Application by the east African community for recognition as a regional economic community of the African union background information

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Trade Effects of the East African Community

This article evaluates the trade effects of the new East African Community, which fosters trade liberalisation among Kenya, Tanzania and Uganda. The analysis uses a disaggregated approach at the two-digit level of the Standard International Trade Classification. The commodities that will be particularly affected by the customs union are identified. The results show that considerable trade effects cannot be expected, except for a very narrow range of products. The transitional fund, which has been proposed to counter trade imbalances due to the new customs union in East Africa, becomes less urgent from this perspective.Customs Union, EAC, Kenya, Tanzania, Uganda, International Relations/Trade,

Regional Trade Integration in East Africa: Trade and Revenue Impacts of the Planned East African Community Customs Union

The paper provides empirical estimates for import and revenue implications that would follow implementation of the planned customs union between the East African Community member states Kenya, Tanzania, and Uganda. We use 2002 trade and trade policy data for the three countries to simulate the effect of the common external tariff and other trade policy changes that will follow the customs union implementation on import flows and customs revenue. We also discuss customs exemptions and the effect of the customs union implementation on balance of payments.International Trade, Regional Integration, Africa, East African Community (EAC), Fiscal Impacts, Balance of Payments Effects of Trade Integration

East African Community Law

Written by leading experts in EAC and EU law, including the President of the EACJ, East African Community Law is the first comprehensive and open-access text book on EAC law which also provides a systemic comparison with the EU. Readership: All interested in East African Law, European Law, International Law, Comparative Law and Human Rights

The need to develop a successful competition regime in Uganda: an analysis of the factors hindering the operationalisation and implementation of the East African Community Competition Act

Uganda is in the process of enacting a competition law. Like most developing countries, it faces a unique adoption process, local circumstances and concerns that makes the competition law and enforcement practices distinguishable from other jurisdictions. This research will analyse the need for development of a successful competition regime in Uganda by highlighting the factors that should inform the law and policy. The study will analyse the adequacy of the current competition bill 2004 in comparison with the competition laws of Kenya, Tanzania and South Africa and propose that Uganda needs to develop a competition regime that is suited to its local development needs. The East African Community (EAC) aimed at enhancing trade liberalisation and development, among other sectors adopted the East African Competition Policy in 2004 and subsequently the East African Legislative Assembly enacted the East African Competition Act in 2006. However to date an East African Community Competition Authority has not been established and the law is not yet operational. The study will further appraise the challenges to the operationalisation and implementation of the East African Community Competition Act and suggest that apart from the fact that Uganda has not enacted a competition law as required by the East African community Protocol, there are other significant challenges hindering the operationalisation and implementation of the East African Community Competition Act

Is the East African Community an Optimum Currency Area?

This paper investigates whether the East African Community (EAC) constitutes an optimum currency area (OCA) by estimating the degree and evolution of business cycle synchronization between the EAC countries. We also investigate whether the degree of business cycle synchronization has improved after signing of the EAC treaty in 1999. The degree of business cycle synchronization is estimated using an unobserved components model of structural shocks obtained from a structural VAR model. We then use a time-varying parameter model to estimate the evolution of business cycle synchronization. Our results indicate that the proportion of shocks that is common across different countries is small, implying weak synchronization. However, we also find that the degree of synchronization has improved after signing of the EAC treaty in 1999.East African Community, Optimum Currency Area, Business Cycle Synchronization, Structural VAR, State-Space Model

An economic integration zone for the East African Community : exploiting regional potential and addressing commitment challenges

Integration in the East African Community offers significant opportunities not only to expand trade among member states, but more importantly to scale up regional production to take advantage of much larger global market opportunities. Special economic zones are a potentially valuable instrument to facilitate the integration of regional value chains in support of this scaling up. They also have the potential to deliver powerful demonstration effects on the benefits of integration and to help entrench the integration process. This paper discusses the proposal for developing an"economic integration zone"in the East African Community. The benefits of such a zone could be substantial, as would be the practical challenges to implementation -- in particular the political economy challenges. However, a number of institutional and commercial solutions exist to address these challenges.Debt Markets,Emerging Markets,Economic Theory&Research,Banks&Banking Reform,Public Sector Economics

The Drought and Food Crisis in the Horn of Africa: Impacts and Proposed Policy Responses for Kenya

As the world begins to feel the effects of climate change, the frequency of droughts is increasing in the Horn of Africa. In Kenya, the drought and food crisis affect welfare through two main channels. The first channel is the increased mortality of livestock in drought-affected areas, which are home to 10 percent of the country’s population. The second channel is by exacerbating increases in food prices, which are largely driven by worldwide price trends. Considering these two channels, this note identifies four broad policy changes that can reduce Kenya’s future vulnerability to such shocks: (i) investment in people in the arid and semiarid lands; (ii) reform of Kenya’s maize policy; (iii) review of the East African Community grain trade policy; and (iv) formulation of a unified social protection system.climate change, drought, horn of Africa, Kenya, food crisis, famine, price shocks, maize, East African Community, social protection

The Role of Revenue Authorities in International Trade Facilitation in East African Community

Purpose: The study examines the role of revenue authorities in facilitating international trade in the East African Community. It specifically seeks to establish the degree of integration of revenue authorities in member countries of the East African Community; to assess the individual role played by revenue authorities in member countries of the East African Community to facilitate trade; and to examine the collective role played by revenue authorities in member countries of the East African Community to facilitate trade. Approach/Methodology/Design: A qualitative approach with a special focus on explanatory design was used to collect and analyze study data. The primary evidence and reports available are used to establish the role played by revenue authorities in trade facilitation. Seven (7) key informants from Kenya, Uganda and Tanzania were interviewed. The responses obtained were analyzed thematically.   Findings: From these findings, it is determined that there are major steps and strategies taken by revenue authorities in the East African community to facilitate international trade. One of these steps was the introduction of a single bond for member countries, whereby traders are allowed to have a single bond for their imported goods for all countries through which their goods pass. Revenue authorities are also implementing integrated customs programs such as regional electronic cargo tracking systems (RECTS) and customs interconnection as a means of increasing the efficiency and effectiveness of customs administration. Through the authorities, a Single Customs Area (SCT) was implemented thereby streamlining the movement of goods throughout the East African Community. The authorities have also introduced a trading information portal, a platform intended to utilize trade information among traders in member countries.   Originality/value: To improve trade facilitation in the region, revenue authorities need to advance their cooperation, thereby streamlining the implementation of key trade facilitation policies. Embracing a more integrated system will be critical for authorities to work closely together, reducing process duplication and improving the flow of operations across member countries to facilitate international trade