Project Name PostMortem

1
U.S.-Africa Agribusiness Conference
BUINESS PARTNERSHIP OPPORTUNITIES SOUTHERN
AFRICA ISSUES IN REACHING THE US MARKETS ZAMBIA
California Monterey Marriott November 9, 2004 USA
2
Zambia Trade Investment Enhancement Project
(ZAMTIE)

• A USAID Funded Project
• Project Objectives
• Reduce internal and external barriers to trade
  and investment
• Build capacity among public and private sector
  partners to contribute to the trade and
  investment dialogue
• Foster linkages to optimize opportunities
  between and among producers, suppliers,
  processors, trade associations, government and
  consumers within and outside of Zambia.
• FOCUS
• Agriculture and agribusiness
• Natural resources
• Tourism

3
TRADE CHALLENGES

• Access to the US market of agricultural products
  under
• (AGOA) has not been fulfilled.
• USA (SPS) Sanitary Phytosanitary Regulations
  USDA
• Invisible Trade Barriers being used
  (Administrative mechanisms)
• Transport
• Information and Trade Agreements
• Institutional

4
Food Safety, Sanitary and Phyto Sanitary (SPS)
issues

• Institutional changes in food safety and reform
  of pertinent laws and regulations to comply with
• Ever changing and increasing regulations
• Cost of Compliance is high thus reducing
  competitiveness
• Lengthy process of reviewing PRA is viewed as a
  technical trade barrier to enter US market
• The growing complexity of the standards and lack
  of harmonisation between countries impedes trade

5
Export products picture 1
zega
6
Export products picture 2
zega
7
Export products picture 3
zega
8
Transport

• No direct link to US from Zambia.
• Cost of freight is high 40-60 of export sales
  revenue
• Low volumes of trade produced
• Export products declining prices
• Consolidating and coordination shipments in the
  region

9
Institutional

• Institutional weakness and rising compliance
  costs inhibit participation in export markets
• The cost of training, auditing certification
  is beyond our small growers capacity to
  participate in international trade
• Lack of capacity equipment (Lab) to conduct
  PRAs locally.

10
CONCLUSION

• The perceived failure by AGOA to grant the
  anticipated free access to the US market for
  agriculture products is undermining the US
  governments intent under AGOA .
• The agriculture sector would contribute even more
  to poverty reduction with access to the vast US
  markets.  

11
CONTACT ADDRESS
THANK YOU
Jacob Mwale Agribusiness Trade Policy Policy
Analysis Zambia Trade investment Enhancement P.
O. Box 39398, Lusaka, Zambia. Tel
00-260-1-256224 Fax [phone] Email
mwale_at_zamtie.org.zm Website www.zamtie.org