Dar es Salaam —
Tanzanian and Kenyan traders will now freely export milk, wheat and
liquefied petroleum gas (LPG) into either of the countries’ markets
following a joint agreement announced yesterday.
Tanzanian and Kenyan traders will now freely export milk, wheat and
liquefied petroleum gas (LPG) into either of the countries’ markets
following a joint agreement announced yesterday.
However, those
trading in edible oils, confectionery, textile products and cement will
wait a little longer as Tanzania requested to complete an ongoing
verification exercise on the rule of origin for these products.
trading in edible oils, confectionery, textile products and cement will
wait a little longer as Tanzania requested to complete an ongoing
verification exercise on the rule of origin for these products.
Representatives of
the two governments told reporters yesterday that they have struck an
agreement to quickly remove trade barriers that appeared to have
escalated recently. The agreement was reached following a three-day
consultative meeting held in Dar es Salaam. The Permanent Secretary in
the Ministry of Industries, Trade and Investment. Prof Elisante Ole
Gabriel and his Kenyan counterpart Dr Chris Kiptoo broke the news
shortly after ending their closed door meeting under the banner of
‘Kenya Day Trade and Investment Forum.’ Members of the private sector
from both countries were in attendance.
the two governments told reporters yesterday that they have struck an
agreement to quickly remove trade barriers that appeared to have
escalated recently. The agreement was reached following a three-day
consultative meeting held in Dar es Salaam. The Permanent Secretary in
the Ministry of Industries, Trade and Investment. Prof Elisante Ole
Gabriel and his Kenyan counterpart Dr Chris Kiptoo broke the news
shortly after ending their closed door meeting under the banner of
‘Kenya Day Trade and Investment Forum.’ Members of the private sector
from both countries were in attendance.
The two officials
said they have signed a communiqué and matrix on how the sticky trade
issues should be resolved as Dar and Nairobi looked to better cross
boarder trade relations. Trade volume between the two countries, said Dr
Kiptoo, has slowed to $285 million in 2017 from $420 million in 2012.
Prof Ole Gabriel said Tanzania Revenue Authority (TRA) and Kenya Revenue
Authority (KRA) have been directed to urgently meet and work on tax
matters that were a bottleneck in the conduct of cross-border business
between the two neihbouring countries whose trade volumes across the
boarder have plummeted by more than half.
said they have signed a communiqué and matrix on how the sticky trade
issues should be resolved as Dar and Nairobi looked to better cross
boarder trade relations. Trade volume between the two countries, said Dr
Kiptoo, has slowed to $285 million in 2017 from $420 million in 2012.
Prof Ole Gabriel said Tanzania Revenue Authority (TRA) and Kenya Revenue
Authority (KRA) have been directed to urgently meet and work on tax
matters that were a bottleneck in the conduct of cross-border business
between the two neihbouring countries whose trade volumes across the
boarder have plummeted by more than half.
“After our
discussions, we came to the agreement that the biggest challenge facing
traders between our borders is smuggling… .We have agreed to involve our
Home Affairs ministries to ensure that we totally eradicate the
problem,” he said. To curb smuggling, he said goods from either side,
entering the other country, must have a Certificate of Origin. Prof Ole
Gabriel said in line with the recently adopted Blueprint for the
improvement of business environment in Tanzania, the government will do
everything possible to ensure that it simplifies the procedures and
requirements for doing business in the country. “We have also launched a
business clinic that aims to diagnose business bottlenecks and
intervene promptly when there are distress signs.”
discussions, we came to the agreement that the biggest challenge facing
traders between our borders is smuggling… .We have agreed to involve our
Home Affairs ministries to ensure that we totally eradicate the
problem,” he said. To curb smuggling, he said goods from either side,
entering the other country, must have a Certificate of Origin. Prof Ole
Gabriel said in line with the recently adopted Blueprint for the
improvement of business environment in Tanzania, the government will do
everything possible to ensure that it simplifies the procedures and
requirements for doing business in the country. “We have also launched a
business clinic that aims to diagnose business bottlenecks and
intervene promptly when there are distress signs.”
Trade between the
two countries – whose combined gross domestic product account for 76 per
cent of the economy of the East African Community (EAC) – has been
characterized by mistrusts, resulting into banning of several products
from accessing the rival’s market.
two countries – whose combined gross domestic product account for 76 per
cent of the economy of the East African Community (EAC) – has been
characterized by mistrusts, resulting into banning of several products
from accessing the rival’s market.
Last year,
Tanzania banned unprocessed foods, milk products and cigarettes from
Kenya while the latter also banned LPG and wheat from the former. The
bans were only lifted after the intervention of President John Magufuli
and his Kenya counterpart, Uhuru Kenyatta. In a more recent row,
Tanzania and Uganda introduced taxes on Kenyan made confectioneries like
ice cream, chocolate, sweets and biscuits over Kenya’s use of
industrial sugar imported under a 10 per cent duty remission scheme.
Tanzania and Kenya contend that the products do not meet the required
local production certification as required under the rules of origin for
trading within the EAC bloc.
Tanzania banned unprocessed foods, milk products and cigarettes from
Kenya while the latter also banned LPG and wheat from the former. The
bans were only lifted after the intervention of President John Magufuli
and his Kenya counterpart, Uhuru Kenyatta. In a more recent row,
Tanzania and Uganda introduced taxes on Kenyan made confectioneries like
ice cream, chocolate, sweets and biscuits over Kenya’s use of
industrial sugar imported under a 10 per cent duty remission scheme.
Tanzania and Kenya contend that the products do not meet the required
local production certification as required under the rules of origin for
trading within the EAC bloc.
culled:footprint2africa
