WORLD TRADE  
ORGANIZATION  WT/TPR/M/219 
23 September 2009 
 (09-4463) 
Trade Policy Review Body 
27 and 29 July 2009  
 
 
 
TRADE POLICY REVIEW 
 
ZAMBIA 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. John Gero (Canada) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF ZAMBIA 4 
III. STATEMENT BY THE DISCUSSANT 7 
IV. STATEMENTS BY MEMBERS 13 V. REPLIES BY THE REPRESENTATIVE OF ZAMBIA AND ADDITIONAL 
 COMMENTS  33 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 42 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Zambia are 
reproduced in document WT/TPR/M/219/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/219 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The third Trade Policy Review of Zambia was he ld on 27 and 29 July 2009.  The Chairperson 
H.E. Mr. John Gero (Canada) welcomed the dele gation of Zambia, headed by H.E. Mr. Felix C. 
Mutati, MP, Minister of Commerce, Trade and In dustry, and the discussant, H.E. Mr. Jean Feyder 
(Luxembourg).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by Zambia was contained in document WT/TPR/G/219 
and that of the WTO Secretariat in WT/TPR/S/219. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to  the delegation of Zambia:  China;  Argentina;  the European 
Communities;  Mexico;  the United States;  and Japan.  All advance questions, as well as the 
responses received from the delegation of Zambia are reproduced in WT/TPR/M/219/Add.1. 
4. The following delegations had submitted written questions after the two-week deadline:  
Canada and Brazil. 
5. The Chairperson said that he had considered the reports prepared for the review and noted the 
importance that trade plays in achieving higher le vels of growth and de velopment. Zambia had 
striven, with some albeit limited success, to impr ove the quality of more diversified locally produced 
goods and services and to increase the country's share in  regional and international trade.  However, 
despite efforts to diversify out of copper into agri culture, tourism and other services, the mining sector 
continued to play a critical and influential role in  the economy and in Zambia's external trade.  The 
dramatic drop in the copper price had accentuated  the resource constraints Zambia faced and 
highlighted the importance of continuing with st ructural reforms and economic diversification. 
6. As “aid for trade” was a main feature of Zamb ia’s TPR (indeed, chapter 5 was devoted to the 
subject), he would like to mention an important syst emic issue (concerning LDCs); that was, the need 
for donors to continue to provide such aid and ot her assistance, notwithstanding their current difficult 
fiscal circumstances.  In addition, Zambia’s TPR  provided Members with the opportunity to see a 
very good example of one of the many African countries that, aided by donors, had undertaken major 
economic reforms aimed, inter alia , at opening up their economies; such reforms seemed to have gone 
largely unnoticed outside Africa.  If Zambia and ot her African countries were to continue with these 
reforms, they would need considerable additional ai d in the future.  In this regard, he noted that 
Zambia hosted the North-South Regional Corridor C onference earlier this year, an important input 
into the Aid for Trade discussions held here in ear ly July, and the important role that a Zambian 
national was playing as the Executive Director of the Enhanced Integrated Framework. 
 WT/TPR/M/219 
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  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF ZAMBIA  
Background 
 
7. As you may be aware, Zambia is predominan tly a mining economy with over 70 percent of 
export earnings generated from coppe r exports, with the majority of  the Zambian people dependant on 
agriculture for their livelihood.  
8. Over the period under review, the country maintained macroeconomic stability through 
implementation of prudent monetary and fiscal policy.   However, in the third quarter of 2008, Zambia 
experienced a reversal in some of the gains made  as a result of the global financial and economic 
crisis.  
9. As part of Zambia’s efforts to diversify the economy, Government has recognized the role of 
trade policy in becoming a middle income country as articulated in the vision 2030. 
10. Among trade related policy measures implemented include:  the removal of foreign exchange 
controls;  the rationalisation of the import and e xport regime by abolishing license requirements, 
except where such are required to meet legitima te human and animal health, plant protection, 
environmental and other related concerns;  the simp lification of Zambia’s import tariff structure to 
four bands of 0, 5, 15 and 25% with a simple average applied Most Favoured Nation (MFN) rate of 
about 13%, and decontrol of prices. 
Policy Reforms since the last review of 2002 
 
11. The Government has continued to uphold the pr inciples of liberalization, which have resulted 
in Zambia being among the most open economies in the world. 
12. In 2004, the Government embarked on a five year (2004-2009) Financial Sector Development 
Plan aimed at creating a sound and well functioni ng financial sector with a view to facilitating 
Zambia’s  diversification efforts. 
13. The government has continued to promote measu res aimed at diversification and improving 
the competitiveness of the Zambian economy with  focus placed on developing the tourism, 
agriculture and the manufacturing sectors.   
14. In order to achieve the 2030 vision, the fifth national development plan (FNDP) targets rural 
development as a tool to diversify its export base- This will be achieved through opening farm blocks 
in various parts and opening up tour ism circuits, especially in the Northern and Luapula provinces.   
15. Since the last review of 2002, the Governme nt has taken additional trade and economic 
reform measures aimed at facilitating the increased pa rticipation of both foreign and local investors in 
productive activities. 
16. During the review period, Zambia adopted th e Private Sector Development Reform (PSD) 
Programme, with a view to creating an enabli ng environment for private sector led growth.  
17. A one stop shop for investment license has been established under the Zambia Development 
Agency Act to facilitate business transaction. 
18. We will soon be commissioning the Chirundu One Stop Border Post as part of improving the 
flow of goods and services across Zambia’s border with Zimbabwe. We intend to replicate this 
concept to other borders.  WT/TPR/M/219 
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  19. Deliberate steps have been taken to encourage growth of the manufacturing sector in order to 
tap into the wider regional and international markets through the establishment of Multi-Facility 
Economic Zones. 
20. Additional competition has been established in th e provision of mobile and internet services. 
With the commercialization of the Zambia Electri city Supply Corporation (ZESCO) and the setting up 
of the optic fibre network, we expect to see further improvements in the delivery of 
telecommunication services in Zambia 
21. At the regional front, Zambia has continued to participate in the regional integration process 
within SADC and COMESA with a view to enhancing intra-regiona l trade and ultimately facilitate 
economic growth and developmen t through harmonisation efforts under the SADC, COMESA and 
EAC framework.  
22. Zambia has been actively involved in champi oning the implementation of the North South 
Corridor whose ultimate objective is to facilitate trade and reduce the cost of doing business in the 
region. 
23. At the multilateral level, Zambia believes that the WTO is an important fora for promoting 
freer and fairer trade through a predictable trading e nvironment that is governed by rules. In order to 
facilitate the integration of countries like Zambia, in to the global trading system, it is important that 
the setting of rules takes into account the necessa ry flexibilities that facilitate the adoption by 
countries like Zambia, of policies at domestic level needed for the promotion of growth and development.  It is for this reason that we l ook forward to an outcome in the current round of 
negotiations that places the needs of LDCs  at the centre of global rule making. 
24. We would also like to call upon this august house to uphold the decision of Ministers in Doha 
to make special and differential treatment provisi ons of the WTO precise and effective so as to 
facilitate the flow of benefits from the mu ltilateral trading system to our economies.  
25. We welcome the initiative taken to enhance th e integrated Framework for least developed 
countries and the adoption of the Aid for Trade Initia tive to deal with specific trade related concerns 
of developing and least  developed countries. 
26. Zambia remains committed to the multilateral pr ocess and pledge our continued constructive 
engagement in the conclusion of negotiations  under the Doha Development Agenda.   
Achievements 
 
27. As a result of the reform measures undertaken  by Government:  we recorded an average 
annual growth rate of not less than 5% over the period under review;  external debt significantly 
reduced as a result of successfully implementing the PRGF resulting into the attaining (Highly 
Indebted Poor Countries) HIPC completion point in 2005;  has witnessed improvements in investment flows since the implementation of the privatiza tion programme, the establishment of the Zambia 
Development Agency (ZDA) and the rationalizati on of the business environment;  the Export led 
policies have contributed to enhancing the perfo rmance of Zambia’s non traditional exports which 
have expanded from just about US $ 368 million in  2002 to approximately US$ 1 billion by 2008 and 
accounting close to 30% of Zambia’s total export ear nings;  and managed to bring inflation rate to 
single digit of about 8.2 percent in 2007. WT/TPR/M/219 
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  Challenges 
 
28. The greatest challenge that Zambia faces is sustaining   economic growth and reducing the 
high levels poverty.   The Challenges ari se from both internal and external factors. 
29. Internally, we are still grappling with institutiona l and infrastructural deficiencies;  many of 
our sectors (manufacturing, Agriculture, services) are s till in their infancy stage;  the private sector is 
still requires a lot of nurturing to effectively sp earhead economic growth;  the cost of doing business 
remains high due to, among other factors, regulatory requirements;  the country lacks resources to undertake research and development, which is critical to the growth of industry;  we are constrained 
by limited domestic investment capital and a lack savings. 
30. Externally, the growth of Zambia’s export trade continues to be at the mercy of our trading 
partners and external factors beyond our control. 
31. In terms of market penetration, the standa rds and technical requirements maintained by 
trading partners continue to be a challenge. Th is problem has further been compounded by the 
proliferation of private standards, which are beyond the capacities of our economy and are thus 
deemed as a barrier to the enhancem ent of Zambia’s non traditional exports. 
32. As regards other exogenous fact ors emanating from the complexities of the global economy, 
the current down turn in the global economy has had an adverse effect on demand of exports and consequently, commodity prices on the internationa l market have gone down. The resulting effects on 
Zambia have been: 
33. A substantial reduction in the intake of revenue from copper sales, which in turn has had 
negative effects on Zambia’s current account, the exchange rate and pla nned capital expenditure. 
34. Delayed implementation of commitments relate d to duty free and quota free market access, 
simplified rules of origin, enhanced access of service providers and services originating from countries like mine has an effect on the quick recovery from the global financial crisis.  
Future growth prospects 
 
35. Zambia’s future growth prospects are largel y dependent upon addressing both internal as well 
as external factors.  
36. Internally, we will try our level best to address the bottlenecks with the limited resource 
available. Where we are constrained, we w ill call upon our cooperating partners to continue 
supporting us as they have diligently done in the past. 
  WT/TPR/M/219 
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  III. STATEMENT BY THE DISCUSSANT (H.E . Mr. Jean Feyder (Luxembourg)) 
Introduction. Zambia, a Least Developed Country 
 
37. Zambia is still one of the poorest countries in the world. It figures at the 165th position in the 
2007/2008 Human Development Index out of a total of 177 countries.  
38. Zambia has a population of 11,5 million, more  than twice the 1975 population (5 million). 
Despite a declining fertility rate, a continuous stro ng population growth will l ead to a population of 
close to 14 million by the year 2015. 65% live in rural areas and 45 % have less than 15 years.   
39. Life expectancy is only 40,5 years, down from 41 years in 1999. About 68%  of Zambians live 
below the recognized national poverty line with rural poverty rates standing at about 78% and urban 
rates of 53%. 
40. The alphabetisation rate for the 15-24 years ol d is 69% for the 1995-2005 period, 3 % more 
than in the previous decade.    
41. Zambia has 12 doctors for 100 000 people. Infant and mortality rates are high. HIV/Aids has 
largely contributed to a declining life expectancy . The social and economic costs of this pandemic 
should and can’t be overestimated. In addition, Za mbia is heavily affected by the brain drain 
especially in the field of medical workers. 
42. 58% have access to improved water sources, 46%  are still undernourished, only 2% less than 
10 years earlier. 
43. These figures show the development challenges Za mbia has to face. They underline the fact 
that trade has to be shaped mainly as an instrument in the fight against poverty. It is also against this 
background that Zambia’s Fifth National Developmen t Plan (FNDP) for the 2006-2010 period has to 
be assessed. 
44. Are the Millenium Development Goals integrated into that Plan ? To what extent is 
Zambia likely to reach the MDG’s?  
Economic Environment 
 
45. Zambia’s economic indicators over the last y ears are positive and encouraging:  real GDP 
growth has been of the order of 5-6% between 2003 and mid-2008; FDI inflows have increased 6-fold 
with most going to mining.  Zambia improved its external position with significant declines in the 
current account deficit and external public debt. Infl ation was also brought under control for most of 
the review period, falling from 26,7% in 2002 to ju st over 8% in 2006, its lowest level in 3 decades. 
International reserves have improved and are at 1 billion US$ representing nearly three months of 
imports. 
46. These results are due to various factors:  ther e is first the strong demand for copper on world 
markets and, as a result, the increase in copper produc tion and the high price for copper. In addition, 
the Government has implemented a number of econom ic reforms for which it has to be commended. 
Since its last review, in 2002, Zambia has been pr omoting economic diversifica tion, privatization, and 
trade liberalization as well as macro-economic stabilisation measures.   
47. The analysis of the most recent figures however show that since mid-2008, and as a result of 
the crisis, the fall of the copper price by more th an 60% is leading  to a steep decline of export WT/TPR/M/219 
Page 8  
 
  revenues including job losses, mainly in the mining sector. The inflation rate was pushed up to some 
16%. As a result, a number of social and economic achievements are threatened.  
48. Overall, Zambia’s economy continues to be w eakened by a large degree of vulnerability and 
dependency of just one commodity: copper. Copp er is Zambia’s primary export commodity. It 
accounts for over 3/4 of total exports, up from 2/3 in  2002. The lack of currency stability is another 
element of economic vulnerability.  
49. Some economic diversificati on has nevertheless taken place. Non-traditional exports 
including agricultural exports have grown by  20% since 2002, moving up from 200 million US$ to 
1 billion US$ by 2008. These efforts have to be sust ained and strengthened in any future development 
strategy. The suggestions in the Secretariat’s report listing a number of factors that impair 
competitiveness and limit economic diversifi cation deserve careful consideration. 
50. Could the Government of Zambia specify the policies and measures it is undertaking to 
further diversify its exports? 
51. In addition, and despite the strong growth ove r a period of time, large sections of the 
population have not benefited from the 2003-2008 copper boom. Nearly tw o-thirds of Zambians still 
live in poverty and, as already mentioned, rural popul ation is particularly hit by poverty only 3% 
having access to electricity and less than 1% owning a telephone.  
52. What measures does the Government envisage to make sure that growth is really 
serving the purpose of poverty reduction?  
Trade agreements 
 53. Regionally, Zambia's participates in various regional and bilateral ag reements. The regional 
agreements include: the Common Market for E astern and Southern Africa (COMESA) and the 
Southern African Development Community (SADC).  But Africa's share of Zambia's exports has 
declined from 38% in 2002 to 28% in 2008. Further in tegration is planned w ith the African Economic 
Community (AEC), to establish a common FTA.  
54. Given the level of development and the urgent  need for diversification of its economy, 
Zambia might have an interest to seek access to  new markets, first of all in the sub region. 
55. How does the Government of Zambia tackle the difficulties arising from overlapping 
membership in various initiativ es?  How does Zambia assess the ongoing efforts aiming at the 
establishment of a single customs union between the East African Community (EAC), SADC and COMESA both in terms of calendar and of impact on its economy?  
56. At the bilateral level, Zambia is negotiating an Economic Partnership Agreement with the EC 
which might lead Zambia to open gradually its market  to EC products in return to free access to the 
EC market. An adequate dimension of developm ent ought to be an essential part of such an 
agreement. The African Growth and Opportunity Act (AGOA) is providing Zambia duty-free market 
access to the U.S market for substantially all products. 
57. In reference to the Doha Development Ag enda, Zambia underlines the importance of 
development and implementation issues such as Duty  Free Quota Free (DFQF) market access, with 
user friendly rules of origin, access to Special Safe guard Mechanism (SSM), an ambitious solution to 
the cotton issue and reduction of trade-distorting agricultural subsidies and domestic support.  Key 
areas of interest for Zambia also include concludi ng the trade facilitation negotiations in a way that 
provides Technical Assistance (TA) and Capacity Bu ilding (CB) to land-locked countries. Also of  WT/TPR/M/219 
 Page 9 
 
 
  concern is support to transport, communications and energy infrastructure projects in line with the 
North-South Corridor Aid for Trade pilot project.  
58. During these negotiations, Zambia was coordina ting the work of the group of 50 LDC’s, 
putting up negotiating positions on the va rious chapters of the negotiation. 
Trade policies 
 
