2007年-世界发展银行全球_Options_for_Strengthening_East_African_Communitys_Trade_Integration_64页_931kb

Summary of Report No. 40978-AFR: Options for Strengthening East African Community's Trade Integration

Core Content

This report outlines key options for enhancing the trade integration of the East African Community (EAC), focusing on three main areas: consolidating the Customs Union (CU), developing a common trade policy, and streamlining overlapping trade commitments. It is prepared by the World Bank and the EAC Secretariat to support the EAC in achieving deeper regional integration and setting policy priorities, particularly in trade-related matters.

Main Recommendations

1. Conclude EPA Negotiations

• Urgency: The Africa Growth and Opportunity Act (AGOA) and the Economic Partnership Agreement (EPA) with the EU are critical for the EAC.
• Strategy: EAC member states should negotiate an EPA either as a unified group or as part of the Eastern and Southern Africa (ESA) Group.
• Focus Areas:
  • Market Access: Concentrate on agriculture, textiles and clothing (T&C), and fisheries, where EU preferences are significant.
  • Aid for Trade: Advocate for aid for trade within the EPA, including costed projects for trade facilitation and improving sanitary and phytosanitary (SPS) standards.
  • Services Inclusion: Encourage inclusion of services in EPA negotiations to promote domestic reforms and harmonize policies.
  • Avoid Sensitive Product Lists: Refrain from listing a long list of sensitive products and avoid a long implementation period.

2. Improve and Harmonize the Business Environment

• Objective: To increase investment and growth through a more competitive and attractive business environment.
• Actions:
  • Develop a program to reduce the cost of doing business in the EAC zone.
  • Collaborate with International Financial Institutions to support this initiative.
  • Make the EAC an investment-friendly destination to attract both foreign and domestic investment in export-oriented sectors.

3. Liberalize Services Trade

• Importance: Services are a major contributor to national income (43% in 2005) and have indirect impacts on other sectors.
• Key Services: Focus on transport, finance, and communications to enhance competitiveness.
• Recommendation: Conduct a diagnostic exercise to assess services policies and performance, identify constraints, and recommend improvements.

4. Eliminate Remaining Non-Tariff Barriers (NTBs)

• Current Issue: Intra-EAC trade is still hindered by numerous NTBs.
• Action: Implement a mechanism to identify, report, and monitor the elimination of NTBs.
• Need for Resources: Financial support is required to operationalize the findings of this study.

Key Priorities for the Next 12-18 Months

• EPA Negotiations: Finalize the EPA to establish a common trade policy and ensure market access for key sectors.
• Internal Border Post Reduction: Shift import revenue collection to entry points rather than internal border posts.
• Harmonization of Duty and Tax Exemptions: Align national exemptions and concession schemes to support the CU.
• Coordination among RECs: Work with COMESA and SADC to harmonize programs and reduce policy inconsistencies.

Long-Term Priorities

• Establish an EAC Regional Fund: To address economic imbalances and ensure equitable development among member states.
• Coordinate Programs among RECs: Focus on high-priority areas like one-stop border posts and cargo transit regulations.
• Avoid Merging CETs with COMESA: Prevent a merger of the EAC Common External Tariff (CET) with COMESA's CET to avoid compromising the EAC's integration process.

EAC Integration Status

• Establishment of the EAC: Signed in November 1999 and entered into force in June 2000.
• Progress: The EAC has made significant strides in regional integration, including the establishment of a customs union between Kenya, Tanzania, and Uganda in 2005.
• Membership Expansion: Burundi and Rwanda joined in November 2006 and became full members in July 2007.
• Integration Pathway: The EAC aims to progress from a FTA/CU to a Common Market by 2010, a Monetary Union by 2010, and a Political Federation by 2015.

Trade Regime and Implementation

• CET Structure: The EAC CET, effective from 2005, has two non-zero bands (10% for intermediate products, 25% for final products), with an average of 12.9%.
• Sensitive Products: 58 lines of sensitive products (e.g., dairy, wheat, sugar) are subject to higher tariffs.
• Tariff Dismantling: Asymmetric tariff reduction on intra-EAC trade has been implemented.
• Exemptions: Kenya and Tanzania have temporary exemptions on certain imports, while an export tax of 20% applies to raw hides and skins.

Institutional and Legal Framework

• Legal Basis: The EAC's integration is based on the Treaty of 1999, the Protocol for the Customs Union (2004), and the EAC Customs Management Act (2004).
• Implementation: Guided by three development strategies and a background study for the Common Market, completed in July 2007.

Conclusion

The report emphasizes the importance of a coordinated and strategic approach to trade integration within the EAC, highlighting the need for a common trade policy, reduced NTBs, and a harmonized business environment. It also underscores the significance of the EPA negotiations and the avoidance of merging with COMESA's CET to maintain the integrity of the EAC's integration process.