WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/219/Add.1 
13 October 2009 
 (09-5002) 
Trade Policy Review Body 
27 and 29 July 2009 Original: English/ 
 anglais/  inglés 
 
  
TRADE POLICY REVIEW 
ZAMBIA 
Record of Meeting
 
Addendum  
Chairperson:  H.E. Mr. John Gero (Canada) 
 This document contains the advance writte n questions, and replies provided by Zambia.1 
__________________________________________________________________________________ 
Organe d'examen des politiques commerciales 
27 et 29 juillet 2009 
 
EXAMEN DES POLITIQUES COMMERCIALES 
ZAMBIE 
Compte rendu de la réunion  
Addendum  
Président:  S.E. M. John Gero (Canada) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par la Zambie.1 
__________________________________________________________________________________ 
Órgano de Examen de las Políticas Comerciales 
27 y 29 de julio de 2009  
EXAMEN DE LAS POLÍTICAS COMERCIALES 
ZAMBIA 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. John Gero (Canada) 
 
 En el presente documento figuran las pr eguntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Zambia.1
                                                      
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/219/Add.1 
 Page 3 
 
 
  REPLIES PROVIDED BY ZAMBIA  
 
ARGENTINA 
Report by the Government of Zambia (WT/TPR/G/219) : 
 
I. Introduction 
 Paragraph 1 states that the focus of the Fifth Nati onal Development Plan (FNDP) is to enhance rural 
development, especially agriculture. 
- Could Zambia please provide more details in this respect? 
The Fifth National Development Plan (FNDP)  has identified support for rural development, 
especially agriculture, as a key growth strategy due to the fact that over 60 percent of Zambia’s rural 
population draws its livelihood from agriculture related activities. By targeting this large segment of 
the population, the Government is assured of hav ing an immediate and real impact on the welfare of 
the majority of Zambians in terms of job creation, enhanced productivity and food security.  
 
As you know the overarching strategy of the FNDP  is to attain pro-poor  growth through rural 
development, job creation and technological advancement.  To this effect, the strategic focus is on: 
 - Developing well functioning micro and rural financ ing systems, including the re-capitalization 
of the National Savings and Credit Bank and expans ion of the bank’s network to rural areas to 
increase access to finance for rural communities, 
- Involvement of rural communities in produc tive activities and marketing through cooperatives 
- Improvement of rural infrastr ucture including feeder roads for more efficient transportation of 
goods. To this end, Zambia procured earth moving  equipment in order to accelerate the pace of 
this intervention. These have since been di spatched to each of the provinces. 
- Increase electrification levels in rural areas in order to increase access to social economic 
development and improve agricultural productivity . In this regard, 20 year master plan has 
been drawn with a view to increasing the level of  rural electrification fr om 3% to 35% by the 
year 2030. 
- Promoting large scale enterprises through the crea tion of farm blocks as a means of creating 
rural employment. To this end, this year Zamb ia plans to complete the development of the 
Nansanga Farm Block, a 155,000-hectare tr act of land in the Serenje District 
- Strengthening the linkage of small farmers to commercial producers as a means of securing 
ready markets and sustainable inco me for the rural communities 
- Assisting rural communities to improve their food production techniques. FNDP targets food 
crops (such as maize, cassava, sorghum, mille t, sweet potatoes, beans, wheat and groundnuts), 
as well as cash crops (such as  cotton, tobacco, cashew nuts, soya beans and beverages) for 
increased production and productivity. 
- Livestock development and disease control. 
- Revision of the agriculture  procurement and delivery systems. 
 
Through these targeted interventions, Zambia has been  able to record food production surplus in crops 
such as maize over the last 3 years. 
The FNDP envisages that rural development will come from, among others, expanding the area under 
cultivation (currently only 14% of the country’s landmass is under cultivation) and doubling the 
amount of land under irrigation from 100,000 hecta res to 200,000 hectares. There are also plans to 
reduce those post-harvest crop losses from  30 percent to less than 10 percent. WT/TPR/M/219/Add.1 
Page 4  
  
  IV. Zambia and the Global Trading System 
3. The Doha Development Agenda 
According to paragraph 93, one of the key areas of  interest to Zambia under the Doha Development 
Agenda is the transfer of technology in a practical sense under the TRIPS Agreement. 
- Could Zambia please elaborate further on its interests in this respect?  
- Reference to technology transfer is in the cont ext of the Doha Ministerial mandate to create a 
working group on Trade and Transfer of Technol ogy in order to examine the relationship 
between trade and transfer of technology from developed to developing countries and ways of 
increasing the flow of technology transfer to developing countries.  
 
- As was recognised during the fourth Ministerial Conference, various provisions of WTO 
Agreements mention the need for technology transfer to take place between developed and 
developing countries. 
 
- However, the process of technology transfer has not unfolded at the pace necessary to 
facilitate the growth of industrial activities in  countries like Zambia. The role of technology 
development and transfer in a country’ comp etitiveness and economic development cannot be 
overemphasized. Zambia lags behind with re gard to technological advancement in many 
sectors of the economy such as agriculture, energy, textiles and agro-processing. With a 
small manufacturing base, Zambia lacks the c apacity to develop its own technologies in the 
key sectors, and thus must rely on technology transferred from countries that export capital 
and technology. Examples of areas where Zamb ia has received technical assistance for 
technology transfer include production process and product quality improvement in the honey 
and legume value chains by USAID funded trade development assistance programmes; and new technologies and equipment in the leath er and horticulture/floricu lture sectors funded by 
the EU.  
 
Zambia has undertaken a value chain assessment on cotton and cotton to apparel study, and could 
greatly benefit from additional produc er to producer assistance to gain the technology required to 
increase yields, reduce disease, and strengthen downstream activities among others.  Zambia has noted that, despite the commitment by the developed member countries to provide 
incentives to their enterprises and in stitutions to promote and encour age technology transfer to least 
developed member countries, no pro-active measur es have been taken by developed countries to 
specifically implement their obligations under Articl e 66.2 of the TRIPS Agreement. It is in this 
regard that Zambia hopes to see practical measu res undertaken by the devel oped member countries 
with regard to their obligations so that least developed countries can utilize technology to become 
increasingly competitive.  
 Brazil’s effort to promote technology transf er in the pharmaceutical sector between developing 
countries is an example of practical technology tr ansfer for technology-constr ained countries, notably 
in the cotton sector. Brazil is using bilatera l science and technical assistance agreements and 
horizontal technology transfer agreements to other developing countries acquire pharmaceutical 
technologies and know-how. 
 The Zambia Development Agency Act No. 11 of 2006 provides for transfer of technology through FDI 
to businesses including small and medium enterpri ses. Additionally, Zambia’s draft intellectual 
property policy highlights how Technology Licen sing Agreements can promote technology transfer 
through research and development cooperati on agreements, joint ventures, etc.    WT/TPR/M/219/Add.1 
 Page 5 
 
 
Report by the Secretariat (WT/TPR/S/219 ) 
II. Trade Policy Regime:  Framework and Objectives 
3. Trade Policy Formulation and Implementation (iii) Main trade laws  
Table II.2 (Trade-related legislation in Zambia) me ntions the Bio-safety Act and the Plant Breeders' 
Rights Act, No. 18 (intellectual property).  - Could Zambia please provide information on the basic objectives of this legislation? 
 The following are the objectives of the Biosafety Act of 2007:  
• To regulate the research, development, application,  import, export, transit, contained use, 
release or placing on the market of any genetic ally modified organisms whether intended for 
use as a pharmaceutical, food, feed or processi ng, or a product of a genetically modified 
organism; 
• To ensure that any activity involving the u se of any genetically modified organism or a 
product of a genetically modifie d organism prevents any socio- economic impact or harm to 
human and animal life or damage to the envi ronment, non-genetically  modified crops and 
biodiversity; 
• Set and implement standards for the assessment,  evaluation and management of any potential 
risk involving the use of any genetically modified organism; 
• Establish the National Biosafety Authority and prescribe its powers and functions; 
• Provide for the establishment of the Scientific Advisory Committee; 
• Provide for a mechanism for liability and red ress for any harm or damage caused to human 
and animal health, non-genetic ally modified crops, socio-ec onomic conditions, biological 
diversity or the environment by any genetically modified organism; 
• Provide for the formation and registration of institutional biosafety committees; and 
• Provide for matters connected with the incidental to the foregoing.  
 The purpose of the Plant Breeder’s Rights Act No. 18 of  2007 is to provide for the protection of plant 
breeder’s rights and the registration of plant varie ties. The Act provides exclusive rights to a plant 
breeder to produce, reproduce, sell, import or expor t the plant variety or any variety which is 
essentially derived from the protected variety when th e protected variety is not in itself an essentially 
derived variety.   The Act designates the Seed Control and Certificatio n Institute (under the Ministry of Agriculture and 
Cooperatives) as the plant variety protection authority responsible for its administration. 
 
