African trade landscape amid Trump’s second term

As the World Trade Organization marks its 30th anniversary, tensions over tariffs are rattling global markets and threatening the foundation of global commerce. The impact of Trump's tariffs is not just limited to the United States or major trading partners; it has far-reaching implications for the African continent as well. Melaku Desta, the Coordinator of the Africa Trade Policy Centre, highlighted the significant effects of Trump's trade policies on Africa during a recent interview on CNBC Africa. The immediate impact of the Trump tariffs is evident in the revocation of the African Growth and Opportunity Act (AGOA), which previously provided preferential trade arrangements for African countries. The selective imposition of tariffs by the United States has disrupted trade flows and created uncertainty for African economies. While Africa may not bear the full brunt of these tariffs compared to other regions, certain individual countries will undoubtedly face significant challenges. In response to these disruptions, Africa must formulate strategic ways to mitigate the impact on both bilateral trade with the U.S. and the broader multilateral trading system. One key strategy emphasized by Desta is the need for Africa to focus on strengthening its internal market and leveraging initiatives like the African Continental Free Trade Area (AfCFTA). Since its inception in 2018, the AfCFTA has garnered support from over 48 countries, signaling a collective effort to bolster intra-African trade and reduce dependency on external markets. With a potential market of 1.5 billion people and a combined spending power exceeding $3 trillion, the AfCFTA presents a promising opportunity for African nations to safeguard their interests amid global trade uncertainties. While the rise of protectionism and reciprocal tariffs reshapes the global trade landscape, African countries must navigate a delicate balance between existing trade relations and forging new partnerships. Desta underscores the importance of unity among African nations to enhance their bargaining power on the international stage. By collectively engaging with trade partners, such as the European Union and the United States, Africa can advocate for fairer trade agreements that benefit the continent as a whole. The fragmented approach of individual countries or regional blocs negotiating separate trade deals has often weakened Africa's position in global trade discussions. To address these challenges, reforms at both the World Trade Organization (WTO) and within African institutions are crucial. Africa must actively participate in WTO negotiations to uphold a rules-based global trading system that benefits all members, especially developing economies. Additionally, strengthening African Union institutions and fostering greater unity among member states are vital steps toward establishing a unified and influential voice in global trade affairs. The future of Africa's trade landscape amidst Trump's second term hinges on strategic cooperation, internal cohesion, and proactive engagement in shaping the evolving dynamics of international trade.