SAFEGUARD INVESTIGATION PROCESS IN ZIMBABWE
SAFEGUARD INVESTIGATION PROCESS IN ZIMBABWE
- INTRODUCTION
The safeguard investigation process in Zimbabwe involves several stages from application to final determination. It requires participation from domestic producers, various government agencies (such as the Ministries of Industry and Commerce, Finance, Economic Development and Investment Promotion, and Foreign Affairs and International Trade), the Competition and Tariff Commission(Commission) as the Investigating Authority(IA), and international bodies like the World Trade Organization (WTO), which provide oversight, ensures compliance with global trade rules, and resolves disputes.
- APPLICATION BY DOMESTIC PRODUCERS
Any Zimbabwean domestic producer or industry facing serious injury or the threat of serious injury due to a surge in imports can apply for a safeguard investigation. The industry must submit an application to the Commission, detailing the increase in imports, the injury being caused, and evidence linking the increased imports volume to the injury. The application typically includes statistical data on imports and the industry’s own production volumes, evidence of serious injury (such as loss of market share, decreased profits, reduced capacity utilization, and layoffs), and proposed safeguard measures (.e.g., tariff increases or quotas).
- PRELIMINARY EXAMINATION BY COMMISSION
The Commission conducts an initial review of the application to ensure completeness, meets the set criteria, and contains sufficient evidence to warrant a full investigation. If the application is accepted, the Commission informs the Ministry of Industry and Commerce and publishes a notice of the investigation. This public notice informs stakeholders of the initiation of the investigation and typically includes details of the product under investigation, the period of investigation, and procedures that will be followed. It also invites interested stakeholders (such as importers, exporters, and foreign governments) to participate in the investigation. Active participation by stakeholders ensures that the investigation is thorough and any measures taken are justified and effective in protecting local industry.
- INVESTIGATION PROCESS
The Commission organizes public hearings to gather input from various stakeholders, allowing them to present their views and provide additional evidence. Consultations with interested parties, including foreign governments, may also take place. Domestic producers, importers, consumers and trade associations are given an opportunity to present evidence. The Commission may also request data from importers, customs authorities, and government agencies to analyze the market situation. During investigations, the Commission reviews economic data, import statistics and injury claims to verify applicants’ assertions. Additionally, the Commission can conduct on-site investigations at the applicant’s production facilities to assess injury claims more thoroughly and verify the data and statistics provided.
- PRELIMINARY FINDINGS
After the initial data analysis, the Commission may publish preliminary findings. If the evidence establishes that increased imports are causing serious injury, provisional safeguard measures in the form of additional tariffs or quotas are recommended. These measures are applied while the investigation continues and serve as a buffer for the domestic industries facing injury. If provisional measures are imposed, Zimbabwe has to notify the WTO Committee on Safeguards about the action.
- FINAL DETERMINATION BY COMMISSION
When the Commission completes its investigation it issues a final report. This report includes findings on whether there is serious injury or a threat of serious injury and whether the increase in imports is a substantial cause of the injury. If it is confirmed that increased imports are causing serious injury, definitive safeguard measures are recommended to the Minister of Industry and Commerce. These measures could include tariffs, quotas, Tariff-Rate Quotas or a combination of these. After completing the investigation, the Commission makes a final determination.
- GOVERNMENT DECISION
The Ministry of Industry and Commerce, after receipt of the investigation report from the Commission, makes the final decision on whether to implement the Commission’s recommendations. The decision is on the Commission’s findings, WTO obligations, and broader economic considerations. If definitive measures are applied, Zimbabwe must again notify the WTO of the actions taken.
- IMPLEMENTATION OF SAFEGUARD MEASURES
If safeguard measures are approved, the Zimbabwe Revenue Authority (ZIMRA) enforces the tariffs or quotas at the border. These measures are temporary, typically lasting up to four years, with the possibility of extension under certain conditions. The Commission may periodically review the measures to determine if they should be adjusted or terminated before their expiration.
- WTO OVERSIGHT AND DISPUTE RESOLUTION
Throughout the process, Zimbabwe is required to provide regular updates to the WTO on the safeguard measures.If affected countries believe that the safeguards measures applied violate WTO rules, they can challenge these before the WTO’s Dispute Settlement Body. This process ensures that Zimbabwe complies with both national regulations and international trade obligations when imposing safeguard measures to protect its domestic industries from injuries.
For any further clarification please contact the undersigned.
The Director
Competition and Tariff Commission
23 Broadlands Road
Emerald Hill
Harare
Tel: +263-242-853127-31
E-mail: director@competition.co.zw
Twitter: @CTCZimbabwe
WhatsApp: +263715905651
Website: www.competition.co.zw
