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Getting rid of tariffs a win-win situation — U.S. economist

Getting rid of tariffs a win-win situation — U.S. economist

Chicago — Trade war has caused all sorts of problems, not just because of the higher tariffs themselves, but also because of adjustments the markets have to make in response to the tariffs, said a U.S. economist.

“The sooner we can take off those tariffs, the better, (because) some of those adjustments won’t have to be undertaken, and we’ll be able to get back to where we were before,” said Alan Deardorff, a professor of international economics and public policy at the University of Michigan Ford School of

Public Policy, in a recent interview with Xinhua.

“It’s very much in the interests of almost everybody in both countries to reverse this whole process,” said the professor, referring to the ongoing trade tensions between China and the United States.

He holds that China and the United States were in a pretty good place in terms of trade before the United States initiated escalating tariff measures against China. “We benefit tremendously from trade

with China,” he said, adding that the productivity of China has led to the expansion of its exports, the speed of which is ‘far more than anybody thought it would be,’ since China is making ‘really good stuff that we are all benefiting from.’

In Deardorff’s eyes, U.S. trade imbalance is in part a result of the large U.S. trade deficit with ‘everybody, not just China,’ and ‘our spending far, far more than our income, which we’ve been doing for years, and increasingly so in recent years.’

In the meantime, China “has a lot to sell, and is spending less than its income,” he said. “It then becomes an imbalance with China.”

“China is growing, expanding, getting richer and has pulled so many people out of poverty,” he said, adding that “China is a huge market and (has) businesses all around the world. Certainly U.S. businesses do not want to be excluded from it.”

Deardorff also noted the importance of globalization. “Throughout my career I have studied and argued for getting rid of barriers to trade, reducing tariffs … all that sort of thing.”

“There are adverse side effects of doing that (removing trade barriers), and we haven’t paid as much attention to that as we should have,” he said. “But that’s not a reason not to do it. It is a reason to accompany globalization with other policies to help those who are hurt by it.

“Calling himself an advocate for globalization, he said he is glad to see China making efforts to promote globalization. (By Xu Jing adopted from Belt & Road Weekly Vol.4 No.46.)


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Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.