements.

By April, tariffs as high as 50 per cent had been applied to select imports from some countries.

These developments have pushed Ghana to strengthen its commitment to diversify its export markets through the African Continental Free Trade Area (AfCFTA), while still seeking strong bilateral ties with major economies like the United States.

Madam Ofosu-Adjare’s diplomatic overtures are part of Ghana’s strategy to preserve access to U.S. markets, protect local industries, and promote a stable investment climate for mutual benefit.

Source: GNA

The post Ghana engages US on AGOA renewal, tariffs and trade balance amid ‘America First’ push appeared first on Ghana Business News.

Read Full Story