Tanzania Report, Dar-Es-Salaam, Tanzania - ILEAP

THE UNITED REPUBLIC OF TANZANIA(MINISTRY OF INDUSTRIES & TRADE)WORLD TRADE ORGANISATION (WTO)PRE-CANCUN SENSATIZATION WORKSHOP DELIBERATIONSHELD ON 12 TH TO 13 TH AUGUST, 2003 AT ESRF CONFERENCE HALLFIRST DRAFT REPORTORGANISERS: ECONOMIC AND SOCIAL RESEARCH FOUNDATION51, UPOROTO/ALI HASSAN MWINYI RDP.O. BOX 31226, DAR ES SALAAMTANZANIAFINANCED BY: AFRICAN ECONOMIC RESEARCH CONSORTIUMINTERNATIONAL HOUSEP.O. BOX 62882, NAIROBIKENYAAUGUST 2003"Deliberations on WTO Pre-Cancun Sensatization Workshop" 0

4.4 TRADE RELATED INTELLECTUAL PROPERTY RIGHTS (TRIPS) .............................. 224.4.1 TRIPS AND PUBLIC HEALTH........................................................................................... 224.5 PLENARY DISCUSSIONS ON SELECT AGREEMENTS .................................................... 245.0 GROUP DISCUSSIONS..................................................................................................... 265.1 GROUP I: AGRICULTURE AND NON-AGRICULTURAL MARKET ACCESS (NAMA)265.2 GROUP II: GATS and TRADE IN SERVICES ....................................................................... 265.3 GROUP III: TRIPS AND SINGAPORE ISSUES..................................................................... 275.4 GROUP IV: CROSS CUTTING ISSUES .................................................................................. 28CHAPTER IV................................................................................................................................. 316.0 FINDINGS, CONCLUSIONS AND RECOMMENDATIONS .............................................. 316.1 MINISTERS RESPONSE TO WORKSHOP DELIBERATIONS.......................................... 316.2 CHAIRMAN’S SUMMARY AND CLOSING REMARKS..................................................... 316.3 SUMMING UP OF GROUP DISCUSSIONS............................................................................ 326.4 CLOSING CEREMONY............................................................................................................. 336.5 SOME SELECTED RECOMMENDATIONS FOR THE TANZANIA DELEGATIONATTENDING THE WTO 5 TH MINISTERIAL CONFERENCE IN CANCUN................................... 33ANNEXTURES.............................................................................................................................. 35MINISTER SPEECH...................................................................................................................... 35RESOURCE PERSONS AND RESPECTIVE AREAS COVERED .............................................. 35LIST OF PARTICIPANTS AND OTHER INVITED GUESTS ....................................................... 36TYPICAL ACP, AU COMMON POSITION FORMATS/SAMPLES.............................................. 39"Deliberations on WTO Pre-Cancun Sensatization Workshop" 2

ABBREVIATIONSWTO - World Trade Order (organization)IMF - International Monetary FundITO - International Trade Organisation (predecessor to WTO)GATT - General Agreement on Tariffs and TradeTRIPS - Trade Related Intellectual Property rightsTBT - agreement on Technical Barriers to Trade TBTAoA - Agreement on AgricultureASCM - Agreement on Subsidies and Countervailing MeasuresSPS - Agreement on Application of Sanitary and Phytosanitary MeasuresCTE - Committee on trade and EnvironmentMEAs - Multilateral Environment AgreementsPVP - Plant Variety ProtectionMFN - Most Favoured Nations (is a mode of treatment or recognition)GATS - General Agreement on Trade in ServicesLDCs - Least Developing CountriesVISA-ED - Employees of foreign country working in another territoryFDI - Foreign Direct Investment flows?}OECD -GDP - Gross Domestic ProductsUNCTAD - United Nations Conference on Trade and DevelopmentAU - African Union/UnityACP - African, Caribbean and Pacific StatesS&D - Special and Differential treatment measuresWIPO - World Intellectual Property OrganisationR&D - Research and DevelopmentHIV/AIDS -JITAP - Joint Integrated Technical Assistance ProgrammeMTS - Multilateral Trading SystemsIITC - Inter Institutional Technical CommitteeIP - Intellectual PropertyGMOs - Genetically Modified OrganismsEU - European Union (also refer EC-European Community)NT - National TreatmentTA - Technical Assistance (for capacity building)GSP - Generalised System of Preferences (proposed by UNCTAD)TRIMS - Trade Related Investment MeasuresAVEs - ad Valorem equivalentsVERs - Voluntary Export RestrictionsAMS - Aggregate Measurement of SupportEAC - East African CommunitySADC - Southern African Development CommunityNBAC - National Biotechnology CommitteeLMOs - Living Modified Organisms"Deliberations on WTO Pre-Cancun Sensatization Workshop" 3

AKNOWLEDGEMENTThe Economic and Social Research Foundation (ESRF) was honoured to coordinate preparations of anational workshop hosted in Tanzania, in the context of the African Imperatives in the New World TradeOrder, in accordance with the terms of Reference (TOR) received from the African Economic ResearchConsortium (AERC) a collaborating institution to ESRF. AERC has been wholly and fully responsible notonly for its initiatives but for providing the requisite financial support to ESRF who were then able to host anational "WTO Pre-Cancun Sensitisation workshop" which brought together: Trade policy makinginstitutions from the public, private sectors as well as CSO Stakeholders including the academia andResearch institutions. Dr. Flora Musonda would like to sincerely thank AERC for their timely supportiveefforts especially Prof. William Lyakurwa, The Executive Director.Again the foundation is grateful to the entire ministry's top officials especially Mr. A.R. Ngemera for histotal devotion towards ensuring that the workshop was successful and lived up to its expectations. Wethank them all for their total commitment and good work. All those who were directly and indirectlyinvolved in staging this workshop, we say, thank you all."Deliberations on WTO Pre-Cancun Sensatization Workshop" 4

TERMS OF REFERENCE (TOR)"The overall purpose of this contract is to work on the national pre-Cancun trade networking.‣ Consolidate the network of local institutions and individuals involved in trade policy/tradenegotiations; including the compilation of a database.‣ Work with the relevant country authorities to determine areas where an additional AERC funded studycan be commissioned in the short term develop the terms of reference for such a study and togetherwith the country authorities select the authors.‣ Help with the preliminary planning of a national trade policy seminar to be held between June - August2003.‣ Submit the report on all the above latest 13, 2003.The funds will be expended in accordance with the Budget in Attachment1.""Deliberations on WTO Pre-Cancun Sensatization Workshop" 5

CHAPTER I1.0 INTRODUCTORY BACKGROUNDThe Economic and Social Research Foundation (ESRF) is an independent, not-for-profit nongovernmentalresearch institute, in Tanzania established in April 1993. Its creation was in response to theneed to developing institutional capacity in Tanzania for policy analysis development management studiesin economic and social policies.1.1 WTO PRE-CANCUN SENSATIZATION WORKSHOP PLANNEDThe Foundation has established collaborative efforts with local, regional and internationalUniversities, research Institutions, Government as well as private sector client associations. It wasthrough this collaborative efforts that (AERC) African Economic Research Consortium havejointly Teamed up in co-coordinating preparations of a national workshop (hosted in Tanzania) forthe sensatization of Delegates and the public at large to the WTO Pre-Cancun “5 th TradeMinisterial Conference scheduled to take place from 10 th – 14 th September 2003.1.1.1 Main Objective for hosting the WTO Pre-Cancun Sensitization Workshop:The (AERC) African Economic Research Consortium has more or less similar aims andobjectives, as those championed by ESRF. In view of the current New World Trade Order (WTO)working calender to host an International Forum later in September 2003 bringing all TradeMinisters African States together the AERC thought best to sensitize not only the would beDelegates to the forthcoming conference but create awareness by involving all interested partiesand especially the stakeholders to this August International deliberations.To bring this into reality the AERC commissioned ESRF to hosting the sensitization activities forthe Tanzania public and private sector stakeholders. For this purpose AERC provided:• Sufficient funds for hosting a two days 40-55 participants workshop• Provision of adequate funds to a Senior Research Fellow who would accompany theTanzania government’s delegation to Cancun, Mexico to provide the essential necessarybackstopping consultative advice.• ESRF has to conform to the TOR as stipulated in AERC letter 21/5/2003.1.1.2 Resource person choices and penitent issues for WTO AgendaESRF contacted the lead ministry of Industries and Trade to give their clearances forcommencement of the workshop preparations. A coordinating Team was picked and havingidentified key sector ministries, private sector, institutions including CSO, a comprehensive list of55 persons were invited to the workshop on 12 th and 13 th August, 2003. there were seven paperspresented from six resource persons.1.2 OPENING CEREMONYThe Facilitator and Ag. Executive Director of ESRF, Dr. Flora Musonda, welcomed participants andintroduced the Chairman of the Workshop, Mr. Ahmad R. Ngemera, Permanent Secretary, Ministry ofIndustry and Trade and Prof. William Lyakurwa, the Director of AERC, Nairobi, the financier of theWorkshop, and Prof Samuel Wangwe, former Executive Director of ESRF one of the resource persons.1.2.1 Welcoming Remarks: Dr. Flora Musonda, Ag. Executive Director, ESRF"Deliberations on WTO Pre-Cancun Sensatization Workshop" 6

• The WTO has a wider coverage than its predecessor the GATT;• Increased international trade is good for growth and poverty reduction;• Transparency is the key word at the international and national level in all spheres of life, andindeed in Trade Negotiation be it at bilateral or multilateral levels.The Minister stated that it is Government policy to create an enabling environment and in this instanceworking with the private sector in policy formulation serves as a clear example. Further Government hasstarted working with the private sector on capacity building on trade agenda. In OECD, it is the privatesector that influences their Governments on international trade negotiations. The opposite is largely thecase in developing countries. Hence the need for rapid capacity building to change the current situation isparamount, critical and very important indeed!Globalization is a reality and is here to stay. The WTO can influence the way that developing countries canbenefit from the MTS. The Cancun meeting is stocktaking process of the Doha Development Round whichhas to be completed in early 2005. The objective is to identify key areas, identify areas of agreementand/or disagreements and find ways on how to move forward quickly and positively.Eight areas of negotiations are covered in an agreement that have to be concluded by January 2005 as partof the single undertaking principle. Negotiations are likely to start also on the Singapore issues after theCancun Ministerial. The pressure to start negotiations is immense but the developing nations are not readyto widen the agenda on MTNs at this point and are calling for further clarification of the implications ofnegotiations as well as reducing the bulk of negotiation issues currently underway.Decision making in the WTO is based on consensus building and the developing countries use the strategyof consolidating group position as the basic negotiating tactic. A major example is the initiative throughthe LDCs in Zanzibar in 2001 and more recently in Dhaka in 2003. The AU and ACP Ministers of Tradehave come up with similar declarations.The stakes are high for African as well as other developing countries like:-i. Agriculture (AoA)ii. Servicesiii. Non Agricultural Market Accessiv. TRIPS and public healthv. Singapore issuesvi. Special & Differential Treatmentvii. Implementation related issuesviii. Capacity Building and TRTAix. Transparency and inclusiveness in WTO negotiationsx. WTO rules and procedures.Negotiation positions on these issues have been drawn up in the various negotiating groups. Thedeveloping countries should not be asked to exercise more flexibility than they have undertaken so far, asthis could lead to the breaking of their ranks.International trade is good for a number of reasons but the primary determination of the benefits from tradeis determined at the national level: what you do is what you get. International trade environment is highlydistorted by the actions of the major developing countries such as the agricultural subsidies. The rulesbased system is useful for the small countries like Tanzania that can not influence a world trade system on abilateral basis.Finally, the Minister welcomed participants to speak out and advise the Government on how to handle thenegotiations processes on the WTO so that the broad majority of Tanzanians can benefit from theopportunities emerging from the Multilateral Trading System. The MIT look forward to receiving andusing the valuable views and comments emerging from the workshop in the course of the ongoingnegotiations."Deliberations on WTO Pre-Cancun Sensatization Workshop" 8

