Kangile R.J2025-01-112025-01-112024https://www.suaire.sua.ac.tz/handle/123456789/6484PhD ThesisAgricultural global value chains (GVCs) are “organizational systems that operate across multiple nations and are always integrated”. The GVCs commodities link producers to consumers worldwide through a global network of multinational enterprises (MNEs). GVCs trade is managed using trade policies both in producing and importing countries. GVCs trade policies in developing countries, including Tanzania, must optimally deliver social, economic, and environmental benefits to trade participants. The socio, economic and environmental benefits realized sometimes are offset by socio and environmental costs. This happens to all trade policies, whether in trade agreements, trade rules, regulations, or global standards such as certifications. It is thus essential to assess the impact of GVCs trade policies to suggest appropriate policy levers that can optimise social, economic, and environmental benefits. Thus, this study uses coffee and sugar GVCs in Tanzania to assess the impact of certification policy, which is one of the GVC‟s trade policies, the trade policies landscape of the country (trade governance), and the role played by GVCs in ensuring delivery of social, economic, and environmental benefits. Specifically, the study evaluates how governance affects the sugar trade, determines the impact of coffee certification policy on livelihood and environmental conservation and finally analyzes the contribution of the coffee trade to livelihood improvement and gender equity. The study hypothesizes that trade governance does not affect Tanzania's sugar trade and trade policy landscape; coffee certification does not improve household incomes and environmental conservation. Coffee production and trade do not contribute positively to livelihood improvement and gender equity. The study uses data collected from randomly sampled 400 coffee farmers and 375 randomly selected sugar supply chain actors in Tanzania. The study used a mixed method of data analysis. The endogenous switching regression (ESR) model is used to ascertain the impact of the coffee certification policy. Exploratory (factor analysis) and confirmatory (weighted least square regression) models are applied to evaluate the level of trade governance in Tanzania and ascertain its effects on the sugar trade. The Oaxaca– Blinder decomposition and Gini coefficient models evaluate coffee income distribution and how general coffee production and trade contribute to gender equity and livelihood improvement. The major findings are that trade governance is essential in ensuring the delivery of benefits to all participants in trade. The study confirms that governance affects the sugar trade, with the magnitude of its effects being felt differently between farmers and traders. The findings show further that abrupt trade policy change significantly (p<0.05) reduces sugar trade by almost half (47.7%) and lowers the overall level of efforts to invest within the sugar supply chain. The study shows further that the evaluated GVCs certification trade policy does not offer socio-economic benefits but contributes significantly to environmental conservation. This is because the study rejects the hypothesis of certification to improve household income but accepts its contribution to improved awareness and environmental conservation practices among coffee farmers. Additionally, GVCs trade contributes positively to livelihood improvement and gender equity since the study found coffee to have income inequality-reducing effects. Therefore, using sugar and coffee GVCs and one of the GVC policies, certification, the study has confirmed that certification does not optimally deliver social, economic, and environmental benefits to trade participants. However, participation in trade is essential for inclusive socioeconomic benefits. The study confirms further that good sugar trade governance is a panacea for Tanzania to achieve optimal trade policies in the sugar sector. Predictability of the trade policies in the sector is a major factor for allowing forward contracting of imports and/or exports and investments. Thus, the study has provided the importance of trade governance in shaping how countries should implement trade policies. The study recommends ensuring trade policies are stable and predictable for increasing trade and allowing forward contracting and investments. It is also essential to create awareness of institutions and organizations managing the GVCs by encouraging transparency in trade policy administration and practices. The certification policy should be implemented by easing the transmission of price premiums to coffee farmers for an increased supply of sustainably grown coffee, improving coffee farmers‟ livelihood and helping attain environmental sustainability goals within the coffee supply chain. This must be supported with awareness creation and making certification services accessible and cost-effective to coffee farmers. In striking a balance between people and nature, participation in the GVCs trade is encouraged. This is because coffee is an essential crop with an inequality-reducing effect, contributing to livelihood improvement. Investing in supporting the coffee supply chain impacts poverty reduction, as the income earned from coffee favours people experiencing poverty more than other income sources. Participation should be supported through empowerment for equal access to land and credit. Production and trade policies should also be gender responsive by providing opportunities to offer trade facilitation services to increase the participation of women in coffee supply chain activities and control their participation benefitsenValue chainsPoliciesCoffee and SugarImpact of agricultureTrade policiesThesis