This paper sets out Zambia’s existing trade policy framework and identifies areas of possible reform and options for maximizing the contribution of trade to inclusive growth and sustainable development. It contains a review of the macroeconomic and trade performance of the economy between 1995 and 2013. It discusses the current trade policies and institutions so as to identify the major opportunities and challenges inherent in the Zambian economy and outlines the options for enhancing Zambia’s trade and sustainable real growth in the economy.
Following a review of Zambia’s trade performance and the current tariff structure, the framework recommends a strategic trade policy calibrated to support industrial sector interests. Tariff-setting is an essential component of improving Zambia’s trade performance but is not the sole determinant. Other factors play a critical role in preventing the country from increasing its exports and ultimately the creation of employment, increased incomes and reduction of poverty, such as the cost of doing business and high trade costs.
The framework sets out the principles, approaches and key elements that should shape Zambia’s strategy for integration into the global economy. Recognizing the growing complexity of trade policy in a rapidly changing global environment, the framework offers an agenda for future work on trade policy by outlining a number of recommendations.
