Summary Trade is a force for good. So, when we see the trend towards protectionism, we should all worry. The world is at a crossroads, on matters trade. Everywhere, more measures are being taken to ‘protect’ domestic economies from ‘unfair’ competition. And these is often playing well with domestic audiences, encouraging those in charge to double down and do more of the same. If you doubt this, here’s a startling fact: In 2009, following the financial crisis, only 0.7 per cent of imports into G20 countries faced new restrictive measures, a figure which by 2019 had risen to 10.3 per cent. In short, some of the world’s richest countries are raising barriers to markets access for some of the poorest. Trade is a force for good. If you doubt this, ask any South Korean of a certain age, working women in Bangladesh, someone now in their 50s in many parts of China, many living in states that were part of the former Soviet Union, across swathes of Latin America, and in parts of north, east, west and southern Africa and many other parts of the globe. So, when we see the trend towards protectionism, we should all worry. There are still billions of people in the global South as yet left untouched by the benefits of the ability to trade more widely than their own domestic markets, and billions more who have taken steps along the trading path whose progress is threatened. Of course trade is not a panacea, far...

The East Africa Community (EAC) Secretariat and its Partner States have rolled out a Regional Electronic Cargo and Driver Tracking System (RECDTS) in a virtual event held Tuesday. RECDTS is designed as a mobile phone application and will enable the issuance of the EAC COVID-19 digital certificates that are mutually recognised by Partner States, thus eliminating need for multiple testing as well as contributing to alleviating ongoing congestion at East Africa border crossing points. The RECDTS App is designed to stop Corona in its tracks along EAC key transport corridors. The roll out was witnessed by the EU Ambassador to Kenya H.E Simon Mordue and the Ministries of Health in Kenya, Uganda and Rwanda and the Ministries of East Africa Community in the Partner states. RECDTS provides a surveillance system to monitor long distance truckers crew health and enable contact tracing. It allows partner states to electronically share truck drivers’ COVID-19 test results; therefore, minimising need for multiple COVID-19 tests in a single trip. The reliance on manual certificates and delayed test results at the borders has been reported as one of the main reasons for costly long delays at border points, such as those witnessed in Busia, Malaba, Nimule and Elegu. Some of the delays have caused tail backs of trucks measuring tens of kilometres in some cases. Also Read  WHO ramps up COVID-19 support to hotspot countries in Africa The EAC developed the app with funding from European Union, Global Affairs Canada, Danida, Finland, Netherlands and United Kingdom through...

The RECDTS App is designed to stop Corona in its tracks along EAC key transport corridors The East Africa Community (EAC) Secretariat and its Partner States today held a virtual roll out event to mark the technical completion and development of the Regional Electronic Cargo and Driver Tracking System (RECDTS). RECDTS is designed as a mobile phone application and will enable the issuance of the EAC COVID-19 digital certificates that are mutually recognised by Partner States, thus eliminating need for multiple testing as well as contributing to alleviating ongoing congestion at East Africa border crossing points. The roll out was witnessed by the Chair of the EAC Council of Minister, Hon Prof Nshuti Manasseh,  Ministers of Health from Kenya and Uganda as well as the EU Ambassador to Kenya, H.E Simon Mordue. RECDTS provides a surveillance system to monitor long distance truckers crew health and enables contact tracing. It allows Partner States to electronically share truck drivers’ COVID-19 test results; therefore, minimising need for multiple COVID-19 tests in a single trip. The reliance on manual certificates and delayed test results at the borders has been reported as one of the main reasons of long delays at border points, such as those witnessed in Busia, Malaba, Nimule and Elegu. Some of the delays have caused tail backs of trucks measuring tens of kilometres in some cases. The development of EAC the app with funding from European Union, Global Affairs Canada, Danida, Finland, Netherlands and United Kingdom through TradeMark Africa was in accordance with...

