Ruto, Museveni deplore trade barriers in East Africa
At a joint press statement on Wednesday at the State House Nairobi, the two leaders expressed concern over reluctance by partners to open up markets.
The two leaders met in Nairobi to discuss various issues, including trade, security, and overall regional peace. The meeting came amid a rise of non-tariff barriers in a region where intra-trade is low.
The leaders discussed 'persistent non-tariff barriers that hinder the flow of goods and frustrate the objectives of regional integration under the EAC framework.'They did not name the culprits, but the meeting came as Tanzania roiled the regional Common Market by banning foreigners from engaging in 'small businesses.'In a Special Supplement on July 28, Dodoma argued it was shielding locals from unfair competition from foreigners. The private sector condemned the move.
According to the EAC Secretariat, intra-EAC trade has been rising steadily, albeit struggling with NTBs.
In 2024, the EAC's total trade with the rest of the world grew by 14.17 percent to $124.9 billion, from $109.4 billion. Intra-trade increased by 9.35 percent, reaching $15.2 billion, or 12.17 percent of the total trade volume.
Yet experts at the East African Business Council say this could be as high as 60 percent were member states intent on implementing decisions they make around the common external tariff and non-tariff barriers.
The EAC Council of Ministers says that addressing common external tariff (CET) challenges and eliminating NTBs would unlock $63.4 billion in regional trade.
According to President Ruto is the chair of the EAC Heads of State Summit.
He said that a Joint Monitoring Committee (JMC) will hold its mid-term review in October, which will be crucial on the matters which affects trade across the borders. JMC is the formal joint technical committee meant to respond to issues affecting the two sides.
Ruto and Museveni signed agreement on eight areas: trade, energy, mining, tourism, agriculture and animal industry, fisheries and aquaculture, investment promotion and transport.
Both reiterated the need for regional peace and stability.'We reaffirmed our position that security is essential to sustainable development and commended ongoing regional peace-building initiatives. We further agreed to collaborate closely in conflict resolution efforts, advocating inclusive approaches, supported by both regional and international frameworks,' their joint communique said.
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