Mozambique

Location : South-eastern Africa, bordering the Mozambique Channel, between South Africa and Tanzania.

Capital : Maputo

Languages : Emakhuwa 26.1%, Xichangana 11.3%, Portuguese 8.8% (official; spoken by 27% of population as a second language), Elomwe 7.6%, Cisena 6.8%, Echuwabo 5.8%, other Mozambican languages 32%, other foreign languages 0.3%, unspecified 1.3%

Area : 801,590 sq km

Land Use : arable land: 5.1%; permanent crops: 0.3%; other: 94.6% (2001)

Natural Resources : coal, titanium, natural gas, hydropower, tantalum, graphite

Population : 19,406,703 (July 2005 est.).

Labour force : 9.2 million (2000 est.)

Labour force participation rate : 47.41% of population (2000)

Population below poverty line : 70% (2001 est.)

International Organisation participation : ACP, AFDB, AU, C, FAO, G-77, IBRD, ICAO, ICC (signatory), ICFTU, ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM (observer), ISO (correspondent), ITU, MIGA, MONUC, NAM, OIC, ONUB, OPCW, SADC, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMISET, UPU, WCO, WFTU, WHO, WIPO, WMO, WToO, WTO 

GDP per capita : U$1,200 (2004 est.)

GDP Growth Rate : 6.7% p.a 1990-2001

GDP sectoral composition : agriculture: 21.1%; industry: 32.1%; services: 46.9% (2004 est.)

Investment (gross fixed): 47% of GDP (2004 est.)

Industries: food, beverages, chemicals (fertilizer, soap, paints), aluminum, petroleum products, textiles, cement, glass, asbestos, tobacco

Industrial production growth rate : 3.4% (2000)

Agriculture - products : cotton, cashew nuts, sugarcane, tea, cassava (tapioca), corn, coconuts, sisal, citrus and tropical fruits, potatoes, sunflowers; beef, poultry

Exports : U$689.4 million f.o.b. (2004 est.)

Exports - commodities : aluminium, prawns, cashews, cotton, sugar, citrus, timber; bulk electricity

Exports - partners : Belgium 32%, Italy 13.9%, Spain 12.6%, Germany 9.8%, Zimbabwe 4.7% (2004)

Imports : U $972.9 million f.o.b. (2004 est.)

Imports - commodities : machinery and equipment, vehicles, fuel, chemicals, metal products, foodstuffs, textiles

Imports - partners : South Africa 35.7%, Australia 10.9%, US 3.7% (2004)

QUALITATIVE TRADE PROFILE

As part of its effort to modernize its government policies, Mozambique adopted a formal Trade Policy and Strategy (TPS) in April 1999. The TPS was formulated in light of the fundamental objectives of promoting economic and social development and eliminating poverty in Mozambique. The TPS addresses both internal commerce and international trade, and is based on private initiative, on market forces, and on the regulating and facilitating role of the State. While there is no mention of the World Trade Organization in the TPS, Mozambique's efforts are in keeping with WTO commitments, where they apply. The TPS creates trade policy priorities, identifies the role of the State, and sets out an implementation strategy that includes promotion of exports, measures related to imports, and the revision of trade legislation and simplification of administrative procedures.

Mozambique has recently simplified the structure of its customs duties; the tariff rates currently range from 0 to 30%. The tariff structure is modestly escalatory. Mozambique has bound approximately 14% of its total tariff lines. The simple average applied MFN tariff is 12.4%, among the lowest import duties in southern  Africa. None of its tariff lines are subject to non ad-valorem duties. Excise taxes are levied on automobiles, luxury goods, alcoholic beverages, and tobacco products. Like other WTO Members, Mozambique has bound customs duties on all agricultural products, the tariffs are bound at a ceiling rate of 100%. In addition, rates on tariff lines for non‑agricultural products have been bound, at ceiling rates of either 5% or 15%.

INSTITUTIONAL FRAMEWORK 

The ministry in charge of trade policy formulation is the Ministry of Industry and Trade. Other agencies with trade policy responsibilities include the ministries of Planning and Finance, Agriculture and Fisheries, Tourism, Mineral Resources and Energy, Transport and Communication, as well as the Bank of Mozambique, Customs Department, Office of Privatization, Investment Promotion Centre, Export Promotion Agency, and the National Directorate for Industrial Property. There are no formal coordinating bodies for the formulation and implementation of trade policy.

The private sector, academic institutions, and unions provide input into trade policy issues through on-going informal consultations during the policy formulation phase. Draft trade policy documents are widely circulated for comment to these entities. Comments on trade policy are also sought from other stakeholders in the public sector prior to finalization and submission of trade policy to the Cabinet for approval. Since 1994, there has been an annual private sector-government conference that formalizes this process. The conference proceedings are published.

Trade policy implementation is primarily the responsibility of the Ministry of Industry and Trade, which is responsible for regulating imports, promoting exports, ensuring fair trade, protecting certain intellectual property rights, and setting and enforcing standards. The Ministry also has responsibility for regional initiatives such as the Southern African Development Community (SADC) and the Cross-Border Initiative (CBI), as well as the WTO and most other multilateral trade issues. The Ministry of Planning and Finance is responsible for the collection of taxes and import duties. Other ministries have responsibility for trade issues that fall within their overall responsibilities (e.g., the Ministry of Agriculture and Fisheries). There are no independent bodies with a formal mandate to carry out public review and assessments of the Government's trade policy.

TRADE AGREEMENTS

Bilateral

Mozambique benefits from preferential tariff treatment granted by Australia, Canada, the EU, Japan, New Zealand, and the United States, under the Generalized System of Preferences (GSP). In addition, India grants preferential access to Mozambique under the Global System of Trade Preferences (GSTP)

Regional

Mozambique is a member of the Southern African Development Community (SADC) and the Cross-Border Initiative (CBI). Mozambique is currently negotiating an Economic Partnership Agreement with the EU through the SADC configuration.

Multilateral

Mozambique is a member of the WTO and grants at least MFN treatment to all its trading partners. It has GATS commitments in 17 sectors.

NEED PRIORITIES

Technical assistance is required to improve Mozambique's capacity to participate in the multilateral trading system and the ongoing WTO negotiations. Particular attention is needed in the area of services, which holds considerable potential for Mozambique's economic development (tourism, financial services, telecoms). Assistance to raise the profile of trade issues among domestic stakeholders is also needed.

Source: Commonwealth Yearbook 2005, World Fact Book, WTO Secretariat.