RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/G/66
17 February 2000
(00-0598)
Trade Policy Review Body Original: English
TRADE POLICY REVIEW
TANZANIA
Report by the Government
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism
(Annex 3 of the Marrakesh Agreement Establishing the World Trade
Organization), the policy statement by the Government of Tanzania is attached.
Note: This report is subject to restricted circulation and press embargo until the end of the meeting
of the Trade Policy Review Body on Tanzania.Tanzania WT/TPR/G/66
Page 3
CONTENTS
Page
I. INTRODUCTION 4
II. ECONOMIC AND INVESTMENT ENVIRONMENT 4
(1) M ACROECONOMIC POLICIES 4
(2) F INANCIAL SECTOR REFORMS 6
(3) I NVESTMENT POLICY 6
III. TRADE ENVIRONMENT 8
(1) T HE EXTERNAL SECTOR 8
(2) F OREIGN TRADE DEVELOPMENT 9
(3) D EVELOPMENT OF THE TRADE POLICY 10
(4) R EGIONAL INTEGRATION 10
IV. TANZANIA AND THE WTO 10
(1) T ANZANIA AND THE MULTILATERAL TRADING SYSTEM 10
(2) A PPLICATION OF THE WTO A GREEMENTS 11
(3) T ANZANIA 'S POSITION REGARDING FUTURE NEGOTIATIONS 12
V. FUTURE DIRECTIONS OF TRADE POLICY 13WT/TPR/G/66 Trade Policy Review
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I. INTRODUCTION
1. The Government of Tanzania, since 1980s has introduced various policy reform measures
intended to enhance economic growth and social development.  One of the major policy reform
measures was the Economic Recovery Programme (ERP), introduced in early 1986.  The programme
involved trade liberalization, price decontro l and removal of other restrictive tendencies.
Furthermore, since early 1990s the Government has embarked on a far-reaching transformation of thecentrally planned economy so as to build a market oriented economic structure.
2. Structural reforms have focused particularly on restructuring and privatization of public
enterprises.  As at the end of June 1999, a total of 295 out of 395 entities had been divested either by
outright sales to local and foreign investors or by investors or by leases and liquidations.
3. During 1998/99 a total of 36 privatization transactions were completed covering 29 entities
and seven non-core assets.  The focus over the past 12 months has been on utilities, infrastructure and
large commercial enterprises.  This is in keeping with Government policy decision in 1996 to proceed
with the privatization of Dar es Salaam Water Sewage Authority (DAWASA), Tanzania Railway
Corporation (TRC), Tanzania Ha rbours Authority (THA), Tanzania Electric Supply Company
(TANESCO), Air Tanzania Corporation (ATC),  Tanzania Telecommunications Company Ltd
(TTCL), National Bank of Commerce (1997) Ltd, and National Microfinance Bank Ltd (NMB).
4. With regard to regional cooperation, Tanzania is a member of the Southern Africa
Development Community (SADC), East African Comm unity (EAC), Indian Ocean Rim – Association
for Regional Co-operation (IOR-ARC) and the Common Market for Eastern and Southern Africa
(COMESA), although Tanzania has tendered a noti ce to withdraw her membership from COMESA.
5. In July 1996, the TRA was established to consolidate revenue collection.  At the beginning of
1998/99, the sales tax was replaced by the Value Added Tax (VAT), and tariff exemptions for capitalgoods imports were streamlined through adopting a tariff classification based on the Harmonized
Tariff System.
6. The investment Act has been revised to eliminate tax holidays and therefore introduce other
fiscal and non-fiscal incentives deemed to be stable, affordable and competitive.
7. However, trade policy measures taken in the period between 1993 to date among others have
included:
- abolition of all trade restrictions except for goods restricted for health and security
reasons;
- liberalization of foreign exchange operations;  and
- reduced number of non-zero tariffs from 7 to 4, and top rate to 25%.
