Unpacking intra-East African Community trade disputes

The East African Community (EAC) has been making significant strides in intra-regional trade as more countries join the bloc, positioning it as the most integrated economic block on the African continent. Despite these gains, the EAC is grappling with political conflicts among member states, trade disputes, and protectionist tendencies that could hinder further economic growth and development. In a recent interview with Dennis Karera, Vice Chair of the East African Business Council, he shed light on the challenges facing the region's economic integration and the opportunities that lie ahead. Karera highlighted the positive growth of the EAC, from the initial three countries of Kenya, Uganda, and Tanzania to the current seven-member bloc. The increased connectivity, open borders, and people-centered approach have facilitated easier movement of goods and people across the region. The implementation of initiatives like the Northern Corridor project and the East African Tourism Visa has further enhanced cross-border cooperation and tourism. However, despite the progress made in integration, intra-EAC trade remains relatively low, with the East African trading capital standing at about 15.34%. Karera emphasized the need for greater trade harmonization and unification to unlock the region's full economic potential. He identified sectors like mining and agriculture as areas with untapped opportunities for collaborative growth. The mining sector, for example, could benefit from joint processing and exports, leveraging the region's abundant natural resources more efficiently. Similarly, coordinated agricultural production and export strategies could maximize the region's agricultural output and competitiveness in global markets. Karera stressed the importance of improving infrastructure and fostering dialogue among member states to address trade barriers and streamline regulations. While the EAC has a framework for resolving disputes through mechanisms like the East African Court of Justice, more proactive efforts are needed to prevent conflicts and ensure business continuity. Karera acknowledged that national sovereignty and jurisdiction must be balanced with regional integration objectives to maintain harmony within the bloc. He advocated for continuous dialogue and collaboration to address trade disputes and promote economic cooperation within the EAC. Moving forward, the EAC faces the challenge of navigating political tensions and protectionist tendencies to realize its full economic potential and strengthen regional ties. By fostering greater trade harmonization, resolving conflicts through existing mechanisms, and promoting shared prosperity, the EAC can overcome current challenges and advance towards a more integrated and prosperous future.