WORLD TRADE
ORGANIZATIONWT/IFSC/W/8/Add.4
24 October 2001
(01-5221)
Integrated Framework Steering Committee
INTEGRATED FRAMEWORK PILOT SCHEME:
PROPOSAL FOR FOLLOW-UP TO THE IF ROUND TABLES
Addendum
United Republic of Tanzania
I. BACKGROUND
A. INTEGRATED FRAMEWORK ROUND TABLE
1. To-date, the implementation of the Integrated Framework (IF) Programme for Tanzania has
involved two consultative workshops, a presentation to the Consultative Group Meeting and twelve
sessions of the National Steering Committee.
2. The First consultative workshop was held on 14 October, 1999 and its main output was a
compendium of trade related assistance projects then under implementation and a revision of theconstraints that have to be addressed in the process of facilitating trade development.  The output
thereof served as the basis of designing a Programme to address constraints mitigating against trade
development in Tanzania.  The programme drew heavily on an Export Development Strategy (EDS)
report, undertaken by the Government with the assistance of the World Bank, whose final report was
submitted in 1996.
3. The second consultative workshop was held in April 2000 to adopt an IF Programme that was
presented to the Consultative Group Meeting held in Dar-es-Salaam in May 2000 (through a threevolume set of documents).  During the CGM, th e multilateral and bilateral donor community adopted
the Programme and indicated commitment to channelling priority assistance to a component on
“Strengthening the Enabling Business Environmen t” involving legal and regulatory reforms and
institutional capacity building, on key elements of private sector development.
4. In September 2000, the National Steering Committee with the support of DFID, SIDA and the
Royal Netherlands Embassy embarked on designing an action-oriented “Enabling Environment
Programme”.  A team of international consultants undertook extensive field-work involving review of
existing studies and reports and interviews with stakeholders in the public and private sectors and the
donor community with regard to constraints related to the enabling environment.  A draft programme
was produced and submitted in December 2000 and served as the basis for further consultations inGovernment and between the Government and the private sector.  A final report recommending a
programme with a budgeted cost of 14 (fourteen) million dollars was submitted in May 2001 and is
now being considered within Government channels for approval and implementation.  Four bilateral
donors have indicated commitment to support the programme technically and financially, subject to
its approval for implementation.  These are the Governments of the United Kingdom, Sweden,The Netherlands and Denmark.WT/IFSC/W/8/Add.4
Page 2
5. The programme for “Strengthening the Business Environment for Tanzania” incorporates five
key components:
− A Better Regulation component;
− A Commercial Justice Delivery Component;
− Strengthening of the Tanzania Investment Centre;
− A Component on Changing the Culture of Government;  and
− A Component on Strengthening of Private Sector Advocacy.
6. From a different perspective, since May 2000, the Government of Tanzania has been working
on the formulation of a Tanzanian Trade Development Strategy and Trade Policy, with the assistanceof the Swedish Government (Sida).  The objective is to come up with a Trade Policy document that
reflects the essence of an economy in transition towards a market system and provides for conformity
with national obligations arising from membership in the WTO.
7. Finally, the Government of Tanzania is also in the process of laying the groundwork for
effective implementation of the envisaged trade pol icy with the support of the British Government
(DFID) through a Trade Policy Programme, currently at the design stage, focusing on measures
needed to establish the capacity to implement the new trade policy.
B. T
ANZANIA 'S INTEGRATION IN THE MULTILATERAL TRADING SYSTEM
8. Tanzania's trade policy is in draft form (as of November 2000).  The country is among the
first four LDCs receiving assistance under the Joint Integrated Technical Assistance Programme
(JITAP) to enable the country come to grips with World Trade Organisation (WTO) arrangements in
order to access opportunities in the world trading system and initiate mitigative measures for its full
integration in the world trading system.  Tanzania's gains in international trade have not been very
encouraging so far, although a great potential exists.  The poor performance of exports is attributed to
low production and uncompetitiveness brought ab out by high costs of production, low quality of
products as well as market-related weaknesses.  This in turn is linked to the low level of skills and
general low level of development.  In particular, the country has not been able to take full advantageof opportunities in external markets due to the structure of her export base.  Exports of agricultural
products in unprocessed or semi-processed forms constitute around 60 per cent of total exports.