II. ECONOMIC AND INVESTMENT ENVIRONMENT
(1) M
ACROECONOMIC POLICIES
8. By the mid 1970s, Tanzania's economy started to decline and towards the early 1980s the
economy almost stagnated, due to several factor s including poor weather conditions, war against
Iddi Amin, collapse of East African Community and instability in world prices for primary products:Tanzania WT/TPR/G/66
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- real GDP growth was negative for three consecutive years (1981-1983);
- failure or stagnation of agricultural crops hence export volumes of all crops
decreased;
- industrial capacity utilization declined from an average of 70% in 1970-75 to 42% in
1985-1990, while its output declined to less than 10% of GDP from 12% in 1978;
- domestic inflation had  accelerated to over 30% in 1984 compared to 12% in
1977-1979;
- external arrears had accumulated to US$900 million in 1986 compared to
US$500 million in 1983.  These are just a few macroeconomic performance
indicators among others.  The signs were persistent despite the Structural Adjustment
Programmes (SAPs) pursued by the Government for stabilization and structuraladjustment measures in early 1980s;  and
- the per capital income has not changed significantly over years.  The trend has been
US$203 in 1970, US$240 in 1983, US$193 in 1986 and US$220 in 1995.
9. In mid 1986, Tanzania adopted for the first time a comprehensive economic and structural
adjustment programme supported by its major donor as well as by the IMF and the World Bank.  Themain objective of the programme was to stabilize the economy in order to create favourable
conditions for economic recovery and eventually achieve sustained high rates of growth under
conditions of internal and external fiscal stability.  To achieve these objectives two instruments were
deployed:  fiscal adjustment through a substantial re duction of the then large budget deficit by cutting
down Government expenditure, and the removal of the comprehensive set of controls – on domestic
prices, foreign exchange, imports, and private sector activity that existed at that time under a  centrally
planned socialist oriented economy.
10. The programme achieved quite commendable results during the first six years.  Revenue had
risen steadily from a very low level in 1985/86 to 14.1% of GDP in 1991/92.  Government
expenditure had been rationalized and maintained at 16-18% of GDP.  The overall budget balance
improved sharply from an overall deficit of 9% of GDP in 1985/86 to an overall surplus of about
0.8% of GDP in 1991/92 (after grants).  The foreign exchange reserves of the Bank of Tanzaniaincreased from equivalent of two weeks of import in 1985 to three months of import in 1992.  The
GDP growth recovered from negative growth in 1985 to positive growth of nearly 5% in 1992.  All
these signified liberalized economy and a substantial macroeconomic stability.
11. Towards the end of 1992 the Government's commitment to implement economic reforms was
relaxed.  Beginning in 1992/93, massive discretionary exemptions on import duties and other taxesresulted in a collapse of revenue to only 10.6% of GDP.  In the meantime total expenditure was
pushed up to the unsustainable level of 19.7% of GDP in 1992/93 the highest level of expenditure in
more than a decade.  The two situations combined resulted in a huge budget deficit of 9.1% of GDP in
1992/93 (before grants).  This deficit was financed largely through money creation.  Borrowing from
the banking system (mainly the Central Bank) rose to a record amount of 2.8% of GDP.
12. Moreover, there was a large debt conversion scheme funded by the government and a gold
purchase scheme by the Bank of Tanzania, both  of which pumped more money (liquidity) into the
economy.  As a result inflation jumped from about 21% in 1991/92 to over 30% in 1995.  Tanzania's
donors were alarmed at the economic mismanagement and responded by cutting off financial
assistance in 1994/95 and IMF suspended its support for the economic adjustment programme.WT/TPR/G/66 Trade Policy Review
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13. With the cut-off in donor assistance, a reduction in the unsustainable expenditure and tax
exemptions, the completion of the debt conversion, the cessation of the gold purchase scheme and
reduction in the budget deficit, there was a sudden contraction of  liquidity in the economy.
