East African Community partner states posted progress in eliminating non-tariff barriers (NTBs) in the first five months of the year with the number of new barriers falling gradually, which reduced the cost of doing business and opened up more opportunities across the bloc.

But the five countries of Kenya, Uganda, Tanzania, Rwanda and Burundi continued to erect new barriers, frustrating the implementation of free trade in the region.

Countries are involved in long standing trade disputes that could further complicate movement of goods and services.

The latest report by the EAC Sectoral Ministers Council on Trade, Industry, Finance and Investment said that since the beginning of this year, up to 10 NTBs have been resolved. However, nine NTBs were reported as new in the same period. Just who is erecting new barriers and what are the complaints?

It is expected that more NTBs will be resolved by the end of this year. Cumulatively, 62 NTBs out of over 100 have been eliminated by partner states since last year, the report says.

As a result, businesses could benefit from a reduction in the cost of doing business in the coming months with the lessening of NTBs — mainly weighbridges, roadblocks, poor infrastructure, unnecessary delays at border posts, and lack of harmonised import and export standards, procedures and documentation.

READ: Trade between EAC countries at new highs, but numbers still low

Last year, the EAC Secretariat reported that a total of 55 NTBs were resolved within a period of 12 months, up from 36 that were resolved in 2012. However, 24 NTBs are unresolved.

The elimination of the NTBs has been attributed to reduced or removal of the number of weighbridges and roadblocks on both the Northern and Central Corridors; reduced procedures and documentation processes at the ports of entry through the opening of One Stop Border Posts; the introduction of the single customs territory and the single electronic window at the ports.

READ: One-stop border posts to be complete this year

However, despite the progress, the partner states are yet to completely eliminate NTBs. East Africa’s standing as one of the continent’s most attractive destinations for foreign investment has recently come under threat from other blocs.

The blocs are benefiting from the region’s NTBs, lengthy licensing processes and sluggish commercial dispute settlement procedures to improve their competitiveness, the World Bank said in a recent report.

Andrew Luzze, executive director at the East Africa Business Council, said the reduction in the number of NTBs in the region is a result of the commitment by all the EAC presidents in ensuring that measures are in place to reduce unnecessary delays at the border posts on the main corridors (Northern and Central) and the ports.

“This means that the presidents are appreciating the importance of cross border trade in the region as required by the Treaty,” said Mr Luzze. “NTBs are easily reported and quickly resolved because the secretariat has put in place an NTB innovation framework,” he added.

In a recent interview, Richard Sezibera, the EAC secretary general said that the issue of NTBs will always be there because in trading arrangements, there will always be disagreements and disputes and new NTBs will always emerge.

Therefore, to address this, EAC has set up a trade disputes committee to track emerging NTBs and help resolve them. “This is working to ensure that reported NTBs are eliminated in accordance with the EAC Treaty,” said Mr Sezibera.

The newly reported NTBs include the introduction by Tanzania of $500 as a road toll for all trucks registered in Burundi when they ship cargo through the country while Burundi charges $152.

READ: Tanzania, Burundi have most checks to free trade

Although Tanzania agreed to remove the $500 charges immediately during the Sectoral Council’s meeting, the ministers agreed on the need for harmonisation of transit charges in the region and directed the Secretariat to fast track the harmonisation process.

Kenya reported that Tanzania discriminates East African Breweries Ltd’s products giving the brewers in the country an upper hand.

Kenya also reported that there are numerous monetary charges required by various agencies in Tanzania on exports of dairy products from Kenya. Tanzania on its part argues that all Partner States have different charges, which are yet to be harmonised in the region.

The ministers directed the EAC Secretariat to compile a list of fees charged on dairy imports by agencies and recommend the way forward in regard to the future treatment of these fees and levies.

Tanzania was also on the spot for re-introducing a yellow fever vaccine requirement at Namanga border and Kilimanjaro International Airport. The matter has been referred to the Sectoral Council on Health for further guidance.

Uganda accused Kenya of continuously flouting the EAC rules by imposing trade barriers particularly in relation to the sugar industry and making it mandatory for all sugar importers to obtain prior permission from the Kenya Sugar Board for any sugar import, particularly from Uganda.

“The requirement for permits is a control measure to monitor sugar imports and deter smuggling into the country, which causes injury to the local sugar manufacturers,” said Kenya in response.

Tanzania complained that to date, the rice originating from the country is charged full import duty when exported to Uganda and Rwanda on the ground that Tanzania had imported rice without paying EAC CET rate during the financial year 2012/13.