Bilateral Trade Agreements
Zimbabwe currently has five (5) preferential bilateral trade agreements under which exporters can benefit. These are: Zimbabwe - Botswana: Ratified in 1988, reciprocal duty free trade on all products grown, wholly produced, or manufactured wholly or partly from imported inputs subject to a 25 percent local content requirements. Zimbabwe - Namibia : A reciprocal agreement in effect since 1992, subject to rules of origin which require at least 25 percent local content for manufactured goods and that Zimbabwe and Namibia should, as exporters, be the last place of substantial manufacturing. Other eligible products include mineral and vegetable products, live animals and their products. Zimbabwe - Malawi : Implemented in 1995, this is a reciprocal trade agreement, with 25 percent domestic value added requirements. Arrangements are characterized by implementation problems, in particular with regards to rules of origin, and no dispute settlement mechanism. As of 2002 it was under re-negotiation. Zimbabwe - South Africa: A duty free regime or preferential tariff quota applies to items including dairy products, potatoes, birds, eggs. Specified types of woven fabric, for example cotton, are subject to concessional tariff rates when they meet the specified levels of Zimbabwean content: 75 percent in most cases. Most recent version of the agreement was signed in August 1996 at which time the tariffs and quotas on textile imports into South Africa were lowered. Zimbabwe - Mozambique: Signed in January 2004, this agreement become operational on March 1 2005. Its objective is to eliminate tariff and non-tariff barriers and also to cooperate in customs and trade promotion. The agreement provides for duty free trade between the two members with the rules of origin specifying a 25 percent domestic value added. Excluded from the arrangement are refined and unrefined sugar, Coca-Cola/Schweppes soft drinks, firearms, ammunition and explosives, motor vehicles and cigarettes. All these Agreements have the same purpose and offer the same benefits under the same qualifying criteria. They aim to encourage and stimulate trade between Zimbabwe and the cooperating partner through the elimination of tariffs and other non-tariff barriers to trade. The agreement allows the Zimbabwean buyer/importer to purchase goods from the signatory country without paying import duty ( or paying a small agreed duty rate) as long as the goods in question qualify under the terms of the agreement and are registered as such with the relevant authorities. (ZIMRA)
| 