59. The private sector plays now a greater role in the national economy, following the 
privatization programme initiated ten years ago. 
60. Zambia included trade as an integral part of the medium term planning process (i.e. the fifth 
National Development Plan in 2005 (which runs fro m 2006 to 2010) as part of trade mainstreaming in 
national development planning. 
61. It has undertaken major reforms to respond to  concerns relating to business and investment 
facilitation. A one stop business centre (the Zambia  Development Agency) has been established to 
facilitate investment in Zambia. A Private Sector  Development (PSD) Reform Programme has been 
adopted to facilitate consultati ons/dialogue between the public an d private sector representative on 
matters relating to improving the business environment.  It has adopted a policy to facilitate public – 
private – partnerships. It intends to facilitate trade flows at border posts. 
62. Zambia has since 2002 an average applied MFN ta riff of 13,4%, the same as in 2002. For a 
least developing country, this is a rather low averag e level. The bound rate is 105,7% and there is an 
absence of bound rates for 83% of tariff lines. This o ffers Zambia a remarkable degree of flexibility. 
Applied rates have not been in creased during the review period. Ad valorem  tariffs account for 97.8% 
of all tariff lines, which lends a high degree of tr ansparency to the tariff, although for the remaining 
2.2% (up from 1.3% in 2002) ad valorem equivalents are not available. Agriculture has an applied 
average MFN tariff rates of 19,1%. 
63. Any further liberalization should take into car eful consideration the need for Zambia to 
expand and diversify its production lines and capaciti es, to build a genuine economic fabric for the 
different economic sectors which can only be achieved over a longer time period. 
64. Zambia maintains export prohibitions on certain  logs under international agreements and, 
occasionally, for grains. Exports, particularly maize,  were occasionally subject to bans, a situation 
unchanged from the previous revi ew. The 2008 budget encourages local value addition by introducing 
an export levy on the export of copper concentrat es and cotton seed given that local capacity is 
available to process these products.   
65. Zambian standards were based mainly on intern ational standards developed by international 
standard-setting bodies. Zambia faces some testing challenges related to compliance with standards 
required by trading partners and to effective im plementation of WTO SPS and TBT agreements.  This 
can be seen as a priority area in which technical assistance is needed to reform regulatory framework 
and effectively implement agreements.  
66. With regard to government procurement, the Zambia National Tender Board Act of 1982 has 
been superseded by the Public Procurement Act n.12 of 2008 as the legal framework governing 
procurement. Zambia is neither a member nor an observer to the Plurilateral Agreement on 
Government Procurement.  WT/TPR/M/219 
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  67. Can Zambia provide more information on the new regulatory framework and how the 
Government ensures the transparency of the current procurement practices and whether Zambia has any intention of joining the GPA, either as a member or as an observer?  
68. As a least developed country, Zambia benefited from the special and differential treatment in 
implementing the TRIPS Agreement, afforded by Arti cle 66.1.  Zambia is considering how to amend 
its legislation on intellectual property to fully align it with the TRIPS Agreement, although no 
changes had been enacted since its last Review.  
69. What are the Government’s intentions in this regard?  
Sectoral Policy Developments  
 70. Mining and quarrying remains the backbone of the Zambian economy and mining output has 
increased. Zambia’s exports are highly concentrated in copper, the price of which is volatile.  The 
international price of copper has risen steadily during the review period, from around US$1,560/tonne 
in 2002 to a record high in the middle of 2008 of nearly US$9,000. Since then, prices have dropped by more than 50%, to as low as US$3,105 in Decem ber 2008. The sustained rise of copper during 
most of the review period was due in large m easure to increased demand from the People's Republic 
of China, which in 2002 had overtaken the United States as the world’s largest importer of copper. It 
remains to be seen how resilient demand will be in 2009 and beyond. 
71. The Government is aiming at strengthenin g the link between primary extraction and 
industrialization by adding value to primary goods, especially those for exports. What practical steps 
does the Government envisage to take to that effect? 
72. Important changes have also occurred in the regulatory and tax regime. In April 2008, the 
Government introduced a new tax regime. In recogn ition of high copper prices and the generally more 
favourable investment climate, the tax regime was re vised to be more consis tent with international 
standards. The major change was the increased rate  of corporate income tax for companies in the 
mining sector from 25% to 30% and the rate of mine ral royalties for companies in base metals mining 
from 0.6% to 3% of the gross sales value. It rema ins to be seen whether the revised regime ensures 
that the nation as a whole receives a fairer share of the country's natural resource rents, while 
maintaining a globally competitive mining industry.  
73. What is the Government’s assessment in this regard?  
74. Zambia's agriculture sector accounts about two- thirds of employment but less than one-fifth 
of GDP. It is thus the main source of income a nd employment for the majority of Zambians. Agri-
processing industries which depend directly on  agriculture, constitute 60% of Zambia’s 
manufacturing. 
75. As part of Zambia’s poverty reduction strategy  exercise, the Government intends to place 
agriculture as the leading sector for food security , - aiming at a 90% sufficiency level - economic 
growth, and poverty alleviation, and it has formul ated ambitious objectives for the sector. Given the 
importance of the rural economy and given the pove rty rates in rural areas, this is a welcome 
development. 
76. However Zambia’s Government seems to rely in  this regard to an important extent on the 
private sector, mainly large-scale commercial farmers. However, the vast majority of farmers are poor 
small-scale producers who, according to the World Bank, offer a vast potential for productivity 
increase.  WT/TPR/M/219 
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  77. Zambia has indeed the potential for significan tly increasing its agricultural output. Currently, 
less than 50% of its arable land is cultivated. 
78. What is the priority given to small-scale farmers? What about rural infrastructure 
development which would permit small peasants to move out of subsistence farming enabling 
them to bring their products to local markets?  How does it intend to deal with issues like low 
producer prices, access to credit and inputs and research?  
79. Manufacturing accounts for about 10% of GDP a nd employs between 11 and 12% of formal 
labour.  The development of Zambia’s manufacturing sector is still being retarded by high production 
costs; energy; transport and telecommunication servi ces; interest rates on loans, etc. Textile and 
clothing manufacture has declined due to competiti on from lower-cost Asian Manufacturers after the 
expiry of Textiles and Clothing Agreement in 2005.  
80. What measures is the Government of Zambia undertaking in order to reduce high 
production costs and improve productivity? How is the Government assessing the textile sector 
decline including in terms of employment? Do es it consider any measures to remedy that 
negative development?  
81. Zambia’s services sector accounted for over 60% of GDP, making its performance critical for 
growth and poverty reduction. Zamb ia's services exports consist ma inly of tourism and transport. 
Tourism is increasingly seen as an important fore ign exchange earner and as having potential for 
diversifying the economy. Promotion of the tour ism sub-sector and im provement in services 
infrastructure, such as telecommunication and transportation, would be extremely important for the economic and social development of Zambia. Ro ad transportation services are likely to remain 
buoyant but the low coverage and high cost of telecommunication services is of some concern.  
82. What sub-sectors does the Government intend to promote to increase exports of 
services, and what measures the Government believes necessary in order to provide 
telecommunication services to the people of Zambia?  
83. Zambia has a sound well-functioning financial sy stem where foreign banks play a key role, 
although only a few large corporations and a fe w SME have access to credit and only 15% of 
Zambia’s adult popula tion have a bank account. 
Institutional Transparency 
 
84. Transparency International has not registered significant improvements in the public 
perception of corruption in Zambia in recent years. In 2008, Zambia ranked 115
th out of 180 countries. 
Corruption and theft are cited among the top fi ve constraints facing the business community. 
85. What measures does the Government envisage  to take to improve this situation?  
Aid for trade 
 
86. Zambia has been at the forefront of aid-for-trade discussions and represented the LDC’s in the 
Aid-for-Trade Task Force created pursuant to th e Hong Kong Ministerial Declaration. Zambia has 
identified three priority areas: network infrastructure (power, water, telecommunication); cross-border infrastructure; and export diversification.  
87. In 2007, Zambia received 556 million US$ in aid equivalent to 4,9% of GDP. During the 
2002-2005 period, it got an average of 168 milli on US$ out of its ODA, WTO being among the WT/TPR/M/219 
Page 12  
 
  biggest providers. Zambia is a beneficiary of the EI F, JITAP II as well as WTO trade-related technical 
assistance.  
88. Could the Government assess the impact and po tential of these initiatives in particular 
those specifically designed for LDC’s?  
89. Facilitating trade is a major challenge. Tran sport costs are high, because Zambia is 
landlocked, but also because of inefficiencies and st ructural weaknesses in the transport network with 
about 75% of the rural road network in poor condition. 
90. The North-South Corridor project having the potential to respond to these needs, what 
is the calendar of implementation of this pr oject? Is the Government preparing other maybe 
complementary projects?  
Conclusions 
 
91. Poverty reduction remains Zambia’s main challe nge. Trade needs to be a main component of 
any strategy to fight poverty and develop the country.  
92. Zambia is a landlocke d country whose economy is heavily  dependent on copper production 
and export. In addition, the high price volatility of that mineral makes it imperative that Zambia 
pursues active policies to diversify its economy a nd its production and export lines. New capacities 
have to be put into place.  
93. Trade facilitation including infrastructure impr ovement are also to be put high on the 
economic policy agenda.  
94. By giving a new priority to agriculture and small-scale producers, Zambia could exploit a 
huge production potential, enlarge agro-businesses as well as making decisive progress in the fight 
against poverty.  
95. Finally, Zambia should focus on human re source development and new transparency 
measures in order to promote trade and entrepreneurial capacities.  WT/TPR/M/219 
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  IV. STATEMENTS BY MEMBERS 
CHINA 
96. We highly commend the Zambian Government in  launching the fifth National Development 
Plan to meet their long term development objec tives. We are very happy to note that during the 
review period, Zambia has registered strong ma croeconomic gains with economic growth rates 
averaging over 5% annually and with inflation dr opping to single digit in 2006 and 2007. FDI inflows 
increased almost six-fold. Current account deficit d eclined from 17.4% of GDP to 7.4% and external 
public debt declined from nearly 180% of GDP to  only 10%. However, these gains have somewhat 
been eroded by the global financial crisis. In this regard, we take note that one of the priorities that 
Zambia has identified in Aid for Trade is on export diversification and cross-border infrastructure. We 
therefore call upon all donor countries and organizations  to tailor their assistance to the real need of 
benefiting countries like Zambia and to help them re ap the fruit of globalization and integration into 
the world economy.  
97. Zambia has played a very important role in the Doha Round of negotiations as the coordinator 
of the LDC Group. Under its coordination, the LDC group has successfully come up with common 
negotiating positions on agriculture, NAMA, services,  rules of origin, TRIPS and other issues. We 
commend Zambia for its commitments to the Doha  Development Agenda and for its constructive 
contributions. It is through the joint efforts from LDCs that developed count ries have committed in 
Hong Kong to provide duty-free-quota-free market a ccess to at least 97% of products from LDCs. 
China would like to take this opportunity to reitera te our support to the DFQF treatment for LDCs in 
the DDA. I would also like to thank Ambassador Darl ington Mwape for the great contributions he has 
made to the Doha Round and for successfully leading the Committee on Balance of Payments 
Restrictions to conclude two consultations on Ecuador and Ukraine respectively.  
98. China and Zambia are very close trade partne rs. During the review period, trade between 
China and Zambia almost quadrupled. In 2008, bilateral trade amounted to 800 million dollars, 
representing a growth of 37%. Currently, there are around 200 Chinese enterprises operating in 
Zambia with accumulative direct investment of more  than 1 billion dollars. I sincerely hope with the 
duty-free-quota-free treatment provided by China to products from Zambia, the potential will be 
greatly tapped for further e xpansion of bilateral trade. 
ARGENTINA 
 
99. Regarding Zambia's economic e nvironment, we would underline the fact that between 2003 
and mid-2008, Zambia's economy moved from stagna tion towards steady growth, greater prosperity, 
and better access to foreign investment.  Real GDP gr ew at an annual average rate of 5-6 per cent, led 
by the mining, construction, and services sectors.  FDI inflows increased nearly six-fold, reaching an 
estimated US$1.3 billion by 2007.  The mining sector attracted more than half of foreign investment.  The increase in copper production, the five-fold rise in world copper prices, and debt relief allowed 
Zambia to improve its external position significantly. 
100. We also highlight Zambia's active role in the WTO, and especially the Doha Round 
negotiations.  Zambia has coordinated the LDCs' wo rk, chairing meetings in order to reach common 
negotiating positions on various issues, and making submissions on behalf of the group, covering, 
inter alia , agricultural and non-agricultural market access, rules of origin, services, dispute settlement, 
TRIPS, and Aid for Trade.  Zambia has undersco red that a successful outcome of the Doha Round 
should fully take into account development-related issues, as reflected in the 27 February 2008 
Maseru Declaration. WT/TPR/M/219 
Page 14  
 
  101. Bilateral trade is limited to a small number of  products, which in 2008 accounted for a total of 
around 700,000 dollars, with  a positive balance for our country of  around 441,295 dollars.  Trade with 
Zambia fluctuates considerably in terms of volume and products, with abrupt variations from year to 
year in the overall bilateral trade balance and in  surpluses or deficits recorded by Argentina. 
102. In the three-year period 2006-2008, Argentina's main export products were meat and edible 
offal, dairy produce, other products of animal or igin, plastics and articles thereof, pharmaceutical 
products, furniture, and electrical machinery. 
103. Argentina emphasizes its excellent bilateral relations with Zambia.  As a recent example of 
cooperation between the two countries, in Apri l 2009 the Zambian Minister of Science and 
Technology, Gabriel Namulambe, visited Argentina at the invitation of our country's Ministry of 
Science, Technology and Productive Innovation.  Th e Zambian delegation met with officials and 
experts of the Ministry of Science, Tec hnology and Productive Innovation, INTA, SENASA, 
CONICET, and the Leloir Institute.  The purpose of  the visit was to identify cooperation programmes 
within the framework of the Memorandum of Unders tanding between Zambia's Ministry of Science, 
Technology and Vocational Training and Argentina's Ministry of Science, Technology and Productive 
Innovation, signed in Lusaka on 18 September 2008 during the visit to Zambia of Argentina's 
Minister of Science, Technology and Productive Innova tion, Lino Barañao.  It was agreed to establish 
a Joint Science and Technology Committee with a vi ew to the next meeting of the Joint Commission, 
which is to be held in Lusaka.  It was also ag reed that cooperation should prioritize human resources 
training and that Zambia would present candidates for short-term training in the field of global climate change and long-term training in animal health.  Za mbian scientists will travel to Argentina to receive 
technical training in various of the country's research facilities. 
EUROPEAN COMMUNITIES 
 