Experience with high reliance on agricultural exports (declining terms of trade, susceptibility of
output to weather changes, etc) led Tanzania into  mounting strategies towards diversification into
non-traditional exports in an effort to overcome suppl y-side constraints.  In this regard, trade policies
have been pursued coherently.  For Tanzania to benefit from the world trading system she has to
seriously address the issue of competitiveness.  Areas of such potentials include mineral exports,
manufactures and tourism.  The government has come up with many initiatives addressing:
− Supply constraints especially physical infrastructure as well as costly and unreliable utility
services;  capacity constraints in production.
− Support services in trade (information, financing, technical, packaging etc.).
− Technology to effect diversification especially into export of manufactures.
− Export culture (non-adherence to standards and delivery schedules).
9. These initiatives include the Joint Integrated Technical Assistance Programme (JITAP) and
the Integrated Framework for Trade (IF).
10. The JITAP programme has covered good ground in addressing the problem of Tanzania's
ineffective participation in the MTS and helped create broad-based awareness of the MTS, the
benefits to be derived from it and its implications for businesses.  On the supply side, the GovernmentWT/IFSC/W/8/Add.4
Page 3
with the support of partners in development is  implementing a programme which covers the power
sector, railways, roads, telecommunications, ports, pe troleum sub-sector, in the medium term.  Other
initiatives include support to the privatisation process, mineral sector development and development
of financial institutions.
C. STRATEGIC CONSIDERATIONS FOR THE MAINSTREAMING OF TRADE
11. In view of the foregoing constraints and current initiatives being pursued, Tanzania has opted
for the exploration of export possibilities in the context of sub-sectors with high potential for
enhanced performance in line with Vision 2025.  The Vision has as one of its strategies an export-led
economic growth.  The Government has prepared programmes which specifically address the
problems of international trade focusing on increasing exports quantity-wise as well as qualitatively.
The umbrella programme is the Export Development Strategy (EDS) with several components.  Twoother complementary programmes are the Joint Integrated  Technical Assistance Programme which
basically addresses the problems of effective participation in MTS, and the Integrated Framework (IF)
for Trade Development which focuses more on problems associated with support services.  The
specific programmes are:
(a) Programme for Business Environment Strengthening in Tanzania;
(b) Export Development Strategy (EDS) Review and Implementation;
(c) Development of Economic Processing Zones (EPZs);
(d) Capacity building for export promotion;
(e) Promotion of Trade in Services and Transit Trade.
12. In view of the compelling need to boost exports and make them more competitive, the
Government accords high priority to trade as an important tool for national development and poverty
reduction.  The issues of “mainstreaming of trade” and how it addresses the poverty agenda are both
covered in the policy formulation and implementation aspects explained under Part 1 above.  There
are other initiatives at the multilateral level such as the Programmatic Structural Adjustment Credit
supported by the World Bank focusing on different aspects of private sector development and byimplication trade development.  However the bilateral initiatives detailed in Part 1 are the most direct
initiatives addressing the trade agenda in Tanzania today.
13. In particular, the Government of Tanzania recognises the need to draw up and implement
comprehensive sectoral strategies for selected sect ors which show a high potential for export growth.
It therefore proposes to utilise an important part of the contribution expected from the Integrated
Framework Trust Fund for strengthening the JITAP programme, in particular, to prepare sectoral
strategies.  The Ministry is establishing a unit to consolidate emerging gains and entrench theexperience of the JITAP programme.  It is for this reason that it is felt that the US$300,000 is best
channelled to financing activities that are incorporated in the JITAP programme.
14. To complement these activities, the Government recognises the urgent need to come to terms
with all aspects of the Multilateral Trading System including compliance and implementation,
creating negotiation capacities as well as understanding the full impact of the WTO Agreements onthe business community and the opportunities offered by them.  Remaining funds made available
from the Integrated Framework Trust Fund under the new IF arrangements are proposed to be utilised
for this purpose to strengthen and enhance the work of the Inter-Institutional Technical Committee
and Sub-Committees established under the JITAP programme for this purpose.  These activities areWT/IFSC/W/8/Add.4
Page 4
elaborated further below and are fully in accordance with the Government’s objective of
“mainstreaming trade” and in line with project profiles presented at the earlier trade-related Round
Table Meeting.
