Abu Dhabi: The United Nations Trade and Development (UNCTAD) has intensified its advocacy for the exemption of the poorest and most vulnerable economies from ‘reciprocal tariffs’.

According to Emirates News Agency, a recent report from UNCTAD highlights the challenges faced by weaker and smaller economies that are already dealing with low growth and increasing uncertainty. These countries, whose economic activities have negligible effects on trade deficits, should be spared from new tariff increases.

The UN trade body emphasized the benefits a rules-based global trading system has brought over the years, such as the boost to international commerce and the gradual decline in tariffs, which are taxes levied on imported goods. In 2023, approximately two-thirds of global trade was conducted without tariffs.

Conversely, recent increases in tariffs imposed by major economies have raised concerns about growing trade tensions and their impact on developing countries. The report, titled ‘Escalating Tariffs: The Impact on Small and Vulnerable Economies’, identifies the potential harm that reciprocal tariffs could cause to developing and least developed economies, without significantly mitigating US trade deficits or enhancing revenue collection.

UNCTAD noted that these tariffs, currently halted for 90 days, were calculated to address bilateral merchandise trade deficits between the United States and 57 trading partners, with rates ranging from 11 percent for Cameroon to 50 percent for Lesotho.

Among the 57 trading partners, 11 are classified as least developed countries and contribute minimally to US trade deficits, according to the UN Trade and Development. Notably, 28 of these partners each account for less than 0.1 percent of the deficits, yet they could still face reciprocal tariffs.