The launch of a regional electronic cargo and driver tracking system which had been slated to take place mid last month and later postponed was launched virtually on Tuesday, September 8. It is one of the measures introduced by the East African Community to prevent further spread of the coronavirus (Covid-19) infections in the region. The virtual rollout of the East Africa Community Regional Electronic Cargo and Driver Tracking System (RECDTS) was broadcast live from the Malaba-Malaba border crossing point between Uganda and Kenya and the Mirama Hills-Kagitumba border crossing point between Uganda and Rwanda. During the event, officials linked and transmitted a real-time demonstration of driver registration and verification of EAC digital certificate at the borders. The system will issue jointly recognised EAC Covid-19 digital certificates, which will improve efficiency in regional freight transport, by avoiding multi testing for drivers at all points of entry. Despite the borders being closed to human traffic in most regional countries, cargo transport has remained in operation, but drivers are subjected to multiple tests at borders which leads to delays. The EAC developed the App with funding from the European Union, Global Affairs Canada, Danida, Finland, Netherlands and the United Kingdom through TradeMark Africa and in accordance with the mandate given by a joint ministerial meeting of EAC ministers responsible for Health and EAC Affairs. The App provides a surveillance system to monitor the health of long-distance truck crew members and enable contact tracing. It allows partner states to electronically share truck drivers’...

The launch of the new Foreign, Commonwealth & Development Office (FCDO) last week provides an excellent opportunity to reset the UK’s economic engagement with low- and middle-income countries. As the new department takes shape, it is crucial to consider the stated benefits of bringing development and diplomacy together through this merger of the Department for International Development (DFID) and the Foreign & Commonwealth Office (FCO). One area in which the benefits could be large and visible is economic development, but so far there has been little attention to the role of the FCDO as an economics ministry. This is perhaps surprising: DFID is rightly proud of its recent experience in managing economic development programmes such as Trademark East Africa and Nepal’s Economic Policy Incubator. A new set of essays, published last week by ODI, considers 10 ways the experience of the FCO and DFID could underpin economic policy in the FCDO. Ten new opportunities for the FCDO The essays offer 10 economic development proposals for an imaginative new approach to capitalise on mutual interest and help achieve development goals. They are: 1. Publish a coherent UK–Africa strategy This must help to reinvigorate UK-Africa trade and investment relationships following a decade of stagnation, during which time Africa has stepped up engagement with other parts of the world. Leaving the EU means the UK needs to consider new trading arrangements with African countries, which are set to integrate through the Africa Continental Free Trade Agreement (AfCFTA). The UK-Africa Investment Summit in January also needs follow up. It is time for an ambitious Africa strategy. 2....

...Lauds JPM for keeping economy open amid Covid-19 THE East African Business Council (EABC) has called for a deeper collaboration between the Public and Private sectors to boost East African Community (EAC) intra-trade. Also, the council has lauded President John Magufuli for a job well done, especially in spearheading major economic reforms in the country. Amid the global economic disruptions caused by the Coronavirus pandemic, EAC private sector wants to steer better relations as a strategy to boost trade and investment in the region. The leaders noted that the decision by President Magufuli to keep the economy open, offered the private sector a major relief in terms of business resilience as it also strengthened local supply chains. EABC Chief Executive Officer (CEO), Dr Peter Mathuki said that is the spirit for the region - both public and private sector to move forward and business to prosper. It came about after consultations of CEOs at a roundtable meeting organized by the EABC in collaboration with German Development Agency (GIZ) with a theme 'Creating Perspectives Project', convening companies' CEOs with an aim of deliberating on approaches that the private sector can explore to revamp businesses amid the pandemic. Tanzania took absolutely a different approach in dealing with Covid-19, by President Magufuli who seeks a second term in office led the nation in style, by ruling out lockdown, letting business go on but with taking reasonable protective measures and it paid handsomely. In spite of the situation in the bloc, Africa and world...

Uganda has condemned the continued use of non-tariff barriers by her East African Community neighbors despite several petitions, saying it beats the purpose for which the community was created. Uganda has for long felt that her neighbors, mainly Kenya, Rwanda, and Tanzania keep backtracking when it comes to implementing the free trade treaties that govern the EAC bloc. Recently, sugar exports to Tanzania have been blocked and returned to Uganda, while Kenya has often blocked Uganda’s sugar, poultry, and dairy products. And in all instances, exporters say, there are no proper reasons given The Assistant Commissioner for Regional and Bilateral Division External Trade at the Ministry of Trade, Richard Okot Okello, says there must be renewed efforts to remove all barriers if intra-regional trade is to be revamped. He was speaking at an online regional symposium on the effects of Covid-19 on women’s economic empowerment in East Africa, organized by the Eastern African Sub-Regional Support Initiative, EASSI. Okot-Okello says regional countries have persistently put nationalist and protective measures above the regional mechanisms that were put in place to enhance regional integration. On her part, Dr Juliet Wakaisuka, a lecturer at Makerere University Business School, expressed worry that in all the support and economic recovery programs, the special plight of women is not being given special attention. She calls for affirmative action like helping women entrepreneurs formalize their business, and supporting them to adapt fully to the digital-based environment. The Commercial Attache at the Kenyan Embassy in Uganda Robert Okoth said...

