AU Commissioner of Trade and Industry, Albert M. Muchanga commented on the emerging trade war during the 6th Meeting African Union Ministers of Trade (AMOT).
Muchanga said there are emerging risks in the international trading environment because of the looming trade war.
“Fast tracking the coming into force of the legal instruments establishing the African Continental Free Trade Area and its resultant operation can mitigate the adverse impacts of he trade war if it occurs,” Muchanga said.
“Africa is innocent in this looming trade war but we can still be its victims. Let us all remember that innocent victims are part of the sad history of humankind.”
The trade war is emerging as the United States of America (US) increases importation tariffs as the world’s economic power tries to reduce trade deficits on imported goods.
US President Donald Trump increased tax by 25% on steel and 10% on aluminium from the European Union, Mexico and Canada.
“Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world. We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!” said Trump on Twitter.
Trump who also states that America already lost the trade war, wants to increase taxes on products from China on steel and aluminium as the US President.
Trade between US and Africa is already having challenges as the Northern country suspended duty-free access to Rwandan textile imports under African Growth and Opportunity Act (AGOA) after three Esst African nations which include Rwanda, Tanzania and Uganda dcided to ban the importation of used clothes and shoes.
