Editorial: Extending AGOA: A Call to Action

Given the continuous international tariff conflicts, authorities have been urged to advocate for an extension of the African Growth and Opportunity Act (AGOA) or face potential widespread layoffs and failing export industries.

Patrick Boamah, who represents Okaikwei Central as a Member of Parliament, observes that certain firms are deliberately organized to take advantage of AGOA benefits. He specifically mentions garment and textiles producers, notably those located within the Free Zones area.

If not pushed for an extension, the Member of Parliament firmly believes that numerous jobs will be lost and the government will face significant revenue shortages.

The AGOA program, which grants African goods duty-free entry into American markets, has served as a crucial support for numerous Ghanaian exporting companies. However, unfortunately, Ghana hasn’t managed to fully capitalize on this tariff-free arrangement—often struggling to fulfill the volume requirements set by US supermarkets.

Ghana’s potential to maximize the advantages provided by the African Growth and Opportunity Act (AGOA) is hindered by its restricted productive capability, which prevents it from fulfilling the export demands to the United States.

When compared to similar nations, Ghana’s exports to the U.S. through AGOA haven’t been notably substantial. In 2012, Ghana managed to export $24 million worth of goods via AGOA to the United States, equating to just a quarter of what Côte d’Ivoire exported—$995 million at that time. Meanwhile, Kenya, whose economic size is comparable to Ghana’s, saw its exports to the U.S., also within the framework of AGOA, reach up to $355 million during the same year.

FAGE states that Ghana hasn’t been able to fully benefit from AGOA because it lacks the ability to develop sufficient production capabilities to satisfy the demands outlined by AGOA.

The AGOA legislation has undergone renewal several times, with the latest extension occurring in 2015, prolonging its validity until September 2025. This law greatly improves market accessibility to the United States for eligible Sub-Saharan African nations.

This process involves assigning a specific program identifier to around 6,800 tariff categories within the U.S. tariff schedule. This designation enables American importers to bring in products—originating from qualified African nations—without paying duties through the AGOA initiative.

Provided by Syndigate Media Inc. (
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