104. First, allow me to say a few words about th e long-standing partnership between the EC and 
Zambia.  
105. As an LDC, Zambia has since 2001  been able to export its products to the EC quota- and duty 
free under the "Everything But Arms" initiative. In 2007, its exports to the EC market amounted to 
436 million EUR, about half of wh ich were non-traditional exports. 
106. A milestone was reached at the end of 2007 as Zambia and the EC initialled an interim 
Economic Partnership Agreement c overing trade in goods, including also provisions on fisheries, 
trade defence, rules of origin as well as a developm ent cooperation chapter. Th is interim EPA regime 
provides Zambia with improved conditions of duty free and quota free market access in the EC while 
negotiations continue towards a full EPA that w ill also cover technical regulations, SPS measures, 
trade facilitation, services and investment. 
107. The EPA process has been accompanied with substantial technical and financial assistance to 
address key supply-side constraints to trade expansi on and diversification. This year, for example, 
2 million EUR from the European Development Fund ar e foreseen for enhancing Zambia’s capacity 
to comply with European sanitary and phytosanitary standards, as a means to promote its agricultural 
exports. As a part of Accompanying Measures for S ugar Protocol countries (AMSP) a separate sum of 
6 million EUR over 2007-2010 has been earmarked  to strengthen the competitiveness of the 
production of sugar and promoting the economic dive rsification of sugar-dependent areas,  since 
sugar is an important export product for Zambia.  
108. Such Aid for Trade comes as part of growi ng overall development assistance provided to 
Zambia by the EC and its Member States. Through the European Development Fund alone Zambia is 
set to receive funds of nearly 500 million Euros between 2008 and 2013, with a particular focus on  WT/TPR/M/219 
 Page 15 
 
 
  regional integration and transport infrastructure. Mo reover, Zambia benefits from EC's support at the 
regional level with an overall envelope of 654  million EUR over 2008-2013, of which 60 million 
EUR have for example been earmarked for the North South Corridor. 
109. The EC believes that the combination of an EPA  and such assistance can have a major impact 
on Zambian trade and development - not only by virtue of improved market access, but also as a 
catalyst for accelerated structural reforms and deeper regional integration. 
110. Let me now make some comments on Zambia's economic, and more specifically trade and 
trade-related policies.   
111. The challenges faced by Zambia in terms of ac hieving high-rates of sustainable and broadly 
shared economic growth are significant. It is true  that in the period 2002-2008 real GDP increased on 
average by about 5% per year. However, this was driv en to an important extent by transient factors, 
most of all, the boom in copper prices. As th e current global economic downturn is once again 
demonstrating, such factors cannot be relied on fo r solely delivering sustained economic growth and 
poverty elimination. Therefore Zambia needs to develop a more diversified economy and trade and 
trade policies will play a major role in this regard. Zambia has made a key step in the right direction 
by mainstreaming trade in its current nati onal development plan for the first time. 
112. At the implementation level, we applaud th e government of Zambia for the number of 
essential reforms being taken with the view to st abilizing the economy, reducing the cost of doing 
business and improving the investment climate (s uch as public finance management reforms; 
streamlining and strengthening of financial regulation; new policies in other key services sectors, 
notably transport, energy, ICT and tourism; shortening of business registration time which has been a 
major problem and the simplification of customs procedures). 
113. These efforts have started to show results in terms of lessening Zambia’s dependence on 
mining for exports and growth. However, the econom y remains affected by a number of structural 
obstacles. These stand in the way of a more rapid expansion of even those alternative sectors with an inherent potential, such as agriculture , agro-processing industries and tourism. 
114. Development of transport infrastructure – na tionally and regionally, bearing in mind the 
country's landlocked status – is rightfully high on  the Zambian Government priority list. I have 
already mentioned the financial support of the EC of  for this purpose. Yet the transport sector – as 
well as electricity, oil refining and fixed-line tele phony – are also afflicted with inefficient and 
expensive services as they remain controlled by state-owned monopolies. Facilitating more private 
competition in these sectors will be key to address s upply shortages and reducing the high costs that 
hamper the relative competitiven ess of Zambian enterprises.  
115. Now a few remarks on some specific trade issues.  
116. I first note that Zambia still has over 83% of tariff lines unbound and where binding exist they 
far exceed its applied rates. There is thus much scope for Zambia to make better and more extensive 
use of bindings to enhance predictability for trader s. That in no way interferes with the agreement, 
fully supported by the EC, that LDCs will be  exempt from tariffs reductions under the DDA. 
117. Effective implementation of WTO TBT and SPS agreements is closely linked to Zambia's 
ability to meet the standards applied by its trad ing partners. We acknowle dge and are acting upon 
assistance needs in this regard. 
118. I would also like to welcome the announced re view of intellectual property legislation to 
establish a TRIPS-compliant regime.  WT/TPR/M/219 
Page 16  
 
  119. My final remark is on Zambia's involvement in  regional trade arrangements. The EC supports 
regional economic integration, pa rticularly among small developing countries in order to create the 
economies of scale. The EPAs have been specially desi gned to do this. Yet there is a risk of resource 
overstretching, increased complexity and incohere nt obligations in cases of parallel initiatives. We 
would thus be interested to hear what approach Zambia – being a member of both SADC and 
COMESA – has envisaged for avoiding such a situation.  
120. To conclude, let me once again assure Zambia of the EC's full support – in the context of the 
EPA, WTO and beyond – in the further efforts n ecessary to create an environment conducive to 
growth and trade. 
MEXICO 
121. We note that Zambia's macroeconomic and struct ural reforms have contributed to the growing 
diversification of the country's economy and positive overall performan ce.  GDP growth in the period 
2002-2008 averaged 5 per cent per year, with an estimated 4 per cent for 2009.  Zambia has a very high unemployment rate of around 50 per cent, which remains one of the country's major concerns.  
The government is the country's main job provid er, accounting for 37 per cent of total employment. 
122. Zambia's monetary and budget policies were instrumental in bringing inflation down from 
26.7 per cent in 2002 to a single-digit figure of 8.2 per cent in 2006.  On the other hand, in 2007 the interest rate rose to 8.9 per cent as a result of a liq uidity overhang in the banking system.  In 2008, 
inflation surged dramatically to 16.6 per cent as a result of rising food and oil prices and the 
depreciation of the kwacha caused by the global financial crisis. 
123. Zambia remains committed to pursuing polici es aimed at the expansion of markets at 
bilateral, regional and multilatera l level.  Between 2002 and 2008, Za mbia continued to implement a 
trade policy aimed at diversifying into non-tr aditional exports in order to move away from 
overdependence on copper exports.  As a result of t hose policies, exports of non-traditional products 
increased by 12.2 per cent between 2007 and 2008. 
124. We note that according to a needs assessment  conducted in 2007, Zambia was already 
consistent with 26 of the 71 proposals considered  in the trade facilitation negotiations, partially 
consistent with 27, not consistent with nine, and that another nine were not yet being applied.  The 
projects yet to be implemented include an auto mated payment system, expedited shipment, single 
window submission, and pre-shipment inspection. 
125. However, we commend the Zambian Government  for strengthening the standardization, 
certification and inspection units of the Zambia Bur eau of Standards so that more efficient services 
are provided for importing and exporting, thus ensu ring conformity with in ternational and regional 
standards and technical requirements. 
126. We share the objectives pursued by Zambia.  Mexico has an ambitious liberalization agenda 
in terms of both tariff reduction and other trade fac ilitation measures.  We believe that trade expansion 
is one of the best remedies for dealing with the current economic crisis.  We welcome the fact that 
Zambia is working towards effective trade liberalization. 
UNITED STATES 
127. I would like to begin by acknowledging Zamb ia’s impressive overall economic performance 
during most of this review period.  We see the centr al role that copper plays in Zambia’s economy and 
appreciate how Zambia’s dependence on one commodity  can have deleterious effects for the nation’s 
well-being.  But we also recognize that substantia l debt relief along with the Zambian government’s  WT/TPR/M/219 
 Page 17 
 
 
  prudent macroeconomic policies and ongoing structural  reforms, of which trade liberalization is an 
integral part, all contributed to Zamb ia's economic gains through mid-2008.  
128. Unfortunately, as the Secretariat report poi nts out, Zambia’s dependence on mining has 
limited its progress in developing other sectors.  We know that diversifying out of copper has been a 
longstanding objective of Zambian governments.  Achieving that goal, despite the government’s 
improved macroeconomic management , seems to have eluded Zambia.  The Secretariat report notes 
slow progress in reducing the domestic cost of doing business and improving productivity (and therefore international competitiveness) in non-mining sectors to achieve diversification.  Like all of 
you, we look forward to a short-lived global slowdo wn.  But we agree that economic diversification 
remains key to Zambia’s national gr owth and development.  The Secretariat advises that, to realize its 
objectives, Zambia ought to, among other things, co ntinue prudent macroeconomic management and 
ensure that revenues generated by the copper sector ar e used to build productiv e infrastructure as well 
as support for delivery of social services.  We would cons ider this to be sound, worthwhile advice.  In 
addition, we support the Zambian government’s efforts to promote the agricultural sector as a critical 
aspect of its diversification plan and hope Zamb ia establishes WTO-consistent import and export 
policies to foster investment in this critical sector.   
129. The United States enjoys a strong bilateral trad e relationship with Zambia.  Two-way United 
States-Zambian goods trade increased ten percent in 2008, totalling $130 million, with trade rising in 
both directions.  Zambia is eligible for trade preferences under the African Growth and Opportunity 
Act (AGOA); and, in recent years, substantially a ll Zambian imports have entered the United States 
duty-free, either under AGOA, the Generalized System of Preferences (GSP), or zero-duty most-
favored-nation provisions.  Ne vertheless, U.S imports of products from Zambia under AGOA and 
GSP have been modest and are comprised mostly of  refined copper products.  We want to work with 
the Zambian government to find ways to incr ease Zambia’s utilization of AGOA and GSP trade 
preferences and to diversify its trade with the Un ited States.   The USAID-funded Southern Africa 
Global Competitiveness Hub is already working with  the Zambian government and private sector to 
help maximize trade opportunities under AGOA. 
130. In 2006, Zambia signed a two-year, $22.7 milli on threshold agreement with the Millennium 
Challenge Corporation (MCC) which included assistance – described in the Secretariat’s report – for 
reducing barriers to trade and investment, including work to strengthen capacity in such areas as trade 
facilitation, SPS, and standards and to help meet ot her technical requirements.  USAID would like to 
work with Zambia’s government to complement the MCC threshold program with further assistance 
to enable the government to continue and deepen regulatory reforms.  
131. In December 2008, the MCC selected Zambia as eligible for large-scal e assistance via an 
MCC compact.  We urge the Zambian government, as it works with the MCC on a compact proposal, to consider including projects rela ted to trade capacity-building and trade-related infrastructure as 
elements to help it diversify the economy.   
132. The Secretariat reports that, since the last revi ew in 2002, Zambia’s trade policy has remained 
substantially unchanged.  The Gove rnment of Zambia has introduced reforms and regulatory changes 
in some areas, such as government procurement, standards, and business procedures.  We note, for 
example, the improvement over the last few years of Zambia’s ranking in the World Bank’s Doing 
Business indicators and are pleased to note that U.S.  assistance, through the MCC, has assisted the 
Zambian government’s efforts in this area.   
133. The Secretariat has devoted a chapter of its repor t to the issue of aid for trade and has rightly 
acknowledged Zambia’s active participation in the Task Force on the Integrated Framework.   We 
read with interest that Zambia continues to benefit from a high level of assistance from its 
development partners and that Zambia is trying to integrate into its policymaking the findings of the WT/TPR/M/219 
Page 18  
 
  Cabinet-approved 2005 Diagnostic Tr ade Integration Study.  According to the Secretariat, many of 
the areas that the DTIS identified in its action matr ix are being addressed by Zambia's bilateral and 
multilateral development partners.   We would be interested in hearing from Zambia about its latest 
diversification plans. 
134. We are pleased to note the extent to which the private sector has played a greater role in the 
nation’s economy since the early 1990s.  We enc ourage Zambia to work quickly to allow for 
improved productivity in the areas of agriculture, energy, and fixed-line telecommunication services 
so that privatization can be realized.   
135. We urge the Government of Zambia to accelerate the pace of reform in order to reduce any 
trade restrictions and to increase the competitiv eness of Zambian producers.  For example, the 
Secretariat notes that Zambia’s tariff structur e includes a large overhang between WTO-bound and 
applied rates that “creates a degree of unpredictab ility for traders.”  With the launch of the COMESA 
Customs Union and its multi-tier tariff structur e capped at 25%, we see no compelling reason for 
maintaining bound tariffs at over 100% or for not bind ing a larger number of tariff lines at the lower 
COMESA rate. 
136. The United States has submitted a few questions  on tariff policies, customs valuation and 
intellectual property rights.  We look forward to reviewing the Zambian government’s responses.  
137. Finally, I would like to commend Zambia’s ac tive participation in the Doha Development 
Agenda negotiations.   Zambia has taken a leadersh ip role among the LDCs in these negotiations.  We 
look forward to continuing our work with Zambia to achieve a balanced and ambitious result in the 
Doha negotiations with meaningful new market acc ess for all.  Such a result could further enhance 
opportunities for Zambia to broaden its export base,  its export markets and hence its opportunity to 
diversify.  The United States looks forward to work ing with Zambia toward bringing the Doha Round 
to a conclusion. 
JAPAN 
 138. I would like to begin with economic and trade policy in Zambia. Largely due to external 
factors, the Zambian economy is currently facing di fficulties. As the Secretariat’s report states, the 
steep price decline in the latter half of 2008 of copper, its major export product, followed by the 
depreciation of the Kwacha, reversed the previous  upward trend in merchandise exports. The soaring 
costs of fuel and food in early 2008 also caused a rise in the inflation rate at levels up to 16.6%.  
139. Japan appreciates the overall direction Zambia has been taking in its economic and trade 
policy. The Fifth National Development Plan (F NDP) has set objectives to transform the economy 
from copper dependency into greater economic dive rsification by also focusing on agriculture, 
tourism and services. Zambia places emphasis on trade and investment promotion in its policy 
objectives. It, for example, decided to establis h the Tariff Commission. We believe that these 
measures will result in a balanced and r obust development of the Zambian economy.  
140. In terms of business environment, Japan we lcomes the ease with which new businesses can 
start in Zambia. In particular, we have heard from Japanese companies in Zambia that improvements 
in company registration procedures, implemented by  the Patents and Companies’ Registration Office, 
have shortened the time for company registration signi ficantly. In this regard, we hope the Business 
Licensing Reform Committee will also improve the business licensing procedures.  
141. We recognize the continued need for support for further development in Zambia. As our State 
Secretary for Foreign Affairs  outlined at the 2
nd Global Review Meeting on Aid for Trade earlier this 
month, Japan will intensify its efforts for Aid fo r Trade under our “Development Initiative for Trade  WT/TPR/M/219 
 Page 19 
 
