Davies to meet with Zim counterpart to quell trade restrictions

2nd August 2016 By: Megan van Wyngaardt - Creamer Media Contributing Editor Online

Trade and Industry Minister Dr Rob Davies will on Thursday meet with Zimbabwe Minister of Industry and Commerce Mike Bimha to find an amicable resolution to the measures implemented by Zimbabwe on products of export interest to South Africa.

The neighbouring country in June banned the importation of goods from South Africa that were readily available in Zimbabwe. This included body products, buildersware, structures made from iron or steel, plastic pipes and fittings, flat-rolled products, furniture, textiles, food stuffs, tyres, fertilisers and other chemicals.

The move was meant to support the Zimbabwean economy, which has been in financial turmoil over the last decade.

The ban was followed by riots, particularly at the Beitbridge border post, after the Zimbabwe Revenue Authority demanded to see import permits.

The country introduced other trade restrictive measures, including surcharges, increases in import duties, requirements for import permits and other forms of restrictions that have negative implications on intraregional trade.

“These trade restrictions are necessary to support the development of local industries and to relieve the pressure of economic sanctions, which have led to balance of payments challenges,” the Zimbabwe government said at the time.

South Africa’s Department of Trade and Industry will now seek to ensure the measures comply with Zimbabwe's commitments under the World Trade Organisation and the Southern African Development Community Protocol on Trade.

The Ministers will, in their discussions, take into account Zimbabwe’s industrial development and balance of payments challenges.

This meeting follows previous bilateral engagements held between the Ministers in recent months.