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1 Introduction 1
2 Methodological Approach 4
3 The Concept of Economic Partnership Agreements: Objectives, Regulatory
Framework and Political Economy of Negotiations 6
3.1 Co-operation between the EU and ACP Countries: Background 6
3.2 Reforming Economic and Trade Relations between the EU and the ACP Countries 7
3.3 Status of European Preferential Trade Arrangements - Implications for EPAs 9
4 Fiscal, Economic, and Social Impact of EPAs 15
4.1 The Current Trade Regime 16
4.1.1 Trade Policy 16
4.2 Fiscal Impact 18
4.2.1 Background and Methodological Approach 19
4.2.2 Estimate Results 20
4.2.3 Conclusions on Fiscal Effects 21
4.3 Economic Impact - Risks and Opportunities for Tanzania 22
4.3.1 Structure and Composition of External Trade 23
4.3.2 Implications of EPAs for Tanzanian Producers 25
4.4 Social Implications 30
4.5 Recommendations 31
5 Preparation of EPA Negotiations: The Multilateral and National Level 32
5.1 Preparations for EPA Negotiations at the Multilateral Level 32
5.1.1 The EU's Negotiation Structure 33
5.1.2 The ACP's Negotiation Structure 34
5.2 Preparations of the Negotiations at the National Level 34
5.2.1 The Current State of Preparations of the Negotiations in Tanzania 35
5.2.2 Structure for the Preparation of the Negotiations in Tanzania: Roles and
Responsibilities 35
5.2.3 The Way Forward: A Task Force for EPA Negotiations 36
5.3 Involvement of Non-State Actors in the Preparation of Negotiations 37
5.3.1 Internal Constraints for NSA Involvement 37
5.3.2 External Constraints to NSA Involvement 40
5.3.3 Fostering the Involvement of NSAs: Some Recommendations 40
5.4 Trade Capacity Building and further Recommendations 41
6 The Regional Dimension of EPAs 43
6.1 The Role of Existing Regional Integration Initiatives in lthe l11'A Negotiations 43
6.1.1 Required Qualifications for ACP Regions 43
6.1.2 Opportunities and Risks for Regional Initiatives in the EI'A l'rocess 44
6.2 The Case of the East African Community (EAC) 45
6.2.1 Internal Structure and Integration Efforts 45
6.2.2 State of EPA Preparations 46
6.2.3 The Way Forward: Challenges and Recommendations 48
7 Conclusions and Recommendations 50
Bibliography 53
Annexes 55
Tables, Graphs and Boxes in the Main Text
Table 1: Distribution of Interview Partners 5
Table 2: Import Duties by Major Commodity Groups 17
Table 3: Revenue Impact of Free Trade Agreements with the EAC and the EU 20
Table 4: Value of Exemptions by Category of Beneficiaries in Fiscal Year 2000/01 20
Table 5: Imports by Main Product Categories in 2000 25
Graph 1: Tanzania's Trade Balance 1996-2001 23
Graph 2: Structure of Traditional Exports (Nov-Oct 01/02) 24
Graph 3: Structure of non-Traditional Exports (Nov-Oct 01/02) 24
Graph 4: Structure of Total Exports (Nov-Oct 01/02) 25
Graph 5: Structure of Imports 26
Box 1: The Political Economy of Economic Partnership Agreements 13
Box 2: Export Processing Zones 17
Box 3: Potential Revenue Implications for Zanzibar 21
Box 4: Risks and Opportunities as from the Perspective of Tanzanian Manufacturers 28
Box 5: Different Levels of Co-ordination among NSAs 39
Box 6: What does Trade Capacity Building Mean? 41
Box 7: The Geographical Configuration of an EPA: Options for EAC Member States 48
Tables in Annexes
Table A 1: Interviews Conducted during the Desk Study,
November 2002-January 2003 57
Table A 2: Interviews Conducted during the Field Study in Tanzania,
February-April 2003 57
Table C: The General System of Preferences of the EU in Comparison
with the EPA Concept 67
Library of Congress Subject Headings for this publication: Free trade Tanzania, European Union countries Commerce Tanzania, Tanzania Commerce European Union countries, ACP-Group countries Commerce European Union countries, European Union countries Commerce ACP-Group countries