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Zimbabwe needs to engage the Asian market to remove trade barriers and diversify their export base reducing reliance on the European Union and the United Sates, an official said yesterday. Deputy Governor of the Reserve Bank of Zimbabwe Dr Khupukile Mlambo said Africa, and Zimbabwe in particular, has been concentrating on trade with the EU and US sidelining a more lucrative destination for their products in Asia.
“We say China’s economy is slowing down but if you are slowing down at 7 percent you are still growing. As a continent, the thing we have not done is engage these emerging economies at the WTO level. We engage the EU and the US a lot on subsidies and (removal of trade) barriers and so on. But the trade barriers that we face from Asia, we are not addressing them. So we need to engage them at a civil society level, as Africa, on opening up those economies to our exports. We need to diversify our export markets.”
He said while there is an Africa rising story, Zimbabwe’s economy has not been responding and this should be addressed as soon as possible.
Government last year ratified the interim Economic Partnership Agreement with the EU, which gives Zimbabwe access to export its products to countries in the bloc duty and quota free if they meet the its quality standards. Despite maintaining strong trade linkages with Europe, the country’s trade with Asia especially China, has been growing at a much faster rate.
Mlambo said focusing on exports would drive government revenues since there is no fiscal space to widen the tax base – BH24.
Online Reporter