GENEVA (Reuters) - Global trade has been hit by new and accumulated import restrictions just as economies need to rebuild in the COVID-19 crisis, the World Trade Organization (WTO) said in a mid-year report issued on Friday. But some export constraints imposed on surgical masks, medicines and medical equipment early in the pandemic are being rolled back, it said. “Although the full impact of the pandemic is not yet reflected fully in trade statistics, it is expected to be very substantial”, WTO director-general Roberto Azevedo said in presenting the report to its 164 member states. The WTO said last month that estimates for the second quarter of 2020 indicated a year-on-year drop in world trade of about 18%. Reporting by Stephanie Nebehay; Editing by Mark Potter Our Standards:The Thomson Reuters Trust Principles.  

The Kenya-Tanzania trade row was occasioned by failure of the two countries to agree on Covid-19 protocols to be followed in the cross-border movement of people and goods. Tanzanian authorities have retaliated against Kenya's decision to restrict movement between the Kenya-Tanzania border over Coronavirus by forbidding all automobiles and persons from Kenya. This decision follows fears of cross-border transmission between Kenya and Tanzania that was first expressed by Kenya after identifying the Kenya-Tanzania and Kenya-Somalia borders as hotspots for coronavirus.[i] As a preventive measure, Kenya maintained that cross-border long distance truck drivers must be tested for Covid-19 before being granted entry into Kenya. The diplomatic tiff[ii] between Kenya and Tanzania came shortly after President Magufuli skipped the video-conference between East African Community (EAC) heads of state and governments on 12 May 2020.[iii] According to the EAC, the consultative video-conference was meant to assess the development of Covid-19 in the region in a bid to develop a regional approach. President Magufuli would later in June suggest that Tanzania is free of Covid-19 as God had "answered" their prayers.[iv] While public health is essential for both Kenya and Tanzania, bilateral consultation must be conducted between the two countries before any cross-border Coronavirus protocols are developed and implemented. Indeed, such consultation should apply to any other aspects like customs and immigration among others to enable seamless transactions at points of entry. This is the only sure way to promote free trade and enhance good neighbourliness between the two countries. Indeed the standoff has already negatively affected livelihoods of...

Summary The EAC regional Electronic Cargo and Driver Tracking system, will enable authorities to share test results of the drivers and crew. Kenya Transporters Association executive officer Dennis Ombok said they have not been trained on the usage of the system and he only learnt of the implementation last week during stakeholder virtual meeting. East African countries have moved to ease movement of goods with the roll-out of a system that will allow them to share Covid-19 test results of truck drivers electronically. The reliance of hard to verify manual certificates has been blamed for costly long delays at the different border points that sometimes last for weeks. The EAC regional Electronic Cargo and Driver Tracking system, however, will enable authorities to share test results of the drivers and crew facilitating easy information exchange along the transport corridor. This means no transit cargo will leave the port of Mombasa or any Kenya Ports Authority (KPA) facility without a driver being aligned with the truck and the cargo in the system. According to a notice by the EAC secretariat to relevant ministries of the member countries, all drivers must upload their Covid-19 certificates to the new system before cargo is armed with tracking gadgets,  a directive which has already been opposed by transporters faulting the short implementation notice. MINISTERIAL MEETING “Following a joint ministerial meeting responsible for Health, Trade and EAC held by video Conference on March 25 and in line with the directive of the Sectoral Council on Trade, Industry,...

Malawi’s exports to the east African market are expected to be enhanced during and beyond the Covid-19 pandemic period, following Britain’s offer to support the Trade Mark East Africa (TMA) project with $50 million. TMA was established as a non-profit making institution for aid for trade delivery in East Africa. In one of its recent proposals for aid, the organisation highlighted the need to help the Malawi government focus on diversifying exports and reducing vulnerability of rain-fed agriculture. It expressed abilities to support these efforts by reducing costs and time of trade and ensuring that Malawian products are competitive on international markets. The UK, through the Department for International Development (DFID), has since shown strong interest in funding the five year programme in full, as part of its planned Malawi Trade and Investment Programme (M-TIP). This came out when Acting UK High Commissioner to Malawi, Dave Beer, visited the new Minister of Trade, Sosten Gwengwe, last week. Beer indicated that TMA would help in the implementation of Covid-19 safe trade emergency plan aimed at facilitating smooth trade flows across borders and corridors by enhancing safety measures for frontline officers at the borders. “The aim is to improve Malawi’s trade infrastructure, enhance the trade environment, and boost business competitiveness,” Beer said. In an interview, Gwengwe said the project will enhance corridor connectivity and help Malawi boost its trade potential. “The project will focus on two dominant themes; first improving trade along the key trade corridors for Malawi. “Secondly, it will support...