14. Upon assuming power in the late 1995, the Third Phase Government moved quickly to adopt
a strong recovery programme.  To arrest a sharply deteriorating economic and financial situation and
to restore donor confidence, the Government adopted a short term programme for balance of the fiscalyear covering the period January-June 1996.  Major institutional and structural reforms implemented
included preparations for establishment of an independent authority for revenue collection called
Tanzania Revenue Authority (TRA) and launched in July 1996.  The programme dramatically
changed the entire budgetary profile for 1995/96.  The overall budget deficit was reduced to 3% of
GDP from 5% in 1994/95.  With the remarkable achievements in a short period of time, it becamepossible to restore donor confidence and to adopt the Enhanced Structural Adjustment Facility
(ESAF) programme for 1996/97 supported by the IMF, the World Bank, and the donor community.
This restored donors' confidence to Tanzania which enabled her to successfully approach Paris Club
for debt relief and bilateral debt write-off.
15. During 1997/98 the economy registered a positive GDP real growth rate of 3.4% despite a
drop in agricultural output due to El Niño rains.  The pace towards economic stability accelerated in
the course of 1998/99 with inflation rate dropping sharply to a single digit 7% by December 1999 in
more than 25 years.  Revenue collection has improved from about 10% of GDP in 1992/93 to 13.2%
in 1988/99.  Accordingly, the exchange rate of shilli ng remained stable but continued to appreciate in
real terms as confidence in Tanzania economy continued to grow.  As a result, the foreign exchange
reserves of the Bank of Tanzania rose to US$599 million at the end of 1998, equivalent to nearly
13 weeks of import.
(2) F
INANCIAL SECTOR REFORMS
16. The Government enacted the Banking and Financial Institutions Act of 1991 to replace the
Banking Ordinance.  The Act ushered a new era in Tanzania by liberalizing the banking sector, the
objective being to introduce competition and thereby improve the quality of services offered to clients
through the participation of private banks and financial institutions.  It, however, enunciate the roleand autonomy for the Bank of Tanzania (BoT) to carry out its activities.  Moreover it set precedence
for establishment of the Capital Market and Secu rities Authority (CMSA) in 1995 that spearheaded
formation of the Dar es Salaam Stock Exchange (DSE) in 1998 with the objective of establishing a
secondary market for securities and stock market.  The CMSA Act paved the way for an increased
role of the private sector in production as well as mobilization and utilization of domestic resources.However, since the capital/financial account of the Balance of Payment is yet to be fully liberalized,
participation of foreign investors in DSE is still limited.  Liberalization of the Banking sector removed
monopoly of the state-owned banks and financial institutions by allowing participation of private
sector through privatization and/or establishment of new ones thus creating competitiveness and
hence efficiency in banking activities.  By the end of 1999, 17 banks and 11 non-bank financialinstitutions were licensed and are operational.  On the other hand, autonomy of the Bank of Tanzania
was to ensure price stability in the economy.
(3) I
NVESTMENT POLICY
17. The nature endowed Tanzania with an abundance of natural wealth, which offers tremendous
investment opportunities.  The opportunities include an excellent geographical location (six land
locked countries have access to Tanzania ports), arable land, excellent tourist attractions, a variety of
natural resources, minerals and precious stones, natural gas and inexpensive labour.  Above allTanzania WT/TPR/G/66
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Tanzania is characterized by political stability compared to many other African nations.  However,
previous policies pursued by the Government (Centrally Planned Economy) led her into failure to
realize these potentials.  The investment climate started showing some signs of improvement in 1985
with trade liberalization under Structural Adjustment Programme (SAP).
18. As a move towards opening up of the economy, the Government in June 1990 passed the
National Investment (Promotion and Protection) Act of 1990 to create a friendly environment forinvestors.  For efficiency in service delivery, pa rt II of the policy provided for establishment of
Investment Promotion Centre (IPC) to be an au tonomous organ of the Government and this Centre
was established in 1992.  The Centre, currently recognized as the Tanzania Investment Centre (TIC)
as per establishment under part II of the 1997 Act Supplement, is responsible for implementation of
the National Investment Policy and in particular it is responsible for the promotion, coordination,regulation and monitoring of local and foreign investment in Tanzania.  The Centre upon request
assists all investors to obtain such permits and authorization required by other laws to set up and
operate investment in Tanzania.  However, enterprises engaged in mining and petroleum, are required
to follow the approval process contained in their respective laws.
