UNITED NATIONS
•ECONOMIC
AND
SOCIAL COUNCIL
30 August
Original* 3K0LISH
ECONOMIC COMMISSION FOR AFRICA Standing Committee on Trade First session
Addis Ababa, 12 - 22 September 1962
AFEICAH TRA.D3 WITH ASIA
62-2177
e/gn,h/stc/6
INTRODUCTION. . .-.■:.
Foreign trade statistics reveal a relatively high share of Asia in the exports and imports of several African countries - between one-
fifth to one-third of the total-C
Geographically speaking, trade with Asia represented, in essence, intra-regional trade for a number of African countries, namely those of East Africa in their trade with Arabia and the Persian Gulf, It is therefore natural that trade between East Africa and Asia has been much larger than that between Sast and West Africa.
Although the exchange of goods between the two continents has been largely concentrated along the eastern half of the African Continent, ex planatory factors other than geographical should well be looked for since, as far as Asia is concerned, the bulk of exchange has been done with more distant countries of South East Asia and the Far East, par ticularly India-, Japan, Hong Kong and China-
Transport, certainly, was a major contributing factor. Since the main shipping lines between Surope and Asia had to pass through or near the ports on the eastern ooast of Africa, this easy and cheap connexion promoted trade between these ports and Asian markets as a going concern.
On the other hand, in the 1956-60 period, goods imported from Asia by three West African countries, namely Ghana, Sierra Leone and Nigeria amounted to about 14, 16, and IS-' per cent of their total imports res
2/
pectively, although their exports to Asia were negligible. This faot draws the attention to trade policy as an important facrtor in the develop ment of Africa1 s imports from Asian sources. While all low-cost Asian
goods were subject to severe quantitative restrictions and iiigif duties-' in French-speaking Africa, Commonwealth Africa applied litiiie, if any,
discrimination against goods from countries of Commonwealth Asia. Con-1/ The share of Asia in Africa^ total exports and imports-amounted,
during the last decade, to about 6 and 9 per cent respectively*.£/ This means that.the share of Asian-imports was higher in the latter two countries than in the UAE (Egypt).
3/ In particular, Japanese goods had to pay a three-fold import duty.
E/CN. U/STC/6
Page 2
sequantly, English-speaking countries have imported absolutely and re latively much more from Asia than did the French-speaking ones.
Following the general pattern of her exports and imports, Africa's experts to Asia consisted mainly of primary commodities (cotton, food and metallic ores) while her imports from the latter continent fell in the. broad category of manufactures-and particularly cheap consumer goods :i (textiles, footwear, household utensils1 etc.).
As with most other trading partners, Africa was running a large im port surplus with Asia throughout the fifties, which was in fact pro portionately more important than with the other continents.
Contrary to wnat happened to the import'surplus with other trading
•partners^ that with Asia was not financed by various forms of capital transfers: 'it followed a pattern of multilateral trade and resulted in
-Minimizing the cost of imports for the countries engaged in itU
If comparative costs were the only criterion, African imports from Asian suppliers would have probably reached even higher levels. However, discriminatory practices, particularlyvagainst Japanese products, which have long been applied in Africa, have succeeded in impeding the free
"entry of cheap goods into iine continent.
Discriminatory policies, which were devised during the inter-war period and after the war to protect, not so much good's produced in Africa,
but thbse produced- in metropolitan countries, still continue to be more
or less effective in Africa, " ' + " ■:•-•:•■
While in French-speaking Afrioa entry of low cost Asian manufactures
is still hindered by quota restrictions and high tariffs^ in other parts
of Africa impediment ,to entry, is achieved, more through, disguised discri mination. This disguised .discrimination operates mainly.through speci fic duties applied to broad categories of consumer goods;, with a very
ad valorem incidence on cheap supplies.
!/-• ■ " ■' ■■■•■'■ -■■"■■' - ■" "■ '-"-'■ - "•>■"■■
-' The exclusion of low-cost'Asian imports from the Franc Zone contributed
to a very large extent to the mutth higher price levels in comparison with the Sterling countries. - -^ " -■£ . .::.: . . ■
2/ Only Togo has relaxed recently discriminationragainst Japanese imports
(cf. E/C3Sr.i4/STC/2).
E/CN.14/STC/6
Page 3
Exports to Asia
Total exports to Asia averaged (1955/60) $368 million* Out of this 90 per cent was accounted for by eight African countries: Uganda, UAR,
^Sudan, Ethiopia, Kenya, Tanganyika, South Africa and the Federation of Ehodesia and Nyasaland. More than 65 per cent of the latter amount was exported to India, Japan and China, and about 15 per oent to Hong Kong,
Saudi Arabia and Aden.
