International Trade Center warns of "A strong storm" Developing countries threaten
Geneva on July 8 / WAM / Pamela Cook Hamilton, Executive Director of the International Trade Center, warned of a “strong storm” looming on the horizon of developing countries, caused by a double shock represented by global trade fluctuations and the upcoming sharp discounts in development assistance.
In a press conference held today in Geneva, Hamilton explained that the decision to extend the suspension of US exchanged drawings until the first of August, exacerbated the uncertainty that undermines long -term investments and harms the business sectors, especially in developing countries.
She pointed out that the least developed countries are the most affected, as countries such as Lesoto face definitions that may reach 50% on their exports to the United States, which threatens vital industries and tens of thousands of jobs, and even countries that negotiate new fees, such as Vietnam, still face double definitions that may reshape regional commercial flows.
An example of the impact of uncertainty, Hamilton revealed sharp fluctuations in the gold trade between Switzerland and the United States, where Switzerland’s imports increased by 800% in May after announcing the exemption of precious metals.
This complex commercial situation comes at a time when the Group of Seven countries are preparing to reduce their spending on aid by 28% next year, which is the largest reduction in the history of the group, which reduces external support at a time when the need of developing economies intensifies.
To face this situation, Hamilton called on the countries to strengthen their regional trade relations as a first step towards restoring stability.
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