Reciprocal trade tariffs to address trade imbalances — US Embassy

The Chargé d’Affaires of the United States (US) Embassy in Ghana, Rolf Olson, said the reciprocal tariffs imposed by the US government on various countries were part of a broader mechanism to address trade imbalances between the US and its trading partners. 

In an exclusive interview with the Daily Graphic, Mr Olson explained that President Donald Trump’s administration was of the view that for too long, the US had an imbalanced trade relationship with several trading partners; hence the introduction of the new tariff regime.

“What we mean by that is countries have very high tariffs on US imports, or what we call non-tariff barriers. So, they make it more difficult for the US to export its goods that it is known for and its quality is appreciated globally,” the Chargé d’Affaires said.

Mr Olson indicated that the new tariff policy would help to reset and re-establish some of the existing trade relations because the US government believed that US companies were not getting the opportunities they needed.

Navigating through tariffs

The American diplomat indicated that about 60 countries had more than the minimum 10 per cent base tariffs imposed on Ghana and other countries due to their great trade relations with the US.    

On navigating through the new tariff, the Chargé d’Affaires of the US Embassy in Ghana said there were discussions with Ghanaian authorities to consider easing tariffs on some imported US products.

“What we have encouraged in our discussions with our Ghanaian counterparts is to consider areas where they can either reduce tariffs on US products or make it somewhat easier to import US products.

“I won't go into any further detail than that, but that's what we've tried to ask them to consider because those are the things that the White House is looking at,” he said.

He hinted that there could be new developments on the reciprocal tariffs imposed by the US government.

“I suspect that this is not the final word on this circumstance.

The President has tried to reset relations with many different countries, and of course, has already announced some deals.

“I strongly suspect there will be more going forward.

So, I don't think this issue is concluded in any way. I don't want to get ahead of anything the White House is going to say, but if it's not resolved, then I think there's room for it to go one way or the other,” he said.

Concerns, AGOA

He added that although concerns had been raised on the implications of the tariff, he expressed the belief that Ghana, with its very capable and resilient character, would navigate through.

“Ghanaians have proven to be very resilient and creative people, and they can do wonderful things.

It has been shown that with its actions and its work under the African Growth and Opportunity Act (AGOA), which has been in effect for 25 years now and has granted duty-free access to many different lines of products that Ghana has been able to export and has helped shape the Ghanaian economy.

“I'm not worried about Ghana being able to survive in any set of circumstances. I think Ghana is well-positioned in that regard,” he said.

Mr Olson also emphasised that although AGOA would expire at the end of September this year, its renewal was subject to new legislation in Congress and the President’s assent to it.

The Chargé d’Affaires, however, stated that there had been more discussions on the reciprocal trade tariff, espoused by President Trump.

He also pointed out that a lot more intra-regional trade within Africa in the context of the African Continental Free Trade Area (AfCFTA) could overrule some bilateral interests and make it more complicated than having a preferential trading programme such as the AGOA. 

Debt payment concerns

In recent comments from the Chairman of the US Senate Foreign Relations Committee, Jim Risch, expressing concerns over debt payment owed to American companies by the Ghanaian government, Mr Olson said that although the Senator had the right to express his views, his statement was not made on behalf of the US government.

“Many US companies here are owed money for services already provided to the various parts of the Ghanaian government.

It is, indeed, a concern of ours because, of course, US companies can't thrive and can't provide the excellent service going forward if they're not paid for the services they've already provided,” the US diplomat said.

Mr Olson said the US Embassy in Ghana and government officials in the US had held discussions on debt repayment, where they had been assured by Ghanaian authorities that they would fulfil their debt payment obligations.

“They [Ghanaian authorities] have certainly given an assurance that the debts will be paid, and that’s important.

They said they would keep their commitment on that, and we take them at their word for that,” he said.