For further information on any Zambian legi slation, please visit www.parliament.gov.zm. 
 
III. Trade Policies and Practices by Measure 
1. Introduction  
Paragraph 1 states that the large gap between the average applied rate of 13.4 per cent and the bound 
rate of 105.7 per cent, and the absence of bindings for over 83 per cent of tariff lines, creates a degree 
of unpredictability for traders in the sense that th ere is scope for the authorities to raise tariffs. 
 - Does Zambia intend to bind the rest of its tariff lines? 
 
Analytical work is being undertaken in order to take an informed decision on this matter.  WT/TPR/M/219/Add.1 
Page 6  
  
  BRAZIL 
Document WT/TPR/S/219
 
Question: According to the Secretariat Report (pag e x, par. 10) cellular phone handsets were the only 
product for which applied tariffs have  increased since 2002. Is there an y particular reason for such an 
increase in rates for this product?  
 
We would like to clarify this observation by stati ng that minor upward and downward adjustments are 
made to a selected number of product tariff lin es in Zambia’s tariff schedules on an annual basis 
within the four band categories of 0, 5, 15 and 25 , based on national policy objectives. Therefore tariff 
rates on any product designated in particular year for policy reasons can be adjusted upward or 
downward. 
 For cellular phone handsets, tariffs have been ad justed twice since 2002. In 2005, a downward 
adjustment was made from 15% to 5% to increase access to telecommunication services in Zambia. In 2009, an upward adjustment was made from 5% to 15% as an industrial policy measure to allow 
investment in the emerging cell phone production industry. 
 Another sector that has had an upward tariff adjustment is chalk production.  Question:
 The share of Zambia’s exports to other Af rican countries has declined from 38% to 28%, 
despite Zambia’s commitment to regional trade blocks such as SADC and COMESA. In Zambia’s 
view, what are the main challenges to promote furt her trade integration within Africa? What are the 
prospects of establishing a single free trade zone between SADC, COMESA, and EAC?  
The main challenges to promoting further trade in tegration within Africa include lack of adequate 
interlinking infrastructure in the area of tel ecommunication, road, rail and air transport. Transport 
costs within the region remain extremely high, pa rticularly for land-locked countries. However, 
Zambia is hopeful that the pilot Aid for Trade  North South Corridor programme will increase 
Zambia’s integration into the region by promoting regional trade facilitation projects.   In addition, African countries often face challe nges in transporting and clearing goods at border 
posts in a timely fashion due to limited infr astructure and connectivity, as well as antiquated 
procedures. 
 Intra-regional trade is inhibited by the low levels of industrial activity and value addition as well as 
dependence on commodities exports. This dependence on a single commodity also aces Zambia 
particularly vulnerable to external shocks.. 
 
Trade integration within the region has also st ruggled because not all members of COMESA and 
SADC have acceded to the COMESA and SADC free trade areas, some of whom are major trading 
partners for Zambia. Additionally, member states ha ve reported a number of non-tariff barriers to the 
COMESA and SADC Secretariats. However, in October 2008, COMESA, SADC, and EAC, at the Tripartite Summit, took the decision to form an enlarged free trade area, and both COMESA and EAC 
have ratified this decision. Within the tripartite initiative, a host of regional programmes will be 
harmonized, leading to additional gains from regional liberalization.   
Question: Among the initiatives to boost tourism in Zambia, the report highlights the "Tourism 
Development Credit Initiative" (page 72, par. 83) to facilitate investment in tourism infrastructure. 
What amount of resources was allocated to this initiative since its launch in 2004? How were the 
resources disbursed in projects (lodges, hotels, camping sites)?     WT/TPR/M/219/Add.1 
 Page 7 
 
 
This initiative was launched in 2003, and five billion kwacha per year was allocated to this initiative 
in 2004, 2005 and 2006, at which point the initiative was incorporated into a broader private sector 
development facility. These resources  were disbursed based on project size (micro, medium and 
large).  
CANADA 
Report by the Secretariat (WT/TPR/S/219)  
Part I. Economic Environment: (3) Main Policy Developments; (IV) St ructural reforms: paragraph 29, 
page 10: 
 
1. Could Zambia please provide an update on the me asures being taken to reform the Fertilizer 
 Support Program? 
 
The Zambia Fertilizer Support Programme is aimed at enhancing productivit y among small-scale 
farmers. Zambia views the Fertilizer Support Program as an important tool for supporting small-scale farmers and promoting food security. K435bn has b een allocated to this programme in order to 
enhance access of rural farmers to fertilisers in the 2009. 
 In response to concerns about the FSP’s targeting,  the Government has initiated a comprehensive 
review of the programme with a view to improve its efficiency and effectiveness, especially with 
regard to distribution at district and constituency l evel. Among the measure include the establishment 
of agro dealers supply networks in rural areas a nd improved inputs utilisation and beneficiaries’ 
performance monitoring mechanisms. 
 
2. Could Zambia explain what steps they have taken to date to ensure that there is a sustainable 
 and investment-friendly electricity tariff?  Zambia recognizes that existing electricity tariffs make it difficult to attract both foreign and domestic 
investment in the sector, and that current tariffs ac t as a bottleneck for the development of the private 
sector as a whole.   In an effort to sustain existing capacity as we ll as attract additional investment in the sector, 
electricity tariffs are being adjusted upwards in tw o phases to reach cost recovery levels by the end of 
2011. Following on from the Energy Regulation Board’s (ERB) adoption of multi-year tariff 
framework in 2007, the ERB granted the state- run utility ZESCO a 35% tariff increase effective 
August 2009. In April 2010, electricity tariffs w ill increase by an additional 26%. The growth of 
Zambia’s productive sectors will place increasing dem ands on electricity providers, but it is expected 
that this growth will gradually reduce the cost  of generation and transmission due to increased 
economies of scale.  
 
In addition, there is intent by Zambia to review th e Grid Code in order to set rules and procedures for 
the operation and pricing of the transmission network by end-December 2009.      3. Furthermore, could Zambia please provide a detailed update on its progress to date in 
introducing much-needed efficien cies to the state-owned power company ZESCO, including 
information on any new initiatives or significant changes to existing ones planned in the near-
medium term? 
 
One of the policy decisions taken by Governme nt to improve efficiency of ZESCO was to 
commercialize the entity.  ZESCO is now a comm ercialised entity with corporate autonomy and 
management accountability systems in order to enhan ce the company’s resource mobilization efforts.  
 WT/TPR/M/219/Add.1 
Page 8  
  
  Recently, a new board was constituted and chang es were made to ZESCO’s management and 
management structure. Included in the new struct ure is the position of Chief Operations Officer, 
which has since been filled.  
Other interventions include the following: 
 
• Improving the billing and collection syste ms by installing pre-paid meters; 
• De-linking ZESCO from the rural electrificati on programme which is now being undertaken 
by the Rural Electrification Authority; 
• Unbundling of generation, transmission and distri bution activities to facilitate private sector 
participation in the electricity sub-sector; and 
• Streamlining the labour force to reduce costs related to labour. 
 
Part III. Trade Policies and Practices by Measure : (4) Measures Affecting Production and Trade; 
(vi) Protection of intellectual property right s; (a) Overview: paragraph 78, page 47: 
 The paragraph states: "The amended IP legisl ation will include protection for utility models, 
geographical indications, and appella tions of origin and will include amendments to the Patents Act 
extending protection to 20 years (in line with the TRIPS Agreement)."   
4. Could Zambia please expand on what kind of pr otection will be offered to "geographical 
 indications" and to "a ppellations of origin"? 
 
Protection to be availed in respect of "geographica l indications" and "appellations of origin" will be 
in the form of exclusive legal rights enforceable in a c ourt of law. This protectio n will be akin to that 
available to trademarks. Finer details of the subj ect and object of these rights will nevertheless be the 
subject of review during the imminent revision of law.  
 
Part IV. Trade Policies by Sector: (3) Mining; (iii)  Regulatory and fiscal fram ework; (a) Regulation of 
the mining sector: paragraph 28, page 58: 
Canada notes the establishment of an Environmen tal Protection Fund under the Mines and Minerals 
Development Act of 2008 whose stated purpose is to address environmental liabilities of mining 
investors by ensuring that the holder of a license or permit executes their environmental impact statement in accordance with the Act and to protec t the Government against the risk of having to 
rehabilitate a mine site in the event a mining license holder fails to do so. 
 
5. Could Zambia please provide the details as to how the Environmental Protection Fund 
 operates?  Zambia is committed to ensuring environmental conservation even as she pursues her industrial 
objectives, particularly in the mining sector.   The Environmental Protection Fund (EPF) is run by  a Fund Manager who reports to the Ministry of 
Mines and Mineral Development. All mine developers are required by law to make contributions to 
the EPF, and each developer’s contribution is  based on the following three factors: 
   WT/TPR/M/219/Add.1 
 Page 9 
 
 
1. Compliance with mining rights conditions and environmental regulations, 
2. Nature and the extent of environmental damage, 3. Exposure to the risk that Government  may have to undertake remediation. 
 
