Browsing: Trade tariffs

China has removed Tariffs on 98% of products imported from 9 of Africa’s poorest countries. Experts believe the measure will have a little economic impact. However, China’s image may improve.

The new tariff policy, which took effect on September 1, is applicable to mineral and agricultural imports from Chad, Central African Republic (CAR), Eritrea, Djibouti, Mozambique, Guinea, Rwanda, Togo, and Sudan.

A few Asian countries have joined the scheme.

  • China has removed Tariffs on 98% of products imported from 9 of Africa’s poorest countries
  • Xi stated at the time that the goal was to increase continental imports to US$300 billion (€302 billion) in the next three years, ultimately reaching US$300 billion per year by 2035
  • Agriculture and food purchases to China from African countries managed to reach $161 billion in 2020, accounting for 2.6% of total Chinese imports

It comes on the heels of Chinese President Xi Jinping’s declaration …

Increased intra-African trade is an effective option to pave the way for post-Covid-19 economic recovery and food security.

The COVID-19 epidemic threw Africa’s growth trajectory off course.
African nations have attempted to unilaterally liberalize trade and participate in free trade and regional integration agreements.
Nations launched the AfCFTA as one of the actions made to support more extensive intra-African trade.

The sweeping effects of Covid-19 
The health and economic implications of the COVID-19 pandemic dramatically raised the number of individuals living in severe po...

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  • Kenya and Uganda need to engage in bilateral negotiations to eradicate all outstanding Non-Tariff Barriers (NTBs).
  • EAC products have been denied preferential market access as a result of trade sanctions.
  • Intra-EAC trade is currently at a low of 15 per cent.

The East African Business Council (EABC) is urging Kenya and Uganda to engage in bilateral negotiations to eradicate all outstanding Non-Tariff Barriers (NTBs).

It is hoped that a bilateral conversation will avoid a trade standoff and retribution from the implementation of NTB by Kenya and Uganda in accordance with the Treaty for the formation of the East African Community (EABC) spirit.

Instead of using retribution as the final solution, EABC believes that the two sisterly nations should sit down together and work out all of their differences peacefully.

Read: Non-tarrif barriers still a thorn in EAC’s flesh 

Because EAC products have been denied preferential market access as a result …

The African Continental Free Trade Area (AfCFTA) sets to eliminate up to 90 per cent of tariffs on the continent that has remained economically fragmented inhibiting efficiency and constraining economic growth. 

Through the agreement, trade in the region is set to increase by 15 per cent to 25 per cent in the medium term, according to the African Development Bank.

The FTA forms a foundation for Africa to become a competitive continental market that can serve as a hub for global business. 

Read: Saccos key to achieving targets under the Vision 2030

AfCFTA is set to transform the co...

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