 
  2009". We believe that the promotion of AfT wi ll help Zambia in its economic development, 
particularly by way of effective integra tion into the multilateral trading system.  
142. Taking this opportunity, we would like to e xpress our appreciation to Ambassador MWAPE 
for his hard work as BOP chair dealing with the firs t BOP cases in 10 years. We will continue to work 
closely with the chair and other Members. 
143. In conclusion, Japan would like to reiterate its hope that Zambia will continue its efforts to 
promote and diversify its economy and trade, in orde r to benefit from the multilateral trading system. 
Japan is pleased to support its efforts, in c ooperation with other member countries and related 
organizations.  
CANADA 
 
144. Canada values its trade relationship with Za mbia, which reached US$26 million in terms of 
two-way merchandise trade in 2008.  Canada’s comme rcial relationship with Zambia is characterized 
by the sustained trade of manufactured products.  By  value, the Zambian assets of Canadian mining 
companies are the third largest amongst Sub-Saharan African countries. 
145. Canada congratulates Zambia for the overall strong economic performance since 2003 and the 
ambitious trade policy agenda set forth.  A str ong growth rate of 5.8% per annum between 2003 and 
2008 and declining inflation from 22.2% in 2002 to  12.4% in 2008 add to Zambia’s commercial 
attractiveness.  Zambia has regist ered good economic growth in the past five years on the back of the 
country’s constructive macroeconomic environment. 
146. We also note from the Secretariat Report that, ever since the global recession and the collapse 
of world commodity markets, Zambia’s trade perf ormance has been negativ ely impacted.  Copper 
mining receipts – Zambia’s major foreign currency ear ner – are down sharply.  Inflation is up around 
the 13.9% mark (annualized), for June 2009. 
147. While the Secretariat report notes that the global slowdown has adversely affected Zambia’s 
economic outlook, Canada encourages Zambia not to lose sight of the bigger picture. There are real 
strengths in Zambia’s trade policy agenda and the results achieved since 2003 are to be applauded.   
148. Canada is equally pleased with Zambia’s overall commitment to the WTO.  Since its second 
Trade Policy Review in October 2002, Zambia h as remained steadfast in its support for trade 
liberalization as well as the expansion of markets at  the bilateral, regional and multilateral levels.   
149. We commend Zambia for the numerous instituti onal reforms it has undertaken, as part of the 
implementation of regional integration under the frameworks of the Common Market for Eastern and 
Southern Africa (COMESA) and the Southern Afri can Development Community (SADC), and as part 
of continued efforts to ensure a continenta l-vision through the SADC-EAC-COMESA Tripartite 
Framework and the African Union integration progra mme. Canada encourages Zambia to continue in 
its efforts towards actively participating in th e multilateral trading system and on-going Doha 
negotiations.   
150. We welcome the authorities’ intention to integrate economic, social and environmental 
objectives in decisions to develop Zambia’s na tural resources and ec onomic well-being through 
development of a transparent, predictable,  rules-based international trade regime. 
151. Canada would like to encourage Zambia to pr ess ahead and support pro-business policies that 
will help the private sector to diversify and flouris h. To accomplish those goals, Zambia will need to 
continue on its current path, but work harder to provide tax incentives and a stable regulatory WT/TPR/M/219 
Page 20  
 
  environment for investors. Canada would also en courage reduction of business costs, streamlining 
customs procedures, as well as stronger laws and regul ations to foster Zambia’s private-sector led 
growth.  The reinforcement of the legal and ins titutional framework of a country is even more 
important in the current global economic climate.  
152. We recognize that this is not an easy task, pa rticularly in economies reliant on single export 
products, and given the current global economic climate. Accordingly, Canada welcomes the 
government’s pledge to diversif y Zambia’s economy and supports tr ade and foreign investment as a 
means to fostering equitable, pro-poor economi c growth. We remain convinced that governments 
committed to maintaining a liberal and transparent regime will be better placed to weather economic 
storms such as these and to fully enjoy the bene fits of increased international trade and global 
economic growth and development.  
BRAZIL 
 
153. Brazil participates with great interest in this exercise in light of circumstances surrounding 
Zambia’s trade policy as a Least-Developed Country Member of the WTO, and to challenges posed 
by this condition to the development of the country. 
154. Among the actions and measures taken during the review period by Zambia, Brazil would like 
to emphasize the country’s initiatives aimed at reducing the cost of doing business and at improving financial accountability and good governance Zambia h as achieved remarkable results in this front 
during recent years, for example by significantly reducing its total external debt from 7.1 billion 
dollars to 1.0 billion dollars.  Zambia’s efforts in  reducing inflation rates and keeping them around 
single-digit levels are remarkable and deserve to be commended. 
155. Brazil also welcomes the enhanc ement in exports of merchandise and the diversification of 
non-traditional Zambia’s export products.  We note the strong growth registered among non-mineral 
exports, particularly agricultural products.  Notw ithstanding this positive development, Zambia still 
displays a great dependency on its mining sector, esp ecially copper, which represents almost 60% of 
the country’s export revenues.  Consequently, the c ountry continues to be vulnerable to vagaries of 
the fluctuation of international commodity prices. 
156. Brazil recognizes the efforts made by Zambia to enhance productivity in agriculture, good 
security, the promotion of growth and the reduction of  poverty, stimulating an increase in trade flows 
by means of the participation in Regional Trad e Agreements and also by autonomous multilateral 
liberalization.  We stress that the participation in those undertakings, provided that they fully respect 
the WTO Agreements and do not generate trade dive rtion, or impose commitments additional to those 
in the multilateral rules-based trading system can contribute to the development of Zambia.  We 
encourage Zambia to continue to pursue these effo rts, Brazil believes that international trade and 
cooperation have an important role to play in this process, and we stand ready to promote them in the 
WTO. 
EGYPT ON BEHALF OF THE AFRICAN GROUP 
 
157. The African group would like to extend its full and continuous support for Zambia during its 
third Trade Policy Review, and wi shes for its successful conclusion. 
158. Zambia represents a good example of an LDC count ry relying on trade that has been hardly 
hit by the Economic and Financial Crisis. The mi ning sector plays a critical role in Zambia's 
economy, exercising a heavy influence over growth, j ob creation, poverty reduction, and the external 
accounts. Since mid 2008, and as a result of the crisis , world copper prices have fallen by more than 
60% and there have been cutbacks in production in Zambia. Adjusting to this external shock  WT/TPR/M/219 
 Page 21 
 
 
  represents a major economic challenge for Zambia.  The country's continued dependence on copper 
earnings means economic growth will decline.   
159. Furthermore, despite Zambia’s steady economic  growth from 2003 to mid 2008, where real 
GDP grew at an annual average rate of 5-6% led by  the mining, construction, and services sectors, the 
economy's increasing dependence on mining meant that la rge sections of the population have not been 
able to benefit from the commodity boom. As a c onsequence, almost two thirds of Zambians 
(approximately 7.5 million people) s till live in poverty, and rural peopl e persistently lag behind urban 
dwellers in most measures of social welfare. 
160. At the forefront of Zambia’s and other LCD members concerns at the WTO, is access for 
their exports in overseas markets, and minimizing the effects of the erosion of the trade preferences 
currently enjoyed by their limited number of exports. This entails the support of all the WTO 
members to help Zambia further develop its economy  through trade, by granting preferential trade 
arrangements to imports from LDCs. 
161. This support should also be through the following: 
162. The Aid for Trade initiative, and I would like to  commend Zambia’s leadership role in the 
relevant discussions, and would like to welcome th e North-South Corridor project, which aims to 
reduce the time taken and, consequently, the costs of  road and rail transport, and promises to be of 
considerable benefit to Zambia and other African countries. 
163. WTO trade-related technical assistance, for it continues to be important in enhancing 
Zambia's integration into the multilateral trading sy stem via technical assistance and capacity building 
programmes to help Zambia implemen t its obligations in various areas. 
164. Bilateral developmental assistance. 
165. This kind of support is of more urgency du ring the current Global Economic and Financial 
crisis, which will have a double effect on Africa n economies, through the im pact of individual 
responses of countries, particularly developed ones,  in the form of stimulus packages and bailout 
plans, which will have a long term negative eff ect on the competitiveness of the African economies. 
MAURITIUS 
 
166. A reading of the two reports reveals many pos itive developments in Zambia since the last 
Review.  I will highlight only a few of them. 
167. First, from 2002 to mid 2008, the Zambian ec onomy moved from stagnation towards steady 
growth, greater prosperity and better access to forei gn investment.  Read GDP grew at an annual rate 
of 5 to 6% led by mining, construction and servi ces sectors.  This good economic performance is also 
a result of improved macroeconomic mana gement for which we commend Zambia. 
168. Next, Zambia has mainstreamed trade into th e national development plan with the objective 
of making trade an engine of sustained growth.  We have, in this regard , taken good note of the 
objectives of Zambia’s trade policy objectives as set out at paragraph 46 of the Government report.  
The Government has also been engaged in a process of promoting trade diversification through active 
participation in multilateral, regiona l and bilateral trade, in full c onsonance with the country’s wider 
regional economic integrati on agenda, an agenda whic h Mauritius fully supports. 
169. Furthermore, in terms of sectoral policy developments, the private sector now plays a greater 
role in the national economy following a privatizatio n programme.  The share of the State’s control of WT/TPR/M/219 
Page 22  
 
  productive and services-related activities has dropped fro m 80% to 15%.  To ensure the vibrancy of 
the private sector, the Private Sector Development Reform Programme has been instituted with the 
aim of reducing the cost of doing business and enhancing competitiveness.  Mauritius encourages 
Zambia in these initiatives. 
170. We also note with interest that the Fifth National Development Plan of Zambia for the period 
2006-2010 and the Vision 2030 sets out ambitious l ong term development objectives in key socio-
economic sectors, including rural development, agricu lture, infrastructure and social service delivery.  
More specifically in agriculture, th e aim is to enhance productivity, as an instrument of growth, food 
security and poverty reduction.  In the wake of the food security crisis, the focus being given to 
agriculture to attain self-suffi ciency is highly commendable. 
171. Last, but not least, the Government of Zambia has also embarked on a financial sector 
development plan for 2004-09 to create a sound, we ll-functioning financial system that will support 
economic diversification and sustained economic gr owth.  This plan, accompanied by prudent fiscal 
policy, has greatly contributed to the financial res ilience of the country, as ev idenced by a remarkable 
reduction in Zambia’s total external debt (from US$7.1 billion in 2002 to US$1.05 billion in 2007). 
172. All these positive elements point to the fact that Zambia is well geared to developing into an 
efficient, competitive and export-led open economy. 
173. However as in many other Sub-Saharan c ountries, Zambia’s economic conditions and 
prospects are being profoundly affected by the global economic downturn.  The government report 
highlights this fact:  “The current crisis began at a time when the country was becoming increasingly optimistic about the prospect of sustained economic real growth and poverty reduction.” 
174. Indeed, the robust economic performance enjoyed by  the country in recent years runs the risk 
of being mitigated by the global economic slowdown.  Again as in many developing countries, since 
the second half of 2008, Zambia has been affected by  three external shocks in rapid succession – high 
global food and fuel prices, adverse weather conditi ons, and the global financial crisis and economic 
slowdown. 
175. The slowdown in growth may reverse the gain s made in reducing poverty and achieving the 
MDGs.  Indeed, the global financial crisis is signi ficantly affecting Zambia through a precipitous fall 
in demand in copper, the country’s main export, and steep fall in copper prices, both of which are 
compressing export proceeds and government  revenue, and reducing capital inflows. 
176. Given the importance of the copper, falling investment and reduced receipts in this sector will 
negatively impact a host of economic variables.  Real GDP growth may contract, the national 
currency may weaken and the current account position and the balance of trade may deteriorate.  
Other sectors could also be affected, including  tourism, transportation, and construction.  
Furthermore, as mines lay off workers, risks to social stability may increase against a background of 
lower social and investment spending. 
177. These are formidable challenges indeed.  A ddressing them requires appropriate policies 
designed to maintain macroeconomic stability, ensu re debt sustainability and contain inflation. 
178. In this regard, it is very gratifying that the Zambian authorities are responding appropriately 
to these external shocks.  They have adopted a fisc al policy which tries to strike the right balance 
between, on the one hand, high-priority infrastru cture spending to promote medium-term economic 
growth and diversification, and, on the other, safe guarding short-term macroeconomic stability.  In the 
process, they have had to scale back on some invest ments, while protecting priority social spending.  WT/TPR/M/219 
 Page 23 
 
 
  179. In view of the sharp decline in mining revenue, the authorities have modified the mining tax 
regime in order to continue attracting investment in  the sector.  They are also cognizant of the need to 
reduce Zambia’s vulnerability to fl uctuations in copper prices and therefore efforts are continuing fo a 
vigorous implementation of structural reforms to diversify the economy. 
180. The authorities are also implementing a new el ectricity sector strategy to improve the 
reliability of the electricity supply, given the strategic importance of this sector. 
181. All these are laudable policy measures from a responsible and responsive government 
designed to restore the high growth rates which pr eceded the crisis.  However, as the mining sector 
remains the mainstay of the economy, overall economic  recovery in the immedi ate future will depend 
on how severely this sector will continue to be affected by the decline in global demand. 
182. This is why we should continue to encourage Za mbia’s strategy for a rapid diversification of 
the economy to cover such areas as agriculture, tourism, manufacturing and services. 
183. In doing so, we fully acknowledge the challe nges, including supply-side infrastructure and 
capacity constraints, that Zambia face, as a LD and land-locked state. 
184. Mauritius will, therefore, continue to support calls for an effective implementation of the 
DFQF market access for LDCs, a call that Zambia  has been championing in the DDA negotiations. 
185. Similarly, we strongly request all the developmen t partners of Zambia to urgently review on 
the higher side their ODA commitments, including  Aid for Trade, for which Zambia a major 
proponent, in the light of the triple external shocks which compound the challenges faced by the 
country. 
186. This Review has demonstrated th at Zambia is determined to forge ahead as a forward-looking 
and trade-oriented open economy.  Mauritius applauds such a determination as it carries with it all the 
hopes and aspirations of a deserving nation poi sed to change its destiny for the better. 
HONDURAS 
 
