WORLD TRADE WT/LDC/HL/12/Add.12
27October 1997
ORGANIZATION(97-4689)
High-Level Meeting onIntegrated Initiatives for
Least-Developed Countries 'Trade Development
COUNTRY-SPECIFIC ROUND TABLES: DOCUMENTATION
Zambia
Addendum
Documentation fortheRound Table Meeting forZambia.WT/LDC/HL/12/Add.12
Page2
CHECKLIST FOR CONDUCTING TRADE-RELATED
TECHNICAL COOPERATION NEEDS ASSESSMENT
A. Trade Policy
(a) What arethesectors thatyoubelieve haveunexploited orunderexploited export potential?
- Agricultural sector
Zambia hasvastlandandwater sources thatcould beusedforexport production. Ithasa
lotofpotential inagricultural export bothwithin theregion andbeyond which hastoalarge extent
remained unexploited.
- Mining sector
Thegemstones sub-sector hasbeenunder utilized. Zambia isrichly endowed withgemstones
whose exploitation hasbeenillegally done. Most extraction isdoneunlicensed individuals, withan
estimated 90percentoutput going unrecorded.
- Energy sector
Anumber ofwater bodies thatcould beusedforthegeneration ofelectricity remain unexploited.
- Tourism
Thetourism industry hasnotbeenfullydeveloped.
- Industrial sector
Zambia sindustrial baseisverynarrow. Alotofcompanies havecontinued tooperate below
capacity andtheleveloftechnological advancement isinsignificant.
(b) Could youplease define yourcountry 'sperspective ofthereasons foranychanges inthe
structure anddirection ofexports andimports?
TheZambian economy hasforalongtimebeendependent ontheproduction ofcopper for
export withthisaccounting foralmost 90percentofZambia sforeign exchange earnings inthe
early 1970 sandlate1980 s.Inturntheeconomy relied heavily ontheimportation ofmanufactured
commodities fordomestic consumption. Thisgreatly affected thecountries terms oftradeasverylittle
income fromexport saleswascoming inwithalotofdemand forimportation ofmanufactured goods.
Asaresult, thegovernment began toborrow extensively fromabroad andsignificantly relaxed financial
disciplines. Thiscreated achronic disequilibrium intheeconomy. Theindustrial baseremained to
averylarge extent undeveloped withproduction concentrated intheproduction ofconsumer goods
asopposed tocapital goods.
Withtheforegoing, thegovernment seconomic policy direction hasbeenseentomove away
from animport substitution strategy towards anexport-oriented strategy withmuch emphasis onthe
diversification oftheexport base. Thecurrent economic policy places much emphasis onbothhorizontal
andverticaldiversification.Horizontaldiversificationinvolvestheproductionofnon-traditionalexports,
including gemstones, coffee, cotton, textiles andtobacco. Vertical diversification istoberealizedWT/LDC/HL/12/Add.12
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through theintegration oftheagriculture andmining sector forthefurther processing ofexport
commodities.
(c) What have been theobjectives oftrade policy inthemost recent period, compared to,
say,twodecades ago?
Zambia strade policy inthepastwasinward-oriented withalotofgovernment intervention.
Thetariff structure during the1970 sand80swashighly protective withseveral tariff lines. There
existed import restrictions. Importers wererequired toobtain animport license forgoods tobeallowed
entry intothecountry.
There wasalsoalotofgovernment intervention intheforeign exchange market.
Exporters were alsorequired toobtain export licenses. Tariffs were prohibitively high.
Thecountry washighly dependent onexport earnings from copper export.
Currently Zambia strade policy objective areoutlined asfollows:
1. Diversify away from dependency ontheproduction andexport ofcopper, cobalt, zincand
leadtotheproduction ofnon-traditional export, withthehopeofexpanding theexport base.
2. MaintainanopeneconomywithaliberalizedimportandexportregimewhichsupportsZambias
industrial development.
3. Support andencourage theexport ofvalue-added goods.
4. Seeknewmarkets andstrengthen Zambia strading tiesinregional andinternational markets.
5. Ensure anefficient customs administration.
6. Create afairtrading environment.
7. Improve theallocation ofresources andthecompetitiveness oftheZambian products,
consequently improve upon Zambia sforeign currency reserves.
Clarification
A(c) TheMinistry ofCommerce, Trade andIndustry 'spolicy requires thatbefore anypolicy
decision istaken consultations withtheprivate sector havetobeexhausted. Toachieve this
theGovernment formed theprivate sector dialogue.
Where Government andthePrivate Sector would meet onaregular basis todiscuss
issues thatrelate toprivate sector development inindustry andtrade-related issues. These
meetings would beattended bySenior Officers oftheMinistry andtheMinisters. Thishas
not,however, worked welltodate. This, infact,isoneoftheareasthattheGovernment would
liketoseedeveloped further.WT/LDC/HL/12/Add.12
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(d) What aretheMinistries incharge oftrade policy matters, including formulation,
implementation,enforcementandmonitoring?Howiscoordinationmade?Whataretherespective
rolesoftherelevant Ministries (giveparticular attention totariff policies andother policies directly
affecting exports andimports ofgoods andservices)?
TheMinistry ofCommerce, Trade andIndustry isresponsible fortheformulation, review and
administration oftrade polices.
Othertrade-relatedpoliciesareformulatedandimplementedbytherelevantMinistriesaccording
totheirfieldofactivities inturnthesepolicies aresubmitted bymeans ofamemoranda totheMinistries
concerned andtothose likely tobeaffected bytheproposed legislation.
TheMinistry ofFinance andEconomic Development isincharge oftariff-related issues and
preshipment inspection.
TheMinistry ofAgriculture, Food andFisheries isincharge ofphytosanitary issues.
TheMinistry ofHealth isincharge ofsanitary issues.
TheMinistry ofMines isincharge oftheexport ofminerals.
Enforcing bodies include:
TheZambia Revenue Authority enforces tariff andcustoms regulations including multilateral
andbilateral agreements ontariffs.
TheExportBoardofZambiadealswithpromotionofnon-traditionalexportsandtradepromotion
through international trade fairs.
TheZambia Bureau ofStandards enforces legislation onstandards. Itdeals with the
standardization, testing andcertification ofproducts.
TheMount Makulu Research Station implements phytosanitary andquarantine-related matters.
TheSociéte Génerale deSuvaillance (SGS), acontracted private company, enforces preshipment
inspection regulations. Itexamines goods fortariff classification, quantity andvalue ofhigh-valued
shipments.
TheZambia Competition Commission monitors restrictive business practice byprivate firms
andactsasadvocates forcompetition policy.
Clarification
A(d) Co-ordination among various institutions sayMinistries startwiththestage ofpolicy
formulation, acommittee isputtogether which would comprise ofalltheinstitutions thatwould
haveabearing onthatInstitution 'spolicies. Inasituation where therewould belikely overlap,
consultations areusually heldtoavoid anyoverlap, thisisnottosaythatthere havebeenno
cases ofoverlap.
Trade inServices isco-ordinated bytheMinistry ofCommerce, Trade andIndustry
inconsultation withthefollowing institutions. Ministry ofFinance, Ministry ofTourism,
Ministry ofTransport andCommunications, theTelecommunications Authority, Ministry of
Energy, Zambia Electricity Supply Co-operation, intellectual property-related matters areWT/LDC/HL/12/Add.12
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co-ordinated bytheMinistry ofCommerce, Trade andIndustry through theregistrar of
Companies, while copyright istheresponsibility oftheMinistry ofInformation which ofcourse
liaiseswiththeRegistrarofCompanies.AneworganizationcalledtheZambiaMusicCopyright
Protection Society hasbeenformed towhich copyright royalties would bepaidinaddition
toother responsibilities.
(e) Howaretheprivate sector andacademic institutions associated withtheformulation and
conduct oftrade policy?
Thegovernmenthasinstitutionalizedprivatesectordialogue.Ittriesasmuchaspossiblethrough
private sector dialogue meetings toinvolve theprivate sector andacademic institutions intheformulation
andconduct oftrade policy.
(f) What aretheinstitutions inyour country thatcanplayaroleinimplementation ofa
trade-related project atthelocal level? State their respective roles.
- Export Board ofZambia -promotion ofproduction forexport;
- Zambia Bureau ofStandards;
- Environmental Council ofZambia -Environmental-related trade issues;
- TheZambia Competition Commission;
- Mount Makulu Research Station;
- TheUniversity ofZambia -Department ofEconomics;
- TheEconomic Association ofZambia;
- Zambia Association ofManufacturers;
- Zambia Association ofChambers ofCommerce andIndustry;
- Zambia National Farmers Union;
- Textile Producers ofZambia;
- Zambia Export Growers Association.
