African commerce ministers are set to carry pressing discussions subsequent week following the latest govt order signed by US President Donald Trump, which introduces new import tariffs for nations worldwide.
Underneath the brand new directive, some African nations, equivalent to Lesotho, may face import tariffs of as much as 50% when the measure takes impact on April 9.
These sweeping measures additionally impression Ghana, which can face a 10% baseline import tax.
Though the precept of reciprocity underpins this newest US commerce coverage, Trump asserted within the govt order that the US had been adversely affected by commerce limitations imposed by different nations on American items.
In mild of those developments and the potential impression on African nations, Wamkele Keabetswe Mene, Secretary-Common of the African Continental Free Commerce Space (AfCFTA), introduced in Accra that African commerce ministers will meet on April 14 to debate how the continent ought to reply to the state of affairs.
He emphasised that this improvement ought to spur Africa to speed up efforts in making a commercially viable commerce market throughout the continent.
The African Progress and Alternative Act (AGOA), which was accepted by the US Congress in 2000, has lengthy been a essential lifeline for a lot of African exports.
In 2022, two-way commerce between AGOA members and the US exceeded $46 billion, with $13.5 billion extra in imports than exports.
That yr, AGOA recipients exported $30 billion price of products to the US, of which $10.2 billion had been offered below the duty-free AGOA choice.
Nevertheless, with AGOA’s framework set to run out in September, there are rising issues that the Trump administration’s stance could hinder any renewal.
Regardless of this, Mene believes there isn’t a cause for Africa to be disheartened by the US’s 10% tariff on all imports, noting that Africa’s export profile below AGOA is closely centered on minerals, petroleum, automobiles, and cashew nuts.
He said, “Our continent is extra than simply about cashew nuts or processed commodities.”
Mene additionally views the present state of affairs as a possibility for Africa to consolidate its efforts and construct a self-sufficient market, able to standing by itself financial toes whereas remaining engaged with the worldwide economic system and provide chains.
In the meantime, the AfCFTA Secretariat has signed a Memorandum of Understanding (MoU) with the Nationwide Bar Affiliation of the USA.
This settlement goals to deepen cooperation with the African diaspora and help authorized and financial partnerships below the AfCFTA.
Given President Trump’s “America First” rhetoric, questions have arisen about whether or not this MoU might be mutually useful for Africa.
For Mene, nonetheless, the AfCFTA will proceed to pursue partnerships based mostly on mutual respect and profit. “We won’t condone or help ‘America First’ on the expense of everybody else,” he mentioned.
“We are going to proceed to pursue what’s in Africa’s finest curiosity, not final curiosity,” he emphasised.
No matter the way forward for AGOA when it expires in September, Mene burdened that Africa will assert its proper to make sure that any outcomes serve the continent’s pursuits.
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