BY Nadia Ntiamoah
President John Dramani Mahama has cast doubt over the future of the African Growth and Opportunity Act (AGOA), warning that the preferential trade agreement is unlikely to be renewed following sweeping tariffs imposed by the United States on African exports.
Speaking at his first presidential media encounter of his second term, John Mahama said the administration of former U.S. President Donald Trump had dismantled the very foundation of AGOA by introducing new tariffs that undermine duty-free access.
“Countries like Africa enjoyed zero tariffs in the U.S. because we were in the developing world. It was a concession that the U.S. gave.
“Here comes President Trump. He has a more transactional mindset. He says the U.S. has been taken for granted for a long time, so even countries like Ghana in Africa, he slapped a 15% tariff on us from zero tariff,” Mahama said.
The President stressed that with such a shift in U.S. trade policy, there is “no way with this 15% tariff AGOA is going to be renewed,” adding that the government is monitoring developments closely.
“The power to impose tariff is that of Congress but in this case, the U.S. president [Donald Trump] always pushes the limit,” he remarked.
Background To AGOA
Enacted in 2000 under President Bill Clinton, the African Growth and Opportunity Act was designed to deepen U.S.-Africa trade relations by granting eligible sub-Saharan African countries duty-free access to the American market.
The program covered more than 1,800 products, on top of the 5,000 items already eligible under the Generalized System of Preferences (GSP).
AGOA became the bedrock of U.S. commercial engagement with Africa, spurring growth in textiles, agriculture, and light manufacturing.
In 2015, the U.S. Congress reauthorized the program, extending it to 2025 and modernizing some of its provisions to reflect new trade realities.
However, Donald Trump’s presidency marked a turning point in U.S. trade policy.
His “America First” doctrine emphasized protectionism, with tariffs imposed not only on rivals like China but also on trade partners in Europe and Africa.
For African exporters, including Ghana, this meant a sharp reversal from the long-standing duty-free concessions enjoyed under AGOA.
Impact on Ghana and Africa
Ghana, which had relied on AGOA to boost exports of textiles, processed cocoa products, and agricultural goods, now faces a 15% tariff on its goods entering the U.S. market.
Industry players fear this could undermine competitiveness, erode market share, and reduce foreign exchange earnings.
