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East African Bloc Commits To Making Regional Trade Cheaper

East African Community member states have agreed to make trade between them and with other countries cheaper, faster and simpler in a significant boost for economic integration in East Africa and continental trade facilitation.

Meeting in Nairobi recently, representatives of the nations who are members of the East African Community customs union and common market (EAC) said they would implement trade facilitation reforms including reducing “non-tariff barriers” such as burdensome and incompatible product regulations.

“I feel so proud because this is an opportunity for the EAC countries, many of which are landlocked, to sell their products within the region, in Africa and across the whole world,” said Frederick Ngobi Gume, Uganda’s Minister for Cooperatives, whose country is currently chair of the EAC.

The EAC member states that agreed to ease trade include Burundi, Kenya, Rwanda, the United Republic of Tanzania, and Uganda.

The  United Nations Conference on Trade and Development UNCTAD Secretary-General Mukhisa Kituyi and also a Kenyan former trade minister moderated the Ministerial meeting, which took place in the first Africa eCommerce Week.

“The EAC is a driving force in Africa, displaying good practice in the implementation of trade facilitation reforms. The region has shown strong leadership, and I am confident this will continue for smooth implementation at both national, regional and, eventually, continental levels,” Kituyi said.

Speaking at the same event ,Frank Martsaert, Chief Executive Officer of TradeMark East Africa (TMEA) said Trade Mark East African will continue working with the EAC secretariat to ensure that more tangible products in terms of easing trade in the region is achieved.

“We have had strong partnership with the EAC Secretariat and Partner States to increase trade and deepen the regional integration agenda through investment in hard and soft trade infrastructure. Together with UNCTAD, we look forward to continued partnership and support to the region’s trade facilitation agenda as highlighted in the Ministerial declaration,” Martsaert said.

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The EAC move comes after most African countries signed the African Continental Free Trade Agreement in March 2018.

The AfCFTA envisages establishing an Africa free trade area by building on regional blocs such as the EAC where trading nations already work together.

The EAC declaration also aligns with the World Trade Organization’s Trade Facilitation Agreement which entered into force in February 2017.

In the declaration, EAC countries commit to supporting National Trade Facilitation Committees (NTFCs) as the main vehicle for coordinating the implementation of the trade facilitation measures at the national level.

Intra-EAC trade, while low compared to regions outside Africa, is the highest among regional economic communities in Africa at 19.35% of exports.

“UNCTAD has supported the institutional architecture of trade facilitation in the East Africa region for many years,”  Kituyi said.

“For example, we have helped launch trade portals, which simplify trade procedures and reduce the time and cost of trade transactions in Kenya, Rwanda and Uganda and soon in Tanzania.”

The Nairobi meeting, thought to be the first time a regional bloc in Africa has gathered at this level to pledge trade facilitation reforms in light of the AfCFTA and the WTO’s Trade Facilitation Agreement, was organized by UNCTAD and the EAC Secretariat with the support of TMEA and the International Trade Centre.

 

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