Zimpapers Logo

ZimTrade head of delegation Allan Majuru (left) with the Zambian Minister of Commerce Margaret Mwanakatwe (second left) at the Zambia Agric Show yesterday

Happiness Zengeni in LUSAKA, Zambia
Lack of knowledge on preferential trade agreements is suppressing Zimbabwe’s export potential to the region and beyond. ZimTrade head of delegation to the Zambia Agriculture and Commercial Show Mr Allan Majuru said companies could grow the country’s exports which stood at $1,23 billion at half year if they utilise the various trade agreements within the region and other economic groups.

“We are encouraging Zimbabwean exporters to take advantage of duty, quota free access under COMESA, SADC and interim Economic Partnership Agreement.”

Zimbabwe has preferential Bilateral Trade Agreements with Botswana, Malawi, Namibia and Mozambique. Qualifying products enter the territory of one another without the payment of customs duty.

Zimbabwe is also a member of Regional Trade Agreements. These are; the Southern African Development Community (SADC) Trade Protocol and the Common Market for Eastern and Southern Africa (COMESA) Free Trade Area. Qualifying products enter the territory of signatory Member States without payment of customs duty.

The interim Economic Partnership Agreement confers quota and duty free access of Zimbabwean products exported into the 28 Member States of the European Union (EU).

The Generalised System of Preferences (GSP) offers non-reciprocal preferences (not necessarily duty free) to qualifying products exported to developed countries such as the US, Canada, the EU and Australia

Mr Majuru said the objective of the various trade agreements is to stimulate and encourage trade between countries who sign the agreement.

“All these trade agreements can work in our favour and boost exports in line with Zim-Asset as it affords the country preferential treatment and reduction or elimination of duty for targeted products.

According to Finance Minister Patrick Chinamasa, exports are projected to decline by 5 percent in 2015, owing to softening commodity prices as well as some decline in agricultural output of our cash crops such as tobacco and cotton.

Zimbabwean Ambassador to Zambia Getrude Takawira said that the country (Zambia) provided opportunities for local companies particularly in the infrastructure space.

“There is a lot of construction taking place particularly in roads and Zimbabweans have an advantage over most because of the strong brands they possess. The majority of Zimbabwean companies have been there for fifty years.”

Ambassador Takawira said that the trade barriers being addressed through the tripartite agreement between three regional economic blocs.

She was speaking after touring the Zimbabwean stand at the Zambia Agriculture Show yesterday.

Ambassador Takawira said that Zimbabweans should maximise economies of scale by investing in other countries as a unit rather than individually.

“South African companies are strong in that when they invest, let’s say, in a shopping mall they do so as a unit. All the businesses who take up space there will be South African. Zimbabweans should also do the same just like what they have done on this exhibition.”