19. The Government role is limited to guiding, promoting and facilitating, and being service
provider for investment.  As a promoter and facilitator of both foreign and local investment, it is
working hard to put in place conducive legal fram ework for protection, promoting, facilitating and
guaranteeing investments.  As a service provider, the Government provides social and economic
infrastructures and investment in human development to improve the qualification of labour-force.
Investment opportunities available are of two categories:  lead sectors and priority sectors.  Lead
sectors are mining, infrastructure and manufacturing for export/Export Processing Zones (EPZ).
Investment in Tanzania are guaranteed against nationalization and expropriation.  Tanzania is amember of both the International Centre for the Se ttlement of Investment Disputes and Multilateral
Investment Guarantee Agency (MIGA).  Any disput es arising between the Government and investors
shall be settled amicably through negotiations or may be submitted for arbitration before the above
international organs.
20. Policy reforms in financial institutions provide for private (both local and foreign) banks and
financial intermediary's involvement and the market  determination of interest and exchange rates.
These policies allow both local and foreign investors to obtain credit from domestic bank and
financial institutions up to the limit established by the Bank of Tanzania in consultation with TIC,
regarding the business enterprise which the investor operates and the amount of foreign capital
invested in the enterprise.  The TIC grants Certificate of Incentives under authority conferred bypart II of Tanzania Investment Act of 1997.  To qualify for and obtain TIC Certificate of Incentives,
minimum fixed investment cost for new, rehabili tation and expansion projects should be at least
US$100,000 for projects owned 100% by local inve stors and US$300,000 for those 100% owned by
foreign investors.
21. Recently, in June 1999, the Government reviewed operations of the Tanzania Investment
Centre and prepared a strategy to ensure its efficient operation, emphasizing a shift from regulatory
(e.g. project scanning and follow-up) functions to promotional and facilitative activities, in
collaboration with the private sector and adopting market oriented approach to its work.  To
encourage and facilitate entry of new private operators, 13 government approval processes have been
streamlined based upon "Investor Roadmap" study.  Others will be streamlined or abolished, on the
principle that where a regulation serves no identifiable public policy purpose (e.g. safety, health,
environment), should be removed.WT/TPR/G/66 Trade Policy Review
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22. The tourism sector has an excellent, spectacular and unique attraction that makes it ideal for
investment especially for investors interested in the development of quality, natural tourism.  The
National Tourism Policy of 1991 stipulates the emphasis placed by the Government into facilitating
private sector led tourism development.  Some of the achievements of the policy are the establishment
of Tanzania Tourists Board (TTB), the improvement of the private (both local and foreign) sector
participation and the approval of many new tourism related projects.  Thus, 15% of the total approvedprojects and 6.7% of the whole investment capital in Tanzania during the period September 1990 to
September 1999 were done in the tourism sector.  Other policies include efforts to facilitate entry
formalities into the country by tourists that will al low them to obtain visas at all gazetted points of
entry rather than the earlier few designated entry points.  As a result tourism has been growing at the
rate of 20% per annum over the last few years.
23. These fiscal incentives have made Tanzania a globally competitive country for large-scale
investment.  Several private owned large-scale investments particularly in the mining sector where the
project production capacities have reached the range of 180,000-300,000 ounces of gold per year have
been launched.  These include Ashanti Goldfields of Ghana, Anglo-American of South Africa,
Resolute/Samax Resources of the UK and Sutton Resources of Canada.  Some other large-scaleinvestment includes establishment and operationalization of Sheraton Hotel in Dar es Salaam and
other international standard hotels e.g. Novel Hotels and Sea-Cliff Hotel.
