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INTRODUCTION (1)

INFORMAL, OPEN-ENDED INFORMATION MEETING ON TACB INCORPORATION OF TRADE FACILITATION TACB INTO DEVELOPMENT PLANS AND COORDINATION WITH DONORS TANZANIA CASE STUDY. INTRODUCTION (1)

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INTRODUCTION (1)

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  1. INFORMAL, OPEN-ENDED INFORMATION MEETING ON TACBINCORPORATION OF TRADE FACILITATION TACB INTO DEVELOPMENT PLANS AND COORDINATION WITH DONORS TANZANIA CASE STUDY

  2. INTRODUCTION (1) • TF is important because it has potential to reduce the costs of trade globally and therefore enhance competitiveness of exports and imports. • The fundamental objective of TF negotiations for the developing and LDCs is to enhance TA and support for capacity building, as provided for in the TF negotiating modalities. • The identification of needs and priorities is very necessary to proceed in parallel with substantive negotiations. • Tanzania's Needs and Priorities programme was conducted in 2007.

  3. INTRODUCTION (2) • The NA was preceded by an advance meetings between: • Officials from the WTO, USAID, and the Geneva Delegate; • Senior officials from key Tanzanian Ministries, Departments and the private sector that include Ministry of Industry, Trade and Marketing, Min. of Agriculture; • Customs; Tanzania Bureau of Standards; Tanzania Ports Authority, Surface and Maritime Transport Regulatory Authority; National Business Council and Tanzania Freight and Forwarders Association. OBJECTIVE • To gain political will and sensitization on the importance and objective of TF negotiations and needs assessment for Tanzania.

  4. PRESENTATION • About 40 participants from both the private and public sectors attended the programme. • About 55 proposed measures were considered. • Participants reviewed the results of the NA and determined the conclusion of the results. • Conclusions were presented to the final reporting session of the high level officials that were met prior to the assessment programme. • Discussion and feedback on findings of the assessment was finally made.

  5. OVERALL RESULTS AND OUTCOMES • Measures complied with - 16 (29%) • Partially compliant - 25 (45%) • Not complied with - 12 (22%) • Measures not applicable to TZ - 2 (4%) NOTE • 55 Measures were examined out of more that 100

  6. Some of the Priorities Identified in TZ: (1) • Improving coordination, information sharing and awareness among stakeholders; • Automating the processes; • Improving infrastructure for information and communication including power supply; • Improving and modernizing transport infrastructure in railways, roads and ports; • Capacity building:- risk management systems, destination inspection; accreditation procedures; and equipment (e.g. scanners, and IT hardware); • Developing risk management infrastructure (electronic sealing/tags and electronic cargo tracking system); • Putting in place policy and legal framework;

  7. Development Plans • National Development Vision 2025 • Goals are targeted through PRSP programmes • The 1st was a three year rolling plan that focused mainly on the service sectors including: health, education, water and transport sectors; • The 2nd cycle of the PRSP ie. The National Strategy Growth and Poverty Reduction (NSGPR) populaly known as MKUKUTA (5 yrs) which captures issues of growth which were not in PRS 1 • Emphasis on Public/Private partnership in addressing national needs; • The DTIS approach is to incorporate trade development issues into MKUKUTA and mobilize bridging finance form donors

  8. TANZANIA DTIS (1) • DTIS was undertaken in 2004, validated in 2005 and approved by the Government in 2007; • 2006 Tanzania organised a DTIS Prioritization Workshop that recommended actions in certain priority sectors; • DTIS is a comprehensive document that consists of two volumes: • The 1st volume analysing economy-wide constraints. • The 2nd one analysing the sub-sector specific constraints • It includes 127 recommended actions, basically everything that falls under the three basic WTO/OECD categories: • Trade policy and regulations • Trade development and • Infrastructure (transportation in the case of Tanzania)

  9. TANZANIA DTIS (2) • A situation analysis of the critical factors that influence Tanzania’s integration into the global economy and requisite measures for better performance is presented in 1st volume of the DTIS Report. • Factors identified under this volume are essentially internal factors related to macro-economic variables that include policy measures in the following areas: • Macro economic environment and competitiveness; • Trade policy instruments; • Institutions for trade policy and export development; and • Customs, Trade Facilitation and Transportation; • In addition, the macro economic variables include three external factors which remain largely outside the national domain although governments can influence them through trade negotiations. These factors are: • Market access; • Trade preferences; and • Quality standards.

  10. Customs, TF and Transportation • The DTIS observed that there is: • Excessive delay in processing imports, exports and transit cargo; • The delay is caused by excessive documentation, duplicative and repeated checking. • Areas that need improvement include customs and import regulations, transit and tax payer customs relations. • Furthermore, it is noted that inadequate transport infrastructure is a constraint to Tanzania’s export competitiveness and commercialisation of agriculture. • The study identifies four areas for intervention, namely:- • Upgrading transport infrastructure particularly railways and feeder roads; • Human resource development in logistics, clearing and forwarding; • Strengthening public-private sector partnership in transportation, trade facilitation, transit and border crossings; • Formulating and implementing a transport sector reform programme including review of the legal and regulatory framework and procedures that impede trade.

