Massive Trade Deficits With China
ZIMBABWE has been recording huge monthly trade deficits with China since the
beginning of the year in yet another blow to Zanu PF’s populist “Look East
Policy”, latest data from the government statistical agency has revealed.
The only time Zimbabwe recorded a trade surplus was in February when exports
of US$28.8 million were more than imports of US$6 032 612, according to data
from the Central Statistical Office (CSO).
CSO data for October shows that Zimbabwe only exported US$487 719 to China
but imported goods worth US$6.7 million during the same month.
The huge trade deficit came at a time when Zimbabwe had narrowed the gap in
the previous month with a deficit of US$2 million in September from US$23.4
million in August.
In October, Zimbabwe exported macadamia nuts (US$10 008), tobacco, partly or
wholly stemmed (US$262 354) and chromium ore concentrates (US$213 330)
Imports from China were mainly made up of insecticides (US$207 703), sodium
hydroxides (US$205 249) and new pneumatic tyre rubber used on motor cars
(US$177 072).
Surprisingly Zimbabwe imported goods for lowly amounts.
For instance, Zimbabwe imported vinegar and substitutes for vinegar obtained
from acetic acid (US$780 and other spices (US$87).
China has been dubbed Zimbabwe’s “all-weather friend” as it loosened the
purse at a time the world was tightening the strings against perceived rogue
regimes, Zimbabwe included.
By ignoring the human rights record and the political situation in its
trading relations, China got an edge over the western countries and is
spreading its tentacles across Africa.
Analysts attribute the trade deficit to low production in the country.
The deficit which comes after the formation of the inclusive government
might force the authorities to re-think their trade policies at a time when
there are intensifying calls for Zimbabwe to look at all corners of the
globe in trade matters instead of looking East.
Zimbabwe turned to the East in 2004 as Western powers tightened the screws
on President Robert Mugabe’s regime in a bid to force political reforms and
the respect for human rights.
BY NDAMU SANDU
The Standard
Posted by Raymond Mhaka
on December 6, 2009. Filed under Main Headline.
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