III. TRADE ENVIRONMENT
(1) T
HE EXTERNAL SECTOR
24. Tanzania has been implementing a number of policy measures to create a stable liberalized
external sector.  The policy measures were geared towards creating favourable conditions for quick
economic recovery and eventual achievement of sust ained higher rates of growth under conditions of
internal and external financial stability.  From mid 1980s there has been gradual liberalization of the
external sector by relaxing the foreign exchange  controls, which culminated into the replacement of
the Exchange Control Ordinance (Cap. 294) by the Foreign Exchange Act of 1992.  The new Act
opened up the external sector to market forces of demand and supply, and government eased/removed
external trade restrictions (except for very few items on which control is necessary for health, securityand preservation purposes) by simplifying export and import documentation procedures.  All
exchange control documents i.e. import and export licences were abolished in 1992/93 period.
25. This went hand in hand with liberalization of foreign exchange system shifting from fixed
exchange rate system to a market-determined exchange rate in April 1993.  In 1996, Tanzania has
gone further with liberalization measures by adopting Article VIII of the International Monetary Fund(IMF) that requires liberalization of all current account transactions.  This was followed by a partial
liberalization of the capital/financial account that allowed foreigners to participate in direct
investment activities in the country.
26. Simplification of export procedures, relaxation of exchange controls, privatization of
state-owned companies and new investments particularly in the mining sector has led intoimprovement in performance of Tanzania's exports.  As a result, merchandise exports has increased
on average by 8.5% from US$397 million in 1992 to US$588 million by end 1998.  The highest
earnings of US$763.8 million were recorded in 1996.  On the other hand, non-tangible exports i.e.
services recorded a significant performance during the period.  Throughout the period under review
receipts from non-tangible exports increased on average by 26% from US$167.5 million in 1992 to
US$555.2 million in 1998.Tanzania WT/TPR/G/66
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27. Imports of goods have remained almost unchanged over the period under review.  Measured
in current dollars, total imports (f.o.b) increased marginally from US$1,317 million recorded in 1992
to US$1,366 million in 1998.
28. On the domestic trade, restrictions on the previously controlled commodities have been
removed.  Notably progress was achieved in reducing non-barriers including elimination of import
quotas and bans, as well as import licensing requirements.  Moreover, the monopoly power previouslyexercised by state marketing boards or state controlled enterprises in regard to exporting, importing,
and price controls was significantly reduced during the review period.  Private institutions and
individuals were encouraged to participate in the procurement and marketing of both food and cash
crops.
29. Trends in merchandise trade have great influence to the performance of the country's current
account.  Improvement in the export sector together with inflows under current account transfers has
resulted in reduction of current account deficit from US$708 million in 1992 to US$559 million in
1997.
30. Over the period under review gross international reserves of the Bank of Tanzania increased
to cover up to about 13 week of imports.  The reserves increased from US$358.5 million (aboutten week of imports) in 1993 to about US$599 million by end of 1998.
(2) F
OREIGN TRADE DEVELOPMENT
31. Apart from various economic reforms, Tanzania's external sector has been under pressure
from 1992 to 1998.  In 1992, the deficit in the overall balance of payments was US$407.5 million
growing a bit to US$736.6 million in 1993 and de clined since then to US$231.2 million in 1996
before rising again to US$636.7 million in 1998.  Foreign trade (imports plus exports) has grown by
an average of 14.1% since 1992, from US$1,714 million to US$1,955 million in 1998.  Exports grewsteadily from US$397 million to US$763.8 million in 1996 before falling slightly to
US$752.6 million and further to US$588.5 million in 1998.  On the other hand, imports (f.o.b)
increased slightly by 3.7% from US$1,316.6 million in 1992 to US$1,366 million in 1998.  On
average, trade balance improved with a reduction in deficit by 15.5% from US$919.6 million recorded
in 1992 to US$777.5 million in 1998.
