RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/G/66/Rev.1
28 February 2000
(00-0735)
Trade Policy Review Body Original:  English
TRADE POLICY REVIEW
TANZANIA
Report by the Government
Revision
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/Rev.1
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 9
(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 11
V. FUTURE DIRECTIONS OF TRADE POLICY 13WT/TPR/G/66/Rev.1 Trade Policy Review
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I. INTRODUCTION
1. The Government of Tanzania, since the 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 decontrol and removal of other restrictive trade regimes.
Furthermore, since early 1990s the Government has embarked on far-reaching structural adjustmentprogrammes including reorientation of the economy towards building a market based 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 public enterprises had been divested
either by outright sales or joint venture with local and foreign investors, by leases and throughliquidations.
3. During 1998/99 a total of 36 privatization transactions were completed.  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 Sewerage Authority (DAWASA), Tanzania Railway Corporation (TRC), Tanzania Harbours
Authority (THA), Tanzania Electric Supply Co mpany (TANESCO), Air Tanzania Corporation
(ATC), Tanzania Telecommunications Company Ltd (TTCL), National Ba nk 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 Co mmunity (EAC), Indian Ocean Rim-Association
for Regional Co-operation (IOR-ARC) and the Common Market for Eastern and Southern Africa
(COMESA).  In respect of COMESA however, Ta nzania has tendered a notice to withdraw her
membership from COMESA which will become effective by September 2000.
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 capital
goods imports were streamlined through adopting a tariff classification based on the Harmonized
Tariff System.  The investment Act has been revised with the aim of introducing other fiscal andnon-fiscal incentives deemed to be stable, affordable and competitive.
6. The 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
- reduction of non-zero tariff lines from 7 to 4.
II. ECONOMIC AND INVESTMENT ENVIRONMENT
(1) M
ACROECONOMIC POLICIES
7. 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 with theTanzania WT/TPR/G/66/Rev.1
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then dictatorial regime in Uganda, collapse of the East African Community and instability in world
prices for primary products.  As a result of the above scenario, the impact included:
- real GDP growth was negative for three consecutive years (1981-1983);
- failure or stagnation of agricultural crop production hence export volumes of almost
all agricultural crops decreased;
- industrial capacity utilization declined from an average of 70% in 1970-75 to 42% in
1985-90, 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 1977-79;
and
- external arrears had accumulated to US$900 million in 1986 compared to
US$500 million in 1983.
8. 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 structural adjustment measures in early 1980s.  Consequently, the purchasing power
of the population has remained rather low.  This is signified by the fact that the per capital income has
not changed significantly over years.  The trend has been US$203 in 1970, US$240 in 1983, US$193in 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 bilateral and multilateral cooperating partners including
the IMF and the World Bank.  The main 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 reduction of the then largebudget 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 whereby central planning was the basis of the country's economic policy.
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.  Governmentexpenditure 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 Tanzania
increased 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 a liberalized economy and substantial macroeconomic stability.
11. Towards the end of 1992 there was a relaxation in the implementation of economic reforms.
Beginning in 1992/93, discretionary exemptions on import duties and other taxes resulted in a decline
in revenue collection to 10.6% of GDP.  In the meantime total expenditure increased to the
unsustainable level of 19.7% of GDP in 1992/93.  The two situations combined resulted in a budgetdeficit of 9.1% of GDP in 1992/93 (before grants).  This deficit was financed largely through
borrowing from the banking system (mainly the Central Bank) which amounted to 2.8% of GDP.WT/TPR/G/66/Rev.1 Trade Policy Review
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12. Moreover, there was a debt conversion scheme funded by the government and a gold
purchase scheme by the Bank of Tanzania, both  of which enhanced liquidity in the economy.  These
measures however, triggered inflation from about 21% in 1991/92 to over 30% in 1995.  In order to
ensure resumption of full implementation of economic reforms, the majority of donors suspended
their support by cutting off financial assistance to Tanzania.  Moreover, the IMF in 1994/95 had
suspended support for the economic adjustment programme.  These measures led to a suddencontraction of liquidity in the economy.
