The diagnostic trade integration study(DTIS) update identifies the trade related constraintsholding back Malawi from diversifying and deepening itsproduction base, and increasing trade. The DTIS updateidentifies and quantifies specific trade costs thatdetermine the availability and price of inputs and theability of producers to get their products to regional andinternational markets. The report focuses on tariffpolicies, regulatory issues impacting on trade, tradefacilitation and logistics, and policies affectingagricultural trade and trade in services. Recognizing thatthe (enhanced) integrated framework and the DTIS (includingthe 2003 DTIS for Malawi) have not been effective inaddressing many of the broader issues requiring large-scalephysical investments in most countries, this DTIS updatefocuses on specific trade related policy and regulatoryissues within the mandate and policy space of the ministryof trade and the national implementation unit or similarimplementation mechanisms. In this context, the report isstructured as follows: chapter one gives introduction.Chapter two outlines the current macroeconomic position andthe level of trade openness, summarizes the status of thebusiness enabling environment. Chapter three describesMalawi's current trade policy with a detailed review ofthe existing tariff schedules. Chapter four addresses arange of the key regulatory issues that raise costs for allproducers in Malawi. Chapter five looks in depth at how thetrade and regulatory policies within the agricultural sectorimpact on competitiveness. Finally, chapter six addressesthe important issues of trade in services through focusingon professional services such as engineering, accounting,and law.