Africa-Press – Kenya. Rising politically motivated Non-Tariff Barriers threaten to derail trade and investments among East African countries, experts warn, even as the bloc eyes other markets in the continent.
The rise has been mainly anchored on countries playing protectionism, an economic policy restricting international trade to shield domestic industries from foreign competition.
Politically motivated NTBs are restrictions, regulations or conditions imposed by governments—other than customs duties—designed to achieve specific political objectives, such as protecting domestic industries, punishing trade partners or gaining geopolitical leverage.
These measures have increasingly replaced tariffs as the primary tool of protectionism, with WTO-reported NTBs more than doubling between 2010 and 2021.
During the East African Business and Investment Summit and Exhibition in Nairobi, private sector players yesterday called for political goodwill and removal of trade barriers, noting that the East African Community has the right policies, but implementation remains a major challenge.
The NTBs, which include administrative, regulatory and procedural obstacles such as customs delays, inconsistent standards and road checks, significantly hinder regional trade, acting as a higher barrier than tariffs.
Recent common politically motivated NTBs include Tanzania’s periodic bans on Kenyan milk, maize, wheat flour, and poultry, often justified on quality or safety grounds but coinciding with the protection of Tanzanian farmers.
Uganda has also had temporary restrictions on Kenyan processed foods and agricultural products during domestic surplus periods.
There have also been discriminatory standards and quality checks by Tanzania, where Kenyan goods have been subjected to retesting and re-certification despite already holding EAC-recognised quality marks, increasing costs and delays.
Kenya on the other hand has previously placed stricter enforcement of standards on Ugandan cement, sugar and steel products compared with local equivalents.
These are in addition to deliberate slowing of clearance at Namanga and Holili border posts (Kenya-Tanzania), including repeated inspections and document verification.
There have also been lengthy clearance times and additional paperwork at Uganda-Rwanda border points during periods of diplomatic tension.
Tanzania on the other hand has also on several occasions required special import licences for Kenyan-manufactured goods, particularly in textiles and food processing, among trade restrictions linked to broader diplomatic and security tensions, rather than technical trade concerns.
According to Trade Mark Africa, these restrictions cost the region an estimated $10 billion (Sh1.3 trillion) annually.
“Over the last one year we have seen a resurgence of barriers, politically motivated, protectionism. Despite business being resilient, some get wiped out,” said Allen Asiimwe, deputy CEO and chief of programmes at TradeMark Africa.
“The private sector across the continent wants certainty and unless we become competitive, we are not going to make it.”
East African Business Council (EABC) executive director Ahmed Farah cautioned that these barriers could derail the region’s target of achieving a 40 per cent intra-regional trade rate from the current low of between 10 to 15 per cent.
“We have to stop creating new NTBs as we try to dismantle existing ones and reduce the cost of doing business. Above all, we must have political goodwill,” Farah said.
EABC chairman John Akol said to boost intra-East African Community trade to 40 per cent, there is need to fully implement the Single Customs Territory Framework and uniformly apply the Common External Tariffs across the partner states.
“We also need to expedite the harmonisation of domestic taxes, eliminate all the discriminatory taxes and deliver all the products made within the East African Community,” he said.
The region also needs to liberate air transport services, strengthen regional relations and empower small, medium-sized enterprises, he noted.
EAC must also collectively work as a bloc in negotiating for trade agreements with third parties and leverage the African Continental Free Trade Area agreement.
Elimination of trade barriers, enhancing infrastructure, improving cross-border payment systems, implementation of common market protocol, youth and women empowerment and value addition to cut export of raw materials also stood out as key focus areas.
Kenya’s Cabinet Secretary for East African Community (EAC) said the government remains committed to supporting regional integration processes, to promote sustained and accelerated free movement of goods and services.
“As we strengthen this collaboration, we need to be cognizant of the fact that regional integration is no longer a choice but an imperative in holding regional value chains that are impervious to global shocks,” Askul, who is also the chair of EAC Council of Ministers, said.
Kenya’s export markets are heavily concentrated, with over 65 per cent of exports destined for the EU, the United States and the East African Community (EAC) member states.
This has rendered the economy vulnerable to external shocks, as evidenced by supply chain disruptions during the Covid-19 pandemic.
Exports remain a cornerstone of the national economy, contributing approximately 7.2 per cent to GDP and directly or indirectly employing over 1.5 million individuals.
