Africa countries have been urged to respond collectively under the umbrella of African Union (AU) to the recent 10 per cent tariff increment imposed by the United States of America (USA) on goods entering that country.
Chief Executive of Ghana International Trade and Finance Conference (GITFiC), Selasi Koffi Ackom, who made the call, said “Given that over 80 per cent of countries in Africa may lack the capacity for effective individual retaliation, a united response is recommended to maximise the impact”.
He noted that considering the continent’s diverse economies and the potential for coordinated action through organisations like the African Union, “We believe this decision could greatly enhance Africa’s role in global trade.”
Mr Ackom, in a statement, he signed, and copied The Ghanaian Times, in Accra, said the evolving global trade environment presented both challenges and opportunities for countries, particularly those in Africa, to strengthen their economic futures.
“It is crucial for both highly affected and less affected countries to promptly engage with the World Trade Organisation (WTO) and invoke WTO Article XXIII, which addressed dispute resolution and consultation, thereby facilitating constructive dialogue and urgent redress,” he advised.
Mr Ackom said all countries affected by the US tariff retained the right to seek legal recourse against the US for reversal, economic damages and compensation, emphasising the importance of fairness in international trade.
The Chief Executive of GITFiC said “for smaller nations, the higher tariffs aim to facilitate meaningful economic adjustments and encourage trade reforms. In contrast, for established economies like the UK, Brazil, Singapore and Chile, the minimal tariffs are designed to sustain trade flows and prevent retaliatory actions that could lead to broader trade tensions,” he said.
According to him, the European Union (EU) was taking proactive steps in response to the reciprocal tariffs imposed by the US.
Mr Ackom said EU was finalising its first package of counter-measures against steel tariffs and preparing additional measures to safeguard its interests should negotiations fail.
He noted that the increasing global protectionism and shifting geopolitical climate, and the rise in tariffs were reshaping international economic relationships.
“This moment presents an opportunity for nations to address their economic vulnerabilities and contribute positively to global trade governance. The effectiveness of these measures in balancing trade deficits or triggering further responses remains to be seen, but their influence on the global economic landscape is already significant,” he said.
Mr Ackom averred that it was essential for the US to understand the interconnected nature of global trade and its impact on economic stability and transformation.
“By recognising the collaborative efforts required in addressing these issues, the GITFiC can collaborate with all affected state parties to work toward maintaining the momentum of economic progress and stability through our Global Debt Initiative, thereby avoiding setbacks reminiscent of the challenges faced during the COVID-19 pandemic,” he stated.
BY KINGSELY ASARE
