Tanzania Bilateral Trade Agreements

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. Tanzania suffers from a chronic trade deficit. However, the increase in coal and hydrocarbon reserves is expected to decline significantly in the future. Between 2014 and 2017, it increased from -5.7 billion to $3 billion. In 2018, the deficit has risen to -3.37 billion (World Bank). In 2018, goods exports reached $3.85 billion (-12% over 2017), while imports reached $8.8 billion (-5%) Freedoms and Freedoms Committee. Services exports totaled $3.75 billion, while imports amounted to $1.98 billion (WTO). Export taxes and bans are expected to continue to limit exports, while imports of capital goods are expected to weigh on imports. 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.

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