EDITORIAL: EA can only prosper if hurdles are removed

Opinion and Analysis

Parliament in session. We should look externally for solutions when no internal ones are forthcoming or viable. PHOTO | FILE 

By CAROL MUSYOKA

By BUSINESS DAILY

Reports that the East African Legislative Assembly (Eala) has passed a law aimed at compelling member states to eliminate trade barriers and end protectionism is long overdue.

It is quite worrying that despite the good intentions of the East African integration some of the partner states have been guilty of hindering smooth trade relations between them.

It is our utmost hope that the Elimination of Non-Tariff Barriers Bill, 2015, sponsored by the Council of Ministers and passed by the assembly will be assented to by the heads of state so as to ensure that integration within the bloc becomes a reality rather than mere talk.

As stated by the Council of Ministers, the non-tariff barriers that exist in the countries that form the East African Community should be eliminated for the integration process to succeed.

We concur as it would be an exercise in futility for the bloc to pass a law that is not enforceable within the borders of a partner state. The proposed law will bar the member countries from imposing any new trade barriers while seeking to identify and remove existing hurdles.

We have stated before that the only way a conducive trading atmosphere can be created in the region is if all members read from the same script and avoid actions that only hamper local and regional production.

Following the launch of the Common Market Protocol in 2010, many expected the transition to be smooth. However, this has not been the case as internal disputes have slowed down the free trade process.

For example, Kenya and Tanzania were recently embroiled in disputes that saw tourist vans from both countries denied access to their respective airports and national parks.

Kenya Airways’ flights into the neighbouring country were also reduced. The stalemate was resolved after the two presidents stepped in.

Kenya has also clashed with Uganda over trade hurdles at the Mombasa port. Some Kenyan companies have also called for a review of the EAC customs tax structure, arguing that heavy import duties are imposed on some commodities.

It is our ardent hope that the heads of state will hasten the signing of the Bill into law so that their citizens can reap the fruits of integration.

East Africa cannot compete in the global arena if members of its trading bloc are unable to remove barriers to trade. They must ensure that there is free flow of goods and labour.