Private sector urged to support war on NTBs in EAC
Saturday March 24 2018
A one-stop border post at Kenya-Tanzania border in Lunga Lunga. The facility is expected to fast-track cross-border movements of goods and people. PHOTO | NMG
The private sector has been blamed for creating non-tariff barriers, a major hindrance to free trade in the East African Community.
Trade experts and government officials who attended the East African Business Council’s meeting in Nairobi to mark 20th anniversary said businesses have prioritised their personal interests to protect their enterprises, which has slowed down regional integration and free trade.
Kenya’s Industry, Trade and Co-operatives Cabinet Secretary Adan Mohammed said that although there is progress in elimination of NTBs and promotion of free movement of goods in the region, the snail’s pace of implementing decisions made on elimination of trade barriers is because majority of private sector players are looking at how best the process benefits them.
“There are many trade opportunities opening up on the continent and globally, but to enjoy these opportunities, EAC should remain united and face the competition as a bloc in order to face the bigger market,” he said.
Uganda’s Prime Minister, Ruhakana Rugunda said for EAC partner states to trade freely and competitively with each other, there is a need to address concerns openly and transparently.
“This way implementation will be more achievable. There should be a political will and transparent participation by both parties from the government and the private sector,” said Dr Rugunda.
Peter Munya, Kenya’s Cabinet Secretary, East African Community and Northern Corridor noted the need for proper follow up and representation by both stakeholders in key decision-making at the regional level in order to implement the decisions made without dispute.
“In order to see smooth flow of business in the region, the key agenda for the integration should be the harmonisation of laws. Like in the other regional communities, EAC should come up with overriding laws on decision made that will automatically make the national laws redundant. This way, implementation will be faster,” said Mr Munya.
“Also the region need to come up with one institution that is responsible for clearance of goods at the border points to avoid the national interests that are experienced when it is done by each country’s institution,” he added.
Role of ministers
These, he said, are the matters the Council of Ministers will deliberate on and come up with a decision in the near future.
The EABC is marking 20 years of representing private sector interests in the EAC integration under the theme, “Beyond East Africa, Moving from Aspiration to Action.”
Lilian Awinja, EABC chief executive officer, said moving forward, the EAC will move to the next level but there is need for the integration process to move faster so that partner states can realise the opportunities under the Common Market Protocol.
She noted that for the past 20 years, the EABC has been actively working with the business partners, EAC governments and the EAC secretariat in decision-making on matters touching on free trade in the region.