187. We note with satisfaction from the Secretariat Report that Zambia experienced steady growth 
and better access to foreign investment in the peri od 2003-2008.  Real GDP grew at an annual average 
rate of 5-6 per cent, led by the mining, construc tion and services sectors.  In the current economic 
situation, however, the mining sector has record ed a downward trend in prices as well as production, 
entailing job and income losses in the sector, which poses a major challenge for the country's trade 
policies.  The ongoing diversification of Zambia's ex port products is softening the impact of changes 
in the international market.  We urge Zambia  to continue diversif ying its export products. 
188. We note with satisfaction that Zambia has undertaken reforms under programmes such as the 
Financial Sector Development Plan and the Private Sector Development Initiative, in order to foster 
the country's development. 
189. At the multilateral level, Zambia is a founding Member of the WTO and in the context of the 
Doha negotiations it has coordinated the work of the group of 50 LDCs in order to reach common 
negotiating positions regarding agricultural and non-agricultural market access, rules of origin, 
services, dispute settlement, TRIPS, and Aid for Trad e.  These endeavours are all the more important 
today in the light of the new guidelines aimed at finalizing the DDA in 2010, and we therefore 
commend its ongoing efforts in this area. 
 WT/TPR/M/219 
Page 24  
 
  AUSTRALIA 
 
190. We note and welcome the steady growth in Zambia’s economy in the period from 2003 to 
2008, the resulting greater prosperity an d improved access to foreign investment. 
191. We also note the critical role that the mining sector plays in Zambia’s economy – indeed this 
is reflected in our bilateral tr ade and economic relationship.  
192. The majority of bilateral merchandise trade in 2008 between Australia and Zambia was 
through the exports of mining-related e quipment, machinery, tools and parts. 
193. Australia also has significant investment in Zambia’s natural resources sector, with a number 
of Australian mineral exploration a nd mining companies active there, particularly in relation to copper 
and base metals:  For example, Equinox Minerals Lumwana project is being developed into Africa’s 
largest copper mine. 
194. We are also aware of the impact on Zambia’s  economic growth as a result of the negative 
impact on commodities prices arising from the globa l financial crisis, and support the government of 
Zambia’s efforts to diversify its economic base into agriculture, tourism and services.  
195. In this respect, Australia already provides duty free quota free access into the Australian 
market for all Zambian goods.  Australia is also  expanding its developm ent cooperation programs 
with Africa, including Zambia.  
196. We look forward to this commitment creating further opportunities for Australia’s 
relationship with Zambia to e xpand. High level contact between Australia and Zambia has been 
increasing - the Australian Governor-General visited Zambia in March this year and Foreign Minister 
Smith has met Foreign Minister Pande on a number of occasions.  
197. Zambia has also been one of  Australia’s long term develo pment cooperation partners in 
Africa.  Funded by the Australian government, Au stralian NGOs work in HIV/AIDS, water and 
sanitation, education and food security.   
198. Australia recently increased development assistance to Africa as a whole by over 40 per cent.  
This enhanced aid program will include support for progress towards the Millennium Development 
Goals in areas where Australia has sp ecific experience and expertise – such as in agriculture and food 
security, maternal and child health, mining and na tural resource management, water and sanitation, 
trade policy, public sector management and private sector development.  
199. It will also involve a significant expansion of Australia’s scholarships program. 
200. These programs will provide further opportunitie s for Australia to expand development 
assistance to Zambia, including assisting in its  efforts to diversify its economic base. 
201. We also welcome Zambia’s participation in and commitment to the multilateral trading 
system and Zambia’s support for conclusion of the Doha Round.  This recognition of the importance 
of trade policy to economic development is welc ome and is a useful underpinning to Zambia’s 
domestic reform efforts. 
BANGLADESH 
 
202. From the experience of Bangladesh , especially as a least developed country, we feel that TPR 
is a rigorous exercise and creates heavy demand on th e limited human and other logistic resources of  WT/TPR/M/219 
 Page 25 
 
 
  LDCs both at Geneva and at the respective capitals.  There is no denying the fact that TPR depicts an 
excellent map of the macroeconomic performance a nd trade development of the country under review 
in a globalised setting.  TPR is also a necessar y way of monitoring the compliance of individual 
Member’s to WTO rules and disciplines.  While asking questions or comments we would expect 
Members to kindly appreciate the difficulties faced  by Zambia as an LDC in their special 
development, trade or financial situation and limited administrative or institutional capabilities. 
203. We appreciate Zambia for the great progress made since last TPR in the following areas 
namely:  bringing inflation rates to single digit in  spite of the unprecedented global financial crisis;  
achieving macroeconomic stability with the adoption of prudent fiscal policies;  the increase in 
foreign exchange reserves;  embedding trade agenda  in the fifth National Development Plan which 
runs from 2006 to 2010;  reaching of the Heavily Indebted Poor Countries completion point in 2005 
which resulted in the cancellation of over US$7 billi on worth of external debt;  strengthening of the 
performance of non traditional exports;  improvement  in investment flows since the implementation 
of the privatization programme and the rationaliza tion of the business environment;  implementing the 
regional trade integration agenda. 
204. In addition to limited home-owned resources, Zambia as a least developed country needs 
active involvement of development partners in addressing following challenges that are as follows:  
inadequate capacity in the transport sector to m eet the increased demand of traffic on the roads;  
increased strain on energy supply;  low levels of productivity and transfer of technology;  livestock 
disease outbreaks having an adverse impact on market access;  limitations in agriculture infrastructure specially with respect to feeder roads, dams and acc ess to electricity;  limitation in the growth of the 
industrial sector due to constraints related to finance and the smallness of business activities with 
limited entrepreneurial skills. 
205. Finally, as an LDC we wish Zambia a great succes s in its effort to integrate into the rule-
based multilateral trading system sponsored by the WTO. 
TANZANIA 
 
206. My Delegation is happy to participate in this 3
rd TPR of Zambia precisely because we share 
same border with Zambia and therefore have more or less common interests and challenges.  This TPR has allowed us to have a be tter understanding of Zambia’s current trade policies and practices, its 
experience and aspirations.  Notably, despite the rising food and fuel import prices that have resulted into high inflation averaging over 20%, Zambia mana ged to adopt fiscal and monetary policies that 
have seen this inflation reduced to single digit.  The situation has been wor sened by the fluctuation 
performance of the mining sector which happens be th e backbone of the country’s economy.  In this 
regard we commend Zambia for the progress achieved in their efforts towards economic diversification in both production and trade, desp ite challenges they face as a land-locked country 
particularly in the area of economic reform progra mmes in which trade and investment liberalization 
play a key role.  As a landlocked country, trans port costs remain one of the major challenges that 
make Zambia’s exports and imports become ve ry uncompetitive in the world market and their 
domestic prices become very high, respectively.  As  a solution to address this challenge, Zambia has 
recently adopted the North-South Corridor progra mme to address this problem.  It is a regional 
initiative under COMESA-SADC-EAC Tripartite Fr amework where Zambia has recognized and 
prioritized among others road, rail and hard infrast ructure needs of the transport sector.  Tanzania 
sincerely appreciates this regional aid for trad e project which has a support from the African 
Development Bank (ADB) and other donor s.  We wish to stress the need to develop similar Aid for 
Trade programmes in respect of other priority region al transport and transit corridors, that will cover 
the development of dare s Salaam port which is one  of the alternative route for Zambian exports and 
imports. WT/TPR/M/219 
Page 26  
 
  207. Tanzania also appreciates Zambia’s firm co mmitment to the multilateral trading system 
(MTS) including the finalization of the Doha Devel opment Round with development as a central issue 
of the negotiations.  This is because; the continue d protraction of the Doha Round of negotiations is 
causing a painful burden and wasted opportunities for LDCs.  Zambia has always been actively 
participating in the DDA negotiations a stance that is  appreciated by the LDCs Group.  It was during 
Zambia’s coordinatorship when WTO Members manage d to adopt a decision in  Hong Kong to grant 
DFQF market access to LDCs.  This was followed by some proposals that were tabled by Zambia on 
behalf of LDCs urging WTO members to implement various decisions adopted by Ministers in Hong 
Kong in favour of LDCs.  No doubt, as an LDC that is highly dependent on fo reign trade, Zambia has 
a lot to gain from the DFQF market access and th e accompanied provision of financial and technical 
assistance to address the supply-side constraints in cluding SPS and TBT related requirements.  So, my 
delegation calls for the operationalisation of this DFQF facility without further delay. 
208. Tanzania also strongly believes the faithful implementation of the EIF (of which Zambia 
participated in putting it to shape) and Aid for Trade interventions will definitely assist LDCs 
including Zambia to address the supply side constr aints and build their productive and trade related 
infrastructure. 
209. Let it be considered by Zambia that, the numer ous interventions, questions in particular by 
Members regarding the TPR should be taken as a testim ony of their interest in Zambia’s trade regime.  
Certainly, they value Zambia’s efforts to improve their environment and consequently reduce poverty. 
ZIMBABWE 
 210. Zimbabwe and Zambia share a common history and heritage of one of the Great Wonders of 
the World, the Mighty Victoria Falls, or Musi-oa- Tunya as we call it in the local language, a common 
services asset we should exploit more closely to our mutual benefit.  We are not only neighbours but 
also members of the SADC and COMESA regional groupings where our efforts are directed towards 
achieving wider integration at the regional level.  We note with appreciation the positive average real 
annual growth rate of 5% achieved by Zambia between 2002 and 2008, and the country’s success in 
mainstreaming trade into its national development pl an.  The focus of the Fifth National Development 
Plan (FNDP) will, undoubtedly, lead to the attain ment of the trade policy objective of enhancing 
productivity and competitiveness of Zambian produc ts on the domestic, regional and international 
markets. 
211. Zimbabwe and Zambia have a common “handicap ” of being land-locked.  The North-South 
Corridor project, under the Aid for Trade Initiative, is indeed a key project which will go a long way 
towards reducing the time taken to clear goods and therefore costs for both road and rail transportation for our two countries.  The project will certainly have a positive impact on industrial 
activity and export competitiveness for the Zambian ec onomy.  When Zambia thus succeeds, together 
we may transform the classic land-locked handicap  into the advantage of land-connectedness we 
share. 
212. The challenges that Zambia faces, which include poverty reduction, infrastructure 
development, human resource and financial services capacities, could be aggravated by the prolonged 
effects of the global financial and economic crisis .  We urge Zambia’s de velopment partners to 
continue to provide the necessary financial and tec hnical assistance to enable Zambia to meet these 
challenges, as well as those attendant upon econo mic diversification, as outlined here by the 
Honourable Minister.  WT/TPR/M/219 
 Page 27 
 
 
  KENYA 
 
213. Kenya and Zambia have a long standing cordial trade relations dating back to early 1960s at 
bilateral level and as from early 1980s, at regional level, under the COMESA trade arrangement.  We 
value this relationship and it has always been our d esire to see it grow to even a much higher level. 
214. Against this background, we have studied va rious sectors of the trade policy review report 
and accordingly wish to make the following comments: 
215. On Economic Environment – we have noted a high growth rate of 5-6 per cent annually to the 
GDP since 2003 led by mining, construction and servi ces sectors;  a nearly six-fold increase in FDI 
inflows;  and a declining deficit of current account as result of improved monetary and fiscal 
discipline.  This is an impressive performance thr ough there is need to check on the hihgth inglatin 
which seems to be on the increase after it had been brought down to a single digit figure. 
216. This performance further demonstrates that sequenced reforms and liberalization of the 
economy can create the right environment for a higher economic growth rate. 
217. Regarding Trade Policies and Practices – we  have noted the comprehensive reform 
programme that the Government of Zambia undert ook in 1990s of removing exchange controls;  
reducing import duties;  eliminating both import and export licensing requirements and decontrolling 
prices among others.  All these are good economic g overnance practices which should be monitored 
from time to time for any adjustment interventions  whenever necessary.  We have also noted the 
effort the Government is making to diversify to  non-traditional export areas such as manufacturing, 
horticulture and floriculture and also to fac ilitate trade by strengthening the standardization, 
certification and inspection units in the country an d the technical assistance and capacity building 
challenges being encountered particularly in the areas of SPS and TBT.  It is such challenges that Aid 
for Trade was intended to address and it is hoped that when the programme is fully operation it will be 
able to address them. 
218. Under Sectoral Policy Development, we have noted that after the privatization programme, 
the government’s control of the economy has dropped significantly from 80% to around 10-15% and 
mining and services sectors continue to be the larg est contributors to the GDP.  This is a positive 
development but there need for the governme nt to address the problem identified under 
telecommunications, electricity and transport services sectors in order to reduce the cost of doing 
business in the country and enhance competitiven ess of its exports in external markets. 
219. In conclusion, we wish to congratulate Zambia  for the broad based market oriented trade 
policies and economic reforms they have undertaken as we encourage them to sustain the momentum 
for even a much better economic performance.  
INDIA 
 
220. Zambia is landlocked and sparsely populated by  more than 70 ethnic groups, many of them 
Bantu-speaking. There are more than 73 distinct tribal groups. The number of individual languages 
listed for Zambia is 45. Of those, 43 are living languages and 2 are second languages without mother-
tongue speakers. 
221. Although Zambia lies in the tropical belt, the country's 1,300-metre elevation produces a 
temperate, 'air-condition' climate with little humidity . Much needed in the present warmer and stuffy 
climate in Geneva. Although Zambia is one of the little-known destina tions in Africa, it has however, 
enjoyed considerable growth in tourist arrivals over the last five years.  Zambia has some spectacular 
scenery, including the Victoria Falls along the Za mbezi river, the Bangweulu Swamps and the WT/TPR/M/219 
Page 28  
 
