A study of Tanzania’s multiple memberships in recs and its implication for trade: a case of SADC and EAC regional blocks

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Date
2012
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Publisher
University of Dar es Salaam
Abstract
This study analyses Tanzania multiple memberships in the Regional Integration and its implication for Trade with its two major trading blocks of Southern African Development Community (SADC) and East African Community (EAC) using trade indices of revealed comparative advantage and intra industry trade data of 2009 and 2010. The results shows that the index of export intensity for world market is greater than one for meat, fish products and cereals implying that Tanzania exports more to the world market than to the EAC and SADC and its trade with EAC is growing in agricultural food stuffs (milk, tobacco, sugar, glass, fish, pepper and coconuts), textiles and minerals. The study has revealed that Tanzanian trade is overly dependent on a narrow range of primary products such as cotton, coffee, tobacco tea and minerals. There are many challenges including poor condition of trade related infrastructure, burdensome customs, and non tariff barriers as the major culprits behind the slow progress in boosting intra EAC trade and the region at large. This study recommends that several policy issues have to be addressed in order to put both EAC and SADC on firmer footing and corrects the poor regional integration record of the past. The wars and conflicts in a number of African regions (e.g. South Sudan), which have devastated transport networks and other basic infrastructure need to be peacefully resolved. Overlapping memberships of competing groups should be resolved to allow a clear political commitment to particular country groupings. This can be resolved if the there is a conclusion on the tripartite negotiations aimed at harmonizing problems of different blocks.
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Available in print form
Keywords
Regional Economic integration, International economic integration, Southern Africa Development Community, East Africa Community, Tanzania
Citation
Priscus, D (2012) A study of Tanzania’s multiple memberships in recs and its implication for trade: a case of SADC and EAC regional blocks, Master dissertation, University of Dar es Salaam (Available at http://41.86.178.3/internetserver3.1.2/detail.aspx)