The President of the Association of Ghana Industries (AGI), Dr. Humphrey Ayim-Darke, has issued a strong warning about the long-term implications of a new U.S. tariff that places Ghana at a disadvantage compared to Côte d’Ivoire.
Speaking in an interview, Dr. Ayim-Darke described the U.S. decision to impose a 10% duty on Ghanaian exports, including cocoa, as a move that could harm Ghana’s trade competitiveness, especially with Côte d’Ivoire facing a comparatively lower rate of 6%.
“We are concerned about the disparity between the tariffs on Ghana and Ivory Coast. We’re working together to harmonise cocoa exports and ensure fair returns for our farmers. A 4% difference may seem small, but the impact on trade could be significant,” he said.
Dr. Ayim-Darke cautioned against viewing the issue in isolation or making short-term policy decisions that ignore broader regional dynamics.
“When we say ‘10% is good for us,’ it may feel right today. But tomorrow, it could turn against us,” he warned.
He called the 90-day grace period before the tariff takes effect “a window of opportunity” for Ghana to coordinate with Côte d’Ivoire and other partners to craft a unified response.
The AGI President emphasized the need for a collective regional strategy to maintain West Africa’s competitiveness in global cocoa markets.
He also outlined the broader economic risks, pointing to the knock-on effects on fiscal stability, exchange rates, lending costs, and even remittances.
“Our fiscal space is already narrow. Over 50% of government revenue depends on trade. Any disruption to cocoa exports — which have already declined due to illegal mining and other factors — puts pressure on the national budget.”
Dr. Ayim-Darke stressed that poor handling of this development could leave the Finance Ministry struggling to meet revenue targets and balance the budget.
The AGI President added that monetary policy could tighten in response to trade revenue losses, raising interest rates and further weakening the cedi.