Sharon Chigeza
MUTARE – In a recent address, the Minister of Industry and Commerce, Mangaliso Ndhlovu emphasised the importance of trade defence instruments as vital tools for safeguarding Zimbabwe’s emerging domestic industries against unfair trade practices.
Speaking at the third annual national trade tariff conference held in Mutare, Minister Ndhlovu outlined the need for a strategic approach that balances protectionism with competition to foster innovation while protecting local producers.
“Trade defence instruments, such as anti-dumping measures and countervailing duties, remain one of the most powerful tools that can enable us to safeguard our nascent industries from unfair trade practices such as dumping and subsidies. This is particularly so because these instruments are aligned with international best practices and are governed by the World Trade Organisation (WTO). By employing these tools we can create a level playing field for local manufacturers to compete with imports while complying with global trade regulations,” Minister Ndhlovu stated.
He said the instruments were essential in creating a fair playing field for Zimbabwean businesses, which face intense competition from imported goods that may be subsidised or sold below market value.
However, the Minister cautioned against excessive protectionism, which could stifle competition and innovation.
“It is always imperative to strike a delicate balance between protectionism and competition and avoid the risk of stifling innovation and discouraging optimal efficiencies by firms. It is critical that as Government, we use tariffs as a tool to incentivise local production, encourage businesses to invest in research and development, adopt advanced technologies and create high end valued products,” he added.
Minister Ndhlovu also pointed out that Zimbabwe is strategically positioned within a vibrant and dynamic region, which presents significant opportunities for economic growth.
He referenced a 2023 World Bank report indicating that Zimbabwe is poised to be the second-best beneficiary of the African Continental Free Trade Area (AfCFTA), following Côte d’Ivoire.
“Our nation is an integral part of a vibrant and dynamic region. We are a member and signatory to various regional trade agreements noatably, COMESA,SADC, COMESA-EAC-SADC Tripartite Agreement and the African Continental Free Trade Area (AfCFTA).
“As we prepare ourselves and strategically moving towards implementing the AfCFTA provisions under the Guided Trade Initiative pilot programme, Zimbabwe can stand better chances as a major player in the African economy as evidenced by the 2023 World Bank report, which shows that Zimbabwe is likely to be the second best beneficiary after Cote d’Ivoire under AfCFTA,” he said.
For Zimbabwe to fully capitalise on its potential within the AfCFTA framework, Minister Ndhlovu stressed the importance of simplifying the country’s tariff structure and implementing necessary tariff reductions as outlined in the AfCFTA agreement.
However, Ndhlovu acknowledged the challenges that accompany such trade liberalisation, particularly the risks of increased imports and unfair trade practices.
“The thrust of the various trade agreements is to fully operationalise the Free Trade Area and this entails the elimination of tariff barriers on the majority of tradeable goods. However, it comes with negative impacts of unfair trade practices and surges in imports as a result of the opening up of our borders.
“It is in such instances that the Government will be considering some viable trade instrument options that can be adopted by our local industry without reneging on our regional trade obligations and commitments,” he said.
The adoption of anti-dumping measures, countervailing duties, and safeguard duties is crucial for protecting local industries from the surges in imports that could arise from free trade agreements.
“These instruments will serve as our primary means of ensuring that our industries can compete effectively and sustainably,” Ndhlovu asserted.
Moreover, Minister Ndhlovu called on the commercial sector to actively engage with the Government in developing and implementing these trade defence mechanisms.
“I challenge the CTC to come up with a capacitation programme for different stakeholders including MDA’s so that we fully appreciate the potential that lies in trade defence mechanisms,” he said.
As Zimbabwe navigates the complexities of regional trade agreements and seeks to enhance its economic landscape, Ndhlovu’s message resonates with the need for a collaborative approach. He urged stakeholders to work together to strengthen local industries and to ensure that Zimbabwe remains competitive in the African economy.
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