Abu Dhabi: Trade protectionist policies of the US government are worrying and may lead to trade wars between different countries, according to a senior academician at Zayed University.
“It is quiet worrying that they are imposing tariffs but US may also try to limit impact of tariffs on its own partners. So hopefully calmer heads prevail because if we get into a trade war where the US imposes and China imposes then we get back into the situation of 1930s of great depression, which none of us want,” said Dr Li-Chen Sim, assistant professor of humanities and social sciences.
US has recently imposed tariffs on imported aluminium and steel and is also negotiating with Mexico and Canada on North Atlantic Free Trade Agreement (NAFTA).
Speaking on NAFTA, Dr Sim said the US will not pull out of the deal as the country’s economy is “very much integrated into NAFTA energy system.”
“If US wants to improve shale oil production, it also depends on the import of steel from Canada because they don’t have the capacity. Canada and Mexico are also excluded from recently announced tariffs.”
She also spoke on regional trade blocs like Asean (Association of Southeast Asian Nations) and Eurasian Economic Union and said trade blocs do play a role in liberalising world trade and in removing tariffs among some countries.
“Regional trade blocs are also a form of geopolitical power.”
Dr Sim spoke on regional economic blocs and the future of global economic power at Emirates Center for Strategic Studies and Research (ECSSR) in Abu Dhabi on Tuesday.
