Latest news with #CustomsUnion
Zawya
21-07-2025
- Business
- Zawya
Africa: 15 years of mixed fortunes for EAC Common Market protocol
Touted as the engine that has driven the East African Community (EAC) integration since 2010, the Common Market Protocol (CMP) marks 15 years of mixed fortunes. The protocol guarantees free movement of goods, services, labour and capital, as well as the right of establishment and residence. This initiative is part of the broader framework of four pillars, the others being Customs Union, Monetary Union and Political Federation. Beatrice Askul, EAC Council of Ministers chair, who is also Kenya's EAC Cabinet Secretary, said the Common Market has been instrumental in facilitating free movement of goods, services, labour and capital. The region has seen reduction of non-tariff barriers (NTBs), thanks to a single customs territory. At its inception following the coming into effect of the Customs Union in 2005, there were 254 NTBs, but there were fewer than 50 by May 2025. However, a recent analysis shows a decline in intra-EAC trade, from 16 percent to 14 percent.'Despite the vision, implementation has lagged, NTBs persist,' said Kennedy Mukulia, chairperson of the Committee on Legal, Rules and Privileges in the East African Legislative Assembly.'The ratification of the Protocol has been slow and uneven, especially Article 24, which provides for the establishment of the Trade Remedies Committee.'Recently, the NTBs Sectoral Committee on Trade considered the report on the status of NTBs in the region and noted that the number had increased from 10 to 48 from November 2024 to May 2025. Under the CMP freedom of services, partner states committed to liberalise seven priority service sectors, namely business, communications, distribution, education, financial, tourism and travel, and transport services. Services also account for the largest share of employment, particularly in Kenya, where 55.1 percent of the workforce is engaged in services-related jobs. Despite these figures, services trade remains underutilised, contributing less than 15 percent of GDP in most EAC partner States, except for South Sudan, where service exports constitute 63 percent of GDP according to ITC, 2024 report.'In the EAC, the expansion of tourism and transport services has contributed significantly to service exports, particularly in Tanzania, Kenya and Uganda, where these sectors constitute over 30 percent of total services exports,' said Adrian Njau, the lobby's acting chief executive.'However, challenges such as regulatory fragmentation, limited digital infrastructure and market access restrictions continue to constrain the full realisation of services trade potential.'New commitments have been made in business, transport and financial services, strengthening the foundation for an integrated EAC services market. In addition, the Revised Schedule of the Progressive Liberalisation of Trade in Services which was adopted by 2024 has included horizontal commitments which will govern movement of mode 4 — Movement of Natural Persons. Previously the Movement of Natural Persons was very restricted as it was linked with the movement of workers. Under the Revised schedule, the four EAC Partner States; Burundi, Kenya, Rwanda, and Uganda, made a commitment to allow temporary Movement of Natural Persons under five categories which are contractual service suppliers, independent service suppliers, Business visitors, Intra Corporate Transfers (ICT), Trainers. Tanzania made commitments on the five categories except ICT and trainers. However, labour mobility still faces substantial obstacles. While Kenya, Uganda, and Rwanda have abolished work permit fees, challenges remain in Tanzania and Burundi. Tanzania still charges work permit fees for EAC nationals while Burundi is yet to embrace labour mobility. For instance, professionals in legal, engineering, and financial services face differing national compliance requirements, limiting their ability to work freely across borders. A recent example was the deportation of Senior counsel Martha Karua by Tanzanian authorities when she travelled to Dar es Salaam to morally support Chadema Party leader Tundu Lissu who is currently on trial over treason charges'We must also review and amend national laws that contradict the spirit of the Protocol. And we must promote mutual recognition agreements to ensure that our professionals can work seamlessly across borders,' said Mukulia. Another significant development is growth in service exports, positioning the EAC as a net exporter of services. Between 2018 and 2022, total service exports increased from $14 billion to $17.1 billion, driven by strong performance in tourism, financial services, and ICT. Kenya continues to lead as the largest exporter of services, while Rwanda, Uganda, and Tanzania have also expanded their service trade activities. The region has also made strides in digital integration, particularly through the One Network Area (ONA) initiative, which has lowered regional roaming charges and improved mobile communication. This initiative has enhanced regional connectivity, although some Partner States such as DRC and Somalia are yet to join the framework. However, some EAC countries including DRC and Somalia are yet to internalise EAC protocols slowing the process of interconnectivity. The EAC has been led down by the political class cronyism whose appointees head the various organs and institutions with zero knowledge on how to drive the integration agenda forward. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Yahoo
19-06-2025
- Business
- Yahoo
Türkiye exporters call for EU Customs Union overhaul for competitive edge
