Minister advocates trade defence instruments
INDUSTRY and Commerce Minister, Nqobizitha Mangaliso Ndlovu, has stressed the need to employ trade defence instruments to protect local industries from unfair competition caused by practices such as dumping and subsidies.
Speaking at the third Annual National Trade Tariff Conference, hosted by the Competition and Tariff Commission in Mutare last week under the theme “Leveraging Trade Defence Instruments — Moving Zimbabwe’s Industries Up the Value Chain for Sustainable Growth,” Minister Ndlovu highlighted the significance of the two-day event, which began on Wednesday.
He noted that the conference plays a crucial role in shaping the nation’s industrial growth through strategic trade initiatives that promote local industries while opening up markets for domestic products.
Minister Nqobizitha Mangaliso Ndlovu
Minister Ndlovu pointed out that the timing of the conference was ideal, given the current challenges faced by local industries, including unfair competition from smuggled imports and counterfeit products.
“The cornerstone of our industrial policies and strategies is the promotion of local industries and value addition. However, in doing so, we need to take cognisance of the nature of our industries and the environment in which they operate to ensure their sustained growth,” said Minister Ndlovu.
He stressed that trade defence instruments are powerful tools that can safeguard nascent domestic industries from unfair trade practices like dumping and subsidies. These instruments, aligned with international best practices and governed by the World Trade Organisation (WTO), help create a level playing field for local manufacturers to compete with imports while adhering to global trade regulations.
However, Minister Ndlovu cautioned that it is essential to strike a delicate balance between protectionism and competition to avoid stifling innovation and discouraging optimal efficiencies within firms.
He also said the Government should use tariffs as a tool to incentivise local production, encourage businesses to invest in research and development, adopt advanced technologies and create high-end valued products.
Minister Ndlovu discussed the recently launched Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP), which aims to address the immediate challenges facing the local manufacturing and commerce sectors. These challenges include the high cost of doing business, multiple regulations, informalisation, smuggling and the proliferation of counterfeit products in the local market.
He stated that the plan would lay a solid foundation for accelerated industrial development towards achieving Vision 2030. Additionally, the plan seeks to facilitate local value addition and reduce the perennial trade deficit through the import substitution thrust of targeted sectors with high growth potential for localising supply chains.
“These sectors include cement, motor vehicles, tyres, iron and steel, oil seeds, pharmaceutical and fertiliser, among others,” he said. “The successful implementation of ZIRGP is anchored on close and robust collaboration and engagement with all key stakeholders, including business, labour and the whole-of-government approach.” -chroncile
