• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»What South African Rooibos Tea Can Tell Us About Africa-China Trade Flows
Finance

What South African Rooibos Tea Can Tell Us About Africa-China Trade Flows

February 13, 2024No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
What South African Rooibos Tea Can Tell Us About Africa-China Trade Flows
Share
Facebook Twitter LinkedIn Pinterest Email

Last month, China’s General Administration of Customs released its customs data for 2023. The data showed that China’s total trade with Africa grew a modest 1.5 percent in 2023, reaching $282.1 billion, but Africa’s trade deficit with China widened. While Chinese exports to Africa reached $173 billion, an increase of 7.5 percent over 2022, Africa’s exports to China dropped by 6.7 percent to $109 billion.

Given these figures, it came as welcome news that last month China reduced import tariffs for South African Rooibos tea from between 15 percent to 30 percent down to 6 percent. Despite being South Africa’s biggest trade partner and one of the world’s largest tea consumers, China’s high tariff rates for South African Rooibos tea have meant that China was just South Africa’s seventh-highest export destination in 2023, and prior to this, did not even make it to the top 10 for its famously healthy caffeine-free tea.

In comparison, China’s neighbor, Japan, despite applying a 17 percent tariff rate for Rooibos tea, has been South Africa’s top export destination for its Rooibos tea since 2020, because Japan has a large market for healthy tea. Japan is followed by European countries, such as France, Germany, and the Netherlands that offer zero tariffs for South African Rooibos teas as part of their Generalized Scheme of Preferences for developing countries. 

Given the size of China’s consumer market, China’s decision to reduce tariffs for South African Rooibos tea by almost 80 percent could make China a priority export market in future. This could not only help reduce the trade deficit between South Africa and China, but also, if branded Rooibos products come into China, it could provide South Africa the opportunity to boost job creation and its value-added exports to China. South Africa’s Rooibos industry produces approximately 20,000 tons annually and employs 5,000 people.

See also  Opportunities Grow in South Korea for Uzbek Workers

That said, there is one major challenge to this aspiration: Recognition of South Africa’s Geographical Indications (GIs), including the GI for Rooibos tea.

GIs grant distinct rights to “the qualities, characteristics or reputation of the product essentially due to the place of origin,” according to the World Intellectual Property Organization. In other words, GI protection allows producers to raise retail prices. Well-known examples include French champagne and brie, English cheddar, and Italian prosciutto di parma ham, which are recognized in many countries and regions, including China. 

Rooibos and other African products such as South African wine and Benin’s “sugarloaf” pineapples fall under the category of eligible Geographical Indications. On supermarket shelves, GI recognitions means these products must be original – others can’t manufacture versions of them, and the businesses that sell those products can ultimately get higher prices, meaning higher incomes in African countries.

China became Africa’s first partner to commit to developing a process to recognize Africa’s GIs at the eighth Forum on China-Africa Cooperation (FOCAC) in 2021, but no clear process has been revealed so far. With the ninth FOCAC due to take place in late 2024, and with the welcome push toward opening up China’s market to African products in recent years, African leaders need to ensure that a clear strategy to implement a process to recognize Africa’s GIs makes it to the FOCAC 9 agenda. 

There are already several Chinese companies importing unprocessed Rooibos tea leaves into China and packaging them under their own brands. Pushing for the recognition of African GIs and exporting GI products, such as Rooibos tea, can help African countries to compete with other regions in the Chinese market and create space for distinct, higher-value African products to enter the Chinese market. 

See also  Stocks making the biggest moves in the premarket: TSLA, AAPL, AZN

Fortunately, and with the recent tariff cut as an indication of goodwill and interest from China, South Africa is well positioned to lead the way in pushing for China to recognize African GIs. The South African Customs Union (SACU) has already secured the recognition of Rooibos tea’s GI status in the European Union in 2014 and the United Kingdom has also continued to recognize its GI post-Brexit.  SACU can apply lessons learned from its negotiations with the EU and work with other African regional bodies, including the African Continental Free Trade Area Secretariat, to negotiate GI deals with China. 

Indeed, a shared African strategy to see the FOCAC 8 pledge delivered, perhaps using Rooibos as a starting point, could make some difference to closing that trade deficit in 2024, so that both the volume and value of African exports to China consistently increases going forwards.

AfricaChina African flows rooibos South Tea trade
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

Trump Admin Ready To Provide Another Round Of Financial Aid To Farmers Impacted By China Trade War

April 28, 2025

‘They Came With Their A Game’: Donald Trump, Scott Bessent Reveal Which Country Could Be Close To Making Trade Deal

April 24, 2025

Ending China’s De Minimis Exception Brings 3 Benefits for Americans

April 17, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

China Ramps Up Crackdown On American Tech

October 1, 2023

Lawyer Claims Browns Owner Jimmy Haslam Admitted to Bribery Claims in Recent Testimony

December 25, 2023

Thailand’s Real Estate Boom: The Impact of Chinese Investment

October 4, 2023

Taylor Swift Bodyguard Returns to Israel to Join IDF Unit’s Fight Against Hamas

October 17, 2023
Don't Miss

Short and Funny Sayings for a Happy Summer with Friends

Lifestyle May 9, 2025

I love the beach. Just looking at the calming sea to relax. Having fun in…

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,627)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Canadian MP Targeted by China Tells Congress Beijing Meddling Is ‘a Serious National Security Threat’

September 17, 2023

Conservative Columnist: Trump Is So Bad That ‘Feeble Vessel’ Biden Is Better

September 26, 2023

REPORT: Biden Regime is Forcing Illegal Immigrants to Stay in Texas as Blue States Grapple with Migrant Crisis | The Gateway Pundit

September 8, 2023
Popular Posts

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.