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

• 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