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GTAP Resource #4136

"Economic Impacts on the Least Developed African countries by China’s Tariff Reduction: an Analysis Based on General Equilibrium Model"
by Dong, Wanlu and Yang Jun

China government has attached great importance to the economic and trade cooperation with African countries in order to promote the persistent bilateral economic developments. Strengthening the economic and trade communications between China and Africa can benefit more than these two aspects -- It has great influence on the cooperation among the developing countries as well as the construction of the new international political and economic order.

China government has carried out a series of policies from the beginning of 21th century to deepen the economic and trade relationship with African countries. The tariff reduction is one of the most important policies implemented and draws great attention worldwide. The policy was firstly launched in 2005, and tariff lines of 190 commodities from the 25 least developed African countries were eliminated. It was further enhanced in 2006, and tariff lines exempted were expanded to 454 commodities from 26 African countries in 2006. The most remarkable tariff reduction happened in 2010, and import tariffs of 4762 commodities from the 33 least developed African countries eliminated. This unilateral tariff reduction covers most of the trade commodities from more than half of African countries and is supposed to influence the trades as well as the industry structures of China and African countries significantly. However, there has no quantitative analysis carried out to assess this influence. This research is trying to fill this gap in literature and evaluate the economic impacts of China’s tariff reduction.

Before the simulation, the tariff and trade structures are analyzed. It was found that China mainly imports cotton, forestry, natural resources and other agricultural goods from the least developed African countries that enjoy this tariff reduction policy (LDAC). However, the larger tariff reductions happen on fruits and vegetables, aquatic goods, processed food, oil seeds and vegetable oil. Therefore, it is expecte...

Resource Details (Export Citation) GTAP Keywords
Category: 2013 Conference Paper
Status: Published
By/In: Presented at the 16th Annual Conference on Global Economic Analysis, Shanghai, China
Date: 2012
Created: Dong, W. (4/14/2013)
Updated: Dong, W. (4/14/2013)
Visits: 2,140
- Preferential trading arrangements
- Africa (Central)
- Africa (West)

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