News Categories: Tanzania News

African countries short-changed in WTO negotiations

For the first time, the 2015 World Trade Organisation (WTO) Ministerial Conference will be held in Africa, specifically in Kenya. WTO director general Roberto Azevêdo has in the past said the WTO has helped to boost trade growth, resolve trade disputes and support developing countries to integrate into the trading system. But most African countries ask if the multilateral trade negotiations have had any impact on African initiatives. Why are trade reforms at the WTO not changing their prospects for the better? Why has trade boosted growth in other developing countries but only minimal gains in the continent despite its resource endowment? African countries face supply side constraints that need to be addressed, although trade reforms discussed at the WTO meet tend not to be implemented. The WTO negotiations are usually complex and unfortunately due to chronic brain drain, most African trade experts work for international organisations and universities abroad. Therefore they have little influence on the multilateral trading system. Furthermore, agriculture has been adversely affected through schemes of domestic support programmes, export subsidies and export competition propelled by the developed countries in support of their agriculture sectors. How can African countries succeed in trade negotiations reforms by asking for a level playing field? What will be the implication for the developed world ceding to Africa’s ambitions? How will trade talk supersede the agenda of security and terrorism in most African legislative assemblies? One of the contentious issues in the multilateral talks is market access for both agricultural and non-agricultural...

Tanzania: TPA-Improvements at Dar Port allows handling of larger ships

IMPROVEMENTS at the Dar es Salaam Port have enabled Tanzania Ports Authority (TPA) to host MSC Martina, one of the largest container vessels, to dock at the country's major port. TPA Acting Director General, Madeni Kipande said in Dar es Salaam that the Mediterranean Shipping Company's container vessel with an overall length of 244 metres and width of 32.2 metres and carrying capacity of 2,411 containers docked without any problem. "The arrival of such large vessels is a major achievement to be recorded by the Tanzania Ports Authority," noted the TPA boss. Eng Kipande explained that the MSC Martina is one of the largest container ships owned by the Geneva-based Italian Company to dock and offload consignment at the port. The largest ship to be accommodated by the Port was Maersk Cubango with an overall length of 250 metres and width of 38 metres with capacity to carry 4,500 containers owned by the Maersk Line. The vessel captain, Abdulah Mwingamno, pointed out that the use of state-of-the-art technology used by the port has improved operations at the Dar es Salaam Port, thus easy to accommodate largest ships. "We hope to receive large ships with length of 260 metres in March and April this year," he said. MSC Country Representative, Mr Ahmed Kamal, said since MSC owns large ships, the company plans to bring more huge ships to dock at the port. "This is our largest ever ship to dock at the Dar es Salaam Port. We plan to bring more...

EAC in trade deal with European states

The East African Community is looking to expand the European market for its horticultural products through a new trade partnership with Norway, Switzerland, Liechtenstein and Iceland. The four countries, which are not members of the European Union, will start comprehensive free trade agreement negotiations with the EAC partners under the European Free Trade Association (EFTA) umbrella. The EAC and EFTA secretariats have already drafted a trade declaration in order to kick-start the negotiation process. It is expected that the negotiations will be finalised by the two parties within five years before 2021, when Kenya raises its status to a middle-income country. According to Norway’s Ambassador to Kenya Victor Ronneberg, the main thing the EFTA countries are interested in is the agricultural sector. The EAC partner states export horticultural and other products to the EU duty-free but pay duty when exporting similar goods to EFTA countries. Mr Ronneberg said the EAC countries will also benefit from the advanced technology used in the oil industry in Norway, which is among the largest oil-producing countries in the world. The country is also rich in fish produce and although some of the salmon found in East Africa is imported from Norway, it is in small quantities and a trade agreement will boost imports. “Both parties (EAC and EFTA) will negotiate a trade deal along the lines of the Economic Partnership Agreement signed between the EU and the EAC,” said Mr Ronneberg, adding that this will enable them to negotiate faster as they will use...

