EAC Integration Faces Setback Due to Non-Tariff Barriers

The East African Community’s ambition for a unified and borderless market is being severely hampered by persistent non-tariff barriers (NTBs), according to recent discussions among business leaders in Nairobi.

These barriers, which include regulatory inconsistencies, border delays, high logistics costs, and payment difficulties, are a major reason why intra-EAC trade remains a mere 12.5 percent of the bloc’s total trade, amounting to only $19.7 billion.

A prime example of this challenge is Kenya’s recent imposition of a substantial sugar import levy, which has significantly impacted Uganda’s sugar industry. This move, despite the EAC Common Market Protocol, highlights a worrying trend of protectionist policies that undermine regional economic cooperation.

The reliance on NTBs to protect domestic industries demonstrates a fundamental obstacle: a lack of a regional mindset among partner states. This protectionist stance fuels the very barriers that prevent the free movement of goods and capital, which are essential for realizing the EAC’s potential.

While eliminating NTBs is often cited as a solution, it is argued that this broad approach overlooks the root cause: protectionism itself. A genuine shift towards a regional perspective is crucial for overcoming these obstacles.

Achieving this requires intentional efforts from partner states to foster free trade. This involves taking concrete steps such as harmonizing domestic laws, eliminating discriminatory taxes, and digitizing customs and payment systems. Failure to address these issues could lead to the “stillbirth” of the East African Community dream, normalizing exclusionary economic practices.

Source: https://www.monitor.co.ug/uganda/oped/editorial/make-sure-eac-dream-doesn-t-suffer-stillbirth-5562966