CHAPTER II2.0 OVERVIEW AND BACKGROUND PAPERS ON TRADE POLICY AND THEMULTILATERAL TRADING SYSEMThree papers with overall background information on trade policy, the WTO, and the JITAP Programmeaiming at creating awareness and capacity of the WTO system in developing countries were presented anddiscussed. These are:• The Institutional Framework Overview: Tanzania’s Trade Policy Making Process;• Progress on JITAP I and Perspectives on JITAP II; and• Overview and Legal Aspects of the WTO Agreements.2.1 “INSTITUTIONAL FRAMEWORK OVERVIEW: TANZANIA’S TRADE POLICY MAKINGPROCESS”Tanzania has made major strides in terms of developments in the area of the trade policy regime of recentand there are many unfolding initiatives taking place. For instance this pre-Cancun workshop is a first-timeinitiative and it is hoped that a debriefing workshop will be held to benefit from feedback on the results ofthe Cancun Ministerial. Likewise the LDCs preparatory Ministers of Trade Meeting held in Zanzibar priorto the Doha Ministerial in 2001 was also another first-time initiative that had a profound impact on theWTO negotiation processes. Prof Wangwe explained that his presentation is based on a papercommissioned by the AERC covering a number of African countries. The paper is still in draft form and itis envisaged that discussions on the same would contribute to enriching the paper.In principle, trade policy in Tanzania reflects the national orientation of trade overtime and the underlyingeconomic philosophy. Prior to 1967, Tanzania had a mixed economy and there was no clear policy in tradebut continuation of trends inherited from colonial era. The Arusha declaration had a major impact on thetrade regime, ushering in the confinement policy that had limited trading activities largely to the publicsector. Trade was modeled on the inward-looking development model, reinforced by the Basic IndustrialStrategy, placing emphasis on the development of internal trade. Until then there was neither a NationalTrade Policy in place let alone that trade policy which has had focus on export trade at international level.This regime saw exports as a peripheral activity and very little attention was accorded to ongoing tradenegotiations at the regional and international level.Trade liberalization commenced in 1984 by the easing up of restriction against imports and gradualencouragement of exports. It had remained difficult to develop exports in view of distortions in the macroeconomy and persistence of the anti-export bias. Institutions that were geared towards control of theeconomy have had to reorient towards facilitating an open economy either through extensive restructuringor even the establishment of totally new institutions. A typical example refers to the functional role andmandate of Bank of Tanzania over time. In the 1980s its mandate was primarily concerned with themanagement of import controls. Today this mandate has shifted drastically towards macro-economicpolicy management. This transformation imposes a major challenge on the institutional framework andprovides the perspective on which the paper examines the subject on hand.In this study, Wangwe and others, have taken an in-depth examination of eight issues:• Institutions and stakeholders;• Coordination and consultations;• Trade policy formulation;• Trade negotiations;• Trade policy implementation;• Trade policy assessment, review and monitoring;• Research and analytical support for trade policy; and• Information collection and dissemination."Deliberations on WTO Pre-Cancun Sensatization Workshop" 9

meetings remains weak. There is a perceived problem regarding the rationalization of different positionsthat may emerge from membership in several groups whose interests may conflict in certain instances.Furthermore our personnel’s’ in-depth wide knowledge and capability to negotiate variously in all differentforum is limited to only few skilled negotiators.2.1.5 Trade Policy Implementation.The paper notes that it is too early to comment on the implementation of this new policy and focusesinstead on the implementation of agreements negotiated at the regional and multilateral level and the needfor more effectiveness in this area in the future as very often negotiated agreements have to be aligned toour national domestic laws for smooth implementation and effectiveness.2.1.6 Trade Policy Assessment, Review and Monitoring.Given that implementation measures for the new policy are now being considered, no mechanism for tradepolicy assessment, review and monitoring is yet in place. There is need to put such a framework in placeand build the culture of undertaking regular assessment, review and monitoring of implementation as partof the process of effective feedback.2.1.7 Research and Analytical support for Trade Policy.Although there is substantial domestic research capability, its utilization is still on ad hoc basis based onspecific projects. There is need for regular planning and budgeting for the research function to addressissues on a continuous basis.2.1.8 Information CollectionLinked to lack of targeted research, is the lack of a rationalized databank on trade and statistics. Such adata bank is critical as the basis of policy assessment and review and more effective implementation.2.1.9 ConclusionAs reforms moved from getting prices rights to addressing development issues, trade is also facing achallenge. The current challenge is with regard to the role that trade should play in growth and in povertyeradication. These issues have been addressed in the National Trade Policy and the challenge is todisseminate the policy and roll off the implementation process.2.2 PROGRESS ON JITAP I AND PERSPECTIVES ON JITAP IIImplementation of the Joint Integrated Technical Assistance Programme started in 1998/99 as a pilotscheme in eight African countries, including Tanzania. The objective is capacity building to understand theWTO agreements and implement them. Phase I came to an end in December 2002 and Phase II willcommence in July 2003. Phase II will run for two years in countries that implemented JITAP I. JITAP IIalso extends to eight new countries in which implementation will take three years in countries that were notincluded in Phase I.The MIT is the focal point for implementation of JITAP in Tanzania. The primary implementationmechanism is the IITC with broad membership drawn from stakeholders in government, private sector andcivil society. The IITC functions through five subcommittees responsible for specific Agreements asfollows:• Subcommittee I: Agriculture• Subcommittee II: TRIPS and the Singapore Issues• Subcommittee III: GATS• Subcommittee IV: Agreements relating to all safeguard Measures provided for under theWTO• Subcommittee V: Agreements relating to Customs IssuesTanzania has decided to accord priority to the work of two Subcommittees: that on Agriculture and that onServices. These sub-committees have met several times and have implemented a number of initiatives."Deliberations on WTO Pre-Cancun Sensatization Workshop" 11

Initiatives on GATS achievements include formulating of positions on the many requests received in theservices sector in particular the Construction and Engineering sector by the US and the Chinesegovernments. The subcommittees have examined and analyzed these requests. Tanzania is also free toinitiate requests and make commitments on obligations in the area of opening up various sub-sectors.Tanzania has made only one commitment referring to opening up of investments in four star hotels andabove.There is increasing pressure for opening up in more areas. Tanzania has to consider opening up further in anumber of areas and this is the challenge before us. The IITC Subcommittee has come up with specificfindings and recommendations on further liberalization and the way forward rests on the specific sectorauthorities consulting within established mechanisms to reach decisions on what specific measures are tobe initiated between now up to the time when negotiations on GATS wind up on 31 st December, 2004.On Agriculture, Tanzania has commissioned one study which has come up with recommendations onproducts that the nation should prioritize and focus on in the context of three perspectives: products that canbe promoted internationally; need to make specific requests to the countries that are protecting theirproducts; and the need to protect products for which Tanzania has comparative advantages.Finally, the paper notes that the process of building capacity is still a relatively new and ongoing process.One of the needs for consolidating the process in Tanzania rests on institutionalization of the IITC and itssubcommittees. Tanzania has been able to lay the groundwork for implementing the WTO agreements andcan build on this foundation to move forward.2.3 OVERVIEW AND LEGAL ASPECTS OF THE WTO AGREEMENTS RULES ANDFORUMSThe paper provides the background to the establishment of the WTO as the institution that administers therules based MTS. The WTO has three basic objectives:• Removal of trade barriers;• Preventing discrimination among participants in the world trading system; and• Promoting amicable, rules based resolution of trade disputes.The paper highlights 7 out of the 29 agreements comprising the WTO agreements considered of priorityimportance to Tanzania:i. GATT 1994 – based on the original GATT agreement signed in 1947 which provides the basicrules and procedures for the WTO system. The basic rules being that of MFN obligations andnational treatment for all and emphasis increasing elimination on non-tariff barriers and increasingrecourse to tariff based policy instruments;ii. Agreement on Trade Related Intellectual Property (TRIPS);iii. Agreement on Technical Barriers to Trade (TBTs);iv. Agreement on Sanitary and Phytosanitary Measures (SPS);v. Agreement on Subsidies and Countervailing Measures (Subsidies Agreement);vi. Agreement on Agriculture; andvii. General Agreement on Trade in Services.These agreements sets the rules and framework for international trade relations. The paper alsodistinguishes the differences between GATT and WTO in the areas of product coverage, applicability ofrules and the issue of dispute settlement. GATT was flexible, did not have, binding rules and covered onlygoods and did not have effective dispute settlement mechanism. WTO coverage is inflexible, extendsbeyond goods to cover services and intellectual property and has rigorous dispute settlement mechanismthat requires specific expertise to use the opportunities provided by these forums. The paper brieflyreviewed some of the major and notable aspects of the seven agreements and their impact on developingcountries."Deliberations on WTO Pre-Cancun Sensatization Workshop" 12

Finally, the paper reviews the institutional structures of the WTO including the biennial Ministerial meetingand the General Council comprising of the members representatives in Geneva. The General Councilcommittees works through a number of specialized Council including the Council for Trade in Goods, theCouncil for Trade in Services, the Council on TRIPs and others. The presenter emphasized that informedknowledge of the agreements is critical to effective implementation and particularly identification of thechallenges and opportunities offered by the MTS and how a nation like Tanzania can benefit from thissystem.In his summing up remarks, the Chairman, emphasized the inevitability of the process of Globalization andthat the best thing to do at the national level is the organization of all stakeholders for more participation inthe system. It is useful that efforts are being made at the international level to adjust for anomalies thatprevail in the system so as to make it more beneficial to all through the Commission on the Social Impacton Globalization in which many eminent personalities are participating in that process.3.0 PLENARY DISCUSSIONS ON THE OVERVIEW SESSION3.1 CHAIRMAN’S SUMMARYThe Chairman summarized the presentations by highlighting pertinent issues emerging from the threepapers as follows:3.1.1 On Trade Policy Institutional Framework:o serious institutional weaknesses have been highlightedo There is low capacity on trade issues in the CSOs sector with limited participation in thetrade agendao Trade outposts at the international level in Tanzanian embassies abroad and within thedomestic environment at the regional/district level are also very weak on trade policy• Overview of the WTO Agreementso The paper highlights the importance of avoiding the extremist position of either aconformity position or confrontational one on WTO issues;o It highlights the major differences between the GATT and WTO and the binding natureof the latter; WTO agreements do have minimum of 3 years before any party may optout, hence great care must be exercised. Tanzania is well advised to play delay tactic soas to buy more time for both research and analysis work.o Notes the 5 basic principles upon which the WTO agreements operate including theMFN, National Treatment, Transparency, Dispute Settlement and Special andDifferential Treatment (S & DT) for LDCS;o The paper concludes that the agreements pose serious challenges as well as creatingtremendous opportunities and that it is necessary to understand them well so as to worktowards building on these opportunities;o For small countries like Tanzania, it is necessary to decide on priority areas and buildcapacities in select priorities for more effective participation and implementation of theagreements.• The Agreements pose a serious challenge as well as opportunities.3.1.2 Discussants Comments and Views.Participants raised several questions and highlighted the following issues in discussing the three over viewpapers.(a)Questions and issues of ConcernQ i. Participants wanted to know to what extent have Tanzanian institutions been able to alignthe national legal framework to conform with the WTO agreements."Deliberations on WTO Pre-Cancun Sensatization Workshop" 13

