(Ecofin Agency) - Thirty-three of the least developed African countries can now export 140 additional products to China without paying any tariffs. However, this latest tariff removal by Beijing is unlikely to significantly change trade relations between China and the continent, as it mostly applies to unprocessed, low-value goods.

Starting December 1, China removed all tariffs on imports from the least developed countries (LDCs) it has diplomatic relations with. This move, announced by Chinese President Xi Jinping at the opening of the 9th Forum on China-Africa Cooperation (FOCAC) in September, benefits 33 African nations, including Angola, Benin, Burkina Faso, Burundi, and the Central African Republic.

This "unilateral opening" of China's massive market seems like a significant opportunity for Africa. However, past tariff exemptions granted by China to several African countries and the nature of trade between them show that the actual benefits for these 33 African nations may be limited.

First, this is not the first time China has implemented tariff-free policies for African countries. In 2003, during the second FOCAC, China extended zero-tariff treatment to 30 African LDCs for 190 products. Over time, this number grew, and the list of beneficiary countries was adjusted. Since 2005, all African LDCs have benefited from some form of tariff-free treatment at different times, according to a note from Development Reimagined, a China-based think tank, released on November 26.

The new tariff exemptions announced at the 9th FOCAC cover all African LDCs and add 140 more products, such as rice, wheat, sugar, cotton, soybean oil, cigarettes, timber, wool, and paper.

Exports Are Still Low-Value Raw Materials

Since 2005, the total exports of the 27 African countries that regularly benefited from China’s tariff-free policy for 97% of their products amounted to $578 billion. Over the same period, the 27 African countries that did not benefit saw similar export growth, with total exports reaching $771 billion. This suggests that zero tariffs alone are not the key to increasing export value.

Also, most African LDCs export raw materials like minerals and oil to China. This means that the zero-tariff policy mainly boosts unprocessed, low-value goods exports.

Development Reimagined believes that to fully benefit from the tariff exemption, African LDCs need to improve their manufacturing and processing capacities to export higher-value goods. According to the organization, zero tariffs alone will not fix the trade imbalance between China and its African partners. Five major raw material exporters—Angola, the DRC, Zambia, Mauritania, and Guinea—accounted for 70% of Africa's exports to China last year.

Lauren Johnston, an associate professor at the University of Sydney's China Studies Centre, agreed. “China's zero-tariff policy for African LDCs was likely to have marginal impact overall. I doubt that the tariff was the biggest trade impediment for many LDCs in exporting to China,” she said in an interview with the South China Morning Post.