13. The Third Phase Government which assumed control in the late 1995, moved quickly to adopt
a strong recovery programme.  To arrest a deteriorating economic and financial situation and to
restore donor confidence, the Government adopted a short term programme for balance of the fiscal
year covering the period January-June 1996.  Major institutional and structural reforms implementedincluded preparations for establishment of an independent authority for revenue collection and
consequently the Tanzania Revenue Authority (TRA) was 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
became possible to restore donor assistance 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 enabled Tanzania to successfully negotiate debt relief within the Paris Club framework and with
donors.
14. 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 1998/99.  Accordingly, the exchange rate remained  stable with noticeable appreciation in real terms
as confidence in the 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
15. The Government enacted the Banking and Financial Institutions Act of 1991 to replace the
Banking Ordinance.  The Act ushered in 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 other financial institutions.  Moreover, the role and
autonomy for the Bank of Tanzania (BoT) was reviewed to enable BoT carry out its supervisoryfunctions.  Furthermore, the 1991 Act led to the establishment of the Capital Market and Securities
Authority (CMSA) in 1995 and the formation of th e Dar es Salaam Stock Exchange (DSE) in 1998
with the objective of establishing a secondary market for securities and for the 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 ofthe balance of payments 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 financial institutions were licensed and are
operational.Tanzania WT/TPR/G/66/Rev.1
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(3) INVESTMENT POLICY
16. Tanzania is endowed with abundance of natural resources, 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 such as minerals and precious stones, natural gas and inexpensive labour.  Above all
Tanzania is characterized by political stability compared to many other African nations.  Thesecharacteristics provide a conducive environment which, when combined with proper incentives,
provide sufficient conditions to facilitate investment flows into Tanzania.
17. 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 for
investors.  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 was renamed as the Tanzania Investment Centre (TIC).  As per
part II of the 1997 Act Supplement, TIC 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 suchpermits and authorization required by other laws to set up and operate investments in Tanzania.
18. In respect to investment the Government's role is to provide a conducive policy and
regulatory framework to enable the private sector to participate fully in undertaking actual investment
projects.  As a service provider, the Government provides social and economic infrastructures and
investment in human development to improve the quality of the labour-force.  Investment
opportunities available are of two categories:  lead sectors and priority areas.  Lead sectors include
mining, infrastructure and manufacturing for export.  Priority areas include agriculture, air aviation,manufacturing, commercial development microfinance, tourism and transportation.  Investment in
Tanzania are guaranteed against nationalization and expropriation.  Tanzania is a member of both the
International Centre for the Settlement of Investment Disputes and the Multilateral Investment
Guarantee Agency (MIGA).  Any disputes arising between the Government and investors shall be
settled amicably through negotiations or may be submitted for arbitration before the aboveinternational organs.
19. Policy reforms in financial institutions provide for the market determination of interest and
exchange rates with appropriate intervention whenev er necessary to maintain stability necessary to
ensure investor confidence.  Local and foreign investors can obtain credit from domestic banks and
financial institutions up to the limit established by the Bank of Tanzania;  and in consultation withTIC, in respect of the amount of foreign capital invested in a particular enterprise.  The TIC grants
Certificate of Incentives under authority conferred to it by part II of Tanzania Investment Act of 1997.
To qualify for and obtain TIC Certificate of Incentives, minimum fixed investment cost for new,
rehabilitation and expansion projects should be at least US$100,000 for projects owned 100% by local
investors and US$300,000 for those 100% owned by foreign investors.
20. 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 roles, 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), it should be removed.WT/TPR/G/66/Rev.1 Trade Policy Review
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21. The tourism sector has an excellent 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 within 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.
22. The investment incentives summarized above have made Tanzania a globally competitive
country for large-scale investment.  In the mining sector, for example, several private owned large-
scale investments have resulted into projects whose production capacities have reached the range of
180,000 ounces to 300,000 ounces of gold per year.  Investors include Ashanti Goldfields of Ghana,
Anglo-American of South Africa, Resolute/Samax Resources of the UK and Sutton Resources ofCanada.  In the tourism sector large-scale investment includes establishment and operationalization of
the Sheraton Hotel in Dar es Salaam and other international standard hotels.  In the industry sector,
internationally renowned  investors have been attracted to Tanzania such as South African Breweries,
Holderbank and Scancen International (Cement), ABB (Transformers), R. J. Reynolds, and Daimon
(tobacco), etc.