Africa to present unified stand on issues at WTO meeting in Kenya

African countries are working towards a common position on outstanding trade issues ahead of the 10th World Trade Organisation ministerial meeting to be held in Kenya later in the year. The initiative, aimed at ensuring African countries get a better deal at WTO negotiations, is being spearheaded by Egypt, Kenya, South Africa and Senegal. At a recent meeting in Cairo, trade ministers from the four countries committed to the development of a work programme by mid-year that would help consolidate the outstanding issues on the Bali agenda. Trade negotiations at the WTO have moved at a snail’s pace, following disagreements and hardening of positions by member countries on various issues ranging from subsidies, preferential treatment and tariff and non-tariff barriers. Some of the outstanding issues the ministers are planning to zero in on are those relating to agriculture and development and the cotton trade, viewed as critical to least developed countries. However, the African ministers said all other issues of concern by other countries also need to be part of the discussions in the December meeting, according to a statement from the World Trade Organisation. “Ministers called upon all members to show the necessary political commitment to ensure positive and substantive results, including on issues of interest to Africa. Development, after all, remains the key driving force behind the Doha negotiations,” the statement added. The ministers agreed the Doha Development Agenda remained a critical element in the work of the WTO, adding that multilateral trading system remained an engine for...

Tanzania keen to crash barriers

ARUSHA, Tanzania – The government has embarked on a project to develop three One Stop Inspection Stations (OSISs) to reduce non-tariff barriers (NTBs) to trade which inhibit intra-trade in the East African region. According to a statement by TradeMark Africa (TMA) which supports the project including other development partners, the three locations have been selected to capture the largest amount of transit traffic. The three stations will be set up at Vigwaza in Coast Region, Manyoni in Singida Region and Nyakanazi in Kagera Region, where all regulatory authorities involved in vehicle inspection along the Central Corridor will conduct their inspections jointly at one location. TMA and the European Union (EU) have funded the preparation of the detailed design, supervision and construction of two of the three OSISs at Manyoni and at Nyakanazi, the statement said.The World Bank has agreed to support the preparation of the detailed design, supervision and construction of the third OSIS at Vigwaza, through the Southern Africa Trade and Transport Facilitation Project. The stations will combine in one location activities of the Tanzanian National Roads Agency (TANROADS), which controls the weighbridges, the police force, which checks the condition of vehicles and the Tanzanian Revenue Authority (TRA), which carries out customs checks. “The site at Vigwaza is the first major weighbridge location outside of Dar es Salaam capturing both central corridor and the Dar es Salaam Corridor traffic to Southern Africa." “The site at Manyoni captures traffic from the central corridor and that from Kenya into Tanzania and...

Visa-free travel for expats in East Africa: Fantasy or reality?

Waturi Wa Matu, the Coordinator of the East African Tourism Platform, the region’s private sector body connected to the East African Community, has given the thumbs up from Juba, where the latest meeting of the Northern Corridor Integration Project took place over the past two days. There were a number of controversial issues which had made their way on to the agenda, prompting finger pointing and cross-table accusations over delays, obstacles, and obstructions. Waturi then aptly posted on her Facebook page: “Partner States carpeting each other on failure to deliver on Heads of State directives...” There was, however, progress, and upon repeated questions and answers going back and forth between Kampala and Juba, it emerged that the visa-free travel for duly registered expatriates holding work permits, or residents holding residency permits, will after all become effective on February 15, two months after it was supposed to come into effect. Said Waturi in her last communication before heading for the formal dinner hosted by the government of South Sudan for the delegates: “Just go with this - foreign residents visa fees to KE, RW, and UG waived for foreign residents from these partner states. They will receive interstate passes at [the] departure airport upon presentation of [a] valid permit. Kenya to implement by 15th Feb...” It should be pointed out, however, that this arrangement only applies at present to Uganda, Rwanda, and Kenya - countries which have subscribed to the common tourist visa and implemented travel arrangements for citizens of the...

