While the 90-day initial break on so-called “reciprocal” rates offered a certain relief compared to the expected increases of up to 50%, the United States has rather imposed a basic tariff of 10%, added in addition to existing tasks. This means that many countries-especially development economies-have faced higher costs exporting goods to the United States.
The price suspension, which originally expires, has now been extended until August 1, extending uncertainty, told Pamela Coke-Hamilton, Executive Director of the International Shopping Center (ITC), during a regular press briefing at the United Nations Bureau in Geneva (UNOG).
She warned this decision adding to a “double shock” of assembly of the increase in commercial restrictions and deep cuts with development aid, which strike the most harsh developing countries.
ITC is a joint United Nations United Nations United Nations (WTO) trade agency supporting businesses in developing countries.
Real consequences
“” Economic uncertainty has real consequences on countries and sectors“Said Ms. Coke-Hamilton, citing the volatility of gold and precious metals flow like a case.
After the United States has exempted these products from new prices, commercial volumes have increased-with imports of gold in Switzerland up 800% in annual shift in May, based on American import data.
Coke-Hamilton said that since the start of the year, ITC has followed more than 150 new restrictive trade measures worldwide.
A superimposed on the disturbances of the existing global trade since the start of the war in Ukraine, the resulting tension had a disproportionate impact in the least developed countries (PMA), which are often confronted with the steepest prices and the narrowest budgetary space to respond.
A “perfect storm” is preparing
Lesotho, for example, faces a 50% price on clothing exports to the United States, threatening its largest industry and tens of thousands of jobs. The Viet Nam, although having negotiated a lower rate, faces a 20% levy-double the current reference rate-potentially reshaping its $ 937 million to automatic trade and car linked with the United States.
Coke-Hamilton has also reported concerns about development funding reductions, noting that G7 countries should reduce assistance spending by 28% next year-the greatest drop in five decades.
“” A perfect storm is preparing – just as trade becomes more unpredictable, external support thanks to help also reduces“She said.
Navigate the challenges
To answer, it urged developing countries to focus on three strategic responses: strengthen regional value chains, invest in added value to reduce dependence on basic products and prioritize small businesses.
“” Stability can come from the ground“She said.
“” Although uncertainties are in advance both in the landscapes of trade and aid, developing countries can always find ways not only to deal with these challenges, but to play an active role in the implementation of greater stability.“”
Originally published at Almouwatin.com
