Industry News

by Xiong Weisheng

BEIJING, May 18 (China Economic Net) — China's zero-tariff treatment for imports from 53 African countries can help African economies export better, not just export more, if supported by investment in processing, storage, transport and quality standards, Stephen Jackson, UN Resident Coordinator in China, said on Monday.

In a keynote speech at a trade and investment summit in Beijing, Jackson said the greatest development impact of tariff-free access would come when it helps African goods move further up the value chain.

"The opportunity is not only for Africa and the rest of the developing world to export more. It is to export better," Jackson said.

In response to a question from China Economic Net (CEN) during a group media interview on the sidelines of the summit, Jackson said tariff-free access needs to be followed by investment in capacity on the ground.

"There needs to be investment in the capacity on the ground, to help industrialise, to help improve quality, to help improve standards, to help improve rates of production," he said.

Jackson cited agriculture as an example, saying African producers often face heavy losses after goods leave the farm and before they reach the port.

"Between one-third and two-thirds of the harvest ends up being wasted, because there is not adequate storage. There isn't good provision around transport," he said.

Improving storage, transport, processing and standards would help African products become more competitive in global trade and allow African economies to retain more value domestically, he said.

Jackson said turning tariff access into development gains would require cooperation across several layers, from market access to investment, standards, logistics and capacity-building.

"It's a multilayered cooperation, which is something I think China is very good at," he said.

From the UN perspective, trade is "absolutely integral" to sustainable development, Jackson said, adding that developing countries need support to benefit from trade on equal terms.

"If we help a continent like Africa, but also other parts of Asia, Latin America and elsewhere, invest in moving up the value chain, then everybody wins," he said.