Zimpapers Logo

Oliver Kazunga, Senior Business Reporter
ZIMBABWE’s eligibility to become a beneficiary of the Africa Growth and Opportunity Act (AGOA) is up for review this year, the United States State Department acting director, Mr Harry Sullivan, has said.

The US official said this to ZimTrade in a telephone interview on Monday. The US top official said the reforms promised by President Emmerson Mnangagwa under the new political dispensation would improve 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 former US president Mr Bill 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.

In its monthly newsletter, ZimTrade said 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 others.

ZimTrade acting chief executive officer Mr Norman Savado was quoted as saying the scope for improved trade with the US was huge for Zimbabwe.

“According to the Trade Map, in 2016 Zimbabwe exported a minimal $2 million to the United States of America. South Africa meanwhile managed $5.5 billion.

“Our shipments mostly comprised sculptures, jewellery and other art and decorative pieces,” said Mr Savado.

“In contrast, Zimbabwe imported $67.5 million worth 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.”

Mr Savado believes Zimbabwe is well placed to benefit from inclusion under AGOA.

“AGOA covers thousands of horticultural, leather and cotton products that Zimbabwe is already producing to a high standard.

“Inclusion would make Zimbabwean products more competitive as companies seek access to the USA’s $2.4 trillion import bill,” he said.

As an example, Mr Savado cited Zimbabwean oranges, which face a 1.49 percent tariff and leather, which faces a three percent tariff whereas South Africans can export these to America tariff free. At present, 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, North and South Sudan as well as Democratic Republic of Congo. — @okazunga.