Clarification
A(f) TheExportBoardofZambia(EBZ)isastatutorygovernmentagencyestablishedin1985
topromote, develop andencourage theexport ofnon-traditional goods. TheEBZismostly
financed bytheGovernment; itsmembers payanannual membership feeamounting toUS$50
andcontribute tocostsofpromotional activities, including tradefairs. TheEBZalsoexecutes
projects financed byforeign funds relating toitsactivities. Theprojects thatwould be
co-ordinated bytheEBZwould bethosethatwould contribute tothedevelopment andexpansion
ofnon-traditionalexports.Forexample,EBZiscurrentlyimplementingtheExportDevelopment
Programme which isintended toaddress theZambian production andexport market constraints
foraselected number ofsectors; namely, horticultural/floriculture, tobacco, coffee andtextiles
andcotton.
Thisprogramme isfinanced through theExport Development Fund which consists
ofexport finance facilities (ECU5 million) andtechnical assistance (ECU 5million) overa
specified period oftime(five years from 1993). TheroleofEBZ would betoprovide
administrative requirements totheproject toensure successful implementation ofthatproject.WT/LDC/HL/12/Add.12
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(g) What arethemain lawsandregulations dealing withtrade policy -onexports andimports?
Please provide ashort description ofeach.
Themain legislation governing Zambia sforeign trade istheCustoms andExcise Actand
thecontrol ofgoods Act. TheActdeals, interalia,withtheimportation andexportation ofgoods,
rules oforigin, customs valuation, tariff concessions, tariff court, excise taxandanti-dumping and
countervailing duties.
Apart from thisthere is:
TheControl ofGoods Act.
TheFoodandDrugs Act-dealswiththeproduction andlabelling offoodstuffs andimportation
ofpharmaceutical products.
ThePlant, Pests andDisease Control Act.
Competition andFairTrading Act.
Standards Act.
Copyright andPerformance Right Act.
Animal Health andProduction Bill(stillindraftform).
Preshipment Inspection Regulations.
(h) What arethemain instruments oftrade policy -onexports andimports? Please elaborate
(e.gonimport restrictions, thequestions might be:onwhat products arethere anyimport bans;
onwhat products arequantitative import restrictions; licensing requirements, etc.; what isthe
highest tariff ratecurrently inuse; arethere anyexcise taxes, other "domestic" taxes thatare
applied differentially toimported goods, ortogoods ofatypethatareprincipally imported?)
Import bansinclude thefollowing:
(a) baseorcounterfeit coins;
(b) anygoods thatareindecent, obscene orobjectionable;
(c) andgoods thatmight corrupt themorals oftheinhabitants ofZambia;
(d) prison-made andpenitentiary-made goods
(e) quilika (adrug);
(f) spirit-based beverages thatcontain preparations, extracts, essences orchemical products
thatarenoxious orinjurious;
(g) left-hand driven vehicles;
(h) firearms andammunition;
(i) radio-active minerals; and
(j) endangered species.
Importation intoZambia ofstillsandallapparatus oftheirparts, capable ofbeing usedfor
theproduction orrefining ofalcohol isprohibited except withthewritten permission ofthecontroller
ofcustoms. Zambia doesnotmaintain anyquantitative restrictions.
Licensing isrequired forproducts thathaveanegative effect ontheenvironment, animal, plant
andhuman health andforsecurity reasons. These include: animal products, plants, drugs and,firearms
andammunitions.
Thehighest tariff rateinuseis25percent.
Excise dutyischarged onthefollowing products:WT/LDC/HL/12/Add.12
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Cane andbeetsugar, andsome oftheirderivatives, beverages, tobacco andsome derivatives
andsubstitutes, petroleum products, tyres andtubes. Other domestic taxes: value-added tax.
(i) Incaseyour areaWTO Member orareintheprocess ofacceding, howisyourcountry
preparing itself tocomply withtheWTO Agreements?
Zambia isstillintheprocess ofreforming herlegislation tocomply withtheWTO regulations.
Some areas ofchange intheZambian trade-related lawshavebeenidentified which willbeamended
accordingly.
Areas oftraining havealsobeenidentified toensure adequate enforcement oftheWTO rules
andregulations, suchastraining ofthecustoms officials, thejudiciary, andthestaffingovernment
Ministries directly dealing withtheWTO matters.
Thegovernment isalsocommitted tofulfilling itsnotification obligations andaTrade Policy
Review onZambia strade policy wasconducted inSeptember 1996.
Thegovernment hasapproached USAID toassist andnegotiations haveprogressed.
(j) What isthestate offamiliarity withtheWTO framework:
- Among government andgovernment-related agencies?
- intheprivate sector?
Government andgovernment-related agencies: Some officials havebeenprivileged toattend
workshops andseminars organized bytheWTO Secretariat, UNCTAD, ITCCommonwealth andother
international organization onWTO matters. However, noteveryone isfamiliar withthefulldetails
oftheWTO framework hence theneedfortraining inthisarea. There isneedforexposure ofofficials
fromtheMinistry ofCommerce, Trade andIndustry, andother Ministries suchasMinistry ofFinance
andEconomic Development, Ministry ofLegal Affairs, Ministry ofAgriculture, Food andFisheries,
Ministry ofTransport andCommunication, Ministry ofTourism andinstitutions suchastheZambia
Investment Centre, etc.
Theprivate sector: Though theymaybeaware oftheexistence ofWTO, veryfewarefamiliar
withtheWTO framework.
(k) What areyour technical assistance requirements withregard toyour compliance with
theWTO Agreements?
1. Legislative reforms -identification ofareasthatneedchange anddrafting oflegislation.
2. Creation ofpublic awareness through workshops andseminars.
3. Training ofgovernment officials dealing directly withWTO matters, customs officials
andthepolice intheareaofenforcement.
4. Establishment ofadatabank.
5. Need assistance tounderstand andinterpret theprovisions oftheWTO Agreements.WT/LDC/HL/12/Add.12
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(l) Inwhich specific areas oftheWTO Agreements doyouhave technical assistance needs
(e.g.market access, agriculture, rules (anti-dumping, subsidies, import licensing, rules oforigin,
safeguards, etc.), TBT andSPS, Services, TRIPS)?
Customs Valuation: legislative reform.
TBT: establishment oftestlaboratory anddocumentation centre.
SPS: legislative reforms andtheestablishment offoodimport andexport inspection services.
Market Access: accessing ofproduction trends andmarket information, trade negotiations
andspecialist consultancy andfinancial assistance incarrying outmarket research ortrade
missions andtrade fairs.
Agreement onAgriculture: training ofofficials dealing withissues relating tothisagreement
toensure consistency innotification obligations.
TRIPS: assistance intheenforcement ofintellectual property rights; acquisition ofmodern
equipment todetect infringing goods; legislative reforms; intensive training inintellectual
property matters foracademic staff,customs officials, thejudiciary, thepolice andotherofficers
directly dealing withintellectual property matters; procurement ofequipment fortheacquisition
ofscience andtechnology database onintellectual property materials.
Anti-dumping andCountervailing: needtraining tocarry outinvestigation intheareaofunfair
trade practices. Formulation oflegislation onanti-dumping andamendment oflegislation on
countervailing measures.
Safeguard: formulation oflegislation onsafeguards.
(m) What isyourassessment ofyour existing trade analysis andnegotiating capacities, both
multilateralandbilateral,inareasalreadycoveredbytheWTOAgreementsandothertrade-related
areas, e.g.competition policy andtrade andenvironment?
Trade policy analysis isnotimpressive asthereislackofvitalmarket information. Noproper
documentation andupdate oftrade-related issues. There isverylittleresearch donebytheacademic
institutions onpractical issues relating totrade policy matters.
Negotiating capacity isequally notimpressive asthere islackofprofessional training in
negotiating skills.
B. Obstacle toTrade Expansion
Obstacles totrade encompassing problems inexport markets, infrastructure, human capacities,
institutional bottlenecks, trade financing problems andgapsintrade information caninhibit
aleastdeveloped country fromtaking fulladvantage oftrading opportunities.
Supply constraints, including institutional bottlenecks
(a) What arethemain bottlenecks inhibiting thedevelopment ofsustained export capacity
ofgoods andservices (e.g.customs facilitation, freight charges, quality management, eliminationWT/LDC/HL/12/Add.12
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ofcumbersomelegalandadministrativeprocedures,paucityofhumanskills,accessatinternational
prices toimported inputs, orinadequate telecommunication, portandtransport facilities etc.)?
- Land-locked countries mayfaceadditional problems, suchashaving toshipusing
costly orunreliable transport andports systems. Incasethisapplies toyour
country, please indicate suchproblems. What kindoftechnical assistance would
helpyouwork outthese problems?
- Lack ofcapital finance.
- High domestic interest ratesoncapital finance. Very highrealandnominal interest rateson
domestic credit hashadadetrimental effect oninvestment andproduction.
- Lackofspecialized education andtraining, research anddevelopment inscience andtechnology.
- Poorinfrastructure.
- Lack ofinformation about markets, technologies andcompetition.
- Insufficient aircargo capacity especially forperishables suchasroses andgreen vegetables.
- Production levels aretoolowtoaffect theworld market.
- Existence ofbothtariffandnon-tariff barriers. Hightariffbarriers existintheSouthern African
Customs Union (SACU) which ispotentially abigandlucrative market forZambian products.
