Ghana proposes trade framework with US amid AGOA uncertainty
News Ghana, 11 January 2026
Ghana proposes trade framework with US amid AGOA uncertainty
Ghana and United States (US) officials held high level discussions in Washington recently on establishing a comprehensive trade cooperation framework as both nations navigate post African Growth and Opportunity Act (AGOA) economic relations.
Trade Minister Elizabeth Ofosu Adjare and Ghana’s Ambassador to the US, Victor Emmanuel Smith, met with US Trade Representative Jamieson Lee Greer at the Office of the United States Trade Representative (USTR) headquarters to discuss expanded bilateral trade flows and investment opportunities.
The engagement centered on Ghana’s proposal for a structured trade arrangement designed to advance bilateral relations beyond preferential access alone toward more predictable coordination that supports industrial development and private sector expansion, according to Ghana’s Mission in Washington.
Recent US tariff measures dominated discussions, particularly their impact on Ghana’s market access following AGOA’s expiration on September 30, 2025. The trade preference program had provided duty free access for Ghanaian exports valued at approximately 340 million dollars in 2024, including textiles, cocoa derivatives, and manufactured goods.
Ghana emphasized the need for tariff flexibility and differential treatment to support its industrialization drive. The Ministry underscored that sectors including textiles, garments, cocoa processing, and light manufacturing remain critical to the country’s industrial agenda and export diversification strategy.
Ghanaian exporters now face tariffs estimated at up to 15 percent on goods that previously entered American markets duty free. The Importers and Exporters Association of Ghana (IEAG) reported a 45 percent decline in AGOA related exports during early 2025 compared to 2024 figures.
The US House Ways and Means Committee approved a three year AGOA Extension Act on December 10, 2025, offering a potential legislative path for renewal. However, the Trump administration indicated support for only a one year extension, creating continued uncertainty for African exporters.
Ghana also highlighted its strategic role within the African Continental Free Trade Area (AfCFTA) during the discussions. Officials emphasized that hosting the AfCFTA Secretariat and improving trade infrastructure position Ghana as a potential gateway for US companies seeking broader African market access.
This positioning creates opportunities for American firms to leverage Ghana as a regional base for manufacturing, services, and distribution across the continent’s 3.4 trillion dollar market of 1.4 billion people, according to Ghanaian representatives.
The meeting addressed Ghana’s local content policy and its impact on US mining companies operating in the country. Both sides acknowledged the need for constructive dialogue to balance national development goals with investor interests, according to statements from the Ghana Mission.
Concerns were raised about imports of excavators and overage vehicles from the US into Ghana, with emphasis on regulatory clarity and enhanced compliance with standards. The Minister also addressed longstanding payments owed to American businesses, assuring officials that the Ministry of Finance was working toward timely resolution.
The talks examined reactivating the Trade and Investment Framework Agreement (TIFA) platform, a bilateral mechanism aimed at strengthening structured trade and investment relations between the two countries. This framework has remained largely dormant in recent years.
Both nations agreed to exchange draft cooperation frameworks and indicative timelines for establishing a comprehensive trade and investment arrangement. The outcome signals shared intention to deepen economic ties as Ghana pursues export led growth and increased foreign direct investment (FDI).
The engagement supports Ghana’s economic diplomacy agenda, with the Ministry of Foreign Affairs, Ghana Investment Promotion Centre (GIPC), Ghana Tourism Authority, and Ghana Export Promotion Authority actively promoting the country as a competitive destination for trade and investment.
Minister Ofosu Adjare was accompanied by Ambassador Jane Gasu Aheto, Acting Head of Mission at Ghana’s Washington embassy, Dr. Mary Awusi, Chief Executive Officer (CEO) of the Ghana Free Zones Authority, and Abdul Razak, Deputy CEO of GIPC.
The US delegation included Thomas Bruns, Deputy Assistant Secretary for the Middle East and Africa at the Department of Commerce, and Giancarlo Cavallo, Acting Director for the President’s Advisory Council on Doing Business in Africa.
The discussions occurred against the backdrop of the Trump administration’s “America First” Trade Policy, which imposed a blanket 10 percent tariff on shipments from several countries including Ghana starting in early 2025. By August 2025, tariffs as high as 50 percent had been applied to select imports from some countries.
Ghana exported about 86 million dollars in utilized AGOA exports excluding oil in 2022, making the program’s uncertainty particularly significant for the country’s export oriented businesses. The textile and garment sector has been especially vulnerable, with manufacturers building operations around AGOA preferences over two decades.
Ofosu Adjare described AGOA as a win win arrangement that benefited both countries during earlier discussions with US Department of Commerce officials in June 2025. She emphasized AGOA’s role in attracting US investment, particularly in Ghana’s garment and textile industry.
The Minister noted that Ghana’s economic diplomacy efforts aim to position the country as a preferred destination for American investors while creating sustainable jobs and supporting value addition in domestic industries. The government seeks arrangements that promote competitiveness rather than dependency on preferential treatment alone.
Trade between the US and sub Saharan Africa totaled 47.4 billion dollars in 2023, representing a more than 20 percent increase from 36.7 billion dollars in 2019. However, without AGOA renewal, African countries face compounded tariff impacts with country specific and sectoral rates layered atop World Trade Organization (WTO) Most Favored Nation tariffs.
The meeting concluded on an optimistic note, though concrete outcomes depend on forthcoming exchanges and whether congressional action provides relief on AGOA. For Ghana, the challenge involves securing favorable trade terms while reducing vulnerability to unilateral policy shifts.
Economic analysts note that Ghana’s pivot toward AfCFTA and pursuit of bilateral frameworks reflects broader recognition that reliance on preferential access from single markets leaves African economies exposed when political priorities change in partner countries.
The discussions represent Ghana’s proactive approach to navigating an uncertain trade environment while positioning itself for long term economic partnerships grounded in mutual benefit rather than temporary concessions.