  Luangwa river valley. Some of the major tourist attractions are Victoria Falls and Kafue National  
Parks. Kafue National Parks , encompass an  area of 22,500 sq. km nearly 10 times the size of our 
Discussant’s country.  It is noted for its beauty and attracts hundreds of species of birds and offers 
good fishing opportunities. The genuine, welcoming a ttitude of the Zambian people adds immensely 
to visitors' holiday enjoyment. 
222. Zambia has achieved positive growth GDP during 20 02-08.  The real rate of growth has been 
positive and increasing. Inflation declined from 26.7%  in 2002 to 8.2% in 2006. Zambia achieved a 
single digit inflation rate for the first time in thr ee decades in 2006. Since Zambia has had a history of 
high inflation, persistently averaging over 20% a nd sometimes substantially exceeding this (50% in 
1996), at present it has risen, to over 12% in 2008. This should be a cause for concern for the Zambian 
government and should make efforts to contain it and bring it to a single digit. The Immigration 
Department has reduced the time it takes to pro cess permits and visas for would-be investors by 
creating a customer service centre. 
223. As Para 10 of its report states that the sharp decline in the price of copper and consequent 
reduction in export earnings will without doubt negatively impact the Zambia’s economy and 
constrain the country’s effort to reduce poverty. Ou r Discussant has mentioned widespread poverty in 
Zambia. Secretariat report points out, even afte r several years of robust growth, the economy's 
increasing dependence on mining means that large sec tions of the population have not been able to 
benefit from the commodity boom.   CARITAS Zambia  has stated recently, the gap between the rich 
and the poor has grown to alarming levels and the government must show commitment to reducing 
such inequalities. The challenges for Zambia in the long term are - how to overcome the single 
commodity linked economy to achieve its economic and social development goals. 
224. Para 71 of its report is equally candid in stati ng that challenges remain in Zambia’s ability to 
guide and implement the legislation that is in place and develop negotiating positions. Despite the 
tremendous effort taken by Zambia to develop the cap acity of officials to be able to implement these 
agreements, limited resources, institutional and tech nical capacity, and high turnover within the civil 
service remains problematic. Zambia is in need of support under the trade facilitation framework. It is 
here that Zambia’s development partners must come forward and assist Zambia in addressing these 
challenges.  
225. Para 23 of the Secretariat report has dwelled  quite a lot on corruption and theft as cited 
among the top five constraints facing the business community in Zambia in the Investment Climate Assessments carried out in 2003 and 2008. Our Discu ssant also made a reference to it. We hope 
Zambian Government will make concerted efforts in confronting this issue as it has a direct and 
negative impact on doing business in Zambia.  
226. We are pleased to note from Para 75, Zambia c ontinues to actively participate in the ongoing 
Doha round of trade negotiations. Za mbia had provided a strong leadership as coordinator of the LDC 
Group at the WTO during 2004 to 2006. 
227. India-Zambia relations are historic, frie ndly and expanding. India had the honour of 
collaborating with the Zambian leadership during lib eration struggles and anti-apartheid movement in 
Southern Africa. India gave support to the econom ic and technical development of Zambia. Over 
2000 civilian Zambians have been trained in Indi a under ITEC in various disciplines so far. In 
February, 2008 India extended a grant of Rs. 10 million for flood relief. 
228. In recent years, Minister Mutati, visited Delhi to participate in CII’s India Africa Conclave. 
President Banda then in capacity of Vice President visited India from 4-9
th April, 2008 to participate 
in India Africa Forum summit. During President Mw anawasa’s visit to India in April 2003, India 
extended a credit line of $ 10 million (out of whic h $ 8.5 million has been utilized for purchase of  WT/TPR/M/219 
 Page 29 
 
 
  Tata trucks and $1.5 million has been utilized fo r procurement of vocational tool kits), grant 
assistance of US $ 100,000 for donation of anti-HIV/AIDs medicines and another grant of Rs. 25 million for donation of agricultural equipment to  Zambia. India also waived off the inter-
governmental credit amounting to about $ 3 million outstanding against Zambia. 
229. India has increased credit availability, scholarship s etc. We hope Zambia will be able to take 
advantage of these measures. Out of the increased cr edit, the Zambian side had requested for credit 
for road construction and water reservoir facility for sugar plantation, for  setting up an IT Park, for 
projects of SEZ; sugar plantation and processing pl ant However, no detailed proposal in these regards 
have been received from Zambian side. We hope Zambia will expedite ac tion in this regard.  
230. India has in December, 2008 set up two computer  learning kiosks in Lusaka under Hole in the 
Wall Computer literacy programme. Zambia in 2007 si gned an MoU with TCIL of India for setting up 
by Indian assistance the Pan African e-networking to  facilitate tele-education and tele-medicine with 
India and video-conferencing with all the 53 Heads of  State/Government of Africa. The e-networking 
project is being implemented. TATA-Zambia has invested about $8 million in renovation of a five-
star hotel called Taj Pamodzi, which is being mana ged by the Taj Hotels group. Recently, there has 
been renewed interest in India for trade and i nvestment with Zambia for setting up of a Key-hole 
surgery Specialty Hospital in Lusaka, set up a Sp ecial Economic zone, sugar sector in Zambia in 
plantation and processing plant, manufacture transforme rs of high capacity and electrical switchgears,  
RJ Corporation of India has si gned an agreement with ZDA on 30
th August, 2008 worth investments 
of US$ 30 million to set up Pepsi bottling plants in  Lusaka and Ndola and; a juice plant. President 
Rupiah Banda laid the foundation stone of the plant in Lusaka on 17th January, 2009 etc.  
231. Zambia’s exports to India are at US$ 132.27 million and imports from India at US$ 74.84 
million. India’s imports from Zambia include non-ferrous metals, ores (c opper and cobalt), semi-
precious stones and raw cotton. India’s export items  include drug and pharmaceuticals, machinery and 
instruments, transport equipment, cotton yarn and fabrics, plastic, rubber, chemicals, and electronic 
goods. India and Zambia have set up a Joint Permanen t Commission at the Ministerial level, its last 
meeting was held in New Delhi on September, 2005. We look forward to the next meet of the Joint 
Commission. We also hope that Zambia will subs cribe to India’s DFQF scheme in operation for 
LDCs since April, 2008. 
232. There are about 13,000 Indians in Zambia. They play a significant role in the economy of 
Zambia, especially in trade and commerce, industry, hospitality and transport sectors. 
LESOTHO 
 
233. Lesotho welcomed the courageous measures take n by Zambia and noted the major indicators, 
inflation, growth rate, real GDP in real terms, the trends in the current account. Lesotho is impressed 
by the fact that Zambia is emphasising private sector development and in terms of public private sector partnership it is very good to have a strong development partner. 
234. The indicators are moving in the right direction and Lesotho wish to point out that our 
problem, it is not only Zambia’s problem is data.  Even the results of the crisis will become obvious 
later our data is always in arrears, national account s are normally three years in arrears or more, and 
that is why we are asking for assistance to make sure  that we have the capacity to collect, to compile, 
to analyze and incorporate real time data in orde r know where we are no where we have been and also 
to look forward to see where we are going. 
235. The challenges that Zambia is facing are quite  typical among the LDCs and the land locked 
developing countries, particularly land locked LDCs.  All need infrastructure, both physical, social WT/TPR/M/219 
Page 30  
 
  and institutional, they need to increase productiv e capacities in order to alter the issue of 
diversification, competitiveness, etc. 
236. We hope that EIF is up and running and I am sure that Zambia will access that to further 
consolidate that mainstreaming of trade in nationa l policy as well as integrating it into the multilateral 
trading system.  But also Aid for trade should prove most helpful and we note with gratification that 
those are the remaining challenges to enable produc tion and supply side constraints and strengthening 
trade.  Lesotho is gratified with the North-S outh corridor which includes Zambia to moving from 
being landlocked to be a land licke d developing country, that corridor will help that and will raise 
competitiveness which is a major challenge to landlocked countries. 
237. Regarding tariff bindings Zambia is trying the b est that LDCs are encouraged to do and in 
doing so we hope that they move systematically slowly. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
 
238. It is encouraging to see that since its second Review in 2003, Zambia’s economy has moved 
from stagnation into steady growth, greater prosper ity, and greater access to foreign investment.  In 
fact, over the last five years, the country’s economy has grown at an average annual rate of 5 to 6%, 
led by the mining, construction and services sectors.   
239. Despite the improvement in its economy, Zambia  remains one of the poorest countries in the 
world.  Almost two-thirds of the population still li ve in poverty, concentrated particularly in the 
agriculture sector, where the low productivity of labour among smallholders is acute. It would be 
interesting to know more about the effects of th e robust economic growth of recent years on income 
distribution and social welfare across the country. 
240. Having said that, we are pleased to learn that Za mbia has developed a trade policy to diversify 
the economy. Up to now, production and trade in Zamb ia has continued to rely heavily on the primary 
sector, with Copper remaining its largest export comm odity, but with a price that is highly volatile.  
Semi- and other manufacturing account for only 12. 4% of exports, and agriculture accounts for less 
than one fifth of GDP.  More than half of all Za mbia’s exports go to Switzerland, and 28% remain in 
Africa.  At the same time, 61% of its imports origin ate in Africa.  Thus, the question arises of how the 
government of Zambia sees the future prospects for its diversification policy in terms of products and 
trading partners. 
241. Zambia has identified network infrastructur e, cross-border infrastructure and export 
diversification as the three priority areas for impr oving its capacity to benefit from the Aid-for-Trade 
Initiative.  It continues to request technical assist ance to help establish rele vant institutions and to 
improve the level of compliance with WTO rules and systems.  Therefore, the Aid-for-Trade initiative 
is an important way of attracting and encouraging WTO Members to offer their assistance and support. Zambia is an active member of the Agency  for International Trade and Cooperation (AITIC).  
Indeed, we and Zambia both serve as members of the Executive Board of AITIC, and we very much 
hope we can cooperate closely in achieving the goal s of the Action Plan of that organization.  
NIGERIA 
 
242. Nigeria is pleased to note that from 2003 to  mid 2008, Zambia's economy moved from 
stagnation to steady growth, greater prosperity, an d better access to foreign investment.  Real GDP 
grew at an annual average rate of 5-6% led by the mining, construction, and services sectors.  FDI 
inflows increased nearly six-fold, reaching an es timated US$1.3 billion by 2007, with the mining 
sector attracting more than half of the forei gn investment.  The resulting increase in copper 
production, the five-fold rise in world copper prices , and debt relief allowed Zambia to improve its  WT/TPR/M/219 
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  external position significantly.  The current account deficit declined from 17.4% of GDP in 2002 to 
7.4% in 2008, and external public debt declined to  less then 10% of GDP by the end 2007, down from 
nearly 179% in 2002.  This resulted in an incr ease in international reserves at over US$1 billion in 
2008 represented nearly three months of imports. 
243. Nigeria is also happy to note from the Secretar iat Report that Zambia is diversifying out of 
copper into agriculture, tourism, and services.  The Government has been carrying out much-needed 
reforms across several sectors, in programmes such as the Financial Sector Development Plan and the 
Private Sector Development Initiative, and is co mmitted to overhauling the expensive system of 
fertilizer subsidies, increasing investment in agricu lture, improving the efficiency of the state-owned 
power company and reforming the telecommunications sector. 
244. To that end, Nigeria hopes that Zambia’s economic prospects coul d be more favourable, 
provided that macroeconomic stability is maintained  and progress on structural reforms is made to 
diversify the economy and reduce dependence on natural resources. 
245. During the period under review, Zambia has been at the forefront of aid-for-trade discussions 
and represented the LDCs in the Aid-for-Trade Task Fo rce.  Zambia has identified its priority areas of 
intervention to improve its capacity to benefit fro m trade expansion and integration into the world 
economy. These are: network infrastructure (power, water, telecoms); export diversification and 
cross-border infrastructure.  Regarding the latte r, Zambia's technical-assistance needs include 
alleviating high transportation costs,  improving customs administration, reducing border clearance 
procedures, upgrading road and rail networks, and reducing transport costs;  integrating border 
agencies and  training for officials. Nigeria ther efore hopes that major trading partners will help 
Zambia improve its capacity to benefit from trade expansion thereby making it possible for Zambia to 
integrate into the world economy. 
246. In conclusion, Nigeria considers Zambia as an important Member of the WTO. We look 
forward to collaborating with Zambia in the ongoi ng Doha Development Ag enda (DDA) negotiations. 
In this context, we wish to acknowledge the cons tructive and proactive engagement of the delegation 
of Zambia. 
ANGOLA 
 
247. This review follows the principle set up in  Annex 3 of the Marrakech Agreement which 
pursues the objective of duties and obligations of transparency that each Member of the WTO should 
satisfy in the context of the implementation of its domestic and regional trade policies and practices as 
required by the Agreement establishing the Trade Policy Review Mechanism. 
248. Since its second trade policy review in 2003,  Zambia undertook a comprehensive reform 
programme, by removing exchange controls, reduc ing import duties, eliminating import and export 
licence requirements, abolishing export bans and introducing a number of export incentives, 
withdrawing subsidies, and liberalizing price. 
249. Zambia’s economy moved from stagnation toward s steady growth, greater prosperity, and 
better access to foreign investment.  Real GDP grew  at an annual average rate of 5-6% led by the 
mining, construction, and services sectors. 
250. FDI inflows increased nearly six-fold, reaching an estimated US$1.3 billion by 2007, with the 
mining sector attracting more than half of the foreign investment.  The current account deficit declined from 17.4% of GDP in 2002 to 7.4% in 2008. WT/TPR/M/219 
Page 32  
 
  251. An external public debt decreased to less than  10% of GDP by end 2007, down from nearly 
179% in 2002, an increase in international reser ves, which, at over US$1 billion in 2008 represented 
nearly three months of imports, compared with barely one month in 2003;  a great step, especially at this time of financial and economy crisis. 
252. We commend the efforts of the Government of Zambia in improving monetary and fiscal 
policies as well as the growth of domestic food supplies.  Inflation fell from 26.7% in 2002 to 12% in 
2008.  And the merchandise exports increased in  value terms 15% of GDP, between 2003 to 2008, 
attaining a level of 40% of GDP. 
253. We also welcome the Zambian Government’s reform to diversifying out of copper into 
agriculture, tourism, and services under the current  national development plan 2006-2010;  for 
reforms across several sectors, in programmes such as the Financial Sector Development Plan and the 
Private Sector Development Initiative, and its co mmitment to overhauling the expensive system of 
fertilizer subsidies, increasing investment in agricult ure (improving the efficiency of the state-owned 
power company (ZESCO) and reforming the telecommunications sector. 
254. Regionally, Zambia is a member of the Sout hern Africa Development Community, of which 
Angola is also part of, and we share a common vi ew to the expeditious establishment of a common 
free-trade area with the goal of establishing a single customs union and harmonizing members states’ trade arrangements. 
255. We also encourage Zambia’s authorities on th eir reforms focusing on multi-facility economic 
zones (MFEZs), which offer a wide set of incentiv es, based on tax holidays, to exporting and non-
exporting enterprises (including no tax on profits for five years from the first year profits are made). 
256. On Sectoral Policy Developments, we suppor t the Zambian Government’s decision on a 
revision of the mining tax regime enclosed on the Mines and Minerals Development Act 2008 
endorsed in 2008 partly with the aim of ensuring that Zambians could own shares in large-scale 
mining companies. 
257. The national development plan sets ambitious objectives for the agriculture sector:  
guaranteeing sufficient food for at least 90% of the population;  increasing the contribution of the 
sector to total foreign exchange earning from the current 3-5% to 10-20% and increasing its 
contribution to GDP from 18-20% to 25%, while raising incomes for those involved in agriculture but also for the reform in a financial sector development plan for 2004-09 to create a sound, well-functioning financial system that will support eco nomic diversification a nd sustaqinable economic 
growth. 
258. We welcome a Zambian initiative to promote international competitiveness, removing 
barriers to entry in the sector by reducing intern ational gateway licence fees to regional averages, 
simplify and streamline the licensing system requi rements to open and operate a tourism business. 
259. Facilitating trade is a major challenge of Zambia  due to the high transport costs partly because 
the country is landlocked.  To help deal with his,  a significant recent aid fo r trade initiative, the North-
South Corridor project, aims to reduce the time taken and, consequently, the costs of road and rail 
transport.  One that promises to be of considerable benefit to Zambia. 
260. Furthermore Angola has tried since 2002 to develop a lobito corridor project which will able 
to link directly north west of Zambia to the Atlan tic ocean with significant capital fund investments in 
railway infrastructure and which could help and faci litate a transit of foods and services from Zambia, 
but also increase significant a regional trade flows in  the SADC region, within a SADC trade protocol 
and other strategic projects on energy, water and transportation.  WT/TPR/M/219 
 Page 33 
 