- Lack oftesting laboratories forquality tomeetinternationally acceptable standards.
- High production costduetolowcapacity utilization. Levels ofoutput arelowandthishas
severely limited export development. Moreover export production isconfined toafewproduct
groups inagriculture andmanufacturing.
- High transportation costasZambia isalandlocked country.
- Insufficient market information tofoster entry intoexport activities.
- There isnodedicated incentive structure fornon-traditional export producers.
- Manufacturing Under Bond andDuty Drawback schemes onlycover direct inputs leaving out
plant andmachinery, machinery spares, consumables andother aidstomanufacture.
- Civil strife wasrampant inthesecond halfof1996 inZaire andBurundi which areexport
markets forZambia. Theimposition ofsanctions inAugust 1996onBurundi resulted inlost
orders formany Zambian exporters.
- Value-added taxoncapital goods andproduction inputs hastobepaidupfront. Though
claimable forinputs, thisraises thecostoftheinvestment andtiesupworking capital asVAT
refunds donotgivetimely andeffective relief.
(b) Arethere anyinstitutional bottlenecks, which mayimpede theefficient conduct ofyour
country 'strade policies? Provide details. Forexample, what aretheproblems perceived bythe
different actors, e.g.exporters, producers, service providers (banks, insurance companies, quality
control, transporters, etc.), professional associations andMinistries? Areproblems mainly
perceived intheareaof:
(i) Human resources;
(ii) management oftheinstitution;
(iii) financial andmaterial resources;
(iv) communication .
Lack ofdatabank andinformation network inthekeyMinistries Institutions onmarket
information.WT/LDC/HL/12/Add.12
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- Inadequate human resources inthecollection anddissemination ofmarket information,
lackofskilled manpower tocarry outmarket research missions.
- Oneoftheconstraints toindustrial development andcompetitiveness isthelowlevel
ofmanagement andtechnical skills.
- Financial constraint bylending institutions. Local commercial banks aremoreinclined
toshort-term lending andtherefore donothave thecapacity toservice arapidly
expanding export sector. Inaddition, thecostofdomestic credit isprohibitive.
- Lack ofhardcurrency credit oraccess toitinhibits companies from aggressively
exploiting anypotential comparative advantages.
(c) What arethemain bottlenecks toexport diversification ?
- Lack ofexport development finance.
- Lack ofmarketing information.
- Prohibitive tariff andnon-tariff barriers inexport markets.
Clarifications
B(c) Prohibitive tariff andnon-tariff barriers inexport markets areidentified inthiscase:
1. Prohibitive tariffs aremainly theexperience intheSACU market which maintains high
tariffratesespecially onitems which areofimportance toZambia, andyetsome oftheseSACU
countries which arealsoMembers ofCOMESA (Lesotho, Namibia andSwaziland) enjoy the
COMESA preferences when theyexport toZambia anddonotextend tothesame treatment
toZambian exports intotheir markets. Foracountry likeZambia which doesnotoffer
substantial incentives toexporting industries, asmall percentage point inthetariff structure
inanimport market would make abigdifference.
2. TheNTBs inthiscasewould betheimport controls inSouth Africa thatapply tonew
pneumatic tyres, tubes where import permits arerequired.
3. Thecontrol boards inNamibia which areconcerned withthemarketing ofmaize, wheat
andsunflower seeds hascategorized these products ascontrolled crops where prices are
determined bytheMinister ofAgriculture andlicences toprocessors ofthese items haveto
beissued andimport permits alsohavetobeissued. Furthermore, these boards withthe
approval oftheMinister ofAgriculture aretheonlyentity withpower toissuepermits forthe
importation oftheabove-named products.
There isasmall levyimposed onallsuchcontrolled crops.
4. South Africa applies quotas forcertain agricultural imports andtextiles andclothing.
B(c) Concrete examples onexistence ofprohibitive tariff andnon-tariff barriers inexport
markets
Other reasons forlackofexport diversification.
1. High transportation costs.
2. Inability toadapt tochanges intechnology, fashion (intheareaofclothing).WT/LDC/HL/12/Add.12
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(d) Ifinvestment intheproduction ofgoods andservices isinadequate, what arethemain
reasons? Please elaborate them (e.g. structural constraints, difficulties inattracting foreign
investment, limited enterprise development, financing, lackofappropriate technology, etc.)
- Lack oflong-term finance.
- High costofinvestment inresearch anddevelopment (R&D)
- High domestic interest ratesoncapital finance.
Clarifications
B(d) Reasons forinadequate investment
1. Highinterestratesandlackoflong-termfinancehasmadeitdifficultformostbusinesses
toexpand andmodernize theiroperations.
Financial institutions havemaintained rigidpolicies, seeking 100percentcollateral
inmost cases whilst preferring tolendshort-term only.
2. Constraints related togovernment policy andprocedures e.g.acquisition ofcommercial
property forsetting upanenterprise cantakeuptotwoyears duetogovernment bureaucracy.
3. Continuous pressure tocutgovernment expenditure tobring itinlinewithrevenue
hascontinued toimpact negatively onpublic investments. Thisinturnhasimpacted heavily
ontheprivate sector 'swillingness toinvest.
4. Inadequate infrastructure -thequality ofinfrastructural support services suchasroad
networks, water sewerage, electricity andtelecommunications poseanumber ofhurdles to
those wishing toestablish businesses.
5. Lack ofresources hasledtoinadequate investment inresearch anddevelopment, for
instance businesses arenotabletousemore recent methods ofproduction andhence arenot
abletoproduce goods thatclancompete withimported products.
(e) Isthere anational policy toencourage export-related investment opportunities? Please
elaborate. What arrangements areinplace forreviewing, drafting andnegotiating contractual
arrangements withforeign investors?
Zambia hasputinplace adeliberate policy topromote production forexport.
Dutyandtaxconcessions havebeenputinplace toencourage production forexport. Exporters
areentitled toadutydrawback oninputs usedforexport production andgoods stored inbonded
warehouses ormanufacturing under bond arenormally exempt fromcustoms duties andtaxes ifthey
aretobeusedintheproduction ofgoods forexport.
TheInvestment Actalsooffers aconcessional income taxof15percentinstead ofthestandard
rateof35percenttonon-traditional exporters whoholdaninvestment licence.
TheExport Board ofZambia executes projects financed byforeign funds topromote, develop
andencourage theexport ofnon-traditional goods fromZambia. TheZambian business community
isencouraged toutilize theexport development programme financed bytheEuropean Union (EU)WT/LDC/HL/12/Add.12
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toaddress Zambia sproduction andexport marketing constraints fornon-traditional goods suchas
horticultural andfloricultural products, tobacco, coffee, textiles andcotton.
TheEuropean Investment Bank through itsroseproducer lineofcredit hasbeengiving loans
togrowers fortheexpansion ofexisting facilities ortheestablishment ofnewroseprojects.
TheWorld BankCoffee IIFundhasbeengiving loansfortheestablishment ofnewhorticultural-
oriented export projects.
TheEnterprise Development Programme, aWorld Bank project, supports export-oriented
production under theMinistry ofCommerce, Trade andIndustry.
There arealsoproposals toestablish Export Processing Zones orindustrial green fields.
Arrangements forreviewing, drafting andnegotiating contractual arrangements withforeign investors.
Zambia hasestablished aninvestment promotion agency known asZambia Investment Centre
todealwiththenegotiations ofcontractual arrangements.
Clarifications
B(e) Zambia 'sexperience withExport Processing Zones (EPZs)
Zambia hasnotyetestablished Export Processing Zones, thisideaisintheinfancy
stage where dataisstillbeing gathered toassist theGovernment decide whatformthese EPZs
should take.
Duty Drawback Scheme
Theduty-drawbackschemeonlycoversdirectinputsandleavesoutplantandmachinery,
machinery spares, consumables andother aidstomanufacturing. Furthermore, therefunds
arenotdonetimely. Ways ofimproving theadministration oftheDuty-Drawback Scheme
havetobedesigned andimplemented.
(f) What arethemain obstacles tothetransfer, development andacquisition oftechnology?
Isthere anynational policy/strategy inthisarea? Please elaborate.
Transfer
- Thetechnology transferred isturn-key innature, capital intensive andrequires sourcing
ofrawmaterials from abroad.
- Lackoftechnology information toenable ussource technology fromcheaper sources.
Development
- Lack ofinvestment inR&D byindigenous research institutes.
- Inability toadopt andlateronadapt thetransferred technology duetohighilliteracy
levels.
- Lack ofpractical skills intheeducational curricula.
Acquisition
- Lack offinances.
- Inability toacquire technology suitable tooureconomic environment.WT/LDC/HL/12/Add.12
Page13
National policy strategy
Thenational policy strategy includes:
- theestablishment oftheNational Council forScientific research tocarry outresearch
ontechnology andproduct development.
- Theestablishment oftheTechnology Development Advisory Unittodealwiththe
adoption andadaption oftechnology forsmall scale enterprises.
(g) What areyour technical assistance orother assistance needs with respect tosupply
constraints?
- Capital finance.
- Assistance inmarket information.
