Ministers of Trade from the Southern African Development Community (SADC) have raised concern over the growing geopolitical tensions between Western and Eastern powers, warning that escalating trade disputes could undermine the multilateral trading system.
Meeting in Harare, Zimbabwe on Thursday, the ministers highlighted the increasing use of reciprocal trade measures, which they argue threaten the fundamental principles of global trade agreements.
“The increasing emphasis on reciprocal trade measures that the world is witnessing calls into question the fundamental basis of multilateral and plurilateral trade agreements, whereby all parties to trade agreements are treated equally under the most-favoured nation principle,” the ministers said in a communique at the end of their meeting.
The most-favoured nation principle, which ensures equal treatment for all parties in trade agreements, is being eroded as major economies impose retaliatory tariffs and trade restrictions.
The geopolitical divide between the West and East has deepened in recent years, with the United States and European Union tightening trade policies against China and Russia.
The US has ramped up tariffs on Chinese imports, citing national security concerns, while the EU has reduced trade reliance on Russia following ongoing tensions over Ukraine.
Meanwhile, China has sought to strengthen trade ties with developing economies, shifting its focus away from traditional Western markets.
SADC ministers noted that these global trade shifts could have severe consequences for the region, particularly for smaller economies that rely on predictable trade rules to foster economic growth.
They reaffirmed their commitment to the World Trade Organisation (WTO) framework, advocating for a fair, transparent and rules-based system that supports development in poorer nations.
“SADC member states acknowledge the critical role that the WTO has played in fostering global economic growth and serving as a forum for dialogue to help prevent escalating trade conflicts.”
In response to external trade shocks, SADC member states pledged to enhance self-reliance by boosting intra-regional trade and industrialisation efforts.
The ministers stressed the importance of value addition and beneficiation of raw materials produced within the region to strengthen economic resilience.
JN/APA