EAC trade grows by 19% (07/08/07)

 

Trade among Tanzania, Kenya and Uganda has grown by about $22 million (Shs36 billion) since the adoption of the EA Customs Union in January 2005, Tanzania Minister for East Africa Cooperation Ibrahim Msabaha has said.

 
 
Dr Msabaha told the Tanzanian Parliament last week that business among the original EAC countries has increased by 19% from $95.4 million (Shs175 billion) in 2004 to $117.1 million (Shs193 billion) last year, despite all the huddles being faced in implementing the customs union.

Tanzania's trade volume with the other two neighbours grew by 23.4%, earning $174.4 million last year up from $137.7 million in 2004.

The growth in the volume of trade is a clear illustration that the customs union has brought more efficiency and created an attractive environment for trade within the region. This is expected to grow even further with the inclusion of Rwanda and Burundi in May.

Dr Msabaha however said the figures would have been even higher had not been for some major obstacles including non tariff barriers tedious and lengthy documentation procedures, bureaucratic immigration process and obstacles at inspection centers among others.

Other issues, he said, are road blocks, irregular regulations within member countries and multiplicity of licensing institutions.

To address the problems, the minister said the EAC has formed two committees, including the National Non-tarrif Barriers Monitoring Committee, in every member country to resolve the problems. The committees were launched in June.

During 2006/7 the EAC established four commissions, and four protocols were passed and signed in 2007.

The commissions formed included; the East African Science and

Technology Commission, East African Civil Aviation Safety and Security commission, the East African Health Research Commission.

Contributing to the plenary debate, Legislator Zitto Kabwe Zuberi blamed Kenya for pulling out of an agreement to have member states negotiate the EPA through EAC. He said Uganda joined Kenya and the two are now using the Common Market for East and Southern Africa instead of the EAC.

Dr Msabaha said the three governments have agreed to have talks in Uganda on August 26 to see the possibilities of reverting to EAC negotiations.

Source: The Monitor

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