Multilateral Relations

European Union Trade Capacity Building Programme TradeCom II – ACP

Tanzania, 20/01/2020 - 15:18, UNIQUE ID: 200120_10
Joint Press Releases

Wednesday, 15 January 2020, Dodoma, Tanzania: Today REPOA in partnership with the European Union are pleased to launch the project on Strengthening Capacity of Exporters to Sustainably Enhance Export Competitiveness and Diversification.

European Union Trade Capacity Building Programme

TradeCom II – ACP

Strengthening Capacity of Exporters to Sustainably Enhance Export Competitiveness and Diversification

Wednesday, 15 January 2020, Dodoma, Tanzania:  REPOA in partnership with the European Union are pleased to launch the project on Strengthening Capacity of Exporters to Sustainably Enhance Export Competitiveness and Diversification.

This project is funded by the European Union and aims at strengthening the capacity of policy makers, exporters, and trade associations to assess and review trade and related economic policies to promote trade competitiveness and diversification for widening trading opportunities within Tanzania, the East African Community (EAC) including with the European Union.

The initiative will enhance the formulation and implementation of sustainable trade policies, including strategic measures to harness the opportunities arising from effective implementation of regional and international trade agreements.

Tanzania is making good progress to develop its infrastructure such as roads, harbours, and energy. However, real constraints on trade expansion and diversification remain at institutional level and within the regulatory framework. Challenges include the need for continuous understanding and knowledge of these constraints and their economic impact. This is important in order to design appropriate measures to effectively address these constraints and improve coordination and dialogue with key stakeholders.  

Low level of trade competitiveness is also due to a cumbersome taxation system, as well as an escalating tariff structure that creates a large dispersion in protection levels, and high tariffs. While the nominal tariff rate may be relatively modest in most cases, the effective rate may be much higher. For example, the rate of export duty on raw hides and skins is 80 percent or US$0.25 per kilogram which is larger than other EAC countries. 

Under the grant agreement, REPOA will implement three components:

  1. Dialogue on the policies through the Annual Research Workshop to provide opportunity for researchers and professional academics working on trade to disseminate their findings.
  1. Establish a small grant programme that will provide funding to high quality research proposals (maximum of 10) to young professional researchers interested to work on trade and regional integration issues on Tanzania, thereby building long term capacity to conducting trade policy analysis.
  2. Establish a dedicated programme on trade policy and regional integration analysis, with focus on
  1. Sectoral Trade Policy Analysis.
  2. Support research capacity of the Trade Support Institutions (TSIs).
  3. Review of the EAC-EU EPA.
  4. Develop Trade database to improve M&E systems for Trade policy.

The project will also extend support to Value Chain Development activities (through Technical Assistance -TA) in five sub-sectors: Horticulture, Rice, Leather, Seaweed (for Zanzibar) and Logistics.

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