EAC Secretariat warns regional States against trade barriers

By Luke Anami

Errant East African Community States will soon face penalties, the East African Business Council and Trade Mark East Africa meeting in Nairobi heard on Monday.

EAC countries that introduce new Non-Tariff Barriers (NTB) will face sanctions should a legal mechanism to enforce decisions be put in place.

"We are working on a legal mechanism that will define penalties for member States that introduce new NTBs," Amb Richard Sezibera, EAC Secretary General said during a breakfast meeting with top Chief Executives in the region.

The meeting — held under under the auspices of the East African Business Council and Trade Mark East Africa— discussed how to improve business environment and increase competitiveness in the region.

business environment

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"Each EAC partner State has a committee chaired by its Permanent Secretary on the elimination of NTBs.

These committees are already working on the necessary steps required to eliminate NTBs," he said.

Most of the NTBs that businesses experience in the course of their intra- EAC trade fall under customs, ad-ministrative documentation procedures, immigration procedures and cumbersome inspection requirements.

Others include, police roadblocks, varying trade regulations, cumbersome and costly transiting procedures.

However, their persistence has irked the business community who now want immediate action to limit the number of NTBs.

"We not happy with the pace at which the EAC is handling the reemergence of NTBs," Patrick Obath, Chairman Kenya Private Sector Alliance (KEPSA) said during a press conference.

"That is one of the issues this forum hopes to address," he said.

"Both Customs and Common markets are not operational yet but we want a commitment that there is a conducive environment to encourage cross-border business."

Sezibera while admitting the slow pace of integration, promised to institute legal mechanism to eliminate NTB by September.

"We have issues to do with Customs Union and Common Market that we have not implemented. But that does not mean we are not making any progress," Sezibera said.

"A monitoring committee that involves all stakeholders including the private sector members is already in

place."

Chairman of Kenya Association of Manufacturers Jaswinder Bedi said a legal framework to force the removal of NTBs would facilitate faster movement of goods across border.

Despite the persistence of NTBs, Kenya’s exports to the EAC partner States increased from Sh53,049 million in 2006 to Sh101,312 million in 2010.