Zero tariffs boost South Africa's exports

South African officials have welcomed the increase in trade with China following the operationalization of China's zero-tariff treatment of the country.

China's zero-tariff measure took effect on May 1, granting 53 African countries duty-free access to the Chinese market. South Africa was one of the first countries to export 24 metric tons of fresh apples to China on May 1 under the zero-tariff treatment.

According to data released by the South African Revenue Service, between May and August, China and South Africa's bilateral trade increased by 24 percent year-on-year to $15 billion. South Africa's exports to China reached $5.3 billion, which is up 25 percent year-on-year, outpacing South Africa's overall export growth of 17 percent over the same period.

Parks Tau, South Africa's minister of trade, industry and competition, said between June 1 and Aug 31, the South African Revenue Service issued 25,975 certificates of origin, showing that customs declarations rose by 199 percent year-on-year.

He said South Africa will have a series of strategic trade fairs, targeted outward selling missions, hosted buyer missions and direct business-to-business engagements to advance clearly identified opportunities.

Wu Peng, Chinese ambassador to South Africa, welcomed South Africa's increase in exports to his country. He said South Africa and China will engage in the near future to ensure that "high-quality South African fruits and vegetables" reach Chinese consumers.

"The zero-tariff policy … is also making companies more aware of the opportunities to invest in South Africa. Zero tariffs significantly reduce the cost of trade between South Africa and China, granting companies operating in South Africa a stronger competitive advantage when exporting to China. This, in turn, can attract investors from around the world to invest and establish businesses in South Africa," said Wu. He said the policy has improved the structure of trade between the two countries. Exports of high value-added goods such as machinery and electronics, chemicals, and automobiles also increased.

Cecil Masoka, director of Europe and Gulf States at South Africa's Department of Science, Technology and Innovation, said the policy will allow South African companies to establish more trade relations with their Chinese counterparts.

Schalk Human, interim deputy commissioner of the South African Revenue Service, said they are working on removing the "customs bureaucracy" to promote trade.

The writer is a freelance journalist for China Daily.