Tanzania's Trade with PTA Countries: A Special Emphasis on Non-Traditional Products

"This study investigates Tanzania's trade with other Preferential Trading Area (PTA) countries to observe how the formation of PTA and other trade incentives have affected trade. The results indicate a huge increase of trade in non-traditional goods. Although intra-country trade has increased, intra-industry trade between Tanzania and Kenya (which is analysed in detail) has not increased. Kenya exports more to Tanzania than Tanzania exports to Kenya, which suggests the need for internal adjustment in the production of manufactured products in Tanzania in order for the country to benefit more from the PTA arrangement. Policy considerations in the study suggest urgent improvements in infrastructure and other instruments to encourage increased trade within PTA region."