Bill proposing cut to EAC trade barriers gets priority
Wednesday March 18 2015
The regional assembly will give priority to the passage of a new law on the elimination of non-tariff-barrier (NTBs) to end protectionism that has hindered smooth trade among partner states of the East African Community (EAC).
East Africa Legislative Assembly (Eala) Speaker Daniel Kidega said the Elimination of Non-Tariff Barriers Bill, 2015 would be fast-tracked to compel states to eliminate the numerous NTBs and boost integration.
“NTBs have consistently interfered with the progress of integration. I am particularly elated that the Council of Ministers is now considering a regulatory framework to reverse the trend following the recent introduction of the Bill at Eala,” he told a session of the third Assembly of the Eala in Bujumbura on Monday.
“This is going to be one of the priority Bills of the Assembly this year. It is hoped that once enacted, it shall be assented to speedily as Community Act to ease business and spur free movement,” the Speaker said.
The region has lately witnessed a surge in disputes as partner states differed over administrative measures deemed injurious to free trade.
Kenya and Tanzania are for instance under renewed pressure to harmonise their port procedures and charges to ease flow of shipment to landlocked states in the trade bloc.
A recent audit of operations at the Mombasa and Dar es Salaam ports revealed challenges to traders from Burundi, Rwanda and Uganda which affected the overall performance of trade in the region.
“The two ports could consider harmonising their port charges, grace period and penalties, in view of the implementation of the EAC single customs territory,” Burundi said in a new report to the bloc’s secretariat.
“The two countries should consider allowing clearing and forwarding agencies to go to work at Dar es Salaam and Mombasa ports.”
The two ports are the main gateways to the East African region and also service markets in South Sudan and the Great Lakes region, handling key items including fuel, consumer goods and other imports as well as exports of tea and coffee from the region.
READ: Kenya, Tanzania under pressure to harmonise port operations
“Dar es Salaam and Mombasa ports, should establish one terminal for all transit containers for EAC countries. For example, you will see at the Jomo Kenyatta International Airport in Nairobi that there is a window for EAC citizens only,” said Burundi further in the update published by EAC secretary-general Richard Sezibera last month.
The challenges cited by Burundi added to a list of concerns by landlocked members of the bloc who felt disadvantaged.
A long-running feud between Ugandan traders and Kenyan authorities over the auction of uncollected cargo at the Mombasa port has already escalated to the EAC leadership amid claims of unfairness.
Uganda has accused Kenya of imposing a new non-tariff barrier by “selectively auctioning” Ugandan goods held at the port of Mombasa.
In a recent status update to the EAC on trade with Kenya, Uganda also raised concern over increased impounding of suspected counterfeit goods meant for its market at the port.
