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The South’s Escalating Tariffs Against African Exports

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Harry G. Broadman - Africa\'s Silk Road China and India\'s New Economic Frontier (2007, World Bank Publications) - libgen.li
Morley, David - The Cambridge introduction to creative writing (2011) - libgen.li

The South’s Escalating Tariffs Against African Exports
The Case of an Indian Cashew Processing Business in
Tanzania Trying to Export to India
This cashew processing company was established in Tanzania in 1947 by an Indian family. The fourth generation of this family still owns and manages the firm, but today it is part of a large group company (owned by the same Indian family) involved in various lines of the agricultural processing business, including rice mills, seed oil mills, chickpea mills, and maize mills.
It recently purchased new machinery from India and is embarking on anew line in its export business sale of organic cashews, with plans for this line to account for 35 percent of production.
Trade policies constitute some of the most significant challenges facing the firm today, both in Africa and overseas. In Tanzania, the company faces burdensome trade regulations that inhibit its ability to export efficiently. This includes not only burdensome paperwork in customs, but also export taxes,
which the company is lobbying to reduce. With respect to its sales outside of Africa, the firm exports 70 percent of its cashews to the United States,
Canada, Japan, and the EU. Ironically, only 10 percent of its cashew exports enter the Indian market, the largest cashew market in the world. In large part this is due to India’s escalating tariff on processed cashews:
while India’s imports of raw cashews face a zero tariff, processed cashews face an Indian tariff of 37 percent. This escalation has the effect of providing strong protection for India’s domestic cashew firms.
Source: World Bank staff.
03-Chap3:03-Chap3 10/10/06 10:08 AM Page 141

142
AFRICA
’
S SILK ROAD
:
CHINA AND INDIA
’
S NEW ECONOMIC FRONTIER
Figure 3.9 presents tariff schedules of Africa’s top 10 items imported from China and India. Textiles and yarn, apparel, and footwear are among the largest imports. They also have the highest tariffs. Other large imports from China and India include manufactured goods such as electronics,
machinery and transportation equipment. These items in general have relatively low tariffs.
FIGURE 3.6

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