Trade

Tanzania’s Poverty Reduction Strategy, MKUKUTA, identifies sustainable and “pro-poor” economic growth as an engine for national development and the delivery of key social services like education and health.

The European Union has a specific mandate to negotiate trade agreements on behalf of its Member States. For the East African Community (EAC) member states (Tanzania, Kenya, Uganda, Rwanda and Burundi), the key process in this respect has been the Economic Partnership Agreements (EPAs).

If accompanied by supporting policies and if used correctly, trade policies can provide opportunities for promoting economic development and tackling poverty reduction. Development is a fundamental tenet of the EU trade strategy which aims to support the gradual integration of developing countries in the world economy and the multilateral trading system.

In order to ensure that least developed countries are able to benefit from the multilateral trading system, it is essential to address constraints on the “supply side”, such as poor infrastructure, energy, water, sanitary and phyto-sanitary requirements, and other problems. Macroeconomic aid (so called “budget support”) can also assist in this respect. The EU’s national indicative programme for Tanzania under the 10th EDF sets out the EU’s objectives for the period 2008-2013, and illustrates our focus on infrastructure, agriculture and trade.

The European Union continues to work with all WTO members to promote Aid for Trade initiatives. As laid out in the EU Aid for Trade strategy presented in 2007, trade-related assistance from the European Union budget and European Member States should reach €2 billion a year in 2010 (€1 billion from the European Commission and €1 billion from Member States), as a necessary complement to the EU's policy of providing open market access for the poorest developing countries.

European Union is still the most important trading partner for Tanzania. Close to 25% of Tanzania's exports are destined to the European Union while 17.5% of Tanzania's imports originate from the EU. The below tables provide information on the structure of EU/Tanzania trade.

European Union, Imports from Tanzania in 2009

 

 

SITC Codes

SITC Sections

Value
(Millions of euro)

Share of Total (%)

 

Share of total EU Imports

 

 

 

 

 

 

 

TOTAL

349

100.0%

 

0.0%

SITC 0

Food and live animals

184

52.6%

 

0.3%

SITC 2

Crude materials, inedible, except fuels

49

14.1%

 

0.1%

SITC 6

Manufactured goods classified chiefly by material

28

8.0%

 

0.0%

SITC 7

Machinery and transport equipment

11

3.1%

 

0.0%

SITC 1

Beverages and tobacco

4

1.1%

 

0.1%

SITC 9

Commodities and transactions n.c.e.

2

0.7%

 

0.0%

SITC 8

Miscellaneous manufactured articles

2

0.6%

 

0.0%

SITC 4

Animal and vegetable oils, fats and waxes

1

0.2%

 

0.0%

SITC 5

Chemicals and related prod, n.e.s.

0

0.1%

 

0.0%

SITC 3

Mineral fuels, lubricants and related materials

0

0.0%

 

0.0%

 

European Union, Exports to  Tanzania in 2009

 

SITC Codes

SITC Sections

Value
(millions of euro)

Share of Total (%)

 

Share of total EU Exports

 

 

 

 

 

 

 

TOTAL

720

100.0%

 

0.1%

SITC 7

Machinery and transport equipment

396

55.1%

 

0.1%

SITC 5

Chemicals and related prod, n.e.s.

85

11.7%

 

0.0%

SITC 0

Food and live animals

60

8.4%

 

0.1%

SITC 6

Manufactured goods classified chiefly by material

54

7.5%

 

0.0%

SITC 8

Miscellaneous manufactured articles

36

4.9%

 

0.0%

SITC 2

Crude materials, inedible, except fuels

12

1.6%

 

0.0%

SITC 3

Mineral fuels, lubricants and related materials

9

1.2%

 

0.0%

SITC 1

Beverages and tobacco

9

1.2%

 

0.0%

SITC 9

Commodities and transactions n.c.e.

8

1.1%

 

0.0%

SITC 4

Animal and vegetable oils, fats and waxes

0

0.1%

 

0.0%