WHILE the World Trade Organisation (WTO) has always fostered a global multilateral trade, the current global trend in trade is increasingly based on regional trade through regional trade agreements (RTAs) between regional blocs — such as the European Union (EU), the North American Free Trade Agreement (Nafta), the Association of Southeast Asian Nations (Asean) and the Common Market of Eastern and Southern Africa (Comesa). One of the main objectives of the regional trade agreements is to reduce trade barriers. Many observers believe that regional trade agreements deepen market integration and complement efforts by the World Trade Organisation to liberalise international markets, while acknowledging that regional trade agreements can open up markets, but others contend that these agreements also distort trade and discriminate against nonmember countries. Beyond regional trade, there is a growing trend to establish transpacific and transatlantic trade and partnerships mainly based on free trade agreements (FTAs). Such an approach has led to negotiations to establish the Transpacific Trade Partnership (TTP) and the Transatlantic Trade and Investment Partnership (TTIP). The TTP brings together the US, Japan, Australia and other countries in the Asia-Pacific region and aims at trading based on some of the World Trade Organisation’s principles. The TTIP brings together the US and the EU, which are global trading leaders and partners. It is becoming quite clear that, if successful, these partnerships will determine the future of global trade in the coming decades. Trade between countries or different regional trading blocs has become unequal based on trade policies...

NAIROBI, March 25 (Xinhua) -- Investments in trade infrastructure as well as the removal of bureaucratic and procedural barriers to economic integration have positioned the East Africa region as the destination of choice for doing business, a study has shown. A study published on Wednesday by the TradeMark Africa (TMA), a donor-funded organization formed to help regional states speed up integration, said the harmonization of product standards has expanded the East African Community (EAC) trade basket. Encouraging results achieved over the past year, including investments in key ports have resulted in reduced cargo transit times on East Africa's main transport corridors, and accelerated implementation of the EAC's Single Customs Territory, said TMA Annual Report. TMA Chief Executive Officer Frank Matsaert said the reduction of average time to clear goods at Kenya's Mombasa port and transport them to Kampala, Uganda to fours days has buoyed the investments in the EAC region. Matsaert said the reduction in the number of customs declarations by 90 percent leading to an increase in trade volumes, an example of fuel imports into Uganda which has increased from 32. 1 million litres to 108 million litres are behind surge in investments. "The results presented in this annual report point to an ever improving trade environment which is expected to spur investments and ultimately benefit the citizens of East Africa," he said in Nairobi. He said poor infrastructure, delays in cargo clearance and customs procedures at the port contribute to the high cost of doing business along the...

Burundi continues to be at a high risk of debt distress, and it will be important that any future borrowing be done on a concessional basis, the IMF has said. The International Monetary Fund said achieving debt sustainability will help anchor fiscal policy in the medium term. “Passage of the law on public debt, which would provide a legal framework for debt management, would be important. In this regard, better domestic debt management, notably by aligning the issuance of government securities with government’s financing needs, will help prevent recourse to central bank financing and the buildup of arrears,” said the fund. According to the fund, economic growth is estimated to have picked up slightly in 2014, while inflation declined markedly, aided by falling international fuel prices and prudent monetary policy. The fund also added that the near-term economic outlook remains challenging, and prudent policies will continue to be needed in the face of uncertainties in the external environment, and in the run-up to the 2015 national elections. “The 2015 budget provides an adequate basis for fiscal policy in the current election year, and should be implemented with vigilance. Revenue slippages that emerged in early 2014 were addressed through corrective revenue measures, and are expected to have a lasting, positive impact on revenue performance,” said the fund. “Strengthening tax administration and improving the coordination between tax policy design and its implementation will be critical to increasing the tax-to-GDP ratio on a sustainable basis.” The fund urged the government to strengthen public...

