Trade Agreement Between South Africa And Zimbabwe

It describes the bilateral and multilateral trade agreements to which that country belongs, including with the United States. Includes websites and other resources that allow U.S. companies to get more information about how they can use these agreements. The impact on the industry will be considerable, as South Africa has always opposed the liberalisation of the rules of origin of the Sadc trade protocol. The bilateral trade agreement had preferential conditions for Sadc, which requires clothing to be made from regional structures to allow preferential access,” Youmans said. Products such as dairy products, potatoes, birds and eggs are subject to a duty-free regime or preferential tariff quota. Certain types of fabrics, such as cotton. B, are subject to concessional tariffs when they meet the declared values of the Zimbabwean content: 75% in most cases. The last version of the agreement was signed in August 1996, when tariffs and quotas for textile imports into South Africa were reduced.

The aim is to promote and stimulate trade between Zimbabwe and South Africa by removing tariffs and other non-tariff barriers. He added that the problem was that, although there are suppliers of certain substances in the region, they are not sufficient to meet the requirements of all producers in quantities and substances. The loss of the bilateral agreement would therefore severely limit the export opportunities of several garment manufacturers to South Africa. In 2016, Zimbabwe banned a series of South African imports under Status 64. Thus, while Sadc`s trade protocol is comprehensive for South Africa, Zimbabwe could lose preferential access to Pretoria. The bilateral trade agreement favours Zimbabwean exports of clothing and textiles due to the relaxation of the rules of origin for “uniform transformation” from the “double transformation” of Sadc`s trade protocol on trade. The Zimbabwe Clothing Manufacturers` Association (ZCMA) has asked Zimbabwe and South Africa to reconsider the bilateral trade agreement between the two countries. In November 2017, South Africa gave a one-year deadline to end the 1964 Pact for the Southern African Development Community (Sadc) Trade Protocol. In February 2020, Zimbabwe also officially joined the Continental Free Trade Area (AfCFTA), which aims to create a single continental market for goods and services, which will eventually lead to the creation of a customs union.

According to Sadc`s double-processing rule, the substance must be produced in Zimbabwe or Sadc. However, Jeremy Youmans, president of ZCMA, said the problem had not yet been resolved. He added that ZCMA took on this responsibility with the Ministry of Foreign Affairs and International Trade and the Ministry of Industry and Trade.