Ans:Q ii.Ans:The JITAP Coordinator confirmed that among major obligations emanating from theWTO agreements is that of rationalization of national laws and notification of the same.Whereas some rationalization of laws has taken place e.g. on Customs valuation and onSPS but no notification has taken place todate and it is necessary to change this situation.However the country has been realigning some of its domestic laws but has however notnotified the WTO on such activities, as it ought to be the case.With regard to Tanzania’s participation in a multiplicity of groups such as the LDCs, AUand ACP groups, how does the nation reconcile the differing positions that are bound toemerge from membership in such groups relative to conflicting interests that prevailbetween countries such as LDCs and non-LDCs?The Permanent Secretary, Ministry of Industry and Trade, who also chaired the workshopproceedings on the first day, responded to this question stating that the power andeffectiveness of small developing countries in negotiations in the WTO lies in thesolidarity of positions hammered out in negotiating blocks. In principle the positions ofsuch blocks as the EAC, SADC, AU, ACP, LDCs tend to converge in view of thesimilarity of major underlying problems. Todate, the three major developing countriesgroups i.e. AU, LDCs and ACP have been cooperating well and effectively, evidence ofwhich lies in the achievements of the Doha Ministerial Meeting of 2001. He emphasizedthat if advanced European countries find necessary to negotiate as a block in the WTO,the Developing countries have no choice but to negotiate through blocks and to align thepositions of the different blocks through a continuous process of consultations.Q iii.Ans:How does the Ministry of Industry and Trade perceive its evolving mission in the contextof the changing nature of the trade policy agenda and how does it intend to address thechallenge of establishing a comprehensive trade policy coordinating mechanism orinstitutional framework? How is the Ministry going to ensure that it performs the leadrole in the trade policy process and yet ensure effective linkage to sector policies in keyeconomic sectors such as agriculture and the natural resources? What initiatives arethere to launch an effective strategy of economic diplomacy based on the potentialprovided by Tanzania’s missions abroad?It was explained that the Ministry has been working on institutional reorientation aspreparations for the implementation of the National Trade Policy are underway, and that,this reorientation will address adequately the question of linkages between economicsectors and related institutions to MIT as being the lead ministry on trade agenda.Available information also shows that there are initiatives at the Ministry of ForeignAffairs and International Cooperation to focus increasingly on economic diplomacy.Q iv.Ans:Are LDCs involved in the development of WTO rules and procedures? Is there alearning curve for developing countries with respect to building capacity on the rules andprocedures that prevail in the WTO system and how best can one ensure that the processof learning and capacity building on rules and procedures does not take too long to theextent that proficiency is acquired when negotiations have been completed? How shoulda country like Tanzania handle the capacity building question effectively?The Permanent Secretary, Ministry of Trade, Industry, Marketing and Tourism, Zanzibar,noted that while addressing institutional weakness on WTO issues is important, Tanzaniashould engage seriously in participating in the WTO agenda even as the process ofcapacity building is ongoing. We must not stop negotiating while we are building upcapacity for the reason that we will be left behind and it will be difficult to catch up. Forthis reason, capacity building should focus on priority areas. Emphasis should be placed"Deliberations on WTO Pre-Cancun Sensatization Workshop" 14

on research capacity and training for analysis of WTO issues. Strategies should focus ondesired objectives and goals and identify ways of achieving them.Q v.Ans:Q vi.Ans:Q vii.Ans:Participants further noted that capacity for participation in trade negotiations in fieldoffices in Tanzanian Embassy, the solution lies in enhancing frequent links andcommunication with headquarters and pooling resources at the regional level e.g. EAC,SADC and LDCs etc.. Further suggested that Tanzania can improve her performance onnegotiation and implementation of international trade agreements if we build the cultureof reporting back on events in which Tanzania is represented to various stakeholders as away of ensuring more effective implementation.Finally, noted the existence of a serious misconception that all issues involved in theWTO agenda are difficult and require formal training for analysis through capacitybuilding. It is true that there are elements, such as the application of the various formulaethat are involved in tariff negotiations that require more formal training and capacitybuilding. However, in many areas, the requisite capacity can be achieved throughrigorous reading of the agreements and related literature that is available.Can JITAP or any other programme help in addressing the observed weaknesses of CSOson the trade agenda? From a different perspective, why should CSOs go for training soas to participate in negotiations within a system that is of little benefit to developingcountries. Who is training who and for what purpose?The Country Manager for the Tanzania Trade and Poverty Programme (TTPP) explainedthat TTPP, supported by DFID, is a three year programme whose implementation startedin April 2003 and it has resources to address some of the capacity building needs ofCSOs as well as the overall private sector. The Offices of the Country Manager arelocated within the offices of Ernst & Young at Utalii House.It is known that the primary problem in the LDCs is poverty. Why should LDCs engagein negotiations to address a problem, which they already know as not basic ones? Also,even if they must negotiate, the Government should team up with the private sector andCSOs to build a solid team that can ensure the achievement of our objectives as a Nation.In addition, is it possible for our agenda to include issue of the worsening terms of tradeand treat these as part of the negotiations in the WTO?With respect to those who contemplate withdrawal from the WTO system, the counterquestion is what alternatives are there. If countries like Tanzania are alreadyexperiencing serious problems in negotiating with the major economic power blocks i.e.US, EU and Japan but do manage to secure concessions after a hard struggle, is itpossible for individual countries like Tanzania to do better in lone negotiations. TheWTO system is a necessity and the issue is not withdrawing from it but how torestructure it to serve better and more equitably the interests of all nations, includingthose of the developing countries.The representative from TPRI reported that new SPS requirements and standards in theEU on Minimum Residual Levels (MRL) are imposing a formidable challenge to exportsof horticultural products and food products. The new requirements include rigorousprocedures for verification and certification including 100% checks while there is little orno capacity for undertaking this in terms of equipment and technical staff. Problem of100% check up and problems of capacity building to handle this. There is need toconsider how to build capacity to address these emerging concerns on an urgent basis andTPRI needs support in this area. Further, the issue of building capacity to conform tostandards based on traceability of food products “from the farm to the table” and itsimplications on the budding horticultural sector was noted and ways would have to befound to address the underlying capacity concerns."Deliberations on WTO Pre-Cancun Sensatization Workshop" 15

TBS noted that the issue of capacity building on SPS standards should be addressedsimultaneously with that of the status of accreditation. Tanzania should address the issueof the accreditation status of its testing and certification facilities on SPS standards forproducts of priority consideration.viii.With respect to the concerns raised by TPRI and TANEXA, it was noted that traderelated technical assistance for LDCs includes provision for capacity building support inmeeting new SPS and TBTs standards conformity requirements.TANEXA reported that they are implementing initiatives to kick-start exports ofhorticultural produce that include ongoing participation in the Rostoc Trade Fair and thatthe problems on capacity to comply with new SPS standards could spell the prematuredoom of the emerging sector. It is important that a solution to the problem raised byTPRI is found and applied as a matter or urgency.Representatives from MIT informed participants of trade related technical assistance(TRTA) supported initiatives to address the issue of standards including programmessuch as DANIDA’s Market Access Programme which includes a sub-component onlaboratory accreditation, and other initiatives by USAID and Sida targeting to identifyareas of potential intervention. A more daunting element is finding an appropriate andadequate response to the issue of product traceability if Tanzania is to take advantage ofthe potential of product diversification oriented towards food crops.CHAPTER III4.0 PRESENTATIONS ON SELECT WTO AGREEMENTS4.1 “TRADE IN SERVICES: LEGAL ISSUES AND AGREEMENTS” IMPLICATIONS FORLDCS DEVELOPMENTThe paper was presented in four major sections:• Definition, scope and coverage• Role of services in the economy• The Development dimension• The Way forward4.1.1 The Concept of ServicesServices are defined from two perspectives. On one hand there is the sectoral approach which includessub-sectors such as:• Engineering, environmental and management consulting,• Financial services,• Information technology,• Telecommunications,• Tourism services etc.On the other hand, there is the approach based on mode of delivery of which the WTO identifies themunder four categories namely:-.:• Cross-border services: where a service crosses a national frontier• Services consumed abroad: when the consumer travels to the territory service supplier: Touristsfor both Kenya and Tanzania respectively• Services provided through commercial presence in the destination market: inform of FDI e.g.foreign bank establishes a branch or subsidiary in the territory of a country."Deliberations on WTO Pre-Cancun Sensatization Workshop" 16

• Services provided through movement of natural persons across borders for employees ofmultinational firms temporarily move to another country.4.1.2 Role of Services in the EconomyServices provide new potential for trade development and expansion for many small developing countries.Trade in services has been growing quite rapidly and has reached a value of about 25% of the value of tradein goods. Tourism is a major services sector with high potential in many developing countries whilerevenue for transit trade is important to littoral states that serve a number of landlocked states likeTanzania. Services contribution to GDP is in the range of 50% for many African countries (40% inUganda, 56% in Zambia and 33% in Tanzania) compared with a much higher proportion in the developingcountries where for instance in the US services account for about 80% of GDP.4.1.3 GATS and the Priorities of Developing CountriesWTO members are expected to lower barriers against foreign services providers on the basis of the MFNand National Treatment principles in trade in services. Pressure is mounting for developing countries toliberalize their services sectors. There is a perception that conformity to the development interests ofAfrica calls for liberalization in Agriculture, the sector in which Africa primary interests lie, rather thanservices, where supply capacity constraints constrains African potential for benefiting from the unfoldingreforms.4.1.4 The Way ForwardGATS recognizes the priorities of development of objectives and the primacy of national policy, objectives,laws an deregulation. Developing countries have to strive for progressive liberalization and promotion andfacilitation in trade in services by the developed countries through Technical Assistance in sectors andmodes of export interest to them, such as the mode based on movement of natural persons. It is alsoimportant to bear in mind the need for putting in place effective regulatory frameworks as liberalizationdeepens. Two measures have be prioritized prior to further liberalization• Undertaking of impact evaluation assessment studies on effect of past liberalization and thedirection of new initiatives;• Utilization of credit for autonomous liberalization already undertaken in past as part of futureliberalization; and• Consider need for special treatment of LDCs4.2 MULTILATERAL TRADE NEGOTIATIONS - THE SINGAPORE/NEW ISSUESThe presentation covered the four Singapore issues, first introduced into the WTO working groups agendaduring the First WTO Ministerial Meeting held in Singapore in 1996. It was then resolved to establishWorking Groups to examine the issues involved in the four issues of concern, the issues of concern tovarious parties and modalities of negotiations including the areas to covered in potential WTO agreements.Working groups were established in 1997 for the four issues i.e.:i. Trade and investment;ii. Trade Facilitation;iii. Trade and competition; andiv. Government procurement.Discussions in Geneva, on these issues, are based on the mandate given during the Doha MinisterialCouncil, to work out modalities that will be considered by the Cancun Ministerial as the basis of an explicitdecision on whether to start negotiations on any or all of them or not. The presentation reviewed the stateof play and position of developing countries, including Tanzania, on these issues.4.2.1 Government Procurement(a) Situation Analysis: Tanzania is not a party to the current agreement on Governmentprocurement, because it is not part of the single-undertaking commitment but is based on the"Deliberations on WTO Pre-Cancun Sensatization Workshop" 17

