President Mahama Declares AGOA Technically Dead Amid U.S. Tariff Hike

 

President John Dramani Mahama has declared the African Growth and Opportunity Act (AGOA) "technically dead" following the United States' imposition of new tariffs on African exports, including a 15% duty on goods from Ghana.

Speaking during his first presidential media engagement in his second term, Mahama expressed deep concern over the future of the trade agreement, warning that the chances of its renewal are slim.

“Countries in Africa enjoyed zero tariffs in the U.S. because we were classified as part of the developing world. It was a concession granted by the U.S. government,” Mahama stated. “Then came President Trump with a more transactional approach. He believed the U.S. had long been taken for granted, so he imposed a 15% tariff on Ghana, up from zero.”

“AGOA is technically dead,” Mahama added. “It was due for renegotiation in September, but with this 15% tariff, there’s virtually no chance of it being renewed. We’re watching developments closely.”

Although the authority to impose tariffs resides with the U.S. Congress, Mahama pointed out that President Trump consistently pushed the boundaries of executive power in this area.

Enacted in 2000, AGOA has served as a central pillar of U.S. trade policy with sub-Saharan Africa. It provides duty-free access to the U.S. market for over 1,800 products, in addition to more than 5,000 items under the Generalised System of Preferences (GSP) program.

The act was updated and extended in 2015 to remain in effect until 2025. However, the Trump administration's protectionist trade policies have cast significant doubt on AGOA’s future.

For Ghana, the newly imposed tariffs present a direct challenge to its export competitiveness, effectively reversing years of gains made under the duty-free provisions of AGOA.

Source: MyJoyOnline.com