Former Trade and Industry Minister, Dr. Ekow Spio-Garbrah, has raised concerns about the potential indirect effects of the ongoing global tariff war on Ghana’s economy. Despite Ghana not being directly involved in the trade disputes, Dr. Spio-Garbrah warns that the country could feel the impact through disrupted trade and investment flows.
The global tariff war, sparked by the US government’s announcement of a 10% universal tariff on imports, has already affected several major economies, including China, Vietnam, and the European Union. Ghana, in particular, faces a 10% tariff on its exports to the US market, a significant blow to the country’s export sector .
Key Affected Sectors:
- Cocoa Derivatives: Ghana’s processed cocoa exports to the US may decline due to the imposed tariffs.
- Textiles and Apparel: The textile industry, a significant contributor to Ghana’s economy, may struggle to remain competitive in the US market.
- Agricultural Products: Ghana’s agricultural exports, such as fruits and vegetables, may also be impacted by the tariffs.
To mitigate these effects, Dr. Spio-Garbrah urges policymakers to adopt measures that will cushion the economy against external shocks. This includes exploring alternative trade arrangements, diversifying export markets, and strengthening the country’s economic resilience.
The Ghanaian government is already taking steps to address the impact of the tariffs. A high-level delegation, comprising the Ministers of Trade, Finance, and Foreign Affairs, is set to meet with the US Ambassador to Ghana to discuss the implications of the tariffs and advocate for continued preferential access under the African Growth and Opportunity Act (AGOA).
Ruth Abla ADJORLOLO
