EAC Secretariat warns regional States against trade barriers

 By Luke Anami

Errant East African Community States will soon face penalties, the
East African Business Council and Trade Mark East Africa meeting in
Nairobi heard on Monday.

EAC countries that introduce new Non-Tariff Barriers (NTB) will face
sanctions should a legal mechanism to enforce decisions be put in
place.

"We are working on a legal mechanism that will define penalties for
member States that introduce new NTBs," Amb Richard Sezibera, EAC
Secretary General said during a breakfast meeting with top Chief
Executives in the region.

The meeting — held under under the auspices of the East African
Business Council and Trade Mark East Africa— discussed how to improve
business environment and increase competitiveness in the region.

business environment

"Each EAC partner State has a committee chaired by its Permanent
Secretary on the elimination of NTBs.

These committees are already working on the necessary steps required
to eliminate NTBs," he said.

Most of the NTBs that businesses experience in the course of their
intra- EAC trade fall under customs, ad-ministrative documentation
procedures, immigration procedures and cumbersome inspection
requirements.

Others include, police roadblocks, varying trade regulations,
cumbersome and costly transiting procedures.

However, their persistence has irked the business community who now
want immediate action to limit the number of NTBs.

"We not happy with the pace at which the EAC is handling the
reemergence of NTBs," Patrick Obath, Chairman Kenya Private Sector
Alliance (KEPSA) said during a press conference.

"That is one of the issues this forum hopes to address," he said.

"Both Customs and Common markets are not operational yet but we want a
commitment that there is a conducive environment to encourage
cross-border business."

Sezibera while admitting the slow pace of integration, promised to
institute legal mechanism to eliminate NTB by September.

"We have issues to do with Customs Union and Common Market that we
have not implemented. But that does not mean we are not making any
progress," Sezibera said.

"A monitoring committee that involves all stakeholders including the
private sector members is already in

place."

Chairman of Kenya Association of Manufacturers Jaswinder Bedi said a
legal framework to force the removal of NTBs would facilitate faster
movement of goods across border.

Despite the persistence of NTBs, Kenya’s exports to the EAC partner
States increased from Sh53,049 million in 2006 to Sh101,312 million in
2010.

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