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.