Trade Agreement Between South Africa And Zimbabwe

Products such as dairy products, potatoes, birds and eggs benefit from a duty-free regime or a preferential tariff quota. Certain types of fabrics, such as cotton, are subject to reduced duty rates if they meet the declared quantities of Zimbabwean content: 75% in most cases. The latest version of the agreement was signed in August 1996, when tariffs and quotas for textile imports into South Africa were reduced. He added that the problem lies in the fact that, although there are suppliers of some substances in the region, these are not sufficient to meet the requirements of all manufacturers in quantity and in kind. The loss of the bilateral agreement would therefore severely limit the ability of several apparel manufacturers to export to South Africa. The impact on the sector will be considerable, as South Africa has always opposed the liberalisation of rules of origin for the Sadc trade protocol. The bilateral trade agreement had preferential conditions for sadc, which requires clothing to be made from regional fabrics in order to allow preferential access,» Youmans said. Describes the bilateral and multilateral trade agreements in which this country participates, including with the United States. Contains websites and other resources for U.S. companies to get more information on how to use these agreements. The aim is to promote and boost trade between Zimbabwe and South Africa by removing tariffs and other non-tariff barriers. In 2016, Zimbabwe banned a series of South African imports under Statutory Instrument 64.

While the Sadc Trade Protocol is comprehensive for South Africa, Zimbabwe could lose its preferred access to Pretoria. The bilateral trade agreement favours Zimbabwean exports of clothing and textiles due to the relaxation of the rules of origin of the «single processing» compared to the «double transformation» of the Sadc Trade Protocol on Trade. The Zimbabwe Clothing Manufacturers` Association (ZCMA) has called on Zimbabwe and South Africa to reconsider the bilateral trade agreement between the two countries. Jeremy Youmans, president of ZCMA, however, said the problem remained to be solved. He added that ZCMA is taking care of this with the Ministry of Foreign Affairs and International Trade and the Ministry of Industry and Trade. In November 2017, South Africa resigned a year in advance to end the 1964 pact and opt for the Southern African Development Community (SADC) trade protocol. Under sadc`s double transformation rule, the substance must be produced in Zimbabwe or within sadc. Zimbabwe also officially joined the African Continental Free Trade Area (AfCFTA) in February 2020, which aims to create a continental domestic market for goods and services, which will ultimately lead to the creation of a customs union. .

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