A recent report has highlighted the significant costs incurred by the East African Community (EAC) due to unresolved non-tariff barriers (NTBs), totaling an estimated $16,703,970. These barriers, which include import quotas, subsidies, customs delays, and technical obstacles, have hindered intra-EAC trade, impacting a total trade value of $94,918,000 according to the EAC Regional Meeting Committee report of 2023. The report further reveals a stark decrease in trade by an average of 58 percent.
As of February 2024, Tanzania and Uganda have been identified as having the highest number of unresolved NTBs, with Tanzania facing four issues and Uganda three, while Kenya and South Sudan each have one unresolved barrier.
The EAC Sectoral Council of Trade, Industry, Finance, and Investment convened in Arusha on February 9 under the chairmanship of William Anyuon Kuol, the Minister for Trade and Industry of South Sudan, and resolved to address the NTBs by June. The council urged partner states to engage in bilateral meetings to resolve these obstacles.
EAC Secretary-General Peter Mathuki highlighted the growth of intra-trade among EAC partner states, reaching $9.4 billion in the financial year 2022/23, representing a 7.98 percent increase. However, NTBs persist as a threat to regional trade, necessitating action from ministers to address issues such as denial of preferential market access, non-ratification of key EAC instruments, cross-border challenges, and resolution of existing NTBs.
Tanzania and Kenya face NTBs related to motorcycle accessories and excise duty on confectionery, respectively. Kenya’s exports of cigarettes and animal products to Tanzania are also impeded by higher excise duties and local content requirements. Uganda, meanwhile, has imposed barriers on Kenyan juices and tissue paper, citing concerns over imported sugar and packaging standards.
Efforts to resolve these barriers have been ongoing, with the EAC Secretariat convening meetings to harmonize procedures and the development of a mobile app to report, monitor, and eliminate NTBs within the community. Benedict Musengele, director of Trade and Customs at Trade Mark Africa, emphasized the app’s role in streamlining the reporting process and facilitating quick resolution of trade obstacles.
Despite these initiatives, challenges remain, underscoring the ongoing need for collaborative efforts among EAC member states to address NTBs and promote seamless trade within the region.
