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Researchers have cautioned Uganda against the continued existence of Non Tariff Barriers, in the Common Market, which affect the follow of trade between Uganda and East Africa member states.
In a study conducted by Dr. Luke Okumu and Prof James Nyankori of the Economic Policy Research Centre (EPRC), which was released last week, it was discovered that several Non Tariff Barriers (NTBs) continue to exist, despite the launch of the Common Market on July 1.
Protectionism
NTBs are import targeted public policy interventions, that protect domestic industries, national health, safety and security as well as revenue sources. The study shows that barriers like customs documentation requirements, varying systems of customs formalities and non-harmonised standards requirements among others continue to impede trade within the region. It also establishes that if NTBs were removed on maize, for example, Uganda would benefit significantly in form of increased production and trade compared to Kenya and Tanzania.
Comparative advantage
This according to the study results from Uganda’s comparative advantage in the production and trade of maize. During the formulation process of the Common Market Protocol, the elimination of NTBs was a key focus, which was looked at as a major driver in the improvement of regional trade. Hence persistent existence of such barriers is seen as a key challenge to the regional grouping that includes Uganda, Rwanda, Kenya, Burundi and Tanzania.
The study suggests that in order to enhance the gains resulting from elimination of NTBs within the region, actions like designing effective mechanisms for policy monitoring must be taken to achieve regional growth and legislation and full authorisation of EAC implementation.
Researchers have cautioned Uganda against the continued existence of Non Tariff Barriers, in the Common Market, which affect the follow of trade between Uganda and East Africa member states.
In a study conducted by Dr. Luke Okumu and Prof James Nyankori of the Economic Policy Research Centre (EPRC), which was released last week, it was discovered that several Non Tariff Barriers (NTBs) continue to exist, despite the launch of the Common Market on July 1.
Protectionism
NTBs are import targeted public policy interventions, that protect domestic industries, national health, safety and security as well as revenue sources. The study shows that barriers like customs documentation requirements, varying systems of customs formalities and non-harmonised standards requirements among others continue to impede trade within the region. It also establishes that if NTBs were removed on maize, for example, Uganda would benefit significantly in form of increased production and trade compared to Kenya and Tanzania.
Comparative advantage
This according to the study results from Uganda’s comparative advantage in the production and trade of maize. During the formulation process of the Common Market Protocol, the elimination of NTBs was a key focus, which was looked at as a major driver in the improvement of regional trade. Hence persistent existence of such barriers is seen as a key challenge to the regional grouping that includes Uganda, Rwanda, Kenya, Burundi and Tanzania.
The study suggests that in order to enhance the gains resulting from elimination of NTBs within the region, actions like designing effective mechanisms for policy monitoring must be taken to achieve regional growth and legislation and full authorisation of EAC implementation.