These three factors are assessed through annual environmenta l audits by independent experts. 
Additionally, these audits measure performance against the approved Environmental Management 
Plans and determine the cost of rehabilitating affected  areas to their original state. Developers then 
make a cash contribution to the EPF which is a percen tage of the total closure costs. The balance is 
secured through a bond, letter of credit, or bank guarantee.  
6. Could Zambia also please explain how the Director  of Mines Safety establishes that a mining 
 license holder fully and properly execute s its environmental impact statement? 
 
The Director of Mines Safety carries out rou tine inspections to monitor adherence to agreed 
environmental impact statement (EIS) as well as  environmental regulations. Inspection criteria 
include effluence emissions and mining methods. In addition, mine developers are required to conduct 
annual environmental audits through independent experts. The reports of the audits are submitted to 
the Director for evaluation. 
 
7. Is the Environmental Protection Fund expected  to provide sufficient funds to allow for 
 rehabilitation when a license holder fails to reha bilitate a site? If so, how will this be secured? 
 Yes. The contribution each mine developer makes is based on the assessed cost of rehabilitation and 
the whole cost is secured through the cash de posit, bonds, letters of credit or bank guarantee. 
 
8. What actions does the Government take to determine if a license holder plans for site 
 rehabilitation in a timely manner?  Government is able to determine that the licen ce holder is doing progressive rehabilitation through 
the Mine Safety Department’s routine inspections and the annual audit reports  submitted by licence 
holders.  
 
Part IV. Trade Policies by Sector: (3) Mining; (iii) Regulatory and fiscal framework; (b) Changes to 
the tax regime: paragraph 30, page 58: 
 Canada notes the Government intended to estab lish a separate Mining Resource Account (MRA) at 
the Bank of Zambia, which was to be a stabiliza tion fund to smooth expendi tures over time and to 
finance high priority projects identified in the FNDP. 
 
9. Given that all of the 2008 tax changes proposed by the Government have not been 
implemented, is it still the Government's in tention to establish the MRA or has it been 
established?  
 
In 2008 Zambia introduced and implemented a new fiscal and regulatory regime in order to bring 
about an equitable distribution of the mineral wealth through the financing of high priority projects 
identified in the FNDP.  To this end, the MRA wa s established in 2008, owing to the high copper 
prices.     However, due to declining tax receipts from th e mining sector, as a result of the global economic 
crisis, revenues from the Mineral Revenue Account  were not channelled to specific programmes but 
were instead used to finance ge neral government expenditure in or der to finance the unanticipated 
budget deficit.  
 WT/TPR/M/219/Add.1 
Page 10  
  
  10. If yes, how does the Government foresee these funds being utilized? 
Please see question 9 above. 
 
Part IV. Trade Policies by Sector: (3) Mi ning; (iii) Regulatory and fiscal framework; 
(c) Transparency: paragraph 34, page 59: 
Canada is pleased to note that Zambia is in  the process of signing the Extractive Industries 
Transparency Initiative (EITI). 
11. Although the EITI should help smooth tax reve nues over time, given the current challenges 
faced by the Government related to depressed  global demand and prices for copper, is the 
Government aware if firms owning Zambian mine s are engaged in voluntary corporate social 
responsibility activities and, if so, what types and where? 
 
All large-scale mining companies such as Mopani, Konkola Lumwana and Kanshashi have continued 
to engage in voluntary corporate social responsib ility (CSR) activities, including support to health 
and education programmes, sporti ng activities and infrastructure development. CSR programmes 
undertaken by the Albidon Munali and Luanshya min es may have declined due to their mines being 
placed under care and maintenance, but it is exp ected that CSR activities will continue once 
production resumes.  
 
Part IV. Trade Policies by Sector: (6) Services; (ii) Telecommunications: paragraph 60, page 66:   
The Secretariat notes that Zambia's government plans to remove barriers to entry for new operators by 
reducing international gateway license fees to re gional averages (average in several neighbouring 
countries is between US$50,000 to US$100,000) to a ddress the lack of investment in the fixed-line 
sector.   
12. Could Zambia please provide Canada with an  update on the timeline and details of the 
anticipated removal of the barriers to entry for new operators by the reduction of international 
gateway license fees? 
 
The international gateway licence fees will be reduced  by the end of the year as indicated in the 2009 
National budget speech. 
 
EUROPEAN COMMUNITIES 
Government's report (WT/TPR/G/219)
 
 III. TRADE DEVELOPMENTS AND POLICY   
WT/TPR/G/219 Page 11, paragraph 38
 
 The EC would like to report the following factual error: "Zambia is in the process of negotiating a full
 
EPA..." (not  "interim"). 
 
Noted 
 WT/TPR/G/219 Page 11, paragraph 40
 
 
Zambia mentions the continued pu rsuit between 2002 and 2008 of a tr ade policy aimed at diversifying 
into non-traditional exports (NTEs) to move aw ay from overdependence on the export of copper.   WT/TPR/M/219/Add.1 
 Page 11 
 
 
1. Could Zambia give further details on the actions  undertaken by its Government to encourage 
 non-traditional exports (NTE) to move away  from its overdependence on copper exports? 
 
Zambia has undertaken and continues to u ndertake export expansion programmes through the 
Zambia Development Agency, formerly the Export Board of Zambia.  Zambia has pursued an 
aggressive export development and promotion programme  through a two-pronged strategy - market 
development and product development. The government  also promotes value addition as a way of 
increasing NTE value. Additionally, Zambia has put in place measures aimed at streamlining export 
procedures. 
To develop an increasingly competitive portfolio of ex ports, Zambia continues to focus on improving 
the quality of existing exports (par ticularly design and packaging), he lping existing firms develop new 
export products, and promoting start-ups with  new products. Product development initiatives 
undertaken since 2002 have included:  
• Market adaptation of handicrafts products with assistance from the EU Export Development 
 Programme and USAID resulting in at least USD 1 million in increased exports,  
• Quality upgrading in the leather sector resulting in landmark exports to Daimler-Chrysler 
South Africa since 2004 and total leather expor ts doubling from USD 5 million in 2005 to 
USD 10 million in 2008, 
• Packaging upgrading in various sectors through ta rgeted technical training and facilitation 
through Trade Facilitation Offi ce of Canada and USAID.  
 Comprehensive export strategies have been developed for the honey and horticulture sectors, and 
strategies for the cassava and wood  sectors are under development.  
 Zambia also continues work to encourage expor ters take advantage of market  access initiatives using 
trade missions and buyer-seller missions, as well as by participating in trade fairs. Direct exports 
resulting from these activities since 2002 are estimated to exceed USD 300 million.   
As a result of such targeted interventions by the government in the NTE sectors, DRC and South 
Africa’s combined share of Zambia’s NTE’s increased from 39% to 55.6% between 2002 and 2008. 
These two markets were targeted as key growth markets, and this market development programme 
was rolled-out in Malawi, Tanzania, Angola, Mozambique and other countries in the region.  
Further efforts to promote NTEs included prov ision of incentives through negotiated Investment 
Promotion and Protection Agreements with compani es such as Zambia Sugar PLC and Lafarge for 
production expansion of sugar and cement respectively. Zambia is also promoting the promoting of 
Multi-Facility Economic Zones where value-added pr oducts for exports are being manufactured. To 
date, US$500 million has been invested in MFEZs.    
Table 1: Zambia’s Exports, 2002-2008  
 2002 2003 2004 2005 2006 2007 2008 
Total NTEs 368.33 415.18 484.91 565.69 757.2      826.59  1,208.81 
NTE Growth % 18.12 12.72 16.8 16.66 33.85          9.16  46.24 
Metal Exports US$'m 559.7 669 1,358.8 1,644.2 3,084.1   3,400.3  4,000.8 
Metal Export Growth % -5.14 19.46 103.11 21 87.57 10.25     17.66 
Total Exports Growth 2.83 16.79 70.06 19.86 73.82        10.04  23.25   
NTEs as % of Total Exports 39.68 38.29 26.3 25.6 19.71        19.56  23.2   
Total Exports US$'m 928.03 1,084.18 1,843.71 2,209.89 3,841.30 4,226.89 5,209.61 
Source: Zambia Development Agency and Bank of Zambia. WT/TPR/M/219/Add.1 
Page 12  
  
  01,0002,0003,0004,0005,0006,000
2002 2003 2004 2005 2006 2007 2008Figure 1:  Trend Analysis for Zambia's Exports, 2002-2008
Export Trends 2002-2008
in US$ Million
Metal Exports
US$'m
Total NTEsTotal Exports
US$'m
 
IV. ZAMBIA AND THE GLOBAL TRADING SYSTEM 
(2) IMPLICATIONS OF OTHER TRADING ARRANGEMENTS (ii) Everything but arms  WT/TPR/G/219 Page 16, paragraph 79
 
