THE Competition and Tariff Commission (CTC) is initiating an investigation into the influx of toothpaste imports into the country, which is threatening the viability of the local industry.
CTC announced in a Government Gazette notice last week that it had initiated an investigation into the increased importation of toothpaste into Zimbabwe, following an application by Merken Investments, the country's sole toothpaste producer, for a safeguard measure.
Based on the evidence provided, the CTC determined that the surge in imports had caused serious injury to the Zimbabwean toothpaste industry.
"The Zimbabwean domestic industry has provided evidence of serious injury resulting from a substantial increase in toothpaste imports," CTC said.
"This increase is evident in both absolute and relative terms compared to domestic production from 2020 to 2023.
"The state of the domestic industry is concerned due to the significant and widespread deterioration of performance indicators, including production, capacity utilisation, sales, market share, and, most notably, profits and losses.
"Consequently, it has been determined that all conditions necessary for the initiation of a safeguard investigation have been met."
It said the application provided evidence that the Zimbabwean domestic industry had noted that the significant rise in imports was a result of unforeseen developments, particularly stemming from Covid-19 recovery policies.
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Major toothpaste producers, such as those in China, India, Pakistan and South Africa, have ramped up production post-Covid, creating surpluses that need to be absorbed by global markets, including Zimbabwe.
"These countries are known for their cost-effective manufacturing, making their products appealing to Zimbabwean importers and further increasing import volumes.
"Additionally, established trade relationships have streamlined the flow of goods, while Zimbabwe's steady population growth has heightened demand for consumer products, including toothpaste."
The investigation will be conducted in accordance with the Competition Act and the Competition (Safeguards) (Investigation) Regulations, with consideration given to the World Trade Organisation Agreement on Safeguards and Article XIX of the General Agreement on Tariffs and Trade (GATT) 1994
Interested parties have 30 days from the date of the initiation of the investigation to make themselves known to the Commission, which serves as the investigating authority.
All interested parties are invited to submit comments regarding the initiation of this investigation.
Requests for an oral hearing should be submitted in writing to the commission within 45 days from the date of the investigation's initiation, stating the reasons for not relying solely on written submissions.
No request for an oral hearing will be considered more than 60 days from the date of this initiation notice.
