Trump's Tariffs Won't Hit Africa Hard, Says WTO DG Okonjo-Iweala

By Mabeni Aboh

World Trade Organisation (WTO) Director-General Dr Ngozi Okonjo-Iweala has downplayed the impact of US tariffs on Africa, stating that only a small percentage of the continent's trade is with the US. According to Okonjo-Iweala, just 6.5% of Africa's exports go to the US, while 4.4% of its imports come from the country.

The current debate on tariffs follows the imposition of trade restrictions by the US under President Donald Trump's administration, which has led to concerns about the potential impact on global trade. Trump's tariffs on imported goods have been a contentious issue, with critics arguing that they could harm the global economy and spark trade wars. The WTO DG's comments come amid ongoing discussions about the effects of these tariffs on developing countries, particularly in Africa.

The WTO DG emphasized that Africa's limited trade with the US is not ideal for economic growth and urged the continent to focus on utilizing its own resources and strengthening internal trade. She cited Lesotho's textile industry as an example, noting that despite exporting $200 million worth of textiles to the US, the country faces challenges due to the shrinking US market. Okonjo-Iweala suggested that Lesotho could instead focus on selling textiles within African markets, pointing out that the continent spends $7 billion annually on importing textiles.

She also called on the US to consider the effects of tariffs on least-developed countries and reassess reciprocal tariffs in poorer nations. The WTO DG emphasized the need for Africa to boost intra-African trade, which remains underdeveloped at 16-20%. She stressed that the continent requires more investment to reach its full potential, particularly as aid declines.
(NAN)