Browsing: Intra EAC trade

• Non-tariff trade barriers are restrictions trade blocs impose to further their political and economic goals.
• Kenya and Tanzania are working on resolving non-tariff trade barriers that have stifled business between East Africa’s largest economies.
• Kenya is a crucial partner for Tanzania and is the largest source of African Foreign Direct Investment in Tanzania.

The East African Community

Countries have adopted regional trading blocs as a strategy to increase global competitiveness. The East African Community (EAC) member states are dedicated to enhancing economic efficiency and fostering regional integration through strategic investments using established industries.

EAC aims to position the Community as a single investment area, harmonising trade policies, investment incentives, and product standards.

At the beginning of its operations, EAC ended non-trade barriers (NTB) between member countries intending to liberalise trade. However, this affected the NTB imposed by the members, especially Kenya and Tanzania, who are critical traders in the market.…

The CET maximum rate was a realization by the EAC Secretariat on the proposed Common External Tariff (CET) rates of 30 per cent, 33 per cent and 35 per cent classified under the fourth (maximum) band, which include textiles, iron, steel and motor vehicles.

The East African Business Council (EABC) urges the partner states- Kenya, Uganda, Tanzania, Burundi, Rwanda and South Sudan- to adopt the maximum CET tariff trade to spur industrialization and strengthen the regional value chain.

In 2020, the total intra-EAC trade stood at 11.8 per cent, amounting to US$6.39 billion. The proposed 35 per cent tariff is set to boost the trade between EAC member states to US$6.4 billion.…

Since the Common Market Protocol was launched in 2010, trade between East African Community member states has increased by 60.75 per cent from $3.72 billion to $5.98 billion in 2018, the latest trade data show.

Despite non-tariff barriers (NTBs) continuously holding back the region’s potential, the Common Market Protocol has boosted trade in the region by easing the cross-border movement of goods and people.

The East Africa Community Trade and Investment Report shows that the value of intra-regional trade increased by 9.4 per cent to $5.98 billion in 2018 from $5.46 billion in 2017.

The growth was partly caused by EAC countries’ increased preference for trading with each other so as to counterbalance falling demand for the region’s products in European and US markets.

Also Read: Uganda, Rwanda record reduced trade flows

All EAC member states apart from Burundi recorded growth in trade with their regional counterparts, the report showed.…

When President Uhuru Kenyatta stepped out on his Harambee house offices to announce the measures to curb the spread of Novel Coronavirus, no one knew the effect it would have on the East African citizens. In his announcement, the President gave an allowance of 48 hours for non-Kenyans to arrive and be quarantined after which none will be allowed.

While the rules of engagement for a trade block like East African Community has been to allow the free movement of people, goods, and services, Coronavirus has stepped to challenge this notion, with most countries viciously guarding their borders against foreign entry.

In regional bodies like the European Union, the movement of people and goods across the region is becoming more difficult with border chaos being witnessed in countries traditionally with the easiest border crossing exercises.

In East Africa, crossing the boundary is even harder. After Kenya announced the crossing of …