WT/TPR/S/384 • Tanzania - 237 - ANNEX 4 TANZANIA WT/TPR/S/384 • Tanzania - 238 - CONTENTS 1 ECONOMIC ENVIRONMENT ...................................................................................... 243 1.1 Main Features of the Economy ................................................................................... 243 1.2 Recent Economic Developments ................................................................................. 243 1.2.1 Monetary policy ..................................................................................................... 246 1.2.2 Fiscal policy .......................................................................................................... 246 1.3 Developments in Trade and Investment ...................................................................... 247 1.3.1 Trends and patterns in merchandise and services trade .............................................. 247 1.3.1.1 Merchandise trade ............................................................................................... 247 1.3.1.2 Services trade .................................................................................................... 250 1.3.2 Trends and patterns in FDI ..................................................................................... 251 2 TRADE AND INVESTMENT REGIMES......................................................................... 253 2.1 General Framework .................................................................................................. 253 2.2 Trade Policy Formulation and Objectives ...................................................................... 254 2.2.1 Private sector involvement ...................................................................................... 255 2.3 Trade Agreements and Arrangements ......................................................................... 256 2.3.1 WTO .................................................................................................................... 256 2.3.2 Regional and preferential agreements ...................................................................... 257 2.4 Investment Regime .................................................................................................. 257 2.4.1 Overview .............................................................................................................. 258 2.4.2 Investment restrictions ........................................................................................... 259 2.4.3 Incentives and promotion ....................................................................................... 259 2.4.4 Special Economic Zones (SEZs) and Export Processing Zones (EPZs) ........................... 261 2.4.5 Business environment and taxation .......................................................................... 264 3 TRADE POLICIES AND PRACTICES BY MEASURE ...................................................... 267 3.1 Measures Directly Affecting Imports ............................................................................ 267 3.1.1 Customs procedures, valuation, and requirements ..................................................... 267 3.1.1.1 Customs valuation .............................................................................................. 269 3.1.2 Rules of origin ....................................................................................................... 269 3.1.3 Tariffs .................................................................................................................. 269 3.1.4 Other charges affecting imports ............................................................................... 270 3.1.4.1 VAT ................................................................................................................... 271 3.1.4.2 Excise ................................................................................................................ 272 3.1.5 Import prohibitions, restrictions, and licensing .......................................................... 274 3.1.6 Anti-dumping, countervailing, and safeguard measures .............................................. 275 3.1.7 Other measures affecting imports ............................................................................ 275 3.2 Measures Directly Affecting Exports ............................................................................ 276 3.2.1 Customs procedures and requirements ..................................................................... 276 3.2.2 Taxes, charges, and levies ...................................................................................... 276 3.2.3 Export prohibitions, restrictions, and licensing ........................................................... 276 WT/TPR/S/384 • Tanzania - 239 - 3.2.4 Export support and promotion ................................................................................. 278 3.2.5 Export finance, insurance, and guarantees ................................................................ 279 3.2.5.1 Finance and insurance ......................................................................................... 279 3.2.5.2 Guarantees ........................................................................................................ 279 3.3 Measures Affecting Production and Trade ..................................................................... 279 3.3.1 Incentives ............................................................................................................. 279 3.3.2 Standards and other technical requirements ............................................................. 280 3.3.3 Sanitary and phytosanitary requirements .................................................................. 281 3.3.4 Competition policy and price controls ....................................................................... 282 3.3.4.1 Competition ....................................................................................................... 282 3.3.4.2 Price controls...................................................................................................... 283 3.3.5 State trading, SOEs, and privatization ...................................................................... 283 3.3.5.1 State trading ...................................................................................................... 283 3.3.5.2 Privatization ....................................................................................................... 284 3.3.5.3 State-owned enterprises (SOEs) ........................................................................... 284 3.3.6 Government procurement ....................................................................................... 284 3.3.7 Intellectual property rights ...................................................................................... 286 4 TRADE POLICIES BY SECTOR ................................................................................... 289 4.1 Agriculture, Forestry, and Fisheries ............................................................................. 289 4.1.1 Agriculture ............................................................................................................ 289 4.1.1.1 Production ......................................................................................................... 289 4.1.1.2 Trade ................................................................................................................ 291 4.1.1.3 Policy ................................................................................................................ 293 4.1.1.3.1 Overview ........................................................................................................ 293 4.1.1.3.2 Taxation.......................................................................................................... 294 4.1.1.3.3 Support programmes and initiatives ................................................................... 295 4.1.1.3.4 Marketing boards ............................................................................................. 297 4.1.1.4 Major agricultural subsectors ................................................................................ 298 4.1.1.4.1 Cashew nuts .................................................................................................... 298 4.1.1.4.2 Livestock ......................................................................................................... 300 4.1.1.4.3 Cloves ............................................................................................................ 302 4.1.2 Forestry ................................................................................................................ 302 4.1.3 Fisheries ............................................................................................................... 306 4.1.3.1 Framework and fisheries management................................................................... 306 4.1.3.2 Production and trade ........................................................................................... 308 4.2 Mining and Energy .................................................................................................... 309 4.2.1 Mining .................................................................................................................. 309 4.2.1.1 Developments .................................................................................................... 310 4.2.1.2