(b)(c)plurilateral approach which means that only nations that are willing to sign the agreement doso.State of Preparations: While the industrialized countries would like to make the mainprinciples of the WTO agreements i.e. Most Favoured Nation (MFN) and NT (NationalTreatment) as well transparency applicable to all Singapore issues, the developing countriesincluding Tanzania would prefer to limit the application of WTO discipline to that oftransparency. Opening up this area to all WTO disciplines would be detrimental todeveloping countries in terms of opening up the smaller procurement opportunities to foreigncompetition while the domestic private sector is still weak and nascent.Position in Cancun and Beyond: Tanzania and the developing countries groups throughwhich negotiations are undertaken should stand firm on postponing negotiations further on allSingapore issues. Once negotiations start, they should limit the application of WTOdisciplines on Government Procurement to transparency only.4.2.2 Trade Facilitation(a) Situation Analysis: the objective within the WTO is to streamline and rationalize customsprocedures resting on institution of automated procedures and valuation practices. Thisrequires massive improvements for modernization of infrastructure facilities including themulti-modal transport systems, ports and other supporting facilities. This move wouldundoubtedly involve huge investments in infrastructures.(b) State of Negotiations: Industrialised countries are working for bundling of Singapore issuesand application of all WTO disciplines. On Trade facilitation the emphasis is ontransparency, simplification, efficiency and non-discrimination. Developing countries arewary that this could lead to a situation where they could be penalized through the DisputeSettlement Mechanisms for problems that relate to the quality of their infrastructure.Developing countries call for continued study of these issues and addressing the limitations ofcapacity on their side through Technical Assistance (TA) and Capacity Building (CB).Technical assistance should, among other things support the reform and upgrading ofadministrative capacities.(c) Position in Cancun and Beyond: Acknowledge benefits of trade facilitation but stress oncontinuing the studies of working groups. When and if negotiations start, then ensure that theapplication of WTO rules will not exceed the implementation capacities of developingcountries and they will not be exposed to dispute settlement by default.4.2.3 Competition Policy and Law(a) Situation Analysis(b) State of Preparations(c) Position in Cancun and BeyondWith respect to Competition Policy and Law, the objective is to put in place a policy that deals with anticompetitivepractices of firms such as cartels, abuses of dominant policy and anti-competitive mergers.Tanzania has updated its Fair Competition Act, 2003, to take into consideration the obligations relating tomembership in the EAC and the WTO. Current measures at the Working Group level is to clarify on: “ thecore principles including, transparency, non-discrimination and procedural fairness, and provisions onhardcore cartels; modalities for voluntary cooperation; and support for progressive reinforcement ofcompetition institutions in developing countries through capacity building.”4.2.4 Trade and Investment(a) Situation Analysis: The working group is focusing on issues such as scope and definition ofinvestment, issues of transparency and applicability of other principles i.e. MFN and NT.Investment is a critical area to developing countries in terms of allowing for specific nationalpolicies to stimulate growth and investments. The developing countries would not like to seethe WTO rules on MFN and NT enforced in this area in view of the wide gap oncompetitiveness between the developed and developing countries."Deliberations on WTO Pre-Cancun Sensatization Workshop" 18

(b)(c)State of Preparations: The Developed countries would like to see all WTO disciplinesapplied. Tanzania is negotiating through three developing country groups i.e. AU, LDCs andACP. All of them have reached consensus on the major issues as follows: Continue thepreparatory work in the Working Groups; Limit scope to coverage of FDI when negotiationsdo start (exclude portfolio investment, loans and credit and other funds or assets). AvoidMFN and NT and limit transparency to provision of information on policy on FDI.Developing countries should have the freedom to differentiate between national and foreigninvestment and give preference to investments from particular countries based on pastexperience and linkages and perceptions of future cooperation.Position in Cancun: Continue the process of working groups to develop modalities and aframework of negotiations that makes it clear the issues that will be negotiated. Developingcountries should not be required to make pre-establishment commitments and should havethe freedom to make their own autonomous decision on investment with no restriction ontheir applying performance requirements, including flexibility in the use of domestic contentrequirement for development policy reasons.4.3 WTO AND AGRICULTURE4.3.1 Introduction(a) Background to the Agreement on Agriculture (AoA)• Under GATT rules, agriculture was not part of the negotiations and non-tariff barriers wereallowed. Agricultural trade was distorted through measures including the following:‣ quantitative import restrictions,‣ variable import levies,‣ minimum import prices,‣ discretionary import licensing,‣ voluntary export restraints‣ non-tariff measures maintained by state-trading enterprise (STEs)• Main issues in AoA: The Agreement introduced new disciplines in agriculturaltrade. There are four main issues involved:‣ Market access‣ Domestic Support‣ Export subsidies‣ S & DT(b)Issues of Concern to Africa:• Agriculture is the mainstay of economies including employment and exports and basis forindustrialization to the vast majority of countries in Africa especially the LDCs where agricultureemployment averages 80%.• On the positive side, liberalization is expected to bring benefits in terms of acquisition of moderntechnologies and addressing investment constraints• Variation in levels of development – individual countries should choose nature and pace ofliberalization and have rights to protect sectors in ways necessary for the development objective• Need to address concerns related to sustainable agriculture and food security• Lack of faithful implementation of AoA by Developed Countries affects the effectiveness of AoA• Likewise lack of Developing countries, in particular, LDCs capacity to take advantage of newopportunities is a serious impediment• During the UR negotiations developing countries were permitted to bind their obligations at theceiling due to lack of capacity to tariffy their NTBs, there has been no attempt to determine themagnitude of these NTBs"Deliberations on WTO Pre-Cancun Sensatization Workshop" 19

• There are problems in understanding and responding to obligations such as filing of notificationsand lack of technical capacity for rigorous analaysis of issues involved and for evaluating differentproposals• There is lack of financial capacity to apply the permissible support to the sector4.3.2 Market accessMajor changes in the area of market access include tariffication i.e. the conversion of non-tariff measures totariffs and the binding and reduction commitments of the resulting tariff rates over the period ofimplementation. However the AoA has created loopholes such as a special safeguard measures available tomembers who have tariffied their NTBs. Further, AoA has created a tariff rate quota system (TRQ)designed to maintain current and/or minimum access opportunities.• African group proposals have included market access issues comprising of tariffs, tariff quotas(volume and in-quota tariffs) and tariff quota administration. Three issues have been raised underthe TRQ:-‣ the administration of tariff quota has undermined the original objective of instituting thesystem; especially new access for new supplies,‣ allocation of quotas based on highly aggregated commodity groups rather than on aproduct-by-product basis‣ problems of quota under-fill and the use of out-of-quota tariff rates for in-quota quantity.• Issues and concerns relating to the design and implementation of tariffs and para-tariff measuresinclude:‣ A strong call for substantial reduction in tariff peaks facing developing countries' exports.‣ A substantial reduction in tariff escalation in developed economies and full liberalisationof tropical products in processed forms - to increase the value-added components ofAfrica exports.‣ Tariff-free and quota-free market access for exports of LDCs in the developed countries‣ Conversion of all tariffs to ad valorem is a way of simplifying and ensuring transparencyof the system.‣ Developing countries should be given the option of maintaining the current level ofbound rates (i.e. no reductions) on key staples‣ Predictability of export markets facing these countries would be ensured if:o Variable tariffs used by developed countries, eg price band schemes & seasonaltariffs are eliminatedo Tariff structures in developed countries are more transparent and less complex• Special agricultural safeguards have also received attention of both the African group and someindividual African countries• African countries strongly advocate for the simplification, more transparent and equity in theadministration of tariff rate quotas by developed countries. This can be achieved through:‣ Establishment of common base period for calculating domestic consumption for the minimumaccess commitment‣ Basing of quotas on specific products rather than aggregated commodity groups4.3.3 Domestic Support‣ Main objective of AoA has been to discipline and reduce domestic support while at the sametime making allowance for governments to design domestic agricultural policies conducive totheir specific conditions. The basic principles for domestic support are:‣ To impose disciplines on all domestic support in favour of agricultural producers‣ To impose reduction commitments on trade distorting support• The main concerns include:"Deliberations on WTO Pre-Cancun Sensatization Workshop" 20

‣ Widening gap between developed country members and the developing and leastdevelopedcounterparts‣ Funding to take advantage of special and differential treatment provision‣ Under SAP, African countries removed support to the agriculture sector. Some of thesewere not taken into consideration in the process of committing to the AoA.• Domestic support: The ‘amber box’‣ Accommodates all domestic support measures considered to distort production and trade(with some exceptions)‣ 34 WTO members have commitments to reduce their trade-distorting domestic supports in theamber box Members without commitments have to keep within 5% of the value ofproduction, and in the case of developing countries the level should be within 10% on thevalue of production.• The ‘green box’‣ Under the green box, subsidy must not distort trade, or at most cause minimal distortion‣ Subsidies have to be government-funded (not by charging consumers higher prices) andmust not involve price support‣ Green box subsidies tend to be programmes that are not directed at particular products,and include direct income supports for farmers that are not related to current productionlevels or prices‣ Green box subsidies are therefore allowed without limits, provided they comply withrelevant criteria‣ They also include environmental protection and regional development programmes.• The ‘blue box’• The blue box is an exemption from the general rule that all subsidies linked toproduction must be reduced or kept within defined minimal levels‣ Blue box was introduced mainly to accommodate EU compensation payments and US deficiencypayments (through lately US no longer uses now)• African Concerns on Domestic Support‣ African issues and concerns cut across all the three boxes‣ African countries have questioned the appropriateness of the green box measures to thedeveloped countries given their level of development‣ They have expressed their inability to take full advantage of special and differential rights‣ Domestic Support: Africa concerns‣ African has called for substantial and progressive reduction in trade- and productiondistortingdomestic support measures in the developed countries‣ African countries are also interested in ensuring clarity and transparency in theimplementation of domestic supportThe ultimate goal of African countries is to guard against possible bias in the measures applicable toagricultural production that are of interest to AfricaThere is need for Appropriate domestic support measures to ensure full commitment to liberalize agricsector by developed countriesAll domestic support measures be collapsed into one box rather the current boxes – for rationality and easyimplementation and evaluationAfrican countries feel that their non-trade concerns are not adequately addressed in all boxes and cannot beadequately covered under the proposed general box hence they have called for the establishment ofdevelopment box to address these concerns4.3.4 Export Subsidies"Deliberations on WTO Pre-Cancun Sensatization Workshop" 21