III. TRADE ENVIRONMENT
(1) T
HE EXTERNAL SECTOR
23. 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, security
and preservation purposes) by simplifying export and import documentation procedures.  Export
licences were abolished in 1992/93 period.  This went hand in hand with liberalization of foreignexchange 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.
24. Simplification of export procedures, relaxation of exchange controls, privatization of
state-owned companies and new investments particularly in the mining sector has led into
improvement in performance of Tanzania's trade sector.  As a result, merchandise exports has
increased on average by 8.5% between 1992 and 1998.  On the other hand, non-tangible exports, i.e.
services, recorded a significant performance during the period.  Non-tangible exports increased on
average by 26% between 1992 and 1998.  Imports of goods have remained almost unchanged over the
same period.Tanzania WT/TPR/G/66/Rev.1
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25. On the domestic trade, restrictions on the previously controlled commodities have been
removed.  Notable progress was achieved in reducing non-barriers including elimination of import
quotas and bans, as well as import licensing requirements.  Moreover, the monopoly power previously
exercised by state marketing boards or state controlled enterprises in regard to exporting, importing,
and price control has been largely abolished.  Private institutions and individuals are encouraged to
participate in the procurement and marketing of both food and cash crops.
26. 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.  Gross international reserves of the Bank of Tanzania has been on the increase and could cover
up to about 13 weeks of imports by end of 1998.
(2) FOREIGN TRADE DEVELOPMENT
27. 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 to US$736.6 million in 1993 and improved 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 grew steadily 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 percentage
from US$1,316.6 in 1992 to US$1,366 million in 1998.  On average, trade balance improved with a
reduction in deficit by 15.5 percentage from US$ 919.6 million recorded in 1992 to US$777.5 million
in 1998.
28. Major trading partners of Tanzania include EU and Asia that account for 29.4% and 23.7%
respectively of the total imports.  The same trading blocks account for 38.4% and 32.3% of the
Tanzanian exports respectively.  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% by end 1998.
29. The structure of the export sector remained largely unchanged with traditional exports
dominating.  Traditional exports on average accounted for about 58.8% of the export receipts for the
period between 1992 and 1998.  On the other hand, the share of import categories to total imports was
dominated by capital goods during the same period.  On average, share of capital goods accounted for
about 44% followed by intermediate goods which, accounted for about 30% of the total importsduring 1992-1998 period.  Imports of consumer goods accounted for 26% of total imports.
(3) D
EVELOPMENT OF THE TRADE POLICY
30. The development of trade policy in Tanzania can be traced back from the days of price
controls, trade restrictions, single marketing channels, and confinement policies up to the mid 1980s.
In the mid 1980s trade reforms measures were initiated.  The measures initiated led to the tradeliberalization which implied the removal of barriers and restrictions, rationalization and reduction of
import duties through unilateral, bilateral, regional and multilateral measures.  The systematic and
gradual reduction and elimination of different barriers and obstacles to trade, such as bureaucratic
formalities, advance authorization, administrative controls and supervision has made a significantWT/TPR/G/66/Rev.1 Trade Policy Review
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contribution to facilitating more efficient allocation of resources and consequently noticeable
improvement of the trade regime.
31. It should be noted that Tanzania does not have a comprehensive trade policy document.
However, concerted efforts are being taken to consolidate sectoral trade-related policies into a
national policy document.
32. By and large Tanzania's trade policy will continue to be based on internal needs and external
obligations.  The macroeconomic stability will continue to be of high priority as prerequisite for a
healthy trade regime.  Moreover, the Government will continue to encourage emergence of a strong
private sector capable of promoting internal and external trade thereby creating jobs and wealth as
well as being the major source of government revenue.
(4) REGIONAL INTEGRATION
33. 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 Rim-Association for Regional
Cooperation (IOR-ARC).
