GENEVA, May 14 (Xinhua) -- The United States is using tariffs as a strategic tool to extract concessions beyond trade, warned Carlos Correa, executive director of the South Centre, in a recent interview with Xinhua. He cautioned that such unilateral measures could have widespread negative impacts on developing nations if not met with a strong, coordinated response.
Headquartered in Geneva, Switzerland, the South Centre serves as the intergovernmental think tank of the Global South, committed to advancing shared interests among Southern nations while respecting their diversity.
Correa criticized the United States' imposition of unilateral tariffs, saying they have caused serious harm to developing economies - particularly to the least-developed countries. "These impacts may be very significant in terms of job losses and even the closure of some industries or farms. And in terms of increased debt, interest rates may go up if the situation goes on," he added.
He also rejected the U.S. narrative that its trade deficit stems from unfair practices by other nations. Instead, he pointed to deep-rooted structural issues within the U.S. economy itself. He cautioned that the United States has been wielding tariffs as a lever to secure private gains, such as preferential access to mineral resources, which undermined the interests of the vast majority of developing countries.
Correa stressed that no single country should override the international trading system, and urged developing nations to strengthen cooperation to address the challenges "created by one country."
He emphasized that only through dialogue and collective action can the Global South safeguard its shared interests and contribute to a balanced global economy. "Our advice to developing countries will continue to be: do not avoid dialogue, but defend your own interests and uphold the multilateral system that is effective in securing rules that serve not just one major economy, but the economies of all countries within the system," said Correa.
Highlighting the continued importance of the World Trade Organization (WTO), Correa called it the most comprehensive platform for coordination and dispute resolution. He urged developing nations to participate actively in WTO reforms to enhance transparency and inclusiveness, thereby bolstering the organization's legitimacy and effectiveness.
Correa also commended China's active role in advancing South-South cooperation. "China has made significant efforts to promote South-South cooperation, and this presents a major opportunity to increase trade among developing countries," he said.
