The Trade and Industry Ranking Member, Michael Okyere Baafi, has indicated that the introduction of a 10 per cent tariff on goods entering the US duty-free could have a negative impact on Ghana.
According to him, if not well managed, it will harm the price competitiveness of Ghanaian products in the US market.
Speaking on Frontline on Rainbow Radio 87.5FM, he explained that products already subjected to standard US port duties might also be impacted if the African Growth and Opportunity Act (AGOA) is affected by this measure.
He has therefore underscored the need for Ghana and the other African countries affected to take advantage of the situation and enhance trading activities among themselves.
He asserted that the previous government under the leadership of former President Akufo-Addo contributed immensely to the establishment of the African Continental Free Trade Area (AfCFTA) as a response to trade shocks.
He advised the John Dramani Mahama-led government to prioritise the implementation of AfCFTA to diversify export markets and reduce reliance on the US.
President Trump took a decision to impose a 10 per cent reciprocal tariff on Ghana, citing unfair trade practices in response to the 17 per cent average tariffs on US imports.
Mr Baafi stressed that Ghana, through the current government, must take advantage of trade diversion opportunities resulting from the imposition of the tariffs by the U.S.
Meanwhile, he has also admonished the government to provide support for exporters who will be affected by the tariffs.
He further underscored the need for Ghana to invest in value-added exports instead of exporting our raw materials to other countries.
If this is well implemented, it will improve local consumption and enhance competitiveness, he argued, adding that through funding from the government and implementation of the National AfCFTA Policy Framework and Action Plan, Ghana will make more gains.
He warned that this could lead to massive job losses and have consequential effects on the Ghanaian economy because the number of imports will reduce due to the increase in prices of exported products from Africa to the U.S. markets.
By: Rainbowradioonline.com/Ghana