Several African export commodities have found stable markets in Asia and particularly the six countries mentioned in the previous pa ragraph. Asia's total imports of goods partly supplied by Africa indi cate further possibilities of increasing her share in African exports.
India
The value of raw cotton exported to India by Uganda, Egypt and Sudan averaged million US $ 23, 24, and 19 respectively and represented 47, 8, and 21 per cent of the total cotton exports of the three countries res pectively. The three countries together supplied about 86 per oent of
Inida's total cotton imports--;The $2 million worth of copper exported to India by Uganda represent ed about 27 per cent of the latter*s total exports of copper. The Federa tions exports of copper and alloys to India of $12 million accounted for about 7 per cent of her total copper exports. On the other hand, imports of copper and alloys from the two African countries made about 44 per cent
of India's total imports of same.
Japan
Japan's imports from Africa have come from almost all the countries mentioned above and have comprised a wider variety including such products as copper and alloys, pig iron, wool, cotton, rice, oil seeds, maize, fer tilizers and gum. Japan has bean a particularly good market for Africa's metals and metallic ores. Her imports of iron ore and pig iron from the
1/ Since the African export figures are taken from African statistics
and the total Asian import figures from Asian statistics, this and
the following percentages can only give an order of magnitude.
E/OT.14/STC/6
Page 4
Federation and South Africa have been well o';«,j $25 million corresponding
to 49 and 66 per oent of total iron exports of the.two countries respec
tively. Over one third of the Federation*3 total experts of copper ore and concentrates went to Japan as well as over 85 per cent of Kenya's copper exports. Japan also took about 10 per cont of the Tederation's exports of copper products as well as 23 per cjnt of her exports of scrap metals.China and Eong-Kong
Although China (Mainland) is certair-iy the third cost important
customer after India and Japan most of tier trade concentrated on cotton
which has been supplied mainly by two countries - UAH (Egypt) and Sudan-/
Hong Kong's position has been similar exceptj however, for importing
$8 million worth of diamonds from South Africa, representing over 20 per
oent of the latter's total exports of diamonds.
Saudi jtrati'.a, Aden and the Persian Gulf
More than three quarters of tho total value of African exports going to these countries have beer, supplied by "ifchiopia, UA.R, and Sudan, Less than one fifth came from Somalia bu+- this has been of particular impor tance to former British Somaliland uhe-re e^portsi to Saudi Arabia? Aden and the Persian Gulf represented about 83 per cent of total exports.,
Exports tc these countries by Somalia and Sudan have consisted mainly of live animals, hides and skins and aorgfcuia grains, while-Ethio pia's exports to Aden - representing about cne third of thin particular
trade - consisted, mainly, of coffee and chat^j amounting to 8 and 2
million dollars and to 20 and 73 per cent of Ethiopia's total exports of the two commodities respectively,' Hot*aver, most of these commodities are subsequently re-i-expcrtod, chat locally and-coffee to tho USA and Western Europe. .As for Egypt's exports to Saudi Arabia they have been of rather different nature mainly cement and books and manuscripts. The former
1/ . In recent years also Uganda.
2/ £f leaf consumed as a stimulant in several ecuntrios of the Arab
Peninsula.
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Page 5
represented about 72 per cent and the latter about 20 per cent of Egypt's total exports of the two commodities respectively.
Imports from Asia , . *.
The actual if -not the potential importance of imports from Asia ''"
exceeds ~by far that of exports' to that continent. About nine-tenths of the imports from Asia are accounted for by Japan, India, Hong Kong, China, Ceylon, Pakistan, Malaya, and the oil producing countries of the Middle East- Imports from other Asian countries are fairly small and r
frequently erratic, <■■.-.■■■ ■
Imports from Japan "(e/t lost half of the total) cover a wide range of products, from cheap consumers manufactures to an increasing amount of machinery and equipment* This trade is not substantially different in its- broad pattern from that with Western Europe.
India (about one-eighth of the total), and to a lesser extent Hong Kon^y'China and Pakistan (accounting together for less than one-eighth)
supply mainly cheap manufactured'obnnumor"goods' together with some pri- malry products (tea, sugar etc.).
Iran,. Saudi Arabia and oth^r oil producing territories of,. ■■■
the Arab Gulf supply practically d: the .petrol along the east;coaat o^ -■
Africa and participate for one-fifth in.,the tot^l, , ,,, Besides these major ir.ports there are a few less important flows" : such as rice frozi South Vietnam, to former French West Africa, te,a^ from Ceylon to many parts c. Afrioa,^not.r to speak.of the re-exEorts...from- Aden,
to various parts of Sast Africa.
E/CN.14/STC/6 Page.6, . .
Conclusion
Already this very short and sketchy summary shows that African trade with Asia raises several important issues.
