EAC states fail to agree on uniform tariff rates

Morogoro. The comprehensive review of the Common External Tariffs (CET) for goods imported into the East African region has hit a snag over differences by member countries.

It emerged in Nairobi on Thursday during a meeting of trade experts that divergent positions by the East African Community (EAC) partner states has delayed the process.

“The review process has been delayed mainly due to divergent views by the EAC partner states on the maximum CET rates,” lamented the East African Business Council (EABC) chief executive officer Peter Mathuki.

He added that the threshold to determine the availability of finished products in the six nation EAC region has also delayed the review of the tariff process.

Nevertheless, Mr. Mathuki stressed that the review process in question was an opportunity to improve intra-regional trade which he estimated to be only 20 per cent currently.

“The need to fast-track the comprehensive review of the EAC-CET cannot be over-emphasised,” he said during a workshop organized by EABC in collaboration with TradeMark East Africa (TMEA).

Ms Rachel Muthoga, the deputy chief executive officer of the Kenya Private Sector Association (Kepsa) urged the EAC partner states to speed up review process.

“There should be a regional approach in coming up with the private sector recommendations on this,” she said according to a dispatch sent to The Citizen.

The one-day workshop in the Kenyan capital is among a series organised lately to address a host of inconsistencies hindering intra-regional trade and investments. The tariff review, in particular, was directed by the EAC Secretariat way back in 2016 in a bid to respond to the global changes of trade and economic environment in the region.

EABC vice chairperson Jim Kabeho said the private sector from all the six partner states in the bloc should play its part effectively in the on-going review.

“This should extend to extending to addressing inconsistencies of the Customs Union and the Common Market,” he said, noting that the EAC region was yet to enhance industrial competitiveness, value chains, joint ventures and partnerships.

EABC board member Ms Mary Ngechu stressed the importance of including interests of the small and medium enterprises (SMEs) in the review process as they are the backbone in the region’s economy.

TMEA’s director of private sector advocacy Allan Ngigi emphasised the need for the private sector should speak with ‘one voice’ to the EAC leaders on how to develop the manufacturing sector.

Early last year, the EAC secretariat announced formation of a task force to review CET for goods imported into the region from January 1st , 2005 when the Customs Union protocol came into force