Africa-Press – Eritrea. AS Regional Heads of State sit for the 18th Extraordinary Summit virtually tomorrow, the East African Business Council (EABC) is now pushing for a bilateral meeting to eliminate all remaining Non-Tariff Barriers (NTBs) between Kenya and Uganda.
According to the regional apex body of private sector associations and Corporates from the six East African countries, a quick convening of a bilateral public-private dialogue meeting between the Partner States seeks to find win-win lasting solutions on the current stalemate to boost trade, economic growth and jobs for the prosperity of all East African citizens.
In a statement availed to the Media yesterday, the regional council urged the two countries to hold a bilateral dialogue and avoid a trade stalemate due to the imposition of NTBs.
“We believe that retaliation is not and should not be the ultimate solution but rather the two sisterly nations should meet and resolve all outstanding issues amicably,” it said.
The EABC further highlighted that Intra-EAC trade was approximately 15 per cent, noting that such a low figure was partly attributed to persistent denials of preferential market access to EAC originating products and any new trade protection measures will likely reduce trade volumes and values further.
It said: “It should be noted that not only do NTBs raise transaction time & amp; the cost of doing business across borders but also sets back the competitiveness of products originating from the EAC region.”
According to the EABC, Kenya subjects sugar imports from Uganda to limited permits and through numerous bilateral meetings, it was agreed that Uganda would export 90,000metric tons.
This has however not been the case as between January and October this year; only 37,000 metric tons were exported, instead of 65,000.
Additionally, some Ugandan Dairy Products are still being blocked from freely accessing the Kenyan Market, as the number of import permits issued by Kenya Dairy Board (KDB) in 2020 and 2021 declined to between eight and 10 per cent of the number of permits issued in 2019.
The regional business council has in the same vein urged all EAC Partner States to eliminate all sorts of trade barriers imposed on goods produced from within the EAC bloc as NTBs hinder the free movement of goods enshrined in the EAC Customs Union and Common Market Protocols at the detriment of East African manufacturers and traders.
It also challenged EAC Partner States to ratify Article 24 (2) of the EAC Customs Union Protocol to pave the way for the operationalization of the EAC Trade Remedies Committee.
Article 24 of the EAC Customs Union Protocol provides for the establishment of the EAC Trade Remedies Committee tasked to handle matters of Rules of Origin, antidumping measures, subsidies and countervailing measures, safeguard measures and Dispute Settlement Mechanism.
Non-existence of the Committee on Trade Remedies makes it impossible for the EAC Council of Ministers to refer matters on the elimination of NTBs to the Committee as is provided for in the EAC Non- Tariff Barriers Act, 2017 (Article 12 (2), (3) and (4). Mid this year, Tanzania and Kenya agreed to resolve 30 Non-Tariff Barriers (NTBs), out of the 64 that jeopardized trade between the two.
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