Cross-border trade across East Africa could be set for growth following the enactment of an innovative new law that aims to aid resolution of trade disputes caused by non-tariff barriers (NTBs).

The East African Community (EAC) Elimination of Non-Tariff Barriers (NTBs) Act, 2015 will remove obstacles to intra-EAC trade as it provides for the first time, an alternative to the lengthy and costly court processes required to settle NTBs related disputes.

While the core objective of the EAC Common Market is for easier intra-regional trade, NTBs have hindered trade and limited the region’s ability to benefit from greater integration.

The impressive growth of intra-EAC trade, the best among Africa’s trade blocs, could have been even better if issues like import bans, product quotas, complex and discriminatory rules of origin, unjustified sanitary and phytosanitary conditions, export subsidies, inadequate infrastructure, ‘buy national’ policies, corruption and lengthy customs procedures were addressed in a quicker and legally binding manner.

The NTBs Act has been passed by the EAC Legislative Assembly and is now awaiting assent by the Heads of State and ratification by the national parliaments of each of the partner states to become operational.

The Act will work by establishing a framework for resolution of NTBs in the EAC, introduce alternative dispute resolution mechanisms and involve the EAC Council of Ministers as a last resort without the need to go to national courts. Maciel is director, Trade Facilitation at TradeMark Africa

Source: Media Max

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.