Xinhua
12 Apr 2025, 16:15 GMT+10
Gift Essinalo, a researcher at Mozambique's Center for Public Integrity and former consultant economist to the World Bank, receives an interview with Xinhua in Maputo, capital city of Mozambique, April 10, 2025. (Xinhua/Liu Jie)As U.S. protectionist trade policies intensify under the Trump administration, African nations may be forced to reassess their economic strategies and pivot toward more welcoming markets, a leading Mozambican economist has said.MAPUTO, April 12 (Xinhua) -- As U.S. protectionist trade policies intensify under the Trump administration, African nations may be forced to reassess their economic strategies and pivot toward more welcoming markets, a leading Mozambican economist has said.In a recent interview with Xinhua, Gift Essinalo, a researcher at Mozambique's Center for Public Integrity and former consultant economist to the World Bank, said the long-term effects of Washington's tariff-driven approach could fundamentally alter global trade patterns."While the immediate impact on Mozambique's exports to the United States is limited due to long-term contracts, especially in sectors like graphite and precious metals, the broader picture is changing," Essinalo said. "As those contracts expire and production costs rise, Mozambique's competitiveness in the U.S. market could decline."According to his analysis, Trump's tariff imposition is not just about economic leverage but also a political maneuver aimed at applying pressure on major trading partners."It is about creating uncertainty to force renegotiations and rewrite the rules of international trade," he said. "Investors are reluctant to commit capital in an environment where trade rules could change overnight."Essinalo said that Trump's actions are driving the world toward a new era of trade protectionism."We are witnessing the emergence of a more closed global trade environment," he said. "This trend threatens to shrink export opportunities for developing countries and stall global economic recovery."A press conference is held during the Africa-China-CIMMYT Science Forum in Nairobi, Kenya, on Aug. 13, 2024.(Xinhua/Li Yahui)While the United States adopts a more protectionist trade stance, restricting the entry of products from other countries, China has moved in the opposite direction, expanding its partnerships in Africa and offering zero-tariff access on a growing list of goods, Essinalo noted.From his perspective, that makes China an increasingly attractive partner for countries like Mozambique.China's implementation of zero-tariff policies on a range of African goods offers a realistic alternative, providing a compelling case for African exporters seeking stable and favorable trade conditions, Essinalo said.He called on African countries to accelerate efforts to diversify export markets and move up the value chain by processing raw materials locally.Cooperation with countries like China could help advance that transformation, especially by introducing technology and capital to build domestic industries, according to Essinalo."With the United States moving toward reciprocal tariffs, the value of the African Growth and Opportunity Act is fading. Africa is already seeking alternatives," he said.
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