The Sunday News
ZIMBABWE is engaging South Africa over the imposition of a non-tariff barrier that the country has imposed on local pharmaceutical exports to South Africa, a situation industrialists said was crippling efforts to boost trade.
South African authorities are demanding that all pharmaceutical or medicinal products destined to their country be freighted by airplanes, a situation which has made local manufacturers exporting to the neighbouring country to bear the brunt of paying more costs to ship their consignments.
Zimbabwe is also arguing that it is receiving some pharmaceutical products from South Africa by road hence the neighbouring country must also accept products which come by road.
Finance and Economic Development Minister Patrick Chinamasa said Government was engaging South Africa over the issues after the sector complained that their consignments were being turned way at the border if they are exported by road.
“The pharmaceutical industry has raised an issue, which is under active consideration between South Africa and Zimbabwe with respect to exports of certain medicines into South Africa where the South African authorities insist that we must transport our exports via air whereas we do allow their imports by road. So it’s an issue that was raised during a state visit by the South African Minister of Finance and we are strongly considering this to be reviewed,” Min Chinamasa said.
Confederation of Zimbabwe Industries president Mr Busisa Moyo lamented the stance by the South African authorities citing that it defeated the purpose of fair trade.
“The position being taken by South African authorities is unfair, it has created a non-tariff barrier and we are saying there should be a level playing field. If we are allowing their pharmaceutical products to enter our country by road then South Africa should allow ours to get there by the same means,” Mr Moyo said.
A non-tariff barrier is a form of restrictive trade where barriers to trade are set up and take a form other than a tariff. Non-tariff barriers include quotas, levies, embargoes, sanctions and other restrictions, and are frequently used by large and developed economies.
“Their restrictions are even bigger. They only want OR Tambo to be the only port of entry not any other airport. This has subjected our local companies to incur expenses, which come with freighting goods using air. Clearing of the cargo at the airport is also a cumbersome process,” Mr Moyo said.
During his state visit to Botswana in May, President Mugabe also touched and was quoted by foreign media as having said the move by the South African authorities of demanding pharmaceuticals to reach their country by air was against free trade principles.
“For example, pharmaceuticals, we produce some drugs, and they are in demand. We want to send them to SA then those officials in tradeth say we will only receive them if they come by air. We say no it is much more costly to send them to SA by air, we have planes, yes, but the planes are expensive, we can send them by road, they say no. You see, that is contrary to our free trade principles, there are lots of things we still have to discuss among us,” he said.
Efforts to get a comment from the Pharmaceutical Manufacturers’ Association of Zimbabwe’s chairperson, Mr Emmanuel Mujuru were futile by the time of going to print.
However, one of the country’s leading pharmaceutical manufacturers and distributors, Datlabs managing director Mr Todd Moyo said the non-tariff barrier stance by the South African authorities had a negative impact on the country’s pharmaceutical industry.
“At the moment we are not exporting any pharmaceutical products into South Africa but the South African position has a bearing on the activities of some of our members in the Pharmaceutical Manufacturers’ Association (PMA) who are exporting to South Africa,” Mr Moyo said.
