Zambia’s active participation in the 14 countries regional Southern Africa Development Community (SADC) Trade Protocol as well as the Common Market for Eastern and Southern Africa (COMESA) with twenty members, offers preferential tariff access to a total market potential of nearly 380 million people. Similarly, with the advent of the Africa Growth and Opportunity Act (AGOA) duty free access to the huge USA market has become a reality.

AGOA-Africa Growth and Opportunity Act

This Act provides trade preferences for quota and duty-free entry into the United States for certain goods. Notably, AGOA expanded market access for textile and apparel goods into the United States for eligible countries. Some AGOA countries have begun to export new products to the United States, such as cut flowers, horticultural products, automotives and steel. Initially, AGOA was set to expire in 2008. In 2004, the United States Congress passed the AGOA Acceleration Act of 2004, which extended the legislation to 2015. The Act’s apparel special provision, which permits lesser-developed countries to send foreign fabric for their garment exports, was to expire in September 2007. However, the legislation passed by Congress in December 2006 extended it through 2012.

Contonou Agreement

The Continou Agreement provides for reciprocal trade agreements, meaning that not only the European Union (EU) provides duty-free access to its markets for African, Caribbean and Pacific Nations (ACP) exports, but ACP countries also provide duty-free access to their own markets for EU exports.

True to the Continou principle of differentiation, however, not all ACP countries have to open their markets to EU products after 2008. The group of least developed countries is able to either continue cooperation of non-reciprocal trade preferences or the “Everything But Arms” regulation.

Zambia is also a signatory to the Continou Agreement, which aims to achieve free trade arrangements between the EU and the ACP regional groupings.

EBA- Everything But Arms

Everything But Arms (EBA) is an initiative of the European Union under which all imports to the EU from the Least Developed Countries are duty free and quota free, with the exception of armaments. EBA entered into force on 5 March2001. There are transitional arrangements for bananas, sugar and rice until January 2006, July 2009 and September 2009 respectively.

COMESA- Common Market for Eastern and Southern Africa

COMESA was founded in 1994 to replace the former Preferential Trade Area (PTA) and forms a formidable market (both external and internal trading) with over 20 member states with a population of more than 374 million and an annual import bill of around USD 32 billion. COMESA member states are; Angola, Burundi, Congo DR, Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Malawi and Madagascar. Other members are Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe.

SADC- Southern Africa Development Community

SADC was formed with the objective of building a region of high levels of harmonisation and rationalisation that enable pooling of resources to achieve self reliance and ultimately improve the living standard and quality of people in this region. SADC member states include Angola, Botswana, Congo DR, Lesotho, Madagascar, Mauritius, Malawi, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia as well as Zimbabwe.

Zambia’s membership to regional organisations such as COMESA and SADC has buoyed the country’s export market. Zambia’s participation in international trade has also boosted the country’s competitiveness in global trade. Currently the European Union countries, China, South Africa, Democratic Republic of Congo, Kuwait, United Arab Emirates, India, Japan and the USA remain Zambia’s major trading partners. Although Zambia is a landlocked country, it has easy access to the sea ports of Durban in South Africa, Dar-es-salaam in Tanzania and Walvis Bay in Namibia.