34. 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 me mbership effectively by September 2000.  This decision is based on the
need for Tanzania to rationalize her membership in integration groupings to enhance Tanzania's
ability to both discharge our responsibilities and exercise our rights as members.  In the meantime
Tanzania continues to discharge her obligation in  the COMESA Treaty.  Under SADC, negotiations
on the implementation of the Trade Protocol (with aim of establishing a Free-Trade Area) are at a
very advanced stage.  Once the FTA is established the objective is to bring the import duty amongmember states to zero within eight years from the date of establishing the FTA.  Similarly, moves are
in the process under the recently signed East African Treaty to negotiate a Trade Protocol with a view
of eliminating  almost all tariffs, non-tariff barriers and non-tariff measures.  This exercise has been
given a time span of four years.  Tanzania is also a member of the charter bringing together 14
countries forming the Indian Ocean Rim-Associ ation 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
35. 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.
36. Tanzania participated in the negotiations which took eight years but, her effective
participation like any other least developed country was severely constrained by her limited capacity
technically and financially.  This is also reflected at our Missions abroad, where the resources,
including the personnel resources, are over stretched because of very heavy demands on the Missionsincluding the need to keep track of numerous activities being undertaken by the WTO.
37. Problems facing Tanzania in the concluded Multilateral Trade Negotiations are further
reflected by the difficulties we are facing in complying with the obligations in the WTO AgreementsTanzania WT/TPR/G/66/Rev.1
Page 11
in terms of notifications and other requirements.  This has, in turn, also affected Tanzania's smooth
integration into the Multilateral Trading System.
38. 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, understanding
the implication of the Uruguay Round Agreements for Tanzania's economy is considered as a priorityneed by the public sector officials and private sector executives.  Activities aimed at enhancing the
understanding of the Agreements are targeted to policy makers, academicians and private sector
executives.
39. 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
40. In Tanzania, awareness and understanding of the WTO Agreements within both the public
and private sectors is very limited and this explains why little action has yet been taken with regard to
the implementation of the Uruguay Round Agreements (notifications and legislation).  This is partly
attributed to limited capacity in understanding what is to be done.  This problem is significant if wetake into account the fact that having signed the Final Act of Uruguay Round and the Marrakesh
Agreement establishing the World Trade Organization, all the WTO Agreements became binding on
Tanzania.
41. 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 their 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.
42. The primary purpose of the ITC/UNCTAD/WTO Joint Integrated Technical Assistance
Programme (JITAP) 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 LDCs' Trade Development is progressing welland will eventually increase 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.  Moreover, Tanzania
organized a Round Table on IF on 14 October 1999 where bilateral donor agencies were represented.
The aim of the Round Table was to solicit assistance to Tanzania within the IF framework.
(3) T
ANZANIA 'S POSITION REGARDING FUTURE NEGOTIATIONS
43. 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 on future negotiation is to
ensure that issues of development are addressed decisively.  Meeting this challenge will serve toWT/TPR/G/66/Rev.1 Trade Policy Review
Page 12
strengthen the Multilateral Trading System, enhance its legitimacy and create a sustainable basis for a
new 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.
44. 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.
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 developing countries.
45. 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 economies 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.
46. 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.
47. 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 agriculturalsector 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 improved 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;
- reduction in domestic support and elimination of export subsidies by developed
countries, which displace agricultural exports of developing countries or impact
negatively on their domestic production;  and
- the obligation to formulate disciplines on export credits.Tanzania WT/TPR/G/66/Rev.1
Page 13
48. Tanzania recognizes the importance of addressing the vital issues of food security and the
development of rural economics among other things, taking into account inherent constraints of
diversification for developing countries.  Specifications of small economies like Tanzania should be
given due attention and accommodated in future negotiations on agriculture.
49. 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 decisionwhereby developed countries would extend bound, duty free and quota free treatment to all products
of 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.  Progressive liberalization of trade in services should respect both existing principles of the
General Agreement on Trade in Services (GATS) and the flexibility provided to developing countriesunder Article XIX of GATS;  including the principle 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.
50. 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 extendthe 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
51. 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.
52. 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 including
operationalization of the Competition Law and sectoral regulators.
53. In respect of the dynamism for the private sector contribution to policy formulation and
implementation, consultative mechanism between the public and the 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 in respect of an appropriate trade regime and direction of trade development.
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