Summary:

On 25 March 2026, Libya’s Government of National Unity announced an agreement with China to remove tariffs on Libyan exports starting in May 2026, aiming to boost trade and strengthen bilateral economic ties.  

The agreement was finalized in discussions between Acting Economy and Trade Minister Suhail Abu Shiha and a senior representative from China’s trade promotion council, highlighting initiatives to boost the competitiveness of Libyan products and strengthen financial collaboration. 

Both sides also encouraged greater Chinese participation in Libya’s reconstruction projects and the upcoming Tripoli International Fair, as Tripoli seeks to attract investment and support economic recovery.  

Discussions further addressed facilitating visas, resuming the activities of Chinese firms, and resolving outstanding issues linked to companies affected by past instability, with recommendations set to be submitted to political leadership for implementation. 

Outlook: 

The agreement with China reflects Libya’s efforts to deepen economic engagement as part of a broader strategy to revive trade and attract foreign investment amid ongoing recovery challenges.  

Tariff removal could boost the competitiveness of Libyan exports in the Chinese market, while increased Chinese participation in reconstruction and infrastructure projects will likely follow, though progress will remain dependent on the stability of the security and political environment. 

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