adminZimbabwe last month ratified the IEPA which the EU signed with developing countries to allow duty free movement of goods.
Under the agreement, the country will be required to open its trade by 80 percent over the next 15 years while it will have preferential access to EU markets for its exports.
Products covered under the agreement include capital goods, intermediary goods and finished products. Twenty percent of trade will remain closed and products excluded under the EPA included motor vehicles, live animals and meat, edible products of animal fat, beverages, plastics, consumer electronics and textile clothing.
However, Dr Tekere told delegates attending the Zimbabwe National Chamber of Commerce annual congress that he was surprised that some goods which posed no threat to local industry had been included on the list of closed goods.
Dr Tekere said allowing 80 percent of goods to enter the country duty free would affect local industries.
“Developing countries are being forced to open up 80 percent of their trade. This is too high considering the distressed economy,” he said.
But he said the benefits of the IEPA outweighed the disadvantages.
He said if the country had been left out, it would have meant its exports to the EU, chiefly agricultural products would attract heavy duties which makes them uncompetitive. He said apart from signing the IEPA, the only other way the country could have accessed the EU markets competitively was by declaring itself a Least Developed Country, which he said the Government was opposed to.
He said the EU actually did not want Zimbabwe in the IEPA for political reasons.
He said by joining the agreement, Zimbabwe had reduced the effects of sanctions.
“The EPA prevented trade disruption at a time when the EU was not eager to do business with Zimbabwe. It has reduced the effects of sanctions,” he said.
He also said there were mechanisms that the country could operationalise to prevent dumping to protect local industry.
Industry and Trade Minister Professor Welshman Ncube said EPAs were controversial but the Government had no choice but to sign the agreement.
He said as a country under sanctions, not signing the EPA would have worsened the situation in the country.
“How do you avoid the full effects of sanctions when you have isolated yourself,” he asked.
Online Reporter