East African Community charts way forward to increase regional and global trade competitiveness
ECA Press Release No. 23/2011
Addis Ababa, 22 March 2011 (ECA) - The high cost of doing business in the East African Community (EAC) is compromising the competitiveness of the region, according to a study on Capacity Building for International Negotiations and Trade Facilitation in the East African Community.
Commissioned by the United Nations Economic Commission for Africa (ECA), the study's findings availed to the Information and Communication Service of the ECA were validated at a recent expert's meeting held in Moshi, Tanzania, from 3-4 March 2011.
Thirty participants attended from the five EAC member countries: Burundi, Kenya, Rwanda, Tanzania and Uganda.
“The focus of the study was key issues surrounding the trade facilitation environment in EAC countries, which largely define the business environment for cross border trade as well as participation in international negotiations and efforts for reforming the business environment,” says its author, Tindyebwa Amos.
The study points out that the region's capacity for international negotiations is generally weak and is hindered by limited resources.
The EAC countries acknowledge the importance of trade facilitation in their region, according to the study, but they are seriously concerned about the huge investment for much-needed infrastructure such as roads, railways, customs modernization, ICT and human resource development.
The Study notes that despite several reforms in the trade facilitation environment such as harmonization of customs laws, standards and regulations among the EAC Partner States, there is high persistence of Non Tariff Barriers (NTBs), such as weigh bridges, road blocks, unwarranted inspections and prohibitive standards which inhibited the smooth flow of intra EAC trade.”
Joseph Atta-Mensah, Director of Regional Integration, Infrastructure and Trade Division, UNECA, corroborates the study's findings, saying that barriers to intra-regional economic-community trade development remained numerous despite the continent's determination.
“These barriers,” he says, “are mostly the consequences of the economic structure of the countries: institutional policies, weak infrastructure, weak financial and capital markets and failure to implement trade protocols.”
The 69-page report is divided into several chapters that explore and examine regional issues such as integration, facilitation environment, participation in international negotiations, and export promotion procedures and strategies.
The study proposes recommendations that include elimination of non-tariff barriers (NTBs) and strengthening NTBs monitoring mechanisms, improving the quality of trade facilitation infrastructure, strengthening institutional coordination mechanisms, strengthening export promotion strategies and programmes and improving capacity for international negotiations.
“The study has come at a time when the East African region has attained fully fledged Customs Union and commenced implementation of the Common Market,” says Mr. Peter Kiguta, Director General of the Community for Customs and Trade.
“The information will help to bolster investment that is mutually beneficial and foster the overall competitiveness of EAC in both regional and global markets,” he adds.
Issued by:
ECA Information and Communication Service P.O. Box 3001
Addis Ababa Ethiopia
Tel: 251 11 5445098 Fax: +251-11-551 03 65 E-mail: ecainfo@uneca.org
1 of 2 3/5/2014 12:00 PM
Web: www.uneca.org
