WORLD TRADE  
ORGANIZATION   
WT/TPR/M/271 
5 April 2013 
 (13-1746) 
Trade Policy Review Body 
21 and 23 November 2012  
 
 
 
TRADE POLICY REVIEW 
 
EAST AFRICAN COMMUNITY 
 
Record of the Meeting 
 
Chairperson:  H.E. Mr. Eduardo Muñoz Gómez (Colombia) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF THE EAC  5 
III. STATEMENT BY THE DISCUSSANT 7 
IV. STATEMENTS BY MEMBERS 9 V. REPLIES BY THE REPRESENTATIVE OF THE EAC AND ADDITIONAL 
 COMMENTS  32 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 42 
 
 
Note:   Advance written questions by WTO Memb ers and the replies provided by the EAC are 
reproduced in document WT/TPR/M/271/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/271 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON  
1. The second joint Trade Policy Review of the East African Community (EAC) was held 
on 21 and 23 November 2012. The Chairperson H.E. Mr Eduardo Muñoz Gómez (Colombia) welcomed the delegation of Burundi headed by H.E. Mr Pierre Claver Ndayiragije, 
Ambassador, Permanent Representative of Burundi to  the WTO; the delegation of Kenya headed by 
H.E. Dr Tom Mboya Okeyo, Ambassador, Perm anent Representative of Kenya to the WTO; 
the delegation of Rwanda headed by H.E. Mrs Soline Nyirahabmana, Ambassador, Permanent Representative of Rwanda to the WTO; the delegation of Tanzania, headed 
by H.E. Mr Matern Yakobo Christian Lumba nga – Ambassador, Permanent Representative of 
Tanzania to the WTO; the delegation of Uganda , headed by H.E. Mr Maurice Peter Kagimu 
Kiwanuka, Ambassador, Permanent Representative of Uganda to the WTO; the delegation of the 
Secretariat of the East African  Community, which attended the meeting as an observer; and the 
discussant, H.E. Mr Yi Xiaozhun (People's Republic of China). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting. The report by the EAC was contained in document WT/TPR/G/271 
and that of the WTO Secretariat in WT/TPR/S/271. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delega tion of the EAC: Korea; Australia; Canada; 
United States; Pakistan; European Union; Japan; and Brazil. The following delegations submitted 
written questions after the two-week de adline: India, Turkey and China. 
4. The reports drawn up by the EAC countries and the WTO Secretariat set out the efforts made 
by those countries in recent years, both individually  and collectively, to strengthen and transform their 
economies. The reports also noted the important ro le that these countries assigned to trade in their 
strategies for economic devel opment and poverty reduction. 
5. Within the framework of the EAC they had all implemented measures to strengthen their 
institutional and legal frameworks for trade and had made progress in the integration process. 
This had been reflected on the one hand in the strong performance of their economies, despite the 
impact of the world economic crisis, and on the other hand in a significant increase in regional trade flows. However, there was scope for improvement at  national and regional leve ls. Examples of this on 
the macroeconomic level including reducing fiscal imbalances and the challenge that inflation posed for most of these countries. 
6. Agriculture continued to play a key role in the EAC countries in reducing poverty, creating 
employment and generating foreign exchange, but w as vulnerable because of climate change, use of 
traditional farming methods and a narrow exportable products base. Moreover, government regulation 
of the sector was at times excessive and produced distortions. Additionally, some countries applied 
taxes on the export of certain agricultural products . Although the share of manufacturing in GDP had 
risen, it was generally still low, essentially because of low productivity and the high costs of inputs 
such as energy and transport. Services were the prin cipal sector of the economy, driven in particular 
by the upsurge in telecommunications although in  most EAC countries, improvements in transport 
services and in regulating banking services rema ined a challenge. Members would probably be 
interested in having more information from the EAC countries on the further actions being considered 
to diversify their economies and attract further investment in infrastructure. 
7. At the regional level, the EAC countries had re doubled their regional integration efforts by 
adopting measures to consolidate the Customs Union,  which had been enlarged to include Burundi 
and Rwanda in 2009, and the launch of the Comm on Market in 2010. The programme to eliminate 
domestic tariffs officially conc luded in 2010 and various legal in struments had been adopted to WT/TPR/M/271 
Page 4  
 
  harmonize national trade policies, chiefly in cu stoms matters. Nonetheless obstacles to full 
establishment of the Customs Union remained, such  as the enforcement of a number of non-tariff 
barriers to regional trade and the limited liberalizat ion of services. Furthermore, policies had not yet 
been fully harmonized in areas such as duty and tax exemption and concession schemes, export 
regimes, sanitary and phytosanitary measures, and competition policy. The Chairperson was sure that 
Members would be interested to hear the EAC countri es' plans to move forward with integration, the 
harmonization of their trade policies and liberalization of services. 
8. Overall, this Review provided an opportunity to exchange views on matters of interest to 
all Members. These included: 
 General recognition that significant progress had been made in integration in the EAC and 
that this had contributed to the significant in crease in regional trade flows; considerable 
efforts still had to be made, however, to ach ieve full integration through the complete 
elimination of the internal barriers that were still in place.  
 The measures planned by the EAC countries to  streamline administrative procedures and 
establish a more attractive business climate for investment in both infrastructure and in 
production capacity.  
 The EAC countries had bound their tariffs separately within the WTO to ad valorem  rates 
while the Common External Tariff also contai ned mixed tariffs, raisi ng problems in relation 
to multilateral commitments. Moreover, in the cases of Burundi and Rwanda, CET ad 
valorem  rates on certain products we re higher than bound levels. 
 
 The measures planned at the nati onal and regional levels to address weaknesses in capacity to 
formulate and implement technical regulati ons and standards in the five countries. 
 
