The Effects of Non-Tafiff Barrirers on Regional Trade in East Africa: The Case

Study of Malaba Border

Abstract

Non-Tariff Barriers to trade have greatly affected the East African regional trade despite the EAC Customs Union advocating for elimination of all NTBs to trade between and among EAC partner states. The decline in Kenya’s export to EAC region by 7.4 %; from Ksh 134 billion (2012) to Ksh 124 billion (2013) can for example be largely attributed to various NTBs to trade that still exist in the region. The aim of the study was to analyze the effects of NTBs on regional trade in East Africa; the case study being Malaba border. The research used primary and secondary data collected using interview schedules, questionnaires and focused group discussions. The respondents were selected from traders at Malaba border, Malaba residents, Ministry and Department officials and officials from URA and KRA. The questions targeted the prices of exports and imports with NTBs at the border and without, cost of doing business across the border and the volume and value of traded goods. The rules of origin, labeling law, corruption, police road blocks, cumbersome inspection requirements, entry requirements and lengthy clearing procedures were common NTBs. The research concluded that NTBs to trade at Malaba were responsible for the general negative impacts on trade. EAC should establish a competitive authority, increase the powers of EAC Committee on Trade Remedies, and harmonize some of the general laws guiding trade in the region so as to address the problem of NTBs to trade in the region accordingly. The research findings will greatly assist the EAC stakeholders by establishing the best action and other legal frameworks for the purpose of enforcing the rules provided by the EAC Customs Union and the Common Market Protocol which are relevant in addressing the problem of NTBs to trade at Malaba and within the EAC region.

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