News / National
Mugabe acts tough on imports ban
10 Aug 2016 at 10:25hrs | Views
Zimbabwe has defended its controversial imports ban which it says will bring stability to its distressed manufacturing industries despite causing a rift with South Africa (SA).
The imports ban, invoked through Statutory Instrument (SI64) in June by government, is a subject of negotiations with South Africa whose economy has been seriously hurt by the restrictions which Zimbabwe's neighbour says violate regional trade protocols.
But addressing Zanu-PF supporters who were commemorating Heroes Day at the National Heroes Acre, yesterday, President Robert Mugabe said the ban was necessary to protect local factories.
"We recently gazetted Statutory Instrument 64 of 2016, which seeks to manage the importation of certain products, as a way of supporting and resuscitating local industry," Mugabe told supporters.
Mugabe said his government will not be cowed into lifting the ban as it was implemented to protect "local farmers" whose produce was being denied access in local shops due to the depreciation of the South African rand against the US dollar.
"Zvingachipa hazvo hongu…ko vedu vemuno votokanda pasi havo mapadza? Kuvabatsira ikoko? Hapana nyika pasi pano isingazvidzivirire. (SA commodities might be cheaper yes, but should our farmers stop producing? Is that helpful? There is no nation on earth that doesn't protect itself)."
He said that the country's manufacturing capacity, currently around 34 percent, was expected to remain stable due to the latest move.
The government imposed a ban on the importation of a number of basic consumer goods in June, saying this was an endeavour to not only reduce imports in the wake of worsening cash shortages, but also to stimulate local industry.
But the decision backfired spectacularly when deadly riots paralysed operations at Beitbridge Border Post early in July, with protesters burning a Zimra warehouse in the process.
Under SI64 of 2016, the government banned the importation of coffee creamers, Camphor creams, white petroleum jellies, body creams, baked beans, potato crisps, cereals, bottled water, mayonnaise, salad cream, peanut butter, jam, maheu, canned fruits and vegetables, pizza bases, yoghurts, flavoured milk, dairy juice blends, ice-creams, cultured milk and cheese, among other products.
A trade war is looming between the two countries after South Africa was miffed by Zimbabwe's imports ban on basic consumer goods which has hit its economy hard.
Last week, Industry and Commerce minister Mike Bimha had an uncomfortable meeting with his SA counterpart —Rob Davies — whose government has given Zimbabwe a two-week ultimatum to resolve the contentious issue.
Speaking to SA media, Davies said the two countries had to resolve their trade impasse before a Southern African Development Community (Sadc) meeting of trade ministers that is scheduled to take place in Botswana later this month.
"On August 24, there should be an agreement reached where there are a series of surcharges and additional tariff increases that were applicable to the export interests of SA," a diplomatic Davies said, adding that Zimbabwe should have followed proper Sadc protocols before effecting the ban.
Under Sadc protocols, which regulate inter-State trade, a member country is allowed to adopt protection measures provided it demonstrates that its industries are under distress.
"We believe that the coherence of the integrity of the regional trade agreement should be followed procedurally," Davies said further, also noting that SA has identified 112 out of 1 000 tariff lines that it did not believe Zimbabwe had the capacity to produce, and which it had asked its neighbour to rethink about and provide feedback.
Davies said Zimbabwe should have followed a process under the Sadc protocol that sets out procedural requirements before cutting trade ties.
"Should there be any variation in the application under those commitments, there should be an application to the council of the ministers of Trade," he said.
SA is Zimbabwe's biggest trade partner within Sadc and exports manufactured and agro-processed goods to its northern neighbour.
Should Zimbabwe do this, it would be able to work out a win-win solution with SA.
The imports ban, invoked through Statutory Instrument (SI64) in June by government, is a subject of negotiations with South Africa whose economy has been seriously hurt by the restrictions which Zimbabwe's neighbour says violate regional trade protocols.
But addressing Zanu-PF supporters who were commemorating Heroes Day at the National Heroes Acre, yesterday, President Robert Mugabe said the ban was necessary to protect local factories.
"We recently gazetted Statutory Instrument 64 of 2016, which seeks to manage the importation of certain products, as a way of supporting and resuscitating local industry," Mugabe told supporters.
Mugabe said his government will not be cowed into lifting the ban as it was implemented to protect "local farmers" whose produce was being denied access in local shops due to the depreciation of the South African rand against the US dollar.
"Zvingachipa hazvo hongu…ko vedu vemuno votokanda pasi havo mapadza? Kuvabatsira ikoko? Hapana nyika pasi pano isingazvidzivirire. (SA commodities might be cheaper yes, but should our farmers stop producing? Is that helpful? There is no nation on earth that doesn't protect itself)."
He said that the country's manufacturing capacity, currently around 34 percent, was expected to remain stable due to the latest move.
The government imposed a ban on the importation of a number of basic consumer goods in June, saying this was an endeavour to not only reduce imports in the wake of worsening cash shortages, but also to stimulate local industry.
But the decision backfired spectacularly when deadly riots paralysed operations at Beitbridge Border Post early in July, with protesters burning a Zimra warehouse in the process.
Under SI64 of 2016, the government banned the importation of coffee creamers, Camphor creams, white petroleum jellies, body creams, baked beans, potato crisps, cereals, bottled water, mayonnaise, salad cream, peanut butter, jam, maheu, canned fruits and vegetables, pizza bases, yoghurts, flavoured milk, dairy juice blends, ice-creams, cultured milk and cheese, among other products.
Last week, Industry and Commerce minister Mike Bimha had an uncomfortable meeting with his SA counterpart —Rob Davies — whose government has given Zimbabwe a two-week ultimatum to resolve the contentious issue.
Speaking to SA media, Davies said the two countries had to resolve their trade impasse before a Southern African Development Community (Sadc) meeting of trade ministers that is scheduled to take place in Botswana later this month.
"On August 24, there should be an agreement reached where there are a series of surcharges and additional tariff increases that were applicable to the export interests of SA," a diplomatic Davies said, adding that Zimbabwe should have followed proper Sadc protocols before effecting the ban.
Under Sadc protocols, which regulate inter-State trade, a member country is allowed to adopt protection measures provided it demonstrates that its industries are under distress.
"We believe that the coherence of the integrity of the regional trade agreement should be followed procedurally," Davies said further, also noting that SA has identified 112 out of 1 000 tariff lines that it did not believe Zimbabwe had the capacity to produce, and which it had asked its neighbour to rethink about and provide feedback.
Davies said Zimbabwe should have followed a process under the Sadc protocol that sets out procedural requirements before cutting trade ties.
"Should there be any variation in the application under those commitments, there should be an application to the council of the ministers of Trade," he said.
SA is Zimbabwe's biggest trade partner within Sadc and exports manufactured and agro-processed goods to its northern neighbour.
Should Zimbabwe do this, it would be able to work out a win-win solution with SA.
Source - dailynews
