140
AFRICA
’
S SILK ROAD
:
CHINA
AND INDIA’
S NEW ECONOMIC FRONTIER
The overall tariff structure in Africa has some elements of anti-export bias. Table 3.6 shows that African countries overall have average high tariff rates on many product groups except for machinery and transport equipment and mineral fuels. The low average tariff rates on machinery and transport equipment reflects Africa’s high demand for these goods to support its manufacturing sectors. High tariffs on intermediate products,
such as textile yarns and cotton,
and manmade or knitted fabrics, however, create disincentives for African apparel exports due to high input prices. This is an element of the African tariff structure that is biased against manufacturing exports. In addition, these high tariffs generate inefficiency in the domestic textile industry.
Among African countries, South Africa has very low tariffs on crude materials,
crude oil, chemicals, and machinery and transportation equipment, but has relatively high tariffs on food,
beverages andTABLE 3.5
Tariff Escalation in Asian Countries(percent)
African imports
SITC Product
China
India
Japan
Asia average
211
Raw hides 0.1 0
0.8 Leather 14.7 0.7 4.6 Manufactures leather 15.0 1.9 7.9 Oil seeds 30.0 0.4 2.0 Vegetable oils 45.0
—
27.7 Coffee, not roasted 100.0 0
2.3 Coffee, roasted 30.0 9.1 9.1 Cocoa beans, raw 30.0 0
2.8 Cocoa powder 333
Petroleumoils, crude Petroleum products, refined 15.0 2.1 0.3
Diamonds, sorted 2.2 Diamonds, cut 15.0 0
6.0 Other precious/semi-precious stones 15.0 0
9.0 Jewelry 15.0 0.9 15.7 Cotton 10.0 0
14.8 Cotton yarn 15.0
—
5.0 Cotton fabrics, woven 15.0 1.0 5.6 Jerseys, etc. of cotton 6.8 Undergarments, knitted 15.0 6.9 Source UNCTAD TRAINS.
Note: Darker shades represent higher levels of processing — = data not available.
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AT
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tobacco, and manufactured materials and articles (table 3.7). This is a case where local production is protected in sectors that produce finished or semi-finished products, while imports of machinery to support local industrial development are more liberalized. A few African agricultural- based economies have extremely high tariffs against Chinese food imports, including Tanzania, Kenya,
Ethiopia, and Uganda at an average rate of above 30 percent.
BOX 3.1
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