32. Major trading partners of Tanzania include EEC and Asia that accounted for 29.4% and
23.7% respectively of the total imports.  The same continents account for 38.4% and 32.3% of the
Tanzanian exports.  Moreover, SADC member countries account for 11.7% and 10.9% of the
country's imports and exports respectively.  On the other hand, the EAC member countries accounted
for 5.5% of total exports from Tanzania while imports from these countries accounted for 6.9% byend 1998.
33. Apparently, the structure of the export sector largely remained unchanged with traditional
exports dominating over non-traditional exports.  Traditional exports on average accounted for about
58.8% of the export receipts for the entire review period of 1992-1998.  On the other hand, the share
of import categories to total imports was dominated by capital goods during the same period ofreview.  On average, share of capital goods accounted for about 44% followed by intermediate goods
which, accounted for about 30% of the total import during 1992-1998 period.  The remaining 28%
was for imports of consumer goods.WT/TPR/G/66 Trade Policy Review
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(3) DEVELOPMENT OF THE TRADE POLICY
34. This is the first trade policy review for Tanzania by WTO Secretariat.  The review is therefore
based on the actual situation compiled from the facts obtained on the ground.  Around the mid 1980s
Tanzania moved away from the reliance on control mechanism and government ownership of the
means of production.  She has since then moved steadily towards a market based and a private sector
led economy.  The Government now sees the private sector as the engine of growth for the economyand aims to encourage the emergency of a strong private sector capable of creating jobs and wealth as
well as the major source of increased government revenue through the payment of taxes.
35. It should be noted that Tanzania does not have a comprehensive trade policy document.
However, concerted efforts to consolidate sectoral trade related policies into a national policy
document are under way.  The development of trade policy in Tanzania can be traced back from thedays of price controls and price fixing, trade restrictions, single marketing channels, and confinement
policies.  In the mid 1980s trade reforms measures were initiated.  The measures initiated led to the
trade liberalization which implied the removal of barriers and restrictions, rationalization and
reduction of import duties through unilateral, bilateral, regional and multilateral measures.
36. The systematic and gradual reduction and elimination of different barriers and obstacles to
trade, such as bureaucratic formalities, advance authorization, administrative controls, supervision,
has made a significant contribution to facilitating foreign trade by improving the country's allocation
of resources.  Tanzania has simplified and facilitated export and import procedures through the use of
a Single Entry Bill document for customs purposes.
(4) R
EGIONAL INTEGRATION
37. Tanzania is a member of several regional integration groupings.  These include, the Common
Market for Eastern and Southern Africa (COM ESA), Southern Africa Development Community
(SADC), East African Cooperation (EAC) and Indian Ocean Rims-Association for Regional
Cooperation (IOR-ARC).
38. Under COMESA, all tariff s on trade among its Member States are scheduled to come to zero
by October 2000.  Tanzania has formally notifie d the COMESA Secretariat of her intention to
withdraw from COMESA membership effectively by September 2000;  in the meantime Tanzania
continues to discharge her obligation in the COME SA Treaty.  Under SADC, a Free Trade Area has
almost been concluded which will bring the import duty to zero eight years from the date of its
conclusion.  Similarly, moves are in the process under the recently signed East African Treaty to
negotiate a trade protocol with a view of elimin ating  almost all tariffs, non-tariff barriers and
non-tariff measures.  This exercise has been given a time span of four years.  Tanzania is also amember of the charter bringing together 14 coun tries forming the Indian Ocean Rim-Association for
Regional Cooperation (IOR-ARC).  The grouping has the objective to facilitate and promote
economic cooperation bringing together representatives of government, business and academic.
IV. TANZANIA AND THE WTO
(1) T
ANZANIA AND THE MULTILATERAL TRADING SYSTEM
39. Tanzania is a contracting party to the outcome of the Multilateral Trade Negotiations (MTN)
which were launched in Punta Del Este in Uruguay at the end of 1986.