On the export side there are obviously prospects of rapid expan
sion in a mynber of products (foodstuffs and other agricultural products,
"base metals and minerals and semi-processed goods thereof) for which
several African countries possess very favourable resource endowments
(including cheap energy). Many of these products oould be produced in'
vastly greater quantities to cater for the Asian markets. It may be added, that at least the East African countries have the additional ad vantage of cheap transportation to the Persian Gulf and the Indian sub continent. For all these reasons, there is need for systematic market research and trade promotion.
On the import side the main issue is that of discrimination. Al though there bas been in recent years some progress in this respect, many forms of irrational and non-economic discrimination against Asian _ imports subsist all over Africa. There is real need for a critical
reappraisal of these anachronisms, possibly in the framework of an effort to promote African exports to Asia. In any case, as long as imports from Asia do not impede industrialization in Africa, African countries have"' all interest to get their imports from the cheapest source even if this means that they continue to run substantial import surpluses with Asia.
- It is likely that in the course of their efforts to substitute
domestic production" for imports of manufactures, African countries will
encounter serious problems on account of the highly competative imports from Asia in such items as textiles, footwear and household goods* It remains to be seen to what extent it is possible to protect the interestsof the young African industries without resorting to discrimination and
without impeding the steady growth of trade with Asia.8
■ Country
Morocco Tunisia Libya
U.A.R. (Egypt)
Sudan
Dahomey "*"
Niger Senegal Mali
Mauritania . Upper Volta , Ivory Coast
Guinea ,
Sierra Leone Ghana
Nigeria Togo Cameroun Chad Gabon
Congo (Braz.)
Central jLfric. Bepub.
1955
2.0 1.6 0.8
27.5 19.5
► 0.1
-
0.2
_
1.3
Afri(
195
0.
4.
2.
27.
19.
0.
• *
—
0.
0,'
0.
1.
Country
Ethiopia Uganda Kenya .
Tanganyika ■ • Fed. of Rhod. & Nyas.
Rep. of South Africa Madagascar
Republic of Congo
Somaliland (11alian)
(Bri.tish)
1955
27.3
32.4
12.9
15.1
0.63.7
2.0 0.6 10.1
80.2
Source: African Statistics.
AFRICAN
'... 1956-
29.6 35.2 13.2
15.7
2.2
3.9
4.10.7
13.2 81.0
E/CN.I4/I;
/ - l f . '- ■
TABLE 1 (continued)
TRADE WITH ASIAN COUNTRIES AS PEECEM1 OF TOTAL
..Exports -
- 19-5T-
29.0
21.3
16.2 20.35.1 4.5 : 2.5 W - 15,9 85.1
1958
19.7 .
27.I ■ 13.4 •■16.3 ■
5.2
4.5 2-9 ...,
1.0 .
14.9 . 83.8 ■"♦■
1959
24.9-■
31.7 12.9 18.4 7.7
5.8 2.8.1.2 . .
15.5 . 83,9 ■
I960
22.2 30.1 13.1 21.2 8.0
7.9
0.81955
2800
17.9
17.226.5
5^6 12.0 6.6 ,2.318.3
61.6* 1956
33.4 15.7 22.5 24.6
5.7
13.8 6.6 . 2.2 16.8 55.4Imports
1957
35.5
26.025.7
34.514.3 0.7 . 3.1 15^2 41.4
' 1958
32.2
24-4 27.O 32.0 6.6 12.9 8.2 4.7 27.5
42.0
-
1959
31,0 24.4 26.1 31.6
6.9
14.1 ■3^
■■'■■ 4.3
23.9
■"43.7'""
i960
29.O 22.6 26.9 29.8 7.1 14.3
10.2
25/Add.l,
E/CH.H/STC/6
Page 9
TABLE 2
AFRICA'S TRADE WITH ASIA
Million of US Dollars and Percentages
Year
1938 1948 1950
1951
1952 19531954 1955 1956 1957 1958 1959
« . a/
Export &=*
to Asia
82.2
435.7 231.9 335.4 283.3
280.6 271.6296.5
330.2
369.4 338,7
400.4Percentage share in
total
6.9
10.2 5.4 6.1
5.4
5.3 4.8 5.0 5.2 5.8 5.4 6.0Imports3'
a7~~
from Asia
149.8
305.4 406.1 560.2 495.3 423.6519.9 652.9 674.3 827.7
727.6697.1
Percentage share in
total
9.6
6.08.9
9.0 7.8
7.1
8.1 9.39.1
10.1
8.7 8.5
Sources: African Statistics? E/CN.14/l25/Add.I and E/CIT.14/171
Annex 1.
UN Yearbook of International Trade Statistics.
UN Direction of International Trade.
