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EABC calls for changes in regional NTBs Bill

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EABC calls for changes in regional NTBs Bill

EABC calls for changes in regional NTBs Bill
Photo credit: EAC

The regional business community has criticised the EAC Elimination of Non-Tariff Barriers to Trade Bill 2015, saying it needs extensive changes in order to be effective.

The East African Business Council (EABC) has pointed out that elimination of NTBs is strictly dependent on the political will of the concerned parties, with no consequence for non-elimination and no restitution for aggrieved parties.

To address this, EABC trade economist Adrian Njau proposes that the NTBs Act be taken back to the East African Legislative Assembly for amendment.

Mr Njau argues that the Bill should provide for an alternative dispute resolution mechanism, arbitration by the trade remedies committee and the ability to petition the East African Court of Justice.

The Bill insists merely restates the existing mechanisms to resolve disputes on non-tariff barriers in the region such as mutual agreement of the concerned partner states; implementation of the EAC time bound programme for elimination of identified NTBs; and regulations, directives, decisions or recommendations of the council as provided for under Article 9 on elimination of NTBs despite its failure to resolve disputes for several years now.

However, the extension in 2015 of the jurisdiction of the EACJ, to cover issues related to trade and commerce, provides another opportunity for arbitration of NTBs in the region.

“The EAC NTBs Bill, 2015, should be taken back to EALA for amendments,” EABC acting executive director, Lilian Awinja told The EastAfrican.

Tanzania is said to have already assented to the Bill, meaning that it has formally committed itself to a binding legislation to eliminate NTBs to trade among EAC partner states.

Sources said that the former Tanzania’s President, Jakaya Kikwete assented to the Bill, before he left the office.

The crucial Bill as it touted, is expected to spur intra-EAC trade NTBs are partly to blame for the still limited intra-EAC trade estimated at 22 per cent in 2014.

The EAC secretary general, Dr Richard Sezibera said EAC partner states have in the past three years, grown their trade volumes by nearly 22 per cent, up from 13 per cent during the early years of integration.

This is still comparatively low and ranks among the smallest levels of intra-regional trade globally. For instance, 70 per cent of the European Union’s trade takes place within the region.

Experts say that NTBs often limit market access, changing the quantities of goods traded, or increasing the prices of goods.

They come in various forms such as restrictive sanitary and environmental protection measures, import or export restrictions, price controls, arbitrary application of rules of origin and other trade-restrictive measures.

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