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]
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