Trade Integration in the East African Community

The objective of this report is to carry out an evaluation of the impact of the CU and the potential benefits that the implementation of the CM may bring. The focus is on both types of integration, shallow and deep integration. The report starts by tracking the evolution of tariffs and trade flows in the run-up to the CU so as to describe how patterns of specialization have evolved in the region. This is done at a very detailed level of aggregation, the HS-6 digits product level, for the period 2000-2010. Then, in order to look at what the process of deeper integration, or the implementation of the CM, may bring, issues of intra-industry trade and similarity of export structures are analysed, both at the sector and product level.