22 July 2020 (ECA) - At a time when global trade seems so uncertain because of COVID-19 pandemic crisis, a recent paper strikingly highlights that Kenya experienced a significant improvement in exports in early months of 2020 together with the moderation of imports, leading to a marked decline in the trade deficit. The paper published by Brookings and written by Andrew Mold, Senior Economist at UN Economic Commission for Africa and Anthony Mveyange Director of Research at TradeMark Africa used Kenyan trade data published up through May 2020 to provide a preliminary evaluation of the impact of the COVID-19 crisis on regional trade in the East African Community (EAC). According to the paper, the curfews, lockdowns, and cross-border disputes linked to the crisis provoked a sharp decline in intra-regional trade, with a dramatic fall in Kenyan exports to Uganda, Tanzania, and Rwanda. These trends are worrisome because Kenya is the major exporter and importer of the East African Community (EAC), accounting for around 46 per cent of exports and 41 per cent of imports for the whole region. Recent trade evidence from East Africa Kenyan textile exports to the United States and flowers and shipments of vegetables to the European Union were severely affected, largely due to both suspensions of international flights and the collapse of demand in target markets. The paper notes, however, that despite these disruptions, not all supply chains were affected. Kenyan tea exports peaked at just under 58,000 tonnes in April – a record high. Similarly,...

This paper uses Kenyan trade data published up through May 2020 to provide a preliminary evaluation of the impact of the COVID-19 crisis on regional trade in the East African Community (EAC). Paradoxically, given the prevailing pessimism surrounding the prospects for global trade, Kenya actually experienced a significant improvement in exports in the first quarter of the year, together with a moderation of imports, leading to a marked decline in the trade deficit. While the initial shock to Kenyan trade caused by the COVID-19 crisis initially looked dramatic in terms of the declines registered, this paper reveals that i) the shock is not so alarming when seasonality is taken into account; ii) re-exports and imports have been the primary foci of impact; and iii) domestic exports have actually performed extraordinarily well under the circumstances, with incremental growth since 2019. Notably, not all supply chains were disrupted by the crisis, with some Kenyan exports like tea and fruit surpassing levels of years past. Rather, imports have been the principle victim of the crisis, declining by a quarter over the three months since the crisis began (between March and May 2020). Capital goods imports have declined markedly—a trend which, if sustained, could have implications for longterm economic growth. However, the fall in imports of consumer goods could also set the scene for a revitalization of national and regional industry, as local producers step up to fill the void created by the sharp lull in imports. At the same time, Kenya’s EAC neighbors—especially...

Smart24 TV will on July 29 broadcast virtual discussion focusing on how trade and investment in Africa can be fostered post-Covid19. Experts say viewers will get market insights, perspectives and practical tips to help them invest, transform strategy, processes, technology and people to drive growth. The value of intra-trade among East African Community (EAC) partner states increased to $5.98 billion in 2018 from $5.46 billion in 2017, accounting for a 9.4 per cent growth. This could be boosted further but it remains stifled by persistent trade disputes on rules of origin, non-tariff barriers, inadequate value addition to the agricultural sector and competition from other producers and regional blocs that benefit from export subsidies. On average, EAC countries source 6% of their total imports from the region, and supply 20% of their total exports to the region. According to the EAC Trade and Investment Report 2018, formal trade among the EAC partner states largely constitutes of chemicals, textile, iron and steel. Agricultural commodities also form a large portion with significance in food items like rice, maize, sorghum, coffee, tobacco, wheat and other cereals. However, manufactured goods such as cement, petroleum, textiles, sugar, confectionery, beer, salt, fats and oils, paper, plastics and pharmaceuticals are also traded across the Region. At this event, which is being organized by SSCG Consulting Webcast, expect to gain latest updates, perspectives, strategies and best practices as experts discuss investment and business opportunities in the region, trade relations and facilitation issues at both the regional and the continental...