The EC would like to report the following factual error: "Zambia benefits  from almost complete…" 
(not "will benefit"). 
 Noted 
 
WTO SECRETARIAT'S REPORT (WT/TPR/S/219
) 
 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(4) TRADE AGREEMENTS AND ARRANGEMENTS (ii) Regional agreements 
 
WT/TPR/S/219 Page 24, Paragraph 27
 
 
Zambia is a member of the Southern Africa Development Community (SADC) and the Common 
Market for Eastern and Southern Africa (COMESA).    2.  As a member of both the SADC and the CO MESA, could Zambia elaborate on how social 
and labour issues are addressed within  those two regional agreements?  
Social and labour issues are enshrined in the COMESA  and SADC treaties as an integral part of the 
regional integration objectives of both regional economic communities.  Both SADC and COMESA have undertaken gender initiatives. SADC has a gender protocol for 
female representation at all levels of decision- making, while chapter 24 of the COMESA Treaty 
recognises the role of women in development. To this end, COMESA has established a separate 
division at its Secretariat on women and social affairs. COMESA also has trading houses that 
purchase agricultural products from sm all-scale traders, particularly women.   WT/TPR/M/219/Add.1 
 Page 13 
 
 
Within SADC, members are encouraged to harmoni se their political and socio-economic policies and 
plans, and develop policies aimed at the progressive e limination of the obstacle to free movement of 
capital, labour, goods and services.  SADC has in place a charter on fundamental social rights, and 
codes of conduct on child labour, HIV and AIDS  and employment, as well as social security. 
Additionally, the SADC council of ministers also approved an HIV/AIDS Fund to facilitate resource 
mobilization for this cause. 
 A specific directorate has been established under SADC  to deal with social related activities – The 
Directorate of Social and Human Development and Special Programmes (SHD & SP). The Directorate’s current intervention areas include health and pharmaceuticals, HIV and AIDS, 
education, skills development and capacity buildi ng, employment and labour , science and technology 
and innovation.  Programmes being implemented include the annual  commemoration of the SADC malaria day, a 
quality assurance capacity building programme for higher education institutions, mainstreaming HIV 
and AIDS programmes in the education sector, and the implementation of a multi-sectoral response to 
preventing the spread of HIV and AIDS. Additionall y, specific programmes have been developed on 
occupational health and safety. For instance, SADC  is implementing the Work and Health in Southern 
Africa (WAHSA) programme aimed at improving th e work environment, occupational safety and 
health.  
With regard to COMESA, the Treaty provides for th e establishment of technical committees, including 
the committee on Labour, Human Resources and Social and Cultural Affairs. Chapter 21 – 
Article 143 of the COMESA Treaty also lays out sp ecific areas of cooperating on social and cultural 
affairs, which extend to employment and working  conditions, labour laws, vocational training, 
cultural and sporting exchanges and the prevention of disease, among others. Finally, Chapter 28 of 
the COMESA Treaty recognises the need to free movement of persons, labour, services and the right 
of establishment and residence.  In terms of COMESA programmes, COMESA strives  to promote small-scale traders, mostly women 
and youths, using the Simplified Trade Regime.   
WT/TPR/S/219 Page 24, Paragraph 28
 
 According to paragraph 28, there are plans to est ablish customs unions both within SADC and within 
COMESA. 
3.  Could Zambia provide a more detailed agenda for the implem entation of the customs unions 
within each of the two regional groupings? 
 
The COMESA Treaty provides for the establishment of a Customs Union ten years after the adoption 
of the Treaty as part of the deepening regional integration.    Progress has been made towards the following: 
 
• The adoption of a common external tariff based on four bands: 
o Capital goods: 0%  
o Raw materials: 0%  
o Intermediate products: 10% and  
o Finished products: 25% 
• Alignment of national tariffs towards a co mmon tariff nomenclature based on harmonized 
 system 2007. WT/TPR/M/219/Add.1 
Page 14  
  
  • Adoption of a common customs valuation syst em – the WTO customs valuation agreement 
 
• The adoption of a Common Customs Management Act which sets out customs rules and 
procedures to be implemented by customs adm inistrations and has been adopted by Directors 
of Customs, 
 
• The designation of sensitive products that will in the medium to long term need exceptions, 
exclusions  and derogation from the agreed CET rates,  in pursuit of  the principle of 
flexibility and policy space.  
 The COMESA Customs Union was officially launche d at the Heads of State Summit held in June, 
2009 in Victoria Falls. At this meeting, the counc il regulations governing the Customs Union, the 
Customs Union Management Regulations, and the Public Procurement Regulations were adopted. 
Additionally, it was determined that the common ext ernal tariff will be implemented by members 
within a three to five year transition period.  The Regional Indicative Strategic Development Plan (RISDP) for SADC sets out a roadmap towards 
realizing SADC’s ultimate objective of depending reg ional integration with a view to accelerating 
poverty eradication in the region and the attainme nt of broader development goals. The RIDSP 
Implementation Matrix provides for a process of nego tiation of the two main el ements of the Customs 
Union, namely, the common external tariff and a legal framework for the establishment of the 
Customs Union by 2010.  
The Ministerial Task Force on Regional Integra tion established Technical Working Groups (TWGs) 
to facilitate the development, negot iation and adoption of frameworks in the following four key areas: 
• The common external tariff, 
• Legal, administrative and in stitutional arrangements, 
• Revenue collection, distribution and/o r sharing mechanism (including the 
 development fund), 
• Policy harmonization. 
 Zambia is actively participating in these technical working group meetings. 
 
4. Taking into account the fact that any country may adhere to only one Customs Union, what 
approach has Zambia envisaged in order to prevent conflicting obligations arising from its 
current commitments toward two different customs unions? 
 
Zambia is committed to the objectives of the COMESA-EAC-SADC Tripartite arrangement. One of 
the major objectives of the Tripartite arr angement is addressing the issues of overlapping 
membership by immediately starting to work to wards merging into a single regional economic 
community. To this end, technical work has begun on a variety of issue areas. 
 
5. Given the complexity and the economic impli cations of establishing a customs union, has 
Zambia considered whether the available r esources should not be concentrated at the 
appropriate point in time on only one of the two options presently pursued? 
 
Zambia derives benefits from both SADC and COME SA membership due to differences in the two 
regions’ import demands. Zambia receives a signific ant proportion of imports from SADC, largely 
inputs to the industrial and mining sectors from South Africa. However, Zambia’s has had a positive 
trade balance with COMESA members for the past  three years and is keen to continue pursuing 
export opportunities in the COMESA region. Hence, Zambia continues to actively engage with both 
SADC and COMESA and remains committed to the Tr ipartite agenda which is aimed at creating a   WT/TPR/M/219/Add.1 
 Page 15 
 
 
wider free trade area and developing common corrido rs. The harmonization of programmed provides 
an optimal solution to the issue of dual memb ership and overstretching of limited resources. 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE (2) MEASURES DIRECTLY AFFECTING IMPORTS 
(i) Customs procedures 
(c) Customs valuation 
 
WT/TPR/S/219, Page 31, paragraph 11
 
6. Could Zambia explain the reason why "the dutiabl e value of goods is always considered to be 
not less than the f.o.b. price of the goods to the importer", while it is understood that customs 
valuation is based on price plus transport costs? 
Zambia has opted to include transportation and insu rance as part of customs value in her customs 
legislation in line with the provis ions of Article 8(2) (a) and (c) of the WTO valuation agreement. It 
therefore follows that an FOB price (transaction va lue without transport and insurance costs) will 
always be less than the CIF value because the FOB price would be adjusted to include freight and 
insurance to arrive at  the customs value. 
 It is worth noting that the customs value in Za mbia comprises the price,  insurance and freight 
including other adjustments that may be applicab le in line with Article 8 (1) (a) and (b).  
 
7. Could Zambia confirm that "where the transa ction value cannot be ascertained, the price 
actually paid for similar goods (…) is determined as the 
transaction value" (in accordance 
with Art. 2 et seq of the WTO Agreement on Customs Valuation)? 
 
Transaction value (price actually paid or payable) ad justed to include among other costs, freight and 
insurance is the primary basis of determining cu stoms value. If, however, there is no price paid or 
payable, or the price paid or payable is not acceptabl e (for reasons such as relationship influencing 
price, goods on consignment, etc.), customs determ ines the customs value using the transaction value 
of identical goods adjusted in line with article 8 of the WTO valuation agreement. 
 The transaction value of similar goods is only applic able in determining the customs value where no 
identical goods were imported w ithin reasonable comparable time.  
 
(ii) Tariffs  
(b) Bound tariffs  
WT/TPR/S/219, Page 35, paragraph 20
 
The absence of bindings for most of the tariff lines and the gap between the average applied and the 
bound rate create a significant degree of unpredictability for traders.  
 
