Importers and Exporters demand government action as AGOA expires today

The Importers & Exporters Association of Ghana (IEAG) has issued a public demand for immediate action from the government as the African Growth and Opportunity Act (AGOA) officially expires at midnight today (September 30, 2025).

The association expressed “grave concerns” over the government’s prolonged silence, warning that the failure to communicate a clear trade posture is threatening the stability and competitiveness of Ghanaian businesses in the lucrative U.S. market.

Samson Asaki Awingobit, the Executive Secretary of the Importers & Exporters Association of Ghana, directly addressed the government’s communication gap in the press statement.

“The Government of Ghana has remained silent, with no formal declaration 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.”

The IEAG closed with a firm call to the nation’s leadership.

“The private sector looks to the Government to lead, to clarify, and to protect the interests of Ghanaian producers, exporters, and citizens.”

AGOA, a landmark U.S. trade preference program enacted in 2000, granted eligible sub-Saharan African countries, including Ghana, duty-free access for thousands of products. The most recent extension expired today, September 30, 2025.

The Economic Stakes for Ghana

The IEAG highlighted the profound economic consequences of the trade deal’s lapse.

According to the USTR’s 2024 AGOA report, Ghana was a major beneficiary, exporting approximately US$340 million worth of goods under the preferential status. Key affected sectors include cocoa derivatives, textiles, gold jewellery, cashew, and shea butter.

The association pointed to a serious “red flag” in recent trade data: Ghana’s AGOA-related exports to the U.S. showed a steep 45% decline in the first months of 2025 compared to the previous year’s year-to-date figures, signaling major vulnerability even before the official expiry.

“This expiration is not merely a legislative detail. It carries profound economic consequences,” stated Mr Awingobit in the IEAG release. “Ghana cannot afford indecision or delay.”

Looming Tariffs and Loss of Competitiveness

With the expiration, the preferential margin that made Ghanaian goods competitive in the U.S. market is instantly eliminated.

The IEAG warns that local economies will now be subjected to compound tariffs, including sectoral, country-specific, and WTO Most Favoured Nation (MFN) rates.

The direct result is that Ghanaian exporters now face “looming export disruptions” and a significant “loss of competitiveness,” as many firms risk being “priced out of the U.S. market overnight.”

Threats to Investment and AfCFTA Synergy

The IEAG outlined three critical areas of concern:

1. Export Disruptions: The absence of clarity creates immediate uncertainty for exporters regarding tariffs, market access, and supply sourcing.
2. Undermining Investment: The uncertainty threatens to delay or scale back investment in vulnerable sectors like textiles, agro-processing, and non-traditional agriculture, which rely heavily on stable export markets.
3. Risk to AfCFTA: While the African Continental Free Trade Area (AfCFTA) is central to Ghana’s future, the IEAG stressed that it “cannot fully substitute” for the crucial preferential access AGOA provided in global markets.

Across sub-Saharan Africa, AGOA has been a major trade driver; in 2022 alone, beneficiary countries exported approximately US$10.2 billion worth of goods under the duty-free preferences out of a total of US$30 billion exported to the U.S.

Demands for Immediate Action

The Importers and Exporters Association of Ghana made five non-negotiable demands of the government to protect the nation’s trade interests:

1. Immediate Public Statement: Clarify the official posture: whether Ghana will pursue renewal, analogous trade arrangements, or adopt compensatory measures.
2. National Contingency Plan: If AGOA is not renewed, the State must publish and implement a rescue or transition plan for affected exporters, including tariff mitigation or export incentives.
3. Vigorous Diplomacy: Engage immediately in U.S. and multilateral diplomacy to push for the immediate extension or replacement of AGOA principles.
4. AfCFTA Strategy Protection: Ensure the domestic AfCFTA strategy is reinforced to prevent it from being undermined by global trade disruptions.
5. Transparency and Consultation: Provide ongoing, transparent data on exports and duty burdens, and invite private-sector consultation in all decision-making.

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