Today's Edition
GENEVA (WAM)
The United Nations Trade and Development (UNCTAD) amped up its calls that the poorest and most vulnerable economies be exempt from “reciprocal tariffs.”
In a new report released on Monday, UNCTAD said that weaker and smaller economies, who already grappling with low growth and mounting uncertainty and whose activities have a negligible effect on trade deficits, should be exempt from new tariff hikes.
The UN trade body stressed that over the years, a rules-based global trading system has boosted international commerce and contributed to a gradual, steady decline in tariffs — a tax that countries levy on imported goods. In 2023, about two-thirds of world trade occurred without tariffs.
In contrast, a sweeping spate of steeper tariffs recently introduced by major economies is raising concerns over escalating trade tensions and their impact on developing countries.
Titled “Escalating tariffs: The impact on small and vulnerable economies,” the report finds that in many cases, reciprocal tariffs risk devastating developing and least developed economies, without significantly reducing US trade deficits or increasing revenue collection.
Such tariffs, UNCTAD stated, currently on pause for 90 days, were calculated at rates to balance bilateral merchandise trade deficits between the United States and 57 of its trading partners, which range from 11 percent for Cameroon to 50 percent for Lesotho.
The 57 trading partners concerned – 11 of them least developed countries – contribute minimally to US trade deficits, UN Trade and Development notes.
A total of 28 out of these 57 trading partners each account for less than 0.1 percent of the deficits yet could still be subject to reciprocal tariffs.