With three of the eight candidates to become the next leader of the World Trade Organization (WTO) coming from Africa, BBC Africa business editor Zawadi Mudibo looks at what difference having one of them at the helm would make for the continent. There is a growing feeling among African diplomats that someone from the continent should be at the helm of one of the world's top economic institutions. Whereas an American has always led the World Bank and a European has always been at the head of the International Monetary Fund, an African has never taken an equivalent position. But if one from Nigeria's Ngozi Okonjo-Iweala, Kenya's Amina Mohamed or Egypt's Abdel-Hamid Mamdouh emerges from the long selection process as the WTO's next director-general, the continent can feel that it is playing in the same league as the rest of the world. [caption id="" align="alignnone" width="976"] IMAGE COPYRIGHTGETTY IMAGES: image captionGarment factories, like this one in Kenya, could benefit if trade opened up[/caption] The WTO sets the rules for global trade and adjudicates in trade disputes between nations. It is also, according to its website, supposed to "open trade for the benefit of all". The Geneva-based organisation's ability to get global agreements of basic principles that every country signs up to has been hamstrung in recent years but the WTO leader has influence and a bully pulpit. The director-general attends G7 and G20 meeting and can broker disputes between world leaders. But is there more to be gained for the...

According to the African Union, in order to get maximum benefit of the arrangement as a country, we need to work on minimising or eliminating non-tariff barriers altogether. The Africa Continental Free Trade Area (ACFTA) was supposed to be launched at the beginning of July, but due to the coronavirus crisis, this has been pushed back to January next year. ACFTA will liberalise the movement of goods, services and people throughout the continent which is an important ingredient for the transformation of Africa's people. A major challenge for Africa is that it does more trade with the outside world than it does within itself. This is a historical arrangement that was set in place by the colonialists. Trade between African countries accounts for 15% of all trade done by the continent. This is woefully small compared to Asia's 58% or the European Union's 75%. Being the major markets for our products means the former colonial powers can set the price of our coffee, tea, cotton and even gold. Increasing trade within the continent will break this monopoly market, create greater interdependence between our countries and unlock the vast potential of our continent. It will also make us a more attractive investment destination, aid in technology transfer and in so doing reduce poverty and aid the transformation of our countries. We have evidence here at home of how through the opening of regional markets, the East African Community (EAC) has boosted our farmers' production of grain. Imagine if the same concept...

International trade and investment have always relied on the cross-border mobility of individuals. Transporting goods across borders involves humans, and will do so for the foreseeable future despite important technological advances. In addition, face-to-face contact continues to play a critical role in addressing some of the information and transaction costs involved in trading goods internationally. Physical proximity between producers and consumers is essential for many types of services trade. In some instances, this proximity is achieved when individuals cross international borders. Indeed, the temporary cross-border movement of natural persons is one of the four modes (i.e. mode-4) through which services may be traded in the General Agreement on Trade in Services (GATS), while services purchased abroad by consumers is another (mode-2). Individual mobility is also a factor beyond these two modes, since business travel is frequently part of services provision through the establishment of a commercial presence abroad (mode-3) or remotely, for instance online (mode-1). Indeed, the modes of supplying services are often bundled, with varying degrees of substitutability amongst them. In this sense, human mobility constitutes services trade in its own right, while also enabling trade in goods and other services. With the objective of containing the Covid-19 pandemic, governments around the world have imposed temporary travel or immigration restrictions, which have severely restricted the cross- border movement of individuals. While these mobility-related measures are not motivated by trade considerations, but by public health reasons, they have a significant impact on trade. Perhaps paradoxically, this has brought into sharper...