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China to Eliminate Tariffs on African Imports Amid US Trade Tensions

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China has announced plans to eliminate tariffs on imports from all 53 African nations with which it maintains diplomatic relations, a significant move that strengthens its economic ties with the continent amid growing trade tensions with the United States.

The decision was unveiled during a high-level China-Africa cooperation meeting, where officials criticized unilateral tariff impositions by “certain countries” that disrupt global trade. While not explicitly naming the US, the statement called for resolving trade disputes through “equality, respect and mutual benefit.”

Deepening China-Africa Trade Relations
China has been Africa’s largest trading partner for the past 15 years, with African exports to China reaching approximately $170 billion in 2023. The new zero-tariff policy extends a previous agreement that waived duties for 33 least-developed African nations, now including major economies such as South Africa and Nigeria.

The timing of China’s announcement is notable, coming as the US considers imposing steep tariffs on several African exporters including:
– Lesotho (50% tariff)
– South Africa (30%)
– Nigeria (14%)

The US has temporarily paused these measures until next month offering a window for negotiations. However, if implemented they could undermine the Africa Growth and Opportunity Act (AGOA) a key US trade preference program that allows duty-free access for many African goods.

Strategic Implications
China’s tariff elimination reinforces its economic influence in Africa, where it is already the top investor in infrastructure and mining. Key imports from Africa include:
– Cobalt and copper from the Democratic Republic of Congo
– Bauxite from Guinea
– Crude oil from Angola and Nigeria

The exclusion of Eswatini from China’s tariff waiver due to its diplomatic recognition of Taiwan, highlights Beijing’s continued use of economic incentives to isolate Taipei.

Global Trade Tensions Escalate
The move intensifies the economic rivalry between China and the US in Africa. While Washington warns of over-reliance on Beijing, African leaders may see China’s tariff-free access as a more stable alternative amid US policy shifts.

Analysts suggest that China’s decision could:
– Boost African exports to China, particularly in agriculture and manufacturing.
– Pressure the US to reconsider its tariff strategy under AGOA.
– Further marginalize Taiwan’s remaining African ally, Eswatini.

As trade dynamics shift, Africa finds itself at the center of a deepening geopolitical contest between the world’s two largest economies.

 

Source :BBC

Emebet Asefa , Correspondent Addis Ababa , Ethiopia

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