China will start its zero-tariff to 98% of products from 16 developing countries including Rwanda effective next month, an authoritative source disclosed Monday in Kigali.
China’s Department of Foreign Affairs said the move is aimed at increasing the number of imports from low developed countries including those in Africa and some Asian countries as well as cementing strong trade ties in future.
Taking on Twitter, Wu Deng, China’s Director General, Department of African Affairs, MFA, China said “From September 1, (sic), China will increase the scope of products enjoying zero-tariff treatment to 98% for 16 least developed countries including Rwanda, Djibouti and Togo”
“The tax free policy will gradually expand to all least developed countries and increase imports from Africa,” the Chinese official said
Most of the countries covered by this trade policy are located on the African continent including Togo, Eritrea, Central African Republic, Guinea Conakry, Rwanda, Sudan, Chad, and Djibouti and Asia.
Also, according to the initial statement released last month, the zero-tariff statute will cover 8,786 imported products.
It is expected that the preferential treatment will gradually expand to all the least developed countries having diplomatic relations with China according to sources.
Rwanda-China diplomatic and trade relations span over 50 years where the two countries have been cooperating on energy, infrastructure, and education among others.
During Covid-19 in 2020, China cooperated with Rwanda in the fight against the pandemic donating to Rwanda 500,000 doses of vaccine and batches of medical supplies including PPE’s, testing kits for COVID-19 and other medical equipment plus the grant worth US$6 million debt to Rwanda so to help Rwanda’s economy to recover from the pandemic.
Figures from the Organization for Economic and Development report (OECD) indicate that China exported $63.9 million and imported $5.29million from Rwanda, resulting in a positive trade balance of $58.6 million.
CU/abj/APA