- Technical assistance todiversify theproduction base.
- Theavailability ofexport development financing scheme iscritical totheexpansion
ofexport production inZambia.
Clarifications
PartB
Information about Zambia 'sexperience withtheutilization oftheEuropean Investment
Bank, theEUandtheWorld Bank projects
European Union
TheEuropean Investment Bank Facilities administered through commercial banks
(Barclays Bank, Standard Chartered BankandStanbic Bank) provides credit linesfortheupper
bracketsofthesmallandmediumenterprises(IndustrialSectorFinancing)andindividualmedium
tolargeenterprises. Rosegrowers areamong thebeneficiaries ofthesefinances. Inthetextile
sector, Swarp Sinning Mills hasbeenabeneficiary ofthese linesofcredit. However, alarge
partoftheprivate sector hasbeenunable toaccess these funds because oflackofcapacity
tomeetthe30percentequity requirement andthefactthatthese aredollar finances requiring
servicing indollars, making itexpensive forthem toborrow.
TheExport Development Programme: export financing facility iscurrently focused
onfourexport sectors thathadbeenidentified inanearlier study asexhibiting thebestpotential
toachieve theprogramme 'smainobjective ofdoubling export earnings within itstime-frame.
These sectors are: coffee, cotton textiles, horticulture andfloriculture, andtobacco with
assistance channelled through theirmain producer associations listed below:
Zambia Export Growers Association
Zambia Coffee Growers Association
Tobacco Association ofZambia
Textile Producers ofZambia.
EachAssociation islimited toaspecified amount ofcredit ranging fromUS$800,000
toUS$1,500,000. Thenumber ofbenefiting members ofeachassociation islimited tothose
withestablished repayment track records.WT/LDC/HL/12/Add.12
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Though theFund isgenerally operating satisfactorily, other associations withpotential
toproduce forexport arenotbeneficiaries ofthese finances.
Technical assistance component ofthisprogramme hasalsobeenofgreat benefit to
theExport Board ofZambia andtheproducer associations mentioned above.
Through theExport Board ofZambia (EBZ) sector studies havebeensponsored such
astheHerbs andSpices Study, theLegume Crop Study, andtheLeather Sector Study. Export
management training andtradenegotiation support hasalsobeenprovided totheEBZ. Under
theexport marketing training, aconsultant washired toundertake atraining needs analysis
during thefirstquarter of1996whoidentified constraints faced byexisting andnewexporters,
thereafter, aninitial programme ofsixmodules oftraining wasrecommended. This, however,
hasbeenassociated withanumber ofdifficulties suchasinability tosecure asatisfactory number
ofparticipants andaccurately targeting probable participants.
Other sectors havebenefited from theRegional Market Development Support.
Thecoffee, tobacco andhorticulture andfloriculture havereceived consultants inareas
including: extension services, trials andtrials analysis andagronomists, soilchemist, middle
management training, monthly horticulture lectures, cropspecialist andairfreight.
World Bank SeepartC(b)
Trade Promotion andTrade Support Services
Trade promotion comprises anintegrated setoftechnical andfinancial services toenhance
theglobal competitiveness ofenterprises andthusfacilitate their entry andincreasing
participation ininternational trade.
(h) Doyour enterprises, especially small andmedium enterprises, experience difficulties in
expanding their exports? What arethese problems inthemajor export sectors?
These doexperience thefollowing problems inexpanding theirexports:
- Lack ofmarketing information.
- Inability toadhere tointernational quality standards.
- Lack ofexport development finance.
- Inability toacquire internationally acceptable packaging material asthese arenot
produced locally.
(i) Whataretheproblemsforyourenterprisesinobtainingreliableandup-to-dateinformation
onexport/import business opportunities?
Thehumanresourceavailableinthecollectionanddisseminationofinformationonexport/import
business opportunities isverylimited andatthesame timelackintensive training inconcepts and
practices ofinternational trading andexport marketing.WT/LDC/HL/12/Add.12
Page15
(j) Canyour enterprises offer products ofinternationally acceptable design, quality and
packaging toforeign buyers? Ifnot,what aretheproblems?
Ourenterprise canofferproducts ofinternationally acceptable design andquality However,
most ofthem lackaccess toquality packaging material asmost ofthese areproduced locally.
(k) What problems, other thaninterms oftrade policy, doyouanticipate indeveloping the
export ofservices (e.g.computer software, tourism)?
Zambia smain exports ofservices aretourism andelectricity.
Tourism
(i) Theroleofmarketing tourism isplayed bytheZambia National Tourist Board (ZNTB).
Oneproblem encountered isaninadequate marketing budget given totheZNTB by
theGovernment.
(ii) There isnotourism strategy toguide marketing.
(iii) Although ZNTB works withtheprivate sector inmarketing tourism, theprivate sector
isconstrained andsmall tomake amajor impact.
(iv) Theinfrastructure ispoor(transport andcommunication) andthecosts ontransport
andtelecommunication services arehigh.
Electricity
Recurrent droughts experienced inthesub-region negatively affect Zambia selectricity
production which inturnhaveconsequences ontheexport ofelectricity.
(l) What arethetechnical/professional problems encountered bytrade support institutions
(e.g.trade promotion council, chamber ofcommerce, exporters association, etc.)inyourcountry
inproviding their services toexport/import enterprises?
Technical problems
(i) Theinformationanddocumentationservicesofsuchinstitutionsneedupgradingbecause
most ofitisoutdated.
(ii) Tradedata,especiallytradestatistics,areneitheradequatenorreliableaswidevariations
have been noticed onfigures provided bydifferent government ministries and
departments. Thishinders analysis ofexport performance, forecasting offuture trends
intradeandanalysing oftradepolicy. Thisresults inprovision ofpoorsupport services
toexporters andimporters.
(iii) Inadequate funding hampers thegeneral performance ofsuchorganizations.
(iv) There islittleofproblem solving dialogue among exporters/importers themselves and
between government andexporters/importers.
Professional problems
(i) Most ofthestaffworking forsuchinstitutions lackadequate export marketing skills
andother skills related tointernational trade. Such skills cannot beacquired locally
because there isnolocalcollege oruniversity offering sucheducation.
(ii) There islackofcapacity tocarry outfeasibility studies forsetting upwithin Zambia
export houses andtrading companies.WT/LDC/HL/12/Add.12
Page16
(m) What problems anddeficiencies areexperienced byenterprises intheir international
purchasing andinventory management?
Most enterprises inZambia aresmall interms ofsizeandproduction capacity. They lackthe
capacity to:
- solicit orders intheforeign markets;
- payformarket research byexport service companies intheexport markets;
- appoint agents inanyexport country;
- meetthecostoftender documents, andcourier costs;
- paycommission orother remuneration;
- payforinsurance premium.
(n) What arethepresent availability andarrangements fortrade finance facilities (e.g.export
credit guarantees, etc.)? Arethere anyperceived deficiencies inthisarea?
TheEuropean Investment Bank finances administered through Barclays, Stanbic andStandard
Chartered Banks. Thisfacility provides finances forcapital equipment andnotworking capital. It
requires thepromoter tomeet30percentoftheloanasequity.
TheWorld Bank credit facility administered through Investment Merchant Bank, Carvmont
andDevelopment Bank ofZambia.
TheWorld BankCoffee IIFund gives loans fortheestablishment ofnewhorticultural-oriented
export projects.
TheEuropean Union Finance Facility provides finances toaddress Zambia sproduction and
export marketing constraints fornon-traditional goods suchashorticultural andfloricultural products.
TheZambia Agricultural Marketing andProcess Infrastructure Project (ZAMPIP) lends out
bothworking andcapital finance andlimits itslending toUS$500,000.
Perceived deficiencies:
Themajor problems associated withfinances under suchfacilities are:
- Equity: most promoters havenocapacity tomeet theequity requirement of30per
centtoallow them access tosuchfunds.
- Foreign exchange risks: therepayment oftheloanbecomes aburden ontheborrower
aspayments areexpected tobedone indollar equivalent attheprevailing foreign
exchange rate.
- Selective lending: credit finance under theabove mentioned facilities islimited toa
fewproducers (i.e.onlythose thatareproducing agricultural products forexport have
benefited).
- Limitation ontheamount tobeborrowed, e.g.under ZAMPIP.WT/LDC/HL/12/Add.12
Page17
(o) What arethemain problems inthewayofimproving export/import management skills
ofyour business enterprises? Doyouhave training programmes inthecountry? What arethe
deficiencies?
Themajor problem islackoffinances toundertake market research. Most oftheenterprises
areunable toparticipate ininternational trade fairs.
Zambia doesnothavespecialized training programmes inexport/import management skills.
Most enterprises onlyhavegeneral business management skills.
Clarifications
B(o) Availability inZambia oftrainers inexport/import management
TheExport Board ofZambia withthesupport oftheEUhasputinplace anExport
Management Training Programme which hassofarprovided training tobothmiddle andsenior
managers intheindustrial sector. Thecourses provided include:
- Practical export costing andpricing. Export promotion andtrade fair
participation. Export marketing principles andpractices. Identifying and
selectingdistributionoptions,exportmarketingplanandexportmarketresearch.