40. Tanzania participated in the negotiations which took eight years but, her effective
participation in every inch of the way, clause by clause, word by word, like any other least developedTanzania WT/TPR/G/66
Page 11
country was severely constrained by her limited capacity technically and financially.  This is very
well reflected at our Permanent Mission in Geneva where the resources, including the personnel
resources, are over stretched because of very heavy demands by a series of formal and informal
meetings and discussions going on in the WTO simultaneously.
41. Tanzania's weakness in the concluded Multilateral Trade Negotiations are further reflected by
the difficulties we are facing in complying with the obligations in the WTO Agreements in terms of
notifications and other requirements.  This has in turn also affected Tanzania's smooth integration into
the Multilateral Trading System.
42. Tanzania is currently a beneficiary among selected least developed and African countries in a
Joint Integrated ITC/UNCTAD/WTO Technical Assistance Programme (JITAP), which is based on
the Singapore WTO Ministerial Declaration of 1996.  Under this technical assistance, understandingthe implication of the Uruguay Round Agreements for Tanzania's economy is considered as a priority
need by the public sector officials and private sector executives.  Activities aimed at enhancing the
understanding of the Agreements are targeted to policy makers in public, academicians and private
sector executives.
43. The understanding and awareness of the Agreements in the long run are expected among
other things to facilitate the integration of Tanzania into the Multilateral Trading System.
(2) A
PPLICATION OF THE WTO A GREEMENTS
44. In Tanzania awareness and understanding of th e WTO Agreements are very weak within both
the public and private sectors, and this explains why no action has yet been taken with regard to the
implementation of the Uruguay Round Agreements (notifications and legislation).  This is partly
attributed to lack of or limited capacity in understanding what is to be done.  Having signed the
Final Act of Uruguay Round and the Marrakesh Agreement establishing the World TradeOrganization, all the WTO Agreements became binding on Tanzania.
45. The effective implementation of WTO commitments by Tanzania continue to be hampered by
lack of adequate financial, institutional, technolog ical, and technical capacities, a situation that will
exacerbate our participation in new and future negotiations.  Tanzania therefore calls for renewed
commitment to technical cooperation through adequate provision of resources in the regular budget ofthe WTO and other core agencies according to th eir mandates.  We further emphasize the need for
improved coordination in the delivery of this assistance as a necessary requirement to facilitate
effective participation on our part.  Tanzania has, however, in spite of those shortcomings made
efforts to comply with certain requirements such as establishing a National Enquiry Point and
Acceptance of Code of Good Practice on Voluntary Standards.
46. The primary purpose of the ITC/UNCTAD/WTO Joint Integrated Technical Assistance
Programme to Tanzania is to help the country in building national capacity for the understanding and
thus servicing her obligation arising from being a Member of WTO.  The Integrated Framework (IF)
for Trade Related Technical Assistance to Tanzania which was endorsed by the High Level Meeting
on Integrated Initiatives for LDC's Trade Development is progressing well and will eventuallyincrease the benefits that Tanzania derive from the trade-related assistance provided by the core
agencies and other development partners.  An Inter-Institutional Technical Committee on WTO has
been established but needs to be strengthened.WT/TPR/G/66 Trade Policy Review
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(3) TANZANIA 'S POSITION REGARDING FUTURE NEGOTIATIONS
47. Tanzania reaffirms its commitment to respect the timetable for reviews, negotiations and
other tasks already agreed upon and established in the Marrakesh mandate and the second Ministerial
Conference held in Geneva in May 1998.  In our view the central challenge of future negotiation is to
ensure that issues of development are addressed decisively.  Meeting this challenge will serve to
strengthen the multilateral trading system, enhance its legitimacy and create a sustainable basis for anew round of global economic growth from which all WTO Members can benefit.  The next WTO
Conference should represent an opportunity to place the development objective at the centre for future
negotiations.  Similarly, the inadequate capacity of developing countries and especially the LDCs to
effectively participate in broad-based negotiations should be taken into account.
