Mozambique - Trade AgreementsMozambique - Trade Agreements
The Southern African Development Community (SADC) is currently implementing the organization’s trade protocol. SADC member states have agreements to eliminate trade tariffs on certain goods. If fully implemented among all 15 member states, the protocol will give Mozambican products reciprocal duty free access to a market of over 253 million people with a GDP of USD563 billion. Member states had until 2015 to implement new tariff agreements, this deadline has not been meet by all members.
AGOA/GSP – Under the African Growth and Opportunity Act (AGOA) and the Generalized System of Preferences (GSP), a wide range of Mozambican products receives duty-free entry to the United States. A key provision of AGOA is the duty-free entry of apparel manufactured in Mozambique, including apparel manufactured with third-country fabric. The preferential arrangements contain no reciprocal treatment for U.S. products entering Mozambique.
EU – Under the terms of the Cotonou Agreement, certain Mozambican products currently enjoy reduced tariffs or duty free entry into European Union (EU) member nations under an Everything but Arms (EBA) arrangement. Mozambique is currently negotiating an economic partnership agreement with the EU as a member of the SADC block of countries.
Other Bilateral Trade Agreements – Mozambique entered into a preferential trade agreement with Malawi in December 2005. This agreement was an update of a similar agreement signed by the Portuguese colonial authorities with Malawi prior to Mozambican independence. It allows for free trade of goods originating in the two countries, excluding beer, certain soft drinks, tobacco, sugar, vegetable oil, chickens and eggs, office equipment, petroleum products, weapons, ammunition, and explosives. The Mozambique-Malawi agreement has simpler rules of origin than those outlined in the SADC Trade Protocol. Mozambique is still finalizing a preferential trade agreement with Zambia.
Mozambique Trade Development and Promotion Trade Agreements