 
  V. REPLIES BY THE REPRESENTATIVE OF ZAMBIA AND ADDITIONAL 
COMMENTS 
261. I will endeavour to address the pertinent issues that were raised on Monday which came from 
the majority of the members that spoke and suppor ted my country’s efforts in mainstreaming trade 
into our development plans.  
262. I wish to acknowledge: China for the establishment of the MFEZ and other development 
programmes;  Argentina’s support in the area of tran sfer in technology;  the European Community in 
the Private Sector Reform Programme and other ke y developmental programm es;  Mexico for their 
intended support in strengthening the standardisati on, certification and inspection systems  of Zambia 
Bureau of Standards;  the USA for their s upport under the MCA and other USAID programmes; 
Japan for the support in establishing the master plan for the Lusaka South Economic Zone, trade 
related and other infrastructure;  Canada for tr ade related support and significant investment in 
mining;  Brazil for their interest in promoting and supporting South-South trade and cooperation in 
the energy sector, in particular, bio fuels;  Egypt, for investments in manufacturing particularly, the energy sector;  Honduras for their support and encouragement;  Australia for investments in mining;  
Bangladesh for their support for Zambia and other LDCs;  Chinese Taipei for their positive comments 
and contributions to the Agency for International  Trade Information and Cooperation (AITIC);  India 
for their investments in agricultural, manufactur ing and tourism;  and the LDC group and African 
countries for their positive comments, support and encouragement notably: Mauritius, Tanzania, 
Zimbabwe, Kenya, Lesotho, Nigeria and Angola.  
263. I would also like to thank all other cooperating partners for their invaluable support rendered 
to my country’s development efforts. 
264. The issues that were raised focu sed on the following broad categories:  diversification of the 
Zambian economy;  governance;  regional integration;  income distribution; and market access. 
265. In order to diversify our economy, Zambia has undertaken a number of policy reforms, some 
of which have been undertaken through the Priv ate Sector Development Programme. These reforms 
are aimed at reducing the cost of doing business.  
266. Thus far, we have accomplished the following:  reduced the number of licences required for 
operating a business ,which will subsequently reduce further from 512 types of licences to 260;  the 
reduction of time in business  registration from 15 days  to one day;  simplification of immigration  
procedures;  introduction of customer service center at  the Ministry of  Lands;  simplification of tax 
administration;  establishment of ZDA as a one stop facility for investment facilitation;  establishment 
of the Credit Reference Bureau to help lower the cost of borrowing;  establishment of the Chirundu 
One Stop Border Post with Zimbabwe;  reducing Government domestic borrowing thereby freeing up investible funds for the private sector;  and provi ding more affordable business and export financing 
through various financial initiatives. 
267. Zambia is in the process of signing the second phase of the Private Sector Development 
Programme. The reforms earmarked under this ph ase will include the following:  Labour reforms 
which will include the review and amendment of relevant legislation as well as improving labour 
quality and productivity through training and skills  development provided in the TEVET System;  
reforms in the ICT sector which will include the pr ivatisation of the major telecommunication service 
provider;  and reforms in the energy sector will in clude introducing private sector participation in 
distribution, generation and transmission as well as exploitation of alternative sources of energy  
268. I also wish to appreciate the role of our coope rating partners in Zambia’s efforts aimed at 
reducing the cost of doing business. WT/TPR/M/219 
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  269. I also take this opportunity to appreciate th e various preferential a rrangements provided for 
Zambia’s exports in various markets which are essential for the successful implementation of Zambia’s diversification programme.   
270. Zambia’s approach to diversification involves:  encouraging value addition within the copper 
mining sector;  promoting mining of minerals other th an copper;  promoting other sectors particularly 
agriculture, tourism and manufacturing. 
271. Within the copper mining sector, Zambia h as put in place measures to discourage the 
exportation of copper concentrates.  In this rega rd we have introduced an export duty on copper 
concentrates and put in place other fiscal incentives that encourage the establishment of smelters to 
support value addition, for example copper cables an d copper salts.  The development of the mining 
Multi Facility Economic Zone (MFEZ) attests to our commitment to diversification. So far US$ 500 
million has been invested in the establishment of the Chambishi MFEZ. Five more MFEZ are 
earmarked for development. 
272. In promoting diversification in the mining sector, Zambia is undertaking measures aimed at 
improving the business and investment climate to en courage production and export of minerals such 
as nickel, manganese, coal lime and gemstones.  
273. In the area of agriculture, farming blocks ha ve been established to encourage cultivation of 
crops such as maize, wheat, cotton and sugar for expo rt.  Further, various agriculture associations are 
being supported through the EU export financ ing scheme to increase their export production 
capacities. 
274. Livestock development is promoted by im proving animal husbandry. Among the key 
interventions in this area are cross breeding for bo th beef and hide quality as well as the improvement 
of animal resistance to diseases. Another major progr amme is the livestock restocking exercise, aimed 
at increasing the animal population. In promo ting export of bovine pr oducts, government has 
allocated resources for the creation of at least one disease free livestock zone. 
275. Tourism is another sector that Zambia is de veloping to move away from the dependence on 
copper and cobalt mining.  Major initiatives include the development of the Kasaba Bay project where 
Zambia is promoting the development of tourism in frastructure, including hotels and entertainment 
facilities in the northern part of the country.  In a ddition, resources have been allocated to continue 
with the development of infrastructure in other tourist areas.  These interventions will supplement 
available tourism facilities which w ill enable Zambia attract more tourists and make Zambia the 
destination of choice.  Zambia welcomes assi stance in developing this sector further. 
276. To encourage development of the manufacturing sector, Zambia is giving a number of 
Investment Incentives under the ZDA Act. For inst ance these provisions have been used to promote 
the establishment of Multi Facility Ec onomic Zones and Industrial Parks. 
277. Furthermore, the Government is facilitating ve rtical integration in value chains through 
product development targeted at furthering value a ddition.  Horizontal integration is also being 
facilitated with the aim of widening the product base.  
278. To support the diversification programme, infrast ructure development remains cardinal.  In 
this regard, Zambia is implemen ting a national strategy to improve  transport and communication 
infrastructure, inter alia , developing the road network and laying of optic fibre cables.  In order to 
achieve this, the Government is promoting the participation of the private sector through the 
implementation of Public Private Partnerships . The Government has committed resources amounting 
to US$ 260 million dollars towards ro ad development in the 2009 budget.  WT/TPR/M/219 
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  279. At the regional level, a pilot project, the North-South Corridor, has been embarked upon 
which seeks to address both hard an d soft infrastructure constraints in transport, border, ICT and 
energy infrastructure. During the High Level Resource Mobilisation Conference, US$2.7 billion was raised through pledges from cooperating partners. 
280. Zambia appreciates preferential arrangements provided for her export products in various 
markets such as the Africa Growth Opportunity  Act (AGOA), the Everything But Arms (EBA) 
Initiative and the Canadian and Chinese Initiatives and all Generalised System of Preference Schemes 
(GSP) provided developed country part ners. However, there is need fo r targeted technical assistance 
particularly aimed at improving product quality as well as meeting sanitary, phytosanitary and other 
technical market requirements. There is also need  for market adaptation, production technologies and 
production capacity expansion in order for Zamb ia to fully exploit this market access. 
Promotion of exports of services 
281. Zambia’s focus in the promotion of services exports  has been in the area of tourism. This is 
largely due to the huge potential that the sector h as in terms of services exports. Government intends 
to intensify efforts aimed at further promoting the sector, both for local and foreign tourism. Another 
sector where Zambia has potential is in the area of professional services, particularly in the movement 
of natural persons. However, the Government is c ognisant of the need to ensure that the export of 
services does not undermine local access, especiall y in essential social services like health and 
education. In this regard, the G overnment is in the process of undert aking an assessment that will feed 
into the formulation of a strategy for the de velopment of this sector on the one hand and the 
negotiation of trade in services across the different tr ading arrangements on the other. This work will 
not only be limited to professional services but  will cut across all service sub sectors.  
Good Governance 
282. Good Governance is key to achieving our na tional development objectives of attaining 
economic growth and significantly reducing the high le vels of poverty that affect the majority of our 
people. Zambia has embarked upon a number of pr ocesses that seek to harm onise efforts to ensure 
that resources are better disbursed, utilised and monito red. In this regard, we  acknowledge that there 
are a lot of areas that require further attention. To this end, Zambia has instituted the following: 
283. The formulation of the “Aid Policy and Strate gy” whose objective is to ensure that the 
country has a clear, systematic and well coordinated approach for managing aid. 
284. Cross-sectoral priorities for governance reforms include:  the delivery of a new constitution;  
the continued reform of parliamentary and elector al processes;  the continuation of public service 
reforms that include public expenditure and fina ncial management, public services management and 
decentralisation;  launch of the Anti-Corruption policy;  the strengthening of the Anti Corruption 
Commission;  the strengthening of the Anti M oney Laundering Unit;  and providing additional 
resources to the office of the Auditor Genera l and other law enforcement agencies.   
285. The reforms aimed at reducing the cost of doing  business have also had the effect of reducing 
the incidence of corruption by making th e system transparent and predictable. 
286. Zambia’s demonstration towards democratic governance, economic freedom and investments 
in its citizens resulted in the country being deem ed compact-eligible under the Millennium Challenge 
Corporation in December 2008.  Once the compact pr ogramme is finalised, the resources will become 
available to meet the country’s most pressing development needs.   WT/TPR/M/219 
Page 36  
 
  287. In addition, Zambia’s attainment of the HIPC Completion point is a testimony to the 
confidence that both the cooperating partners and cred itors have in the country’s capacity to prudently 
manage its resources. We are thankful for the assistance rendered by our cooperating partners in 
addressing issues relating to governance.   
288. The importance of good governance and prudent  resource management cannot be over 
emphasised. We will continue to work towards promoting accountability and prudent management of 
resources.  In this vein, Zambia remains receptive to any assistance that the cooperating partners may 
render to strengthen relevant controls and further enhance good governance.   
Income Distribution 
289. Having stabilised the macroeconomic environmen t, the key challenge for Zambia, as most 
members pointed out, is to transform these positive developments into improved living standards, 
more jobs and sustained broad based economic growth.    
290. To meet these challenges, Zambia has embark ed on a number of programs in the agriculture 
sector to translate the gains made over the last deca de to distribute wealth with a view to reducing 
poverty.  This is because the agriculture sector is one of the main pillars in our poverty reduction 
strategy. 
291. The policy interventions include, among others:  the provision of resources for livestock 
development, creation of disease-free livestock zon es and provision of extension services to small 
scale farmers. For instance, a large proportion of ra w hides and skins and fresh milk are supplied by 
small scale farmers to tanners and dairy processors respectively;  development of Farming Blocks in 
rural areas with the view of creating employ ment opportunities as well as the expansion of 
beneficiaries under the fertilizer support programme;  technical suppor t from cooperating partners to 
more than 12,000 bee keeper households in the hone y sub-sector resulting in an increase in production 
from less than 100 tons to more than 700 tons. This honey is supplied to larger exporting firms 
resulting in increased income to those households;  creating a market for the produce from rural areas 
through providing resources to the Food Reserve Agen cy for procurement of agricultural output from 
small scale farmers at competitive floor prices, thereby increasing their income;  encouraging out-
grower schemes and business linkages.  For exampl e, sugar production through out-grower schemes; 
improving access to rural markets through the rehabilitati on of rural road networks by the provision of 
earth moving equipment to all provincial centres.  Zambia would like to recognise the assistance rendered by  cooperating partners, particularly China and Japan that have provided financing and 
technical support in the road rehabilitation projects;  initiating a targeted credit scheme to facilitate 
entrepreneurship development in the country partic ularly for vulnerable and marginalised groups, 
through the Citizens Economic Empowerment initiative;  improving access to the remote tourism circuits in-country with the view of attracting mo re tourists and subseque nt employment opportunities 
for the people in those areas.   
292. Specific interventions targeted at Micro, Sm all and Medium enterprises include Business 
Development Services financed by various coopera ting partners; Credit Guarantee Schemes provided 
by the Government; and entrepreneurship training programmes. 
Dual Membership 
293. There was a general concern in relation to Zambia’s overlapping membership in various 
regional integration initiatives. 
294. As you may be aware, SADC was original ly formed with the aim of coordinating 
development projects in order to lessen depende nce on the then apartheid South Africa, while  WT/TPR/M/219 
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  COMESA was formed with the sole aim of estab lishing a common market in the Southern African 
region.  Owing to the realization of the importanc e of trade in growth and development, SADC 
included trade in its wider economic agenda. 
295. In view of the eminent challenges dual memb ership poses to member states, three RECs 
(COMESA, EAC, SADC) within in the region have  embarked on an initiative to work towards 
harmonizing their respective programmes.  This is ai med at integrating the three RECs into a single 
wider free trade area in line with the principle of the Abuja Treaty of integrating Africa in terms of 
trade.  The Abuja treaty designates Africa RECs as building blocks for stronger integration and the 
eventual creation of an African Economic Community. 
296. In this regard, Zambia remains committed to this tripartite agenda which also aims to address 
both hard and soft infrastructure constraints th rough the development of common corridors. The 
harmonisation of programmes will also provide an optimal solution to the issue of dual membership and overstretched limited resources.  
297. At this juncture, I would like to thank the me mbers who made pledges during the North-South 
Corridor resource mobilization conference. I woul d also like to acknowledge the assistance rendered 
by the British Department for International Devel opment in facilitating the successful hosting of this 
conference in Lusaka, Zambia in April 2009.  
298. In order to realize the objectives of the tripartite  initiative especially with regard to the North-
South Corridor pilot project and to ensure that th e project is a success, we call upon the cooperating 
partners to continue supporting us.  
299. As regards the concern raised on predictability,  in view of the disparity between Zambia’s 
applied and bound rates, I wish to state that th e high bound rates provide scope for policy space for 
Zambia.  As you know, we are working towards becoming a middle income economy by 2030.  We therefore need this flexibility for adjustment.   
300. You may also wish to note that Zambia’s averag e applied rate of 13.4 percent is considerably 
low for an LDC and has not changed since the last re view.  This is an indication of stability in our 
application of tariff rates. 
301. I would like to conclude by acknowledging the assistance provided by all our cooperating 
partners across all sectors in areas of capacity build ing, technology transfer, education, infrastructure 
development, health, and pove rty alleviation strategies. 
302. I would like to indicate that all the responses that have not been provided will be forwarded to 
the Secretariat after consultations within the stipulated time. 
DISCUSSANT 
303. After such a most eloquent comprehensive and cl ear way that the Minister has answered the 
various questions and challenges raised last Monday, I think that we would all agree that it is very 
difficult to add something meaningful to that.  Mr. Minister I want to congratulate you for the way by 
which you have made your presenta tion and the way that you have presented the major priorities and 
challenges before you, and the way also you have commented them and for the number of clear ideas 
that could outline for each of them.  I think that it was a very persuasive way and really you need our 
thanks for that.   
304. I think that the debate last Monday has seen c ontributions from a large number of delegations 
from all regions and groups and I think that we can  also say that the numerous questions which have WT/TPR/M/219 
Page 38  
 
