Concluding remarks by the Chairperson

This third Trade Policy Review of Zimbabwe has offered us a good opportunity to deepen our understanding of recent developments in, and challenges to, its trade, economic, and investment policies. We owe this to the great flexibility shown by the Zimbabwean delegation headed by Deputy Minister of Foreign Affairs and International Trade, H.E. Dr. David MASABAYANA, who participated from Harare. Indeed, by agreeing to hold this TPR in a hybrid format, despite the constraints to full in-person meetings imposed by COVID-19, the delegation has demonstrated the high importance Zimbabwe attaches to the Trade Policy Review Mechanism as a transparency exercise. We greatly appreciate its efforts.

I would also like to thank our discussant, H.E. Ambassador Ms. Xolelwa MLUMBI-PETER, Permanent Representative of South Africa to the WTO, for her enlightening statement, and the WTO Secretariat and the 21 delegations that took the floor during the first day for their valuable contributions to this Review.

Members welcomed Zimbabwe's commitment to undertake economic reforms aimed at macroeconomic stability and addressing structural issues. They deplored the COVID-19 pandemic that is exacerbating the severe impact Cyclone Idai has recently had on the Southern African region, including Zimbabwe, and encouraged the latter to continue to pursue its reform agenda perceived as the most appropriate approach to stabilize its economy. Members commended Zimbabwe's efforts to stabilize its currency, noting that the forex regime should not act as a disincentive for investors and exporters. Accordingly, they welcomed the introduction of a weekly forex auction by the Reserve Bank of Zimbabwe in June 2020, and they sought information regarding further measures to ensure that the forex market operates in an open and transparent manner. This could contribute to bringing down inflation from its currently high levels, and improving the business environment, in particular for SMEs, and the balance-of-payments. Several Members called on Zimbabwe to reduce state‑ownership, to improve the governance of state-owned enterprises, and to further tackle corruption.

Zimbabwe's repeal of its “indigenization” provisions was appreciated, bringing an end to the 49% foreign ownership cap in all sectors. Some Members raised questions regarding measures to dismantle remaining investment restrictions, ensure investment protection and repatriation of dividends, and to eliminate remaining provisions prescribing the degree of export orientation of investment proposals. They urged Zimbabwe to address its outstanding land issue.

Zimbabwe's ratification of the TFA was praised and the country was encouraged to take appropriate measures to align its regimes to the relevant provisions of the agreement. Several delegations commended Zimbabwe on its active participation in trade negotiations, including the AfCFTA and the Tripartite Free Trade Area between COMESA, EAC and SADC, in addition to concluding an EPA with the European Union.

Members urged Zimbabwe to address a number of trade concerns, including: its MFN tariff rates that exceed the bound levels on some products; the 25% surtax levied on many products despite its binding of Other Duties and Charges at 15%; its quantitative restrictions and complex non‑automatic import licensing regime; some SPS requirements; and its new Consignment-Based Conformity Assessment system for a range of products. It was suggested that removing these non‑tariff barriers could help reverse the decline in the ratio of trade in goods and services to GDP by increasing Zimbabwe's participation in global trade. In this regard, Members highlighted the success of a web‑based facility in allowing stakeholders to report and solve trade concerns.

Several Members praised Zimbabwe for the efforts to modernize its government procurement regime and for the establishment of its new procurement regulatory authority. On intellectual property rights, Members noted the increase in trademark applications and expressed interest in Zimbabwe's National Intellectual Property Policy and Implementation Strategy 2018-22. 

Turning to sectoral policies, several Members suggested ways to address the country's energy crisis, recommending duty-free imports of solar equipment with the view to encouraging investment in renewable energy. Zimbabwe was also encouraged to digitize mining licences; to seek sustainable investment in raw materials extraction, particularly in the diamond, platinum, graphite, lithium and cobalt sectors; and to join the Extractive Industry Transparency Initiative.

In agriculture, several Members called for a reduction in government intervention and inquired about the functioning of the Grain Marketing Board, the “Command Agriculture” domestic support programme, and the new Climate Smart Agriculture programme.  Further clarification was sought regarding Zimbabwe's import licensing procedures for agricultural products, and its regime for the sale and use of GMOs and GMO products.  

The Zimbabwean delegation reiterated its commitment to the multilateral trading system and announced that the country was in the process of domesticating the WTO Agreement. The ratification of the Protocol Amending the TRIPS Agreement was also underway. Members reminded Zimbabwe of its transparency obligations in the WTO and invited it to reduce the backlog of outstanding WTO notifications, including on domestic support in agriculture, SPS and TBT, import licensing procedures, safeguards, customs valuation and RTAs. The Zimbabwean delegation also called for the elimination of international sanctions.

In closing, I hope that the Zimbabwean delegation will take into account and further reflect on these issues and on the many constructive comments that it has received during this Review. Zimbabwe has provided replies to the 189 advance written questions raised by Members. As noted by Members, there is ample scope to expand assistance to help Zimbabwe on the path of reform and economic recovery, notably through its further participation in the multilateral trading system. I wish to thank again the Zimbabwean delegation for its commitment to this exercise and all delegations that participated for their constructive feedback, despite the difficult circumstances. Members look forward to receiving the answers from Zimbabwe to all outstanding follow-up questions within one month, at which point the Review will be successfully concluded.