How Do You Plan to Respond to US Tariffs?; Minority Asks Govt

The Minority in Parliament has questioned the government’s response mechanism to the sweeping tariffs slapped on some sub-Saharan countries in the United States’ latest strike in what many describe as a Trade War.

The recent 10% reciprocal tariff which affects goods exported from Ghana to the US was announced by President Donald Trump on Wednesday.

In a statement, the Minority expressed concern about the effect of the development on the economy as well as Ghanaian industries.

It has thus sought clarity on the government’s plan to mitigate the impact on business.

“The government should provide a clear policy direction on exports and how it plans to respond to the US tariffs.”

“Unfortunately, we have not seen a clear policy direction on exports by the NDC government. How they respond to this sweeping tariff by the US is very critical to our exporters, especially those in the apparel industry that employs over 5000 young people.”

Meanwhile, it made recommendations including:

Diversification of Export Markets:
* Prioritize the implementation of the African Continental Free Trade Area (AfCFTA) to diversify export markets and reduce reliance on the US.

* Expand exports of manufactured products to other African countries.

* Government should prepare to take advantage of trade diversion based on retaliatory measures that would be implemented by major trading partners

Government Support for Exporters:
* Develop specialized programs and policies to support exporters to be affected by the tariffs.

* Provide financial assistance, training, and market intelligence to help exporters adapt to the new trade environment.

• Advocate for the extension or replacement of AGOA to maintain preferential access to the US market. Product Diversification and Value Addition:

* Encourage the diversification of Ghana’s export base to reduce reliance on a few key commodities.

* Promote value in addition to raw materials to increase export earnings, competitiveness and improved local consumption

Negotiation and Diplomacy:
* Seek clarity on how these measures would be implemented and how it affects extension of AGOA.

* Engage in diplomatic efforts with the US government to negotiate a reduction or elimination of the tariffs.

* Highlight the potential negative impact of the tariffs on Ghana’s economy and its efforts to promote sustainable development.

Enhance Competitiveness:
* Improve the efficiency and productivity of Ghanaian industries to reduce production costs and enhance competitiveness.

* Invest in infrastructure development to reduce transportation costs and improve access to markets.