The sluggish implementation of agreed taxation regulations and strict trading practices are once again forcing a decline in intra-regional trade in East Africa, costing the sub-continent’s economy millions of dollars.
According to a recent regional trade analysis, authorities have agreed on important policies but postponed their implementation. As a result, member states of the East African Community regularly violate the Common Market Protocol and work against regional integration goals by imposing non-tariff trade barriers (NTBs) and making recurrent requests for special tax treatment and exemptions.
Based on the East African Business Council’s (EABC) Intra-EAC Trade Brief Analysis report, trade between EAC member states decreased by more than 33 percent ($1.8 billion), to $3.6 billion in 2022 from $5.4 billion in 2021.
As seen by the study obtained by The EastAfrican, a news publication focused on news articles for East Africa, trade in grains, plummeted to $285.5 million from $607.2 million at the same time, and trade in mineral fuels, fell to $175.1 million from $618.2 million, had the biggest impacts on intra-EAC commerce. Sorghum and rice commerce fell, however maize exports surged by 63%, from $114.6 million to $187.1 million.
Source: Africa Business Insider
