Hon Mohammed Amin Adam
Karaga

Mr Speaker, thank you for allowing me to make a Statement on this all-important subject of the implications of the policies of the New Trump Administration in the United States on Ghana’s economic development.

Mr Speaker, the reinstatement of Trump’s Administration policies, including freezing funds to United States Agency for International Development (USAID), imposing tariffs on major trading partners, mass deportations and withdrawing from the Paris Accord on Climate Change, poses significant challenges for many countries, including Ghana.

USAID has been a crucial partner in Ghana’s development, funding numerous projects in healthcare, education, and infrastructure. Freezing these funds to USAID implies that Ghana would lose US$150 million annually.

With a national budget already very tight and the Government’s plan to scrap some taxes, I am wondering how this funding gap is going to be done. But, this is an indication of the fact that we are already feeling the effects of the policies of the Trump administration. This could lead to reduction in Development Aid exposing essential projects to face cutbacks or cancellations, affecting sectors critical to Ghana's growth.

While tariffs directly imposed on Canada and Mexico may not immediately affect Ghana, secondary effects could arise. The global trade disruptions that arise from tariffs on major economies can lead to shifts in global trade partners and patterns, potentially reducing demand for Ghanaian exports. Countries affected by United States of America (USA) tariffs might seek new markets, increasing competition for Ghanaian products. This action could also lead to changes in trade dynamics which could disrupt supply chains that Ghanaian businesses rely on.

The mass deportation of immigrants from the USA could have several repercussions for Ghana. Remittances from Ghanaians living in the U.S.A contribute significantly to the local economy.

Deportation could reduce this valuable income stream. Also, an influx of returnees might strain social services and job markets, necessitating urgent policy responses. So far, it is reported by the Ministry of Foreign Affairs that the number of Ghanaians affected by the deportation programme is negligible. However, given Ghana's stability, other African citizens deported to their countries that are politically unstable, could escape this instability to Ghana.

Mr Speaker, there is no doubt that the new Trump Administration will bring a shift in policies and priorities, both domestically and internationally as we are already witnessing, which will affect policy choices in developing countries like Ghana. However, every coin has two sides.
Therefore, the effects notwithstanding, Ghana stands poised to capitalise on several opportunities provided by Trump's policies for economic development. By strategically aligning with the administration's policies, Ghana can foster growth, attract investments, and strengthen its economic ties with the USA.

One of the key areas where Ghana can benefit is through enhanced trade and investment relations. The Trump administration's focus on bilateral trade agreements presents an opportunity for Ghana to negotiate favourable terms that boost exports and attract American investments. By emphasising sectors such as agriculture, manufacturing, and technology, Ghana can position itself as a valuable trade partner.

Ghana's agricultural sector has immense potential for growth, and the Trump administration's policies could provide a significant boost. By increasing access to the American market, Ghana can export more cocoa, coffee, and other agricultural products, thereby generating foreign exchange and supporting rural development. Additionally, collaboration on agricultural technology and best practices could enhance productivity and sustainability.

The Trump administration's focus on reviving American manufacturing can be leveraged by Ghana to attract investments in its own manufacturing sector. By promoting joint ventures and partnerships, Ghana can benefit from technology transfer, skills development, and job creation.
Special economic zones and industrial parks can be established to facilitate these collaborations, creating a conducive environment for American businesses to invest in Ghana.

Mr Speaker, due to Ghana's nonaligned status, the benefits of the new USA policies particularly, President Trump's preference for bilateral partnership should not overshadow our quest to harness the potential of multilateralism. We stand at a crucial juncture where we can harness the power of multilateralism to drive our economic agenda while fostering a robust relationship with the USA under the new Trump administration. Multilateralism, with its emphasis on cooperation among multiple countries, can offer Ghana avenues for sustainable development, international partnerships, and economic resilience.

Simultaneously, maintaining a positive relationship with the USA can provide bilateral benefits that further our national interests.
Multilateral engagements, particularly through organisations such as the African Union (AU), the Economic Community of West African States (ECOWAS), and the United Nations (UN), can provide Ghana with platforms for economic collaboration and development. By participating actively in these organizations, Ghana can attract investments, secure developmental aid, and benefit from shared resources and expertise.

Through multilateral frameworks, we can access larger markets and negotiate favourable trade agreements that enhance our economic standing. For instance, the African Continental Free Trade Area (AfCFTA) creates a single continental market that can boost intraAfrican trade and attract foreign investments. Leveraging such multilateral agreements, we can strengthen our trade ties while negotiating bilateral deals with the United States that align with our economic goals.

Mr Speaker, permit me to add that multilateral development banks such as the World Bank and the African Development Bank (AfDB) can continue to provide Ghana with financing for critical infrastructure projects. These projects, ranging from transportation networks to energy facilities, are essential for Ghana's economic growth. By securing funding and technical assistance from these institutions, Ghana can build the infrastructure needed to support its development agenda and attract further investments, including from the USA.

Mr Speaker, the new Trump administration's policies present numerous opportunities for Ghana to enhance its economic development. By strategically aligning with these policies while embracing multilateralism, Ghana can attract investments, boost trade, develop infrastructure, improve education, and promote tourism. It is crucial for Ghana to actively engage with the USA, leverage its strengths, and build partnerships that drive sustainable economic growth and prosperity.

By maintaining a balanced approach that combines multilateral engagements with strong bilateral relations, Ghana can navigate the complexities of international diplomacy and achieve its development objectives. This strategy will enable Ghana to benefit from the collective strength of multilateral cooperation while reaping the rewards of a positive and productive relationship with the United States.

Mr Speaker, let me conclude by drawing attention to key strategic interventions Ghana needs to adopt to position itself to withstand the effects of President Trump's policies.

To mitigate the impact of potential trade disruptions, Ghana should expand market access by seeking new trade agreements and partnerships with other regions, such as the European Union, Asia, Middle East and Africa; and also promote export sectors by investing in and promoting sectors with high export potential, such as agriculture, textiles, and technology.

To reduce dependence on international aid and imports and to fortify Ghana's economic resilience, the Government must support local industries to encourage their growth, fostering self-reliance and job creation. The government should also continue to invest in critical infrastructure to support efficient production and distribution of goods.

Ghana should explore diverse funding avenues to replace potential shortfalls from USAID by promoting Foreign Direct Investment (FDI) through the creation of a favourable investment climate, focusing on sectors with high growth potential. The Government should engage with international financial institutions, fostering public-private partnerships, and tapping into diaspora bonds, which can provide the necessary capital to sustain growth initiatives in healthcare, education, and infrastructure.

Building strong diplomatic relationships can help counterbalance the adverse effects of USA policies. For example, Ghana's continuous active engagement in the African Union, the United Nations, and other multilateral organizations can elevate Ghana's global standing. There is also the need to continue to forge alliances with countries that share similar development goals to facilitate collaborative efforts in addressing common challenges like climate change, debt distress and poverty alleviation.

To address security concerns exacerbated by USA policies, Ghana should enhance Regional Cooperation by collaborating with neighbouring countries and regional bodies such as ECOWAS to improve intelligence sharing and border security.
Government must also invest in Human Security by focusing on education, healthcare, and social services to create a stable society that is less susceptible to extremist influences.