8. Does Zambia have any near-term plan to increase the coverage of tariff bindings? 
 As stated in above, analytical work is being undert aken to take an informed decision on this matter. 
 WT/TPR/M/219/Add.1 
Page 16  
  
  (x) SPS measures  
 WT/TPR/S/219, pages 39, paragraph 44
 
 
9. Within what timeframe does Zambia believe it w ill be possible for it to effectively implement 
 the WTO SPS Agreement? 
 
Zambia is already implementing most of the pr ovisions of the WTO SPS Agreement in terms of 
transparency, use of the phytosanitary capacity evalu ation (PCE) tool for compliance and training of 
plant health inspectors in the application of the international standards for phytosanitary measures 
(ISMs). Zambia’s inability to m eet SPS requirements remains a si gnificant barrier to the country’s 
ability to break into export ma rkets. Additionally, the cost of meeting SPS requirements and 
implementing the WTO SPS Agreement remains prohibiti vely high, As such, Zamb ia is keen to work 
with cooperating partners to develop and implemen t practical technical assistance programmes to 
build its competitiveness and capacity to implement the Agreement. 
 
(b) Plant health  WT/TPR/S/219, pages 39-40, paragraph 47
 
 
The report states that a new Plant Protection Bill has been prepared and is cu rrently undergoing public 
review and comments.   
 
10. Could Zambia please inform how this new legisl ation would be made available to exporters 
and if the legislation will be published on the IPPC website? 
 
Once the final revisions are made to the Plant Pr otection Bill, the necessary extracts required to 
guide importers and exporters (where to obtain cer tificates and permits, etc.) will be posted on the 
Zambia Agricultural Research In stitute website (http://www.zari.gov.zm/) and disseminated using 
brochures and other media. 
 
(3) MEASURES DIRECTLY AFFECTING EXPORTS 
(ii) Export taxes 
 WT/TPR/S/219, page 40, paragraph 51
 
 11. Could Zambia explain whether the imposition of export taxes has had any meaningful results 
in terms of increased domestic processing capacity? 
 
Yes, export taxes are encouraging value addition in  a variety of sectors. For example, mining 
companies are constructing smelters to process copp er concentrates. With regard to cotton seeds, 
Zambia is now ginning its own cotton in the East ern and Southern provinces as well the production of 
stock feed and cotton seed oil.  
 
12. What has been the budgetary impact of these export levies on copper concentrates and cotton 
seed (in percentage of overall budget revenues)? 
 
The objective of the export duty is to deter th e export of copper concentrate and cotton seeds to 
encourage local value addition. In this regard, the budgetary impact as a percentage of the overall 
revenue is minimal (1.6% of domestic revenue) l,  as the measure was not designed for revenue 
purposes.  
   WT/TPR/M/219/Add.1 
 Page 17 
 
 
(3) MEASURES AFFECTING PRODUCTION AND TRADE (iv) Role of state-owned en terprises and privatization. 
 WT/TPR/S/219, page 46, paragraph 73
 
 
13. Does Zambia envisage continuing the privati zation process of the remaining state owned 
companies in the near future?  
 
Yes, Zambia remains committed to the continuation of the privatization process by finding the optimal 
transition and ownership arrangement for each company. Some of the companies earmarked for 
privatisation include Zambia Telecommunication Company (Zamtel), (telecommunication sector) and 
Maamba Collieries (coal mining).  
 
(vi) Protection of intellectual property rights (a) Overview 
 
WT/TPR/S/219, page 47, paragraph 77 
 
 
The EC welcomes plans to review intellectual property legislation. 
 
14. Could Zambia give any indication of when the review of the intellectual property legislation 
is likely to be completed and the ensuing changes implemented? 
 
It is expected that layman’s drafts of revised inte llectual property legislation should be finalized by 
mid-2010, after which they are to be tabled before the National Assembly. Subject to the legislative agenda of the National Assembly, the relevant laws  should be enacted by mid-2011. Some of the 
ensuing changes proposed include those related to  the legislation of service marks and aligning it to 
the relevant international agreements and conventions.  
V. AID FOR TRADE 
(4) WTO TRADE RELATED TECHNICAL ASSISTANCE (a) Trade facilitation 
 
WT/TPR/S/219, page 78, paragraph 15
 
 
We recognize the major challenges that facilitating trade implies for land-locked countries such as 
Zambia and thus the related need for assistance. 
 
15. Could Zambia further specify the main measures that it is looking to adopt in order to 
facilitate trade? 
 
As evidenced by the 2009 Doing Business Report, trad ers in Zambia face some of  the highest costs of 
trading across borders in the world. They face i nadequate and costly trans port networks and border 
posts with limited capacity.  
 Zambia is committed to enhancing trade facilita tion by modernizing Zambia’s border posts and 
creating a number of one stop border posts. In this regard, Zambia passed enabling legislation to 
provide for the establishment and implementation of  one stop border posts and is in the process of 
implementing a one stop border post at the busy Chirundu border with Zimbabwe. Furthermore, 
Zambia is extending the pilot Customs Accredited Client Program to allow a greater number of 
eligible businesses to access fast -track services. In addition, Zambia  is undertaking business licensing 
reforms aimed at reducing the number of licenses required to establish and operate business among 
others. WT/TPR/M/219/Add.1 
Page 18  
  
  However, it is important to note that Zambia’s borders still face significant challenges in clearing 
goods in a timely fashion due to limited infras tructure. Increased connectivity at border posts and 
infrastructure investment is required to assist bor der agencies share information, reduce clearance 
times and ultimately reduce the costs of doing business.  To this end, Zambia is promoting public-
private partnerships as a mechanism fo r improving border infrastructure.  
 
Finally, Zambia plans to continue monitoring the time it takes to release goods at the border in an 
effort to identify and tackle bottlenecks.  JAPAN 
Secretariat Report (WT/TPR/S/219)
 
 I. ECONOMIC ENVIRONMENT 
(5) FOREIGN DIRECT INVESTMENT 
(Question 1: page 15, paragraph 38) 
 
The Secretariat’s report states that ‘In recent years,  agriculture has been attracting FDI, directed 
mainly at the production of fruit, flowers, horticultu ral products, cotton, maize, tobacco, and sugar’.  
 Japan would like Zambia to provide  more detailed data on the current and expected FDI inflows in the 
agricultural sector in Zambia, such  as the amount of FDI by countries and by products, if available. Also 
please explain your policy on FD I in the agricultural sector.  
 
FDI in the agricultural sector is guided by the Zambia Development Agency Act, which provides a 
variety of fiscal incentives to domestic and foreign in vestors in priority secto rs. Zambia’s priority 
sectors include horticulture, floriculture, tea, coffee, cotton, and palm oil. 
 While projections for all sub-sectors are not avai lable, USD 18.6 million ha s been pledged in the 
poultry sector. FDI inflows for the 20 02-2008 period by agricultural sect or can be found in the table 
below: 
 
Table 2: Agricultural FDI Inflows by Sector, 2002-2008 
Sector Investment (USD) Employment 
Agro-processing 23,640,940 3,567 
Crop farming 114,875,389 8,996 
Crop farming/dairy farming 2,812,390 324 
Crop farming/poultry farming 11,630,000 576 
Dairy farming 588,000 40 
Fish farming 1,358,385 303 
Floriculture 5,191,907 531 
Floriculture/crop farming 5,710,000 3,651 
Food, beverages and tobacco 101,000 123 
Horticulture 3,174,380 245 
Mixed farming 41,474,652 6,457 
Poultry 42,618,179 736 
Seed production 1,000,000 12 
Other 11,405,382 794 
Total 265,580,604 26,355 
MEXICO  
 We would be grateful if Zambia would repl y to the following questions which pertain to 
document WT/TPR/S/219/Corr.1 of 23 June 2009.   WT/TPR/M/219/Add.1 
 Page 19 
 
 
IV. TRADE POLICIES BY SECTOR/ (6) Services/ (i ) Financial services/ (c) Financial Sector 
Development Plan 2004-2009   According to paragraph 57, the Financial S ector Development Plan is a comprehensive 
response to the stability and development needs of  the financial system.  Have all the reforms 
included in the Plan been carried out, or what is their current status? 
 
A number of the reforms outlined in the five-yea r FSDP had been achieved by the time the FSDP 
lapsed at the end of June 2009. To name a few, Zambia’s first credit refe rence bureau was introduced 
in 2006, and this CRB collates both negative and positive information. Effective December 2008, all 
banks and non-bank financial institutions under Bank  of Zambia supervision must use the CRB’s 
services in issuing new loans. Furthermore, FinScope studies on the demand for and supply of financial services were undertaken in 2005 and 2007. In  addition, all the financial sector regulatory 
authorities adopted international financial reporting standards.  Finally, Zambia implemented turn 
around plans for state owned financial instituti ons to enhance their capital base over time and 
increase their role as specialized service prov iders for development finance, housing finance and low-
to-middle income savings and credit.   Zambia is currently discussing an FSDP Phase II Pr oject with the World Bank and IMF. Outstanding 
issues include the approval of investment guidelines for public and private pe nsion funds, finalization 
of the sovereign credit rating for Zambia and th e proposed modernization and harmonization of 
11 pieces of financial sector legislation, and enh ancing activity in the secondary securities market. 
 Quarterly FSDP progress reports are made available to the public at www.boz.zm. 
 
