China has informed the World Trade Organisation (WTO) of its expanded zero-tariff policy for Least Developed Countries (LDCs) that maintain diplomatic relations with Beijing, which could open up the Chinese market for African coffee growers.
The policy covers countries listed by the United Nations that exhibit the lowest indicators of socioeconomic development. Of the 44 countries listed as LDCs, 32 are in Africa.
China currently imposes an eight per cent tariff on raw coffee beans from some African countries, however there were already zero tariffs on coffee imported from Ethiopia and two other African nations since 2023.
Major coffee producers Uganda and Ethiopia are listed as LDCs by the United Nations, along with other coffee producing nations like Tanzania, D.R. Congo, Guinea, and Togo.
In the China-Africa declaration, it is also stated “China will roll out measures on market access, inspection and quarantine, and customs clearance to boost trade in goods, enhance skills and technical training, and expand the promotion of quality products.”
According to the State Council of the People’s Republic of China, China has expressed readiness to extend its zero-tariff policy to all 53 African nations that have diplomatic ties to China.
According to Global Times China, China imported US$165.1 million of coffee products from Africa in 2023, the same year China-Africa trade reached a record value of $282.1 billion.
Africa is responsible for approximately 12 per cent of the world’s coffee production. According to the United States (US) Department of Agriculture, Uganda and Ethiopia make up roughly 10 per cent alone.
China’s cutting of tariffs on coffee imports from Africa comes alongside US President Donald Trump’s desire to increase tariffs on all Brazilian products to 50 per cent.