Xinhua
24 Apr 2025, 11:45 GMT+10
This photo taken on Aug. 4, 2022 shows the White House and a stop sign in Washington, D.C., the United States. (Xinhua/Liu Jie)"This is not about correcting trade imbalances, but about weaponizing economic policy to serve geopolitical narratives."ADDIS ABABA, April 24 (Xinhua) -- Newly imposed U.S. tariffs are inflicting "disproportionate harm" on African economies that have worked hard to integrate into global value chains under the framework of a rules-based international trading system, an economics scholar has said.In a recent interview with Xinhua, Carlos Lopes, former executive secretary of the United Nations Economic Commission for Africa (UNECA) and currently an honorary professor at the Nelson Mandela School of Public Governance at the University of Cape Town, noted that the U.S. administration's decision to impose what it terms "reciprocal tariffs" signifies a broader shift in U.S. trade policy from multilateral engagement to transactionalism and economic nationalism."The notion of 'reciprocity' invoked by Washington is misleading, both analytically and morally. It assumes symmetry between economies with vastly different capacities, histories and roles in the global economy," he said."The United States is conflating trade balance in goods with fairness, while ignoring the structural advantages it commands in services, capital, technology and data flows, realms in which Africa remains marginalized," Lopes added."This is not about correcting trade imbalances, but about weaponizing economic policy to serve geopolitical narratives," he said.He pointed out that countries such as Madagascar, Lesotho and Kenya "find themselves penalized," as they have developed export-oriented sectors such as apparel, textiles, light manufacturing and agro-processing, all of which are highly vulnerable to tariff shocks."Countries that are just entering the lower rungs of industrialization ... are being blindsided by a measure that appears indiscriminate and indifferent to development trajectories," Lopes said.Lopes added that beyond economic damage, the tariffs erode trust.He stressed that African nations adhering to global trade norms now see those efforts undermined by the unilateral actions of the United States, warning that the tariffs are fueling the fragmentation of the global trading system, pushing countries to pursue regional pacts and alternative alliances.He noted that Africa, which has been diversifying its partnerships, will continue to shift its focus toward Asia, particularly China and India, and the Gulf and other regions, "where engagements are often more pragmatic, less moralizing, and increasingly strategic."The scholar said that in light of these developments, many African policymakers now perceive a gap between the rhetoric of partnership and development and policy consistency."What we are witnessing is the normalization of unpredictability, a form of economic coercion disguised as fairness," he said.To respond, African policymakers must reassess their trade strategies, reducing dependence on single markets or trading frameworks that can be reversed unilaterally, Lopes added.Noting that the "old strategy" of seeking preferential access to the markets of rich countries is becoming increasingly fragile, he urged African nations to intensify structural transformation and regional integration.Lopes emphasized that the African Continental Free Trade Area agreement should become the cornerstone of Africa's development model and a platform for industrial policy, investment coordination and technological upgrading.He required "a mindset shift," one that encourages African policymakers to stop viewing integration into global value chains as the ultimate goal."The goal should focus on enhancing domestic value addition, investing in regional infrastructure and expanding economies of scale to strengthen the negotiating position of African countries on the global stage," he added.
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