VZCZCXRO8191
PP RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHDR #0068/01 0160330
ZNR UUUUU ZZH
P 160330Z JAN 07
FM AMEMBASSY DAR ES SALAAM
TO RUEHC/SECSTATE WASHDC PRIORITY 5346
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY PRIORITY
RUEHDS/AMEMBASSY ADDIS ABABA PRIORITY 3108
RUEHJB/AMEMBASSY BUJUMBURA PRIORITY 2460
RUEHKM/AMEMBASSY KAMPALA PRIORITY 2901
RUEHLGB/AMEMBASSY KIGALI PRIORITY 0892
RUEHNR/AMEMBASSY NAIROBI PRIORITY 0430
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 DAR ES SALAAM 000068 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT AF/EPS FOR THASTINGS, AF/E FOR BYODER 
ALSO FOR EB 
DEPT PASS TO USTR FOR WJACKSON AND TO COMMERCE 
ADDIS FOR AU MISSION 
 
E.O. 12958: N/A 
TAGS: ETRD ECON TZ
SUBJECT: TIFA: TANZANIA WANTS TO CONSULT WITH EAC PARTNERS 
 
REF: A. STATE 01299 
 
     ¶B. DAR ES SALAAM 1722 
 
SUMMARY 
-------- 
¶1. (SBU)  Dr. Mrs. Stagomena Bamwenda, recently appointed 
Permanent Secretary at the Ministry of Industry and Trade, 
assured EconCouns January 10 that the Government of Tanzania 
(GOT) is studying the proposed draft language of a Trade and 
Investment Framework Agreement (TIFA) between the East 
African Community (EAC) nations--Tanzania, Kenya and 
Uganda--and the United States.  Bamwenda indicated however, 
that Tanzania is moving cautiously to be certain that the 
full ramifications of the terms of the TIFA are clearly 
understood, particularly in light of the ongoing expansion of 
the EAC.  Bamwenda suggested the Kenyan, Ugandan and 
Tanzanian representatives may want meet on the sidelines of 
the upcoming African Union trade meeting in Addis Ababa 
(January 15 to 16) before holding discussions with the U.S. 
delegation.  End Summary. 
 
Personnel Changes at the Ministry 
--------------------------------- 
¶2. (SBU)  While Tanzania remains interested in principle in a 
Trade and Investment Framework Agreement (TIFA) with the 
United States, the appointment of a new Minister for Industry 
and Trade, Basil Mramba, in October 2006 (Ref B) and the more 
recent change in the Permanent Secretary position at the 
Ministry of Industry and Trade, has resulted in a slowing of 
the momentum toward signing a TIFA with the EAC countries as 
exhibited by Tanzania's former Minister of Industry and Trade 
(MIT), Nazir Karamagi.  Dr. Stagomena Bamwenda, who was 
appointed Permanent Secretary of MIT on December 17, 2006, 
received and reviewed the draft TIFA text in early January, 
following EconCouns discussions with the Director of Trade, 
John Mhina, on December 28, 2006. 
 
EAC Three Need to Consult First 
------------------------------- 
¶3. (SBU)  Bamwenda told EconCouns on January 10 that her 
Ministry and other concerned GOT ministries need "more time" 
to review the draft text to be certain that it would not 
conflict with the GOT's obligations in other multilateral 
organizations including the EAC, the Southern African 
Development Community (SADC) and the World Trade Organization 
(WTO).  EconCouns explained that a TIFA would in no way 
conflict with progress in the Doha Round or other WTO fora; 
rather the TIFA Council meetings provide a concrete 
opportunity to discuss and often make progress on WTO issues. 
 While Bamwenda acknowledged that she saw the value in such 
an approach, she emphasized the importance of closely 
studying the draft language of the TIFA text and of 
consultations with the respective trade representatives of 
Kenya and Uganda.  "Perhaps Kenya and Uganda are farther 
along in their internal discussions of a TIFA with the United 
States," she noted.  Bamwenda suggested the logical next step 
would be for Tanzania, Kenya and Uganda to first meet and 
discuss among themselves on the sidelines of the Addis Ababa 
African Union (AU) meeting on either January 15 or 16. 
"Following that meeting, we could perhaps seek out the U.S. 
delegation if we have further questions or need 
clarifications about the TIFA draft language," Bamwenda 
suggested. 
 
Comment 
------- 
¶4. (SBU)  Permanent Secretary Bamwenda was promoted to this 
new position as MIT Permanent Secretary from her previous 
post in the Deputy Permanent Secretary slot at the Ministry 
of Planning and Economy.  She is known as a thorough economic 
technician, who played a key role in developing the "Business 
Environment Strengthening for Tanzania" (BEST) program that 
is serving as an investment climate guide for potential 
domestic and foreign investors.  Bamwenda will be attending 
the January 15 to 16 meetings in Addis, although she could 
not confirm that Minister Basil Mramba would also attend. 
Post believes that Bamwenda will encourage her Kenyan and 
Ugandan counterparts to first discuss the TIFA among 
themselves in Addis before approaching or suggesting a 
meeting with the U.S delegation.  Bamwenda appeared sincerely 
 
DAR ES SAL 00000068  002 OF 002 
 
 
interested in what a TIFA could potentially offer, while also 
exercising caution that the terms of the draft TIFA text be 
thoroughly understood before Tanzania makes any commitment. 
RETZER