Concluding remarks by the Chairperson

This second Trade Policy Review of Zimbabwe has provided an opportunity to improve our understanding of recent economic, including trade, policy developments, and to identify areas in which there is room for improvement.  Our frank discussion has been stimulated by the full and open participation of the Zimbabwean delegation led by H.E. Pr. Welshman Ncube, Minister of Industry and Commerce, as well as by the perceptive remarks of the discussant, H.E. Dr. Anthony Mothae Maruping of Lesotho, and the active engagement of many Members.

Members commended Zimbabwe on its economic reform efforts, including its unilateral tariff liberalization, the upgrading of its computerized customs clearance system, the improvements in its intellectual property regime, its de facto adoption of the U.S. dollar as legal tender in 2009, and the introduction of more discipline into its fiscal system.  The reforms have enabled it to break its economic recession, which had lasted for nearly a decade. Zimbabwe’s potential to achieve rapid and sustained growth was acknowledged, and the challenges posed by high unemployment, and an external debt approaching unmanageable proportions were stressed.  Some Members pleaded for more assistance to help Zimbabwe address its supply-side constraints, mainly under a well-designed Aid for Trade programme.

Several Members voiced concerns about the legal protection of investments, in the light of Zimbabwe’s controversial land reform and its indigenization programme.  They noted the significant loss of competitiveness experienced by the economy over the past decade, and encouraged Zimbabwe to ensure a transparent and predictable business environment, including through further liberalization of its trade and investment regimes.

Members are of the view that there remain a number of areas where reforms would be beneficial to Zimbabwe and help promote international trade.  These include:

• Structural reforms:  Members encouraged Zimbabwe to pursue its structural reforms, including in the financial and tourism services subsectors, with a view to achieving its sustainable economic and social development.
• Tariff structure:  Members recommended Zimbabwe to simplify its tariff structure through conversion of non-ad valorem into ad valorem rates, and reduction of applied rates, with a view to complying with its binding commitments.
• Quantitative restrictions:  Members flagged various prohibitions, restrictions and licensing requirements maintained by Zimbabwe on a range of imports and exports, and encouraged it to rationalize its licensing system with a view to making it more transparent, as well as to eliminate the export ban on unprocessed chrome ore.
• SPS and TBT:  Several Members questioned the scientific basis for certain sanitary and phytosanitary measures imposed by Zimbabwe, suggested that the requirements be guided by a risk-based analysis, and called for further transparency in Zimbabwe’s SPS and TBT regimes, including through better compliance with notification obligations.
• Services:  Further liberalization of the services sector and improvement of commitments under the GATS were recommended as a way to help attract investment into the sector.
• RTA initiatives:  Some Members encouraged Zimbabwe to rationalize its membership to bilateral and regional trade agreements, with a view to simplifying its trade regime.

Members appreciated the responses provided by the delegation of Zimbabwe and looked forward to further responses.

Overall, this Review concludes to the need for Zimbabwe to improve its business environment by addressing governance issues and further liberalizing its trade regime, with a view to attracting foreign investment.  Enhancement of and full compliance with multilateral commitments would help by increasing the credibility of the regime and making it more predictable.  Trading partners could help Zimbabwe in its reform efforts by keeping their markets open to goods and services of interest to it and by being attentive to its requests for assistance.