scholarly journals An Assessment of the Trade Effects of the East African Community Customs Union on Member Countries

Author(s):  
Steven Buigut
2021 ◽  
pp. 1-12
Author(s):  
Jakob Rauschendorfer ◽  
Anna Twum

Abstract The Common External Tariff (CET) of the East African Community (EAC) customs union has long been considered the cornerstone of the most successful example of regional integration in Sub-Saharan Africa. In this paper, we assess the implementation of the EAC-CET using a novel dataset of country- and firm-level deviations from the common tariff regime constructed by digitizing information in gazettes published by the Secretariat of the EAC between 2009 and 2019. Employing these data, we present five patterns on EAC tariff policy: (i) increased usage of country-level deviations from the common tariff regime render the EAC-CET less and less ‘common’; (ii) Kenya, Tanzania, and Uganda predominantly use unilateral deviations to increase external protection while Rwanda mostly decreases tariffs; (iii) Kenya, Tanzania, and Uganda increase tariffs for the same classes of products, but target different industries; (iv) unilateral tariff reductions at the country level are mostly used to facilitate access to inputs; (v) data on firm-level exemptions suggest that private sector development in the EAC would benefit from lower tariffs on intermediate inputs. Our findings demonstrate an incipient but clear trend in the EAC away from a communal tariff regime and towards national and more protectionist trade policies.


2002 ◽  
Vol 181 (4) ◽  
pp. 354-359 ◽  
Author(s):  
Frank Njenga

East Africa is made up of Kenya, Uganda and Tanzania, all previous colonies of the British Empire which attained their independence in the early 1960s. At the time of independence, the East African community held the three countries together. Political expedience broke up the community in 1977 but greater wisdom and economic reality have brought the three countries back together in December 2001, in the form of a common Legislative Assembly and Court of Appeal. A Customs Union is expected soon, ahead of full political integration.


Author(s):  
Stephen Karingi ◽  
Ottavia Pesce ◽  
Lily Sommer

Significant progress has been made by the East African Community partner states in implementing the East African Community customs union. Trade within the East African Community is now free from import duties, and partner states have adopted a three-band common external tariff. This chapter assesses how the customs union has supported intra-regional trade, competitiveness, and industrialization, in particular through the development of smokestack-free industries. It concludes that regional integration has provided a supportive environment for the development of competitive smokestack-free industries and exports, but significant opportunities still exist within the region. Recommendations are provided on what policy measures should be taken to harness these opportunities.


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