The United States Government has announced its decision to increase Malawi’s Tariff Rate Quota for sugar exports.
According to the US Ambassador to Malawi Virginia Palmer, the US has made the decision in a bid to assist Malawi in increasing its exports.
She adds that the US remains committed to increasing trade between the two countries.
The development means that local sugar producers Illovo Sugar Malawi Limited, is expected to work on increasing production to meet the increased demand.
“Malawi exported $10.7 million worth of sugar to the United States in 2016, an increase of 25% from 2015.
This quota increase for fiscal year 2017 could mean an additional $4 million worth of Malawian sugar exports to the United States.
The United States remains committed to increasing trade between the United States and Malawi,” said Ambassador Palmer.
Currently the country’s sugar export quota stands at 10.5 thousand Metric Ton Raw Value (MTRV) which has been increased with an extra 4 MTRV.
Malawi exports sugar to several countries in the EU, the US and within the African region.
Responding to the development, Illovo Malawi Board Chairperson Gavin Dalgleish expressed pleasure with the news, adding that they are ready to supply to the US.
In the year 2016, the country exported sugar worth $10.7 Million.
Sugar is Malawi’s third largest export to the United States, following tobacco and tea. Other significant exports include coffee, macadamia nuts, and apparel.
Since 2013, sugar exports from Malawi to the United States have more than tripled, accounting for 14% of Malawi’s total exports to the United States.
Malawi exported $75.6 million worth of goods to the United States in 2016, while it imported $46.6 million from the United States.