RESTRICTED WT/TPR/S/335 23 March 2016 (16-1650) Page
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RESTRICTED WT/TPR/S/335 23 March 2016 (16-1650) Page: 1/71 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT MALAWI This report, prepared for the third Trade Policy Review of Malawi, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Malawi on its trade policies and practices. Any technical questions arising from this report may be addressed to Mr Arne Klau (022 739 5706) Mr Rosen Marinov (022 739 6391). Document WT/TPR/G/335 contains the policy statement submitted by Malawi. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Malawi. This report was drafted in English. WT/TPR/S/335 • Malawi - 2 - CONTENTS SUMMARY ........................................................................................................................ 6 1 ECONOMIC ENVIRONMENT .......................................................................................... 9 1.1 Main Features of the Economy ..................................................................................... 9 1.2 Recent Economic Developments.................................................................................. 10 1.3 Balance of Payments ................................................................................................. 11 1.4 Developments in Trade .............................................................................................. 12 1.5 Foreign Direct Investment ......................................................................................... 12 1.6 Prospects ................................................................................................................ 13 2 TRADE AND INVESTMENT REGIME ............................................................................ 16 2.1 General Framework .................................................................................................. 16 2.2 Economic and Trade Policy Objectives .......................................................................... 16 2.3 Trade Agreements and Arrangements .......................................................................... 17 2.3.1 WTO .................................................................................................................... 17 2.3.2 Regional and preferential agreements ....................................................................... 18 2.3.2.1 Regional trade agreements ................................................................................... 18 2.3.2.1.1 Common Market for Eastern and Southern Africa (COMESA) ................................... 18 2.3.2.1.2 Southern African Development Community (SADC) ............................................... 18 2.3.2.1.3 Tripartite Free Trade Area .................................................................................. 19 2.3.2.2 Bilateral trade agreements ................................................................................... 19 2.3.3 Other agreements and arrangements ........................................................................ 19 2.4 Investment Regime .................................................................................................. 20 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 21 3.1 Measures Directly Affecting Imports ............................................................................ 21 3.1.1 Customs procedures and requirements ..................................................................... 21 3.1.2 Goods in transit ..................................................................................................... 22 3.1.3 Customs valuation and rules of origin ....................................................................... 23 3.1.4 Tariffs .................................................................................................................. 24 3.1.4.1 Applied MFN tariffs .............................................................................................. 24 3.1.4.2 Tariff bindings .................................................................................................... 28 3.1.4.3 Tariff exemptions and concessions ......................................................................... 29 3.1.4.4 Tariff preferences ................................................................................................ 30 3.1.5 Other charges affecting imports ............................................................................... 31 3.1.6 Import prohibitions, restrictions, and licensing ........................................................... 33 3.1.7 Anti-Dumping, countervailing, and safeguard measures ............................................... 34 3.1.8 Standards and technical regulations ......................................................................... 34 3.1.9 Sanitary and phytosanitary requirements .................................................................. 36 3.1.10 Other measures ................................................................................................... 37 3.2 Measures Directly Affecting Exports ............................................................................. 37 3.2.1 Export procedures and requirements ........................................................................ 37 WT/TPR/S/335 • Malawi - 3 - 3.2.2 Export taxes, charges, and levies ............................................................................. 38 3.2.3 Export prohibitions, restrictions, and licensing ............................................................ 38 3.2.4 Export support and promotion ................................................................................. 38 3.3 Measures Affecting Production and Trade ..................................................................... 40 3.3.1 Incentives ............................................................................................................ 40 3.3.2 Competition policy and price controls ........................................................................ 40 3.3.2.1 Competition policy .............................................................................................. 40 3.3.2.2 Price controls ..................................................................................................... 42 3.3.3 State trading, state-owned enterprises, and privatization............................................. 42 3.3.4 Government procurement ....................................................................................... 43 3.3.5 Intellectual property rights ...................................................................................... 44 4 TRADE POLICIES BY SECTOR ..................................................................................... 46 4.1 Introduction ............................................................................................................. 46 4.2 Agriculture .............................................................................................................. 46 4.2.1 Main features and policy objectives .......................................................................... 46 4.2.2 Policy measures ..................................................................................................... 47 4.2.3 Key sub-sectors ..................................................................................................... 49 4.2.3.1 Maize ................................................................................................................ 49 4.2.3.2 Tobacco ............................................................................................................. 49 4.2.3.3 Sugar ................................................................................................................ 50 4.2.3.4 Tea ................................................................................................................... 50 4.2.3.5 Cotton ............................................................................................................... 51 4.2.3.6 Other crops ........................................................................................................ 51 4.2.3.7 Livestock ........................................................................................................... 51 4.2.3.8 Fishing .............................................................................................................. 52 4.2.3.9 Forestry ............................................................................................................. 52 4.3 Mining and energy .................................................................................................... 53 4.3.1 Mining and quarrying.............................................................................................. 53 4.3.2 Energy ................................................................................................................. 53 4.3.2.1 Hydrocarbons ..................................................................................................... 53 4.3.2.2 Electricity ........................................................................................................... 54 4.4 Manufacturing .........................................................................................................