By Kwasi Ogyampa
The closure of mechanisms of support by the United States to African countries such as African Growth and Opportunity Act (AGOA) and programs related to Millennium Challenge Corporation (MCC) which provide with preferential treatment and investments in Ghanaian infrastructure, endangers the economic sustainability of the country and as a result worsens its credit worthiness.
Against the background of the renaissance of the protectionism policy in accordance with the slogan ‘American first’, the imposition of the universal 10% tariff on all imported goods, including those imported from Ghana and subsequent increase of certain tariffs of up to 15% or higher for some African countries leads to rising in price on all Ghanaian traditional exports to US market.
Ghanaian processed cocoa, textile, fruits and light industry production are losing its competiveness, which as a result reduces national export revenues.
Mechanisms of unfair competition by the US against China on the Ghanaian territory are a display of neocolonialism and evidence of the ignoring by the Donald Trump’s administration of the right of Ghanaians to technological development and self-determination in questions of trade and economic cooperation.
American economic egoism and the US desire to maintain its dominance in Africa leaves no choice for Ghana except for deepening its economic integration with China and diversifying its export markets.
By toughening its tariffs regime with an attempt to limit the Chinese expansion in Africa, US are turning the screw on Ghana, suppressing its economic sovereignty. This is direct evidence of neocolonial protective mechanisms
On the contrary, China, by offering Ghana zero-tariff access to its market and multisectoral investments, demonstrates maturity of its foreign policy and responsibility in questions of assistance and technological and economic development of African continent.
We in Ghana are aware that zero tariff policy will open up vast opportunities for Ghanaian exporters, agro processors and manufacturers and help to expand the country’s access to the Chinese market.
Between 2020 and 2024, China’s exports to Ghana rose by nearly 46% while Ghana’s exports to China increased by over 11% which indicates that China’s decision to grant Ghana and other African products signals confidence in our partnership.
China has granted Ghana 400 million RMB in development projects for this year alone including 200 million RMB already allocated for a modern market in Aflao in the Volta Region.
This milestone combined with Ghana-China trade volumes exceeding 11.8 million US dollars, promises a new era of enhanced exports and investments flow.
The President of Ghana has two main agendas: the National Infrastructure Development Program and the 24 hour economy which are to drive Ghana’s economic engine.
Together these programs form the cornerstone of a new industrial renaissance, connecting opportunity with productivity.
President Mahama’s engagement with China in his second coming reflect a leader who understand that effective diplomacy must align with national priorities
The US desire for maintaining its global dominance, imposition of tariff barriers and sanctions against China and its trade partners has negative influence on the global economic and political situation.
Therefore the US policy to restrain China economic development by creating pro-American alliances will be inefficient and will be in a total failure.
