Will Tanzania benefit from the East Africa customs union?

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University of Dar es Salaam
This study focuses on the implications of the EAC-CU in the Tanzanian perspectives. In view of the importance of trade to economic development, this study provides a cost benefit analysis of Tanzania's participation in the revived East African community specifically, the EAC-CU within the context of the fast-tracking to the proposed East African Federation by 1212. The study dwells on how Tanzania will maximize the benefit of its EAC-CU membership and at the same time minimize the negative consequences resulting from the same in the short run as well as long run. The study used mainly desk research for purpose of data collection and fact-finding. Interviews with government officials responsible with the EAC-CU, Export producers, business leaders and ordinary citizens were also conducted in order to get the real feelings from stakeholders. We also used Macroeconomics assumptions and computer- based spreadsheets for data analysis and trends forecast. The study analysed the tariff structure under the EAC-CU, trade flows and revenue implications resulting from CET as well as internal tariff elimination. The study concludes by giving the impacts, opportunities available, the challenges facing Tanzania and the foreseen threats to the Tanzania's businesses resulting from the country's participation in the EAC-CU. In general, the study found that EAC-CU has significant welfare benefits arising from grater competition, economies of scale and higher level of trade and investment. The study recommends that the EAC-CU be carefully crafted to avoid imbalances, as it was the core cause of the collapse of the 1967 EAC.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark THS EAF HJ7390.T34S7 ( )
Customs administration, Customs Union, East Africa
Suleiman, H.B (2007) Will Tanzania benefit from the East Africa customs union?Master dissertation, University of Dar es Salaam, Dar es Salaam.