By: Amr Adel
Participants in the Annual Investment Meeting (AIM) 2017, which is held in Dubai, warned against the rise in trade protectionism around the world.
On Monday, the first day of the forum, speakers said that such measurements can negatively impact economies on the long run, as well as growth rates and foreign direct investments (FDI).
The Emirati minister of economy, Sultan Al-Mansoori, said that protectionism could baffle the growth of foreign investments, noting that today’s world is more connected, with changes in any part of the world affecting the rest, with some communities struggling to keep up with the changing global dynamics.
Common challenges can only be faced with group efforts, and cooperation between governments and the private sector, which can help in overcoming these challenges, Al-Mansoori added.
The minister also stressed the importance of economic openness and free markets as a stimulus for growth and development, saying that protectionism only serves short-term purposes but leave its negative impacts on the long-term.
Abdulla Alsaleh, the undersecretary for foreign trade and industry at the Emirati ministry of economy, reiterated the minister’s remarks, and indicated that he does not think the recent US protectionist measures are directed against the Gulf countries nor the UAE.
The general secretariat of the United Nations Conference on Trade and Development (UNCTAD) also warned against the increase in trade conflicts around the globe.
Mukhisa Kituyi added that among the reasons behind the slowing growth rates for international trade in the last nine years, is inequality and abandoning the opportunities to make the best use of foreign cash inflows.
He also pointed that international trade recorded a lower growth rate last year than that by the Gross domestic product (GDP).
