US reverses 15% tariff on cocoa products, others — Ablakwa
The United States government has reversed the 15 per cent reciprocal tariff imposed on cocoa and other agricultural products from Ghana, the Minister of Foreign Affairs, Samuel Okudzeto Ablakwa, has revealed.
He said the reversal meant all cocoa and semi-processed cocoa, some vegetables, maize and other produce could now be imported into the US without paying any tariff.
Speaking during an interview on the sidelines of the African Union-European Union (AU-EU) Summit in Luanda, Angola yesterday, Mr Ablakwa described the new executive order signed by the US President, Donald Trump, as a positive development that would save the country millions of dollars.
"President Trump has decided that Ghanaian cocoa and Ghanaian qualifying agricultural products, including plantains, guava, maize, various peppers, tomatoes, avocados and ginger, among other products, will no longer be required to be exported with the 15 per cent tariff.
The 15 per cent tariff has been reversed. It is now zero per cent on Ghanaian cocoa, and it is not only on the cocoa beans, but also on semi-processed cocoa.
"This development is really positive. It is welcome news for our farmers and agricultural exporters.
What this means is that in the cocoa sector alone, if you look at current numbers, we will be raising an additional $60 million," he explained.
Background
The US President earlier this year signed an executive order, which imposed reciprocal tariffs on several countries across the world, a policy that had Ghana slapped with a 10 per cent tariff on imported products to the US market.
The US government later revised the tariff to 15 per cent in July this year, after a 90-day window it gave Ghana to demonstrate progress in its trade relations.
The Chargé d'Affaires at the US Embassy, Rolf Olson, told the Daily Graphic, in an interview in June this year, that the US was hoping that Ghana would also reconsider some of its tariff imposition on American products and other businesses to better their renegotiation on the tariff with the US Government.
The new development has been a result of months of renegotiation on the tariff between the two countries.
Implication
He indicated that conservative estimates made by the government with respect to the new development showed that the reversal of the tariff on the Ghanaian cash crops would generate an excess of $150 million in revenue for the country.
The Foreign Affairs Minister affirmed that the development was timely, especially for the cocoa season, as cocoa farmers experienced a glut.
AGOA negotiation
The minister urged Ghanaians to remain hopeful, assuring them that the ministry would also engage the US government on the African Growth and Opportunity Act (AGOA), which offered countries such as Ghana preferential access to the US market.
"We are still negotiating with the Americans on AGOA, so that our textile industry can also have this 15 per cent tariff removed for our garment producers to export to the American market tariff-free, as has been the regime until President Trump's executive order in April this year," he said.
The minister encouraged medium- and small-scale exporters, as well as entrepreneurs, to take advantage of the opportunity to expand their businesses and secure good returns on their investments.
