Trade Barriers And Economic Integration: A Case Study Of Kenya And Uganda

Abstract

The exchange of capital, goods and services across international borders or territories is known as international trade. This study focused particularly on the bilateral trade between Kenya and Uganda and the effects that certain barriers to trade have on the countries’ economic integration. The study aimed at examining the effects of trade barriers on economy integration between Kenya and Uganda. A descriptive survey was conducted to collect detailed description of the existing status in Uganda. This was both qualitative and quantitative data collection. The research design was appropriate because of its purpose and objective, which was to collect detailed description of the existing status with the intention of employing data to improve the current conditions. The study involved the Uganda Embassy, Ministry of Foreign Trade and traders of both Kenyan and Ugandan nationality. For consistence it focused on relative individuals under common areas named. The study concludes trade barriers affected economic integration between Kenya and Uganda. The study concludes that a large trade potential exists between Kenya and Uganda and that trade liberalization through regional cooperation initiatives will enhance the realization of this potential. More appropriate trade policies are needed. While policies are being considered, and to some extent implemented, emphasis should be given to the elimination of trade obstacles, such as nontariff and institutional barriers, which increase transaction costs for importers and exporters. The study also concludes that there is need for support coordinated regulatory reforms and setting up of regional regulatory institutions as countries invest in regional infrastructure and liberalize trade in services. The objective of maximizing revenue collection through high tariffs is sometimes considered by governments in a short-term perspective and overrides other important criteria, such as efficiency in production through increased trade. The study recommends that infrastructure investments need to be complemented with trade facilitation measures for intra-regional trade to easily move across borders. Reducing bureaucratic requirements, streaming border management procedures and implementing trade facilitation measures will reduce border crossing times. Own reforms will be required to harmonize and reform transport-related standards and policies affecting trade and, eliminate obstacles to the free movement of goods and services including service providers. The study also recommends that Uganda and Kenya should provide technical assistance to the industries and it should be provided free. It also recommends that governments should serve as a check on one another so that Kenya and Uganda commitment is seen as more credible than a national commitment. The focus on regional infrastructure development will further boost regional trade, investment and integration and make the region economically competitive.