Manufacturers want trade barriers addressed to deepen EAC trade
Kenya and Tanzania manufacturers are calling for East African Community (EAC) member states to promptly resolve pending non-tariff barriers to enhance intra-trade within the region.
During a trade investment forum held on Thursday hosted by Kenya Association of Manufacturers (KAM) and Confederation of Tanzania Industries (CTI) in Dar Es Salaam, Tanzania, the industry stakeholders called for speedy resolution of non-tariff barriers (NTBs) and the review of the East African Community Common External Tariff (EAC CET).
Trade between Kenya and Tanzania has improved in recent years in favour of the latter and is expected to be boosted by renewed talks after a long period of hard stance.
“The visit by Her Excellency the President of Tanzania, Samia Suluhu heralded a new dawn, in the relationship between Kenya and Tanzania. Let us take advantage of this enhanced friendship, to resolve outstanding non-trade barriers that hinder trade between the two countries. A win for our community, means prosperity for us all,” said Dan Kazungu, Kenya’s High Commissioner to Tanzania.
Kenya’s exports to Tanzania declined from Kshs. 34 billion in 2016 to Kshs. 31.6 billion in 2020 while
Tanzania’s exports to Kenya grew from Kshs. 12.6 billion to Kshs. 27.6 billion in 2020.
EAC Principal Secretary Dr Kevit Desai, urged traders in the region to embrace the Buy East Africa Build East Africa Initiative in order to enhance regional intra-trade
“Through this initiative, governments will be more encouraged, to promote their respective local content. Additionally, it is important that all stakeholders complement each other’s efforts. By working together, the public and private sectors’ relationship will also evolve, and consequently, have a bigger impact on the markets,” said Dr Kevit.
CTI Chairman, Paul Makanza, appreciated the cordial, long-lasting relationship enjoyed by the two Business Membership Organizations and highlighted the potential of the East African Community (EAC).
“KAM and CTI’s long-standing relationship has seen the two BMOs work together, towards industrializing our respective countries, and East Africa. We hope to leverage on this collaboration, to grow our economies. The EAC has a huge potential to improve the livelihoods of our people. Therefore, by working together, we shall have a stronger impact, than as individual countries. Both Kenya and Tanzania, need to eliminate non-trade barriers (NTBs), and conclude the review of the EAC common external tariff (CET),” noted Mr Makanza.
KAM Chairman Mucai Kunyiha, appreciated the role of private sector in regional integration and called for the speedy resolution of impediments to regional trade.
“As at the year 2019, Kenya and Tanzania had GDP values of USD 63.18 billion and USD 95.5 billion respectively. Our bilateral export to GDP ratio is thus estimated at 0.01 for Kenya to Tanzania and 0.003 for Tanzania to Kenya as at the year 2019. The private sectors in the two states must, therefore, play a strategic role in regional integration, which shall in turn, enhance trade,” noted Mr Mucai.
He further added that the EAC Partner States need to create an enabling environment, to drive industrialization in the region by doing away with regulatory overreach which continues to hinder our competitiveness.
KAM is a proponent of Kenya adopting the 35% rate of EAC CET and urges that outstanding NTBs be resolved to drive industrial growth and consequently, increase our productivity.
The Trade and Investment Forum was part of the Tanzania Trade and Investment Mission, being spearheaded by KAM.