Tanzania and its northern neighbour Kenya have agreed
to end their trade dispute, a move that is bound to increase intra-trade within
the East African Community (EAC). The agreement bodes well for unity and
development of the two countries, and we applaud both governments for realising
the significance of removing trade barriers within the six-nation bloc.
to end their trade dispute, a move that is bound to increase intra-trade within
the East African Community (EAC). The agreement bodes well for unity and
development of the two countries, and we applaud both governments for realising
the significance of removing trade barriers within the six-nation bloc.
The dispute saw Kenya banning cooking gas and wheat
imports from Tanzania, while the latter blocked Kenyan milk and tyres from
entering its territory. If nothing else, the row was making a mockery of the
efforts which the countries had put into enhancing regional integration.
imports from Tanzania, while the latter blocked Kenyan milk and tyres from
entering its territory. If nothing else, the row was making a mockery of the
efforts which the countries had put into enhancing regional integration.
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| Left: Hon. Adan Mohamed, Cabinet Secretary for Ministry of Industry, Trade and Cooperatives | Right:Hon Charles Mwijage Minister for Industry, Trade and Investment |
Trade between Tanzania and Kenya constitutes over 45
per cent of the entire trade within the EAC.
per cent of the entire trade within the EAC.
Thus – considering the relatively huge trade volume
between the two nations – it is our belief that the differences will not take
long to be ironed out once and for all. This is for the good of both countries
in particular and regional integration in general.
between the two nations – it is our belief that the differences will not take
long to be ironed out once and for all. This is for the good of both countries
in particular and regional integration in general.
Key issues discussed during the meeting ranged from
how to resolve multiple levies and other charges; lack of preferential trade
arrangements; the need for standardized inspection fees; delays at the border
checkpoints; slow customs procedures at border crossings and slow
implementation of relevant EAC directives.
how to resolve multiple levies and other charges; lack of preferential trade
arrangements; the need for standardized inspection fees; delays at the border
checkpoints; slow customs procedures at border crossings and slow
implementation of relevant EAC directives.
Private sector representatives from the two countries
made presentations highlighting trade and investment opportunities in aviation,
mining, petroleum and transportation- among many more- which the two countries
agreed to pursue as soon as the current trade barrier issues are resolved.
made presentations highlighting trade and investment opportunities in aviation,
mining, petroleum and transportation- among many more- which the two countries
agreed to pursue as soon as the current trade barrier issues are resolved.
We understand that Tanzania and Kenya considered many
factors before taking such drastic moves, which have been trade between the two
fall, albeit slightly.
factors before taking such drastic moves, which have been trade between the two
fall, albeit slightly.
Protectionism in itself is not a bad thing, but if and
when it is overdone, our countries may end up in a lose-lose situation.
when it is overdone, our countries may end up in a lose-lose situation.
Tanzania and Kenya need each other.
Improving the ease of doing business in the region is
paramount, if only because the people in the EAC bloc benefit from flourishing
regional trade. We strongly believe that there are a lot more benefits from
having open borders than there would be when countries unduly restrict trade.
paramount, if only because the people in the EAC bloc benefit from flourishing
regional trade. We strongly believe that there are a lot more benefits from
having open borders than there would be when countries unduly restrict trade.