IV. TRADE POLICIES BY SECTOR/ (6) Services/ (ii) Telecommunications 
 
• Paragraph 62 states that in 2002, entry into th e provision of international services opened with 
licences to be allocated through competitive tender but that a licence fee was set at 
K 300 million (later reviewed to US$12 million).  In practice, the prohibitively high licence fee (compared with an average in several  neighbouring countries of between US$50,000 and 
US$100,000) acts as an effective barrier to entr y for new operators.  Does Zambia intend to 
reduce the licence fee? 
 
Please refer to the response to Canada’s similar question.  
 
UNITED STATES 
III. Trade policies and practices by measure 
(1) Introduction  Page 29, paragraph 1:  The Secretariat’s report not es that trade policy and ta riffs have been largely 
unchanged in Zambia since the 1990s.  Yet, the larg e gap between the average applied rate of 13.4% 
and the bound rate of 105.7%, and the absence of bindings for over 83% of tariff lines "creates a 
degree of unpredictability for traders..." Given that  there does not appear to be a need for this 
disparity, why does Zambia continue to maintain such a large gap between the bound rate and the 
average applied rate?  What plans does Zambia have to narrow this gap? What are Zambia’s plans to 
extend its bindings to a greater number of lines? 
The U.S. has rightly pointed out that Zambia's trade policy and tariff rate regime have remained 
unchanged since the 1990s. This is an indication that Zambia's trade policy and tariff regime are 
stable and thus the business commu nity is assured of stability in  the policies implemented by 
government.  As government, no complaint has b een received from traders regarding the lack of 
predictability in the tariff regime. WT/TPR/M/219/Add.1 
Page 20  
  
  With respect to the large gap between Zambia’s a pplied and bound rates, as you know Zambia is one 
the countries ranked most open in terms of trade po licy. Zambia is also a country that remains 
vulnerable to exogenous shocks, as has been witness ed from the current global economic crisis. With 
an industrial and general economic ba se that is still fragile, precautiona ry interventions must be taken 
when needed. One of the avenues that could be most effectively used without contravening any 
multilateral rules is the policy space that the binding commitments provide. 
 Regarding the extension of bindings to a greater num ber of lines, Zambia is undertaking analytical 
work on this matter in order to take an informed decision. 
 
(2) Measures Directly Affecting Imports 
(i) Customs procedures (c) Customs valuation  Page 30, paragraph 9:  When it is necessary to dela y the final determination of the customs value does 
Zambia have a system which nevertheless permits  the importer to withdraw his goods from customs 
upon providing sufficient guarantee to cover th e ultimate payment of the customs duties? 
 
Zambia has within its customs procedures a provisi on to release goods subject to a valuation dispute 
or where, for any other reason, it is necessary to delay the determination of the customs value on 
condition that the importer lodges a monetary deposit with the customs services division. 
 Page 31, paragraph 11:  The Secretariat’s Repor t states that when transaction value cannot be 
ascertained, the price of similar goods is used.  In cases where the transaction value cannot be 
accepted, does Zambia determine the customs valu e in the order prescribed  by the WTO Customs 
Valuation Agreement?    The valuation methods are applied in the order pre scribed by the WTO valuation agreement. The first 
three are the most commonly used valuation methods in Zambia. 
 
Page 31, paragraph 12: Please elaborate on how Za mbia’s valuation database is used?  How often 
does the government update the values contained in the database?  How does Customs determine the 
customs value for shipments when there is a large difference betw een the declared value and the 
database value? 
 
The valuation database (which is a collection of accep ted invoice values) is u sed to test declared 
values. Officers of customs at entry points keep c opies of previously accepted invoices and the details 
from these invoices are fed into the database. In the event that th ere is a wide difference between a 
declared customs value and a database value, cust oms engages the importer to explain or provide 
further documentation or information to support the declared value, and should it become apparent 
that the declared value does not conform to the provisions of Article 1 of the WTO customs valuation agreement, Zambia applies the alternat ive valuation methods in sequence.  
 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(vi) Protection of intellectual property rights (d) Copyright  Page 47, paragraph 78: What is the anticipated  time frame for completion of the Copyright and 
Performance Rights Act review mentioned in the Secret ariat’s Report?  Has this review resulted in a 
new draft copyright law or amendments?     WT/TPR/M/219/Add.1 
 Page 21 
 
 
The timeframe of the revision of the Copyright and Performance Rights Act is subject to the 
legislative agenda of the National Assembly. Until this time, the 1994 Copyright and Performance 
Rights Act will remain in force. 
 
(vi) Contingency measures  
 
WT/TPR/G/219, IV. Zambia and the Global Tr ading System, (1) Implementation of WTO 
Agreements, Page 15, Paragraph 69; and, WT/TPR/S/ 219, Page 37, Paragraphs 31-32:  In its Report, 
the Zambian government notes, "Safeguard legislation was enacted in 2006 under the Control of Goods Act CAP 421 in compliance with WTO, S ADC and COMESA provisions on safeguards. 
Several companies have applied for safeguards measures, though so far none have been found to 
warrant the imposition of safeguard measures."  In addition, the Secretariat’s Report notes that "I n November 2004, the Customs and Excise Act and 
the Import Control Acts were amended to a llow for safeguard measures to be applied." 
 
• When does the government plan to notify Zamb ia’s safeguard legislation enacted in 2006 in 
accordance with the WTO Agreement on Safeguards? 
 
Zambia is in the process of notifying the Committe e on Safeguards on the enac tment of the Safeguards 
Legislation. 
 • Although the government reports that no safegua rd measures have yet been imposed, several 
companies have applied for safeguard measu res. Has Zambia initiated any safeguard 
investigations in response to these applications?  
 Yes, after receiving the applications for consid eration for application of safeguards, the Ministry 
initiated preliminary investigations to establish wh ether the cases were appr opriate for  safeguards 
investigations.   After careful consideration of these applications and visits to their premises, it was found that the 
applications did not merit the invo cation of safeguard measures.  
 
CHINA 
Report by the Government
 
 
IV. ZAMBIA AND THE GLOBAL TRADE SYSTEM (4) ZAMBIA AND THE GLOBAL FINANCIAL CRISIS 
94. Zambia has during the review period regist ered strong macroeconomic gains with economic 
growth rates averaging 5% annually, with inflatio n declining to single-digit levels in 2006. The 
country experiences increased investment in-flows in many sectors including mining, manufacturing, 
tourism, transport and construction. However, th ese gains have been somewhat eroded by the global 
financial crisis.  
Question 1 
What is the forecast of economic growth for 2009? 
 
The forecast of economic growth as announced by the Minister of Finance and National Planning in 
the 2009 budget was 5%, and this remains the government ’s forecast.  This growth is expected to be 
generated from agriculture, tour ism, mining and manufacturing.  WT/TPR/M/219/Add.1 
Page 22  
  
  Questions 2 and 3 
What measures has the Government of Zambia taken to counter the impact of the global financial 
crisis on the Zambian economy? How does it evaluate the effectiveness of these measures? 
In view of the challenges that the economy is fa cing as a result of the global financial crisis, the 
Government will step up efforts to promote di versification and enhance national competitiveness 
through structural reforms and infrastructural d evelopment. Alongside this thrust, will be to 
safeguard vital social services. The 2009 Budget has prioritised infrastructure development by for 
instance increasing expenditure, with  the view to opening investment  opportunities for diversification, 
particularly in agriculture, touris m, and manufacturing.  In light of this and given constrained 
revenue, Government will realign resources and increa se domestic borrowing to 1.8 percent of GDP 
in 2009 from 1.4 percent of GDP in 2008. In addition the President recently announced measures 
aimed at containing expend itures within acceptable limits. 
 Some specific measures include the following:   
Agriculture 
The development of agriculture is one of the main pillars of poverty reduction for the majority of the 
Zambian people. The Government has made a 37 p ercent increase in the allocation to the sector, 
which is meant to help address some of the constr aints in the agricultural sector.   The Government 
plans to diversify production in the agriculture sector  and in this regard has provided resources for 
livestock development and creation of at least one disease-free livestock zone and development of the 
155,000 hectare  Nansanga Farming Block, which is expected to be the model of agricultural 
development in Zambia. The development of the fa rming block will include provision of roads, 
bridges, power supply and other infrastructure.  Government will also invest in various irrigation 
projects to lessen the dependence on rain-f ed agriculture and therefore improve productivity 
particularly among the small scale farmers.  Furt her, the value added tax on selected agricultural 
equipment and spares, has been zero rated as incentive to increase agricultural production and 
productivity.  Tourism Tourism can play a pivotal role in the diversifica tion process and in the attainment of broad based 
economic growth.  Government has doubled the alloca tion to tourism in order to tackle the main 
challenges facing the sector (such as inadequate in frastructure and service de livery as well as limited 
marketing activity) thereby creating employment opport unities for the people.  In this regard, 
Government will continue investing in road and ot her infrastructure (e.g. Telecommunications) in 
several key national parks and tourist areas. In par ticular, Government has increased the allocation 
to the sector to improve access to the Northern Tourism Circuit (infrastructural development in 
Mbala and Kasaba Bay). These developments are expect ed to attract more than 12 world class hotels 
in the area, thereby creating thousands of jobs for our people.  Further, Government will embark on 
the development of a new world class tourism area in Livingstone (the current tourist capital and 
home of the Mosi-o-Tunya Falls, one of the S even Wonders of the World). Development of road 
infrastructure in key national parks namely, Luangwa  and Kafue will also be stepped up. Overall, 
electrification and provision of improved air port/strips facilities and roads are among key objectives 
in the sector. 
Manufacturing 
In order to expand the manufacturing base, Governme nt is promoting the establishment of Multi-
Facility Economic Zones (MFEZ) on the Copperbe lt (Chambishi), and Lusaka (Lusaka south and 
east) provinces by providing for fiscal incentives,  quality infrastructure de velopment and a conducive 
regulatory environment in the budget. The cons truction of the Chambishi MFEZ has already   WT/TPR/M/219/Add.1 
 Page 23 
 