Local manufacturers are seeking joint ventures with their East African Community counterparts as one of the ways to penetrate regional markets. The move could help strengthen the country's manufacturing and exports sectors, thus accelerating economic growth, according to Eusebe Muhikira, the acting head of export and business development at the Rwanda Development Board (RDB). Muhikira added that the development will also help build the competencies of Rwanda producers, making them more competitive. "We want to build a value chain model that will help us enhance product quality to be able to strengthen our footprint in the region," Muhikira said while speaking during a business-to-business meeting between Burundi and Rwanda entrepreneurs in Kigali last week. The meeting was organised by RDB and Traid Links. It attracted 26 companies from Burundi as well. Muhikira told Business Times on the sidelines of the meeting that RDB and the private sector are already working with firms from all regional countries under the market-linked programme. "We want to link Rwandan companies with potential distributors across the region through organised sales missions. We have so far linked local producers with 15 companies from Kenya, Tanzania and Uganda. Six Burundian companies from the construction sector have also indicated willingness to join the initiative," Muhikira said. The market-linked programme is being implemented by Traid Links Africa in partnership with TradeMark Africa. According to Bernard O'Connell, the programmes implementation manager, the initiative will increase the market for Rwanda products, as well as improve profitability through reduced costs. "We also...

A Nigerian friend called me a few weeks ago to ask about a Kenyan musician he had seen on Viva, a popular sports show on a local TV station. That is Nigerians for you! Anywhere you meet them, they will ask about Mombasa, Al-Shabaab, our president, and other things that seemingly should not matter to a foreigner. Most of the Nigerians I have interacted with have more than a passing interest in events in Kenya, which explains why more than 500 government officials and businessmen joined President Goodluck Jonathan on his inaugural visit to Kenya in September 2013. Most Nigerians are interested in events in countries that could offer opportunities to their insatiable investment appetite. Kenyans, on the other hand, especially the younger generation, have little interest in events beyond their borders. They would rather follow gossip columns and television series on the lives of their favourite celebrities and socialites. Many social media fanatics are not even aware that Nigeria, Africa’s largest economy, postponed its elections. President Uhuru Kenyatta is big on increased intra-Africa relations. He has been to Nigeria twice since he came to power. On one such visit, he led more than 40 members of the private sector for a state visit and trade mission to Nigeria. Agriculture, the backbone of Kenya’s economy, was at the centre of discussions. Nigeria could import fresh produce from Kenya. Feeding 170 million people should be sufficient incentive for Kenyan farmers to increase their produce for export. OIL EXPORTERS Kenya Airways has...

Encouraging results achieved over the past year, including investments at key ports have resulted in reduced cargo transit times on East Africa’s main transport corridors, and accelerated implementation of the EAC’s Single Customs Territory. Harmonisation of product standards has expanded the EAC trade basket says TMA Annual Report. [caption id="attachment_6830" align="alignleft" width="600"] Minister Works and Transport John Byabagambi, Ms. Edith Mwanje Permanent Secretary Ministry of East African Community Affairs, Frank Matsaert CEO Trade Mark East Africa and Karin Anderson Programme Chair Investment Committee Trade Mark East Africa pose for a photo during the official hand over of the 2013/2014 TMA Annual Report to the Ugandan Government in Kampala[/caption] Kampala, 24 March 2015. Investments in trade infrastructure as well as the dismantling of bureaucratic and procedural barriers to economic integration, is positioning the EAC region as the destination of choice for doing business, TradeMark Africa (TMA) said today as they launched their annual report covering the period 2013/2014. TMA further stated that its partnership with the East African Governments has resulted to great progress in delivering 7 key One Stop Border Posts (OSBP) across East Africa this year to increase physical access to markets for both formal and informal traders. Pilot operations at the Kobero/Kabanga between Tanzania and Burundi borders already indicate a two day reduction in transit times at Kabanga for cargo trucks, as well as reduction in tedious formalities for traders which have had adverse impact on time and costs of business in the past. This announcement was made...

