Trade Ministry to support local industries under AGOA
The Ministry of Trade and Industry (MoTI) is to give leverage to local companies exporting to the United States (US) to enable them to double their exports.
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The initiative forms part of a four- step strategy rolled out by the ministry under a review of the African Growth and Opportunities Act (AGOA) to promote export for Ghanaian companies.
The Director of Multilateral, Regional and Bilateral Trade (MRBT) at the MoTI, Mr Anthony Nyame-Baafi, made this known at a one-day sensitisation workshop organised by the Ghana National Chamber of Commerce (GNCC) for exporters-ready companies in Accra yesterday.
AGOA
AGOA is the US government’s trade initiative with sub-Saharan African countries which allows beneficiary countries to enjoy duty-free status for exports of over 6,400 products to the US.
This is to encourage export-led growth and economic development in sub-Saharan Africa and improve US economic relations with the region.
After completion of its initial 15- year period of validity, the AGOA bill was extended until 2025.
The 10-year renewal provides an opportunity for Ghanaian businesses to increase their exports to the US market.
In the 2015 country review, Ghana passed the AGOA country eligibility determination process, following the government’s pursuit of policies and practices that satisfied AGOA eligibility requirement.
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Strategies
Mr Nyame-Baafi said Ghanaian exporters had not taken opportunity of the AGOA initiative for which reason on the strategies to sensitise them to short, medium and long term.
As part of the strategy, the MoTI would also identify potential areas the country had comparative advantage in and encourage foreign direct investors to invest in those areas in order to increase export to the US market.
“We also have a strategy in place to build the capacity of Ghanaian companies who export local products to the European market so that they can double their export,” he added.
Mr Nyame-Baafi said the MoTI had plans in place, as part of the AGOA review strategies, to address the challenges that local companies faced in terms of concessional funding and power fluctuation.
He said that was to ensure that local companies and foreign environment to produce at a minimal cost.
Embrace AGOA
In a speech read on his behalf, the President of the GNCC, Nana Appiagyei Dankawoso I, said there was a huge market potential for Ghanaian exporters in the US market but wondered why most of them still looked elsewhere.
He, therefore, stressed the need for them, particularly small-scale and medium enterprises (SMEs) to tap the full benefits provided under AGOA.
Nana Dankawoso I also urged Ghanaian companies to adhere to best practices to remain competitive and to strengthen regional and global trade assistance.