- Thesecourseswererunbyinternationalconsultants.Atthemomentdiscussions
areunderway tomake thisprogramme sustainable, proposals arebeing made
toinvolve alearning institution inconducting suchtraining.
(p) Does your trade representation service actively promote your trade? What arethe
weaknesses?
Zambia haspoor trade representation inforeign missions. There arevery fewtrade
commissioners whoareexpected tocover anumber ofcountries. Thishasresulted todelayed
communication ofthemost needed information ontrade opportunities.
(q) Briefly describe yourtechnical assistance needs intheareaoftrade promotion andsupport
services.
- Financial andhuman resources toundertake trade missions.
- Intensive training inexport marketing.
Clarification
B(q) Zambia 'stechnical assistance needs intheareaoftrade promotion
Zambia'stechnicalassistanceneedsarenotlimitedtothetrainingofofficerstoundertake
trade missions. Theexporters themselves arealsoinneedoftechnical assistance.WT/LDC/HL/12/Add.12
Page18
Market Access
(r) What areyour main market access problems?
- Zambia being alandlocked country incurs highfreight costs which result intouncompetitive
pricing ofherexports.
- Non-tariff barriers suchasregulations andstandards arethemajor obstacles faced bythe
Zambian exporters especially exporters ofagricultural products.
- Though theGeneralized System ofPreferences benefit Zambia, notallexports qualify for
preferential treatment under these schemes.
(s) What specific problems orbarriers, andinwhich countries, aremost troublesome for
your exporters?
Zambia faces market access problems intotheSouthern African Customs Union markets due
tohighprotective tariff ratesandnon-tariff barriers which these countries maintain. These countries
alsosubsidize theirexports thereby creating unfair competition toZambian products intheregion.
Clarification
B(s) Initiatives taken byZambia todiscuss theissues involved themembers ofSACU
Zambia hastabled abilateral tradeagreement withSACU foranumber ofexport items
from Zambia. Thisinitiative goesbackto1993 todatethere hasbeennoagreement except
thattheSACU countries haveindicated tousthatthisrequest isreceiving attention. There
isnoindication yetastotheformthisbilateral agreement willtakethough Zambia hasproposed
anon-reciprocal arrangement. While wewould liketotakeaction onunfair competition,
wehavenotyetdonesobecause wearehaving difficulties withensuring thatourdomestic
lawisinconformity withWTO requirements andthereiscapacity within therelevant institution
thatwould beinvolved insuchanaction. Zambia hashowever setuptheZambia Competition
Commission which hasonlybeeninoperation forafewmonths andwestillhavetorecruit
therequired personnel.
(t) Regional andsubregional trading arrangements (RTAs): please listRTAs towhich your
country belongs. Areyousatisfied withtheperformance ofthese RTAs? Please statetheproblems
ofeach. Doyouhave suggestions onhowtosolve these?
Zambia isamember ofthefollowing regional trading arrangements:
- Southern African Development Community (SADC)
- Common Market forEastern andSouthern African Countries (COMESA)
TheACP/EU
Theperformance ofthese arrangements
TheSADC trade protocol wasjustsigned inAugust 1996 andhasnotyetcome intoforce.WT/LDC/HL/12/Add.12
Page19
COMESA isworking towards establishing acommon market. Zambia isbenefitting tosome
extent from thereduced tariffs withthisgrouping, however, thetariff reduction commitment under
COMESA doesnottakeintoconsideration thedifferent levels oftariff ofmember countries (some
countries haverelatively hightariff levels while others havelowlevels oftariff). COMESA expects
allmember countries toreduce tarifflevels bythesamemargin overthesameperiod oftimeregardless
oftheprevailing tariff levels.
ACP/EU: Zambia hasbenefitted fromthepreferential treatment under thisarrangement and
hasalsobenefitted fromthefinancial assistance under theexport development programme topromote
theproduction ofnon-traditional products forexport.
Clarifications
B(t) Performance andproblems experienced byZambia inparticipating inregional and
sub-regional trading arrangements
Themajor problem inparticipating intheSADC trade arrangements isthecapacity
tonegotiate withcountries likeSouth Africa which seem tohaveanupper handininformation
andanalysis ofsuchinformation. South Africa hasinstitutions suchastheTIPswhich does
alltheanalysis ontradearrangements while countries likeZambia donothavesuchinstitutions.
Icannot elaborate much onimplementation ofthisprotocol byZambia sincetheSADC Protocol
ontrade hasnotyetbeenratified bytherequired majority oftwo-thirds.
Suggestions forimprovement
Since westillneedtofinalize thetariffschedule totheSADC Trade Protocol, Zambia
would require toincrease hercapacity tobeabletoanalysis andinterpret tradedataeffectively
thiscould bebyincreasing thecapacity inallthekeyinstitutions suchastheMinistry of
Commerce, Trade andIndustry, Ministry ofFinance andeconomic development, Zambia
Revenue Authority, etc.orsetting upabody oftrade experts whocould doallthenecessary
research andanalysis tothenfeedtherelevant institutions.
Under COMESA, theproblems faced byZambia relate tothefactthatsome countries
arenotreciprocating thesetariffreductions and,secondly, when westarted thetariffreductions
wearestarted atdifferent levels. ThefactthatZambia isalsoimplementing theStructural
Adjustment Programme hasledtofurther unilateral trade liberalization byZambia farahead
oftheagreed programme under COMESA. Partofthesuggestion given above would apply
evenhere. Forexample, under thecurrent COMESA negotiations, Zambia hastaken aposition
thatthere willbereciprocity interms ofnominal ratesthatapply totrade among eachother.
Thishasnotbeenimplemented evenincases where amember haswithdrawn theCOMESA
concessions orhastooeffected theCOMESA tariff reductions.
(u) Arethere anyproblems inutilizing theexisting market access preferences, suchasGSP,
GSTP? Please state thenature ofproblems relating toeachofthese.
GSP
Inability tofulfilquotas allocated tousunder thisarrangement because ofthelowproduction
levels.
Inthecaseofagricultural products, theprevalent ofdiseases inanimals, inhibit thepenetration
ofZambian products inthese markets.
Lack ofadequate quality control measures.WT/LDC/HL/12/Add.12
Page20
GSTP
Zambia isnotyetamember oftheGSTP.
Clarifications
B(u) Thekindofassistance Zambia isreceiving ineradicating animal diseases
There areanumber ofprojects thatareinplace namely:
1. TheSouthernAfricananimaldiseasecontrolprogramme.Thisisafiveyearprogramme
thathasbeenfunded bytheEUsince1993. Theaimoftheproject istofocus ontheprevention
andcontrol ofthemajor epidemic infectious diseases oflivestock especially footandmouth
diseases andthecontagious bovine pleuropneumonia.
Theother major component ofthisproject hasbeenthesetting upofthequarantine
facilities inborder towns (such asChirindu, Livingstone andLuangwa). There isatechnical
assistance attached totheproject.
2. AssistancefromtheDutch,undertheWesternProvinceLivestockDevelopmentProject.
Thisisassisting withthecontrol ofthecontagious bovine pleuropneumonia intheWestern
Province.
3. TheEUprojectcalled"VeterinaryPrivatization"isgivingoutloanstoveterinarydoctors
toset-up private practices totreatdiseased animals.
4. Regional tsetse andtrypanosomiasis control programme under theEUtothecontrol
these diseases.
Further assistance needed
Technical assistance isrequired tohelporfacilitate thefollowing ofinformation. This
isnecessary inorder forothercountries toknow thatmeasures havebeentaken intheeradication
ofdiseases. Theprevalence ofsome oftheabove indicated diseases haveledtoZambia not
being abletoexport beefproducts totheEUmarket. Furthermore, mostofourabattoirs if
notalldonotmeettheEUstandards, therefore, thiscould beanareawhere assistance would
beprovided.
(v) What areyour technical assistance needs withrespect tomarket access?
- Acquisition ofnegotiating skills soastoparticipate effectively intrade negotiations.
- Acquisition ofuptodateinformation onmarket needs andtrends indeveloped countries.
- Specialist consultancy andfinancial assistance incarrying outmarket research ortrademissions
andtrade fairs.
C. Technical Assistance
Technical assistance isnormally provided todeveloping andleastdeveloped countries tobuild
orenhance theirhuman resources andinstitutional capacities, provide trade information and
trade-related legalsupport, aswellasimprove theirsupply capabilities inorder tomake them
more active players inthefieldofmultilateral trade.WT/LDC/HL/12/Add.12
Page21
(a) Totheextent thiskindofinformation iseasily available, could youplease briefly describe
what trade-related assistance youhave received over thepastfiveyears from bilateral and
multilateral sources andwhatprojects/programmes arepresently under consideration inthisarea?
Trade-related technical assistance received overthepastfiveyears
- Consultants tohelporganize workshops onmatters relating totheWTO.
- Consultants intrade negotiations, particularly, intheSADC andbilateral trade
negotiations
- Participation inthetrade policy course organized bytheWTO.
