The recent tariff increases taken by the U.S. government is a "wrong approach" that presents significant challenges to global economic development and industrial growth, the United Nations Industrial Development Organization (UNIDO) said on Friday.
In an article published on its official website on Friday, UNIDO said the imposition of tariffs, in a period of stagnant international trade, particularly hurts developing and the least developed countries since tariffs undermine their potential to fully participate in global trade and hamper their efforts to diversify and modernize their industrial sectors.
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UN agency sees US tariff increases as "wrong approach"
UN agency sees US tariff increases as "wrong approach"
UN agency sees US tariff increases as "wrong approach"
UN agency sees US tariff increases as "wrong approach"
UN agency sees US tariff increases as "wrong approach"
UN agency sees US tariff increases as "wrong approach"
By driving up the cost of industrial production, these tariffs undermine economic efficiency, diminish the benefits of trade, and weaken competitiveness, ultimately putting jobs at risk worldwide, thereby affecting the most vulnerable countries the hardest, it pointed out.
Noting that as 450 million people work in global supply chains, UNIDO said a rise in protectionism in advanced countries will slow down industrialization efforts and impede poverty reduction by limiting job creation and economic opportunities.
UNIDO warned that the negative effects of increasing tariffs will affect not only already vulnerable countries, but also the very countries implementing tariffs, exacerbating geopolitical tensions and uncertainty.
The UN agency asserted that these measures take the wrong approach, particularly as their calculation and implementation are not grounded in evidence to achieve the intended outcome.
Gerd Müller, director general of UNIDO said that rather than erecting barriers to industrial trade, a fairer and sustainable global economy should be the goal.
The U.S. withdrawal from development and economic cooperation and shared responsibility has set a dangerous chain in motion, with other industrialized countries reducing their commitments, Müller said.
Instead of cutting development budgets and now aggravating the situation by turning to economic protectionism and raising tariffs, the United States and all industrialized countries must work together with developing countries to create win-win situations and build a fairer and more sustainable global economy that ensures long-term prosperity for all, Müller emphasized.
Protectionism is not the answer to solving today's challenges, UNIDO said in the article reiterated, calling for the strengthening of global partnerships towards a more just international trade system, where all countries, especially developing and the least-developed countries, get to benefit from the global economy.
UN agency sees US tariff increases as "wrong approach"
UN agency sees US tariff increases as "wrong approach"
UN agency sees US tariff increases as "wrong approach"
UN agency sees US tariff increases as "wrong approach"
UN agency sees US tariff increases as "wrong approach"
UN agency sees US tariff increases as "wrong approach"