  been submitted have shown the deep interest that th e delegations have shown in  this TPR of Zambia.  
I think that the debate also has shown that Zambia is an LDC, I think that in an exercise like this is of 
importance that the challenges of development can be shown in a clear way and also to show how 
progress in this way can be seen and can be measur ed.  I am saying this because we can not repeat 
enough that the trade by itself is not an objective, is not an aim, trade is alwa ys a tool, an instrument 
for something and in this case clearly it is to be at  the service of development.  This means also that 
countries like Zambia need strong growth but at th e same time we have to underline that strong 
growth by itself is not sufficient, this is an acces sory condition for process development but it is not a 
sufficient condition, it has also to be shaped in a way that can be created to fight poverty and to 
promote development in a meaningful way and what  you have said Mr. Minister in terms of income 
distribution has shown how clearly you are aware about  this dimension.  I think that it is important 
that the growth which can be generated is creati ng new jobs in sufficient numbers specially for young 
population and growth also has to generate enough revenues for a government to enable it to cope 
with the development challenges in terms of educati on, of access to health, to water, to build also the 
environment favourable for trade.   
305. I think the debate last Monday has also seen that  there is general agreement about the strong 
macroeconomic performance of your country in th e period 2003-2008 and that has been due to a 
remarkable progress as well of your government in terms of fiscal and macroeconomic policies which 
has led to the lowering of inflation, to finance stab ility, to the debt reduction and also to privatization 
initiatives. 
306. In the field of trade policies it was underlin ed and recognized that Zambia has made 
considerable progress in terms of main straining tr ade in its development plan, in trade facilitation 
fields, etc.  Then it was also said and underlined how badly Zambia is hit by the present crisis and I 
think not to loose momentum which has been crea ted by the 2003-2008 strong growth period it is 
extremely important that the donor community is aware of that and sticks to its commitment and 
continues to show understanding and to show strong support for your Government. 
307. In the field of trade policies measures, delega tions mentioned the issue of tariff bindings and 
they commented the issue of the implementation of WTO sanitary and phytosanitary and trade 
barriers for trade agreements has been mentioned, but what I wanted to do to finish is just to resume a 
number of challenges that you have to face in the future and that you have already Mr. Minister 
commented in great length.  The first challenges is  diversification, diversification in the mining sector 
itself and I think that you can only be congratulated for what you have said on the need to pursue a 
road to add value to the production of raw cooper,  and I think the ideas that you have outlined are 
extremely interesting and stimulating.  The second field of diversification is to continue the efforts in 
the field of the non traditional export fields agriculture, tourism, and services.  I also took note of what you have said, what you are doing attempting in the fi eld of agriculture, I think the robust agricultural 
policy is also very important and thereby you wo uld be able to exploit the high potential of 
productivity growth to promote and diversify agro-processing and at the same time reduce poverty.  
We know that the poorest in the largest number in rural areas and everything that you can do in this 
field and this area I think that it is also a direct attack against poverty. 
308. In the same way, all that you could do to promot e and to invest in infrastructure and transport 
including rural road, and you have said it, is of the hi ghest value.  And the fifth challenge that I have 
noted is the development of telecommunications and energy. 
309. The next challenge that I have noted is th e continuation of trade facilitation efforts and 
simplification of regulatory requirements and also there you have outlined a number of projects which 
need to be recognized and supported.  You have al so noted how important is to promote the regional 
integration efforts and I think that has been also sai d in the debate and you ha ve just said how strongly 
you want to invest your own efforts in this regard .  I think the regionalization of these integration  WT/TPR/M/219 
 Page 39 
 
 
  efforts and to create a single integration zone wo uld also be extremely important and I can only 
applaud what you have said about the ex ample that Europe is giving to you. 
310. Another challenge is the issue of transparency measures, I think that you are quite aware of 
this challenge as well and that you are quite keen to take concrete measures in this regard.  The efforts 
you are taking together with the Aid for Trade deve lopment have also been mentioned at great length 
and I could only encourage you to pursue this cooperation with these various activities in the 
Integrated Framework among others and to build thereby on the pioneering role that Zambia has 
played in this field.  The North-South corridor h as been mentioned by various speakers and you have 
commented the strong potential of this corridor has to be used without delay and it would be an example also how regional integr ation can really be pursued. 
311. Regarding the statistics, I think that Zambia might also wish to continue to improve its 
statistics.  I think that the Zambian government  and its population deserve the greatest possible 
transparency and clarity also in terms of statisti cs.  The technical assistance of the WTO and may be 
of other actors in Geneva could be used in a constr uctive way in this regard, and of course we need for 
that also the constructive cooperation with the companies concerned.   
312. My last remark Mr. Minister, I want to thank you for what Zambia has done in Geneva in the 
field of the efforts of the LDCs, you have played  a very important role and I am really looking 
forward to count on your country’s support of the future efforts of the LDCs including the 
Subcommittee and I am very pleased by the very spon taneous relationship I was able of the last day to 
build with you and your Ambassador, and I am looki ng really forward to continue this extreme 
positive cooperation with your country in  Geneva in the future months.  
UGANDA 
313. Let me suggest a few observations.  I thank very  much for the efforts that you are making.  
We are all in the same boat, Uganda as a landloc ked country and we share the same resources, the 
minerals, etc, your solutions are similar to other coun tries, and that is why I have a very keen interest 
in your speech.  I am impressed that you are getting US$4 billion from unprocessed cooper, so I 
encourage you to continue to concentrate on the processing.   
314. Regarding diversification, it was said that all LDCs were competing for the same products.  I 
think that the only issue that we should take note of is what is the share of that crop in the market.  
UNITED STATES 
315. I think that you did a very effective job of s ynthesizing the main themes that emerged on quite 
a number of the statements with your outline fo r today’s comments and your responses to them.  I 
would also like to express my appreciation to the discussant for his quite useful summary not only of 
all the comments that were made but also by  picking up the points that you have made and 
highlighting them.   
316. I would like to perhaps raise a couple of points.  One relates to you comments regarding the 
blocks of the SADEC-COMESA and East Africa Co mmunity which you see as building blocks to an 
integrated single Africa trading zone.  Our feeling is that regional integration can stimulate trade 
liberalization and it will be particularly useful in  the context of Africa where you have a number of 
relatively small markets and you can bring some ec onomies scales, so I think those efforts are worth 
while.  However, I do think that you should consider  how those efforts can be complemented by work 
at the WTO on a multilateral level.  On Monday some  Members had noted that there were large gaps 
between bound and applied rates, a real large numbe r of unbalanced rates within the WTO, and as WT/TPR/M/219 
Page 40  
 
  Zambia is taking commitments on within the regional  groups we think that similar commitments can 
be taken in the multilateral setting on with respect to your tariff. 
317. One area that really did not come up in the discussion was intellectual property protection.  
We noted on pages 49 to 50 of the Secretariat Report that Zambia is having trouble on the area of enforcement of IPRs, and we noted that several cons traints have been identified and we wonder what 
kind of steps Zambia is currently taking to overcome some of the constraints that were identified with 
respect to IP enforcement. 
318. Lastly, regarding diversification you have to be very careful when you are contracting this out 
because they will tell you what you want to hear.  Wh ile we were reading the section in the Secretariat 
Report on Aid for Trade we were struck by how ex tensive the technical assistance is receiving from a 
variety of donors and a variety of different contexts , and also that Zambia is planning a leading role 
within the task force on the Integrated Framework in Aid for Trade generally within its capacity as a 
leader of the LDC Group. Perhaps because of how  significant some of th ese assistance packages are 
and how diverse they are, it might be interesting if  you could perhaps share some of your experiences 
with us with respect to how you managed all these di fferent programmes so that you are not been told 
by the donor communities as feasibilities that is wh at you should be doing but rather how you select 
what you should be doing as well as perhaps giving  some indication with respect to these programmes 
covering nearly every aspect of the WTO work, whic h are the kind of programmes that you found to 
be the most useful practical benefit.    
EUROPEAN COMMUNITIES 
319. We do have two more questions that we came up with after reviewing the replies to areas that 
we would like to see some more clarity and theref ore we will submit to additional questions, notably 
on high tax on spirits and threshold for foreign bidde rs in the procurement market of Zambia.  Since 
the questions are quite specific we will submit them to the Secretariat in writing and we will wait for 
the replies in due course. 
320. To conclude, let me assure Zambia of the EC ’s full support and assistance in the context of 
the EPA WTO and beyond in the further ambitious e fforts that are necessary to create an environment 
conducive to growth in productive private investment and trade. 
MOZAMBIQUE 
321. The results achieved from the second to the third trade policy review showed the hard work 
and the higher commitment in spite of Zambia be ing a LDC as ours.  The annual economic growth 
rates averaging of 5% during the review period, c onfirms the result of the efforts undertaken.  We 
hope that in the coming years Zambia will redu ce exports dependence on mining and the continue 
progress on structural reforms to diversify the econom y.  This will contribute to increase export and 
economic growth.  We hope too that Zambia w ill achieve its objectives to the Vision 2030 that 
defines the long term objective to development.  We believe that the Vision 2030 will contribute to 
the poverty alleviation.  
ZAMBIA 
322. The discussant outlined a number of challenges that we face going forward and we realize 
that we are going to depend on our cooperating part ners to deal with these ch allenges.  The discussant, 
coming from a landlocked country like Zambia also has given us hope that you can only grow if you belong to a bigger market, and we shall follow his a dvise and to continue to persuade our colleagues 
that the bigger the better.  WT/TPR/M/219 
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  323. The comments from the US were very helpful in pushing the process forward.  I will leave 
my people give you in writing a more detailed respon se regarding the binding and bound issue.  On IP 
we are actually taking to Parliament a law that is going to address the challenges with regard to IP. 
324. Regarding the issues of feasibility studies and what we see and how we see, when we are 
doing the reform process what we call the private sector reforms, we had a number of cooperating 
partners that were keen to help us.  We had fro m the US the Millennium Challenge Account as part of 
the reform process, we had from Japan the Triangle of  Hope to reform the private sector, we had from 
the EC the Private Sector Capacity Building Progra mme and indeed we also had from our own efforts 
to reform the private sector.  We collapsed all these into one big basket so th at we only had to deal 
with one and that is where the feasibility comes in.  Collapse the issues into basked because the output 
is the transformation of the private sector.  Extendi ng the same principle to the North-South corridor 
one of the reasons that we are not able to attract resources particularly from an African perspective is 
that when we ask for help we got the least prepar ed.  The North-South corridor is properly packaged 
defining what you need to do whether is rehabilitation,  whether is maintenance, whether is expansion 
at the border what you need to do and this is what we are selling:  properly coasted projects. 
325. I thank Uganda and Mozambique for its support.  In terms of trade facilitation, between our 
two borders, Zambia and Mozambique, this cross border trade was becomi ng an issue because of 
current difficulties.  And what we did very simple is that between the two countries at the border, our 
two currencies are one to one, so it does not matter whether we are using the Mozambican currency or 
the Zambia currency, and by that simple process the trade has boomed.      WT/TPR/M/219 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
326. Zambia's third Trade Policy Review (TPR) has b een thorough and informative; it has given us 
a much better understanding of the trade and related policies and practices of Zambia, together with 
the challenges it faces.  I thank Minister Mu tati and his delegation as well as the discussant, 
Ambassador Feyder of Luxemburg, and Member s of the TPRB for contributing to our useful 
exchange of views.  The reports by the Zambian authorities and the Secretariat, as well as the detailed 
responses of the delegation of Zambia to the many questions posed, have provi ded a valuable resource 
for transparency both within Zambia and as far as the WTO membership is concerned. 
327. Members commended Zambia's commitment to ope nness in trade and foreign investment as 
well as to further economic liberalization.  Since its last TPR and up to mid-2008, the economy of 
Zambia has grown rapidly as a result of sound economic policies, including ongoing structural 
reforms, debt reduction, and a favourable external environment.  However, Members also noted that, 
as the current global economic crisis was demonstrat ing, Zambia needed to reduce its dependence on 
copper mining and develop a more diversified economy in which trade and trade policies play a 
significant role. 
328. Members noted that Zambia's renewed emphasi s on developing its agriculture, where labour 
productivity and thus incomes are relatively low, could contribute significantly to economic diversification and poverty reduction.  Members al so observed that there were positive signs that 
diversification was taking place.  These signs incl uded impressive growth in  non-traditional exports 
together with essential reforms – including in th e fields of customs procedures, business licensing, 
financial regulation, and private sector developmen t – to stabilize the economy, reduce the cost of 
doing business and improving the investment climate.  Members noted that these efforts have helped 
somewhat to reduce Zambia's dependence on mining for growth and exports. However, high-cost and 
inefficient services in transport, electricity and fixed-line telecommunications, still constitute 
obstacles to improved productivity, international co mpetitiveness and, therefore, Zambia's growth. 
329. Members stressed that Zambia, lik e many other developing countries, is struggling with how 
best to integrate into the world economy.  They reco gnized the importance of Zambia's leadership role 
in the Doha Development Agenda negotiations, particularly with respect to duty-free and quota-free 
access to LDCs.  Zambia, like other LDCs that are de pendent on foreign trade, had a lot to gain from 
duty- and quota-free market access and the acco mpanying provision of financial and technical 
assistance to address supply-side constraints, notably  SPS and TBT-related requirements.  In addition 
to commending Zambia's overall commitment to the WTO and the multilateral trading system, 
Members underlined that Zambia remained steadfast in its support for trade liberalization and 
expansion of markets, at the bilateral and re gional levels.  Although Members recognized the 
importance of regional integration in expanding trade, they also expressed concern about Zambia's 
membership in several overlapping trade agreemen ts, including the Common Market for Eastern and 
Southern Africa (COMESA) and the Southern  African Development Community (SADC). 
330. Members encouraged Zambia to improve its binding commitments in tariffs by increasing 
their coverage and reducing the gap between bound and applied rat es.  Members welcomed reforms 
and regulatory changes in areas such as government procurement, standards and business procedures.  
They expressed keen interest in the announced review  of intellectual property legislation to establish a 
TRIPs-compliant regime, noting that protection of intellectual property rights could help to attract 
foreign investment. 
331. Members noted that "Aid for Trade" features prominently in Zambia’s TPR and several 
underlined the need for donors to continue to provi de such aid and other assistance, notwithstanding 
their current difficult fiscal circumstances.  They noted that Zambia’s TPR was a very instructive 
example of one of the many countries that, aided by donors, have undertaken  major economic reforms  WT/TPR/M/219 
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  aimed, inter alia , at opening up their economies and at fac ilitating trade in the context of being a 
land-locked country. 
332. This successfully concludes our Review of Za mbia and demonstrates the strong interest 
shown by Members in Zambia's trade and related polic ies and its participation in the WTO.  In this 
context, I encourage Zambia to take to heart Member s' concerns and I hope that it will continue with 
its reform process.  At the same time, I invite members to assist Zambia by providing adequate 
technical assistance, including in trade capacity building, and by further opening their markets to 
Zambia's exports. 
 
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