- Modernization oftheintellectual property office.
(b) Please summarize your technical assistance needs aswellasother needs asreflected in
thischeck-list. Please rank them interms ofpriority.
Summary oftechnical assistance needs according topriority
1. Human resource development:
- Training atalllevels ofgovernment officials andthose directly dealing with
WTO matters tounderstand andeffectively interpret andimplement the
provision oftheWTO Agreements.
- Acquisition ofnegotiating skills.
- Intensive training inexport marketing.
- Assistance tocreate awareness among theprivate sector.
2. Legislative reforms:
Assistance tocarry outlegislative reforms.
3. Acquisition ofequipment
Acquisition ofequipment byGovernment Ministries soastoaccess information on
market opportunities andtechnological development.
4. Accession tobothmarket andtechnology information
5. Establishment oftestlaboratories forstandards
(c) Inthelight oftheinformation youhave been abletoprovide sofarinresponse tothe
questions inthischeck-list, what types ofinformation are,inyour view, stillmissing orcould
beimproved upon? Inorder toassist youinproviding thismissing information, would youneed
technical assistance?
Technical assistance inproviding missing information
(d) Does your country have thetechnological capacity andhuman resources tomake useof
thenewinformation/communication technology toolssuchasCD-ROM, theInternet, etc?What
assistance would youneedtoenable yourcountry tousethese toolsinthecontext oftraining and,
more generally, inthecontext oftrade development?
Thetechnological capacity andhuman resources development intheaccession andutilization
ofinformation onInternet orCDROM isverylimited.
Very fewinstitutions haveresources toprocure thenecessary equipment tohaveaccess to
Internet.
Assistance thatwould berequired inthisareawould include:
Financialresourcestoacquirethenecessaryequipmentandtrainingintheuseofsuchequipment.WT/LDC/HL/12/Add.12
Page22
Clarifications
C(b) Trade-related technical assistance from multilateral sources
1. Trade information department oftheExport Board ofZambia
Over thepastfiveyears, thedepartment hasreceived technical assistance from one
multilateral institution namely, theEuropean Union. Through theEUtechnical assistance,
thedepartment hasestablished atrade point. Theassistance hasincluded various types of
equipment, linkage toInternet andtraining ofpersonnel inhandling computerized networks.
2. COMESA trade development andpromotion programme
Theprogramme doesnotreceive anytechnical assistance from either bilateral or
multilateral sources. What theprogramme receives isfinancial assistance from UNDP, the
Governments oftheNetherlands andBelgium. Theexecuting agent fortheprogramme isITC
while theimplementing agent isCOMESA.
Theprogramme provides trade-related technical assistance tothemember states of
COMESA. Zambia hasbenefited fromsome oftheservices provided bytheprogramme which
include:
- market research;
- supply anddemand surveys ofselected products within theregion;
- contact promotion (buyers andsellers meetings);
- identification ofinvestment opportunities;
- assisting entrepreneurs inmarketing within theCOMESA region;
- organizing marketing missions forcompanies;
- setting upanduseoftheTrade Information Network (TINET) incompanies
thatareexporting andimporting within COMESA. TINET isacomputerized
system.
- providingassistancetobusinessorganizationssuchasthechambersofcommerce
andindustry inidentifying investment opportunities.
3. TheEuropean development programme
Under thisprogramme technical assistance isrendered through theExport Board of
Zambia andhasincluded technical assistance toproducers oftextiles products, coffee, tobacco,
horticultural andfloricultural products forexport. Alsoprovided ispreshipment financing
although thisismainly financial assistance.
4. TheWorld Bank assistance
TheWorld Bank hasrendered trade-related assistance toZambian exporters through
theExport Board ofZambia during thepastfiveyears inthreewayswhich haveincluded human
resources development intimber grading forexport, useofproduction methods aimed at
sustainableexploitationofwoodresourcesandpre-exportpreparationandhandlingofgemstones.
Under consideration isanother programme bytheWorld Bank called theEnterprise
Development Project. Thisisaimed atkick-starting thesupply response ofZambian industries.WT/LDC/HL/12/Add.12
Page23
5. UNDP 'sprivate sector development programme
Thisprogrammehastwocomponents.Theprogrammeembracesbothtradedevelopment
anddevelopment ofsmall tomedium scaleenterprises. Onthetrade-side, theprogramme works
atestablishing aresident capacity toformulate, promote andcoordinate tradepolicy inZambia
aswellasdevelop skills related totrade policy. Theprogramme hastriedtoestablish an
information system anddatabase withrelevant analytical skills. Keyagents oftheprivate sector
suchastheZambia Bureau ofStandards, havebeentargets ofthisprogramme inorder toenable
themacquire adequate capacity toimplement development programmes forsmall andmedium
enterprises toenable theenterprises respond withcompetitive products fordomestic andexport
markets.
Trade-related technical assistance from bilateral sources
TheMinistry ofCommerce, Trade andIndustry astheformulating bodyofZambia 's
trade policy hasbenefited from Germany 'stechnical assistance in:
- preparing forbilateral meetings/negotiations ontradematters between Zambia
andherneighbours. Alsotoassist onregional trade agreements.
- elaboration ofwhattheeffective rateofprotection inZambia is(though this
wasnotefficiently executed).
- operationalization ofthepolicy document onthecommerce andtrade policy
through theNational Action Plan.
- capacity building ofprofessional stafffrom theMinistry inacquiring skills
related totrade analysis.WT/LDC/HL/12/Add.12
Page24
Integrated Response
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion A(k):
Technical requirements asregards to
compliance withWTO Agreements
1.legislative reforms -identification
ofareas thatneedchange and
drafting oflegislation
IMF Strengthening customs valuation
andaligning thevaluation system to
WTO requirements (GATT
valuation code).
1998 (Commitment inprinciple).
SeealsoA(l).
WTO Assistance willbeprovided forthe
drafting/adaptation oflegislation
aimed attheimplementation of
WTO agreements. SeealsoA(l).
Implementation between 1998-
2000.
2.creation ofpublic awareness
through workshops andseminars
UNDP/
UNCTAD
(WIPO )Regional workshop in1998 inthe
COMESA region willtrain
government officials andprivate
sector representatives andNGOs in
policy andrule-making under the
WTO.
WTO National seminars ontheWTO
system willbeorganized in1998
forselected LDCs including
Zambia.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page25
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(k)(cont.) :
3.training ofgovernment officials
dealing directly withWTO matters,
customs officials andthepolice in
theareaofenforcementUNCTAD Workshops andseminars willbe
heldindirect support toWTO
negotiating process.*
World Bank/
WTOAsub-regional seminar onthe
economics andinstitutions of
international trade hasbeen
scheduled forNovember 17-22
1997. Thegovernment ofZambia
willbeinvited tosendofficials.
WTO Specialized regional seminars
and/or workshops onWTO
provisions willbeorganized in
1998 and1999 inEnglish speaking
African least-developed countries.
Athree week trade policy course
(with special sessions on
notification) forEnglish-speaking
African Least-Developed countries
(including Zambia) willbeheldin
1998 andin1999.
4.establishment ofadatabank UNDP Thisispartoftheorganization 's
current policy dialogue withthe
government; modalities willbe
explored forproviding operational
programmes/activities.
World Bank/
UNCTADTheSMART andTARS systems
areavailable forinstallation.
System improvements willbe
developed in1998-1999.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page26
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(k)(cont.) :
5.needassistance tounderstand and
interpret theprovisions ofthe
WTO AgreementsUNCTAD Willprovide assistance toassess
theoverall impact ofglobalization
onZambia inorder tofacilitate
policy adaptation tothevarious
WTO Agreements aswellas
enabling thecountry tomaximize
itsbenefits from thenewtrading
opportunities, through studies and
workshops.*
UNDP Thisispartoftheorganization 's
current policy dialogue withthe
government; modalities willbe
explored forproviding operational
programmes/activities.
World Bank Thisissue willbetosome degree
covered initemA(k)3, above.
WTO Please refertoanswers under A(k)2
andA(k)3. Seealsoreplies to
A(l), below.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page27
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion A(l):
Specific technical assistance needs :
Customs Valuation: legislative reform
IMF 1)reviewing andupdating customs
legislation andregulations, in
order toalign them to
international standards and
conventions andtoassure
efficient collection ofrevenue.
2)rationalizing tariffs andtheir
coordination withthedomestic
indirect taxsystem.
UNCTAD TheASYCUDA-project willassist
inthereview ofcustoms operations
including itsmodernization.
World Bank/
WTOAninternet linkwiththeWCO be
considered inthecontext ofthe
jointWorld Bank-WTO website.
WTO Assistance willbeprovided during
theperiod 1998-2000 foraligning
thecustoms valuation legislation
withtheWTO Agreement on
Customs Valuation.
TBT:establishment oftestlaboratory
anddocumentation centreWorld Bank Identification andimplementation of
anappropriate andworkable system
ofstandards during theperiod
1997-2000.