15. As noted earlier, the initiatives being implemented with bilateral donor assistance provide
substantially for the issue of mainstreaming of the trade agenda.  Whether or not there will be gaps tobe addressed will depend on the outcome of these initiatives.  Consequently, existing gaps that can be
addressed quickly remain in the areas of implementation of existing programmes particularly the
JITAP programme.
D. O
N-GOING TRADE RELATED TECHNICAL ASSISTANCE PROGRAMMES1
16. As mentioned in the earlier sections of the document, the Consultative Meetings on the IF
have resulted in donors supporting or expressing an interest in supporting technical assistance
programmes presented in the IF document.  Moreover, Tanzania is also benefiting from on-goingtechnical assistance programmes from a number of bilateral donors in the area of trade policy,
capacity building etc.  Some of these are mentioned in Annex 1.
II. PRIORITISATION OF ACTIVITIES TO BE FINANCED UNDER THE IF
17. The Government of Tanzania undertook consultations on priority project concepts  envisaged
to facilitate rapid mainstreaming of trade activ ities into the national development agenda.  The
proposals take into consideration other initiatives currently being negotiated through bilateral donor
support under the aegis of the National Steering Committee of the Tanzanian IF programme.  The
proposals submitted here respond to mitigating constraints identified by a National Committee
charged with the implementation of the WTO agreements under the JITAP programme, and are
intended to compliment the JITAP programme.
18. Specific project proposals fall under two categories:  The export development strategies and
establishment of capacity for effective participation in the MTS. It is proposed that the International
Trade Centre be the overall Executing Agency for both project modules. Whereas ITC will implement
the large majority of activities, certain individual activities within each module are to be implemented
by UNCTAD and WTO through an Inter-Agency Agreement.
A. E
XPORT DEVELOPMENT STRATEGIES FOR PRIORITY PRODUCTS
19. The objective in this instance is to carry forwar d measures in developing the export development
strategies for six priority products that are currently stalled due to lack of resources.  The priority
export products are horticultural products and spices;  tourism;  fish and fish products;  gemstones;
textile and garments;  and handicrafts.2  It is proposed that funds be utilised to prepare export
development strategies for two priority products i.e. fish and fish products and gemstones.  The
strategies will be accompanied by an action plan for the implementation of the strategy, which willform the subject of discussion at a meeting of the World Bank Consultative Group for Tanzania and
which will be fully integrated in the preparation of Tanzania’s Poverty Reduction Strategy Paper.  The
                                                     
1 The coordination of the project activities as well as of othe r on-going trade-related TA with the proposed project will
be ensured by the Ministry of Trade and Industry.
2 This is a major undertaking that may cost more than the full amount of US$300,000 placed at Tanzania’s
disposal.  It is proposed that a ma ximum of US$180,000 be set aside to finance this activity and that additional
financing requirements be sought from appropriate bilateral donor programmes.  Work on the exportdevelopment strategies will initially focus on two products (fish & fish products and gemstones) so as toconcentrate resources on a few areas that will have maximum impact on trade development and avoid runningout of funds before some strategies are in place and operational.  Action on remaining product lines can be
initiated as additional resources become available.WT/IFSC/W/8/Add.4
Page 5
preparation of these two sectoral strategies will contribute to the formulation of the overall National
Export Strategy.
(a) Activities
1.1 Prepare a diagnostic study of the selected export sub-sectors relating to constraints and
opportunities.
1.2 Provide coaching on sectoral strategy formulation to Sectoral Counterpart Teams set up
under JITAP for the selected sub-sectors.
1.3 Undertake international market demand survey for selected sub-sectors including the
purchase of Product Maps and Trade Maps.
