The U.S. trade policy has been politicized and is now disconnected from the very principles of trade, said a senior official of the Economic Commission for Latin America and the Caribbean (CEPAL, its Spanish acronym), a United Nations regional body focused on promoting economic development in Latin America and the Caribbean.
Earlier this month, U.S. President Donald Trump announced a 50 percent tariff on all copper imported into the United States starting August 1, along with additional tariffs of 50 percent on goods from Brazil and 30 percent on those from Mexico.
These tariff increases are effectively demanding other countries to grant the United States the most-favored-nation status, which has violated international agreements, said Keiji Inoue, officer-in-charge of the CEPAL's International Trade and Integration Division.
"We are witnessing the politicization of the U.S. trade policy, which has become disconnected from trade itself. By imposing tariffs, the United States is breaking bilateral agreements to some extent. At the same time, by asking other countries and trading partners to open their markets and impose zero tariffs on U.S. goods, the United States is undermining the World Trade Organization's most-favored-nation principle. By doing so, the United States is violating both bilateral and multilateral agreements," he said.
The tariff increases announced by the United States on Latin America and Caribbean countries have created uncertainty in the region's economy, significantly impacting nations like Mexico, the Dominican Republic and Jamaica, said Inoue. "Mexico suffers most from U.S. tariff policies as 80 percent of its exports go to the United States. The automotive and auto parts sector in the country will be hit hardest, along with the electronic manufacturing outside the United States-Mexico-Canada Agreement. The Dominican Republic and Jamaica are the second most affected countries. These three countries are more dependent on the U.S. market. Brazil faces the highest tariffs imposed by the United States, which significantly affects its economy. The Brazilian steel sector and aeronautical sector could also be affected, as well as the copper sectors in Chile and Peru," he said.
US politicizes trade policy , violates int'l agreements: CEPAL official