 
commenced, while the developments of high quality  infrastructure at the Lusaka south MFEZ will 
begin this year. Further, the budget reclassifie d and re-categorised certain manufacturing materials 
with the aim of lowering customs duty rates.   Mining  
In light of the adverse impact of the global economic crisis on the mining sector and with the view of 
easing these effects, the Zambian Government introd uced tax concessions, which included removal of 
the windfall tax, increasing capital allowance to 100 percent as an investment incentive, and 
reduction of customs duty on Heavy Fuel Oils. The Government has also continued to engage mining 
houses with a view of tracking developments in mining and undertaking any further actions as 
appropriate. 
 Energy In the recent years, the electricity sub sector has not performed up to expectations. Lack of 
reinvestment and/or inadequate rehabilitation in the sector led to electricity generation declining to 
9.5 million megawatts in 2008 from 9.7 million megawa tts in 2007. This in turn resulted in demand 
outstripping supply and consequently increased l oad shedding and blackouts in 2009, which severely 
disrupted economic activities and loss of competitiveness.   In responding to these challenges, th e focus of Government will be to  complete the rehabilitation of 
the electricity supply infrastructure by the e nd of 2009. The rehabilitation once complete will add 
230 megawatts to the existing capacity of the company. 
 In an effort to further enhance competitiveness and economic development, Government is also 
promoting private sector investment in hydro pow er generation capacity.  To this end, work has 
commenced on the Kariba North Bank Extension Proj ect which is scheduled for completion in 2012. 
In addition, feasibility studies for the Kafue Go rge Lower Project are due for completion and 
preparatory work to initiate the development of th e Itezhi-tezhi power project are in the process. 
 These measures that Government has put in place are exp ected to stimulate/ sustain growth in light of 
the global financial crisis with positive impact on diversification, competitiveness and employment/income, and delivery of vital social services to the Zambian people. 
 
Already, there  is evidence of positive developments in the mining  as mining companies have suspended closures and retrenchments, while so me are expected to resume operations(Luanshya 
Copper Mines, Chambeshi and Munali Nickel Mine) Furth er there  has been rela tive  stability in the 
foreign exchange market while inflation is on a downward trend. 
Report by the Secretariat
 
V. AID FOR TRADE 
(4) WTO TRADE-RELATED TECHNICAL ASSISTANCE (d) Notifications 
30. Zambia needs assistance in meeting its notification requirements to the WTO. 
Question 4 
Could the Delegation of Zambia please elaborate on this point?  
 
This question is based on the fact that Zambia during the period under review has not been able to 
fulfill all the notification requirements. The main re ason for this is due to mainly some human 
resource related constraints that we have had. The Department responsible has had to deal with a 
limited staff compliment having a vast number of  responsibilities in regional and multilateral trade. WT/TPR/M/219/Add.1 
Page 24  
  