 One of the weaknesses in the EAC integration process was that each country belonged to 
several trade agreements and might continue to enter into agreements of this type 
individually. It was hoped that the negotia tions in the COMESA-EAC-SADC Tripartite 
Forum would help to resolve this problem. 
  WT/TPR/M/271 
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  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF THE EAC 
9. In terms of basic information that the five count ries have compiled, they have a total land area 
of 1.7 million square kilometres, a combined popul ation of 138 million people and a combined GDP 
of US$ 79.9 billion, and are currently purs uing market-oriented economic policies.  
10. The current phase of the EAC was established wh en the Treaty for the Establishment of the 
EAC came into force in July 2000 upon which the Partner States' set out a bold vision for their 
eventual unification and outlined a comprehens ive system of cooperation among themselves. 
11. The vision for regional integration in East Africa is to create wealth, raise standards of living 
of all people of East Africa and enhance the in ternational competitiveness of the region through 
increased production, trade and investments. 
12. The EAC aims to achieve closer and deeper integration among the Partner States, through 
policies and programmes in the political, economic , social and cultural fields, research and 
technology, defence, security, legal and judicial affairs for their mutual benefit. In the economic 
sphere, the EAC seeks to focus on trade and inv estment, monetary and fiscal policy, labour and 
capital markets. The priority for the EAC has been economic cooperation, which is expected to form 
the basis for political cooperation in the near future. 
13. To achieve these goals, the Partner States set out four stages of the integration process, 
beginning with the establishment of a customs uni on, then a common market, a monetary union and 
ultimately a political federation. 
14. Since the first joint trade policy review of Kenya, Tanzania, and Uganda in 2006, the 
membership of the EAC has grown with Bu rundi and Rwanda joining the Community on 
1st July 2007.  
15. The EAC has so far made impressive achievement s at the broader programmatic levels of the 
major pillars and stages of the integration, throug h implementation of the Customs Union for the past 
seven years and the Common Market since July 2010. The EAC countries are now working towards 
the establishment of a Monetary Union. 
16. Thus, since the last joint trade policy review , the EAC countries have witnessed the Customs 
Union get consolidated with great er confidence emerging from key stakeholders such as the economic 
operators in the region who are the ultimate beneficiaries of the integration efforts.  
17. At its heart, the Customs Union seeks to propel the growth of a larger EAC internal market, 
reduce administrative burdens on doing business in order to create an environment attractive for 
inward trading and investment for ec onomic expansion a nd development.  
18. Between 2005 and 2010, intra -regional trad e between the EAC countries increased by as 
much as 58%. This growth represents about 12% of the region's share in total trade with the rest of the 
world. It is clear that there is still a lot of poten tial to develop a worthwhile internal market in the 
region. 
19. The five countries are consolidating their ex ternal trade policy by undertaking trade 
negotiations as a bloc with key partners such as Common Market for Eastern and Southern Africa 
(COMESA) and Southern African Development Cor poration (SADC) Member States in the context 
of the Tripartite Free Trade Area, the EU and the United States.  WT/TPR/M/271 
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  20. The Partner States have put in place a number of strategic interventions to ensure that the 
Customs Union is fully functional. The interven tions include preparati on and adoption of legal 
mechanisms to operationalize the Customs Union.  The EAC Partner States have also created 
platforms for regular review of the customs union polic ies to ensure that ther e is incremental value on 
implementation of the customs union by the Partner States and also flexibility to ensure that 
commitments are not seriously breached. To ensure that there are other instruments to support the 
implementation of the Customs Union we have in  place a Standardization Act, a Competition Policy 
and law.  
21. The EAC Partner States have also articulated a shared objective of investment policies in 
order to make the region attractive to investors. At  the national level, the Partner States are in the 
process of simplifying procedures to facilitate foreign investments. 
22. The Partner States also recognizes the importan ce of easing technical barriers to trade as a 
way of improving regional competitiveness for all producers. A draft regional legal and regulatory 
framework is in place for the elimination of non-tariff  barriers. Considerable efforts are being made to 
remove impediments to trade and regional inte gration inside the national borders (uneven 
infrastructure development, non-recognition of other Partner States' standards, different regulatory 
and institutional requirements that have not been harmonized across the region). At the border there 
are challenges associated with f acilitating economic operators to ensu re that service delivery improves 
whilst also addressing non-tariff barriers that translate into lost time and higher transaction costs.   
23. Other than some projects on simplified trade regimes there have been efforts by the Partner 
States to establish One Stop Border Posts as one possi ble solution to curtailing most of the challenges 
at the border.  The issues at the border have attracted  the attention of all regulatory agencies that need 
to undertake a number of reforms for purposes of ensuring that their operations are well sequenced, 
linked and work seamlessly for purposes of enhanc ing trade facilitation. The countries have been 
doing their best to ensure that the proliferation of these challenges is kept to bear minimum in order to consolidate and sustain the gains from regional integration. 
24. Jointly the EAC Partner States have moved forward to establish a Common Market, whose 
implementation was launched on 1st July 2010. Th is basically aims at improving goods trade by 
bringing on board free movement of factors of production, services, right of establishment and right of residence.   
25. Implementation of the Common Market is gra dual over a period of 5 years. Between 2010 
and 2015 it is programmed that the four freedom s involving the free movement of persons, labour, 
capital and services shall be implemented in a phased manner.  
26. The autonomous economic reforms and trade lib eralization undertaken by a number of the 
EAC Partner States, since the late 1990s, have crea ted a supportive platform on which to build the 
regional agenda for the free movement of capital and for trade in services. This development has 
largely been inspired by national economic policy reforms. Indeed, the domestic policy liberalization 
has had the leverage and influence in bolstering the free movement of capital and services across the 
EAC borders. The banking, insurance and financial or stock markets ha ve particularly benefited from 
such policy space.  In more recent years, the EAC region has seen other services picking up 
momentum at regional level. These include retail trad e, health, Air transport and tertiary education.  WT/TPR/M/271 
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  III. STATEMENT BY THE DISCUSSANT (H.E. MR. YI XIAOZHUN) 
27. The essential objective of trade policy review is to achieve greater transparency in trade 
policies and practices of all Members, and hence contribute to the smoother functioning of the multilateral trading system. In this respect, the f eedback from this TPR will help Members understand 
the policies and practices of the EAC and their comme nts will be of use for the EAC in its future 
development. 
28. The African continent is well known as a continen t endowed with abundant natural resources, 
but it also proves to be culturally rich with many  enlightening proverbs. One of them goes, "when a 
friend asks for advice, there is no tomorrow". As an observer closely follo wing the development of 
our African friends, I will follow the wisdom of th is African proverb and offer my humble opinion 
today and now.  
29. Now let's get down to business. The first Trade Policy Review of EAC was held in the year 
2006. Since then, the annual growth rate for EA C countries stayed around 7%. This surely is a 
remarkable achievement, particularly considering the global financial crisis since 2008. Trade also 
registered a two-fold growth among the EAC countries thanks to their continuous integration efforts. 
In addition to their respective national vision plan , the EAC has stepped up its effort towards the 
single market and monetary union. Efforts are also under way in streamlining the customs procedures and documentation requirements.  
30. The achievements made by the EAC have dem onstrated again that trade liberalization 
combined with domestic reform is an effective way to achieve developmental objectives. Having said that, such figures should not be read in isolation. Rather they should be looked at in a historical and 
holistic manner, bearing in mind where the EAC countries have come from, where they are and where 
they are going. That is why, while congratulating the EAC countries for their achievement, we need to 
recognize significant development challenges that they are facing and work with them as partners to 
assist their future development. I believe this is  shared among Members, as proven by the number of 
written questions from a wide range of Memb ers covering a wide range of topics.  
31. Let me now draw your attention to another A frican proverb-"If you want to go fast, go alone.  
If you want to go far, go together". Indeed, as stated  in the Secretariat Report, despite their difference 
in terms of level of development, economic struct ure and social indicators, the EAC countries have 
been advancing together, hand in hand and should er by shoulder. They have identified their 
progressive objectives for the community, from establishing a customs union to developing a common market, subsequently to a monetary union and ultim ately a political federation. The EAC countries are 
also conscious of the challenges in materializ ing the customs union and common market, which has 
slowed down their journey toward the monetary union and afterwards. Therefore, it would be 
interesting to hear from EAC countries about how they could enhance their macroeconomic convergence and policy coordination, particularly ag ainst the broad background of the fragile global 
economy.  
32. On the trade aspect, as indicated by the Secr etariat Report, all EAC countries are suffering 
from supply-side constraints, fiscal deficits, non- tariff barriers, non-harmonization of trade regimes 
and sectoral policies. Non-tariff barriers (NTBs) remain major impediments to trade and business development in the EAC, which include but not lim ited to the non-harmonized technical regulations, 
inspection requirements, customs procedures and police roadblocks. We take note that the EAC 
Secretariat has identified 35 NTBs to eliminat e in December 2008 and every EAC country has 
established national mechanism to monitor progress. I am sure that Members are interested to know 
the progress and future steps in this respect. WT/TPR/M/271 
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  33. Furthermore, tariff is among the other areas that  need harmonization efforts. It is noted that 
Kenya, Tanzania and Uganda have fully complie d with the common external tariff (CET) system, 
while the new member states of Burundi and Rwanda are in the process of harmonizing tariffs with the CET. It is said that the EAC Secretariat ha s serious challenges in implementing the CET. More 
information on this aspect would facilitate the WTO Members to update their understanding and see 
whether they could help the EAC countries to respond to those challenges. 
34. While the intra-EAC trade record ed a steady increase, the EAC trade with the rest of the 
world is not on the same page. The value of EAC with countries outside this bloc has shown some 
violent turbulence during the period of review, a nd those countries are still dependent on the major 
developed countries as well as the other African countri es in terms of export. It would be appreciated 
if EAC countries could share with us what steps the EAC countries will take to diversify their export, 
taking the downbeat economic prospect in the EU  and the fragile U.S. economic recovery into 
account.  
35. On the macroeconomic aspect, let me turn to the composition of the GDP. At present, 
agriculture is at the core of the EAC economy, accounting more than 24% of GDP and playing an 
important role in poverty alleviati on and job creation. The tertiary sector, with the liberalization of 
telecommunication services and emergence of banki ng services, occupy around 47% of GDP in EAC 
countries. Meanwhile, manufacturing, together with  mining and construction,  has a relatively lower 
contribution to GDP, which indicates great growth potential in those sectors. Members show their 
great interest in knowing how the EAC countries pl an to achieve the parallel development among the 
three sectors, and in particular what measures are to be adopted to expand the export of manufacturing 
products. 
36. On the participation of EAC in the WTO, the EAC countries have been active in participating 
the Doha Development Agenda (DDA), where they  share the position of African Group, the ACP 
Group and the LDC Group as well. They have strong interests in a wide range of DDA subjects 
including but not limited to duty-free and quota-free market access, elimination of trade-distorting 
domestic subsidies and export subsidi es, improved special and differential treatment. It is fair to say 
that multilateral trade talks could deliver benefits  to the whole membership, including developing 
countries such as EAC ones. Therefore, I encour age the EAC countries to continue their active 
participation in the Doha round and urge the whole membership to solve the legitimate concerns of 
the most vulnerable group.  
37. On Aid for Trade, it is considered to be an e ffective tool in driving economic growth through 
improving competitiveness, increasing productivity a nd creating employment. I am happy to learn 
that the EAC countries benefited from over 100 t echnical assistance and capacity building programs 
in the past years. However, the fundamental a nd structural bottlenecks hinder this bloc from 
exploiting its growth potential, where Aid for Trade can continue to play its role in breaking those 
bottlenecks. I am sure that Members would like to learn more from the EAC countries on their 
specific developmental challenges and on how Aid fo r Trade could be enhanced to assist them in 
responding to such challenges.  
38. Let me conclude by quoting another African proverb, which goes "Never doubt that a small 
group of committed countries can change the world. Indeed it is the only thing that ever has". I 
believe the EAC can.  WT/TPR/M/271 
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  IV. STATEMENTS BY MEMBERS 
KOREA 
39. The EAC countries and Korea have been steadily e xpanding cooperation in the fields of trade, 
investment and development assistance.  Broadening partnership with African countries continues to 
be one of Korea's foreign policy priorities.  In th is vein, we are also very pleased to note that the 
African Union and Korea discussed progress to date as well as concrete ways to further enhance 
mutual cooperation at the third Korea-Africa Forum held in Seoul last month.  We very much hope 
and expect that our cooperative relations will be fu rther reinforced based on these and other initiatives 
between Africa and Korea. 
40. Turning to the EAC's overall economic pe rformance, we welcome the recent positive 
developments in the EAC countries including the fact  that they are recovering relatively well from the 
global economic crisis mainly thanks to good perform ance in agriculture and services sectors.  We are 
interested in further hearing from the EAC on how it intends to address the current challenges it faces 
such as low resilience, traditional farming practices, a narrow export base and low tourist arrivals, as 
the Secretariat report points out, as well as what role development assistance can play in more 
effectively helping the EAC countries overcome thes e constraints and achieve sustainable and robust 
growth. 
41. As far as the EAC's trade policies and practices are concerned, we would first like to 
recognize and praise its overall strong commitment to multilateral trading system.  We note with 
pleasure that the EAC was expanded to include Bu rundi and Rwanda during the period under review 
and that further efforts have been made to deep en regional integration.  We hope that the EAC 
countries will make the most of their regional integration to strengthen their competitiveness and 
better integrate into the global economy. 
42. At the same time, we would like to encourag e the EAC to continue to pursue structural 
reforms, further trade liberalization and improvement of the investment climate in a more coordinated 
manner, in order to achieve a full EAC custom s union and successful economic integration.  
Furthermore, overlapping membership of the EA C countries in two or more regional economic 
communities also needs to be addressed to cope with  the difficulties brought about by the differences 
in rules of origin and intra-regional trade libera lization mechanisms under the various agreements, as 
the Secretariat report indicates. 
43. We thank the EAC countries for providing answ ers to our advance written questions which 
Seoul will review carefully.  We  submitted additional questions to the Secretariat and expect to 
receive answers to them in due course as well. 
44. We would like to conclude by expressing our appreciation to the EAC countries, for their 
active participation in and contribution to the regular work of the WTO as well as the DDA 
negotiations.  Once again, we thank the delegation of  the EAC for their hard work in preparing for 
today's meeting, and wish them a very successful TPR. 
AUSTRALIA 
45. Australia was pleased to become formally accr edited to the EAC in 2012, through our High 
Commission in Nairobi.  The deepening of links  and cooperation with th is important regional 
institution is part of a broader Australian strategy to build engagement with East Africa, and Africa 
more broadly. WT/TPR/M/271 
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  46. Australia's trade and investment relationshi p with the region is healthy.  Australian 
investment in East Africa is growing, particularly in the resources sector.  In the year to June 2012, 
Australia's merchandise trade with the EAC as a whole exceeded AUD82 million, an increase of more 
than 20% over the previous year.  And Australia s ees potential for further growth.  Earlier this year, 
Australia announced its intention to join the Afri can Development Bank, which will lead to further 
opportunities for greater trade and investment, as wi ll the conclusion of an Air Services Agreement 
earlier this year with Kenya. 
47. Australia is optimistic about East Africa and its economic prospects.  During the review 
period, the region sustained impressive rates of economic growth, while at the same time making positive progress on a range of social indicators.  Prudent macroeconomic management and structural 
reforms have underpinned this ec onomic performance. While an ongoing challenge, inflation has been 
kept in check, even against the back drop of the global financial crisis. 
48. Australia acknowledges the significant progress made in gradually moving towards closer 
economic integration in the EAC region.  Australia would highlight in particular the successful launch 
of the Common External Tariff and duty-free trade amongst member states, which saw the intra-EAC 
trade grow from 7% in 2005 to 11.5% in 2011.  Au stralia encourages EAC members to be ambitious 
in the progressive reduction in the Common External  Tariff, next due to be reviewed in 2014.  
49. Australia also welcomes the emphasis on the upgrading of infrastructure in the region and 
encourages the EAC members to continue to move fo rward to tackle non-tariff barriers.  Efforts to 
improve customs and border clearanc e procedures in the EAC are welcome.  For example, measures 
like streamlining documentation and moving to elect ronic customs information sharing will benefit 
both importers and exporters in the EAC.  The EAC' s efforts in this area underlines the benefits of 
improved trade facilitation for developing countries,  which wold be consolidated by an early 
conclusion to a WTO Trade Facilitation agreement.  Similarly, Australia notes that some EAC members have previously shown interest in is sues raised by an extension of the Information 
Technology Agreement.  This is welcome, given the enabling role of the ICT sector for development, 
and the positive role that lower cost IT products would play. 
50. Australia looks forward to working closely w ith EAC members in the lead-up to the Ninth 
WTO Ministerial meeting to progress the Doha Round a nd to realise the significant benefits this holds 
for developing countries.  Australia shares a str ong common interest with the EAC on the importance 
of agriculture and we also recognise the importance of delivering on other development-related issues 
under the Doha negotiations.  Trad e Facilitation is one amongst a numbe r of Doha related issues that 
will deliver significant benefits to EAC and othe r African countries and we note that a successful 
WTO workshop on this issue was convened in Nairobi only last week. 
51. Australia is keen to provide constructive input  to this review process.  We have submitted 
questions covering specific aspects of trade a nd economic policies of East African Community 
countries.  Australia is particularly interested in seeking clarity on reforms of the legal and regulatory 
framework governing the mining sector in EAC countr ies.  These reforms are important to Australia 
not just because of the importance of this sector fo r economic growth in the EAC, but also because of 
Australia's involvement in this sector commercia lly and through developm ent cooperation programs 
like the Mining for Development Initiative and the Extractive Industries Transparency Initiative.  
Australia appreciates the responses provided and w ill examine them closely.  Australia wishes the 
EAC a successful trade policy review.  WT/TPR/M/271 
 Page 11 
 
 
  CANADA 
52. The fact that the East African Community has been among the fastest growing regions in sub-
Saharan Africa is no doubt due in part to the incr easing momentum of integration.  Alongside reduced 
civil strife, we've witnessed greater  attention, and greater commitment, to strong policies that will 
support effective and sustainable development.  
53. This commitment is set out in the Protocol on the Establishment of the EAC Common Market, 
which came into force in July, 2010, provides fo r the free movement of goods, labour, services and 
capital.  Under this mandate, EAC partners have accelerated their prior work on the creation of a 
harmonized framework of common and improved lega l and regulatory standards across the region.  
Canada welcomes the fact that over the past 7 year s, the EAC's five Govern ments have implemented a 
total of 62 regulatory reforms to improve the business environment for local companies and to 
encourage entrepreneurship in the region.   
54. And this focus has been responsive to the real -world needs of business.  Policy-makers have 
focused on simplifying business start-up processes,  strengthening the courts, improving credit 
information sharing and enhancing customs processes to facilitate trade.  Permit me to dwell for just a 
minute on the particularly salient subject of trade facilitation.  Since 2006, EAC economies 
implemented eleven trade facilitation reforms in such areas as electronic systems for customs 
declaration, risk management systems for inspecti ons and joint border coopera tion. This is a clear 
confirmation that trade facilitation is interest and benefit to both developed and developing countries. 
55. Canadian companies and entrepreneurs recognize this more attractive business environment.  
Our bilateral trade with the EAC as a group has gr own steadily since 2009 to reach US$ 191.8 million 
in 2011, ranking Canada as the EAC's 24th major trading partner.  While Canada already enjoys 
growing commercial relations with some EAC pa rtners and more modest ones with others, we 
consider that further regional integration am ong the EAC countries would present an even more 
opportunity.  The award of a contract to the Ca nadian company CANARAIL to design a railway line 
to link Rwanda and Burundi to ports in Tanzania  is only one illustration of this potential.  
56. But as the TPR report reveals, concerns rema in, and the integration goal has yet to be 
achieved.  As indicated in our questions submitted in advance of this meeting, Canada is interested to 
learn more about EAC's plan to harmonize its comm on external tariff with WTO commitments.  Other 
issues have been raised in the list of questi ons submitted by Canada for this meeting. 
57. More generally, the EAC's gl obal ranking in the World Bank Report on "Doing Business in 
the EAC 2012" has not improved since 2011 (115th).  This indicates that critical barriers to 
entrepreneurial activity and investment still prevail.   The political and legal challenges faced by the 
EAC leadership.  These present obstacles to the reali sation of the full economic potential of the EAC, 
including its ability to participate in global value ch ains.  For this reason, Canada considers it essential 
that each EAS country to continue with reform s that promote a positive business environment and 
macroeconomic stability, while respecting democra tic institutions and processes in a context of 
transparency and good governance.  
58. As a member of another significant regional a rrangement, the NAFTA, Canada also considers 
that the EAC economies would benefit from shar ing on a regional basis good practices in business 
regulation and linking reform initiatives.  While trade has expanded within the region since the 
establishment of the Customs Union in 2005, comp anies doing cross-boundary trade and investment 
are still subject to unpredictability and wide variat ions between the legal systems of the member 
economies. Canada therefore encourages the EAC to strengthen its Court of Justice with a view to 
enhancing a common regional legal e nvironment for local businesses.  WT/TPR/M/271 
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  59. Individually, Canada would encourage Burundi to reduce its transaction costs and improve 
infrastructures for energy and other commercial se rvices to make the country more attractive to 
foreign investors. Canada is concerned at the co rruption perception index for Burundi and encourages 
Burundi to spare no effort in that regard as this will help to improve its image in investors' eyes. 
60. While Canada has a well-establis hed trading relationship with Ke nya, constraints remain with 
respect to doing business in that country, notably poor infrastruct ure, challenges in finding local 
qualified labour and poor access to adequate credit and financing.  According to Export Development 
Canada, Kenya presents opportunities for Canadi an business in mining, power, construction, 
environmental applications, light manufacturing, IC T, agricultural equipment and transportation. In 
the light of this potential, Canada encourages th e government of Kenya to implement an effective 
legislative and regulatory framework that will ma ximize benefits and provide accountability to the 
public and to investors.  Kenya having recently expressed interest in join ing the WTO Information 
Technology Agreement, Canada invites Kenya and its EAC partners to do so, as it could strengthen 
the development of the region's ICT sector. 
61. Canada notes that while comprehensive ec onomic and business reforms in Rwanda have 
attracted foreign investment in the telecom, en ergy and financial sectors, economic development 
could be handicapped by energy s hortages and insufficient transportation infrastructure.  Canada 
encourages Rwanda to undergo further reforms and congratulates Rwanda for improving its "ease of 
doing business" ranking, rising from 158th in 2007 to 52th in 2013. 
62. While a positive record on governance, sustai ned economic growth, and macro-economic 
stability has attracted several Canadi an companies to Tanzania in the past 10 years, Tanzania still 
faces economic challenges. Canada is the largest investor in Tanzania's mining sector, with over 
US$2.3 billion in mining assets, and there is growing Canadian interest in off-shore gas.  
Nevertheless, Canadian investors have expressed concerns about prevailing impediments to doing 
business in the country.  In this context, we look forward to the recently concluded Canada-Tanzania 
Foreign Investment Promotion and Protection Agreem ent being enacted in both countries in the near 
future.  Such bilateral investment treaties ensu re greater protection against discriminatory and 
arbitrary practices, and enhance predictability for in vestors.  Complementing this, Canada encourages 
the government of Tanzania to undertake timely consu ltations with stakeholders prior to the tabling of 
its natural gas policy in parliament in April 2013.  
63. With recent oil discoveries expected to propel Ug anda to the forefront of oil production on the 
continent, Canada recommends that Uganda deve lop laws and policies for the oil industry in a 
transparent manner. Canada urges the government of Uganda to develop a solid private sector 
regulatory framework and improve its business environment by facilitating access to credit, improving 
its transport and energy infrastructure, as well as developing its human capital. 
64. In closing, Canada looks forward to today' s exercise as an opportunity for a constructive 
exchange of views on EAC's trade and economic polic y and clarification of certain trade measures.  
UNITED STATES 
65. The reports circulated for this meeting helped  us to understand recent developments in the 
EAC and highlighted reforms that are underway.  The reports also brought to light critical areas of improvement and noted some of th e challenges facing the five countri es as they strive to participate 
more effectively in the global trading system and to use trade as a means to stimulate greater 
economic growth and development.  
66.
 Since the last trade policy review of the EAC in  2006, the EAC has made substantial progress 
in a number of areas, including the admission of Buru ndi and Rwanda and the complete elimination of  WT/TPR/M/271 
 Page 13 
 
