Zimbabwe to review trade pact with South Africa

ZIMBABWE will review its trade agreements with regional countries, particularly South Africa, amid concerns in Government and industry that some third party products from that country are entering Zimbabwe under the guise of Sadc rules of origin.

Industry and Commerce Deputy Minister Chiratidzo Mabuwa told Members of Parliament in Victoria Falls that the country will review trade rules with regional partners with emphasis on South Africa due to abuse of the Sadc rules of origin trade pact.

Mrs Mabuwa said that some South African companies were receiving cheap products from Asia and were then putting South African trade marks before exporting to Zimbabwe.

The South African companies are reportedly doing so taking advantage of the Sadc rules of origin, which exempt products wholly made in the region from paying duty.

Preferential treatment is conferred on goods from particular countries, which have fulfilled certain criteria.

To obtain preferential origin goods should be wholly obtained or have undergone sufficient transformation in the manufacturing processes.

Preferential origin under Sadc confers certain tariff benefits (entry at a reduced or zero rate) on goods traded between the regional body's member countries.

In order to have preferential origin goods must fulfill relevant conditions laid down in the Sadc protocol on rules of origin to avoid abuse such as including third part products.