The current framework is more restrictive than facilitative for mutual trade relations, Gültepe said during a conference titled "The Transformation Journey of the Turkish Ready-to-Wear Industry". Hosted by the Istanbul Ready-to-Wear and Apparel Exporters' Association (İHKİB), the meeting saw representations from exporters, international brands, sector professionals, and experts. Gültepe, who also serves as chairman of İHKİB, highlighted that Europe remains a 'strategic market' for Türkiye's apparel sector. He said: 'We export approximately 70% of our apparel products to Europe. We hold a strong position in many European markets, particularly in Germany, Spain, and the Netherlands.' He also noted that being a nearshore supplier will not be enough in the medium and long term. The sector is working towards digitalisation and sustainability and has strategically deployed EU funds to facilitate this transition. So far, projects that have been completed or are in progress have benefitted from a total of €37m in grants from the EU. 'In this context, we also believe that the Customs Union must be updated in line with transforming economic paradigms. Furthermore, we consider it essential—and strongly recommend—that Türkiye should be included in the free trade agreements (FTAs) the EU signs with third countries, in order to establish diagonal cumulation,' Gültepe stated. During the meeting, European Apparel and Textile Confederation (EURATEX) president Mario Jorge Machado, also called for urgent initiation of a Customs Union modernisation process to 'unlock' the capability of cooperation in the sector between the EU and Turkey. 'In this uncertain environment, the EU and Turkey can offer the world a different model based on strategic resilience, sustainable innovation, and shared prosperity,' Machado said. American Apparel & Footwear Association (AAFA) president Steve Lamar said: 'As we all seek predictability amid uncertainties in the coming months and years, I believe Turkey will successfully leverage these strengths. Brands and retailers want fewer but more reliable partners with similar values, and with the right approach, there is every reason to believe that the Turkish industry will be part of this transformation journey.' Recently, İHKİB and the Bilişim Vadisi -Technology Development Zone signed a 'cooperation protocol' to elevate the Turkish apparel industry's position in the international market. "Türkiye exporters call for EU Customs Union overhaul for competitive edge" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Express Tribune
18-05-2025
- Business
- Express Tribune
Pakistan must not miss trade wave
While others deepened economic integration and opened their markets, Pakistan missed a crucial opportunity to align its economy with the rapidly growing neighbour – China. photo: file Listen to article The recent trade deal between the United States and China, cutting reciprocal tariffs by 115% and easing key restrictions, may have cooled tensions, but it has not dispelled the deep uncertainty gripping global trade. Traditional alliances are shifting, and countries are scrambling to secure new economic lifelines. In a dramatic departure from the past, trade agreements that once took years are now being concluded in a matter of weeks. This acceleration signals not just urgency, but a fundamental recalibration of global commerce in an increasingly unpredictable world. Following a wave of tariffs initiated by President Trump, US negotiators are now working to finalise trade deals with multiple countries. Aside from China, the US has only concluded a trade agreement with the UK as of May 8, 2025. Negotiations are currently underway with India, which has reportedly offered to cut tariffs to below 4% and eliminate duties on 60% of tariff lines. In return, India seeks exemptions from the current and future US tariff hikes and preferential access for key export sectors. After negotiating a ceasefire between Pakistan and India, President Trump has committed to increasing bilateral trade with Pakistan as well. Pakistan must develop a clear strategy to expand its exports to the US, where it currently holds only a 0.17% share of total imports, far behind peers like Bangladesh. Tapping even 1% of this market could multiply Pakistan's exports sixfold, but this requires moving beyond low-value textiles and clothing into higher-value sectors such as engineering goods, pharmaceuticals, and IT services to close the gap with regional rivals. China is also recalibrating its priorities. Following a high-level conference on relations with neighbouring countries, President Xi Jinping embarked on a tour of regional countries including Vietnam, Malaysia, and Cambodia aiming to deepen economic integration. This week, China is hosting the Brazilian president and other senior officials of Latin American countries to enhance their ongoing trade and industrial collaboration, infrastructure projects, and technology partnerships. Pakistan signed a free trade agreement (FTA) with China in 2006, making it one of the early movers. However, unlike peer countries such as Vietnam and Thailand, Pakistan failed to capitalise on China's economic rise due to its persistent protectionist stance. While others deepened economic integration and opened their markets, Pakistan missed a crucial opportunity to align its economy with a rapidly growing neighbour. A stark contrast can be seen in Turkiye's experience with the European Union. After entering a Customs Union with the EU in 1996 and eliminating tariffs on manufactured goods, Turkiye transformed its trade landscape. By 2023, bilateral trade with the EU reached nearly €206 billion, with Turkiye's exports to the EU being €111 billion. The EU now accounts for over 40% of Turkiye's exports consisting of high-value goods such as motor vehicles, machinery, and electrical equipment. Similarly, when Mexico joined the North American Free Trade Agreement (Nafta) in 1994, it underwent a major export transformation. Its exports surged from $51 billion in 1993 to an estimated $594 billion in 2023. Moving beyond raw materials like oil and agricultural products, Mexico shifted towards exporting high-value manufactured goods, including automobiles, electronics, and machinery. This