cooperation: (a) a program of trade regime harmonisation for the three RECs (b) free movement of business persons within the three RECs (c) joint implementation of regional infrastructure projects and programmes, and (d) legal and institutional arrangements for regional cooperation. The Summit agreed to establish an FTA with the ultimate goal of establishing a Customs Union. At the second Tripartite Summit held in Johannesburg, South Africa in June 2011, the three regional blocs adopted a developmental integration approach built on three pillars of industrial development, infrastructure development, and market integration, and launched negotiations for the establishment of a Tripartite Free Trade Area. 663. The CRM welcomes this initiative in view of its immense potential to address the problem of multiple membership and related constraints faced by countries such as Tanzania. This is indeed a model worthy of emulation by other regional groupings. It has been observed that the coming into force of the Tripartite FTA will create both opportunities and challenges. The opportunities come in the form of larger market size and huge opportunities for trade and investment. The challenge relates to enhanced competition among member states and therefore countries like Tanzania will need to put in place the necessary mechanisms to address supply-side constraints, improve productivity, and enhance competitiveness for the FTA to bring benefits rather than trade-related losses. III. Recommendations 664. The APR Panel recommends that the United Republic of Tanzania: • Develop physical infrastructure in order to reduce the cost of production and transportation and hence increase the level of competitiveness as a means of benefitting from opportunities presented by larger market size; [Ministry of Works, Ministry of Transport] • Strengthen financial markets, investment and business regulation and procedures, and customs procedures; [Ministry of Industry, Trade and Marketing, Ministry in Charge of Investment, and Empowerment, Prime Minister’s Office] • Implement schemes aimed at developing production, marketing, business education and entrepreneurial skills of the private sector (particularly SMEs) in order to enhance cross-border trading possibilities; [Ministry of Industry, Trade and Marketing, Ministry in charge of investment and Empowerment, Prime Minister’s Office) • As a matter of urgency, finalise, adopt and implement Tanzania’s EAC Common Market Implementation Strategy (2011-2015) which outlines the opportunities and challenges, identifies the roles of various institutions, sets out strategic intervention areas where actions are required, and provides recommendations for policy, planning and resource allocation; (Ministry of East African Cooperation) • Improve coordination of regional integration matters by bringing both EAC and SADC affairs under a single ministry; [Office of the President] and, • Implement the EAC communication policy and strategy to guide the process of participation of all Tanzanians in the integration process, including a better understanding of how they can reap the benefits of integration. [Ministry of East African Cooperation] 137

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