Tanzania Us Free Trade Agreement

They decided to continue working on trade facilitation, trade portals, survey centres, trade and gender issues, and to study work in other areas such as transportation. The Nairobi meeting is believed to be the first time an African regional bloc has met at this level to commit to implementing reforms to facilitate trade, in light of the AfCFTA and the WTO Trade Facilitation Agreement. The East African Community has begun to stop imports of used clothing in order to promote the development of the domestic clothing sector. With regard to the use of trade data and information provided by exporters, this study provides the first estimate of broken down imports of used clothing into Tanzania. Net imports of used clothing are estimated at more than 540 million units per year, compared to a domestic production of new clothing of 20 million units. The ban on the importation of used clothing is not the answer to the revival of East Africa`s textile industry. But the import-cancelling agreement also shifts another political score to the United States, writes Isaac Mugabi of the DW. The failure to ban the sale of used clothing was a relief to petty traders. In 2015, Kenya, Rwanda, Uganda and Tanzania agreed on a three-year plan… Tanzania`s main trading partners are China (20.7% of imports), Rwanda (18.7% of exports), India, Kenya, the United Arab Emirates, the Democratic Republic of Congo, South Africa, Saudi Arabia, the United States and Zambia.

Low duty rate (average applied fee is 7%) and few trade restrictions make the country easily accessible to international trade. The barriers to trade are mainly logistical and non-tariff. For example, the increase in traffic to and from the port of Dar es Salaam, the main port of entry and exit for goods for both Tanzania and its internal neighbours (Uganda, Rwanda, Burundi and Zambia), was not followed by the necessary infrastructure investments. This is one of the main obstacles to trade with these countries. Poorly maintained roads and railways also complicate trade. However, the government has launched a large number of projects to improve infrastructure. Obtaining building permits, registering land and paying taxes remains difficult. In addition, Tanzania is a member of the East African Community (EAC) and the Common Market of Eastern and Southern Africa (COMESA) and, as such, maintains trade relations with Member States as well as with the EU and the United States. Kenya`s apparently unilateral decision to join the ABC is largely drawn from its past experience in negotiating joint agreements, particularly the EPA between the ABC and the EU. Although negotiations on EU EPAs and EPAs are complete, the agreement is incomplete, given that only Kenya and Rwanda signed it in 2016. Although the EU granted temporary duty-free access to Kenya, the lack of a comprehensive regional agreement threatened Kenya`s trade position.

As has already been said, Kenya is the only EAC country that is not classified as LDC and the failure of the agreement would have been costly for Kenya compared to other EAC countries.

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