Tanzania: Non-Tariff Barriers Still Hamper Trade - Minister

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The Citizen (Dar es Salaam)

16 May 2008
Posted to the web 16 May 2008

Pius Rugonzibwa

Non tariff barriers to trade have been mentioned by business communities in the East Africa Community zone as a challenge to smooth trading in the sub-region.

For sometime now, since the inception of the EA Customs Union, business communities have been complaining about this problem, listing inconveniences blocking the smooth running of inter-EA trade.

East African Cooperation minister Dr Diodorus Kamala said at a press conference yesterday that the business community complains about uneven decision making in customs administration as well as cumbersome procedures in quality inspection for goods transported within East African markets.

Other inconveniences include unnecessary road barriers, different organs dealing with uniform customs regulations and lengthy procedures in procuring licenses.

"For instance, a report from Kenya says it has about 1325 licenses used by the central government and local governments, while Tanzania has 64 licenses under 53 different institutions, removing licences given by local authorities, not included in the study," he said.

In June last year, EAC member countries adopted a strategy to solve the problem of non-=tariff barriers, also inaugurated in Tanzania during the budget session of Parliament.

When the Customs Union functions smoothly to enable a better environment for doing business, the challenges will be sorted out as the system becomes more familiar to members.

"By 2010 the Customs Union will be operationally fully fledged as experiences and challenges are carefully monitored," the minister said optimistically.

Since the inception of the customs union, Tanzania has recorded a turnover of $117.1 million in 2006, rising to $169.48 million in 2007 an increase of about 45 per cent, while imports declined from $174.4 million to $110.1 million.

Tanzania managed to attract investments within the region from $24.95 million in 2004 to $566.29 million in 2007, representing a massive increase of 2,169.6 per cent, the minister added.

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