  Zambia is glad to report that in the near future, the departmental staff compliment will be enlarged 
and this should cease to be a problem.  However, Zambia recognizes the need  for some technical assistance in the area of notification 
requirements especially for relevant Departments and Agencies that play a role in administering 
issues to do with the WTO Agreement s. It is in this regard, that during the year 2010, Zambia hopes 
to present a request to the WTO for a National Workshop on WTO notification requirements. It would 
be ideal that this program has a special focu s on a number of key agreements where Zambia has not 
been able to notify, for instan ce the Agreement on Agriculture and Technical Barriers to Trade. 
   WT/TPR/M/219/Add.1 
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RESPONSES TO OUTS TANDING QUESTIONS  
A. ZAMBIA PUBLIC PROCUREMENT AGENCY 
Two questions related to the new Public Procurem ent Act arose during the course of Zambia’s Trade 
Policy Review and were raised by the discussan t and the EC respectively. These are as follows: 
1. Can Zambia provide more information on the new regulatory framework and how the 
Government ensures the transparen cy of the current procurement practices and whether Zambia has 
any intention of joining the GPA, either as a memb er or as an observer? This question was raised by 
the discussant, in the first session. 
Government Procurement is governed by the Public  Procurement Act, No. 12 of 2008 and associated 
Tender Regulations.  The Act is applicable to all pub lic institutions, including government ministries 
and departments, parastatal and statutory bodies and loca l councils.  Zambia is not a member of the 
WTO Plurilateral Agreement on government Procurement. 
In order to ensure transparency, Invitations for bids are published in the Zambian Government 
Gazette and local English language daily newspapers. An 8-week period, dated from the first 
announcement in the Gazette, is allowed for In ternational Competitive Bidding and Limited 
International Competitive Bidding.  Bids must be submitted in accordance with the Instructions to 
Bidders.  Tenders are opened in public and price information is disclosed.   
The Public Procurement Act has a number of transparency provisions some of which are:- 
 a) The Act provides for inclusion of outside  members in the Public Committees in both 
Government Ministries and Parastatals. The outside members are not to be Public Officers or Parastatal Employees. (Section 17) 
 b) Prior authorization must be sought for use of Limited or Direct Bidding processes 
from the Zambia Public Procurement Ag ency (ZPPA). Evaluation reports must be 
approves and authorized by the relevant Procurement Committee, as well as 
amendment, cancellation, termination and award of contracts. (Section 22) 
 c) Open bidding is the preferred method of procurement (Section 25) 
 d) Procurement Planning for Procuring En tities is also mandatory by law (section 42). 
These plans are sent to ZPPA and ZPPA posts  them on the website so that all 
intending participants are aware of the procurement to be undertaken. 
 e) A Procuring Entity is required to, within  seven days of awarding a contract, publish 
the best evaluated bidder. (Section 53) 
 f) Section 70 allows for a review me chanism by the ZPPA for any aggrieved party 
during the tendering process. 
 g) Section 71 allows for arbitration a ccording to the Arbitr ation Act in case the 
aggrieved party is not satisfied with the review by the ZPPA. 
2. In 2008, Zambia enacted the Public Procurem ent Act. The Public Procurement Authority of 
Zambia has issued the following thresholds :  K30billion for goods, services and works and 
K10 billion for consulting services, including capital  expenditures from external assistance.  All 
government tenders exceeding these thresholds ar e handled by the Zambia Public Procurement WT/TPR/M/219/Add.1 
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  Authority. However, the Public Procurement Ac t does not indicate thresholds for international 
tenders. 
Can Zambia explain the conditions of eligibly of  foreign bidders for Zambian procurement and in 
particular from which threshold is the Zambian procurement open to foreign competition? (EC) 
As correctly observed, the Public Procurement Act does not indicate thresholds for international 
tenders, neither does it indicate for any type of te nder. The Act merely provid es for issuance of such 
thresholds by the Zambia Public Proc urement Authority as may be required. 
Section 26(2) of the Public Procurement Act states as follows:  A Procuring entity shall use open international bidding where –  
 a. The estimated value of the proc urement exceeds the prescribed threshold; 
 b. The goods, works and services are not ava ilable under competitive price and other 
conditions from at least three suppliers in Zambia; 
 c. Regional or international participation is  required in accordance with the agreement 
entered by the Government. 
The Zambia Public Procurement Authority is in the process of making consultations in order to 
establish a more effective threshold for interna tional tenders. In the absence of an established 
threshold, consideration for international tenders sha ll continue to be based on sub sections (2) (b) 
and (c). 
The thresholds issued by the Zambia Public Pr ocurement Authority (through Circular No 1 of 2009) 
are based on relevant factors, including the need to safeguard public finds, the need for efficiency in 
the procurement process and the capacity of procuring entities and approvals authorities. These 
thresholds have no bearing on whether a tender is international or otherwise.  
Even in the circumstances that a threshold is issued for international tenders, where goods and 
services are not available under competitive price and other conditions from at least three suppliers 
in Zambia, international bidders will still be eligible for participation. 
Section 63 of the Public Procurement Act prov ides for Preference and R eservation Schemes which 
will take effect once the draft Public Procurement Regulations are enacted. Thus, the setting of the 
threshold for international tenders will be issued  in accordance with the Public Procurement 
Regulations, and the Public Procurement Guidelines   yet to be developed. 
The eligibility of bidders is covered  by Section 61 of the Public Procurement Act. Section 62 also 
provides for qualification of bidders. The eligibility  and qualification requiremen ts are the same for 
both local and international bidders and are not tied to any thresholds.   
B. AID FOR TRADE 
Zambia is receiving significant amount of Aid for Tr ade and playing a leading role in the Integrated 
Framework (IF). What have been the benefits i. e. which program has Zambia found of practical 
benefit? (USA) 
The Private Sector Development Reform Progra mme (PSDRP) is perhaps currently one of the 
important programmes especially with regard to the rationalization and coordination of assistance   WT/TPR/M/219/Add.1 
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from cooperating partners in support to the Privat e Sector in Zambia. One of the critical areas 
receiving support under this programme is that of trade  expansion. It is also under the framework of 
the PSDRP that Zambia is implementing the enhanced Integrated Framework.  
Other Aid for Trade support has come through initia tives such as the Joint Integrated Technical 
Assistance Programme (JITAP) under which the country established National Enquiry Points for 
various trade related areas as well as Reference  Centres. The programme also enhanced Zambia’s 
negotiating capacity. On the gr ound, Zambia was able to develop strategies for the honey, 
horticulture/floriculture sectors among other activities. 
Zambia during the period under review was able to benefit from the second EU funded Export 
Development Programme (EDPII) in the developing of  productive capacities in the wood subsectors, 
coffee and high value products such as paprika. S upport through the EU funded Capacity Building for 
Private Sector Development (CBPSD) has played a vital role played in improving capacity in 
institutions working with the Ministry of Commerce,  Trade and Industry to deliver better services to 
the private sector. These organizations such as th e Zambia Development Agency, Zambia Bureau of 
Standards, Zambia Competition Commission e.t. c have received capacity building though human 
resource training, and equipment. This programme has also supporte d private sector associations 
such as the Honey Council and the Zambia Cham ber for Small and Medium Business Organisation 
(ZCSMBA). The programme also renders support to non-state actors. 
In the area of trade facilitation and reducing the cost of doing business, Zambia has received support 
from programmes under the Threshold Project, Japan International Cooperation Agency (JICA) to 
enhance border management and agency coordinati on through the Threshold Project. These has 
benefitted the country through enhanced border manage ment and agency coordi nation, reduction in 
the time it takes to register a company and the estab lishment of a One Stop Border Post at Chirundu 
Border Post.  
C. ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS 
One area that really did not come up in the discu ssion was intellectual property protection.  We noted 
on pages 49 to 50 of the Secretariat Report that Za mbia is having trouble (challenges) in 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. (USA) 
Enforcement of intellectual property rights has el uded many countries especially the developing and 
least developed countries. This has caused a numero us losses in terms of revenue to the IPRs creators 
and governments.  This is because mechanisms for en forcement of IPRs are complicated in the sense 
that most IPRs creators and users do not know thei r rights and therefore do not realize that others are 
infringing their rights and therefore depriving them  of their income. Additionally, the enforcement 
agencies may not be in a position to provide an effect ive mechanism for the protection of IPRs due to 
the technical nature of the subject matter. For developing countries like Zambia improved 
mechanisms of protecting intellectual property rights will promote innov ative economic and business 
activity, increase foreign direct investment, accelerat e technical transfers from developed countries 
and generally advance  the country’s technol ogical  and industrial development .  
In order to deal with the challenges related to the enforcement of Intellectual Property Rights (IPRs), 
the Ministry of Information and Broadcasting S ervices has formed the Anti-Piracy Crack Squads 
whose mandate is to fight piracy and counterfeits  in the country.  These Crack Squads comprise 
officers from the following law enforcement agencies and their role in the Squad :- 
 i. Drug Enforcement Commission-prevents money from piracy and counterfeit trade 
being laundered WT/TPR/M/219/Add.1 
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   ii. Office of the President-provide intellig ent information  to the Squad dealing in 
pirated and counterfeit goods 
 iii. The Council-Council own markets and with their by-Laws, they prohibit the sale the 
sale of illegal goods in markets 
 iv. Department of Immigration-check on foreigners engaging in counterfeit and piracy 
 v. Zambia Police with powers of arrest 
 vi. The Zambia Revenue Authority through order controls  vii. Zambia Bureau of Standards; and  viii. Journalists Against Piracy in Zambia-pro vision of information on the Activities of the 
Crack Squads 
In Zambia, the Zambia Police Service has created an Intellectual Property Unit which deals with IP 
matters. The Unit has concentrated among oth er duties on the enforcement of IPRs. They have 
however concentrated on the enforcement of copyrights. The reason could be that it is easier to detect 
copyright infringement as this involves mainly el ectronic items such as DVDs, Tapes, CDs and other 
related materials. The Police work closely with the Copyright Office which is at the ministry of 
information and broadcasting services. The copyright  office makes use of the amended copyright Act 
which has adequate provisions for enforcement whic h include seizure and destruction of counterfeit 
and pirated materials. The copyright office also works with the police IP Unit to monitor border 
points such as Nakonde where most of the counterfei t materials find their way into Zambia. This has 
assisted in reducing the scourge.  
The Zambia Revenue Authority has also opened an office which aims at dealing with counterfeits. 
This office has also established links with the Zambia Police IP Unit to add support to the 
enforcement crusade.  
Zambia is currently reviewing her In tellectual Property legislation and one of the elements is to make 
them more effective in the enforcement of IPRs . This will include introducing stiffer punishment for 
perpetrators of counterfeits and pirated products. It is  also envisaged that IPR infringement will be 
reduced if the act of infringement is criminalized ra ther than being just a civil offence.  Additionally, 
PACRO is constantly carrying out awareness progr ammes to the public to sensitize people on IPRs 
and their enforcement through the internet (PACRO Website), journals and newsletter..  It is hoped 
this and other efforts being undertaken by other en forcement wings will help in the enforcement of 
intellectual property rights in Zambia. 
Zambia has benefitted from capacity  building programmes in the admin istration and enforcement of 
IPRs. These have included Tradecom Facility, the Eu ropean Development Fund, IP Light Years under 
DFID, USAID, the World Intellectual Propert y Organisation (WIPO) and the International 
Development Law Organization (IDLO). These organiza tions have pledged to provide training and 
funds to Zambia to strengthen the administr ation and enforcement of IPRs in Zambia.  
D. TAXES ON SPIRITS With a combined duty/tax burden of over 250% ad valorem  on spirits, there is a strong incentive for 
illicit trade.  EC would therefore enquire about Zamb ia's plans to reduce this in order to encourage 
legitimate duty/tax paid trade and to increase the revenue. (EC)   WT/TPR/M/219/Add.1 
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Taxation of goods in Zambia is guided by the industrial and investment policy framework which 
outlines the priority sectors as id entified in the Zambia Development Agency Act. Therefore, decision 
to reduce tax in this regard will be informed by th e focus of Zambia’s industrial policy in any fiscal 
year. 
As regards taxation on spirit, other than the va lue added tax (VAT) applicable on most goods at a 
standard rate of 16 percent and importation taxes that apply, there is an excise duty of 125 percent on 
spirits. The general taxation policy as regards spirit s in Zambia has been to discourage consumption 
in view of the devastating impact on the house hold and budget constraints to abate the negative 
externalities that arise with the high consumption of spirituous beverages. 
We note that the question posed by EU assumes that in the case of Zambia, there is a positive 
relationship between the tax burden on spirits and the consumption of illicit alcohol and that taxes 
applicable on spirits are solely  for revenue generating purposes. 
It is important to note that this assumption, though not tested, may not be applicable for Zambia, 
particularly in view of the volumes at affordable prices of legitimate alcoholic beverages currently on 
the market;   the cultural attitude as regards the preference of spirits when compared to other 
available choices and the measures being undertaken  to discourage the sell of illicit brews. For 
instance, the Government has taken deliberate steps to gradually re duce the excise duty on clear beer 
and opaque beer whose inputs comprise sorghum, bar ley and maize that are sourced from rural 
farmers through various out-grower schemes. This has the advantage of increasing incomes of the 
farmers and providing an alternative to spirituous beverages. 
As regards the revenue raising argum ent raised by the EU, it  is wort h noting  that the excise  duty on 
spirits is  not determined with the sole objective of  raising revenue but as a ‘sin tax’ with the view of 
limiting the accessibility of the product. 
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