The Impact of Non-tariff Trade Barriers on Economic Integration Between Kenya and Ethiopia
Abstract
The primary focus of the study is to examine impact of non-tariff trade barriers on
economic integration between Kenya and Ethiopia. The study seeks to achieve three
specific objectives. First it will identify the non-tariff trade barriers that affect economic
integration between Kenya and Ethiopia, secondly, to investigate challenges of border
clearance procedure on import-export relation between Kenya and Ethiopia and lastly to
determine and examine the measures taken to improve the implementation of bilateral
trade agreement, investment between Ethiopia and Kenya to facilitate economic
integration. The study was conducted in Nairobi County where Ministry of Foreign
Affairs of Kenya, Ministry of Trade and Industry, Kenyan National Chamber of
Commerce and Industry, Embassy of Ethiopia, and business community involved in
Export and import are located. This was chosen for the convenience of collecting primary
data using interview guides from experts, diplomatic missions and traders who own firsthand
information about the topic under investigation. The study used data collected from
primary and secondary sources. The research applied quantitative and qualitative research
approaches. The questionnaires administered to collect first-hand information from
respondents. The study finds that non-Tariff trade barriers contribute to the poor
performance of economic integration and Poor border clearance procedure management
which causes delays in exchange of goods and services and hence affects import-export
relations between Kenya and Ethiopia. Also the study hypothesis that poor
implementation of the bilateral trade agreements between Ethiopia and Kenya does not
affect the economic integration process is disproved. On the other hand, the study finds
that poor implementation of trade agreements affects economic integration between
Kenya and Ethiopia. The study recommends that the government of Kenya and Ethiopia
needs to invest in both physical and soft infrastructure development to enhance trade
relations between the member countries. Government and private sectors should also
invest to modernize customs and transit systems and strategies (inclusive of developing
one stop border posts and expand facilities such as inland container depots. Further, the
customs of the two countries should exchange information using harmonized information
data base that helps to clear good and services at the border. The study also recommends
that the Ethiopia customs office at Moyale Border needs to deploy educated personnel
and increase working hours as it is found by the study the customs office is functioning
very short time. The Study additionally recommends that Ethiopia and Kenya must
establish institutions and technical centers to collaborate their country wide Bureaus of
standards that allows to harmonize stringent standards, rules and regulations put in place
by respective customs for same products. For effective bilateral trade agreement
implementation such as Special Status Agreement, both countries should establish
separate institutions with the mandate to monitor, evaluate and follow-up the status of the
agreements and their impact on the economic integration of the two nations.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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