EAC States asked to act on trade barriers

By NICHOLAS WAITATHU

KENYA: East African Governments have been asked to fast-track reduction of non-tariff  barriers (NTBs) in the region. East African Affairs, Commerce and Tourism Cabinet Secretary Phyllis Kandie expressed fear that efforts by East African Community (EAC) Partner States to reduce the trade obstacles seem to be faltering.

 “As a region we have been tackling trade hurdles to reduce cost of doing business. However, each time we embark on confronting the identified impediments others emerge. This has continued to frustrate growth in the region and investments,” she said.

She warned that increase in the obstacles has frustrated trade growth, strangled investment endeavours and to a large extent contributed to high levels of unemployment in the region.

Ms Kandie was speaking during the opening of a media sensitisation workshop on the East African Community integration process in Nairobi yesterday. Kandie explained that though the integration process is progressing well the increase in non-tariff barriers remains a threat as they repress development.

“Creation of one single market in the region can translate to massive increased opportunities for investment, trade and employment,” she added. The minister however, hailed the efforts being employed to tackle the bottlenecks, saying it would enhance increased access to cheaper and higher quality goods and promotion of fair trade practices.

Between 2008 and 2012 the EAC secretariat had identified 35 NTBs out of which 12 have been tackled. However, at the same time 16 new ones were introduced increasing the total to 39 NTBs.  Weigh bridges have increased from five to eight between Dar es Salaam and Rusumo — the border with Rwanda and Tanzania — and police checks and road blocks along the Northern Corridor have increased.

The delays at border points and ports account for 30 to 40 per cent of trading costs.

In an earlier interview, Kenya Association of Manufacturer (Kam) Chairman Polycarp Igathe said the cost of doing business is still high owing to the regional governments’ reluctance to eliminate  non-tariff  barriers.

 Legal redress

“Because the bureaucrats are not willing to tackle the trade obstacles, as the business community we are contemplating seeking legal redress at the East African Court of Justice so that the governments can be compelled to employ tough measures to tame the setbacks,” he said on phone. Recently the EAC governments launched the single custom territory as part of the strategy to ease blocks.

Under the arrangement, EAC  Member States have adopted a destination model of clearance of goods where assessment and collection of revenue is done at the first point of entry.  While Kandie said the integration process is progressing well, research indicates that most people in the region either do not know about the process or do not understand fully what it entails.