The impact of non-tariff barriers on maize and beef trade in East Africa
On March 2, 2004, the East African Community (EAC) member states signed the protocol for the establishment of the East African Community Customs Union, which commits them, among others, to eliminate non-tariff barriers (NTBs) to increase intraregional trade. However, several NTBs are still appl...
| Autores principales: | , , , , , , , , |
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| Formato: | Conference Paper |
| Lenguaje: | Inglés |
| Publicado: |
Alliance for a Green Revolution in Africa and International Livestock Research Institute
2011
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/16494 |
| _version_ | 1855513013256192000 |
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| author | Karugia, Joseph T. Wanjiku, J. Nzuma, J. Gbegbelegbe, Sika Macharia, E. Massawe, Stella C. Freeman, H.A. Waithaka, M.M. Kaitibie, S. |
| author_browse | Freeman, H.A. Gbegbelegbe, Sika Kaitibie, S. Karugia, Joseph T. Macharia, E. Massawe, Stella C. Nzuma, J. Waithaka, M.M. Wanjiku, J. |
| author_facet | Karugia, Joseph T. Wanjiku, J. Nzuma, J. Gbegbelegbe, Sika Macharia, E. Massawe, Stella C. Freeman, H.A. Waithaka, M.M. Kaitibie, S. |
| author_sort | Karugia, Joseph T. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | On March 2, 2004, the East African Community (EAC) member
states signed the protocol for the establishment of the East
African Community Customs Union, which commits them,
among others, to eliminate non-tariff barriers (NTBs) to
increase intraregional trade. However, several NTBs are still
applied by member states, raising concerns among policy
makers and the business community. There is, however, no
information about the magnitude of the impact of these
NTBs. This study identifies the existing NTBs on maize and
beef trade in East Africa and quantifies their impact on trade
and the welfare of EAC citizens using a Spatial Equilibrium
Model (SEM). Data on NTBs were collected from traders
and transporters of maize and beef cattle in East Africa. In
addition, the study found that the main types of NTBs within
the three founding members of the EAC (Kenya, Tanzania and
Uganda) are similar. They include administrative requirements
(mainly licenses, municipal and council permits), taxes/duties
(mainly excise and cess duty), roadblocks, customs barriers,
weighbridges, licensing, corruption (e.g., through bribes) and
transiting.
The results of the welfare analysis vary across the three
countries, but the net monetary gains are positive in all cases.
A complete abolishment or a reduction of the existing NTBs
in maize and beef trade increases intra-EAC maize and beef
trade flows, with Kenya importing more maize from both
Uganda and Tanzania, while Uganda’s beef exports to Kenya
and Tanzania increase. As a result, positive net welfare gains
are attained for the entire EAC maize and beef sub-sectors. In
all cases, those who gain from the proposed reductions in NTBs
can potentially compensate the losers, leading to potential
improvements in welfare. These findings give compelling
evidence in support of the elimination of NTBs within the EAC
customs union. The study recommends taking a regional approach to
eliminating the existing NTBs since they are similar across the
member countries and across commodities so as to exploit
economies of scale. Other policy recommendations include
streamlining of administrative procedures at border points to
improve efficiency, and speeding up the implementation of
procedures at point of origin and at the border points. Finally,
the study recommends the need to design and implement
monitoring systems to provide feedback to the relevant
authorities on the implementation of measures to remove
unnecessary barriers to trade within the EAC region. |
| format | Conference Paper |
| id | CGSpace16494 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2011 |
| publishDateRange | 2011 |
| publishDateSort | 2011 |
| publisher | Alliance for a Green Revolution in Africa and International Livestock Research Institute |
| publisherStr | Alliance for a Green Revolution in Africa and International Livestock Research Institute |
| record_format | dspace |
| spelling | CGSpace164942025-11-04T16:58:00Z The impact of non-tariff barriers on maize and beef trade in East Africa Karugia, Joseph T. Wanjiku, J. Nzuma, J. Gbegbelegbe, Sika Macharia, E. Massawe, Stella C. Freeman, H.A. Waithaka, M.M. Kaitibie, S. livestock On March 2, 2004, the East African Community (EAC) member states signed the protocol for the establishment of the East African Community Customs Union, which commits them, among others, to eliminate non-tariff barriers (NTBs) to increase intraregional trade. However, several NTBs are still applied by member states, raising concerns among policy makers and the business community. There is, however, no information about the magnitude of the impact of these NTBs. This study identifies the existing NTBs on maize and beef trade in East Africa and quantifies their impact on trade and the welfare of EAC citizens using a Spatial Equilibrium Model (SEM). Data on NTBs were collected from traders and transporters of maize and beef cattle in East Africa. In addition, the study found that the main types of NTBs within the three founding members of the EAC (Kenya, Tanzania and Uganda) are similar. They include administrative requirements (mainly licenses, municipal and council permits), taxes/duties (mainly excise and cess duty), roadblocks, customs barriers, weighbridges, licensing, corruption (e.g., through bribes) and transiting. The results of the welfare analysis vary across the three countries, but the net monetary gains are positive in all cases. A complete abolishment or a reduction of the existing NTBs in maize and beef trade increases intra-EAC maize and beef trade flows, with Kenya importing more maize from both Uganda and Tanzania, while Uganda’s beef exports to Kenya and Tanzania increase. As a result, positive net welfare gains are attained for the entire EAC maize and beef sub-sectors. In all cases, those who gain from the proposed reductions in NTBs can potentially compensate the losers, leading to potential improvements in welfare. These findings give compelling evidence in support of the elimination of NTBs within the EAC customs union. The study recommends taking a regional approach to eliminating the existing NTBs since they are similar across the member countries and across commodities so as to exploit economies of scale. Other policy recommendations include streamlining of administrative procedures at border points to improve efficiency, and speeding up the implementation of procedures at point of origin and at the border points. Finally, the study recommends the need to design and implement monitoring systems to provide feedback to the relevant authorities on the implementation of measures to remove unnecessary barriers to trade within the EAC region. 2011-12-31 2012-02-14T11:12:17Z 2012-02-14T11:12:17Z Conference Paper https://hdl.handle.net/10568/16494 en Open Access application/pdf Alliance for a Green Revolution in Africa and International Livestock Research Institute Karugia, J., Wanjiku, J., Nzuma, J., Gbegbelegbe, S., Macharia, E., Massawe, S., Freeman, A., Waithaka, M. and Kaitibie, S. 2011. The impact of non-tariff barriers on maize and beef trade in East Africa.IN: International Livestock Research Institute. 2011. Towards priority actions for market development for African farmers. Proceedings of an international conference, Nairobi, Kenya, 13-15 May 2009. Nairobi: AGRA and ILRI: 356-369 |
| spellingShingle | livestock Karugia, Joseph T. Wanjiku, J. Nzuma, J. Gbegbelegbe, Sika Macharia, E. Massawe, Stella C. Freeman, H.A. Waithaka, M.M. Kaitibie, S. The impact of non-tariff barriers on maize and beef trade in East Africa |
| title | The impact of non-tariff barriers on maize and beef trade in East Africa |
| title_full | The impact of non-tariff barriers on maize and beef trade in East Africa |
| title_fullStr | The impact of non-tariff barriers on maize and beef trade in East Africa |
| title_full_unstemmed | The impact of non-tariff barriers on maize and beef trade in East Africa |
| title_short | The impact of non-tariff barriers on maize and beef trade in East Africa |
| title_sort | impact of non tariff barriers on maize and beef trade in east africa |
| topic | livestock |
| url | https://hdl.handle.net/10568/16494 |
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