1.4 Prepare sectoral strategy and action plans for the selected sub-sectors.
1.5 Organise a National Symposium to discuss and approve the sectoral strategy papers.
1.6 Organise market missions for selected enterprises engaged in the selected sub-sectors.
(b) Budget
− US$ 157,000
(c) National Counterpart:
− Ministry of Industry and Trade;
− Confederation of Tanzania Industry (CTI);
− Tanzania Chamber of Industry and Commerce (TCCIA);
− Ministry of Agriculture;
− Board of External Trade; 3 and,
− Strategy Counterpart Teams
B. BUILDING CAPACITY FOR EFFECTIVE PARTICIPATION IN THE MTS
20. Tanzania has established an Inter-Institutional Technical Committee (IITC), under JITAP, to
undertake national implementation of obligations arising from the WTO Agreements and to advise on
how best to access the emerging opportunities.  The IITC, during a two-day retreat held in June 2001,
identified several constraints related to lack of resources and capacity that mitigate against itseffective performance in terms of enabling Tanzania  fulfill obligations and exercise rights in the
WTO.  These functions include:
− Effective follow-up on the WTO negotiations;  and
− Implementation of aspects of the WTO Agreements including the notification obligations and
the adaptation of the Agreements within the National Laws of Tanzania.
                                                     
3 The Board of External Trade is responsible for export promotion of non-traditional exports. It is and has been
the subject of capacity building efforts both for institutiona l capacity building and HRD but it continues to show capacity
weaknesses. Its role as a national counterpart will be facilitated by the participation of other institutions from the public a nd
private sector.WT/IFSC/W/8/Add.4
Page 6
21. Four specific project components, for financing under the IF Trust Fund allocation, are being
proposed in this area4.
1. Adaptation of WTO Agreements into Tanzanian Trade Laws
22. Although the retreat felt that the function fo r the review of Tanzanian Laws and their
adaptation to WTO obligations should be delegated to the Tanzanian Law Reform Commission,
experience reveals that this institution has a heavy work load and other pressing priorities such that it
would certainly take years before any attention is accorded to WTO issues.  Yet the alignment of
Tanzanian Laws to the demands of the Multilateral Trading System is already behind schedule and
long overdue.  The only way to catch-up with lost time is for the Ministry of Industry and Trade to
shoulder this responsibility directly and undertake the necessary initiative to raise funding for the
requisite legal review and reforms.
(a) Activities
2.1 Commission a review of Tanzania’s Trade Laws with a view to determining the specific laws
that require amendment and the volume of work involved;
2.2 Draw up Terms of Reference fo r an eventual review assignment;
2.3 Undertake requisite legal review and reform s for compliance with the WTO Agreements.
(b) Budget
− US$ 26,0005
(c) National Counterpart
− Ministry of Industry and Trade;
− Ministry of Justice and Constitutional Affairs; and.
− Tanzanian Law Reform Commission.
2. Legal Mandate for t he IITC
23. One of the problems affecting the performance of the IITC is lack of both legal and
administrative mandate for its co-ordinating functio n on WTO issues.  There is need to draw upon the
experience emerging from the institutionalization of similar mandates in the EAC region such as
Kenya, decide on a suitable format for the Tanzanian IITC, and accord it the relevant mandate and
resources.  This is a priority element given that movement and progress on all WTO issues at the
national level depends on the efficiency of the IITC and its Secretariat.
                                                     
4 While the actual magnitude of funding required for each com ponent is yet to be established, a preliminary budget of
approximately US$30,000 for each activity is given as an indicative figure. For this reason a total of four project com ponents
or activities are identified for financing under the balance of US$120,000 available from the IF Trust Fund (assuming that
proposals on the priority products export development strategies component are accepted).  Alt hough the flat-rate of
US$30,000 is proposed for each activity, it is certain that  some activities would cost less and some require more
funding and adjustments can be made accordingly during the preparatory phase.
5 This activity is to be implemented by WTO.WT/IFSC/W/8/Add.4
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(a) Activities
3.1 Develop different options for providing a legal or administrative mandate to the IITC.
3.2 Draw up recommendations based on in-depth analysis of the pros and cons of each option.
3.3 Prepare draft legislation and regulations for the legal mandate option, in the event this is
found to constitute the first-best option.
(b) Budget
− US$ 26,000
(c) National Counterpart
− Ministry of Trade and Industry;
− Ministry of Finance;
− Ministry of Justice & Constitutional Affairs;
− Tanzanian Law Reform Commission
3. Technical Support to the IITC Sub-Committees
24. The IITC is comprised of four sub-committees each assigned with specific tasks arising from
the WTO agreements.  There is need for technical assistance to each of the sub-committees with a
view to establishing the capacity to perform their functions.  The level of priority on technical support
differs across the sub-committees.  Financial support to the Sub-committees is detailed below.  In
practice this should reflect relative priorities amongst the four Sub-Committees.
