The Confederation of Zimbabwe Industries (CZI) said on Saturday that the government has started reviewing customs duties in line with the Southern Africa Development Community (SADC) trade protocol, which aims for free trade by 2008.

The CZI said in a statement said captains of Industry and Commerce as well as the government have been involved in discussions during the past three months to reduce tariffs on imports from SADC countries.

The statement said the plans to comply with the SADC trade protocol were at an advanced stage.

The government has invited submissions from the industry relating to the reduction of customs duties under the SADC trade protocol.

However, the statement said, concern has been raised on whether the reduction of tariffs would enhance trade or harm other strategic sectors of the economy.

SADC has targeted to have a free trade area by 2008. With the exception of clothing and textiles and sugar, South Africa has removed tariffs all SADC exports from January this year in an attempt to accelerate the program.

It said South Africa has done its best in relaxing duties in a development anticipated to enhance cooperation given the fact the nation is the regional economic powerhouse for SADC.

"The relaxation of trade barriers will only be important in the event that countries export goods at normal prices rather than subsidized rates. Regional economic cooperation will only increase if nations do not export substandard or dumped goods," said the CZI.

"Provided fair competition is there, the reduction of tariffs will not harm the industry in fact it will increase the market share for companies," it said.

Zimbabwe was lagging behind other nations in implementing the trade relaxation systems.

It also said that the government should solve inflationary pressures to compete with other SADC nations.

It is said that If inflation is not reduced then the playing field will be uneven for local companies because most SADC nations are enjoying an average inflation rate of 15 percent.

However, Minister of Industry and International trade Obert Mpofu has said that the government was committed to the trade protocol.

"Relevant authorities are working towards ensuring that the country complies with the protocol ahead of the deadline in 2008," he said.

"The Ministry of Finance is also providing input in as far as the implementation of trade relaxation systems are concerned," said the minister.

Source: Xinhua