Intra-East African Community trade continued to rise after hitting $10.17 billion in September 2022, according to the Secretariat.
Imports and exports in the seven East African Community Partner States grew from $7.1 billion in 2019 to $9.5 billion in 2021. By September 2022, the trade value was recorded at $10.17 billion, representing a 20 per cent share in global trade.
Non-Tariff Barriers
Peter Mathuki, EAC Secretary General, attributed the increase in intra-regional trade to political goodwill among members of the Summit of EAC Heads of State and the relaxation of COVID-19 restrictions in the region.
“The high-level discussions among the Heads of State had eliminated many Non-Tariff Barriers (NTBs) hampering intra-regional trade and there is hope that this and other factors will help raise the level of trade to at least 40 per cent over the next five years,” he noted.
Since 2007, at least 257 NTBs have been cumulatively resolved. Following the Common Market Protocol summit held in July 2022, the EAC will review and discuss different issues impeding integration in the next Council of Ministers.
Regional ministers in charge of trade and finance set the 4th Band of the EAC Common External Tariff (CET) at 35 per cent.
The CET is one of the key instruments under the Customs Union pillar, which justifies regional integration through uniform treatment of goods imported from third parties.
“From July 2022, imports of locally available goods into the region, such as meat, furniture, and textiles, have been attracting a tariff of 35 per cent. The move aims at promoting local production, value addition and industrialization,” said Mathuki.
He further disclosed that the bloc’s total trade with the rest of the world stood at $62 billion, adding that there was still room for improvement.
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