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Zimbabwe looks into SA's secret export subsidies

16 Jan 1998 - by Staff reporter
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Govt sets up customs tariff commission Increasing domination of Zimbabwe's commercial and industrial sectors by South Africa is causing such concern that the government wants to take action. Protection for local industry is one of the main tasks of a customs tariff commission being set up by the government.

According to the trade and commerce ministry it will also have jurisdiction to investigate unfair trade practices with respect to the importation of goods and services and the sale of such goods and services and to make appropriate recommendations. Dumping is also to be investigated.

A Bill to set up the commission is before Parliament, providing for a maximum of 10 members, all appointed by the President.

Industrialists told FTW in Harare that the main target is South Africa, which is suspected of dumping and undercutting the market through secret state export subsidies. This is the latest expression of the hostility to South Africa, which reached a crescendo last year with allegations that motor vehicle batteries were being dumped on the local market. Countervailing duties were imposed, but local manufacturers complain that they were not high enough and that South Africa is still undercutting the market. The tariff commission will have to take care that the provisions of the recent trade agreement are not affected, which could lead to South Africa reacting in turn.

Zim's road privatisation programme gets going Main trunk routes targeted Privatisation of Zimbabwe's roads starts this month with tenders for investors to build dual carriageway toll roads.

Transport minister Enos Chikowore says domestic and international contractors will be sought to build roads under the Build Operate Transfer system. Routes targeted are the main trunk roads radiating from Harare plus others elsewhere in the rest of the country. Some, but not all, will have alternative routes for motorists who do not want to pay tolls.

The minister says the government does not have the money for maintenance and 4 300 km of trunk roads have deteriorated rapidly, 15% of which are more than 35 years old. Zim freight company must cough up R150 000 Zimbabwean Freight company Cargo Marketing has been ordered by the Supreme Court in Zimbabwe to pay about R150 000 plus interest backdated 2 1/2 years to a foreign company, Dynamic Freight, over unpaid debts. Dynamic Freight, owned partly by a German investor, had done business on behalf of Cargo Marketing and alleged that it had not been paid.

The interest to be paid is based on the rates ruling in Germany.

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