The Impact of Non-tariff Barriers on Trade in the East African Community: a Case of Kenyan Exporters to Tanzania

Abstract

Globally, economic integration has been facilitated by economic growth via free trade. Countries have adopted regional trading blocs as a strategy to increase global competitiveness. In the East African Community (EAC), Kenya and Tanzania are trading partners in the manufacturing and agricultural sector. The Kenyan exporters to Tanzania however, face a number of barriers including the non-tariff barriers. The study was aimed at assessing the impact of non-Tariff Barriers on the East Africa Trade: The case study of Kenya and Tanzania. A descriptive research design was utilized. 2,654 respondents was the target populous of the study. However, by using the Yamane’s formula, a sample of 348 respondents was established. The data was analyzed via descriptive and content analysis for the quantitative and qualitative data gathered. From the analysis the study identified that there exist a number of non-tariff barriers that hindered trade with Tanzania with regards to Kenyan exporters. The non-tariff barriers identified for the study were Lack of harmonization in working hours; delays at weighbridges; multiple police road blocks and mobile control; license for goods in transit; entrance fees and grace periods; poor trade information dissemination; and Corrupt police and border officials. The study also confirmed that the Tanzania trade policy supported foreign companies, therein Kenyan exporters to Tanzania. The revealed that the non-tariff trade barriers affected Kenyan exporters since they resulted in corruption; delays of trade; uneven competition; and entry of illegal products into Tanzania. The study was not comprehensive since it only covered the trade between Kenya and Tanzania. The study recommends that non-tariff trade barriers should be abolished. Additionally, more studies need to be carried out on the trade evident between other countries in the East African Community.