Resolve trade imbalance with trust, not tariffs - Bawumia to world leaders

Former Vice President Dr. Mahamudu Bawumia has called on global leaders to prioritize trust and cooperation. He believes this approach is better than protectionist measures like tariffs.

He spoke at the International Democracy Union (IDU) Forum in Brussels. Dr. Bawumia emphasized that mutual trust is vital for stability amid trade uncertainties.

He noted that tariffs can worsen tensions and hinder economic growth. This issue particularly affects developing nations.

Dr. Bawumia highlighted Africa's marginalization in global trade. Despite its resources and youthful population, Africa struggles with trade participation.

Intra-African trade makes up only 15% of total trade on the continent. In comparison, intra-European Union trade is 67%, and intra-Asian trade is 61%.

He argued that building trust among nations could lead to fairer trade practices. This would foster better economic partnerships.

“We must move beyond short-term fixes,” he stated, “and work towards long-term solutions.” These solutions should benefit all parties involved.

Dr. Bawumia also supported the African Continental Free Trade Area (AfCFTA). He sees it as a key initiative to boost intra-African trade and integration.

For AfCFTA to succeed, member states must reduce non-tariff barriers and improve infrastructure.

“The AfCFTA provides a unique opportunity for Africa,” he remarked, “to redefine its place in the global economy.”

In conclusion, Dr. Bawumia urged world leaders to adopt policies promoting trust and collaboration. He warned that relying on tariffs could spark detrimental trade wars.

“Trust is the cornerstone of sustainable economic relationships,” he said.