The ManicaPost
Zimbabwe is to apply for a derogation from the SADC Council of Ministers of Trade (CMT), following the implementation of Statutory Instrument 64, which restricts listed imports.Briefing the media after the meeting with Minister of Industry and Commerce, Mike Bimha, South Africa’s Minister of Trade and Industry, Rob Davies, said the ministers met to find a resolution for the measures undertaken by the Zimbabwean government regarding imports from South Africa.
“We got a pretty comprehensive briefing on challenges Zimbabwe is facing and there was an agreement on both sides that we must follow the procedures of the SADC protocol,” Minister Davies told Fin24.
The SADC protocol has been enforced since 2008. There is a process under the protocol which allows for the CMT to consider and agree on a derogation on commitments, he explained.
At the last CMT meeting in Botswana, it was agreed that another meeting will be held, ahead of the SADC Summit in Swaziland.
South Africa is concerned about the implementation of trade-restrictive measures by Zimbabwe, explained Xolelwa Mlumbi, deputy director general at the International Trade and Economic Development Division.
This includes surcharges implemented on some of South Africa’s export products, due to the challenges the Zimbabwean economy is facing, explained Davies. “This is not just imports from South Africa, but South Africa is Zimbabwe’s largest trading partner,” he said.
Surcharges on products include agro-processing products and some chemical lines. Zimbabwe has implemented these charges to protect its local industry.
Tariff increases were also applied to 1000 product lines, some of these were of particular export interest to South Africa, explained Davies.
He said South Africa identified 112 lines, that they believe Zimbabwe does not have production capacity for.
South Africa wants Zimbabwe to review surcharges on those lines. “We were supposed to receive a response on 30 June, and we did not get a response today,” said Minister Davies.
Getting the response is essential for South Africa to support a possible derogation.
“They (Zimbabwe)understood that and undertook their best to make sure we get the information on time,” he said.
Under Statutory Instrument 64, imports for certain products will not be allowed. If there is a shortage of products, exporters can apply for a trade permit, which is time bound.
“We want a greater understanding of rules, when and where potential suppliers can use the mechanism for permits,” said Minister Davies.
“If the Zimbabwean economy is in trouble, South Africa will feel the effects of that in a number of ways,” he said. – Fin24