• African concerns relate to the rationale for the use of export subsidies in the developed countrieswhere export infrastructures are well developed• Developing countries require export subsidies to create the necessary infrastructure for aneffective integration of small farmers into the ever-increasing dynamic world trading system• Export subsidies or export credit indirectly undermine the viability of Africanagriculture as they depresses the world prices of the affected commodities.• Apart from the three pillars of the UR- AoA, African concerns and issues include:‣ Decision on Measures Concerning the Possible Negative Effects of the ReformProgramme on Least-Developed and Net Food-Importing Developing Countries(the Marrakech Decision)‣ special and differential treatment for developing, and least-developed countries‣ non-trade concerns‣ Related agreements especially the Agreement on the Application of Sanitary andPhytosanitary Measures (SPS) and the Agreement on Technical Barriers to Trade(TBTs).4.3.5 Special and differential treatment• Provisions relating to SDTs in AoA include:‣ Developed countries have agreed to take into account the special needs and conditions ofdeveloping countries in implementing their commitments on market access‣ Government assistance to encourage agricultural and rural development are exempt fromdomestic support commitments‣ With regard to export subsidy, final commitments for developing countries can be higherthan for other Members‣ If they are not net exporters of the specific food-stuff, developing countries are notsubjected to the disciplines on export prohibition and restriction‣ Developing country members have the flexibility to implement reduction commitmentsover 10 years rather than six, and least-developed country Members are not required toundertake reduction commitments‣ Developed countries are required to take measures in favor of least-developed and netfood importing developing countries4.4 TRADE RELATED INTELLECTUAL PROPERTY RIGHTS (TRIPS)The TRIPS agreement entered into force in January 1995 with a transition period of oneyear for developed countries, five years for developing countries and 10 years for LDCswith a deadline for 2006. The Doha Declaration extended this transition period to 2016.It has three main features:• Standards: lays down minimum standards for protection of intellectual property and the arts,including recognition of preceding articles implemented by WIPO;• Enforcement: indicates procedures to be followed by patent holders to safeguard their rights; and• Dispute settlement: prior to TRIPS there was no dispute settlement mechanism for intellectualproperty rights. With URA non-conformity with TRIPS can lead to retaliatory measures in anyother trade area.The subject of TRIPS covers patents as well as biodiversity and geographical indications.The presentation focused on the issue of TRIPS and public health in terms of access toaffordable medicines.4.4.1 TRIPS AND PUBLIC HEALTH"Deliberations on WTO Pre-Cancun Sensatization Workshop" 22

(a) Situation AnalysisThe issue of public health is covered under the TRIPS clauses on Patents. The paper defines patents asinventions relating to products or processes that seek to protect the commercial interests of holders for 20years from the date of filing. However there are exceptions to rights conferred vis: “members may providelimited exceptions to the exclusive rights conferred by a patent provided that such exceptions do notunreasonably prejudice the legitimate interest of the patent owner, taking account of the legitimate interestsof third parties”. This provides for over-riding the interests of patent holders for the public interest e.g.technology transfer, nutrition and health reasons.This has implications in two areas• Medical research: TRIPS is an incentive for innovation and R & D into new drugs. Research isexpensive but reproduction of a new product is very cheap hence the patenting system from theperspective of the pharmaceutical companies encourages heavy R & D expenditure throughsafeguards against parallel importing and licensing. In reality however, patents are biased towardsthe interest of the pharmaceutical industry;• TRIPS has led to the public health dillema of accessibility to cheap and affordable drugs due tohigh drug prices and decline in generic manufacturing. By design, patents raises the prices ofmedicines to consumers.• The concerns on public health have been proven through the case of HIV/AIDS and access toaffordable anti-retrovirals.World response on this has led to negotiations during the Doha Ministerial which has provided forCompulsory Licensing and Parallel importation of generic medicines to address public health concerns incases of epidemics such as HIV/AIDS, malaria and TB and others to be identified. Negotiations continueto include provisions that may be used to strike a balance between private and public interest throughsafeguard measures.(b) Implementation concernsThe TRIPS agreement is difficult to implement in view of differential powers and limited resources on thepart of those who would benefit from relaxation of certain clauses:• The Doha Declaration on TRIPS and Public Health accords due recognition, is the precedence ofpublic health over and above the patent rights of innovators.• Over-riding the patents rights also require domestic capacity to manufacture drugs – Dohainstructs WTO to find a solution to enable countries that do not have the capacity to manufacturegeneric drugs to benefit from the developments that allow flexibility in TRIPS(c)Cancun and Beyond• The position of the African Group includes:‣ Lifting TRIPs restrictions on exports of public health related products without the consent ofpatent holder;‣ Either deleting Article 31(f) of TRIPS or agree an interpretation of article 30 to allowproduction to address health needs in other countries for the benefit of countries withoutmanufacturing capacity;‣ Emphasis on technology transfer to create domestic manufacturing capacity where this isfeasible;‣ Define other epidemics to benefit from this development in TRIPs;• The EU position:‣ Agree an interpretation of Article 30 to allow countries to export health products;‣ Amend the compulsory licensing provisions of TRIPS (Art. 31) by carving out an exception undercertain conditions;‣ Restrict solution to countries facing serious health problems and exception circumstances;• The US position:‣ Reject the proposed solutions put forward by the EC and developing countries;"Deliberations on WTO Pre-Cancun Sensatization Workshop" 23

‣ Proposed a moratorium (suspension) on WTO disputes in cases where a government allowscompulsory licenses for export to selected developing countries;‣ Solutions must be focused on improving access to pharmaceuticals to treat diseases referred to inthe declaration, such as HIV/AIDs, malaria, TB or other epidemics;‣ Countries with insufficient or no manufacturing capacity should not be extended to encompassdeveloped countries or to countries that choose not to manufacture certain drugs based on policy,economic or other reasons.Tanzania should continue to work with developing countries to push for US consensus on consensusalready reached by other countries.4.5 PLENARY DISCUSSIONS ON SELECT AGREEMENTS4.5.1 Discussants Views and Comments(a) GATS (General Agreement in Trade in Services)i. Tanzania needs to undertake a thorough evaluation on the potential of the services sector toidentify the size of the sector, the value of various subsectors, their current status and futureprospects as an input into establishing priorities and further implementation of GATS. There arecertain kinds of services where further commitment to liberalization is inevitable as a means ofattracting additional FDI and an evaluation would identify such services;ii. Tanzania, like many other developing countries, has already liberalized substantially unilaterallyin the course of implementing World Bank restructuring policies. There is need to establish thatfurther liberalization is limited to areas where this is necessary. It should be borne in mind thatGATS is one of the most liberal WTO agreements allowing leeway to members. However once acountry makes commitments it is difficult to reverse such commitments; Where a developingcountry has over-liberatised, credit ought to be taken note of so that undue pressure for furtherliberalization could be held in abeyance temporarily.(b)Agreement on Agriculturei. It was noted that trade in agriculture was not negotiated substantially during the UruguayRound because agriculture is a sensitive issue to the developed countries to whom the threemajor issues: market access, domestic support and export subsidies factors are important.Noted further that even if the developed countries are to open up their markets throughreduction of domestic support and export subsidies, the danger is that rigorous SPS and TBTsstandards are bound to become the new binding barriers to the agricultural exports ofdeveloping countries.In response, it was noted that, part of the reasons for the timing of negotiations on agricultureis the growing contention between the positions of the US and the EU and the latter’s heavysubsidies to their domestic agriculture.ii.Participants wanted to know what are the potential benefits for Tanzania in implementing theWTO agreements, what actions the nation has taken so far. What links can one make betweenunfolding developments in the case of Agriculture and other agreements.In response, participants were informed of the initiative to produce a Tanzanian position paperon the Agreement on Agriculture and that efforts are underway to finalize the paper. Aspectsof the paper include the identification of priority products as the basis for diversification intoproducts with a growing market share as part of long-term initiatives for economictransformation. Even more important is the need to undertake value-chain analysis as ameans of identifying commodities on which the nation can internalize value adding activitiesor undertake market diversification as part of the economic transformation initiative. Thepaper will be discussed during a second workshop scheduled for 21 st August 2003 for furtherimprovement."Deliberations on WTO Pre-Cancun Sensatization Workshop" 24

It was further noted that initiatives for the diversification of the agricultural sector should beconsidered as a matter of priority and one that should not await the outcome of the ongoingnegotiations. Tanzania, as an agricultural economy can benefit tremendously fromagricultural market access and even non-agricultural market access (agro-processing) subjectto prioritizing initiatives for capacity building on product and market diversification based onemerging market access opportunities including anticipated changing tariffsThe nation can use current goodwill inherent in trade related (TA) technical assistancetowards this end. However the initiative should not be left to donor initiatives alone butshould be supported by pro-active allocation of domestic resources with donor resourcesplaying a supplementary role.(c)TRIPSi. What measures can Tanzania undertake to benefit from the compulsory licensingarrangements under TRIPS with respect to ensuring access to cheap and affordable genericmedicines for the poor in respect of epidemic diseases;ii.What are the facts behind GMOs (genetically modified organisms), what are the risksinvolved and is the Government taking any steps to protect the people from such risks? Whatis the Government policy on GMOs? What is the official position regarding the adoption ofprecautionary principles such as those of the EU against bio-technological products from theUS.In response to this question, the representative from TPRI responded that the Government hasbeen working on GMO (Genetically Modified Organisms) issues for almost 3 years and aNational Biotechnology Committee (NBAC) established and located at the Commission forScience and Technology. The Government has adopted the bio-safety regulations on LivingModified Organisms (LMOs) and GMOs. A draft Policy and Bio-safety Regulations are nowbeing considered within three ministries: the Vice President’s Office, the Ministry of HigherEducation, Science and Technology; and the Ministry of Agriculture and Food Security with aview to producing a Government position paper that will be the basis of seeking a formalgovernment decision expected to be accomplished in the course of 2004. In this regard,participants were further informed that:• TPRI is leading an initiative on awareness creation involving seminars to informstakeholders and train people in horticulture, floriculture and seed industry andtraining the private sector about the benefits as well as the risks of GMOs. This is anissue which has tremendous benefits as well, not only risks;• It is planned to hold a national seminar for Parliamentarians in November 2003 tosensitize political leaders on the issues involved. This will be the beginning of awider group of seminars for various stakeholder groups;• Risks or problems related to GMOs include the following:• risks of escape of the genes (gene-flows) that can change the morphology,physiology and other traits of plants with serious repercussions;• risks related to development of resistance by target insects to plant producingtoxins leading to new problems;• Health risks by consumer – genes in the plant can intermingle with genes in thestomach (bacterial genes), spread the genes to the bacteria that causes diseasesand posing new dangers related to resistance to antibiotics prescribed bydoctors;• Risks on the Intellectual Property Rights in terms of royalties for ownership ofgenes as patents take over preceding hereditary ownership of seeds and plants• Ethical problems such as those relating to intercloning of human organs in acow’s ovary and improvement of human intelligence in the embryos; and"Deliberations on WTO Pre-Cancun Sensatization Workshop" 25

