Trump told to not hurt trade

Davos, Jan. 20: Globalisation is good. That’s the message leaders of developing countries want to send from the Davos forum to US President-elect Donald Trump, who takes office on Friday.

Any return to protectionism, they fear, could bring the sky down on decades of trade-based economic growth that has lifted countless millions out of poverty. And for all the problems of blue-collar workers, globalization has helped to achieve low inflation and low unemployment for Americans too, they argue.

Elected on an antiimmigration, protectionist platform, Donald Trump has already caused ructions on the financial markets of many developing countries with threats to scrap trade agreements and impose “a very big border tax” on some imports.

That message has resonated especially in Mexico due to fears that US companies producing goods there for export will face pressure to withdraw, potentially costing hundreds of thousands of jobs and billions of dollars in export revenue.

Mexican policymakers were not in evidence at Davos this year, perhaps kept at home as they battle to steady the peso which has fallen to record lows amid the Mr Trump threats.

But there were plenty of others at hand to sound the alarm.

“The African continent’s position is: don’t damage trade,” South African finance minister Pravin Gordhan said during a panel discussion.

“Don't damage the growth potential in developing countries which is crucial to inclusivity. These are the expectations the new administration needs to hear.” — Reuters