86pc agree on rules of origin

20 Jun, 2021 - 00:06 0 Views
86pc agree on rules of origin

The Sunday News

Judith Phiri, Business Reporter
A total 86 percent of tariff lines for the protocol on trade in goods have agreed on the rules of origin (RoO) under the African Continental Free Trade Area (AfCFTA) framework and the outstanding rules of origin are expected to be agreed on by end of the month, an official has said.

For trade to happen under the framework of the AfCFTA, and as part of the broader legal processes around the implementation of the relevant legislation, the parties to the agreement must agree on and implement the legal provisions covering rules of origin and tariff schedules (and details around tariff reductions).

In an online presentation on unpacking the AfCFTA for businesses in Zimbabwe, an overview of the Zimbabwe national AfCFTA strategy won Thursday last week, United Nations Economic Commission for Africa economic affairs officer, Ms Jane Karonga said under the AfCFTA framework 86 percent of the tariff lines had agreed on the rules of origins.

“86 percent of the tariff lines have agreed on the rules of origins and the outstanding are expected to be agreed to by end of June. 41 states have submitted initial schedules of tariff concessions. As with all rules of origin negotiations, tension will continue to evolve around different nations’ industrial and economic policies and objectives, and the perceived needs of incumbent economic operators,” she said in a training workshop on AfCFTA.

Ms Karonga said in terms of the phase II of the AfCFTA framework which will cover investment, intellectual property rights and competition policy the initial deadlines for conclusion of the negotiations was set for December. However, member states were asking for an extension.

She said the African Union assembly gave member states a mandate to negotiate a protocol on e-commerce which is phase III of the AfCFTA framework, an indicative deadline of end of the year, but negotiations had not yet started.

Ms Karonga said under the Zimbabwe national AfCFTA strategy and economic recovery, the country had identified manufacturing as a strategic sector targeted to drive economic transformation.

“Deliberate actions must be taken to promote private sector engagement to facilitate the development of productive capacities. The national strategy identifies priority goods and services sub-sectors which have comparative advantages.”

Ms Karonga said the strategy drew its inspiration from the national vision 2030 of the attainment of an upper middle-income status and was aligned to various national policies being implemented by Government.

She said some of the objectives included developing a cohesive and efficient common national approach to continental and regional integration; enhancing trade facilitation and the business environment.

“In terms of trade in goods some of the priority sectors for enhanced value addition and export include dairy, horticulture, vegetables, fruit and nuts, cane sugar, cotton, textile and garments, leathers, hides and skins, wood and furniture among others. These can be implemented in short or medium timeframes,” said Ms Karonga.

She said minerals beneficiation and value addition included iron and steel, platinum, lithium and jewellery on a medium to long term basis.

Ms Karonga said other priority sectors include pharmaceuticals and medicinal chemical products, packaging, basic chemicals fertilisers, nitrogen compounds and agricultural chemicals, engineering and metal fabrication in given timeframes of short to medium.

In terms of trade in services, the priority sectors for enhanced exports and investment included tourism services, events and meetings industry, transport services, education services and energy and related services.

“Also included are construction and engineering services, financial services, medical services, business and professional services and ICT which are key. There are vast opportunities for technological advancement that can be utilised,” she said.

She said existing regional preferential trading arrangements were not being full utilised and many unexploited trade opportunities existed in Sadc, Comesa and Tripartite.

“There are high vulnerabilities and risks associated with heavy dependence of Zimbabwe on South Africa for trade and investment.”

The training workshop on AfCFTA was conducted by the Zimbabwe National Chamber of Commerce (ZNCC) in conjunction with the United Nations Development Programme (UNDP).

AfCFTA is an ambitious undertaking that brings together 1,3 billion people in 55 African countries to create the world’s largest free trade area as measured by the number of participating Member States. On final conclusion and implementation, its objective is the creation of an integrated market for the trade in goods and services and the free movement of people and capital.

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