Market access and trade policy are important in fostering China-Africa trade. The Chinese government in January 2005 implemented the Special Preferential Tariff Treatment (SPTT), which removes the tariff from some 190 items exported to China from 25 of the least developed countries in Africa. Chinese custom statistics show that the value of goods imported from Africa under the SPTT reached US$380 million in 2005—a year-on-year increase of 88 percent, about 50 percentage points higher than the growth of China’s total imports from Africa for the same year. As part of the new package of commitments China announced in November 2006, the number of tariff items affected by SPTT has been increased to over 440.
The Chinese authorities have also taken other steps. In June 2006 they announced the launch of free trade area (FTA) negotiations with the Southern African Customs Union as part of the efforts envisaged in their African Policy Paper to negotiate FTA with African countries and regional trading blocs. To help African countries build their export platform, China has set up more than 100 trade processing projects in Africa and in November 2006 committed to establishing three to five trade and economic cooperation zones in Africa by 2009.
IMF Working Paper African Department What Drives China’s Growing Role in Africa?
Prepared by Jian-Ye Wang October 2007
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