China Drops Tariffs on African Goods: New Trade Ties

by Business Times writer
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China has announced that it will remove all tariffs on goods from 53 African countries, a move that could reshape trade relations between the continent and the world’s second-largest economy.

The announcement was made following the recent Forum on China-Africa Cooperation (FOCAC) meeting, where Beijing reaffirmed its commitment to deeper economic ties with Africa.

This development comes at a time when the United States has raised tariffs on Chinese imports and tightened its export controls, further escalating global trade tensions.

While there is no final trade agreement between China and the U.S., a temporary truce remains in place until August 12.

Africa has been China’s largest trading partner for over 15 years, with trade between the two regions reaching about $170 billion in 2023.

By dropping tariffs, China aims to increase imports from African countries and provide a significant boost to their economies, particularly middle-income nations like Kenya, Nigeria, Egypt, South Africa, and Morocco.

This decision opens a wide door for African goods to enter the Chinese market duty-free, expanding opportunities for exporters across the continent.

The only African country excluded from this new policy is Eswatini, which does not maintain diplomatic relations with China.

China’s Foreign Ministry emphasized the importance of solidarity and self-reliance between China and Africa in what he described as a world facing major changes and uncertainty.

The removal of tariffs is part of Beijing’s strategy to address its structural trade surplus with Africa, which currently stands at $62 billion.

While Africa supplies large quantities of raw materials and energy products to China, the flow of African exports into the Chinese market remains limited in both value and diversity.

By removing tariffs, China hopes to rebalance trade and support Africa’s broader development ambitions.

Tariffs
Africa faces a pivotal opportunity as China drops tariffs. Success will depend on boosting production, infrastructure, and value-added exports. (Courtesy Photo)

However, there are also concerns that the policy might reinforce Africa’s traditional role as a supplier of raw materials, without supporting structural transformation or value addition.

In addition to offering market access, China pledged to support least-developed countries such as Mali and Tanzania through skills training, marketing promotion, and capacity-building programs.

This support is meant to help these economies compete more effectively in global markets and navigate the complexities of international trade.

The aim is to ensure that both less-developed and more advanced African nations benefit from the new arrangement, even though implementation details and timelines have yet to be clarified.

Currently, Africa’s main exports to China include crude oil, metals, minerals, and agricultural products.

With the new policy in place, there is growing speculation over whether higher-value sectors, such as South Africa’s car exports or Ethiopia’s textile industry, will also benefit.

If included, such industries could gain greater access to the Chinese market and help advance industrialization efforts across the continent.

However, the lack of clarity on which sectors will be affected leaves exporters in a state of cautious anticipation.

China’s tariff-free offer presents vast opportunities for Africa, but success hinges on scaling production, upgrading infrastructure, and diversifying exports. (Courtesy Photo)

The timing of China’s decision is significant. As the U.S. continues to raise barriers to trade, including imposing new tariffs on Chinese products, China appears to be countering by strengthening its alliances, especially with emerging economies.

During the FOCAC meeting, a joint ministerial statement criticized unnamed countries widely seen as a reference to the U.S. for disrupting the international economic order, and called for disputes to be resolved through respect, equality, and mutual benefit.

In contrast, the United States has adopted a more protectionist stance in recent years, tightening trade terms and offering fewer broad-based incentives to African exporters.

While African countries still benefit from the African Growth and Opportunity Act (AGOA), which allows certain products to enter the U.S. duty-free, there has been growing uncertainty about its long-term future.

With the U.S.-China trade truce nearing its expiration and no deal yet in sight, China’s outreach to Africa offers an alternative trade pathway that could prove more stable and rewarding in the near term.

This move by China could be a turning point in Africa’s global trade story, but only if the continent is prepared to take advantage of it.

As the details of the agreement unfold, African governments and businesses will be watching closely, hopeful that this new policy translates into real economic benefits on the ground.

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