Lusaka [Zambia], April 26: The Common Market for Eastern and Southern Africa (COMESA) cautioned on Friday that eight out of its 21 member states would encounter serious trade challenges due to new tariffs imposed by the United States.
According to a statement by the regional bloc, the affected countries could face significant declines in trade volumes. Those at risk include the Democratic Republic of the Congo, Libya, Madagascar, Malawi, Mauritius, Tunisia, Zambia and Zimbabwe.
The COMESA said that while the United States is not a primary trading partner for the region, the increased tariffs are poised to trigger major supply and demand shocks across member states.
Exports from COMESA members, such as Kenya's textile products and Zambia's copper, will grapple with inflated prices in the U.S. market, while prices of essential capital goods from the United States will also rise.
COMESA Director of Trade and Customs Christopher Onyango said the new U.S. tariffs marked a stark departure from the intent of the African Growth and Opportunity Act (AGOA), which has long underpinned the U.S.-Africa trade ties.
"The uncertainty around AGOA raises concerns that these tariff policies may result in substantial production cuts and massive job losses across African economies," he said.
The policy brief advised COMESA countries to adopt a variable cooperative strategy, such as facilitating open negotiations and binding agreements with countries in East Asia and Europe.
Source: Xinhua News Agency
