KEY POINTS
- Ghana is lobbying U.S. officials to retain its AGOA benefits, which contributed $300M+ in exports last year.
- Debates in Congress could tighten AGOA eligibility, with Ghana emphasizing its democratic and economic reforms.
- Losing duty-free access may jeopardize jobs in textiles and agriculture, prompting urgent diplomatic engagement.
Ghana’s Deputy Trade Minister, Herbert Krapa, is leading a high-level delegation in Washington to advocate for the country’s continued inclusion in the U.S. African Growth and Opportunity Act, AGOA, a trade program that grants eligible African nations duty-free access to American markets.
The push comes as the U.S. Congress debates the potential renewal of AGOA, set to expire in 2025, with Ghana seeking assurances that it will retain its beneficiary status.
“AGOA has been a game-changer for Ghana’s exports, particularly in textiles, agriculture, and manufacturing,” Krapa stated during a meeting with U.S. trade officials. “We are engaging stakeholders to ensure our businesses remain competitive in the U.S. market.”
According to Modern Ghana, Ghana’s exports under AGOA reached over $300 million in 2023, with key products including cocoa, cashew nuts, and apparel. Losing duty-free access could disrupt supply chains and hurt local industries reliant on American buyers.
U.S. congress weighs AGOA reforms
The lobbying efforts coincide with broader discussions in Washington about updating AGOA’s eligibility criteria, with some lawmakers pushing for stricter requirements on human rights, labor standards, and democratic governance. Ghana, which has maintained relatively stable democratic credentials, argues that it meets these benchmarks and should remain a priority partner.
“We recognize the evolving trade landscape and are committed to reforms that align with U.S. expectations,” Krapa added. “But abrupt changes could destabilize African economies still recovering from global shocks.”
Industry leaders in Ghana warn that exclusion from AGOA could cost thousands of jobs, particularly in the burgeoning textile sector. The Ghana Export Promotion Authority (GEPA) reports that over 50,000 workers depend directly or indirectly on AGOA-related trade.
Meanwhile, the Biden administration has signaled support for extending AGOA but insists beneficiaries must demonstrate progress on anti-corruption and market liberalization. Assistant U.S. Trade Representative for Africa, Constance Hamilton, noted: “We value Ghana’s partnership but encourage further reforms to attract investment and diversify exports.”
