Kenya -Tanzania Trade Disputes and its implications to the East African Community (Eac), 2005-2014

Abstract

Trade disputes between Kenya and Tanzania has characterized the historical relationship between the two countries. A number of studies examining trade disputes among the East African Community (EAC) member states have been undertaken. Specifically on Kenya-Tanzania, studies exist on their relationship under the first EAC, which collapsed in 1977. Not much has however been done on Kenya-Tanzania trade disputes after the re-establishment of the EAC in 1999. To fill the gap, this study therefore sought to examine trade disputes between Kenya and Tanzania and its implications to the EAC between 2005 and 2014. As a guiding framework, it used neoclassical realism owing to the theory’s incorporation of state-level and systemic-level factors interplay and how it influences state decisions. The study identified the main causes of the trade disputes between the two countries as the imposition by both countries of Non-Tariff Barriers (NTBs), lack of political goodwill, protocols implementation mismatch, membership to multiple Regional Economic Communities (RECs), varying levels of development and nationalistic ambitions and competition. Further the study identified a number of implications of the trade disputes to the EAC namely; slowing down the bloc’s integration, impeding its economic growth and development and the degradation of EAC’s strategic value. To address the trade disputes, the study has made a raft of recommendations including faithful implementation of the Non-Tariff Barriers Act 2017 and Single Customs Territory (SCT), sustained effort toward promoting the EAC to the citizens, embracing fair trade practices, incentivization of EAC-wide production and consumption and pushing for the implementation of more inclusive trade regimes such as the COMESA-EAC-SADC Tripartite Agreement and Africa Continental Free Trade Area (AfCFTA).