Malawi to benefit from EU tariff scheme
Malawi will still benefit from the amended European Union (EU) non-reciprocal preferential tariff scheme, which offers market access in the form of duty-free entry [zero tariff], effective January 1 2014, the trade bloc has said.
The EU has also announced that it has cut 87 countries out of 177 beneficiaries from the scheme.
In a statement issued last week, the EU said Malawi, one of the 49 Least Developed Countries (LDCs), will benefit from the Everything But Arms (EBA) and will enjoy a duty-free, quota-free access to the EU for all products from the recently amended Generalised System of Preferences (GSP).
The EU has also incorporated new products that will be duty-free including rare-earth metals, fresh cut carnations and buds for bouquets and sun-cured oriental tobacco.
In 2012, Malawi’s top exports to the EU included tobacco worth $216 million (K96 billion), sugar worth $75 million (K33 billion), tea worth $24.27 million (K11 billion) and nuts worth about $3 million (K1 billion).
The 28-member trade bloc has argued that under new GSP, the effectiveness of the EBA scheme will be strengthened by easing competitive pressure on LDCs.
“The GSP scheme is seen as a powerful tool for economic development by providing the world’s poorest countries with preferential access to the EU’s market of 500 million consumers. The new scheme will be focused on fewer beneficiaries to ensure more impact on countries most in need.
“At the same time, more support will be provided to countries which are serious about implementing international human rights, labour rights and environment and good governance conventions,” reads the statement in part.
Available data indicate that in 2012, Malawi’s trade with the EU was in favour of Lilongwe at a surplus of $106 million (K44.5 billion), having exported goods worth $326 million (K137 billion) to the EU while importing goods worth $221 million (K93 billion) from the trade bloc.
Recently, the Ministry of Industry and Trade spokesperson Wiskes Nkombezi expressed optimism in the trade relationship with the EU, saying that it will continue to be in favour of Malawi.
He argued that Malawi’s trade performance with the EU has been good due to historical reasons apart from the EU being the main market for the country’s sugar.
Nkombezi added that Malawi will continue to target the EU market despite some challenges including standards.
In Africa, LDCs under EBA include Angola, Burundi, Ethiopia, Gambia, Lesotho, Madagascar, Mozambique, Rwanda, Sudan, South Sudan, Tanzania, Uganda, and Zambia.