(a) Subcommittee I (on Agriculture, SPS etc ) is already functioning.  The review of
laws and regulations concerning SPS measures will be completed by 2002 and someprogress is being made in the area of notification requirements.  One area of need
concerns creation of awareness especially in the business community
6.
(b) With respect to Sub-Committee II (TBTs, Import Licensing, Rules of Origin,
Customs Valuation and PSI)  it is noted that compliance and notification is at an
advanced stage of implementation.  However there is need for technical assistance toupgrade TBS laboratories and training of new techniques for conformity assessment.
Probably this support can be used to ascertain the extent of needs and come up with a
specific project for presentation to bilateral donors
7.
(c) Subcommittee III (TRIPs, TRIMs, Anti-Dumping and Safeguard Measures):
Work on compliance and notification is in progress.  Technical assistance has been
secured from bilateral sources to undertake necessary review of some of key national
legislation.  Assistance still required on drafting national legislation on anti-dumping.
It is proposed to source this from the IF Trust Fund allocation8.
                                                     
6  It is proposed that this activity be implemented jointly by UNCTAD, WTO and ITC.
7  It is proposed that this activ ity be implemented by ITC and WTO.
8  It is proposed that this ac tivity be implemented by the WTO.WT/IFSC/W/8/Add.4
Page 8
(d) Subcommittee IV (Trade in Services):   There are proposals to establish an apex
body to co-ordinate activities in the area of Trade in Services, probably modelled on
Kenyan experience.  Assistance is required to establish and put this mechanism in
place and facilitate its operationalisation9.
(b) Budget
− US$ 26,000
(c) National Counterparts: 
− Ministry of Trade and Industry;
− Ministry of Agriculture;
− Ministry of Justice & Constitutional Affairs;
− Tanzanian Law Reform Commission;
− Standards Bodies; and,
− Associations of Service Providers.
4. Capacity Building within the Secretariat of the IITC
25. The efficiency of the IITC and its sub-committees depends on the efficacy of the
IITC’s Secretariat.  The IITC secretariat will n eed to be equipped with necessary information,
computer equipment and human resources to respond to its mandate adequately.
(a) Activities
4.1 Upgrading of the Reference Centre includin g provision of software, databases, internet
access at the Ministry of Industry and Trade;
4.2 Organise training courses for personnel involv ed in the JITAP Programme at the Ministry
including training on information technology and computer literacy.
(b) Budget
− US $ 26,000
(c) National Counterpart: 
− Ministry of Industry and Trade
                                                     
9  It is proposed that this activity be implemented jointly by UNCTAD and ITC.  ITC has assisted a number of African
countries in setting up apex organisations of service providers in the r ecent past.WT/IFSC/W/8/Add.4
Page 9
C. PROPOSED CALENDAR OF ACTIVITIES
Project Module Starting date Expected Date of
CompletionRemarks
Export Development Strategies for
Priority Products October 2001 December 2002
Adaptation of WTO Agreements intoTanzanian Trade Laws October 2001 June 2002
Legal Mandate for the IITC October 2001 February 2002
Technical Support to the IITC Sub-
Committees October 2001 June 2002
Capacity Building within theSecretariat of the IITCOctober 2001 May 2002
D. CONSOLIDATED BUDGET
Project Module 2001 2002 Total
Export Development Strategies for Priority Products 47,142 109,998 157,140
Adaptation of WTO Agreements into Tanzanian Trade
Laws7,857 18,333 26,190
Legal Mandate for the IITC 7,857 18,333 26,190
Technical Support to the IITC Sub-Committees 7,857 18,333 26,190
Capacity Building within the Secretariat of the IITC 7,857 18,333 26,190
Total without Programme support costs 78,570 183,330 261,900
Project Support Costs 10% 8,730 20,370 29,100
Grand Total 87,300 203,700 291,000WT/IFSC/W/8/Add.4
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ANNEX 1
On-Going Trade Related Technical Assistance Programmes
Donor Project Title Objective Budget
Trade Policy
TanzaniaEnhancing capacities to make and
implement trade policy consistent withWTO obligations (including general
training on WTO activities, dispute
settlement, TPRM).Agreed amount 2.6
MSEK
10
(USD246,090)
EPOPA – ExportDevelopment and
Certification
ProgrammeOrganic Products
from AfricaStrengthening the policy environment
for trade liberalisation.Agreed amount 15
MSEK.
