China to eliminate all tariffs for African countries
China continues to strengthen ties with the Global South.
The big news: On Wednesday, China announced that it was getting rid of all tariffs for all imported goods from all African countries (except Eswatini, which continues to recognize Taiwan).
Déjà vu: In September, China announced that it would eliminate all tariffs for goods from Least Developed Countries (LDC), 33 of which are in Africa.
What that means in practice:
- This will affect 20 African countries not classified as LDCs.
- For those 20 countries, around 98% of products were already tariff-free; this will cover the remaining 2% of product categories, most of which are agricultural and natural resource commodities.
- Average tariffs on these goods were previously around 7%.
China also promised to go above and beyond for Africa’s LDCs (Xinhua 1):
- “For the least developed countries in Africa, on top of the zero-tariff treatment for 100 percent tariff lines…, China will roll out measures on market access, inspection and quarantine, and customs clearance to boost trade in goods, enhance skills and technical training, and expand the promotion of quality products.”
Get smart: For China, the macro effects of these tariff reductions will be minimal. But for some of the African economies affected, the results will be substantial.
Get smarter: China’s tariff reductions contrast sharply with the universal tariffs imposed by the US in April.
- This will lead to deepening economic ties between China and Africa, and help to burnish China’s reputation in developing countries more broadly.