 
  intra-EAC tariffs.  However, both Burundi and Rwanda  appear to be breaching their tariff bindings on 
a significant number of 8-digit tariff lines.  The United States look forward to hearing how these Members intend to come into conformity  with WTO rules on this issue.   
67. This said, the EAC has made strides towards the establishment of an effective customs union 
and common market, although challenges remain with  implementation in the EAC Partner States.  
The EAC Partner States' commitment to regional econom ic integration and their efforts to break down 
trade barriers to regional trade are well placed.  On their own, each of the EAC Partner States 
constitutes a fairly small market for international trade and investment, but combined, they represent 
nearly 140 million people with a GDP of over US$80 billion. 
68. The United States stands with the EAC in suppor t of its regional economic integration, which 
we believe can be a model for how  other regional economic organiza tions in sub-Saharan Africa can 
advance their own integration processes.  We s upport the EAC's integration endeavors with the 
expectation that they advance and complement the multilateral trading system.  Accordingly, in 2008 
we entered into a Trade and Investment Framewor k Agreement with the EAC to raise the level and 
strength of our dialogue with the EAC on trade and ec onomic issues.  In June of this year, the United 
States and the EAC jointly announced that we woul d pursue a new trade and investment partnership, 
which will include the exploration of an investment  treaty, a trade facilitation agreement, continued 
trade capacity building assistance, and a commercia l dialogue.  These agreements and other activities 
will help to promote EAC regional integration, ec onomic growth, and expand and diversify U.S.-EAC 
trade and investment.  They could also serve as bui lding blocks towards a more comprehensive trade 
agreement over the long term. 
69. We have long provided financial support to the EAC Secretariat to continue its critical work 
of bringing the region's economies together, and re cently announced the extension of an assistance 
agreement to provide up to an additional US$10 mi llion to the EAC Secretariat over the next five 
years.  This assistance will focus on supporting the EAC towards achieving a more fully-fledged 
Customs Union and Common Market and address ha rmonization on issues related to agriculture, 
particularly the development of a regional CAADP  (Comprehensive Africa Agriculture Development 
Program) Compact, climate change, and natural resource management. 
70. The United States notes the progress that the governments of Burundi, Kenya, Rwanda, 
Tanzania, and Uganda have made towards regional ec onomic integration.  We particularly appreciate 
these efforts in the face of the region's limited financial resources.  We note, for example, the 
governments' implementation of reforms to im prove the business environment and to promote 
investment.  Both Burundi and Rwanda, for exampl e, have been highlighted as significant reformers 
in the World Banks' Doing Business Reports in r ecent years.  These measures have contributed to 
steady growth in the national economies over the p ast several years.  As the five governments 
undertake efforts to further improve the business environment in their countries, it will help them to take advantage of transformative potential of tr ade and investment.  We note each government's 
continued efforts to reduce macro economic imbalances, to  diversify and broade n their economies, and 
to create a more favorable investment environment for private sector development.  In our view, broad-based private sector participation in a comp etitive economy is another mechanism that fosters 
growth, so we are encouraged that the five Members plan to continue to modernize and to open their 
economies.   
71. While acknowledging these governments' advances, we also believe that much work remains 
to be done to foster a more open trading a nd economic environment that promotes greater 
competitiveness, export diversification and, perhap s most importantly, much-needed investment.  
Future success in these countries will depend on c ontinued improvement of the business climate, 
attacking corruption, buttressing judicial independe nce and capacity, and implementing and enforcing 
transparent rules and regulations in critical sectors of the economy.  We also encourage each country WT/TPR/M/271 
Page 14  
 
  to accelerate reform efforts and privatization progr ams to help improve the commercial environment 
and encourage investment in these countries.   
72. We encourage the five EAC Partner States to keep regional integration as a central focus 
moving forward.    
73. Most of the exports from the EAC to the United States enter the U.S. market duty-free either 
on a MFN or a preferential basis (i.e., through GSP or AGOA).  Since its launch in 2000, AGOA has 
provided opportunities for people and businesses in sub-Saharan Africa, including EAC countries, and 
contributed to the growth of African economies th rough expanded and diversified trade.  We are 
encouraged by AGOA's positive trends.  EAC exports to  the United States have increased to over half 
a billion dollars last year, including in value- added products such as apparel and processed 
agricultural goods.  Beyond market access, we know ther e is much more that we can do together with 
our African partners.  In recognition of these count ries' need for trade capacity building assistance to 
maximize the benefits of trade preference program s, diversify their economies, and improve their 
respective trade environments, the United States offers trade capacity building programs and trade-
related technical assistance through a range of U. S. government agencies including U.S. Agency for 
International Development (USAID), the U.S. Trad e and Development Agency, the Overseas Private 
Investment Corporation, the U.S. Department of Tr ansportation, and others.  In particular, the USG's 
East Africa Trade Hub in Nairobi, Kenya provides specialized support for businesses in the EAC, and 
helps EAC Partner States to take advantag e of trade opportunities provided under AGOA.   
74. As noted in the Secretariat Report, there are si gnificant obstacles and costs for traders in each 
of these countries as they go about their daily busin ess of moving goods to market and participating in 
the international trading system. We look forwar d to constructive engagement on trade facilitation 
issues, including in the WTO trade facilitation negot iations, to promote meas ures to reduce red tape 
and customs and cross-border inefficiencies, which can significantly impact each EAC Partner 
State's—and Africa's—regional and global trade competitiveness.   
75. We submitted questions for each of the Members under review in areas such as tariff binding, 
import licensing, customs procedures and valuation, intellectual property rights, and export subsidies 
and notifications.  We would also be interested in more fully understanding how the EAC develops 
regional standards to facilitate trade, and how EAC Partner States adopt and apply these regional 
standards.  We look forward to reviewing the responses.    
76. In closing, while we recognize the capacity co nstraints that may confront each government's 
participation in the multilateral trading system, we are also mindful of the critical, positive role that 
increased trade openness can play in their economies .  Making pro-trade domes tic reforms consistent 
with the WTO framework, combined with trade lib eralization efforts, is a proven strategy for 
garnering foreign investment and generating economic growth.  We look forward to continued work 
with all five EAC Partner States and the EAC Secret ariat, and we wish all five a successful review. 
PAKISTAN 
77. Regional integration has become EAC's framework  for growth as an overarching strategy for 
economic transformation, aiming at promoting intr aregional trade through policy coordination, and 
the development of shared physical infrastructure. The strategy also aims at generating economies of 
scale, industrial modernization, higher domestic a nd foreign investment, increased competitiveness, 
and greater intraregional trade. EAC countries have  taken steps towards mainstreaming trade into 
their national development strategies. Regional trad e flows have increased significantly since 2006, as 
have Intra-EAC investments whic h have also risen since 2006.   WT/TPR/M/271 
 Page 15 
 
 
  78. However, EAC faces considerable challenges of  integration and harmonization of policies, 
e.g. macroeconomic policies remain country speci fic. Multiple memberships of regional economic 
communities by individual EAC countries remain amo ng the main impediments to full harmonization. 
National export regimes are yet to be fully harmoni zed. Inefficiencies like la rge (untaxed) informal 
sector, ad hoc exemptions have led to significant reve nue forgone in the region. Agriculture is at the 
core of economic developments in the EAC, but it has a narrow export base, aggravated by excessive 
government regulation. 35 NTBs po se serious impediments to the full and smooth implementation of 
the EAC Customs Union include, and according to the Secretariat, in spite of the national monitoring 
committees, there has been very little progress in tackling NTBs. 
79. EAC countries have individually and collectively benefited from aid for trade. We join the 
Discussant in urging that they need more assist ance to address the bottlenecks hindering their efforts 
to make trade contribute significantly to their economic development. 
EUROPEAN UNION 
80. There has been considerable progress towards re gional integration since the last review in 
2006. The efforts towards an East African Customs Union, the signing of the protocol on the East 
African Common Market as well as the consultations  on fast tracking the process towards an East 
African Federation are all important  developments which show the fi rm determination of the East 
African leadership to construct a powerful and sust ainable East African economic and political bloc.  
81. The member countries of the region are quite di verse: for example, while Kenya represents 
40% of the region's GDP, Burundi's share is at 1.7%.  However, the economic structures of the EAC 
countries are not very dissimilar. A common elem ent the countries share is the importance of 
agriculture sector both for poverty alleviation and food security as well as for trade.  
82. The EU is a significant trade partner for the whole region, representi ng about €3 billion of 
EAC countries' imports (mainly oil products, medicines, machinery an d mechanical equipment, cars, 
aircrafts, electrical appliances etc.) and €2 billion of EAC countries exports (mainly agro-food 
products: coffee, tea, fresh cut flowers, fi sheries, tobacco, cocoa etc.) in 2010.  
83. More specifically, the EU is Kenya's largest trading partner, accounting for 15% of their 
imports in 2010 and 25% of their e xports. The EU is Tanzania's 3rd trading partner, after China and 
India, accounting for about 17% of Tanzania's tota l exports in 2010 and 12% of Tanzania's imports, 
hence representing about 13% of Tanzania's total tr ade. The EU is also the largest investor in 
Tanzania, in particular in the services industry. Fo r Uganda, the EU is the largest trading partner, 
accounting for over 18% of imports and 26% of its exports. The EU accounts about 19% of imports 
and 11% of exports of Rwanda, ma king us the second largest trading partner. Finally, for Burundi the 
EU is the largest trading partner accounting fo r over 22% of imports and 46% of exports.  
84. All the EAC countries are beneficiaries of th e EU GSP scheme. The Everything But Arms 
(EBA) scheme is not available to Kenya, which is not an LDC, but the four other countries benefit 
from this duty free quota free regime. 
85. The initialled European Partnership Agreemen t was agreed on 27 November 2007 when EAC 
separated from the Eastern and Southern Africa (E SA) EPA configuration of negotiations with the 
EU, which was the initial framework for the nego tiations. Since then, the parties have been 
negotiating a comprehensive agreement that, when fi nalised, would be an improvement compared to 
the Cotonou Agreement. For example, the agreemen t would extend the cumulation of origin at the 
regional level, which would consid erably enhance the region's trade opportunities. The EPA aims at 
creating a trade-for-development partnership that wo uld cover many more di mensions: from standards 
to other regulatory aspects that often are barriers to  market access and integration. The EPA would WT/TPR/M/271 
Page 16  
 