According to a report by The East African… Kenya, Uganda and Rwanda have agreed to reduce the cost of sending a SMS across the three countries. During a regional summit in Kigali, which was held on 6 March 2015, the three partner states agreed that the wholesale price for SMS within the region will not be more than USD 0.03 per SMS, including all applicable taxes, while the retail price will not exceed USD 0.06 cents per SMS. This is less than half the current market rates. Last year the countries already agreed a reduction in roaming voice rates, under the One Network Area agreement. The drop in roaming charges is expected to stimulate growth in the telecommunications sector and promote cross-border trade. This is according to a report by The East African. Source: IT News Africa

World Trade Center Delaware will host a March 31 roundtable discussion to provide advice on navigating the business environments of five nations in sub-Saharan Africa. The event is designed to help local companies take advantage of the United States' new trade agreement with the East African Community, which includes Burundi, Kenya, Rwanda, Tanzania and Uganda. Stabilizing political environments and above-average GDP growth are making the countries of sub-Saharan Africa increasingly active trade prospects, having imported $1.2 billion in American goods in 2013 and $2 billion in 2014, according to the nonprofit trade center. The roundtable will be led by Ludwika Alvarez, an international trade specialist with the U.S. Department of Commerce, who advises multinational corporations and small businesses on strategic market entry and supports commercial diplomacy efforts in East Africa. The event will held from 8:30 a.m. to 10:30 a.m. at the Diamond State Port Corporation in Wilmington. Attendance is free for World Trace Center Delaware members and $50 for non-members. Source: Delawareonline

South Sudan and Somalia may not be allowed into the East African Community unless they return to stability and adopt democracy, EAC Chair President Jakaya Kikwete has hinted. While delivering the State of EAC Address in Bujumbura on Thursday last week, President Kikwete said democracy, good governance, human rights and rule of law are critical tenets of the EAC. “Better governed member states contribute to a prosperous region... badly governed states frustrate integration. It impedes trade, co-operation, as well as movement of people, goods, services and capital. Moreover, it deters investment and makes the region an unfavourable destination for investment and trade,” said President Kikwete South Sudan has been pushing to be admitted to the EAC since 2011, soon after it obtained Independence from Sudan. The 1999 EAC Treaty sets out conditions for membership, including adherence to universally acceptable principles of good governance, democracy, rule of law, observance of human rights and social justice. At the EAC Heads of State Summit in Nairobi on February 20, the five presidents agreed that the final negotiations on the bid by South Sudan to join the community should begin between March and August 2015 despite its current security situation. The EAC heads of state have been at the forefront in calling for an immediate end to hostilities in South Sudan. In December 2012, EAC members rejected South Sudan’s application, citing its periodic conflict with neighbouring Sudan, not holding democratic elections and lack of a democratic culture. At the time, Tanzania was concerned about...

The EAC has deferred the clearing of sensitive goods through the Single Customs Territory until some concerns have been addressed. The four products — sugar, alcoholic and non-alcoholic drinks, second-hand clothes and edible oil — were withdrawn by Kenya, Uganda and Rwanda after stakeholders termed them as “controversial goods.” “The lack of harmonised quality and inspection standards and uniform taxes by partner states on clearing goods, and the challenge of verifying the origin of the products, are the main issues on clearing these goods,” said Kenya Shippers Council chief executive officer Gilbert Langat. The goods will remain suspended until the issues are resolved, he added. EAC states’ national standards bodies are in the process of harmonising quality inspection procedures. The harmonised system is expected to facilitate the inspection of products at the first point of entry into the region. Harmonised standards mean that a conformity assessment will be done only once, instead of goods being assessed in each country. This is expected to increase efficiency in the movement of goods, the pace of trade and reduce costs associated with assessments. Mr Langat said sugar, in particular, is a sensitive product for the partner states and the challenge has been how to verify its source. Since 2008, imported sugar has been finding its way into the Kenyan market either illegally through its porous borders, or legitimately through Comesa. “It has not been easy to tell whether it is coming from the Comesa countries or outside, and since partner states have accused...