Tanzania, Turkey sign pact on trade relations

The Tanzanian and Turkish governments on Monday signed a business agreement targeting specific areas of cooperation between the two partner states.

The agreement was signed in Dar es Salaam by minister for Industry, Trade  and Marketing, Dr Abdallah Kigoda, on behalf of Tanzania and the Turkish minister for Food, Agriculture and Animal Husbandry, Mr Mehd Eker.

Dr Kigoda identified the area as trade cooperation which aims at strengthening the five-year bilateral trade agreement signed in 2005 and renewed in 2010.

“The renewed trade agreement is expected to enhance the trade and investment cooperation,” said Dr Kigoda. 

The agreement will also push up trade volumes between the two parties, given the fact that Tanzania exports dropped from Sh2, 930 million in 2005 to Sh1, 906 million in 2011, while imports from Turkey grew from Sh9, 454 million in 2005 to Sh194, 920 million in 2011.

Tanzania exports include agricultural semi-processed products while imports from Turkey are high value industrial products.

“Investment is needed to add value to our agricultural products,” stressed Dr Kigoda.
There would also be formed a joint business council mandated to explore trade opportunities in both countries and share the information to relevant parties.

At the same time, Turkey proposed the establishment of a free trade area (FTA) with the East African Community.

“The government of Tanzania will consult the EAC member states on the proposal,” said Dr Kigoda.

The agreement addresses legal issues such as assuring protection to Turkish investment in the country, double taxation and prevention of fiscal evasion with respect to taxes on income.

Mr Eker said the agreement should help increase the volume of trade between the two countries.
Source: The Citizen, www.thecitizen.co.tz, reported by Felix Lazaro and Victor Karega in Dar es Salaam

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