Tariffs blamed for slow uptake of trade under AfCFTA

By Isaac OGANGA

Regional trade tariffs – which are taxes on imports or exports of goods between countries, are holding back East African partner states from taking full advantage of the African Continental Free Trade Area agreement (AfCFTA), according to Trade Cabinet Secretary Moses Kuria.

While tariffs are specific to each trade relation between the country of export and the country of import, Kuria has urged regional countries to liberalize taxes and levies under AfCFTA to boost intra-Africa trade.

“The removal of tariffs, the liberalization of services, and the simplification of customs procedures under AfCFTA will open doors to new markets and forge stronger trading partnerships across our borders,” said Kuria.

Adding that, “accreditation would be the linchpin that ensures the quality and safety of the products and services that flow within this expanded market.”

He made those remarks during the 14th Afrac General Assembly and Meetings – a cooperation of accreditation bodies, sub-regional accreditation co-operations, and stakeholders that seeks to facilitate trade and contribute to the protection of health, safety and the environment in Africa to increase Africa’s competitiveness.

The African Continental Free Trade Area (AfCFTA) was a landmark trade agreement designed to promote economic integration and trade among African countries, but other factors like inefficient customs procedures, bureaucratic red tape, and lengthy delays at border crossings have held back the idea’s full uptake.

Also thought to have held back its take-off is prolonged discussions on tariff offers for agricultural and sensitive goods.

Non-tariff barriers such as licensing requirements, technical standards, and sanitary and phytosanitary measures can be used to restrict trade.

“Addressing and reducing these non-tariff barriers is essential for realizing the full potential of AfCFTA,” noted Kuria, adding that Kenya can diversify its exports by targeting markets in other African countries.

“This can reduce the country’s dependence on a few key export markets and make its economy more resilient to global economic shocks.”

Others include, political instability and geopolitical tensions in some African regions have also affected trade and investment of AfCFTA.