Truck drivers also applauded the interventions the NCTTCA secretariat has put in place so far including the real-time quick response. Stigma along the Northern Corridor and delays at Malaba border crossing point are the biggest challenges facing transit truck drivers. The chairman of Kenya Long Distance Drivers and Conductors Association (LoDDCA), Mr Roman Waema said that truck drivers are not allowed to stop at designated areas in some counties in Kenya such as the Machakos for fear that they will spread the coronavirus. “Sometimes we are forced to drive for over four hours without stopping, going as far as 400km, just because people do not want us to stop in their neighbourhoods,” Waema said. The drivers said that they had been facing stigmatization in different places due to misinformation by the public with some being treated suspiciously even by very close family members. He was speaking during the launch of the sensitization campaign against the spread of COVID-19 and stigmatization along the Northern Corridor when the Northern Corridor Transit Transport Coordination Authority (NCTTCA) did a one week-long exercise of distributing 10,000 masks and reflective jackets to long distance truck drivers. The exercise was carried out in Mombasa and at the weighbridges- Busia, Webuye, Mariakani, Athi-River and Gilgil. Truck drivers also applauded the interventions the NCTTCA secretariat has put in place so far including the real time quick response through a WhatsApp group dubbed “Northern Corridor Stakeholders Forum”. “We appreciate the Northern Corridor Secretariat for their solidarity with the drivers and...

PRESIDENT John Magufuli’s fifth-phase government has set an indelible mark in enforcing East African Community (EAC) integration agenda, specifically on easing trade transactions across the borders. As his government winds up business to pave way for the General Election, slated for October this year, the mark left behind is unequivocal and if come five years of the second term, it would mean to segment the feats, for the benefit of individuals and the six regional States economically. The interest of galvanising the main pillars of integration in areas of cross-border trade, customs union, common market, monetary union and political federation was shown early, just after assuming the highest office, and he and his government has all along walked the talk, insisting on industrialisation as a strategy to move the region from poverty. That has since paid handsomely as the country has moved from its previous status and become a middle-income country, a goal that has been achieved five years ahead of the country's schedule. Last year, Tanzania recorded an economic growth of seven per cent, making it one of the fastest growing economies in Africa. Addressing the East African Legislative Assembly (EALA) on April 24th, 2018, Dr Magufuli rallied for industrialisation, home-grown solutions, and infrastructural development of the region saying it held the key for the transformation of Tanzania and the entire region. In his remarks, President Magufuli said the time had come for the region to think big and beyond parochial issues, urging the regional Assembly to take a...

The COMESA bloc has developed an online portal for member states to exchange information on availability of essential products within the region as part of its strategy to lessen the impact of the Covid-19 pandemic. According to COMESA Secretary General, Chileshe Kapwepwe, the platform will connect buyers to suppliers of essential goods thereby promoting and fostering intra-COMESA trade. It is a platform largely meant to support regional trade, during the Covid-19 pandemic. Mwangi Gakunga, Head of Corporate Communications at the COMESA Secretariat, on Monday, July 20, told The New Times that the new tool "will enable suppliers in one country link up with buyers in another by uploading the products they have on the platform." Gakunga explained that for it to work, suppliers must be registered companies in their home countries. He said: "They will register on the platform and open an account and this will be vetted by the governmental focal points mainly in the ministry that coordinates COMESA activities who will approve and activate the account or advise otherwise." "This is to ensure the integrity of the companies allowed to post on the platform. Once the supplier account is activated, he or she can post the products on the platform." The platform will also help small-scale cross-border traders and SMEs to have access to market information and will link producers, sellers and buyers. It comes as the regional bloc noted that measures being implemented by member states such as closing borders to prevent the spread of the Covid-19...