EU Statement at the Trade Policy Review of Zambia, 23 September 2025

EU Statement at the Trade Policy Review of Zambia, 23 September 2025

Statement delivered by Deputy Permanent Representative, Antonio Fernandez-Martos

Thank you, Mr Chair.

I would like to welcome the Delegation of Zambia, led by H.E. Mr Chipoka MULENGA, Minister of Commerce, Trade and Industry (MCTI), and thank the Discussant, Ambassador Milagros Elena MIRANDA ROJAS (Peru) for her introductory remarks.

The EU welcomes this opportunity to review the developments in Zambia's trade policies and practices. Let me start by highlighting that Zambia's economic growth averaged 5.2% since 2021, up from 2.0% in the period 2016-2020. Zambia has substantial natural resources, with copper accounting for majority of its export earnings. The service sector also plays a major part, with a particular growth of transport services driven by trade facilitation reforms, infrastructure investment and improvements in customs efficiency.

The EU is well aware that during the period under review, Zambia has experienced several challenges, such as prolonged drought conditions and the global COVID-19 pandemic. With agricultural productivity having dropped and over 75% of the poor population living in rural areas and working in agriculture, the share of the population living in extreme poverty has risen. Zambia remains under an IMF Extended Credit Facility agreement and is engaged in a wide-ranging programme of macroeconomic stability. We note Zambia's good cooperation with the IMF and Zambia's efforts in restructuring its international debt.

The EU notes the strategic importance of Zambia's long-term development goals, as set out in its 8th National Development Plan (8NDP) (2022-2026), identifying economic transformation and job creation as key areas of focus. We welcome the reform process that Zambia has embarked on to achieve more inclusive and sustainable growth. We commend Zambia's ongoing work in strengthening trade policies and aligning with global standards, supported by legislative measures such as the Public Debt Management Act of 2022, which exemplifies Zambia's commitment to fiscal responsibility.

We appreciate Zambia's commitment to the multilateral trading system and its constructive engagement in the WTO in various areas and initiatives. The EU is pleased to see that Zambia ratified the Trade Facilitation Agreement and phase 1 Agreement on Fisheries Subsidies. We also value the fact that Zambia is a party to the Investment Facilitation for Development Agreement. Notably, Zambia recently shared its experience in conducting a needs assessment with the support from the World Bank, as a way to drive economic transformation using the IFD framework and how, as a least-developed country, it views investment facilitation as key to unlock new FDI opportunities. The EU also welcomes that Zambia is engaged in the Informal Working Group on Trade and Gender.

As further elements in support of its economic transformation, we invite Zambia to consider joining the Joint Statement Initiatives on E-Commerce and on Services Domestic Regulation and undertake the domestic regulation disciplines according to the reference paper. In addition, we invite Zambia to consider becoming a participant to the Information Technology Agreement - this would be especially relevant to facilitate digitalisation of the economy - and become a party to the Government Procurement Agreement.

Zambia has a unique geographic location, neighbouring 8 countries and has a potential of becoming a regional hub for agriculture and sustainable raw materials. The EU welcomes Zambia's ambition of connecting economic routes with other countries; we are actively supporting this through significant EU Global Gateway flagships such as the Lobito Corridor. Zambia's efforts will create economic opportunities, value and jobs for Zambia and the entire region.

We welcome that Zambia has continued to focus on strengthening regional economic integration through, the ratification of the African Continental Free Trade Area (AfCFTA). The EU also supports regional integration through the Common Market for Eastern and Southern Africa (COMESA). By aligning our efforts with COMESA, we aim to bolster intra-regional trade, eliminate non-tariff barriers, and enhance infrastructure development throughout the region.

We reaffirm the strong and enduring partnership between the European Union and Zambia, spanning over a period of 50 years. Our collaboration continues to thrive across various economic sectors, providing mutual benefits and advancing our shared commitment towards sustainable development and economic transformation.

Within our bilateral relationship, Zambia continues to benefit from duty-free and quota-free access to the EU market under the Everything But Arms (EBA) initiative. Our partnership also embraces economic diversification, and the empowerment of small and medium-sized enterprises.

In our written questions, the EU has raised a number of issues, inter alia as regards the investment regime, trade facilitation and implementation. We thank Zambia for its replies to the EU questions, which we are reviewing carefully.

On behalf of the EU, I look forward to a constructive dialogue with Zambia during its 5^th Trade Policy Review.

Thank you.