HARARE – The United States has ordered a review of its preferential duty-free status with Zimbabwe over concerns about the violation of workers’ rights.
The Office of the United States Trade Representative (USTR) announced the review of the duty-free status, which will make Zimbabwe’s exports to the U.S. expensive and uncompetitive.
Zimbabwe is among 119 countries trading with the U.S. under a trade pact dubbed the Generalised System of Preferences (GSP).
Over 3,500 products are exported to the U.S. under the trade agreement.
To remain a beneficiary, member countries must comply with 15 requirements, among them ensuring “internationally recognised worker rights, providing adequate and effective protection of intellectual property rights, and assuring equitable and reasonable access to its markets.”
A total of 54 countries had their GSP eligibility reviewed this year, according to USTR.
“Labour rights concerns in Zimbabwe relate to a lack of freedom of association, including the rights of independent trade unions to organise and bargain collectively, and government crackdown on labour activists,” the USTR said.
Suspension of the status could result in loss of millions worth of business for local companies exporting to the U.S.
“Zimbabwean exporters will continue to benefit from the GSP programme while the review is underway,” the U.S. embassy in Harare said.
“We look forward to a collaborative and productive dialogue on labour issues to help ensure Zimbabwean exports to the United States can continue to participate in the programme.”
As of 2018, Zimbabwe was ranked the 169th largest goods trading partner of the U.S., with Harare having enjoyed a trade surplus of US$41 million at the time. – New Ziana
