adminZimbabwe’s eligibility to become a beneficiary of the African Growth and Opportunity Act (AGOA) is up for review this year said US State Department acting director Harry Sullivan on Monday.
Speaking during a telephonic briefing, Sullivan expressed optimism that the reforms promised by the new dispensation being spearheaded by President Mnangagwa would improve the chances that a mid-year review of Zimbabwe’s eligibility could produce favourable results.
AGOA offers sub-Saharan African countries that meet certain criteria duty-free export concessions on more than 6,000 tariff lines. It was first introduced in 2000, when President Clinton signed off on 34 African countries as being eligible. Changes in a country’s status are made at the discretion of the US President.
Eligibility is determined by a country’s establishment, or continual progress towards creating a market-based and open business environment, combating corruption, eliminating barriers to US trade, and improving property rights, human rights, health care, and education, among other criteria. Norman Savado, Acting CEO of export promotion body, ZimTrade, says that the scope for improved trade with the US is huge for Zimbabwe.
“According to the Trade Map, in 2016 Zimbabwe exported a minimal $2 million to the USA. South Africa meanwhile managed $5,5 billion. Our shipments mostly comprised sculptures, jewellery and other art and decorative pieces. In contrast, Zimbabwe imported $67,5 million of goods from the USA – this included road tractors, data and laboratory machines, instruments and appliances, and human vaccines. Zimbabwe’s trade deficit with the USA was around $65,5 million in 2016,” he said. Savado believes that Zimbabwe is well placed to benefit from inclusion under AGOA.
“Inclusion would make Zimbabwean products more competitive as companies seek access to the USA’s US$2,4 trillion import bill,” he said.
By way of example, Savado cited Zimbabwean oranges which face a 1,49 percent tariff, and leather which faces a 3 percent tariff whereas South Africans can export these to America tariff free.
Currently, Zimbabwe is the only non-AGOA nation in SADC, and one of eight countries from sub-Saharan Africa’s 47 states that is ineligible. Others that are ineligible include Somalia, both North and South Sudan and the Democratic Republic of the Congo. – Wires
Online Reporter