Under plans agreed to a number of years ago by the members of the East African Community (Kenya, Uganda, Tanzania, Rwanda and Burundi), East Africa was to become a common market and non-tariff barriers to trade were to be abolished by the end of 2012. The end of 2012 has come and gone, but non-tariff barriers to trade remain. According to the East African Community Secretariat, 71 non-tariff barriers were identified, 36 of these have been resolved, 35 remain, and 10 new ones have been created.
The main non-tariff barriers to trade are weighbridges, roadblocks, poor infrastructure, unnecessary delays at border posts, and lack of harmonised import and export standards, procedures and documentation. Because of barriers to trade, the amount of trade between countries (other than by smuggling) is tiny, and economic growth suffers significantly as a result. Last year, Kenya’s imports from India and China were $15 billion, but its imports from neighbouring countries were just $320 million.
Tanzania has imposed a visa charge of around $200 on business people from Kenya and Uganda. Kenya is imposing a levy on agricultural products imported from Tanzania. Kenya is imposing quotas on fresh cut flowers from Tanzania for re-export to Europe and Russia. Beef and pork products from Kenya are being charged 25% duty by Tanzania. It is apparent that the benefits of free trade are still a long way off.