(USD1,419,737)
This project involvesothers African
countries
Start SouthImproving competitiveness of
enterprises;  increasing investment
(including foreign direct investment) in
productive sectors.Agreed amount 20
MSEK.
(USD1,892,983)
This project involve
others African
countries
(Swedish
International
Development
Co-operation
Agency)Enterprises
Development
Programmes in
Tanzania, Sri
Lanka and ZambiaND11Agreed amount
18,75MSEK
(USD1,774,726)
Textilica –Business
Development,
Training and
InstitutionalBuilding Textile
ClothingAgreed amount 5,2
MSEK
(USD492,218)
Trade Promotion
Services Assistance
in  Developing
CountriesSupport at the enterprise level
including access to business
information, use of information
technology, adaptation/development of
new products, advice on standards,packaging, quality control, marketing
and distribution channels;  commercial
representationAgreed amount 13,4
MSEK.
(USD1,268,408)
Tanzania Chamberof commerce and
Industry Assistance
(TCCIA)Technical Assistance for the
functioning of the Chamber of
Commerce and IndustryAgreed amount 17,5
MSEK.
(USD1,656,459)
National Quality
InfrastructuralProjectWith Tanzanian Bureau of Standards 3,25 MSEK
(USD307,628)
                                                     
10  MSEK  : Million of Swedish kronas:
11  ND : Non defineWT/IFSC/W/8/Add.4
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Donor Project Title Objective Budget
Tanzania Private
Sector  Foundation
AssistanceTechnical Assistance for the
functioning of  the Private Sector
FoundationAgreed amount 0,225
MSEK
(USD21,297)
FINLAND Support to  some
international  non-
governmental
organisationsOrganisation of seminars and studies
on trade issues
DENMARK Business sector
support ProgrammeConsultations under
way to add a trade
component to theprogrammeWT/IFSC/W/8/Add.4
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ANNEX II
UNITED NATIONS DEVELOPMENT PROGRAMME
Integrated Framework Trust Fund (IFTF)
Project Number : ……………………..
Title : Follow-Up of Trade Round Table
Pilot Phase of the Integrated Framework
Estimated Starting Date : October 2001
Duration : 15 months
Project Location : Dar-es Salaam, Tanzania
Government Cooperating Agencies :
Ministry of Industry and Trade; Ministry of Fi nance, Confederation of Tanzania Industry (CTI),
the Tanzania Chamber of Industry and Co mmerce (TCCIA), Minist ry of Agriculture,
Board of External Trade Ministry of Justice and Constitutional Affairs;
Tanzanian Law Reform Commission Minist ry of Agriculture; Standards Bodies
Executing Agency: International Trade Centre UNCTAD/WTO (ITC)
Implementing Agencies : United Nations Conference on Tr ade and Development (UNCTAD)
World Trade Organisation (WTO)
Sector : Trade Development
__________________________________________________________________________________
Brief Description:   The project aims to assist exporters to integrate in the global trading system and
government strategy makers to « Mainstream » trade in national development plans and poverty alleviationstrategies in the country, in particular the PRSP. The main  focus of the project is to assist in the preparation of
sectoral export strategies for products having good export potential applying the « coaching » and « do it
yourself » approach. It also aims to provide assistance for strengthening the Inter-Institutional Committees
established under the JITAP programme.
__________________________________________________________________________________
On behalf of:   Government of United Republic of Tanzania
_________________________________________________ Date: ________________
United Nations Development Programme
_________________________________________________ Date: ________________
International Trade Centre UNCTAD/WTO
________________________________________________ Date: ________________
__________Contributions
IFTF
($US)
2001 : $   87 300
2002 : 203 700
________
TOTAL : $ 291 000
=======