MAPUTO, April 23 (Xinhuanet) -- The Malawian government has
decided that as from Wednesday, Mozambique's tobacco entering
Malawi will no longer be subject to the 10 percent surtax that was
suddenly imposed on April 13, the Diario de Mocambique newspaper
reported on Tuesday.
   The permanent secretary with the Malawian Agriculture Ministry,
E.S. Malindi,  was quoted as saying that Malawi acknowledges that
the measure was "not healthy" and is now assessing the damage done
to the Mozambican economy.
  Speaking to reporters in the western Mozambican province of Tete,
Malindi said that "Malawi depends on Mozambique, and it is through
this country that Malawian exports and imports flow. The two
governments should find mechanisms to overcome this obstacle once
and for all."
   Malindi could give no reasons for the imposition of the surtax,
but he said that "although the (Malawian) government took this
measure, we felt the need to correct the situation quickly, and
that is why we are here."
   He said that the two government are to meet later this month to
formalize the decision to stop the surtax and find ways to prevent
such situations in the future.
   Mozambique's tobacco is processed in Malawi because Mozambique
possesses no processing plants of its own. Mozambique's tobacco
producers are therefore highly vulnerable to unilateral measures
taken by the Malawian authorities under pressure from Malawi's
tobacco interests.  Enditem