University of Dar es Salaam Business School

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The significance of African growth and opportunity ACT (AGOA) on Tanzania trade performance for the period of 2001-2005: the case of Tanzania Mainland
(University of Dar es Salaam, 2005) Njau, Cecylia Hipolity
In 2002, Tanzania joined the GSP of the United State of America called AGOA which was enacted under the AGOA Acceleration Act of 2000. AGOA offers duty free and quota free market access for 6700 products from Sub-Saharan African (SSA) countries. In addition, since the country joined AGOA-GSP Framework, her trade performance in comparison with other SSA countires has not been impressive in utilizing such preference. Therefore, this study examines the significance of AGOA on Tanzania’s trade performance for the period of 2001 to 2005, and examine whether such bilateral trade presents an opportunity for Tanzania’s exports to United States of America (USA). However, the findings of this study revealed that the country has not well utilized this opportunity in addressing her trade development in comparison with other SSA countries like Kenya, Lesotho and South Africa. In that regard, AGOA appears to be significance for Tanzania trade performance as hypothesized. In order for Tanzania to utilize the opportunities emanates from multilateral trading system it has to address the supply-side constraints make reforms in its institution framework and the issue of legal and regulatory framework.