Examines key economic indicators and trade statistics on the countries that dominate the market, the market share of the United States, the political situation, if any, the main reasons why U.S. companies should consider exporting to that country and other trade-related issues. B, such as terrorism, currency devaluations, trade agreements. Zambia is a politically stable, multi-party, resource-rich democracy with an estimated population of 17.2 million, 42% of whom live in urban areas. The country has experienced 20 years of positive economic growth and a growing middle class, but the combined effects of unsustainable debt, a series of droughts and effects on agricultural and energy production, currency devaluation and the COVID 19 global pandemic are expected to significantly slow growth and economic activity. GDP growth was 1.9% in 2019 and the IMF expects a contraction of 5% in 2020. Imf Article IV in 2019 predicted that Zambia`s debt would increase to 96% of GDP in 2020, up from pre-pandemic estimates. Inflation remained outside the Bank of Zambia`s (BoZ) average target of 6-8% in 2019 and 2020, reaching 15.9% by mid-2020. The economy benefits from liberalized prices for most items and has no monetary control. In 2018, Zambia`s main export partners were Switzerland (due to the location of commodity traders and not actual exports), China, Singapore, the Democratic Republic of Congo (DRC) and South Africa.
During the same period, Zambia`s main import partner was South Africa, followed by China, the United Arab Emirates, India, the Democratic Republic of Congo and Japan. Administrative corruption can be the most serious non-tariff barrier, particularly with regard to public procurement. Other non-commercial barriers include infringement of intellectual property, preferential treatment of state-owned enterprises, and an overly complicated and often arbitrary and opaque regulatory environment. These consisted almost exclusively of copper, cobalt, precious stones (mainly emeralds) and cotton. The United States has signed a framework agreement on trade and investment with the Common Market for Eastern and Southern Africa (COMESA), of which Zambia is a member. Zambia is open to foreign trade, which accounts for 75.7% of the country`s GDP (World Bank, 2018). Zambia`s trade policy aims to diversify its economy through privatization programmes and the expansion of its export base. The country is a member of COMESA and has signed interim economic partnership agreements with the European Commission. The country became a member of the WTO in 1995. Tariffs are high, but the country has few non-tariff barriers.
Some products, such as crude oil, medical care and fertilizers, are exempt from import duties. However, irregularities in the tax system and high transportation costs are real barriers to trade. The country exports mainly copper and other minerals (about three-quarters of total exports), while petroleum products, copper, machinery and means of transport are the main imported products. Sambois products are based on Switzerland (42.1%), China (14.4%), the Democratic Republic of Congo (9.5%). And Singapore (7.7%), while South Africa (28.8%), the Democratic Republic of Congo (14.7%), China (13.6%), the United Arab Emirates (6.3%), India (4.7%) Imported. Kuwait (4.7%).