  also contribute to further regional integration of the countries concerned and to enhancing EAC's 
efforts of integrating itself as a customs union within a wider region as the EAC is engaged in tripartite negotiations with SADC and COMESA. The EPA aims at strengthening the EU-EAC well 
established relationship towards a br oader partnership that promotes and facilitates trade, investment 
and cooperation.      
86. Regarding Aid for Trade, Eastern Africa has b een the region that has received the wider share 
of EU Aid for Trade (more than 1.4 billion eu ros cumulated over 2009 and 2010). Under the 10
th 
European Development Fund, the 5 countries were  allocated about 2 billion euros in total.  
87. There are still a number of steps to be acco mplished so that the common EAC market can be 
reached not too far away in the future, which is a very crucial objective for the countries reviewed 
today. The EU is firmly committed to providing all its support towards this ambitious objective.  
88. In this context and as also raised in its adva nce written questions, the EU would appreciate the 
views of the EAC Members on the issue of the se quencing and articulation between the tripartite 
agreement initiated in 2005, the bilateral agreements  that exist between certain EAC members and the 
consolidation of the EAC regional integration.  
89. The EU is well aware of a number of barriers to trade that originate from infrastructure 
weaknesses which are not to be underestimated. The EU would like to stress the importance of efforts 
contributing to removing non-tariff barriers that prev ent the countries from seizing all the benefits of 
regionalisation and developing all their potential. 
90. The EU sincerely hopes that this Trade Po licy Review will bring useful inputs for the 
countries of the EAC and will contribute to the im plementation of the EAC development strategy, 
notably as this review meeting so timely takes pl ace just before the EAC Summit to be held on 
30 November in Nairobi. 
JAPAN 
91. Japan would like to begin with the issues on the EAC. Here, we have three points, including 
the Common External Tariff (CET), frameworks within  the EAC, and One Stop Border Post (OSBP). 
92. First, Kenya, Tanzania, and Uganda launche d the CET in 2005, and Burundi and Rwanda 
began implementing the CET in 2009. All of these countries have been promoting economic 
integration in the region. Japan highly commends the EAC's activities for trade liberalization, and 
requests prompt notification to the WTO on the enlargement of the CET. 
93. Second, the programme for gradual eliminati on of internal tariffs was completed in 
January 2010. However, due to differences on each  EAC member's framework , there are still some 
challenges in harmonizing them. Different customs sy stems continue to be used between Kenya and 
other EAC members, and this creates some difficulti es in attaining a smooth exchange of information. 
On one hand, pre-shipment inspection is not requi red by Uganda and Rwanda ; and on the other hand, 
it is required by Burundi, Kenya a nd Tanzania respectively for differe nt products. In addition, it is 
reported that the limit of maximum weight which a long-distance vehicle can car ry on the major roads 
connecting the region is determined by different  methods among EAC members. Last year, the EAC 
introduced a uniform limit of maximum weight, but transporters still comply with different rules. Japan hopes EAC members will c ontinue their efforts to harmonize their frameworks 
94. Third, we commend that the EAC is currently assisting its members in developing OSBP 
infrastructures aiming at improving customs proce dures. Japan has been supporting the development  WT/TPR/M/271 
 Page 17 
 
 
  of OSBP within the framework of the Tokyo International Conference on African Development 
(TICAD), and continues to contribute to activities for integration within Africa. 
95. Now let me move to policies of individual EAC members.  
96. First, the government of Burundi adopted the vision "Burundi 2025" in 2011, aiming at 
economic growth including poverty reduction. Th e authorities intend to achieve accelerated 
double-digit economic growth under the vision. Bu rundi also plans to modernize the sector of 
agriculture which accounts for 43% of GDP and 90% of workforce, and addresses the improvement of 
business climate, for example, the development of infrastructure and frameworks in sectors of 
tourism, manufacturing, and mining etc. which ar e expected to see growth. Japan hopes for Burundi's 
successful reform under the vision. 
97. In Kenya, agriculture accounts for more than  20% of the GDP and 50% of export earnings, 
thus the promotion of agriculture is quite sign ificant. It is necessary to develop irrigation 
infrastructure and create products which are resistan t to aridity, since a large portion of the land in 
Kenya is arid or semi-arid. In terms of these cha llenges, Kenya is addressing the improvement of the 
utilization of land and reduction of the cost of  fertilizer through the Agricultural Development 
Strategy (ASDS) and VISION 2030. Japan comme nds these activities and encourages Kenya to 
continue making such efforts. 
98. Rwanda set out its Vision 2020, which contains  Rwanda's long-term development goals and 
aims to transform Rwanda from an agriculture-b ased economy to a knowledge-based, service-oriented 
economy by 2020. Rwanda also launched th e Economic Development and Poverty Reduction 
Strategy (EDPRS) in 2007 and considers manufactur ing and services, etc. as the priority areas to 
promote its industry. Japan hopes that Rwanda w ill continue to address the accomplishment of these 
strategies. 
99. The government of Tanzania and G8 members he ld related meetings on the New Alliance for 
Food Security and Nutrition, aiming at Tanzania's agricultural reform. They created a roadmap to 
achieve the improvement of land po licies, tax reform, and abolishmen t of export prohibition policies, 
etc. These reforms enable foreign enterprises to pr omote their business in the sector of agriculture, 
and Japan hopes to see Tanzania's c ontinued efforts to develop these reforms. In addition, Japan also 
hopes to see improvement regarding the situation in  which inferior manganese batteries are being 
smuggled into Tanzania, affecting its market. 
100. According to the report by the Secretariat, Ug anda's strengths include  its tourism industry, 
which is one of its largest foreign exchange earne rs. The number of tourists has doubled in the five 
years from 2006 to 2010. Uganda is actively addr essing the promotion of tourism by establishing a 
ministry of tourism and reforming legislati on on accomodations and tourism agencies. Japan 
commends these activities and hopes that Uganda continues them. 
101. In conclusion, Japan would like once more  to commend the EAC for addressing their 
challenges and making efforts to reform their fra meworks. I wish the EAC a very successful TPR. 
BRAZIL 
102. Strengthening cooperation with African countries has long been a foreign policy priority for 
Brazil, one that was reinforced over the past fe w years and is being pursued by President Dilma 
Rousseff. 
103. Brazil has now 37 embassies in countries in A frica and is honoured to host 33 Embassies 
from African countries in Brasilia. WT/TPR/M/271 
Page 18  
 
  104. Since 2006, at the initiative of Brazil, an in stitutional framework has been established for 
cooperation between South America and African c ountries that includes summit meetings, thematic 
working groups and cooperation projects. The Afri ca-South America Summit Meetings have been 
taking place regularly ever since, gathering 65 countries as well as the Union of South American 
Nations and the African Union. President Dilm a Rousseff is scheduled to attend the upcoming 
Assembly of Heads of State and Government  of the African Union, in July 2013. 
105. Trade flows between Brazil and the African C ontinent have jumped from US$4.3 billion in 
2002 to US$27.6 billion in 2011. 
106. The same pattern of marked growth applies to trade relations with the Member-States of the 
EAC: since 2006, bilateral trade has expanded more than fourfold. Nonetheless, the trade balance has 
been asymmetrical, as Brazil has been pos ting a sizeable surplus with all them. 
107. One cannot fail, in reading the reports by Members under review, to praise them for the 
significant progress achieved in modernizing and reform ing their economies. It is also gratifying to 
see that efforts to fight poverty and improve the living conditions of their populations are bearing 
fruit. 
108. Each of them has adopted a long-term plan, a "vision" of the society they want to build. 
109. This is all the more important when one bears in mind that, with the exception of Kenya, all 
of them are LDCs. 
110. Brazil shares with the EAC countries this "visi on" that is based essentially on economic and 
social development, inclusiveness and better standards of living for the poor. 
111. The WTO and the multilateral trading system cannot afford to abstain from effectively 
contributing to the materialization of this "visi on". The Doha Development Agenda was meant from 
the beginning to place trade issues of interest to  developing countries as a priority within this 
Organization. This goal is yet to materialize. 
112. Brazil, as Member of MERCOSUL, believes that  regional integration, particularly among 
developing countries, is an important driver fo r economic growth. That is why we commend efforts 
by the EAC Member States to pursue their shared goal of establishing a Common Market and Monetary Union. 
113. Brazil is fully engaged in making trade a mean s to boost development, especially for the 
benefit of the most vulnerable countries, w ithin and in parallel to the DDA negotiations. 
114. It is taking steps to implement the commitment laid out in the Hong Kong Declaration, so that 
products originating from LDCs are grante d duty-free access to the Brazilian market. 
115. Likewise, the Brazilian government, the FAO a nd the Brazilian Cotton Institute have just 
signed a cooperation project to provide technical assistance to cotton growers, especially small 
farmers, in developing countries. 
116. Brazil is currently conducting 34 technical cooperation projects in agriculture with 
17 Sub-Saharan African countries. Some 97 projects in agriculture have already been successfully 
completed by the Brazilian Cooperation Agency in the sub-continent. 
117. We hope that the project on cotton and the duty-free quota free mechanism, among other 
initiatives, may contribute towards increasing and diversifying the EAC exports to our market.  WT/TPR/M/271 
 Page 19 
 
 
  Moreover, there is room to expand bilateral trade not only in goods but also in services, in sector such 
as infrastructure, mining and oil. 
118. Brazil has forged very close ties with Africa and seeks to enhance them. Our commitment to 
that region involves the work of several players, working together or independently: government 
agencies, private and state-owned companies and the society at large. 
INDIA 
119. India and the EAC share a close working relationship. We entered into an MOU on economic 
cooperation in April 2003, followed by a joint communiqué in 2007 spelling out a programme of 
India-EAC cooperation. The Secretary Generals of  the EAC visited India in 2010 and 2011. Several 
areas have been identified for cooperation includ ing railways, e-network, energy, agriculture, 
technical assistance and capacity building and t ourism. India has offered assistance in setting up 
4 regional institutions in the EAC, including an  agricultural seed production-cum-demonstration 
centre in Rwanda, a material testing laboratory in Kenya, a farm science centre in Burundi and a soil, 
water and tissue laboratory in Tanzania. 
120. India enjoys close and friendly ties with each of  the 5 EAC countries, reflected in our growing 
bilateral trade with all of them. Our total trade with the EAC in 2011-12 amounted to US$4.77 billion, 
including US$2.4 billion trade with Kenya, US$1. 85 billion with Tanzania, US$454.5 million with 
Uganda, US$48.43 million with Rwanda and US$25 m illion with Burundi. A large part of this 
comprises exports of pharmaceuticals, machinery and equipment, vehicles, yarn, etc.  
121. Regular exchange of visits at the highest level and business level interactions have 
significantly helped in promoting trade and economic cooperation between India and the EAC 
members. The large Indian Diaspora in Kenya, Uganda, Tanzania and Rwanda has contributed 
actively to the economies of the EAC countries. Seve ral reputed Indian companies have invested in 
the EAC countries and set up business operations, making India one of the larger investors in the region.  
122. India values its partnership with the EAC c ountries and has extended development assistance 
in the form of concessional lines of credit for project implementation in the areas of power 
transmission and transportation. India is also ex tending technical assistance for capacity building in 
the form of training programmes in diverse fields. Our duty free tariff preference scheme for LDCs is 
available to 4 of the EAC members. India is also implementing the Pan African E-Network Project to provide telemedicine and tele-education ser vices via satellite to the EAC countries.  
123. India appreciates the EAC's sincere commitment towards building a prosperous, competitive, 
secure and stable East Africa through the establishm ent of a Customs Union and a Common Market. 
We believe that the EAC provides a valuable platform for widening and deepening regional 
cooperation among its members for their mutual bene fit. In this context, we welcome the 2011-2016 
Development Strategy of the EAC that sets out speci fic priorities for consolidating the customs union, 
implementing the common market and increasing th e productive capacity and competitiveness of the 
EAC members.  
124. India applauds the EAC members for their shar ed vision and long term  national development 
plans aimed at achieving higher growth rates a nd transforming their economies to higher income 
levels through infrastructure development, agricu ltural transformation, industrial growth, human 
resource development and reforms in the legal and institutional framework. The "Burundi 2025" 
vision, the "Kenya Vision 2030", Rwanda's "Visio n 2020" seeking to transform the country from a 
low income agricultural economy to a knowledge based service oriented economy, Tanzania's 
"Development Vision 2025" and Uganda's "National Development Plan 2010", are all a manifestation WT/TPR/M/271 
Page 20  
 
  of the common aspirations of the EAC members to see East Africa as a progressive and prosperous 
region.  
125. The EAC countries have performed remarkably  well during the period under review, growing 
at an average annual rate of over 6% despite the gl obal financial crisis and the huge challenges they 
face in terms of food security, poverty alleviatio n, low agricultural productivity, slow industrial 
growth, narrow export base and double digit inflation rates due to a surge in oil and food prices.  
126. We are happy to note that the average Common External Tariff (CET) applied by the EAC 
since 2005 has decreased from 12.9% to 12.7% since the last review. However, implementation of the 
CET and harmonization of customs procedures remain  a challenge given the multiple memberships of 
the EAC countries in various regional economic communities. We hope that the EAC-COMESA-
SADC Tripartite Negotiations will be able to resolv e some of the challenges arising from overlapping 
membership through harmonized regimes for the 3 RECs.   
127. Commendable progress is underway in other are as, including the setting up of notification 
authorities and inquiry points under the SPS a nd TBT agreements, harmonization of voluntary 
standards, implementation of new procurement laws, adoption of a regional IPR protocol and policy 
on utilizing WTO TRIPS flexibilities in public health  to facilitate manufacturing and imports of 
essential medicines, strengthening of national invest ment policies, establishing investment promotion 
authorities and improvements in the administrative,  regulatory and legal frameworks to create an 
investor friendly environment.  
128. Thanks to regional integration efforts, intr a-EAC trade has grown significantly between 2006 
and 2010 from US$1.6 billion to US$3.8 billion. Internal  tariffs have been gradually eliminated and 
there are no internal tariffs on intra-EAC trade. However, poor infrastructure and high costs are 
limiting factors.  
129. Aid for trade can play an important supporting role in addressing structural bottlenecks and 
supply side constraints. Though there has been an increase in donor commitments on aid for trade, the 
EAC countries have identified several areas where th ey need assistance. We hope that this exercise 
will be useful in mobilizing further resources to meet their needs.  
130. We share the EAC's concern over the current im passe in the DDA negotiations and agree with 
the need for a development oriented outcome of  the DDA that would support economic growth and 
provide necessary policy space to developing countries and LDCs to pursue appropriate national policies for fostering economic development and welfare. We also support the EAC's position on 
providing greater opportunities in services through m ovement of natural pe rsons, strengthening S&D 
provisions and provision of meaningful technical assistance to enable developing countries and LDCs 
to participate fully and effectively in the negotiations. 
TURKEY 
131. Turkey would like to start by commending the EAC for its enlargement by opening its doors 
to Rwanda and Burundi in 2007. We have also noted with satisfaction that the EAC has been 
successfully pursuing its medium term strategi es of deepening their integration through the 
establishment of a single market. We hope that d espite challenges, the EAC will continue taking 
actions to achieve the objectives set  forth for the common market.  
132. Regional integration, and accordingly, increas e in regional trade, has been contributing 
substantively to the economic development as the  average economic growth ra te of 7% was achieved 
in the EAC partners over the review period. This proves that the EAC is in the right direction.  WT/TPR/M/271 
 Page 21 
 
