Wednesday, December 10, 2025

Importers & Exporters Association Urges Government to Speak on AGOA Expiration

The Importers and Exporters Association of Ghana (IEAG) has expressed deep concern over the expiration of the African Growth and Opportunity Act (AGOA), which officially ended on 30th September 2025, without any clear communication from the Government of Ghana on the way forward.

According to the Association, the government’s silence on whether Ghana will pursue renewal, negotiate alternative trade arrangements, or implement transitional measures is creating anxiety and uncertainty within the private sector, particularly among exporters.

AGOA, first enacted in 2000, granted eligible sub-Saharan African countries duty-free access to the United States market for thousands of products, with the aim of promoting industrialization, investment, and job creation. The legislation has been extended several times, with the latest renewal covering 2015–2025.

For Ghana, AGOA has been a critical trade policy tool. Exporters in cocoa derivatives, textiles, shea butter, cashew, and gold jewellery have benefitted significantly from the preferential access. According to the 2024 U.S. Trade Representative (USTR) report, Ghana exported goods worth approximately US$340 million under AGOA preferences. However, in the first months of 2025, Ghana’s AGOA-related exports fell by 45% compared to the same period in 2024 — a troubling sign of vulnerability.

With the expiration of AGOA, Ghanaian exports to the U.S. now risk facing compound tariffs, including Most Favoured Nation (MFN) rates under the World Trade Organization framework, effectively stripping away the competitive margin that has supported many Ghanaian products in U.S. markets.

The IEAG warns that this could result in widespread disruptions, undermine investment planning, and severely affect vulnerable sectors such as agro-processing, textiles, and non-traditional agriculture. The Association further cautioned that the absence of clarity risks weakening the synergy between AGOA and the African Continental Free Trade Area (AfCFTA), which Ghana is relying on to boost regional trade and value chains.

“The silence of the government is unhelpful,” the Association noted, adding that the private sector cannot afford indecision or delay at such a critical time. It called on the government to issue an immediate statement on its posture, publish a contingency plan for exporters, and engage vigorously in U.S. and multilateral diplomacy to push for an AGOA renewal or replacement arrangement.

The Association further urged government to provide transparent data on exports, duty burdens, and interim trade measures, while ensuring private sector consultation in all policy decisions.

It also encouraged exporters and importers across the country to remain vigilant, document potential losses, and work closely with the Association in coordinating a unified national response.

Below is the full press statement issued by the Importers & Exporters Association of Ghana:

PRESS STATEMENT

IMPORTERS & EXPORTERS ASSOCIATION OF GHANA
30th September, 2025

AGOA EXPIRES TODAY – WE CALL ON THE GOVERNMENT TO SPEAK CLEARLY FOR GHANAIAN EXPORTERS

Accra, Ghana –
As of today, 30 September 2025, the African Growth and Opportunity Act (AGOA) has officially expired. This marks a pivotal moment for Ghanaian exporters and the private sector at large. To date, the Government of Ghana has remained silent, with no formal declaration having been made to confirm whether Ghana will seek to continue participation in AGOA, extend equivalent trade privileges, or clarify its posture going forward. This silence is deeply troubling given the stakes.

As a recognized mouthpiece and advocate for Ghana’s importers and exporters, the Importers & Exporters Association of Ghana wishes to set on record our grave concerns, our expectations, and our call to action.

AGOA was first enacted in 2000 (initially for 2000–2008) to grant eligible sub-Saharan African countries duty-free access to the U.S. market for thousands of products, with the overarching aim of promoting trade-led growth, industrialization, and job creation across the region. The law was renewed repeatedly, with the most recent extension running until September 2025.

Through AGOA, Ghanaian exporters have had privileged access to the U.S. market, especially in sectors such as cocoa derivatives, textiles, gold jewellery, cashew, and shea butter. According to the USTR’s 2024 AGOA report, Ghana was among the larger exporters under AGOA, with exports totaling approximately US$340 million under benefit status.

In the first months of 2025, Ghana’s AGOA-related exports to the U.S. showed a steep 45% decline compared to 2024 year-to-date figures, a red flag signaling vulnerability. Across sub-Saharan Africa, AGOA has broadly helped export development: in 2022, beneficiary countries exported about US$30 billion worth of goods to the U.S., of which US$10.2 billion was under the AGOA duty-free preferences.

The Importers and Exporters Association of Ghana, drawing on expert analysis, is aware that with AGOA’s expiry, eligible economies will be subjected to compound tariffs, including sectoral and country-specific rates layered on top of WTO Most Favoured Nation (MFN) tariffs. This effectively eliminates the preferential margin that has long enabled many African goods to remain competitive in the U.S. market.

So this goes a long way to prove that AGOA has not only provided preferential access but also an incentive structure for investment, value addition, and export diversification in Ghana. Its expiration represents more than a symbolic loss, since it is a real, present risk to the livelihoods and export potential of many Ghanaian businesses.

Our concerns stem from the looming export disruptions and potential loss of competitiveness, as the absence of clarity leaves Ghanaian exporters uncertain about tariffs, market access, and supply sourcing, with the real risk that many firms could be priced out of the U.S. market overnight.

Secondly, the uncertainty threatens to undermine investment planning, as both investors and manufacturers are likely to delay or scale back commitments in the absence of a predictable trade policy. This poses particular risks to vulnerable sectors such as textiles, agro-processing, and non-traditional agriculture, which depend heavily on stable export markets to remain competitive.

Thirdly, the expiration of AGOA risks undermining the synergy with the African Continental Free Trade Area (AfCFTA). While Ghana and the wider continent are relying on AfCFTA to drive intra-African trade and strengthen regional value chains, it cannot fully substitute for the preferential access and competitive advantage that AGOA provided in global markets such as the United States.

Government silence is unhelpful. The failure of the state to immediately communicate its posture, whether to seek reauthorization, negotiate alternatives, or provide mitigation measures, raises anxiety and undermines investor confidence.

We, at the IEAG demand from the Ghana government:

i. An immediate public statement clarifying whether Ghana intends to remain a signatory or beneficiary, pursue renewal or analogous trade arrangements, or adopt compensatory measures in the interim.

ii. A national contingency plan. If AGOA is not renewed, the State should publish and implement a rescue or transition plan for affected exporters, e.g., tariff mitigation, export incentives, or bilateral trade deals.

iii. Ghana should engage vigorously in U.S. and multilateral diplomacy to push for immediate extension or replacement of AGOA principles, ensuring Ghanaian interests are front and center.

iv. The Government must ensure that Ghana’s AfCFTA strategy is not undermined by global trade disruptions, and that domestic trade, finance, and infrastructure policies support exporters during this shift.

v. Government must provide ongoing, transparent data on exports, duty burdens, and any interim trade measures; and invite private-sector consultation in all decision-making.

We call upon all Ghanaian exporters and importers to remain vigilant, document potential losses, and engage with the Association to coordinate a response. We will lobby, convene forums, gather data, and work to preserve the gains made over decades under AGOA.

Silence today is not an option, since the future of Ghana’s export sector is at stake.

In closing, we reiterate AGOA’s expiration is not merely a legislative detail. It carries profound economic consequences. Ghana cannot afford indecision or delay. The private sector looks to the Government to lead, to clarify, and to protect the interests of Ghanaian producers, exporters, and citizens.

Signed,
Samson Asaki Awingobit
Executive Secretary
Tel: 024 357 5046

 

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