Zambia Trade Agreements

LUSAKA, July 9 (Xinhua) — The Zambian government said Tuesday that the operationalization of the African Continental Free Trade Area (AfCFTA) is an important step in promoting trade and economic integration in sub-Saharan Africa. Zambia is open to foreign trade, which accounts for 75.7% of the country`s GDP (World Bank, 2018). Zambia`s trade policy is aimed at diversifying its economy through privatization programmes and the expansion of its export base. The country is a member of COMESA and has signed Interim Economic Partnership Agreements (Interim EPAs) with the European Commission. The country became a member of the WTO in 1995. Tariffs are high, but the country has few non-tariff barriers. Certain products such as crude oil, medical supplies and fertilizers are exempt from import duties. However, irregularities in the tax system and high transport costs are real barriers to trade. The country mainly exports copper and other minerals (about three-quarters of total exports), while petroleum products, copper, machinery and transport are the main imported products. Zambian products are based on Switzerland (42.1%), China (14.4%), the Democratic Republic of Congo (9.5%) and Singapore (7.7%), while the country mainly imports South Africa (28.8%), the Democratic Republic of Congo (14.7%), China (13.6%), the United Arab Emirates (6.3%), India (4.7%) and Kuwait (4.7%). Escalating trade tensions between the U.S.

and China could lead to lower demand and increased volatility in copper prices. Zambia`s downgraded trade balance is in surplus. In 2018, the trade surplus reached $514 million, up from $364 million the previous year (World Bank). In 2018, exports of goods amounted to $9.05 billion (+13% compared to 2017), while imports reached $9.46 billion (+19%). Exports of services reached USD 957 million (+11%), while imports amounted to USD 1.63 billion (+11%) (WTO). Weak demand is expected to help reduce imports, but the devaluation of the Kwacha will increase costs; while exports are expected to continue to be disadvantaged by low copper prices. He called on the AU to accelerate work on the remaining areas, including market access offers, negotiations on trade in services, competition, investment and intellectual property. Describes the bilateral and multilateral trade agreements in which this country participates, including with the United States. Contains websites and other resources where U.S.

companies can learn more about how to use these agreements. Zambia has duty-free and quota-free access to the EU market under the Everything But Arms (EBA) programme for least developed countries (ODPs). .