 
  Nevertheless, there is still need to sustain the gr owth and diversify the economic structures. In this 
respect, improving the business climate with a view to attracting foreign investments could be the key.  
133. While the EAC members have considerable policy space in their trade regimes, generally they 
have open trade regime with simple and liberal av erage applied rates. We also noted the slight 
decrease in average tariffs.  
134. In this respect, we encourage the EAC to maintain focus on removing non-tariff barriers 
among the EAC members. These efforts coincide with the activities at the global level, and in this 
respect, conclusion of the trade facilitation negotiatio ns in the WTO could help the EAC to carry out 
trade and customs reforms more smoothly. We al so share the assessment of the EAC that the 
harmonization of customs procedures and documentati on requirements is a priority and we hope that 
it will be completed soon.  
135. Our bilateral trade relations with the EAC have  been recovering from the negative impact of 
the economic crisis, and this year, our trade volume is  expected to reach to its pre-crisis levels.  
136. While Kenya is our biggest trade partner in the EAC, at present, we are also aiming to further 
improve relations with other EAC members. Ther efore, we are exploring at various means like 
conclusion of bilateral agreements in different fiel ds as well as the establishment of the institutional 
structures like business councils. We are also looki ng at increasing trade and project finance as 
possible instruments.  
CHINA 
137. China is glad to note that, the economy of EAC countries has generally recorded an annual 
growth rate of around 7% duri ng the period under review. We are also glad to witness a steady 
increase of the share of trade in goods and servi ces in the GDP of EAC countries during the same 
period. This growth is mainly attributed to rema rkable growth of the intra-EAC trade, supported by 
domestic reforms in various sectors.  
138. In spite of those achievements, as stated in th e Secretariat report, the EAC countries are still 
facing some development challenges in both macro- level and micro-level, including supply-side 
restraints, fiscal deficits, over-dependence on agri culture, lower level of industrial development, not-
yet-harmonized trade regime, etc. China encourages  the EAC countries to further their effort on 
domestic reform with a view to creating a more  business-friendly environment and more dynamic 
economic regime. That being said, China is also of  the view that continuous efforts only from the 
EAC countries will not suffice for overcoming those difficulties; the global community ought to play 
an even greater role in helping the EAC countries solve those problems.  
139. Furthermore, China also notes that the integra tion step of the EAC has slowed down due to 
challenges in the implementation of customs union and common market. China expects the EAC 
countries to maintain its integration efforts and c ontinue their journey toward the monetary union and 
eventually the political federation. 
140. China takes note that the EAC countries are firm  supporters to the multilateral trading system, 
and they actively participate in the Doha negotiati ons by aligning their positions with the African 
Group and the LDCs. China fully shares their wide interests in the negotiations and endorses their 
legitimate requests in this round. China looks forw ard to working in good faith with all Members, 
including EAC countries, towards an early harv est and subsequently a successful multilateral 
conclusion of the Doha round. It is our belief that this will work for the benefits of all countries, 
particularly the LDCs including the EAC countries. WT/TPR/M/271 
Page 22  
 
  141. Now let me briefly touch upon our bilateral economic relations. China always enjoys a 
friendly cooperation with EAC countries. China's bilateral trade with EAC countries have doubled 
during 2008-2011, and the latest data from China s hows that it has registered another 20.6% year-on-
year increase during the first nine months of 2012. In  addition to that, China has also accelerated its 
overseas investment in EAC countries. By the end of 2011, China's accumulated investment to the 
EAC countries amounted to US$910 million. China will continue to encourage our enterprises to 
further invest in EAC countries and assist their development. 
NIGERIA 
142. Nigeria is happy to note from the Secretariat report that East African Community (EAC) has 
been able to achieve a reasonable and successful leve l of progress, despite the impact of both external 
and internal obstacles that undermined their ec onomic performance in 2008 and 2009 respectively. 
Although, the Secretariat report pointed out that sin ce the previous reviews and the joining of Burundi 
and Rwanda to the Community, the economic performan ces of the five countries differs in terms of 
their level of development, economic structure, and social indicators. We also note from the same report that Kenya being the only developing country, has the largest economy with a nominal GDP of 
US$32 billion in 2010 around 40% of the regions tota l, while Burundi came last with a nominal GDP 
of about US$1.4 billion that is representing 1.7% nominal GDP. Even though, their human 
development indicators remain similar within the community, and are among lowest in the World.   
143. Nigeria wishes to commend EAC on their reforms e fforts since their last trade policy reviews 
in 2006. Nigeria is impressed by the five c ountries determination to promote economic reforms 
through policy instruments and their progress in trad e liberalization, particularly efforts towards 
reducing poverty among their citizens . We hope that these policies would uplift the living standards of 
their people.   
144. As pointed out in the Secretariat Report about 80% of EAC population are living in the rural 
areas and depends on Agriculture for their livelihoo d. However, the EAC countries remained highly 
vulnerable to external and internal shocks, and faced  the continued challenges of wide spread poverty, 
capacity constraints for agriculture that include: l ack of access to appropriate technologies, high costs 
of inputs, frequent drought, pests and diseases, and market instabilities. In addition the countries 
suffers from high cost of credit, inadequate exte nsion services, inadequate funding for research, low 
levels of transfer of technology, low productivity an d inadequate marketing systems, and lack of rural 
infrastructures. My delegation would like to ca ll on EAC development partners to assist through 
increased technical assistance to enable th em address the challenges facing them.  
145. Burundi main tourist attractions are its cultu ral heritage and its nature reserves. As 
highlighted in the Secretariat Report, the sector has not escaped the effects of the socio-political 
instability, issue of security, and most of the tour ist attractions remain undeveloped. We also note 
from the same report the effort the Government of Burundi is making to develop the sector, as 
evidenced by the budget appropriation in 2010 for the rehabilitation of tourist sites and by the 
finalization of the National Strategy Paper on th e sustainable development of tourism for the 
2011-2020. It would be interesting to hear any info rmation that Burundi might share with members on 
how this important goal could be achieved.   
146. Kenya has embarked on a wide range of trade facilitation reforms, geared towards improving 
its global competitiveness. In 2005 Kenya Revenue Authority brought into operation the Simba 
electronic system to process customs declarations. Th e mean clearance time that is time difference 
between arrival and release of imported goods impr oved from 10 days in 2007 to 8 days and nine 
hours in 2011. However, the customs clearance sy stem in Kenya does not provide for information 
exchange among all border control agencies, and is c ontinues to pose challenges to the timely release 
of imported goods. To that end, Nigeria encourages Kenya in particular and EAC in general to allow  WT/TPR/M/271 
 Page 23 
 
 
  flow of communication among its border control agenci es in order to further simplify its clearance of 
goods.   
147. It was noted in the Secretariat Report that  the Manufacturing sector remains small in 
Rwanda's economy. We note the industrial policy was issued in April 2011 and the proposed facilitation of development of manufacturing sector by increasing government investment in energy, 
so as to lower costs that include electricity tariffs, allocating land for manufacturing industries, and 
improving roads. These efforts are positive and could lead to a robust and vibrant manufacturing sector. 
148. Tanzania's second National Strategy for Gr owth and Reduction of Poverty 2010/2011- 
2014/2015, which was launched at the beginning of 2012, provides a framework for achieving the 
Millennium Development Goals (MDG's) and Tanzan ia's Development vision 2015, focussing on 
productivity and growth, and agricultural and private sector development. We also note from paragraph 7 of the Secretariat report that Tanzan ia as a highly foreign aid dependent, is currently 
implementing a three-year macro-economic progr amme under IMF's Policy Support Investment, 
approved in June 2010, whose main objectives are to maintain a strong fiscal position, low inflation, 
and low risk of debt distress, while accelerating growth in line with the NSGRP. Tanzania also 
receives support under several World Bank projects, including the Poverty Reduction Support Credit 
Programme designed to improve the investment cl imate and competitiveness, and to ensure macro-
economic stability and sound public finances. Can Tanzania share some information on how these 
important policies could be achieved?  
149. We wish to commend the policies adopted by Ugan da since its last trade policy review, that 
include improving performance in the mining sector through a comprehensive Mineral Sector Reform 
Programme. We therefore hope that the policies woul d be pursued in order to address the challenges 
facing the mining sector.   
150. Finally, the modest level of implementation by EAC of their WTO commitments must be 
commended in using trade to ensure welfare gain s for their people. The delegations of Burundi, 
Kenya, Rwanda, Tanzania and Uga nda have been active members of the WTO and have contributed 
to the Doha work programme. Nigeria looks toward s further collaboration with EAC delegations in 
the WTO activities and in African Group. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
151. Regarding the general situation of Burundi, it is good to note that after its decade-long socio-
political crisis, the Government has been able to tu rn its attention to the key development areas of 
infrastructure and the legal and regulatory frame work.  Programmes such as the "Burundi Vision 
2025", the "Growth and Poverty Strategy Paper" a nd the "Agriculture Strategy" are under way, aimed 
at improving the economic and social environm ent from 2008 to 2018, achieving sustained economic 
growth and job promotion, combating povert y, and making progress towards realizing the 
"Millennium Development Goals". We sincerely hope th at all these very worthy efforts will lead to 
economic recovery, and help it to reach its targ et of 6.9% average a nnual growth by 2015. 
152. In the case of Kenya, we are pleased to learn that implementation of the Government's broad, 
over-arching, long-term devel opment plan, "Kenya Vision 2030", aimed at socio-economic 
transformation, has already led to significant new i nvestment in infrastructure and reforms in several 
sectors. The first medium-term plan covering th e period 2008-2012 has seen annual growth in the 
economy rise from 6.1% to 10%. Kenya is also currently running two investment schemes, "Export 
Processing Zones" and "Manufacturing under Bond", promoting foreign investment and export growth, in which we had reportedly invested a to tal of nearly US$60 million by 2011. We hope all WT/TPR/M/271 
Page 24  
 
  these plans will strengthen Kenya's position as a majo r commercial centre in Ea st Africa, and enable 
its economy soon to reach its goal of a su stainable annual growth rate of 10%. 
153. As we see from the report by the Government  of Rwanda, following impressive economic 
growth and social improvement since the last trad e policy review in 2004, both its "Vision 2020" 
document and the "Economic Development and Povert y Reduction Strategy", ha ve been re-launched 
with more ambitious targets designed to accelerat e economic growth and re duce poverty further over 
the next 8 years. It does seem, however, that improvement is required particularly in areas such as 
customs, trade facilitation, SPS and TBT, as well as in the general business environment if economic 
growth is to be sustained at the new target of 11.5%. 
154. Regarding the general situation of Tanzania, we are again pleased to note that its economy 
has enjoyed annual growth of 6.8% over the last  6 years (2006-11). The Government has recently 
adopted the "Tanzania Development Vision 2025", aimed at transforming Tanzania into a middle-
income country by 2025. We agree with its prio rity plans for improving transport infrastructures, 
transforming agriculture, establishing special econom ic zones and developing  the financial services 
sector. 
155. Moving on to the economy of Uganda, it is good to see that real GDP growth averaged 7.7% 
annually from 2005 to 2010. We certainly welcome the Government's new "National Development 
Plan" and its theme of "Growth, Employment and Social Economic Transformation for Prosperity". 
At the same time, the Secretariat in its Report does hi ghlight certain areas for priority attention, such 
as broadening the tax base, boosting public infrastructur es in the energy and transport, and improving 
tax administration in the future. 
156. As far our own trading relationship with these fi ve countries is concerned, the value of our 
two-way trade with Burundi in 2011 was just 340 thousand US dollars, with Kenya it was 
160 million, with Rwanda 510 million, with Tanzania  39.8 million, and with Uganda some 5.8 million 
US dollars.  In fact, we are actively promoting trad e relations in the region, and certainly the potential 
exists for greater economic co-operation in the fu ture, which we hope to achieve through continued 
dialogue, both bilateral and multilateral. 
157. At the multilateral level, we would encourage all these countries to make good use of the 
WTO's trade-related capacity-building and technica l assistance, and they should be provided with 
more "Aid for Trade" resources. These can direct ly help to change the trading environment and 
actually raise people's living standards. 
ARGENTINA 
158. The reports presented today throw the significant challenges that this region of Africa still 
faces into sharp relief. Although Argentina welcomes the fact that great progress has been made over 
the last six years with increased integration within  the framework of the EAC, and the extension of 
membership during the period under review to two new members (Burundi and Rwanda), and to other regional groups on the continent, much remains to  be done in the development of these countries. 
159. Serious infrastructure problems, undiversified econo mies, an extensive informal sector (which 
is untaxed, leading to low fiscal revenue), low levels  of mechanization in farming where investment is 
needed are some of the principal obstacles facing these economies. 
160. Aid for trade has played a crucial role in overcoming these difficulties and in improving the 
competitiveness of these countries, and will undoubtedly continue to do so in the future, but that will not be enough. The region needs to attract greater  investment, especially in the private sector, more 
business and greater trade.  WT/TPR/M/271 
 Page 25 
 
