EUROPEAN Union (EU) head of delegation to Zambia Derek Fee has said trade serves as a tool for sustainable development.

And Zambia’s Cross Border Traders Association (CBTA) chairman general Elliot Kabinda noted that the major concern for traders is the limited number of goods on the common list.

Speaking on Thursday at the launch of the Zambia-Zimbabwe Simplified Trade Regime (STR), Dr Fee, who is also EU’s representative to Common Market for Eastern and Southern African Market (Comesa), said the EU reorganised the importance of intra-regional and continental trade, hence its commitment of 645 million euros for the ESA/IO regional programme for 2008-2013.

“The European Union is fully aware of the importance of trade, recognises that enhanced intra regional and continental trade serves as a tool for sustainable development. It contributes to the realisation of the Millennium Development Goals and the integration of the Eastern and Southern Africa (ESA) and Indian Ocean (IO) region in the global economy,” he said.

Dr Fee said the EU was one of the supporters of Comesa and supported efforts to improve trade between countries and to deepen economic integration.

“We ourselves, the European Union, are the largest and most successful example of regional economic integration. This is why under our European Development Fund, the EU allocated 645 million euros for the ESA/IO regional programme for the period 2008-2013.

This support intends to increase economic growth and reduce poverty through economic and political integration, trade, support sector, spectral policies and infrastructure programmes,” he said.

“One of the important EU region support programmes is the Regional Food Security and Risk Management, otherwise known as REFORM. The programme has many components, but the trade component is implemented by COMESA.

The REFORM programme aims at improving Cross Border Trade for small trades, especially their trade in agricultural produce. The long term aim is to open up borders so that food flows across borders.”

STR being launched between Zimbabwe and Zambia follows the launch of the same programme between Zambia and Malawi in April this year.
Dr Fee said the STR was a first attempt to assist the small informal trades in Zambia and Zimbabwe deal more easily with the border administrative procedures.

“It is the first step in simplification of trade, and we hope that it will go a long way in increasing and facilitating trade between the two countries,” said Dr Fee.

And Kabinda thanked the government for amending the immigration and deportation Act and enacting the Comesa CBTA immigration permit into law.

“Allow me to thank the government for amending the immigration and deportation Act number 18 and enacting the COMESA CBTA immigration permit in to law.

Previously our traders were paying K2 million to obtain a temporal permit but under new COMESA CBTA immigration permit, applicants will be paying K500, 000, honestly what can be better than that?” Kabinda asked.

He, however, noted that the major concern for traders was the limited number of goods on the common list.

“We have seen an increase in trade between our nations and the major complaint among traders has been the limited number of goods on the common list.

We appeal to the authorities to review the list and include more goods on that list as we are studying the COMESA Protocol on the rule of origin,” said Kabinda.

And Zimbabwe CBTA’s chairperson Lwazi Ngwenya said there was significant need for trade education in the two neighbouring countries.