AMN
As governments and global markets struggle to deal with the deep concerns and disruptions caused by volatility over trade tariffs, Rebeca Grynspan, the head of the UN trade and development agency (UNCTAD), told UN News on Thursday that the poorest countries – whose activities have a negligible effect on trade deficits – should be exempt.
Ms. Grynspan was speaking in the wake of growing UN concern at the effect on-going uncertainty could have on the most vulnerable developing economies.
On Tuesday, the UN Secretary-General, António Guterres, stated that “trade wars are extremely negative,” and warned that the impact of tariffs could be “devastating.”
Tariffs are a tax on imports coming into a country which are usually charged to the exporter as a percentage of value – an extra cost which is normally passed on to the consumer.
In an interview with the Financial Times published on Thursday morning, the UNCTAD chief appealed for the US to reconsider its strategy, noting that the 44 Least Developed Countries contribute less than two per cent of the US’s trade deficit, and that higher tariffs would only make their existing debt crisis much worse.
Speaking to UN News, Ms. Grynspan laid out the ways that UNCTAD is supporting developing nations, and advocated for closer regional trade ties, which can strengthen their hand in international trade negotiations.