 
  161. To that end, Argentina supports the work under way towards better and more extensive 
integration within the framework of the EAC, beginning with full harmonization of the national 
arrangements in matters of customs, fiscal affair s, sanitary and phytosanita ry measures, technical 
regulations and investment. Overlapping membership  complicates Rwanda's trade policy through a 
web of inter related regional trade commitments w ith differing rules and ambitions. We also support 
the tripartite negotiations under way between the EAC, COMESA (Common Market for Eastern and 
Southern Africa) and SADC (Southern African Development Community), with a view to preventing 
or resolving the overlap or multi layering of various rules of origin or mechan isms to liberalize intra 
regional trade that hinder greater trade and investment in the region. 
162. We also welcome the various reforms and deve lopment programmes that each of these five 
countries individually has set about implementing in recent years, most with ambitious goals such as 
achieving middle income country status in the medium term; and we also welcome the fact that some 
of these countries (such as Burundi) have reached the completion point under the Heavily Indebted 
Poor Countries (HIPC) Initiative, which means they have significantly reduced their debts. 
163. In view of this the Secretariat stated in its  report that the economic outlook for the region is 
positive and that it expects the outcome of all these reforms and greater integration to be a reduction 
in the cost of doing business and an improvement  in the productivity of individual EAC economies. 
164. Agriculture, as an overwhelmingly crucial sector  in the welfare of these countries and their 
peoples, merits a special mention: many of these re forms and the hope of a better future are dependent 
upon it. 
165. As stated in these reports, both that of the S ecretariat and that of the five EAC countries, 
agriculture is the region's chief economic ac tivity, its backbone, and provides the means of 
subsistence to approximately 80% of the population; strong performance in this sector is essential to 
poverty reduction and economic growth. 
166. In view of this, the objective of many of the reform programmes under way is to provide the 
sector with greater technology and training, better infrastructure in the aim of moving away from 
agriculture, in other words towards m odern, market oriented agriculture. 
167. Argentina supports all these efforts and initiatives,  and the key to their success lies not only in 
these five countries but in all of us. To what avail is  all this investment and development if afterwards 
they are unable subsequently go out onto the inte rnational market and compete on an equal footing 
with other countries that subsidize or provide extensive protection to their agricultural sector? 
168. Trade policies such as production/export subsidies and import barriers (including 
scientifically unfounded sanitary, phytosanitary and tec hnical measures, and high tariffs) have in fact 
been the main disincentives to ag ricultural investment and development in vast areas, inhibiting 
development and condemning the most vulnera ble populations to poverty and hunger. 
169. It is no accident that in these reports Burundi , Rwanda, Uganda, Tanzania and Kenya come 
out firmly in favour of a prompt conclusion to  the Doha Round, the Development Round, which 
reduces the trade distortions due to domestic s upport and subsidies, and creates a more conducive 
environment for agriculture potential. 
170. A successful conclusion to the Doha Round, in line with its current mandate, will mean that 
all the efforts and investment being brought about by  these countries in this area will not be in vain 
and their objective of becoming middle income countries will finally become a reality. WT/TPR/M/271 
Page 26  
 
  171. In conclusion, in reiterating our appreciation of  this opportunity to exchange information and 
ideas concerning the trade policy of this important re gion of Africa, allow us to stress once more the 
importance of this exercise in transparency from ever y point of view and to wish the authorities of the 
countries participating here every success in the second trade policy review of the EAC. 
KINGDOM OF LESOTHO ON BEHALF OF AFRICAN GROUP  
 
172. Allow me to turn to the substantive part of this intervention by focusing on limited yet general 
themes as drawn from the reports cited above. The prism from which the African Group considered 
the reports before this meeting has been summed up in two basic questions which are as follow:  
173. 1) What has changed since the last EAC Trad e Policy Review? and 2) What can we draw 
from this Trade Policy Review? 
174. In consideration of the first question, the African Group took note of the phenomenal trade 
policy transformations of which the reports before us  tell the whole story. As an example, it has been 
deduced from the reports that: 
1. As a result of the implementation of the integr ation agenda of the EAC, the value of intra-
EAC trade increased steadily between 2006 and 2010 with about 57% increase from 
US$38.8 billion. Worthy of mention is the impressive improvement of EAC's share in total 
trade improved from 7.8% to 11.4% within the same period. This was resultant of diversion 
of trade towards the regional bloc; 
 
2. The total intra-EAC investments surged from some US$83 million in 2007 to over 
US$530 million in 2008, which is about 16% increase while since the last Review, the Common External Tariff average rate decreased from 12.9% to 12.7%; 
 
3. The EAC introduced a new innovation in regional integration in Africa by adopting a 
Regional IP Protocol and Policy on the utilization of Public Health-Related WTO-TRIPS 
flexibilities in 2011. Clearly this will go a long way in meeting the public policy objectives as they relate to manufacturing and importation of medicines to meet public health related 
objectives; 
 
4. Lastly, with services sector accounting for above 40% of EAC members' economies, the 
pre-eminence of this sector as key force driving the overall economic performance and 
efficiency of the EAC Member Countries cannot  go unnoticed. In this regard, the African 
Group welcomes the concerted efforts by th e EAC towards enhancing intra-EAC trade 
performance particularly through investi ng and improving infrastructural services. 
Investments mainly in physical in frastructure such as roads, rail and energy all attest to the 
pre-eminence of the services sector as key fo rce behind EAC's economic performance and 
efficiency. 
 175. With these three key points, it is crystal clear that EAC economic growth prospects have been 
positive. 
176. Turning to the second question on what can we draw from this EAC TPR, one theme that 
predominantly resonates throughout the reports is that "Regional Integration is key to economic 
growth of African Countries". While EAC is not immune from global economic challenges and 
shocks such as the slumping of the economic activity due to the recent food and energy crisis and the 
2008's financial and economic crises, this review provides a solid  confirmation of the conviction and 
decision of the AU summit earlier this year, that re gional integration is key to boosting intra-Africa 
trade. With the SADC, EAC and COMESA tripartite  negotiations underway, this review is a true  WT/TPR/M/271 
 Page 27 
 
 
  litmus test that has provided the WTO members with a snap shot of the positive impact regional 
integration can have on economic performance of countries. 
177. The EAC faces challenges that can only be overcome through support and partnership with 
the development partners. The African Group welcomes efforts by some development partners in this 
direction and encourages them to further deepen their support to and partnership with EAC Member 
Countries. This support and partnership will go a long way in addressing impending needs such as 
supply side constraints, value addition to dom estic production and divers ifying the export base, 
undertaking sectoral reforms, supporting the inte gration programs and attendant institutions. 
178. The need for support and partnership in orde r to address this non-exhaustive list of needs 
cannot be overemphasised. It is in this context that the African Group appeals to the development 
partners to replenish the WTO's trust fund given it s importance in respect of meeting some of the 
needs just mentioned. By the same token, bu ilding on the successes of the EIF and strengthening in 
further should be the prime objectives of the post the EIF mid-term review. The same is true for the 
ITC which must focus on countries in most need. 
MOROCCO 
 
179. As an African country it gives the delegation of the Kingdom of Morocco enormous pleasure 
to participate today in this second trade policy revi ew of the East African Community which, I am 
sure, will be an opportunity to make the Members of our Organization aware of the progress made by 
this group of countries, our friends and br others in the multilateral trading system. 
180. The Kingdom of Morocco commends  the success achieved in economic integration in this 
subregion of Africa. Although a previous unsuccessful attempt at a common organization was made in the past (from 1967 to 1977), the true success of the East African Community is a recent 
phenomenon, dating from 2010 with the effective esta blishment of a common market where there is 
free movement of goods, labour and capital throughout th e territory. The market is the first of its kind 
in Africa and there is no doubt that its progress will be closely followed. 
181. Three years on, one thing is clear: the effects of free movement are already making 
themselves felt and the consequences are generally  positive. Even for members whose individual 
characteristics might suggest that the challenge was difficult to tackle (scarcity of land, landlocked 
situation, relative economic weakness). Rwanda is the best example of this. 
182. A number of recent trends suggest that th e economic environment of the East African 
Community is moving towards successful integration (as stated in the "Doing  Business in the East 
African Community" and the World Bank reports). At sub regional level, there has been significant growth in cross border trade in goods and services everywhere (up to 50% in some cases) and this 
tendency to growth is still only in its initial stages. 
183. Morocco applauds and encourages the East Afri can Community in its success, a success that 
is likely to have a galvanizing effect on the other African regional organizations whose results hitherto 
have at best been patchy and inconclusive. The East African Community has gradually been pulling 
away from the pack, for a simple reason: it is generally effective. 
184. It is a fact that a number of legal documen ts have been adopted at the East African 
Community (EAC) level with a view to fully harmonizing members' trade policies vis-à-vis  third 
countries. However, multiple memberships of re gional economic communities by individual EAC 
countries remain among the main impediments to full harmonization, and further complicate trade 
related procedures in the region; the recent la unch of negotiations under the COMESA EAC SADC 
Tripartite Forum appears to be geared at stre amlining the integration process in the region. WT/TPR/M/271 
Page 28  
 
  185. We are pleased to note today that the EAC c ountries have taken steps towards mainstreaming 
trade into their national development strategies They have individually and collectively benefited 
from aid for trade. Nonetheless, th ey need more assistance to addr ess the bottlenecks that hinder their 
efforts to make trade contribute significantly to their economic development. 
186. We are convinced that economic integration is  the key to development in Africa. Efforts 
should be intensified to accelerate regional economic  integration, the development of cross border 
infrastructures and inter African trade so that  African countries can achieve lasting economic 
development as soon as possible. 
187. Africa has not yet made the most of all its strengths, nor has it been able to draw benefit from 
the significant size of its market, population and resources through inter-African trade. 
188. The imperative for a strong, united Africa lies in the fact that economic synergy progresses 
through integration because the economic advantage of any economic community is greater than the 
sum of the economic advantages of each of its indi vidual member countries. The promotion of trade 
between African countries should be regarded as a prio rity given that it could act as a route to growth, 
job creation and wealth. 
189. In conclusion, allow me to commend the governments of the members of the East African 
Community on their successful and laudable performan ce in recent years, and on their remarkable 
dynamism in promoting trade within this important region of the African continent. 
URUGUAY 
 
190. We are most heartened to learn from the reports that have been distributed of the various steps 
the members of the East African Community have  been taking to increase trade between them, the 
rest of Africa, and the world; and to improve their peoples' quality of life. 
191. We share the views of Ambassador Yi (Discu ssant) about analysing the process holistically. 
To that end we must approach this exercise mi ndful of the challenges faced by these countries, the 
progress they have made hitherto, and the future goals that the members undergoing review are 
seeking to achieve. 
192. We are aware of the challenges of the future but  we are convinced that joint efforts will clear 
the way for further progress and new opportunities for markets and international integration. In this 
regard, closer economic and technical ties and cooperation between African and South American 
countries are a reality that will, we hope, continue to flourish. 
193. Uruguay shares the view of the Members under review of the need for reform of the 
agricultural sector in the negotiations under way in this forum, and the importance of the multilateral 
trading system, hence our delegations' tireless e fforts to conclude the Doha Round negotiations. 
TUNISIA 
 
194. Tunisia welcomes the high level delegations of th e five countries that are members of the East 
African Community: Burundi; Kenya; Rwanda; Ta nzania and Uganda and commend them on the 
work they have done in their summary and analysis to provide us with a picture of the East African 
Community's situation in terms of economics and trade policy. 
195. Tunisia wishes to underline the considerable e fforts the East African Community has made 
since the previous review with a view to pursu ing its economic and trade liberalization policy by  WT/TPR/M/271 
 Page 29 
 
 
  reinforcing the liberalization process, establishing an environment conducive to the development of 
investment and diversifying its trade and econom ic relations with its principal partners. 
196. During the period under review the growth rate was high, mainly due to buoyant agriculture 
and services sectors. The 7% annual growth rate target  was reached in the period 2006 to 2011 by all 
EAC members. 
197. Although the economies of EAC countries are not diversified, the services sector accounts for 
the largest share of GDP, and has been growing stro ngly, particularly through increases in tourism, 
transport, and telecommunications. The sector accounts for over 40% of EAC members' economies. 
198. Nevertheless, agriculture remains among the l eading contributors to the regional economy, 
providing a livelihood for about 80% of the population. 
199. We note that the economies of the five memb ers of the East African Community emerged 
relatively unscathed from the crisis and that they have become increasingly open in recent years. 
200. Increased public investments in infrastruct ure, full implementation of the set of 
macroeconomic and sectoral reforms, together with regional integration, are expected to improve the 
productivity of individual EAC economies. 
201. Efforts are under way in the five EAC countries to strengthen and stabilize national 
investment policies. Administrative, regulatory, an d legal frameworks are being improved to create an 
investor enabling environment. Furthermore, all fi ve countries have establishe d investment promotion 
authorities responsible for promoting domestic and foreign investments. 
202. Nonetheless, it should be pointed out that the most significant challenge facing the East 
African Community countries lies in pursuing their e fforts to reform and becoming better suited to the 
reality of the international economic situation. 
203. Tunisia notes the role played by members of the East African Community in the Doha Round 
negotiations and commend them for their constructive contributions. 
204. The delegations of the EAC members have argue d for a truly developmental outcome of the 
Doha Round that must support pove rty reducing economic growth, a nd provide space for developing 
countries to pursue appropriate national polici es that enhance welfare and foster economic 
development. 
205. The outcome of the negotiations must also st rengthen and support the regional integration 
initiatives in the EAC countries and other regional trading arrangements on the African continent. 
206. In conclusion, it is clear that the East Afri can Community has made significant progress. The 
efforts made augur well, in our view, for the futu re of these countries, especially in relation to 
development. 
DOMINICAN REPUBLIC 
 207. The Dominican Republic commends the East  African Community, comprising Kenya, 
Tanzania, Uganda, Burundi and Rwa nda, on its second trade policy review. We note with interest that 
agriculture plays a key role in the economy of these countries but that the lack of modernization in the 
sector led to a significant economic slowdown in the region, in the wake of the global economic and 
financial crisis in 2008. We  urge them to take steps to transfor m and adapt their agricultural sectors so 
that they can once again provide momentum to the economy. WT/TPR/M/271 
Page 30  
 
