Zim ready to reap Free Trade Area benefits

ZIMBABWE is ready to take advantage of the African Continental Free Trade Area (AfCFTA) with the country finalising the necessary processes to submit tariff offers to the Free Trade Area secretariat, the spokesperson in the Ministry of Foreign Affairs and International Trade, Mrs Constance Chemwayi, has said.

Despite adversities that included sanctions, droughts, Cyclone Idai, external debt and the Covid-19 pandemic, Zimbabwe is prepared to start trading under the AfCFTA, which came into operation this month.

“The country has already signed and ratified the agreement establishing the AfCFTA, affirming commitment to deepening integration and trade within Africa” she said.

As a key enabler in attaining an upper middle income economy by 2030, Zimbabwe has plans to boost the manufacturing industry and its export basket in terms of volume and variety.

Under its economic revival strategy, the manufacturing industry has a critical role to play in satisfying the local and export markets.

In order to operationalise the agreement, member states are required to submit tariff offers (schedule of tariff concessions), among other requirements. The schedule shows the preferential tariffs per year to be applied on imports coming from the African continent, with the aim of eventually eliminating the tariffs.

“Once the country submits the tariff offer and is subsequently gazetted, the potential benefits to the country include access to export and import markets at reduced preferential customs duties for products with agreed rules of origin from the African continent.

The preferential duties will be favourable as compared to the most favoured nation duties, which are payable by third parties (countries not party to the (AfCFTA).

Mrs Chemwayi added that the Government is working flat out to create a conducive environment for business to take advantage of the AfCFTA and other Trade Agreements that the country is signatory to. “It is worth noting that the exchange of tariff concessions between African countries (state parties) will be conditioned by the principle of reciprocity (other counterpart countries also offering the same) in terms of product line coverage and tariff reduction schedules that are aligned with the agreed modalities.

The modalities provide guidelines on how members prepare and implement their tariff commitments.-herald.clz.w