EU Statement at the 4th Trade Policy Review of the Republic of Mozambique, 01 July 2024

Statement delivered by Ambassador João Aguiar Machado

I would first like to welcome the Delegation of Mozambique, led by Mr Silvino Augusto José MORENO, Minister of Industry and Trade and also thank the Discussant, H.E. Mr LI Chenggang (China) for his remarks. I would like to thank my colleague, Ambassador Geraldo Goncalves Miguel SARANGA and his team for his work in this organisation.

The EU supports Mozambique towards sustainable and inclusive development in line with its long-term development vision. The EU acknowledges the importance of ongoing efforts regarding the diversification of the economy, which is vital to reduce Mozambique’s vulnerability to external shocks and to create jobs. We welcome the emphasis on promoting investments and private sector growth, central to Mozambique’s development strategy.

The EU and Mozambique share a robust partnership encompassing political, trade, and cooperation relations. We remain committed to supporting Mozambique in its pursuit of economic resilience and sustainable development transition. Currently, the EU and Mozambique have agreed to cooperate on the key priorities of environmental protection, sustainable agriculture, fishing, forestry, and climate-smart infrastructure, amounting to an estimated EUR 150 million for the next 7 years’ period. The EU and its Member States are also supporting Mozambique in their green energy transition, including for its aluminium production.

In particular, the EU welcomes Mozambique’s granting of geographical indications in the agri-food sector. We take note of this very good news and would like to praise Mozambique for undertaking this pathway towards a wider recognition of geographical indications, particularly in the agri-food sector.

In the WTO context, we welcome the role of Mozambique as the LDCs focal point in Trade Facilitation Committee. We look forward to working together with Mozambique in integrating the Investment Facilitation for Development Agreement into the WTO rulebook very soon in order to unlock the development benefits of this Agreement. This new instrument will be an effective tool in supporting developing countries, including least developed countries, in enhancing investment environment through increased transparency and streamlined procedures, and facilitating FDI flows, with the overarching goal of fostering sustainable development. The EU would like to take this opportunity to express appreciation to Minister Moreno as a Member of the Coalition of Trade Ministers on Climate. We encourage Mozambique to join the environmental plurilateral initiatives and the discussions on e-commerce. We also encourage Mozambique to ratify the Agreement on Fisheries Subsidies.

Mozambique has implemented, since 2018, the EU and the Southern Africa Development Community (SADC) Economic Partnership Agreement (EPA), in which the EU provides trade advantages to Mozambique and grants tariff-free, quota-free access on goods. The EPA contributes to regional integration and can help to further diversify and develop the economy.

We note with satisfaction that Mozambique is a signatory to the African Continental Free Trade Area (AfCFTA). The EU is ready to work closely with Mozambique to ensure a smooth implementation of the AfCFTA.

Mr. Chairman, turning now to a few concerns, the EU would like to emphasize the importance of Mozambique adhering to WTO rules in trade and investment measures.

The EU acknowledges Mozambique’s effort in economic diversification. However, we seek improvement on measures to ensure equitable opportunities for all stakeholders, particularly in the context of trade liberalization.

The EU encourages Mozambique to enhance transparency and accountability in its regulatory frameworks to foster a favourable investment climate. We are keen to understand Mozambique’s plans to align with WTO standards and improve its compliance with notification obligations.

On customs procedures and tariffs, the EU is concerned about the clarity and predictability of fees and charges, particularly the electronic single window (JUE) user fee and its implications under WTO rules. We seek clarity on Mozambique’s efforts to streamline clearance times and to improve trade facilitation measures.

Mozambique’s approach to non-tariff barriers, including de facto preshipment inspections (PSI) and technical regulations, also requires clarification. The EU seeks assurances that these measures align with international standards and facilitate rather than hinder trade flows.

Mr. Chairman, the EU is committed to supporting Mozambique in achieving its development goals and fostering a fair and transparent trading environment.

On behalf of the EU, I look forward to a constructive dialogue with Mozambique during this Trade Policy Review.

Thank you.