  208. We also congratulate these countries on the effo rts they have made to harmonize their laws 
and strengthen their Customs Union and Common Mark et, and we urge them to continue on that 
route. 
209. In order to provide certainty to foreign invest ors, we also regard it as important for these 
countries to bind 100% of their products within the WT O and to standardize the tariffs applied so that 
they do not exceed the bound levels. 
210. We also note with interest that the services sect or is the largest area of economic activity, and 
that telecommunications services have been liberalized, an important factor for the development of 
these countries' economies; we hope they pursue this route with the other services. 
MOZAMBIQUE 
211. Mozambique shares historic, economic, social a nd cultural ties with the Members of the East 
African Community, with special reference to the United Republic of Tanzania, which whom our two 
countries enjoy a strong historic tie and ne ighborhood, a common Rovuma border, and both are 
Members of the same trade regional bloc, the S outhern African Development Community (SADC). 
212. The delegation of Mozambique feels proud in partic ipating in this special session devoted to 
the Joint Trade Policy Review of the East African Community, and aligns itself with the statements 
presented on behalf of the African Gr oup and the Least Developed Countries. 
213. We are pleased to note that, the value of in tra-EAC trade increased steadily between 2006 and 
2010, from US$1.6 billion to US$3.8 billion, and its sh are in total EAC trade, improved from 7.8% to 
11.4%, though recognising the significant differences in country-specific figures. 
214. We congratulate the efforts that are under way in EAC Member countries aiming to 
strengthen and stabilize national investment polic ies, structural reforms by improving the 
administrative, regulatory, and legal frameworks, to  create an investor-enabling environment, aiming 
at developing much more mark et-oriented economies and growth. 
215. We appreciate and note with satisfaction that the EAC's medium-term development strategies 
for 2011-2016 identifies seven priority areas to be addressed among them the African Union 
integration agenda and governance framework  as well as the EAC/COMESA/SADC tripartite 
arrangement. 
216. We are pleased to note that the programme for gr adual elimination of internal tariffs, adopted 
in 2005, was completed in January 2010. However,  non-tariff barriers remain major impediments to 
trade and business development in the EAC. We  encourage the national monitoring committees, 
established in all EAC member States, to carefully monitor the progress on the elimination of all these 
kind of barriers to trade, so as to allow trade to flow smoothly. 
217. Mozambique shares the EAC priority in the DDA, which include: improved market access for 
their agricultural products through bound duty-fr ee and quota-free access. We also share the EAC 
need of removal of tariff barriers, export subsidies,  and domestic support, reduction of high tariffs and 
tariff escalation on products of interest to developing and Least Developed Countries. 
218. Mozambique also shares the point of view th at there is need for greater opportunities in 
services, particularly through the movement of  natural persons, including less skilled labour; 
extension of geographical indicati ons coverage beyond wines and spir its, in order to maintain the 
identity of indigenous export products; strengthening  of Special and Differential Treatment provision; 
and the provision of meaningful technical assistance , including in capacity building, which will allow  WT/TPR/M/271 
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  Developing and Least Developed Countries to particip ate fully and effectively in all negotiations, to 
address supply-side constraints, and by the end, to  take advantage of the opportunities offered by the 
multilateral trading system. 
219. We commend and appreciate the work that has been developed towards establishing in these 
whole regions the Tripartite Fr ee Trade Area Initiative, COMESA-E AC-SADC, since 2005, with the 
main objective of rationalizing the integration pro cesses in the Southern and Eastern Africa region, in 
line with the African Union Plan for the ha rmonization of Regional Economic Communities 
throughout the continent. 
220. We are aware of the formidable challenges fa ced by all and each one of the East African 
Community Members, in many areas of concern to development, especially the infrastructure, index 
of unemployment, poverty reduction and the need to fiscal sustainability and response to demands for 
publican services. 
221. Mozambique commends all the initiatives to put in place several measures that are important 
instruments for reducing administrative and regulat ory constraints on business environment, important 
for improving investment climate compatible with the evolving trading system, including the 
development of a wide range of actions and regula tions in different fields as well as those aimed at 
support to private sector-led growth. 
222. Mozambique encourages to continue the efforts aimed at the consolidating the diversification 
of the economic base, by continuously directing inve stment primarily to impr ove the diversified range 
of infrastructure, agriculture and agro-processing services, industry and tourism, to continuously 
participate in the efforts aiming at consolidating the regional integration 
223. Technical assistance and capacity building ar e of vital importance, and the issue of 
Intellectual Property, transfer of technology, remain critical. We highly address our appreciation 
initiatives aiming to support and help in addressing all these issues. 
ZIMBABWE 
224. We commend the EAC members for the successful implementation of fiscal policies that have 
resulted in positive economic growth and the EAC fo r promoting regional economic integration. We 
note that intra-East African Community trade increased  steadily partly due to diversification of trade 
towards the original bloc despite supply-side constraints.  
225. The current effort towards an FTA betw een SADC-COMESA and EAC is yet another 
development that undoubtedly foster regional econom ic integration. Our delegation wishes the EAC a 
successful second Trade Policy Review and look fo rward to increase economic co-operation between 
EAC members and Zimbabwe. 
 WT/TPR/M/271 
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  V. REPLIES BY THE REPRESENTATIVE OF THE EAC AND ADDITIONAL 
COMMENTS 
226. It is my pleasure to provide responses to the comments and questions raised during the first 
session. A number of issues relating to EAC's economic environment, trade policies and sectoral policies were raised in advance and during th is review, which I would like to respond to.  
UNDER THE ECONOMIC ENVIRONMENT 
227. The EAC economies are expected to record str ong economic growth averaging above 5% in 
2012 despite the global economic crisis. This is pa rtly due to strong commodity prices, new resource 
exploitation, and the improved domestic conducive macroeconomic policy environment. However, 
there are still some threats to this outlook which incl ude the risk of intensified financial stresses in the 
euro area spilling over into a further slowing of th e global economy and the possibility of an oil price 
surge triggered by rising geopolitical tensions.  
228. Furthermore, it will be important to have a sm ooth political transition in Kenya, with the 
general election slated for March 2013. The Governme nt of Kenya has instituted various reforms to 
ensure a smooth transition including, implementati on of the new constitution, formation of a national 
transition authority and an independent electoral co mmission. These measures w ill ensure that there is 
a smooth handover of power hence no disruption of trade flows within the region. 
229. In 2011, the EAC economies experi enced high level of inflation caused by supply-side shocks 
particularly high international food and oil pr ices. However in 2012, c oordinated macro-economic 
policies supported by tight monetary policies curtailed inflation to single digit levels.  
230. The overall inflow of FDI to EAC doubled fro m a total of US$1,129 million in 2006 to 
US$2,330 million in 2011. 
231. EAC Partner States recognize that supply-side constraints remain a major challenge to 
economic growth and poverty reducti on within the region. Efforts to  address these challenges include: 
232. Development of regional road network along co rridors with a total length of 12,000 KM 
which constitutes a strategic priority within the co mmunity. The northern corridor starts from the port 
of Mombasa linking Kenya, Uganda, Rwanda, Burundi  and Eastern DRC. The central corridor begins 
from Port of Dar-es-Salaam and serves Tanzania, Zambia, Rwanda, Burundi, and Eastern DRC. The 
development of regional road network has however b een hampered by insufficient financial resources. 
The EAC has initiated development pa rtner coordinated assistance in order to mobilize funds for the 
corridors.  
233. Initiatives at both regional and individual country's level are on-going in the energy sector 
with the implementation of a regional strategy on scaling up access to modern energy services, 
implementation of cross border interconnection powe r projects, harmonization of energy policies and 
plans, and the establishment of the EAC power pool (EACPP). Similar initiatives are underway in railways, ports, and ICT that will further ease the cost of doing business in the region. 
234. Furthermore, the Partner States are developi ng appropriate legal a nd regulatory frameworks 
for inward investment and for economic expa nsion and development. The EAC enacted a 
Competition Law in 2006 and operatio nalized its regulations. It is in the process of establishing a 
regional Competition Authority. Kenya and Tan zania have operational Competition Authorities, 
Burundi and Rwanda have enacted laws to estab lish competition authorities and Uganda is in the 
process of enacting a competition policy and law.  WT/TPR/M/271 
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  235. The EAC is currently implementing the 4th Development Strategy 2011–2016 for the 
Community, which emphasizes, among its priority areas, improved regional/global competitiveness for faster and sustainable economic growth. To maintain a competitive business environment, the 
EAC Partner States have undertaken several reform s to improve the business climate. For example, 
the trade facilitation reforms undertaken by the Pa rtner States include electronic submissions of 
documents, risk management systems for inspec tions and joint border operations. The regulatory 
reforms such as the consolidation of different re gistration processes into one single point in Rwanda 
and Kenya simplified the business re gistration in the EAC Region.  
236. EAC has adopted a regional framework for trade policy formulation. The Partner States have 
a common trade regime that is decided upon at  the regional level but implementation remains 
national. 
237. The implementation of the Customs Union and the Common Market has been progressive as 
specified in the respect ive EAC Protocols. There have be en challenges encountered in the 
implementation of Customs Union and Common Market. Some of the challenges manifest in terms of 
Non-Tariff Barriers (NTBs), lack of centralized  enforcement/sanction mechanism, inadequate 
institutional, national and regional level capacities to domesticate regional policies and information 
access, delays in enactment and amendment of the relevant national laws, multiple membership to 
different RECs hence overlaps in tariff preferences,  varying economic development levels that may 
result in skewness of trade flows. These challeng es are being addressed at the regional level. 
238. Several questions were raised on the elimination of NTBs in the EAC. The EAC decision 
making organs have given the di rectives and has the political goodwill for eventual elimination of 
NTBs within the provisions of the laws set out in the EAC Treaty and other Protocols which obligates 
the Partner States to eliminate NTBs. The followi ng are the mechanisms developed and adopted by 
EAC for monitoring, reporting and resolving NTBs in the region: 
239. The EAC adopted a Time Bound Programme for the elimination of NTBs, which is updated 
quarterly and has a time frame for removal of each NTB reported. So far 34 NTBs had been 
eliminated by September 2012.  
240. The EAC Partner Sates have established Na tional Monitoring Committees on NTBs to 
monitor, report and seek resolutions to NTBs. These Committees meet quarterly at the regional level 
to update the Time Bound Progamme and negotiate for the elimination of outstanding and reported 
NTBs. 
241. Quarterly publications are made on the progress of the elimination of NTBs. 
242. The EAC has adopted the EAC–COMESA-SADC online reporting systems for the 
monitoring and reporting NTBs. 
243. In addition to the EAC Policy Organs, Trade Remedies Committee, Regional Forum on 
NTBs, the EAC Partner States also undertake re gular bilateral initiatives as an avenue for 
fast-tracking elimination of reported NTBs through coordination by the EAC Secretariat. The 
outcomes of the bilateral initiatives are then consid ered and adopted by the Council of Ministers. 
244. EAC is in the process of developing a lega lly binding mechanism on the elimination of 
identified NTBs that will ensure that infringeme nts arising from NTBs are removed in a timely 
manner. A draft NTB Bill has been developed and is currently under consideration by the Partner 
States prior to adoption by the Council of Ministers. WT/TPR/M/271 
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  245. As a Common Market, the EAC pursues its trading arrangements with third Parties as a bloc. 
This is affirmed by the ongoing negotiations w ith COMESA and SADC in the context of the 
Tripartite Free Trade Area (FTA), with the EU on the Economic Partnershi p Agreement (EPA), and 
with the U.S. on the Trade and Investment Partnershi p. In addition, the EAC is keen on deepening its 
trade and investment relations with other Partne rs, particularly with key emerging economies. The 
EAC aims to have trade agreements with third parties that will, among others, strengthen regional 
integration in the EAC and contribute to promo ting value addition and a ddressing production, supply 
and trading capacity in the region. 
246. With regards to comments raised on EAC's trade with COMESA and SADC, the Protocol 
establishing the EAC Customs Union recognizes the tr ade arrangement that countries had with third 
parties before it came into force. This is furthe r entrenched in the EAC Customs Management Act, 
which allows continued application of preferen tial regime under COMESA and SADC. This means 
that Burundi, Kenya, Rwanda and Uganda have continued to enjoy the preferential regime under 
COMESA and Tanzania enjoys the preferential regime under SADC. The Common External Tariff 
(CET) in this case does not apply. This gives EAC a strong starting point to enter into a free trade 
arrangement under the Tripartite.  The EAC looks at  the Tripartite FTA as a solution to overlapping 
membership. The Tripartite negotiations are ongoing on tariff liberalization and exchange of offers, 
Rules of Origin, Technical Barriers to Trade (TBT ), Sanitary and Phytosanitary (SPS), NTBs and 
Customs Cooperation.    
247. With regard to the limited use of preferen ces, the EAC Partner States have undertaken 
assessments to identify and overcome challenges faced utilizing preference schemes such as the 
AGOA. These challenges have been communicated to  the preference granters, i.e. during the AGOA 
Forums, and strategies have been developed to address these challenges. 
248. The EAC Partner States are original Members of  the WTO. They support a fair and equitable 
multilateral trading system and immediate conclu sion of the Doha Development Agenda (DDA) 
negotiations. For the EAC Partner States, the development component of the DDA remains the 
priority in the negotiations. In addition, improve d market access for agricultural and manufacturing 
products, removal of non-tariff barrier s and elimination of trade distorting subsidies are also priorities. 
In order to maximize benefits from the DDA nego tiations, the EAC will require assistance under the 
Aid for Trade Programme and the Enhanced Integrat ed Framework to particularly address supply side 
constraints. 
249. On the issue of notification, the EAC Partner States have faced challenges in making timely 
notifications to WTO due to lack of capacity in vari ous agencies. This is an area that needs technical 
assistance and capacity building to improve no tification requirements under different WTO 
agreements. 
TRADE POLICIES 
250. EAC Partner States are committed to enhancing trade facilitation. Considerable efforts are 
being made to remove impediments to trade and regional integration inside the national borders. 
Within the framework of reducing the transaction co sts, the EAC Partner States have established One 
Stop Border Posts (OSBP) and Revenue Authorities Digital Data Exchange (RADDEX). They are also in the process of expanding and improving por t facilities, and establishing an Electronic Single 
Window. Customs procedures have also been harmoni zed and operational manual was adopted by the 
Council and is under implementation.  
251. The EAC Partner States have continued to implement the EAC CET since the year 2005 
under a duty structure of 0%, 10% and 25%. These C ET rates were reviewed in 2010. Under the EAC 
Protocol, the Council of Ministers is empowered to review the CET structure in respect of a specific  WT/TPR/M/271 
 Page 35 
 
