Trade Policy at Work

Revenue Implications of the EC-EAC EPA: the Case of Tanzania

The issue of revenue implications of EPAs on the African, Caribbean and Pacific (ACP) countries has been widely debated, as the development implications of the reduction in government revenue that will result from the elimination of customs duties. EAC member countries’ high reliance on trade taxes as a source of government revenue is a threat to the development objectives of these countries, if alternative sources are not found.