A Critical Analysis Of The Compatibility Of Statutory Instrument (S.I) 122 Of 2017 With The African Continental Free Trade Area (Afcfta) Law.

TABLE OF CONTENTS

CHAPTER 1: ............................................................................................................................................. 1

An outline of the study. ......................................................................................................................... 1

1.1 Introduction: ............................................................................................................................... 1

1.2 Background of the study: ........................................................................................................... 2

1.3 Problem Statement: ................................................................................................................... 4

1.4 Research Methodology: ............................................................................................................. 4

1.5 Research Objectives: .................................................................................................................. 4

1.6 Literature Review: ...................................................................................................................... 5

1.7 Limitations of the Study: ............................................................................................................ 8

1.8 Chapter Synopsis: ....................................................................................................................... 8

CHAPTER 2: ........................................................................................................................................... 10

An overview of AfCFTA`s objectives and its provisions on quantitative restrictions. ....................... 10

2.1 Introduction: ............................................................................................................................ 10

2.2 Historical background of AfCFTA: ............................................................................................ 10

2.3 Objectives of (AfCFTA): ............................................................................................................ 12

2.4 Quantitative restrictions under AfCFTA law: .......................................................................... 12

2.5 Exceptions under AfCFTA: .............................................................................................................. 13

2.6 WTO Agreement on Import Licensing Procedures: ....................................................................... 16

2.7 Conclusion: ..................................................................................................................................... 17

CHAPTER 3: ........................................................................................................................................... 18

Import Licensing regime in Zimbabwe, policy objectives and its compatibility with AfCFTA law: ... 18

3.1 Introduction: ................................................................................................................................... 18

3.2 Brief background to Zimbabwe`s Import/Export Licensing regime: ............................................ 18

3.3 Policy objectives underlining Zimbabwe`s use of QRs in the form of Import Licensing: (S.I 122 of 2017) ..................................................................................................................................................... 19

3.3.1 High Import Bill. .................................................................................................................... 19

3.3.2 Zimbabwe`s use of multi-currencies ..................................................................................... 19

3.3.3 Falling capacity utilisation ..................................................................................................... 19

3.3.4 Company closures ................................................................................................................. 20

3.4 Compatibility of S.I 122 of 2017 with AfCFTA ............................................................................... 20

3.5 Is the administration of import licensing in line with the WTO Agreement on Import licensing procedures? .......................................................................................................................................... 26

3.5 Conclusion: ..................................................................................................................................... 28

CHAPTER 4: ........................................................................................................................................... 29

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Reasons militating against use of import licenses and possible consequences for non-compatibility of S.I 122 of 2017 with AfCFTA............................................................................................................. 29

4.1 Introduction: ............................................................................................................................. 29

4.2 Why is the use of quantitative restrictions in the form of import licences prohibited? ....... 29

4.2.1 License processing inconveniences ....................................................................................... 29

4.2.2 Restricts international trade ................................................................................................. 29

4.2.3 Manipulation of the system .................................................................................................. 30

4.2.4 Promotes smuggling of goods ............................................................................................... 30

4.2.5 Adverse effects of elimination of foreign competition ......................................................... 31

4.3 Possible consequences for using quantitative restrictions (QRs) under AfCFTA: .................. 31

4.3.1 Retaliation from other Member-States ................................................................................ 31

4.3.2 Dispute Settlement Proceedings against Zimbabwe ............................................................ 33

4.4 Conclusion: ............................................................................................................................... 35

CHAPTER 5 ............................................................................................................................................ 37

Recommendations and Conclusion: .................................................................................................... 37

5.1 Introduction: ............................................................................................................................. 37

5.2 Summary of Findings: ............................................................................................................... 37

5.2.1 The status of quantitative restrictions under AfCFTA:........................................................ 37

5.2.2 Compatibility of S.I 122 of 2017 with AfCFTA: .................................................................... 38

5.2.3 Consequences for non-compatibility: .................................................................................. 38

5.3 Recommendations: .................................................................................................................. 39

5.3.1 Repeal of S.I 122 of 2017. ..................................................................................................... 39

5.3.2 Use of Monetary Policy measures ....................................................................................... 39

5.3.3 Government subsidies.......................................................................................................... 39

5.3.4 Boosting the country`s productivity .................................................................................... 40

5.3.5 Introducing own currency .................................................................................................... 40

5.3.6 Leverage on what the country can effectively produce...................................................... 41

5.4 Conclusion: ............................................................................................................................... 41

BIBLIOGRAPHY: .................................................................................................................................... 43