The impact of most favoued nation tariff rate on Zimbabwe

This study provides a quantitative assessment of the potential imports, exports, revenue and welfare implications of the WTO FTA on Zimbabwe. The study uses the Software for Market Analysis and Restrictions on Trade (SMART) partial equilibrium model for analysis. The findings of the study reveal that the WTO FTA will be beneficial to the country in terms of trade expansion valued at US$ 158 million and gains in consumer welfare to the tune of US$ 21 million. However, the country will lose revenue amounting to US$131.8 million. Total imports and exports increased by US$159 million and US$106.6 million, respectively. The implementation of the WTO FTA to be accompanied by steps to improve revenue collection from other sources such as Value Added Tax and income tax.