Thisassistance willinclude:
a)assessment ofZambia 'sneeds;
b)design ofprograms toinstall
appropriate systems, including,
asappropriate, support for
drafting legislation and
regulations, andtraining ofstaff.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page28
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(l)(cont.) :
SPS: legislative reforms andthe
establishment offoodimport and
export inspection servicesWorld Bank Identification andimplementation of
anappropriate andworkable system
ofstandards during theperiod
1997-2000. Thisassistance will
include:
a)assessment ofZambia 'sneeds;
b)design ofprograms toinstall
appropriate systems, including, as
appropriate, support fordrafting
legislation andregulations, and
training ofstaff.
Market access: assessing of
production trends andmarket
information, trade negotiations and
specialist consultancy andfinancial
assistance incarrying outmarket
research ortrade missions andtrade
fairsITC Assistance willbeprovided during
theperiod 1997-1999 intrade
information, market research and
trade missions inparticular forfood
andbeverages, agro-based
products, leather goods. Thiswill
include theparticipation of
enterprises inbuyers-sellers
meetings, preparation ofmarket
researches andorganization of
dissemination seminars.
UNCTAD Assistance willcontinue tobe
provided through theTRAINS CD-
Rom.
Assistance intheuseofthe
TRAINS CD-Rom willbe
provided.*
UNCTAD/
ITCATradepoint hasbeensetupinthe
Treasury Building inLusaka.
Areview ofitsfunctioning and
possible upgrading shallbe
undertaken.*
*Funds arerequested.WT/LDC/HL/12/Add.12
Page29
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(l)(cont.)
UNCTAD Assistance willbeprovided to
promote theexpansion and
diversification ofexports from
Zambia, toincrease GSPutilization
andtoprovide Government
officials andthose intheprivate
sector withabetter understanding
oftrade lawsgoverning market
access conditions inmajor
preference-giving countries
(advisory missions and
workshops).*
World Bank Enterprise Development Credits
support enterprises toacquire such
capacities. TheWorld Bank will
provide, asnecessary, assistance in
accessing these credits.
Agreement onAgriculture: training of
officials dealing withissues relating to
thisagreement toensure consistency
innotification obligationsUNCTAD Please refertoanswers A(k)3 and
A(k)5.
World Bank/
WTOThisissue willbetosome degree
covered initemA(k)3, above.
WTO Please refertoanswers toA(k)2
andtoA(k)3.
TRIPS:
-intensive training inintellectual
property rights foracademic staff,
customs officials, thejudiciary, the
police andother officers directly
dealing withintellectual property
rightsUNCTAD Please refertoanswers A(k)3 and
A(k)5.
UNDP Please refertoA(k)2.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page30
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(l)(cont.)
WTO Assistance willbeextended to
Zambia inaccordance withthe
Cooperation Agreement between
WIPO andWTO providing for
WIPO legal-technical assistance
relating totheTRIPS Agreement.
-assistance inenforcement of
intellectual property rightsWTO Same asabove.
-acquisition ofmodern equipment
todetecting infringing goods
-legislative reforms WTO Same asabove.
Anti-dumping andcountervailing
duty: needtraining tocarry out
investigation intheareaofunfair
trade practices, formulation of
legislation onADP andamendments
oflegislation oncountervailing
measuresWorld Bank/
WTOThisissue willbetosome degree
covered initemA(k)3, above.
WTO Assistance willbeprovided to
Zambia during theperiod
1998/2000; thisassistance will
comprise: a)assessment ofthe
requesting country needs inthe
contingent trade remedies area; b)
onthebasis oftheresults ofthis
assessment, technical assistance will
beprovided on:
(i)drafting national legislation;
(ii)establishing domestic trade
remedy system; (iii)training
national administration staff
responsible fortheimplementation
ofthetrade remedy system.
Safeguard: formulation oflegislation
onsafeguardsWorld Bank Thisissue willbetosome degree
covered initemA(k)3, above.
WTO Same asabove.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page31
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion A(m):
Assessment oftheexisting trade
analysis andnegotiating capacities
Trade policy analysis isnot
impressive asthere islackofvital
market information. Noproper
documentation andupdate oftrade
related issues. There isverylittle
research donebytheacademic
institutions onpractical issues relating
totrade policy mattersUNDP/
UNCTAD/
ITCIntheperiod 1997-2000 Zambia
willbenefit from theCapacity
Building Programme forTrade and
Development aimed at
strengthening thecapacity of
Institutions incharge offormulating
trade policies, including national
andsub-regional sectoral
(agriculture, textiles, clothing &
natural resources) studies to
enhance government capacity for
analysis andformulation.
UNCTAD Inaddition totheabove, UNCTAD
willprovide advise andtraining to
strengthen theanalytical and
negotiating capacities ofZambia.*
WTO During theperiod 1998/1999, asa
follow-up totheTrade Policy
Review ofZambia conducted in
1996, theWTO Secretariat will
helptheZambian authorities in
assessing theirtrade policy analysis
andresearch needs, orin
identifying possible institutions
where suchanalysis could take
place.
Negotiating capacity isequally not
impressive asthere islackof
professional training innegotiating
skills
*Funds arerequested.WT/LDC/HL/12/Add.12
Page32
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(m) (cont.)
UNDP/
UNCTAD/
ITCUnder theCapacity Building
Programme, training oftrainers
willstrengthen "enabling
institutions" designed tosupport
government officials andprivate
entrepreneurs intheirtrade
negotiations andintheirefforts to
penetrate foreign markets.*
WTO Three week trade-policy course (see
A(k)) willcontain general training
toenhance negotiating skills for
participation inmultilateral trade
negotiations.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page33
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion B(g):
Technical assistance needs asregards
tosupply constraints
1.Capital finance UNCTAD Assistance tobeprovided for
reviewing Zambia 'sInvestment
Code toadapt itsclauses tothe
most updated investment regimes
andenvironments soastoattract
increasing foreign investment and
support forenterprise
development.*
2.Assistance inmarket information ITC/
UNDPPlease refertoA(l). Inaddition,
trade information support willbe
provided under theCOMESA
programme. Information on
current world market prices and
trends ofhorticultural produces will
beprovided under theMarket
News Service.
World Bank Enterprise Development Credits
support enterprises toacquire
market information. TheWorld
Bank willprovide, asnecessary,
assistance inaccessing these
credits.
UNCTAD Please refertoA(l).
UNDP
(UNOPS )Training workshop fortheuseof
theInternet togather market
information shallbeorganized.*
3.Technical assistance todiversify
export baseITC Please refertoA(l), withspecial
reference toagro-based products
andleather goods.
UNCTAD Willprovide assistance toZambia
indeveloping itsservices sector and
inenhancing itscapacity totrade in
services. (1998)*
*Funds arerequested.WT/LDC/HL/12/Add.12
Page34
Technical assistance needs identified
inthequestionnaireOrganization Response
Question B(g)(cont.) UNDP Regional Project onFood
Technologies willcontinue sub-
sectoral studies.
World Bank TheBank iscurrently helping to
findprojects inZambia withthe
following objectives:
Agriculture marketing and
processing, general: dealing with
environmental considerations,
privatization, marketing,
revitalization ofsmallholders,
distribution ofinputs.
Mining: opening toprivate
investors, diversification, improved
efficiency ofexploitation.
4.Theavailability ofexport
development financing scheme is
critical totheexpansion ofexport
production inZambiaITC Thedissemination ofatrade
financing guide on"How to
approach Banks" andrelated
presentation seminar willbe
organized in1998.
World Bank Thematching grant andcredit
program forenterprises supports
theproduction ofexports. (The
programme supports commercially
viable ventures, without regard for
theirsalesbeing forexport orfor
thedomestic market.) TheWorld
Bank willprovide, asnecessary,
assistance inaccessing these
credits.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page35
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion B(q):
Technical assistance needs intrade
promotion andsupport services
1.Financial andhuman resources to
undertake trade missionsITC Please refertoA(l). Some
additional support willbeprovided
through COMESA Trade
Development Programme.
2.Intensive training inexport
marketingITC Please refertoA(m). Inaddition,
export marketing workshops on
selected products willbeorganized
under ongoing regional projects for
Africa.*
UNCTAD TRAINFORTRADE willcontribute
inthisarea.*
World Bank Enterprise Development Credits
support enterprises toacquire such
capacities. TheWorld Bank will
provide, asnecessary, assistance in
accessing these credits.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page36
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion B(v):
Technical assistance inmarket access
1.Acquisition ofnegotiating skills so
astoparticipate effectively intrade
negotiationsITC Please refertoA(m).
UNCTAD Please refertoA(m).
UNDP Please refertoA(m).
WTO Please refertoA(m).
2.Acquisition ofup-to-date
information onmarket needs and
trends indeveloped countriesITC Please refertoA(l), A(m) and
B(g).
UNCTAD Please refertoA(l), A(m) and
B(g)2.
UNDP Please refertoA(m) andB(g)2.
World Bank Please refertoB(g)2.
3.Specialist consultancy andfinancial
assistance incarrying outmarket
research ortrade missions ortrade
fairsITC Please refertoA(l)andB(q).