industrial evolution, supported by strong US investment and supply chain integration, has positioned Mexico as the top source of goods imported into the United States, underscoring the depth of economic ties between the two countries. These examples highlight how deep economic integration with major partners can substantially increase industrial growth, investment and exports. Unlike Turkiye or Mexico, Pakistan has largely maintained tariffs on consumer goods and has additionally imposed regulatory and other duties on a wide range of Chinese imports. Today, as China seeks to urgently relocate parts of its manufacturing base to partner countries, Pakistan has a renewed opportunity. It should not be fearful of deeper linkages but actively build and leverage them. A recent World Bank study reinforces this potential, showing that where Pakistan reduced import duties, it boosted export competitiveness by lowering input costs and encouraged a shift of resources away from less competitive sectors. As global trade patterns shift and major powers readjust their economic alliances, Pakistan stands at a pivotal moment. The world is moving fast – agreements are being signed, supply chains are relocating, and new sectors are emerging. If Pakistan is to avoid being left behind once again, it must act decisively. This means shedding outdated protectionist policies, pursuing strategic trade agreements with key partners like China and the US and investing in the competitiveness of high-value export sectors. The window of opportunity is open, but not indefinitely. Bold, forward-thinking policy choices today will determine whether Pakistan becomes a central player in the evolving global trade order or remains on the margins as it has done so far. The writer is a Senior Fellow at the Pakistan Institute of Development Economics (PIDE). Previously, he has served as Pakistan's Ambassador to WTO and FAO's representative to the United Nations at Geneva
Yahoo
02-04-2025
- Business
- Yahoo
Trump just proved Brexit was the best decision Britain ever made
We have not seen much in the way of deregulation. Nor have we signed many blockbuster trade deals. And yet for anyone who is still wondering what the benefits were of Brexit, we now have a decisive answer. It has allowed the UK to escape the worst of Donald Trump's tariff wars — and in the medium term that could pay extraordinary dividends. As he unveiled his global tariffs at the White House, the UK was mercifully low down on the list. It wasn't quite the 'nul points' we often get at Eurovision, but our exporters will only face a 10 per cent levy on everything they sell into the US. It was less than much of the rest of the world. And perhaps most importantly, it was only half the 20 per cent imposed on the EU. Sure, that will still hurt. The United States is our single biggest export market, and the levies will depress demand. Even so, there is no question that we have been let off relatively lightly. And we can thank Brexit for that — for three reasons. First, if we were still part of the bloc, or even the Customs Union as hardcore Remainers would like us to be, we would be facing an immediate 20 per cent tariff rate, twice as high as we now will. Next, the EU will almost certainly start a pointless tit for tat tariff war. It will impose retaliatory tariffs, prompting another round of higher levies from the White House, until tariffs hit 40 or 50 per cent on both sides. Inside the EU, we would have no choice but to go along with that. Instead Sir Keir Starmer and his Chancellor Rachel Reeves should be able to see that there is no point in trying to humiliate Trump or force him to back down. It won't work. Our tariffs will stay at 10 per cent and we may even be able to negotiate them even lower or eliminate them completely, something the EU will find impossible. Finally, it will mean British industry now has a clear competitive advantage over the rest of Europe. For Americans, a Scotch will be cheaper than Cognac, and Burberry cheaper than Hermes, but still with a luxury feel. Even better, there will now be a powerful incentive for EU manufacturers to ramp up production in the UK when they are selling products into the US. They will face lower tariffs while still manufacturing in Europe. A few may even move completely. Of course, the tariffs will still damage the global economy. In effect, they are a huge tax increase, and one that will be paid by American consumers. They will leave the international economy in far worse shape than it was. Even so, the UK has clearly escaped relatively lightly. We might even be better off. And we have our departure from the EU to thank for that. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
02-04-2025
- Business
- Telegraph
Trump just proved Brexit was the best decision Britain ever made
We have not seen much in the way of deregulation. Nor have we signed many blockbuster trade deals. And yet for anyone who is still wondering what the benefits were of Brexit, we now have a decisive answer. It has allowed the UK to escape the worst of Donald Trump's tariff wars — and in the medium term that could pay extraordinary dividends. As he unveiled his global tariffs at the White House, the UK was mercifully low down on the list. It wasn't quite the 'nul points' we often get at Eurovision, but our exporters will only face a 10 per cent levy on everything they sell into the US. It was less than much of the rest of the world. And perhaps most importantly, it was only half the 20 per cent imposed on the EU. Sure, that will still hurt. The United States is our single biggest export market, and the levies will depress demand. Even so, there is no question that we have been let off relatively lightly. And we can thank Brexit for that — for three reasons. First, if we were still part of the bloc, or even the Customs Union as hardcore Remainers would like us to be, we would be facing an immediate 20 per cent tariff rate, twice as high as we now will.
