· There is a growing concern among members of the US congress about the political and economic developments in Tanzania.
· Several commercial disputes exist between US and Tanzania.
· The four-year dispute with Symbion Power, an American power producer that develops and operates projects in several African countries is central among them
There is a growing concern among members of the US congress about the political and economic developments in Tanzania. House resolution 1120 Cites reports of corruption and harassment of U.S. companies operating in Tanzania. Several commercial disputes exist between US and Tanzania. The four-year dispute with Symbion Power, an American power producer that develops and operates projects in several African countries is central among them. The dispute is about the breach of a 15-year power purchasing agreement for the Ubungo power plant. The company alleged that the Tanzanian annulled the contract without giving cause nor compensation despite the efforts by the company to seek a mutually agreed to solution.
In the submission to the Office of the United States Trade Representative, Symbion questioned the eligibility of Tanzania to export duty-free apparel to the U.S under the African Growth and Opportunity Act (Agoa) .As an AGOA beneficiary, Tanzania exported apparels worth $40 million to the U.S, supporting thousands of Tanzanian jobs.
The resolution by the Congress pointed out that Tanzania has adopted and enforced repressive laws limiting freedom of the press, and expression, assembly, and association. Human Rights Watch has also alleged Tanzanian government of repression of the political opposition and civil society obstructing free and fair elections.Tanzania’s general election is scheduled for October 28. President Magufuli’s presumed re-election will usher in his second term.
It is reported that the US House of Representatives may soon vote for H. RES. 1120, sponsored by a leading Democrat Rep. Karen Bass (D-CA) and Rep. Chris Smith (R-NJ). The passing of the resolution will empower the Trump administration to take the necessary legal justifications to impose economic and other punitive sanctions on Tanzania. Sanctions could impact several economic activities particularly major mining firms with operations in Tanzania.