East Africa: The use of ID and single tourist visa still pending

While other partner states already use the ID and the single tourist visa for travelling within the EAC, the Ministry in charge of EAC affairs confirms that the reliability of the Burundi ID will determine whether Burundi will join or not. "The Burundi ID is still unreliable, which is why we couldn't join other countries by using the single tourist visa or ID to travel to those countries. We can find one person in possession of two IDs within different birth areas," declares Léontine Nzeyimana, the Minister in charge of East African Community (EAC) Affairs. She indicates that the process of identifying and computerizing citizens is ongoing. "The Ministry of Home Affairs started to register urban citizens for getting electronic ID last year," adds the Minister. This was said Friday on 30th January when the Minister in charge of EAC affairs reported all activities run in 2014. "Among the major activities, there is the launch of the single customs territory, the OBR agents are now present at the port in Dar es Salaam together with other EAC customs agents to facilitate trade and transport in the community. This has contributed much in reducing time and money spent on transport. Now, trucks spend 8 days on the road instead of 21" explains Nzeyimana. Since the single customs territory is operational, clearing processes are established in the country of destination while the goods are still at the first entrance point in the EAC. When all the formalities are finished, there won't be...

Ugandan traders call for harmonization of regional port charges and procedures

Kenya and Tanzania are under renewed pressure to harmonize their port procedures and charges to ease flow of shipment to landlocked states in East Africa. Kenya and Tanzania are under renewed pressure to harmonize their port procedures and charges to ease flow of shipment to landlocked states in East Africa. A latest audit of operations at the Mombasa and Dar es Salaam ports revealed challenges to traders from Burundi, Rwanda and Uganda which affected the overall performance of trade in the region. Source: NTV Uganda

Dar keen to reduce non-tariff barriers to trade

THE government has embarked on a project to develop three One Stop Inspection Stations (OSISs) to reduce non-tariff barriers to trade which inhibit intra-trade in the East African region. The three stations will be set up at Vigwaza in Coast Region, Manyoni in Singida Region and Nyakanazi in Kagera Region, where all regulatory authorities involved in vehicle inspection along the Central Corridor will conduct their inspections jointly at one location. According to a statement by TradeMark Africa which supports the project, the three locations have been carefully selected to capture the largest amount of transit traffic. The stations will combine in one location activities of the Tanzanian National Roads Agency (TANROADS), which controls the weighbridges, the police force, which checks the condition of vehicles and the Tanzanian Revenue Authority (TRA), which carries out customs checks. “The site at Vigwaza is the first major weighbridge location outside of Dar es Salaam capturing both central corridor and the Dar es Salaam Corridor traffic to Southern Africa." “The site at Manyoni captures traffic from the central corridor and that from Kenya into Tanzania and the site at Nyakanazi handles Ugandan, Burundian and Rwandan vehicles,” reads the statement in part. TMA and the European Union (EU) have funded the preparation of the detailed design, supervision and construction of two of the three OSISs at Manyoni and at Nyakanazi, the statement said. The World Bank has agreed to support the preparation of the DED, supervision and construction of the third OSIS at Vigwaza, through the...

EAC road projects require firm commitment

SUCCESSFUL implementation of road projects in the East African region requires firm country commitment and prioritisation, the alignment of national and regional objectives and sufficient engagement and consultation with stakeholders. According to the Director of Infrastructure at the East African Community (EAC) Secretariat Philip Wambugu it was also important to harmonise design, construction and operational standards in the region. This is in addition to having clearly defined and coordinated roles, he said, of national and regional institutions at both implementation and operational stages. The EAC senior official said this in his keynote address to the first Africa Bitumen/Asphalt Forum 2015 in Nairobi over the weekend. The two-day forum brought together more than 120 participants from 25 countries. They are drawn from the various areas of refining, trading, shipping and consulting. The theme of the conference is, "New Frontiers in Global Bitumen Market." Road projects, Wambugu said, are hampered by challenges of insufficient resources; inadequate frameworks in terms of legislation and strong capital markets for mobilisation of funds; slow harmonisation of policies and their implementation at national levels; low levels of voluntary compliance; and insufficient automation. "One of the critical problems that the trucking industry has been having is the lack of return cargo. A truck travelling from Mombasa or Dar es Salaam drops goods in Kigali or Bujumbura but is not allowed to pick return cargo, meaning that you pay for both ways as the transporter," said Wambugu. Officiating at the opening of the meeting Kenya's Cabinet Secretary for Transport...