UNDP Please refertoB(g)2.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page37
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion C(b):
Summary oftechnical assistance needs
according topriority
1.Human resource development
-training atalllevels ofgovernment
officials andthose directly dealing
withWTO matters tounderstand
andeffectively interpret and
implement theprovisions ofthe
WTO AgreementsUNCTAD Workshops andseminars willbe
heldindirect support toWTO
negotiating process.*
National seminars ontheWTO
system willbeorganized in1998
forselected LDCs including
Zambia.
(Inconjunction withtheWorld
Bank) Asub-regional seminar on
theeconomics andinstitutions of
international trade hasbeen
scheduled forNovember 17-22
1997. Thegovernment ofZambia
willbeinvited tosendofficials.
Specialized regional seminars
and/or workshops onWTO
provisions willbeorganized in
1998 and1999 inEast/South
Africa. Athree week trade policy
course (with special sessions on
notification) forEnglish-speaking
African Least-Developed countries
(including Zambia) willbeheldin
1998 andin1999. Thiscourse will
contain general training toenhance
negotiating skills forparticipation
inmultilateral trade negotiations.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page38
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) WTO With respect tocustoms valuation,
aninternet linkwiththeWCO will
beconsidered inthecontext ofthe
jointWorld Bank-WTO website.
Assistance willbeprovided during
theperiod 1998-2000 foraligning
thecustoms valuation legislation
withtheWTO Agreement on
Customs Valuation.
Also, assistance willbeextended to
Zambia inaccordance withthe
Cooperation Agreement between
WIPO andWTO providing for
WIPO legal-technical assistance
relating totheTRIPS Agreement.
With respect toanti-dumping and
countervailing duties, aswellas
safeguards, assistance willbe
provided during theperiod
1998/2000, toinclude, among other
elements, thetraining ofnational
administration staffresponsible for
theimplementation ofthetrade
remedy system.
-acquisition ofnegotiating skills UNDP/
UNCTAD/
ITCIntheperiod 1997-2000 Zambia
willbenefit from theCapacity
Building programme forTrade and
Development aimed at
strengthening thecapacity of
Institutions incharge offormulating
trade policies, including national
andSub-regional sectoral
(agriculture, textiles, clothing &
natural resources) studies to
enhance government capacity for
analysis andformulation.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page39
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
Under thesame programme,
training oftrainers willstrengthen
enabling institutions designed to
support government officials and
private entrepreneurs intheirtrade
negotiations andineffort to
penetrate foreign markets.
ITC Support willbeprovided through
COMESA Trade Development
Programme. Inaddition, export
marketing workshops onselected
products willbeorganized under
ongoing regional project for
Africa.*
WTO During theperiod 1998/1999, asa
follow-up totheTrade Policy
Review ofZambia conducted in
1996, theWTO Secretariat will
helptheZambian authorities in
assessing theirtrade policy analysis
andresearch needs, orin
identifying possible institutions
where suchanalysis could take
place.
UNCTAD Workshops andseminars willbe
heldindirect support toWTO
negotiating process.*
*Funds arerequested.WT/LDC/HL/12/Add.12
Page40
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
-intensive training inexport
marketingUNDP/
UNCTAD/
ITCIntheperiod 1997-2000 Zambia
willbenefit from theCapacity
Building programme forTrade and
Development aimed at
strengthening thecapacity of
Institutions incharge offormulating
trade policies, including national
andSub-regional sectoral
(agriculture, textiles, clothing &
natural resources) studies to
enhance government capacity for
analysis andformulation.
Under thesame programme,
training oftrainers willstrengthen
enabling institutions designed to
support government officials and
private entrepreneurs intheirtrade
negotiations andineffort to
penetrate foreign markets.*
ITC Support willbeprovided through
COMESA Trade Development
Programme. Inaddition, export
marketing workshops onselected
products willbeorganized under
ongoing regional forAfrica.*
UNCTAD TRAINFORTRADE willcontribute
inthisarea.*
World Bank Enterprise Development Credits
support enterprises toacquire such
capacities. TheWorld Bank will
provide, asnecessary, assistance in
accessing these credits.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page41
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
-assistance tocreate awareness
among theprivate sectorITC Assistance willbeprovided during
theperiod 1997-1999 intrade
information, market research and
trade missions inparticular forfood
andbeverages, agro-based
products, leather goods. Thiswill
include theparticipation of
enterprises inbuyers-sellers
meetings, preparation ofmarket
researches andorganization of
dissemination seminars.
UNCTAD/
ITCATradepoint hasbeensetupinthe
treasury building inLusaka.
Areview ofitsfunctioning and
possible upgrading shallbe
undertaken.*
ITC/
UNDPTrade information support willbe
provided under theCOMESA
programme. Information on
current world market prices and
trends ofhorticultural produces will
beprovided under theMarket
News Service.
ITC Thedissemination ofatrade
financing guide on"How to
approach Banks" andrelated
presentation seminar willbe
organized in1998.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page42
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
2.Legislative reforms
-assistance tocarry outlegislative
reforms
IMF Strengthening customs valuation
andaligning thevaluation system to
WTO requirements (GATT
valuation code). 1998 (Commitment
inprinciple).
-reviewing andupdating customs
legislation andregulations, inorder
toalign them tointernational
standards andconventions andto
assure efficient collection of
revenue.
-rationalizing tariffs andtheir
coordination withthedomestic
indirect taxsystem.
WTO Assistance willbeprovided forthe
drafting/adaptation oflegislation
aimed attheimplementation of
WTO agreements. Implementation
between 1998-2000.
Customs valuation: Assistance will
beprovided during theperiod
1998-2000 foraligning thecustoms
valuation legislation withWTO
Agreement.
TRIPS: Assistance willbe
extended toZambia inaccordance
withtheCooperation Agreement
between WIPO andWTO providing
forWIPO legal-technical assistance
relating totheTRIPS Agreement.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page43
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
WTO Anti-dumping, Subsidies and
Safeguards: Assistance willbe
provided toZambia during the
period 1998/2000; thisassistance
willcomprise: a)assessment of
therequesting country needs inthe
contingent trade remedies area; b)
onthebasis oftheresults ofthis
assessment, technical assistance will
beprovided on:
(i)drafting national legislation;
(ii)establishing domestic trade
remedy system; (iii)training
national administration staff
responsible fortheimplementation
ofthetrade remedy system.
3.Acquisition ofequipment by
Government Ministries soasto
access information onmarket
opportunities andtechnological
developmentWorld Bank Enterprise Development Credits
support enterprises toacquire such
capacities. TheWorld Bank will
provide, asnecessary, assistance in
accessing these credits.
4.Access tobothmarket and
technology informationITC Assistance willbeprovided during
theperiod 1997-1999 intrade
information, market research and
trade missions inparticular forfood
andbeverages, agro-based
products, leather goods. Thiswill
include theparticipation of
enterprises inbuyers-sellers
meetings, preparation ofmarket
researches andorganization of
dissemination seminars.*
UNCTAD/
ITCATradepoint hasbeensetupinthe
treasury building inLusaka.
Areview ofitsfunctioning and
possible upgrading shallbe
undertaken.*
*Funds arerequested.WT/LDC/HL/12/Add.12
Page44
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) : ITC/
UNDPTrade information support willbe
provided under theCOMESA
programme. Information on
current world market prices and
trends ofhorticultural produces will
beprovided under theMarket
News Service.
UNDP
(UNOPS )Training workshop fortheuseof
theInternet togather market
information shallbeorganized.*
5.Establishment oftestlaboratories
forstandardsWorld Bank Identification andimplementation of
anappropriate andworkable system
ofstandards during theperiod
1997-2000. Thisassistance will
include:
a)assessment ofZambia 'sneeds
b)design ofprograms toinstall
appropriate systems including, as
appropriate, support fordrafting
oflegislation andregulation, and
training ofstaff.
*Funds arerequested.WT/LDC/HL/12/Add.12
Page45
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion C(d):
Technology capacity andhuman
resources
Thetechnological capacity andhuman
resources development inthe
accession andutilisation of
information onInternet orCD-ROM
isverylimited.
Very fewinstitutions haveresources
toprocure thenecessary equipment to
haveaccess toInternet. Assistance
thatwould berequired inthisarea
would include
Financial resources toacquire the
necessary equipment andtraining on
theuseofsuchequipment.UNCTAD TRAINFORTRADE and
Tradepoint programs willassist in
thisarea.*
Internet services asadevelopment
modality aswellasameans to
strengthen economic andsocial
development willbeestablished.*
World Bank Enterprise Development Credits
support enterprises toacquire such
capacities. TheWorld Bank will
provide, asnecessary, assistance in
accessing these credits.
WTO Onecomputer willbeprovided by
theWTO tothefocal point on
WTO matters intheMinistry of
Trade. Thisincludes alinkupto
theInternet. Training onaccess
anduseofinternet resources andof
CD-Roms willbeprovided tothe
focal point onWTO matters in
Zambia. (1998)
*Funds arerequested.