Economist and Professor of Finance at the University of Ghana Business School, Godfred Bokpin, has advised Ghanaian exporters to produce more quality goods that can compete in international markets to fully benefit from China's zero-tariff policy for African countries.

Speaking to the media on Sunday, October 19, he noted that although the latest development is encouraging, the government must cease the opportunity to advance Ghana’s economic growth.

“Ordinarily, one could say this is good news. Whatever way you look at it, you can say good news. But whatever advantages or other benefits we talk about now they could be more theoretical, hypothetical. I am saying so because translating the intended objective into actual benefits will depend more on the hard work that has to be done by our exporters. When we talk about our exporters we are talking about the competitive advantage that we have also created to enable our exporters to be able to take advantage of such zero tariffs,” he added.

Earlier this year, the Chinese government announced its intention to offer zero tariffs to some fifty-three African countries that maintain diplomatic ties with the Asia superpower, which forms part of China’s broader push to position itself as Africa’s principal trade and investment partner amid escalating global trade tensions.

In a letter released on June 11 to African foreign ministers, Chinese President Xi Jinping said the zero-tariff policy aims to deepen China-Africa cooperation, promote modernisation across the continent, and support African countries in expanding their exports to China.

Speaking during a bilateral meeting (Global Leaders' Meeting on Women) at the Great Hall of the People in Beijing, October 13, President Mahama lauded China’s confidence in Africa.

“I’m pleased to inform you that we have reached an agreement in principle, and both sides have targeted the end of October to formally sign off on the zero-tariff framework. China’s decision to grant zero-tariff access to Ghanaian and other African products signals strong confidence in the partnership between China and Africa,” he noted.

He highlighted that the initiative plays a major role in boosting export growth. “The policy opens vast new markets for Ghanaian exporters, agro-processors, and manufacturers, creating fresh opportunities to expand trade and boost industrial growth,” he added.

At the same event, Chinese President Xi Jinping reflected on the long-standing relationship between China and Ghana, marking the 65th anniversary of diplomatic ties.

He reaffirmed China’s commitment to supporting Ghana in building a modern economy. He expressed his outfit’s readiness to work with Ghana to deepen cooperation across all sectors and to make greater contributions toward building an all-weather China–Africa community with a shared future in the new era.

Xi emphasized that China and Ghana should jointly implement the outcomes of the Beijing Summit of the Forum on China-Africa Cooperation, explore diversified cooperation models, and expand collaboration in mining, energy, infrastructure, agriculture and fisheries, thereby promoting high-quality development of bilateral cooperation.

In August, the United States (U.S.) President Donald J. Trump’s new executive order, issued on Friday, July 31, imposed a fifteen percent (15%) ad valorem tariff on Ghana’s exports.

This means that Ghanaian goods shipped to the U.S. will be charged a 15% tax based on their price. Thus, a product at $100, would be $115 as a result of the $15 tariff. The U.S. government explains that the new development forms part of the efforts to protect its economy, as the country buys more goods from other countries than it sells to them.

According to the Executive Order, “These modifications shall be effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m.” The policy is expected to reflect on Ghanaian goods entering the U.S. in the coming days, which will affect many countries, including Nigeria, Zimbabwe, Zambia, Uganda, Mozambique, Mauritius, Malawi, Lesotho, and Madagascar.

Also, countries such as South Africa and Libya face a 30 percent tariff, while Tunisia will face a 25 percent steeper duty. Meanwhile, the Ghana Export Promotion Authority (GEPA) and Ghana’s Trade Ministry are yet to react to the new tariff. The new tariff adjustment comes at a time when the Ghanaian government is implementing tax reforms to ensure the elimination of successive charges of taxation that increase the cost of goods and services.

Although the measure is premised on the principle of reciprocity, President Trump insisted in the executive order that the United States had been unfairly disadvantaged by trade barriers erected by other countries. This policy affects numerous Ghanaian exports, notably those under the African Growth and Opportunity Act (AGOA), which previously allowed duty-free access to the U.S. market.

Ghanaian officials have criticized the move, arguing that the U.S. cannot claim the tariffs are to protect domestic industries. Ghana is not facing the issue in isolation; as such, the African Union and the African Continental Free Trade Area (AfCFTA) are coordinating a collective response.

Some African nations, such as Lesotho, could face import duties of up to 50 percent. The African Growth and Opportunity Act (AGOA), which was passed by the U.S. Congress in 2000 to provide duty-free access for African exports to the U.S. market, remains in effect but faces new scrutiny in light of the latest U.S. trade policy shift.

In 2022, two-way trade between AGOA members and the US exceeded $46 billion, with $13.5 billion more in imports than exports. That year, AGOA recipients exported $30 billion worth of goods to the US, of which $10.2 billion were sold under the duty-free AGOA preference.

However, with AGOA’s framework set to expire in September, there are growing concerns that the Trump administration’s stance may hinder any renewal. The U.S. government in May announced a new 10% tariff on exports, but the then U.S. Ambassador to Ghana, Virginia Palmer, insisted that the new global tariff adjustments could benefit Ghana, unlike other countries.