• There is a range of other socio-economic and political risks as well.iii.Patenting of Traditional Knowledge: Noted further that TRIPS also covers the patenting oftraditional knowledge that may be public property. The example of Kenya patenting andmarketing of the Kiondo, a traditional women’s “hold-all” bag that is common to Kenya andTanzania was given.(d)General Comments, and recommendations.i. Government inputs into the Workshop: Participants commended the initiative of conveningthe workshop. However it was noted that presentation were oriented towards the text of theagreements from an academic orientation and the factor of implementation was missing.Suggested that future seminars consider the issue of including more inputs from theGovernment sector with respect to status of ongoing negotiations as well as initiatives on theimplementation side.ii. Options and Preparedness for Negotiations on Singapore Issues: Noted that the overallposition of the Developing countries on the Singapore issues is to continue preparatory workin the Working Groups. However, it was recommended that Tanzania should start developinga fall-back position on strategies and positions for negotiations in the event a decision isreached to start negotiations on some of them after Cancun.5.0 GROUP DISCUSSIONSGroup discussions were undertaken in four groups:(i) Agriculture and NAMA;(ii) GATS; and Trade in services(iii) TRIPS and Singapore Issues; and(iv) Cross-cutting Issues.5.1 GROUP I: AGRICULTURE AND NON-AGRICULTURAL MARKET ACCESS (NAMA)The group reported the following as the main features of their discussions:• Market access‣ Bound tariff rates for developing countries are too high, therefore these be reduced‣ Tariff escalation in developed countries should be reduced‣ Quotas:o Increase allocated sizeso Increase time‣ SDT should be implemented as per agreements – make it binding• Domestic Support‣ Reduction of commitments should be product specific (instead of AMS)‣ Direct payment to farmers in developed countries should be substantially reduced• Export Subsidies:‣ Should be eliminated• Other concerns:‣ SPS: stick to international agreements and provide (TA) technical assistance‣ GMO: provide TA to utilize potential and minimize risks• Strategy for Cancun and Beyond:‣ Agree on implementation time-frame.5.2 GROUP II: GATS and TRADE IN SERVICES"Deliberations on WTO Pre-Cancun Sensatization Workshop" 26

• Situation analysis: Tanzanian unilateral liberalization has exceeded the requirements ofliberalization under the WTO agreements. Consequently, before undertaking furthercommitments on GATS, Tanzania should undertake an evaluation assessment study on servicesliberalization. Initiatives to seek technical assistance for this purpose should be undertaken.• Tanzania and the LDCs should seek the following with respect to export of services based onMode IV on Movement of Natural Persons:‣ Get support to improve and upgrade the skills of its labor force as the means of building itshuman resources as a form of capital asset‣ Relax immigration rules to accommodate semi-skilled and unskilled labor from thedeveloping world• Tanzania should liberalize further the services sectors only for national interests (e.g. sectors thatneed private sector investment resources such as transportation and infrastructure). Suchliberalization should be undertaken in a flexible and progressive manner and not in response topressure from outside. For instance in the tourism sector there should be no further commitmentapart from the current liberalization of investments for four star hotels.‣ Market access conditions and regulations at the domestic level should be geared towardsensuring that Tanzania is able to enhances its benefits from the tourism industry‣ Among other things there is need to improve infrastructure facilities for the tourism andrelated industries including the transportation system, hospitality sector and ground services.‣ Undertake a general review of legislation (laws and regulations) to respond to emergingchanges in trade in services5.3 GROUP III: TRIPS AND SINGAPORE ISSUESThe Singapore Issues: the group considered the four Singapore issues on which preparatory working forpotential negotiations in the WTO were mandated by the Singapore Ministerial Conference of January,1996, from three perspectives:• Identify issues;• Situation analysis in Tanzania; and• Proposals for Cancun.(a) Investment: Noted the desire of developed countries to subject the subject of Investment andTrade to the core principles or disciplines of the WTO and the contenting position of the developingcountries to accept the applicability of only some of these principles i.e.: Scope and definition;Transparency; Non discrimination (MFN principle); Development provisions; and Dispute Settlement.Further developing countries are calling for preparatory work to establish the modalities of negotiations tocontinue so as to determine the full implications of a WTO agreement in this area before negotiationsshould start.The actual situation in Tanzania is that the nation aims at attracting investment through FDI to stimulatehigher economic growth. The TIC and the Investment Promotion Act of 1997 provides for the realizationof this goal. Tanzanian should pursue the position adopted by the developing countries group to the effectthat objectives on this area should include:• Limiting coverage in WTO to FDI form of investment only;• Go for more flexibility in domestic policies to create adequate space for national policies ondevelopment; and• Call for TA and more time to study and analyse the issues and their implications.(b) Trade FacilitationThe major issues also relate to the definition and scope of an agreement on trade facilitation and whetherthis area should also be subjected to the WTO disciplines, including dispute settlement. Another key issueis the need for major technical assistance and capacity building for developing countries to address"Deliberations on WTO Pre-Cancun Sensatization Workshop" 27

concerns of developing countries, in particular LDCs, especially in the area of infrastructure developmentthat is necessary for effective implementation of trade facilitation.A major practical issues relates to the processing of transit goods through ports and the effectiveness ofcustoms facilities and procedures. For instance, Tanzania is implementing ASYCUDA++ at the nationallevel while others in the SADC are implementing ASYCUDA+++ and there is need for rationalization.Tanzania should pursue the LDC position in Cancun on the Singapore issues, that is continue thepreparations in the Working Groups ostensibly to clarify the subject further and avoid creating anoverwhelming agenda for implementation at a time when the implementation of the URA remains an issueand capacity remains weak.(c) Competition Policy and LawNoted the objectives of the developing countries to apply the WTO disciplines and five principles to thearea of competition policy and law with the further objectives addressing hardcore anti-trust elements e.g.cartels, abuses of dominant market position.The situation at the national level is that Tanzania has repealed the Fair Trade Practices Act of 1994 infavour of the Fair Competition Act 2003, which is WTO compatible.The proposal for Cancun and beyond is to adopt the same line as is the case of all Singapore issues arguefor continuation of working groups to clarify the issues involved further and adequate provision oftechnical assistance for capacity building at the national level.(d)Transparency in Government ProcurementThe major issue on Government procurement, according to the Doha mandate is to induce transparency inthis area. Developed country position, however, includes subjecting the WTO disciplines to the area,including the MFN non-discrimination clause. The LDCs feel that this is a policy instrument that isparticularly important for stimulating development in view of its potential to guide the development andgrowth of SMEs.With respect to the situation in Tanzania, the Government enacted a Procurement Act in 2002 that takes onboard elements of prevailing international best practice based on the UNCITRAL model.The proposal for Cancun is based on the LDCs position of continuing with the work in the Working Groupsfor the purpose of clarifying issues, including scope of coverage. In addition emphasis is placed on limitingscope to transparency as per existing mandate and not extending this to the WTO rules based system anddisciplines. Finally, is in all other cases, there is need for capacity building.(e) Trips and Public HealthOn TRIPS three issues were of significance:• TRIPS and public health with emphasis being on access to cheap generic drugs to epidemicdiseases. The issues is to find a solution to for WTO members with insufficient manufacturingcapacity to use the compulsory licensing clause.• The other two issues concern TRIPS and biodiversity and TRIPS and geographical indications:noted ongoing work on geographical indications with respect to wines and spirits and the need toextend this to areas of interest for developing countries.• Recommendations for Cancun included adopting a regional solution to the manufacturing capacityconstraint for small LDCs and the need to widen the scope of disease coverage: public healthproblems in poor countries5.4 GROUP IV: CROSS CUTTING ISSUES"Deliberations on WTO Pre-Cancun Sensatization Workshop" 28

Cross-cutting issues include issues pertaining to coordination and networking on negotiations at thenational and international level and moving from the negotiations phase to the implementation phase forconcluded agreements at the national level. One of the major aspect in the WTO agreements touching onthe cross cutting issues is the subject of Special and Differential Treatment in respect of adequate transitionperiod for implementing the agreements and technical assistance/capacity building for implementation.The group approached the subject from three perspectives:• Framework for negotiations at the national level;• Framework for negotiations at the international level; and• Framework for effective implementation.(a)Framework for Negotiations at the National Level• Co-ordination and participation: There is need to establish an institutional framework tocoordinate stakeholder inputs and participation in the negotiations processes including effectivecoordination at the national level within the public sector itself and between the public sector andthe private sector and CSOs. The objectives underlying such a framework should includeenhancing awareness of the issues involved, participating in the analysis and drawing up of anational position that reflects the envisaged benefits for the nation.• It is critical to focus on capacity building for analysis at three levels: within the Ministry ofIndustry and Trade as the focal point, in the key central and sectoral ministries and other publicinstitutions including field offices countrywide (regional trade officers) as well as Tanzaniamissions abroad. Institutional capacity building should also focus on private sector institutionsincluding business associations and CSO organizations.• Resources: Tanzania should increasingly allocate more national resources to the trade policyprocess through deliberate budgetary allocations as opposed to the current undue dependence ondonor resources and assistance.(b)Framework for Negotiations at the International Level.Links between domestic scene and international level on MTS issues• The emphasis should be on enhanced participation in Regional Integration schemes in terms ofcooperation within and between groups such as EAC, SADC and COMESA.• Enhanced linkages between the Ministry of Industry and Trade as the focal point with keynegotiating points such as Brussels for ACP-EU and Geneva for the WTO.• Building capacity for awareness and understanding as well as analysis and negotiations on WTOagreements as the basic framework for more effectiveness in international and regional tradenegotiations.(c) Framework for Effective ImplementationWhereas the strategy adopted for negotiations in multilateral negotiations is the consensus approach basedon consolidated group positions, the implementation phase basically reverts to national initiatives. Forinstance Tanzania participates effectively in negotiations in the WTO through influencing the grouppositions of major negotiating blocks such as the LDCs (with 49 members), AU (with 53 members) andACP (with 79 members). Coordination within these three groups ultimately enables Tanzania, togetherwith all other members, to have a major voice on trade issues than is conceivable from a nationalstandpoint. A case in point is the example of the LDCs influence on the Doha Ministerial Meeting of 2001,based on a consolidated position that was embedded in the Zanzibar Declaration.While there is negotiating strength in consolidated positions, implementation reverts to the national level aseach country works out strategies reflecting their resource base and potential to take advantage of themarket access opportunities which are the main advantage of the MTS. Other opportunities such as S &DT and financial and technical support for capacity building can assist countries to expedite the process ofeffective implementation. Tanzania needs to undertake and implement, urgently, programmes that build onavailable technical assistance, to establish the capacity to implement the WTO agreements and otherregional trade agreements. Major issues to be considered in this respect include:• Public sector capacity to support and enhance private sector development initiatives"Deliberations on WTO Pre-Cancun Sensatization Workshop" 29

• Private sector capacity for product and market diversification based on Tanzania’s resource baseand potential and a growing global market• Sectoral linkages and value adding opportunities• Capacity for understanding and complying with standards• Capacity to adopt and implement instruments for product and market development including:market linkages, export development, export facilitation and export promotion"Deliberations on WTO Pre-Cancun Sensatization Workshop" 30

