admin
Zvamaida Murwira Senior Reporter
A Government official says South Africa is practising double standards in its approach to a bilateral trade agreement between the two countries.
Industry and Commerce Deputy Minister Chiratidzo Mabuwa said South Africa had unilaterally suspended the trade agreement, but still used it to facilitate textiles and edible oils exports to Zimbabwe.
Deputy Minister Mabuwa said South Africa insisted on recognition of the Sadc Trade Protocol, which was too stringent for Zimbabwe’s clothing industry, but also referred to the bilateral trade agreement when it suited them.
Deputy Minister Mabuwa said this in the National Assembly on Wednesday while responding to a question from Chegutu East MP Cde Dexter Nduna (Zanu-PF) on what Government was doing to resuscitate David Whitehead, a once thriving textiles company located near Kadoma.
Deputy Minister Mabuwa said in 2010 South Africa unilaterally revoked the bilateral trade agreement, impacting negatively on the local clothing sector which was exporting to South Africa on a duty-free quota.
“South Africa, on the other hand, is also using the bilateral trade agreement when it suits them when exporting their clothing and edible oils, which do not meet the SADC rules of origin into Zimbabwe. This is why you saw that the Minister of Finance and Economic Development (Patrick Chinamasa) table the Budget which sets aside this bilateral trade agreement all together, because it was being applied by South Africa when it was favourable to them,” said Deputy Minister Mabuwa.
She said the Sadc Trade Protocol was too stringent on the rules of origin.
“For textile products to qualify, they have to go through double staged transformation, that is two stages of manufacturing or processing which would materially change the characteristics of the product of which our companies cannot meet that originating criteria at the moment,” she said.
Deputy Minister Mabuwa said Government did not favour liquidation of David Whitehead because this would make people jobless.
“I want to put it on record that as Government, we do not own but only play a facilitative role in industrial development and hence our powers are limited in such a scenario.
“In this case we are encouraging the company to look for investors and so far we have investors who are showing interest in the company,” she said.
Online Reporter