48. Regarding development of future negotiations Tanzania is of the view that they should
achieve the objectives spelt out in the preamble to the Marrakesh Agreement and should enable the
world community to share fully and equitably the achievements of the Multilateral Trading System.
49. This will bring in our view, a sustained rise in the income of developing countries and would
offer real prospects for economic growth and poverty  eradication.  Sufficient attention should be
devoted to ensuring degrees of flexibility to accommodate constraints faced by the developingcountries.
50. The justification for special and differential treatm ent to Tanzania remains valid in so far as it
is designed to assist developing countries and other least developed countries and small economics to
overcome inherent handicaps, which prevent them from deriving meaningful benefits from their
participation in the Multilateral Trading System.  In this regard, special and differential treatment
should be firmly established in future negotiations, implemented and made contractual.
51. The Government of Tanzania believes that agreements, rules and disciplines that emerge from
future negotiations should be designed to level the playing field by enhancing predictability,
consistency and transparency in the system.  They should among other things include:
- support efforts for building our productive capacities and strengthening our supply
capabilities;
- provide flexibility in the use of appropriate policy instruments to enhance the process
of growth and structural transformation of our economies;
- improve market access for products of export interest to Tanzania;
- advance our regional integration objectives;  and
- define more clearly the terms and conditions of special and preferential treatment.
52. As regards the mandated negotiations, Tanzania acknowledge the vital role of the agricultural
and service sectors to its economic growth and development.  The development of the agricultural
sector in Tanzania is crucial to our trade growth, employment creation, social cohesion and
environmental protection.  In this light, the ongoing reform and liberalization of international
agriculture trade must lead to improve access to world markets for all our agricultural exports
(primary and processed).  This should be achieved through:
- the elimination of tariff escalation/and tariff peaks;Tanzania WT/TPR/G/66
Page 13
- reduction in domestic support in the developed countries;
- the elimination of export subsidies which displace agricultural exports of developing
countries or impact negatively on their domestic production;  and
- the obligation to formulate disciplines on export credits.
53. Tanzania recognizes the importance of addressing the vital issues of, food security and the
development of rural economies among other things, taking into account inherent constraints ofdiversification for developing countries.  Specifications of small economies like Tanzania should be
given due attention and accommodated in future negotiations on agriculture.
54. Tanzania remains deeply concerned at the marginalization of LDCs in the world economy.
To reverse this trend Tanzania supports the view that the next conference should adopt a decision
whereby developed countries would extend bound, duty free and quota free treatment to all productsof export interest originating from LDCs.  Developed countries should also make the necessary
financial commitment to enable the effective implem entation of the integrated initiative in favour of
LDCs.
55. Progressive liberalization of trade in services should respect both existing architecture of
GATS and the flexibility provided to developing countries under Article XIX of GATS including theprinciple for granting credit for an autonomous liberalization since previous negotiations as provided
for in this Article.  Article IV of GATS, should be strengthened and made fully operational.
56. Tanzania fully endorses the proposals put forward by the Africa Group in Geneva with regard
to future work in the area of Intellectual Property.  In particular we would support a decision to extend
the moratorium on the application of the non-violation provision under Article 64.3 of the TRIPS
Agreement, which expired in January 2000, until Members agree by consensus that sufficient
experience has been gained with the application of the Agreement.
V. FUTURE DIRECTIONS OF TRADE POLICY
57. As enshrined in the Tanzania Development Vision 2025, the driving forces to achieve a high
economic growth include harnessing the power of th e market and the dynamism of private initiative.
58. Following the liberalization of trade and development of market economy, the quest for
fairness and efficiency remains.  To this effect the regulatory aspects are being worked out includingoperationalization of the Competition Authority and sectoral regulators.
59. In respect of the dynamism for the private sector participation, a consultative mechanism
between the public and private sector is in the offing.  Tariff rates and non-tariff barriers as scheduled
in regional integration will continue to be honoured.  However, the comprehensive Trade
Development Policy which is in the process of formulation will chart out guidelines for the futureaspects of trade development.
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