EAC’s Bagamuhunda on addressing trade disputes and removing trade barriers

Trade and political disputes within the East African Community (EAC) have been causing a rise in non-tariff barriers and hindrances to trade in the region. Kenneth Bagamuhunda, Director General of Customs and Trade at the EAC, recently discussed solutions to these challenges in an interview with CNBC Africa. The EAC is focusing on establishing a common external tariff regime with non-state parties, eliminating tariffs within the region to promote free trade among member states, and removing trade barriers that impede the movement of goods across borders. Despite facing some setbacks in regional exports, EAC is optimistic about the future of integration and is actively addressing issues that hinder trade flow. Bagamuhunda highlighted both internal and external factors contributing to the decline and stagnation of regional exports. Challenges such as trade barriers, shocks from the global perspective, and data collection inaccuracies have impacted trade within the EAC. However, the EAC is implementing strategies like the Single Customs Territory to address data distortions and stabilize the trade environment. Additionally, political disputes between member states like Kenya and Tanzania, as well as Rwanda and Uganda, have affected trade flow. Countries have at times blocked products from neighboring states while allowing imports from faraway regions like Asia. In response, the EAC has established mechanisms to address trade distortions and disruptions through legal and operational frameworks, as well as institutional frameworks. Bilateral engagements between member states are ongoing to resolve trade disputes and ensure uninterrupted trade flow within the EAC. Talks between countries such as Uganda and Rwanda aim to restore trade relationships and strengthen trade cooperation within the region. The EAC Customs Management Act plays a crucial role in regulating trade activities among member states. The act, which supersedes national customs laws, is consistently applied across all EAC partner states and serves as a vital instrument in facilitating trade operations. Revenue authorities, courts of law, and tribunals frequently reference the EAC Customs Management Act in handling trade-related cases, underscoring its essential role in promoting trade harmonization and cooperation within the EAC.