CHAPTER IV6.0 FINDINGS, CONCLUSIONS AND RECOMMENDATIONS6.1 MINISTERS RESPONSE TO WORKSHOP DELIBERATIONS.Apart from delivering the keynote address, the Minister for Industry and Trade participated in theproceedings on the first day. In this regard, he offered the following responses to issues of concern raisedby discussants, concerning the conduct of negotiations on international trade and approaches adopted byTanzania. He commended and thanked the organizers and participants for the initiative and proactiveparticipation in the workshop. Emphasized the need to continue to build national consensus in terms ofunderstanding what is at stake and drawing up national strategies as our representatives prepare for theCancun Ministerial. There is need to build on the public and private partnership to handling thenegotiations at the national level as the basis for consensus building at the international level as we moveforward on the WTO agreements. More specific responses to issues of concern included:• Regarding the handling of potential conflict in position of different groups to which Tanzania is amember e.g. EAC, SADC, LDCs, AU and ACP, the Minister acknowledged that these groups dohave minor differences. However, in principles the fundamentals underpinning their position inthe negotiations remain the same as the different groups basically have to address the fundamentalcommon problem of poverty at the national level. Experience emerging from the last two WTOMinisterials (Singapore and Doha) have proven the common strength of the three groups that isembedded in a common united front. The same situation is emerging with respect to the issuesthat are of paramount importance in Cancun;• A typical example is the case of India and Brazil, the countries that are currently manufacturinggeneric drugs that can be sold at cheap prices to LDCs without manufacturing capacity are underintense pressure to limit their compulsory licensing. Clearly the benefit of the LDCs and otherDeveloping nations lies in supporting these two countries. Consequently although the developingcountries differ so much, there are common interests that bind them together on the issue of TRIPsand public health. Divided the developing countries will succumb to the enormous pressuresemerging from US multinationals against measures for effective implementation of thecompulsory licensing clauses in TRIPS. The objectives of Developing countries focus onimproving human health and life while that of developed countries interests lies in higher profitsand these are the fundamental differences on which the negotiations should focus; and• On Singapore issues – we will discuss them in Cancun subject to having explicit consensus on themodalities on each of the Singapore issues which has not been possible to achieve in Geneva. Weneed first to clarify the Singapore issues – what are the implications of these agreements if theyfall under the WTO framework and what larqe the benefits to developing countries. Thedeveloping countries also need more time to study the issues and their implications hence the callto continue with the preparations in the Working Groups.Finally, the Minister commended the approach of bringing together experts from different disciplines andinstitutions to consider the issues involved in the WTO negotiations and the need to continue theseinitiatives. The experts “know the issues but do not have the details that are available in Government hencethe importance of working together”. MIT is open minded to receive all ideas and inputs that can improveon Tanzania’s efforts in the Cancun ministerial and other meetings of a similar nature.6.2 CHAIRMAN’S SUMMARY AND CLOSING REMARKS.The Permanent Secretary, Ministry of Industry and Trade, who chaired the plenary discussion summed upthe proceedings and views emerging from the discussions highlighting on the following issues:"Deliberations on WTO Pre-Cancun Sensatization Workshop" 31

• Noted the comment concerning more inputs from the Government concerning ongoingdevelopments on Multilateral Trade Negotiations in Geneva and the issue of how the approachesto negotiations could be taken up. In this regard, the Ministry normally works with other countriestowards a common position in various groups i.e. SADC, LDC and AU ACP through MinisterialMeetings which produces declarations that are used as the basic negotiation positions. In additionthe three groups also coordinate their positions to arrive at a complimentary stance that leads to acommon position in the negotiations. The Permanent Secretary promised that Ministry wouldcirculate the Declarations made by these groups for participants information. The Tanzanianposition is reflected in these declarations;• The Ministry distributed copies of the Dhaka, Lusaka, Mauritius and Brussels declarations to par.Also avail participants the draft Cancun Declaration which is already available and subject tonegotiations;• Concerning the Ministers comments on membership in multiple institutions the PermanentSecretary confirmed that the Ministry has experienced no problem in forming positions at theregional level such as SADC and linking this position with consensus at the wider level such asthe AU, LDCs and ACP groups. This is on account of the similarity of our problems relative toissues such as agricultural market access and on TRIPS and public health. We may differ onlanguage, culture and specific priorities but the core concerns remain the same. Further for thedeveloping countries unity remains the only weapon with which to face the position of powerfuleconomic nations such as the US, EU and Japan;• Noted further that even the more advanced developing countries in Africa such as South Africaand Egypt do support the moulding of an AU position which reflects the concerns of the LDCsgroup given that 35 of all LDCs are Sub Saharan African countries.• Reiterated the fact that even though negotiations are conducted through consensus amongst blocksof countries and interest groups until a common position is arrived at that accommodates allmembers, the Ministry is aware of the fact that implementation is a matter of primary individualnational concern and Tanzania is already working on initiatives to reform our institutionalstructures to create a responsive framework corresponding to the demand of the situation and buildthe capacity to implement the agreements adequately. There is recognition of the need for astructure to facilitate the coordination aspect. In this regard, a WTO National Committee has beenestablished and the issue on hand is to enhance its capacity. The Ministry has also appointed aspecific Committee, chaired by the Minister in person, to follow up on the issue of implementationrelative to market access opportunities such as AGOA;• Acknowledged the need to enhance research capacity and to link this with the public and privatesector stakeholders as the primary users of the findings and recommendations or output ofresearch. Commended the performance of institutions like ESRF and the Economic ResearchBureau of the University of Dar es Salaam and noted the need for adopting a more coordinatedapproach on research work so as to focus on the issues of priority importance to the nation;• With respect to capacity building and technical assistance, the Chairman also noted that Tanzania,as an LDC, has the right to enjoy special and differential conditions provided for in the WTOagreements as an interim measure while building the requisite capacity. Noted that it is importantto build capacity and participate in negotiations for market access with the EU although at presentTanzania benefits from the EBA scheme for LDCs because the preferences given to LDCs will notprevail for ever;• In conclusion, the Chairman reiterated the need to utilize the high capacities in our institutions oflearning and continue to forge alliances at regional level: SADC, AU, LDCs and ACP. No onewill listen to Tanzania in the WTO – but they have to listen to the regions. All those declarationsultimately amount to a common position that can be put on the table. How do you negotiate withan economically powerful country as the US whose GDP is twice that of Africa – if Africa doesnot negotiate as one entity? He emphatically concluded is summing up.6.3 SUMMING UP OF GROUP DISCUSSIONSProfessor Samuel M. Wangwe, chaired the plenary discussions that received the reports from the groupsdiscussions. His summary of the recommendations emerging from the groups include the following:"Deliberations on WTO Pre-Cancun Sensatization Workshop" 32

• It is important to develop a national agenda on how to address the WTO issues as a nation,encompassing the whole process from negotiations to implementation and to develop acommon understanding of the issues involved and how best to address them from a commonnational perspective;• There is need to understand the position of the major contending parties in the negotiationsprocesses, analyse those positions and their implications to the Tanzanian position as inherentin the groups through which Tanzania participates. This is critical in terms of developing andinfluencing negotiation options and eventually in terms of implementation of concludedagreements;• It is important to bear in mind the benefits of collective bargaining as a group on the part ofdeveloping countries;• It is important that Tanzania spends more effort and resources in implementing theagreements and that increasingly more national resources as channeled to this aspect of theprocess and there are deliberate efforts to reduce over dependence on aid and technicalassistance. Aid can be used as an instrument to weaken the strength of developing countriesthat lies in their unity;• Future discussion papers should include inputs from Government officials who areparticipating in the actual negotiations as a way of ensuring up todate information on thestatus of negotiations.6.4 CLOSING CEREMONYThe Executive Director of the AERC delivered the closing remarks emphasizing the importance of holdingsuch preparatory workshops to ensure that participants in Cancun will be aware of the currentdevelopments and that other stakeholders get the opportunity to contribute to inputs into the process. Asstated during the opening remarks, AERC is financing similar workshops in a total of six African countries.Finally the Acting Executive Director of ESRF thanked AERC for extending financial support to theprogramme, the resource persons who provided discussion inputs and other participants for a livelyworkshop. The workshop was formally closed at 1.00 p.m. on 13 th August, 2003.6.5 SOME SELECTED RECOMMENDATIONS FOR THE TANZANIA DELEGATIONATTENDING THE WTO 5 TH MINISTERIAL CONFERENCE IN CANCUNThe workshop had selected a few but very important recommendations so that the Tanzaniadelegation should bear in mind during the forthcoming WTO 5 th Ministerial Conference inCancun, Mexico. These include the few very important ones as listed hereunder: -6.5.1 It was extremely important for the Tanzania Delegation to adopt a Regional Solidarity Approachinto which Tanzanias interests are well integrated. The Solidarity approach stands better prospectsfor successful negotiative win situation.6.5.2 Tanzania as could be for most of other LDCs, AU seek and register for postponement approach tonegotiations such that clarifications and more time for conducting indepth analyses of issues beingbrought up.6.5.3 Areas where Tanzania, as a LDC enjoys exemptions, need therefore neither make anycommitment nor conduct or involve in negotiations. Instead if there offers being made without"attached" conditions then Tanzania could consider acceptance so long that she has comparativeadvantage than her competitors.6.5.4 It maybe advisable for Tanzania, as would be for all other LDCs to seek and secure postponementof issues to facilitate capacity building of local based resources and personnel. In doing forTanzania should also seek for Technical assistance."Deliberations on WTO Pre-Cancun Sensatization Workshop" 33

6.5.5 Tanzanias new National Trade Policy just recently approved need to be publicised such that theentire public is made aware of especially the majority stakeholder business communities.Similarly to eliminate apparent overlay of activities, other sectoral ministries must be well definedwho should operate within the set limits.6.5.6 Post Cancun Evaluation and feed back to all stakeholders should be made so that the public andprivate sectors and consumers in general know what slice or cake has been allocated. Converselyfeed back is important as those adversely involved have to prepare for the situation.6.5.7 As a long-term strategy there was need for institutionalising consultative mechanism so that thoseinvolved e.g. the academia conduct requisite indepth analyses and researches."Deliberations on WTO Pre-Cancun Sensatization Workshop" 34

ANNEXTURESMINISTER SPEECHRESOURCE PERSONS AND RESPECTIVE AREAS COVEREDNO. RESOURCE PERSON NAME RESPECTIVE AREAS COVERED1. Professor Samuel M. Wangwe (PrincipalResearch Associate ESRF)Institutional framework overview: Tanzania’sTrade policy making process”2. Mr. A.T. Pallangyo: (MIT-Expert) Progress on JITAP I and Perspectives on JITAPII3. Dr. P.J. Kabudi (Faculty of InternationalLaw UDSM)An Overview of legal issues and Agreements ofthe WTO rules and Forums4. Dr. A.L. Kilindo (ERB/UDSM) WTO/GATS and trade in Services5. Mr. E.C. Elias (Senior EconomistMIT/URT)Multilateral Trade Negotiations – NewSingapore issues6. Dr. Flora Musonda (Senior ResearchFellow ESRF)i) WTO and Agreement on Agricultureii) Special and Differential Treatment7. Ms. Ummy Mwalimu (GlobalisationESRF)TRIPS Trade Related Intellectual Property rightsand Public Health.8. Mr. A.R. Ngemera (P/Secretary MIT) Chaired the Workshop8. Hon Dr. Juma Ngasongwa MP Minister of Industries & Trade was theWorkshop Guest of Honour and stayed all day totake part in the days deliberations."Deliberations on WTO Pre-Cancun Sensatization Workshop" 35