  11. Private Sector Involvement • DTIS development has included the private sectors participation • Private Sector Development Strategy(PSDS) formulated to provide a comprehensive and holistic framework for transformation: Strategy includes: • Review and consideration of measures relating to the investment climate including the macro-economic framework and legal and regulatory reforms; • The IF process contributed to the initiation of the Business Environment Strengthening in Tanzania(BEST) Programme in 2003 • Development of adequate hard and soft infrastructure including finance and ICT capabilities and capacities.

  12. ACTION MATRIX AND DEVELOPMENT OF BUDGETED WORK PLANS • The essence of DTIS approach is the translation of the recommendations given in each section of the report into an Action Matrix that will become the basis of budgeted action plans for implementation. • The activities in the Action Plan Matrix constitute potential work-plans and projects to address the mitigating constraints identified in the diagnosis including those related to TF. • Some of these activities can be implemented through policy realignment and rationalization. However, most of the recommendations require considerable outlay of financial and technical resources that will have to be raised from either the Government’s budget and/or development partner support.

  13. In principle, policy measures require minimal financial resources as their implementation largely depends on commitment to good economic governance. However, intervention instruments such as institutional capacity building, infrastructure development, research and extension services; training and skills acquisition require substantial technical and financial resources. • Agreement on priorities and sequencing of implementation in TZ is already done. • NIU established under EIF to proceed to coordinate the process of designing programmes and projects to facilitate actual implementation.

  14. DTIS Implementation through Tanzania Trade Integration Strategy, 2009-2013 Framework Programme (TTIS) • An implementation strategy based on the DTIS was developed and in March 2008 it was endorsed by the GoT, DPs and the Private Sector. • A mapping of all ongoing and planned trade-related projects and programmes and a so called gap analysis (basically an update of the DTIS).

  15. Purpose of TTIS • To provide a single framework for strengthening ownership of trade development by Tanzania, including basic principles for making export trade a main driver of growth and for improving effectiveness and coordination of trade-related support. • The rationale for this attempt should be understood in the context of the objectives of IF and the fact that Tanzania receives a multitude of trade-related support, be it bilaterally, multilaterally, through national or regional/global interventions. MITM is seeking endorsement of this notion of a single framework from all concerned DPs and the private sector and it is planned to be effected through signing of a Memorandum of Understanding (MoU). • To provide an overview of current development needs within trade and current and planned interventions. Moreover to outline possible areas of interventions that are not addressed or insufficiently addressed, foremost regarding capacity development of important trade support institutions. This outline is presently further developed and refined into a Programme Document and envisioned to be financed through a multi-donor basket arrangement.

  16. TTIS Coordination and Governance • National Steering Committee for TTIS was inaugurated in May 2008; • Trade Policy Analysts (basically TTIS focal points) have been appointed in relevant Ministries, Departments and Agencies (MDAs) and familiarisation workshops held; • A TTIS Coordination Arrangement has been established in MITM and appropriate HR and technical resources are in progress to be established; • The signing of MoU (between GoT, DPs and the private sector) took place on 15th May, 2009 at MITM as a recognition and importance of TTIS as single framework for trade-related activities in Tanzania. • Sectoral Trade Policy Analysts and representatives of implementing organisations will, as applicable and with facilitation by the Coordination office, form sub - Technical Committees. • Consequently, a committee of SPS has been appointed • Other Committees such as TF

  17. The planned multi-donor basket funded programme (TTIS Basket Fund) • MITM together with DPs and the private sector and associations are now developing a separate Programme Document for the interventions which are planned to be financed by a multi-donor basket. • The target group of this multi-donor funded capacity building programme will in large be MITM and other concerned MDAs. • The TTIS addresses capacity gaps that have been identified, possibly financed through a multi-donor basket. • It is from this notion that project proposal (concept), including TF based on the current TF negotiations could be submitted in the format provided, to MITM.

  18. Conclusion • Needs and priorities identified under the TF should be seen in the broader context of planning, ie. under the DTIS; • Preparation of national budgets has to incorporate budgets for TF measures (whether locally or externally funded). Costs analysis has to be done under the technical commitees to facilitate budgeting of the same. • Framework for donors to give TF funds should not be divorced from the national one, eg TTIS in Tz in order to create ownership; • Donor partners should come forth to support the projects under TF in order for Members to indicate their TF Implementation Plans.

  19. THANK YOU Mr. Lucas N. Saronga, Minister Plenipotentiary, Tanzania Mission, Geneva. Tel: +41 22 909 10 81 Fax: +41 22 732 82 55 Mob: +41 78 91 84 209 E-mail: lsaronga@yahoo.co.uk

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