Zero-tariff treatment for least developed countries significantly boosts trade liberalization

China's policy of extending zero-tariff treatment to the least developed countries (LDCs) with which it has established diplomatic relations has significantly boosted trade liberalization, fostering a new era of shared benefits and mutual development.

March 10 marked 100 days since the entry into effect of China's zero-tariff treatment for all products from the least developed countries (LDCs) maintaining diplomatic ties with China.

Over the past three months, trade between China and these nations, including 33 African countries, has seen significant growth, creating new opportunities for economic development and cooperation.

Recently, a batch of natural rubber imported from Laos cleared customs in Qingdao City of east China's Shandong Province and entered a local tire production line, benefiting from the tariff exemption.

"With the preferential certificate of origin, this shipment enjoyed the exemption of 660,000 yuan (about 91,246 U.S. dollars) in import duties," said Sun Yunhua, operator of a foreign trade company.

Implementing preferential tariff rates for the least developed countries not only reduces tariff costs for Chinese importers but also enhances the competitiveness of export products from these nations, significantly boosting bilateral trade.

To ensure that enterprises will fully utilize the policy, Chinese customs authorities leverage big data analysis to match import declarations with the zero-tariff list, providing targeted guidance.

"For goods from landlocked countries like Mali, Niger and Zambia that must be transshipped through a third-country port to reach China, as long as they remain in container transport without changes to the seal identification code, the requirement for a third-country official non-processing certificate is waived. This allows these goods to directly enjoy zero-tariff benefits, further enhancing the efficiency and convenience of preferential tariff access for businesses," said Wang Zhiwei, deputy director of the Tariff Department of Qingdao Customs.

Zero-tariff treatment for least developed countries significantly boosts trade liberalization

Farmers in India, a major agricultural producer and fertilizer importer, are raising concerns over fertilizer availability ahead of the planting season, as the escalating Middle East conflict and disruptions to shipping through the Strait of Hormuz put global supplies at risk.

The Middle East serves as both a vital energy hub and a major global fertilizer supplier, yet the ongoing U.S.-Israeli war with Iran has heightened risks of disruption to international supplies.

Chand Singh Yadav, a farmer in Haryana, a northern Indian state, said poor crop yields would be disastrous for the country and called on the government to ensure adequate supplies of fertilizers, agrochemicals and seeds to prevent a food crisis. "Without fertilizers, our crops will not grow well, and this would be disastrous for the entire country. If farmers cannot grow crops, people will not be able to buy food in the market. We urge the government to improve the supply system for fertilizers, agrochemicals and seeds to prevent the country and society as a whole from sliding into a food crisis," he said.

The Indian government is stepping up subsidies for farmers and optimizing fertilizer distribution and allocation to stabilize the supply. Prices have remained broadly stable, but demand is expected to surge ahead of the planting season, potentially exacerbating supply pressures.

"The current situation is worrying for us farmers. Spring sowing has not yet started, and the rainy season has not arrived. Fertilizer prices are temporarily stable, but in two months, demand for agricultural fertilizers will become pressing. Without fertilizers, it will be difficult to properly cultivate various types of crops. Urea and diammonium phosphate are especially critical. Crops can only grow normally when these fertilizers are applied. As these fertilizers are largely imported, if the conflict persists, supplies cannot be guaranteed," said Santosh Mishra, a farmer in India's eastern state of Odisha.

Escalating Middle East conflict strains India’s fertilizer supply

Escalating Middle East conflict strains India’s fertilizer supply