LIST OF PARTICIPANTS AND OTHER INVITED GUESTSWTO PRE-CANCUN SENSITIZATION WORKSHOP - 12/08/2003S/No NAME DESIGNATION INSTITUTION MAILADDRESS1. Severa Masawe Legal Counsel Tanzania Tourist Box 2485, DarBoardes salaam2. Moud Issa Khamis Chairman ZBR National Box 1407, DarChamber of es SalaamCommerce3. B.M. Mutabazi Deputy Director TBS Box 9524, Dares Salaam4. Isabelle Cardmal Co-ord. Society DFID P.O. Box 9200,AdviserDar es Salaam5. Anita Msenwa Senior Collector Customs & Excise Box 9053, Dares Salaam6. Bede Lyimo Economist VIWANDA Box 9503, Dares salaam7. A.T. Pallangyo Trade Consultant JITAP Tanzania Box 6703, Dares Salaam8. S.M. Wangwe PRA/Consultant ESRF Box 31226, Dares Salaam9. Godwill G. Wanga ResearchESRF Box 31226,ConsultantDSM10. Siddik J. Khamis Trade Officer MIT Zanzibar Box 601,Zanzibar11. Diana E. Makule Economist POPP Box 9242, Dares Salaam12. Ummy Mwalimu Research Assist. ESRF Box 31226, Dares Salaam13. Kamugisha M.G. DRPP TRA Box 11491, Dares Salaam14. Flora Nzema Journalist EAR/TU Box 4374, Dares Salaam15. Caroline Ndosi Journalist ITU/SKY FM Box 4374, Dares Salaam16. Lonis P. Accaro Senior chamber TCCIABox 9713, DarDev. Officeres Salaam17. A. Kilindo Economist UDSM Box 35096, Dares Salaam18. Nuru Mtulia USAID/TZ Box 9130, Dares Salaam19. Edward Mkiaru Economist Communication Box 9144, Dares Salaam20. Angela Semaya Journalist Mwnanchi Box 19754, DarCommunication es Salaam21. Judicate Ndossi Health RiskAnalystTanzania Foodand DrugAuthorityBox 77150, Dares Salaam22. Ali Kh. Juma Div. of Planning MTIMT Zanzibar Ox 601,Zanzibar23. Ali M. Vuai Member ZNCCI Box 4726Zanzibar24. Aloys Mwamanga VPI TCCIA Box 9713, Dares SalaamPHONEE-MAIL0744-291943 Safari@ud.co.tz0744-54195 Moisil@Yahoo.com0748-782756 Atanabards@aw.org0744-221004 1cardmal@dfid.or.uk.0748-768852 Anguhwa@yahoo.com0748-479100 Bedlyimo@mit.go.tz0741-237712 Pallangy@raha.comSwangwe@esrf.or.tz0744-577481 ggwanga@esrf.or.tz;wangagg@hotmail.com0744-485649 Siddikia@hotmail.com2112681 Dinabule@plancom.go2760260 Umwalimu@esrf.or.tz2113086 Drp@raha.com,mkamugisha@tra.go.tz2775916 f-0744-516996,2774732nzema@hotmail.comCrdosi@hotmail.com0741-428699 Tccia.hq@catsnet.com0744-267086 Alkilindo@hotmail.com2668490 Nmtulia@usaid.gov2114425 Mkiaru@yahoo.co.uk0744-380464 Angelasemaya@yahoo.com2450512 Judicatendossi@hotmail.com2231142 Jumalikh@hotmail.com0748-4514200744-317607 Mwamanga2000@yahoo.co.uk25. Mageneth Meek State Attoney VPO Box 5380, Dar 0744-319035es Salaam26. E.C. Elias Senior Trade MIT JITAP Tanzania 0744-472619 Jitap-"Deliberations on WTO Pre-Cancun Sensatization Workshop" 36

Officer27. W. Bronkhorst Head EconomicDept.NetherlandsEmbassyBox 9534, Dares salaam28. Allan Laisa Bis. Reporter ITV Box 4374 0741-25008029. Obeid Mwangos Journalist ITV Box 4374 0741-60167830. Christine Kilindu CEO CTI Box 71783, Dares Salaam31. M.J. Munissi SAE MAFS Box 9192, Dares Salaam32. Marie Shaba Chairperson TANGO Box 106,Bagamoyo33. Bilali Abdutaziz Journalist The Guardian Box 31042, Dares Salaamtanzania@covision2000.com2110000 Willembroakhorst@minbura.nl2114954 Cti@cti'co.tz0748-303660 Dpp@kilimo.go.tz0744-265315 Mshabafrikan@hotmail.com2700735 Bilaliry@hotmail.com34. Wilfred T. Kahwa Trade Officer MIT Box 9503 0741-501568 Kahwaf@yahoo.com35. William Lyakurwa ExecutiveDirectorAERC Box 62882,Nairobi254-20-22805736. Ahmasa Ngemera P/Secretary MIT Box 9503, DSM 0748-27263437. James Kudema PHS. Ministry of Agric P.O. Box 9071 0744-493813Dar es Salaam38. R.G. Bamwanda Director General TPRI P.O. Box 3024, 027-2508042,Arusha0744-005656Gbamwanda@hotam39. P.A. Silima P/Secretary MTIMT-Zanzibar P.O. Box 601,Zanzibar40. Semboja, H. Research Fellow ERB Box 35096 0741-325364 Haji@semboja.com41. Isaac Dallushi Vice-Chairman TANEXA Box 5442, DSM 0741-615434 Idallushi@kicheko.com42. W. Mwaikabo Economist KILIMO Box 9192, DSM 0744-447531 Swilmamb@yahoo.com43. P.J. Kabudi Lawyer UDSM Box 35093,DSM44. F. Musonda Economist ESRF Box 31226,DSM0744-655495 Pjkabudi@udsm.ac.tz2760260 Fmusonda@esrf.or.tz45. H. Kamote Economist CTI Box 71783 0748-395038 Kamote@cti.co.tz46. Shy-Rose Bhanji Journalist TVT Box 31519 0748-343434 Bhanjisr@yahoo.com47. Justine Msechu Cameraman TVT Box 3151948. M.M. Takrima Senior Planning MTIMT Box 601,Zanzibar0747-410234 Mtakrima@hotmail.com49. Basil Saprapasen VPC TCCIA Box 7488, DSM 0748-780716 Basil@saprapasen.co.50. Prof. F. Matambalya Associate DeanFCM/UDSM51. Dr. RoshanAbdallahHead, Post EntryPlant QuarantineStation TPRIUDSM Box 35046,DSMTPRI Box 3024,Arusha52. Michael Abila Res. Assistant ESRF Box 31226,DSM53. Rebecca Muna Treasurer TANGO Box 76225,DSMail.com0741-602735 Katibumtimt@zanlink.comtz0748/0744- Fmatambalya@yahoo610470.com0744-276737 RAIFA52@yahoo.com0744-857141 Dabila@yahoo.com0744-433912 Pacivic@tango.co.tz"Deliberations on WTO Pre-Cancun Sensatization Workshop" 37

WTO PRE-CANCUN SENSITIZATION WORKSHOP - 13/08/20032. Ali M. Vuai Member ZCCIA Box 7426Zanzibar3. Prof. F. Matambalya FCM/UDSM Box 35046, Dares Salaam4. Ali Kh. Juma Div. for Planning MTIMT Box 601,Zanzibar0748-451420S/No NAME DESIGNATION INSTITUTION MAIL PHONEE-MAILADDRESS1. Louis P. Accaro SCDO TCCIA TCCIA Box 9312, DSM 0741-428699 Tccia.hq@catsnet.com0748/744- Fmatambalya@yahoo610470.com2231142 Jumalikh@hotmail.com5. Flora Nzema Journalist EAR/TV Box 4374, DSM 0744-684773 f-nzema@hotmail.com6. Msenwa Anita Senior Collector Custom & Excise Box 9053, DSM 0748-768852 Anguhwa@yahoo.com7. Basil Saprapasen TCCIA Box 7488, DSM 0748-780716 Basil@saprapasen.co.tz8. R.T. Kapella Consultant ESRF Box 31226,DSM0744-682818 Rtkapella@esrf.or.tz9. Isaac Dallushi Vice-Chairman TANEXA Box 5442, DSM 0741-615434 Idallushi@kicheko.com, tccia.hq@catsnet.com10. Bede Lyimo Economist VIWANDA Box 9503, DSM 0748-479100 Bedelyimo@mit.go.tz11. A.T. Pallangyo Trade Consultant JITAP-Tanzania Box 6703, DSM 0741-237712 Pallangyo@raha.com12. Severa Masawe Legal Consel Tanzania Tourist Box 2485, DSM 0744-291943BoardSafari@ud.co.tz13. Mohamed I. Khatib Chairman ZNCCIA Box 1407, 0741-543195ZanzibarMoiskh@yahoo.com14. Godwill G. Wanga ResearchConsultantESRF Box 31226,DSM0744-577481 ggwanga@esrf.or.tz;wangagg@hotmail.com15. A.J. Mwamanga Private Sector TCCIA Box 9713, DSM 0744-317637 Mwamanga2000@yahoo.co.uk16. M.J. Munissi SAE MAFS Box 9192, DSM 0748-303660 Dpp@kilimo.go.tz17. Wilfred T. Kahwa Trade Officer MIT Box 9503, DSM 0744-501568 Kahwaf@yahoo.com18. Siddik J. Khamis Trade Officer MIT Zanzibar Box 601,Zanzibar19. James Kudema PHS MAFS Box 9071, DSM 0744-49381320. Ernest C. Elias Senior TradeOfficer0744-485649 Siddik100@hotmail.comMIT Box 9503, DSM 2180075 Jitaptanzania@covision.com21. W. Mwaikambo Senior Economist KILIMO Box 9192, DSM 0744-447331 Swilmamb@yahoo.c22. Roshan Abdallah Head, Post EntryPlant QuarantineStation23. M.M. Takrima Senior PlanningOfficerTPRI Box 3024,ArushaMTIMT Box 601,Zanzibar24. S.M. Wangwe PRA ESRF Box 31226,DSM25. William Lyakurwa Executive director AERC Box 62882,Nairobi26. A. Kilindo Economist UDSM Box 35096,DSMom0744-276737 RAIFA52@yahoo.com0747-410234 Mtakrima@hotmail.com2760260 Swangwe@esrf.or.tz0744-267086 Alkilindo@hotmail.com0744-455912 Po-civic@tgnp.co.tz27. Rebeca Muna Treasurer TANGO Box 76225,DSM28. Bamwenda r. Director General TPRI Box 3024, 027-2508042 Gbamwenda@hotmai"Deliberations on WTO Pre-Cancun Sensatization Workshop" 38

Arusha29. Marie Shaba Chairperson TANGO Box 106,Bagamoyol.com0748-265315 Mshabafrikan@hotmail.comTYPICAL ACP, AU COMMON POSITION FORMATS/SAMPLES"Deliberations on WTO Pre-Cancun Sensatization Workshop" 39