 
  country or generally to the whole EAC based on justifiable reasons. The second comprehensive CET 
review is scheduled for 2014. 
252. EAC Partner States whose bound rates are lower than the CET rates intend to enter into 
consultations with other WTO Memb ers to address this situation. 
253. EAC Customs Management Act, 2004 also provides for duty remission and exemptions. 
Before the annual budget statements are read, th e Council undertakes a review of submission of 
partner states and secretariat on CET with a view to addressing emergencies or shortages of essential products and normally the reviewed rates are applicable for a period not exceeding one year. 
254. The EAC has established a trade remedy regime, which is in line with WTO rules to address 
the effects of dumping, subsidization and import surg es. In addition, Partner States, in particular 
Kenya and Tanzania are in the process of establis hing their trade-remedy regimes to compliment the 
efforts at the EAC level. 
255. The Partner States support export promotion schemes in the Community for the purposes of 
accelerating development, promoting and facilitating export oriented investments, producing export 
competitive goods, developing an enabling environm ent for export promotion schemes, promoting 
export diversification and attracting foreign dir ect investment. The EAC Customs Union Protocol 
provides for export promotion schemes including the establishment of Export Processing Zones (EPZ) and Special Economic Zones (SEZs). These sc hemes are regulated under the EAC Customs 
Management Act.  
256. Considerable work has been done to rationali ze the two schemes including development of 
the EPZ Operational Manual, harmonization of EPZ Exemptions and formulation of EAC Special 
Economic Zones Policy. Partner States are in the process of developing the second joint EAC Export 
and investment Strategy covering the period 201 1-2016 aimed at creating a sound environment for 
EAC's exports diversification. 
257. The EAC does not have any export restricti ons except on the ground of food security and 
international treaties/agreements which provide for such bans. However, it imposes export taxes on 
isolated items for purposes of value additi on and its overall development objectives. 
258. The EAC region recognizes Intellectual Property Rights (IPRs) system as an important tool 
for trade and a cornerstone of modern economic polic y. Since the last Trade Policy Review significant 
progress has been made in the regional co-operation and approximation of Intellectual Property Rights 
policies and legal frameworks amongst the EAC Pa rtners States. The EAC Anti-Counterfeit Policy 
has been adopted. The EAC Anti-Counterfeiting Bill, the EAC Regional IP Protocol and Policy on the 
Utilization of Public Health-Related WTO-TRIPS flexibilities are being finalized. All EAC Partner 
States have either reviewed, or are reviewing thei r IPR policies and legislation in order to avail 
respective national IPR systems that serve their na tional needs and are in line with their respective 
obligations and flexibilities under various internatio nal arrangements including  the TRIPS Agreement. 
259. The EAC Partner States have agreed to progressively harmonize their policies and laws on 
domestic taxes, with a view to removing tax dist ortions, and facilitating the free movement of goods, 
services, and capital, and the promotion of investme nts within the Community. There are no duties or 
internal taxes on medication within the EAC region. 
260. In addition, the EAC Partner States have signed an agreement on avoidance of double 
taxation and is currently under the ratification process.  WT/TPR/M/271 
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  261. EAC is undertaking policy measures and strategi es to develop the informal sector through 
Small and Medium size Enterprises (SMEs) Stra tegy, Annual Exhibition and undertaking business 
growth activities to integrate SMEs into the formal sector. 
262. Standards development is governed by the EAC Standards, Quality Assurance, Metrology and 
Testing (SQMT) Act 2006. EAC has a mechanism for harmonization of regional standards and 
adoption of international standards; the EAC St andards Committee uses a consultative process in 
discussion of the standards before approval by the EAC Council of Ministers. Notification of those 
standards to the WTO members is done by Partner States. 
263. Public procurement is a significant function in each Partner States in facilitating Government 
operations. The EAC Common Market Protocol 2010  and the EAC Competition Act 2006 provide for 
transparent accessible and non-discriminatory tenderi ng procedures. Partner States at National Level 
have developed public procurement laws. In Kenya for example, the Public Procurement and Disposal 
Act, 2005 lays down rules and regula tions to be followed by all those involved in this process. This 
procurement system is open to genuine and fair  competition. The Public Procurement Act also 
establishes the Public Procurement Oversight Author ity as a body corporate charged with ensuring 
that the procurement procedures established under the Act are complied with. 
SECTORAL POLICIES 
264. The EAC Partner States adopted the Agriculture  and Rural Developmen t Policy and Strategy 
(2005-2030). EAC Food Security Action Plan (201 1–2015) aimed at achieving food security and 
rational agricultural production. The EAC Partner St ates agreed to review the legal and regulatory 
frameworks with a view to addressing the multiplicity and high rates of taxes in agriculture sector by 
introducing the Warehouse Receipt System, promotion of contract farming and initiating a sustainable 
capacity building programs. The Policy reviews have  been extended to the national trade policies 
where heavy tax burdens in agriculture are among th e key issues to be addr essed; and Food Security, 
Nutrition and Poverty alleviation subsectors Policies are at their prominent phases of implementation.  
265. The EAC SPS Protocol has been approved. Upon ratification by the Partner States, the 
measures in the Protocol will be implemented at the national levels. The EAC Partner States have 
prioritized harmonization of regional sanitary and phytosanitary measures. The protocol emphasizes 
pest/disease surveillance, risk assessments, harmoniza tion of measures, management of new pest and 
disease threats and capacity building regional appr oach to standard setting and effective border 
management between Partners stat es. The protocol also conforms  to international standards, 
guidelines, codes of practice and advisory texts of the International Plant Protection convection 
(IPPC), World animal Health Organization (OIE) and Codex Alim entarius (Codex).  
266. On Fisheries, the EAC Partner States have  established joint monitoring committees for 
purposes of addressing illegal fishing in the marine a nd inland waters. In particular the EAC Lake 
Victoria Fisheries Organization (LVFO) is the le ad institution in the sustainable management of 
fisheries resources in Lake Victoria.  
267. The EAC Partner states are pursuing measures to encourage and create a conducive 
environment for more investments in the energy sect or as well as diversification in their energy mix. 
Further, the Partner states have plans to review  investment codes and policies and in the process 
provide less burdening contractual and licensing procedures as well as designing sector specific incentives e.g. Feed-in Tariffs policy to attract more Independent Power Producers (IPPs) in the 
energy sector. The main aim of the feed in tari ff is to encourage power generation from renewable 
sources of energy such as geothermal, wind, solar, bio-energy.    WT/TPR/M/271 
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  268. Cross border electricity transmission initiativ es being undertaken include: Kenya-Uganda 
interconnector, Tanzania-Kenya interconnector, Ug anda-Tanzania interconnect or and other Partner 
States are being brought on board. 
269. Mining is an emerging sector of growth in EAC Region. Mining and mineral exploration 
activities are generally marginal in the EAC Pa rtner States. The policy, legal and regulatory 
frameworks that govern the mining sector across the re gion are being reviewed with a view to putting 
in place better implementable instruments that carte r for equitable benefits to investors and the 
respective economies. The region shall continue to pursue concerted efforts intended to attract in 
flow of major investments into this sector which has great potential for improved performance given increased investments and financial support without necessarily marginalizing the small scale mining 
activities of which are collectively contributory to overall performance of the economies of the region. 
270. The manufacturing sector in the EAC has continue d to register marginal growth. To reverse 
this trend, the Community adopted the Industria lization Policy and Strategy 2012-2032, which has 
priority sectors namely, fertilizer and agrochem icals, agro-processing, petro-chemical and gas 
processing, iron ore and other mineral processing, and energy and bio-fuels.  
271. The Policy and Strategy is intended to divers ify manufacturing sector to raise local value 
added content from the current 8.62% to 40% by the year 2032; strengthen national and regional 
institutional frameworks and capabilities for industr ial policy implementation; strengthen R&D; 
increase intra-regional manufacturing exports from th e current 5% to 25% by 2032; increase the share 
of manufactured exports from 20% to 60% by 2 032; and transform micro, small and medium 
enterprises into viable businesses and increase its c ontribution to GDP from the current 20% to 50%.  
272. The EAC is committed to liberalization of trade in services in a progressive manner. The first 
round of service liberalization focused on seven  core service sectors namely, communication; 
business; distribution; education; financial; tourism and travel related; and transport. EAC Partner 
States are in the process of implementing their comm itments in these sectors. The EAC Partner States 
have undertaken various policy, le gal and regulatory reforms that ha ve enabled continued innovation, 
competition, liberalization and investment in services particularly in sectors such as tourism, financial 
(including insurance), communication, transport and professional services. 
273. In the tourism sector, the EAC Partner States ha ve agreed to work together to market the 
region as a single tourist destination so as to maximize gains and complement each other. There are also investment and fiscal (tax) incentives in Pa rtner States that are provided for both local and 
Foreign Service suppliers/investors.  
274. There are investment opportunities in the ICT sector particularly in the development of the 
data and disaster recovery centres, Busin ess Process Outsourcing, multimedia technology and 
industrial parks, digital broadcast network, tec hnology city, software and hardware development, 
international teleport. Other inv estment opportunities are in trans port infrastructures (road, railway, 
air, marine and water transport). Major projects in the region include construc tion of roads, airports, 
railways, marine and water transport facilities and services thereof.  
275. The EAC is also striving to strengthen professi onal bodies in order to increase the potential 
for private sector self-regulation and improve r ecognition and reputation. In September 2012, the 
EAC Professional Services Platform was launched.  One of the objectives is to offer support to 
professional bodies.   
276. 
In concluding, I wish to reiterate that the visi on for regional integration in East Africa is to 
create wealth, raise standards of living of all pe ople of East Africa and enhance the international 
competitiveness of the region through increased producti on, trade and investment. In this regard, EAC WT/TPR/M/271 
Page 38  
 
  is committed to implement further economic policy reforms and develop infrastructure with a view to 
improving the business environment in the region. The EAC invites all WTO Members to invest in the region and take advantage of the improved policy environment and available investment 
opportunities. 
277. I would also like to mention that EAC Partner States also face market access challenges while 
trading with other WTO Member States and we lo ok forward to working with you to address these 
challenges. 
DISCUSSANT 
278. On the economic environment, Members encourag e the EAC countries to create a more stable 
and business-friendly environment through overcoming the supply-side  constraints and undertaking 
domestic structural reforms. I am happy to lear n that the EAC is implementing its development 
strategy aiming at a faster pace and in a more sustainable manner. Economic diversification, 
infrastructure improvement and the use of inform ation and telecommunication technology (ICT) are 
identified as three critical areas fo r the successful implementation of this strategy. The EAC countries 
are upgrading their agricultural production, deve loping processing and manufacturing industries and 
encouraging application of ICT. They are also  undertaking tremendous effort in improving their 
transportation system by building more railways and establishing more corridors. As we Chinese 
always say: "if you want to get rich, build roads and highways". I am confident that all those measures, including the improvement of infrastruct ure, will significantly enhance the competitiveness 
of the EAC countries.  
279. On the trade policy regime, Members showed th eir interests in the progress and future steps 
of the EAC countries to eliminate Non-Tariff Barrier s (NTBs). I am highly encouraged by the replies 
from the EAC countries for their great efforts in this  respect. 34 reported NTBs have been abolished, 
while the remaining nine newly reported ones would be eliminated by this December. Moreover, the 
EAC is also in the process of developing a legall y binding mechanism for the elimination of such 
NTBs. Additional efforts also include the establishment of harmonized cargo tracking system, 
reduction of police road blocks and adoption of harmonized customs documen tation and procedures, 
etc.. I believe that all those measures will prom ote intra-EAC trade and strengthen its economic 
relations with the rest of the world. 
280. It is also observed that some Members have expressed their concerns on the EAC's tariff 
regime. As mentioned in the replies of th e EAC countries, the EAC has made significant 
improvements in its tariff structure. Some Memb ers are also concerned that bound level of certain 
tariff lines of the new EAC states are higher than the CET rates. We take note that Rwanda and 
Burundi intend to enter into consultations with ot her Members in order to address this problem, and I 
expect them to work out a multilaterally acceptable solution.  
281. Members also expressed their interest in knowing the progress in the harmonization of tax 
regime of the EAC. We just learned from the EAC co lleagues that they have started technical work on 
the harmonization of exercise tax, value-added tax and income tax. They are also discussing the most 
suitable legal framework on this area consiste nt with the EAC integration efforts.  
282. On the multilateral front, Mr. Chair, The EAC countries are committed to the multilateral 
trading system and the successful conclusion of the Doha Round. The EAC Governments share the 
sense of urgency for an early harvest and call upon th e Membership to work together towards some 
tangible and development-friendly results at the MC 9 and the eventual conclusion of the whole round 
afterwards. Meanwhile, The EAC countries are making tremendous efforts with its FTA partners to 
promote the regional integration and trade liberalization.   WT/TPR/M/271 
 Page 39 
 
 
  283. On sectoral policies, Members have expressed their interests in wide-ranging areas including 
manufacturing, mining, agriculture and services as  well. In response to the requests for the EAC 
countries to further explore the potential growth  in manufacturing, the EAC Summit approved the 
EAC Industrialization Policy and Strategy (2012–2 032).  Six sectors were selected as strategic 
industries of priority, including fertilizer and agrochemicals, agro-pro cessing, pharmaceuticals, 
petro-chemical and gas processing, iron ore and othe r mineral processing, and energy and bio-fuels. In 
addition, this policy contains two particularly note worthy aspects: First, it requires the strengthening 
of R&D, technology and innova tion capabilities to facilitate structural transformation of the 
manufacturing sector and upgrading of production systems; Second, it stipulates that transforming Micro Small and Medium Enterprises into viab le and sustainable business entities capable of 
contributing up to 50% of manufacturing GDP from 20% base rate. 
284. On the whole, this two-day exercise of the 2nd Trade Policy Review of EAC has indeed been 
quite fruitful. Through this exercise, I have acqui red a better and deeper understanding of the EAC's 
policies and practices, which I hope will bring resonance among the Members. Meanwhile, I am 
confident that the EAC colleagues will further dig est the useful comments from Members, which will 
be of help for its future development.  
285. In conclusion, I request your permission for me to share two Chinese proverbs with our EAC 
colleagues. The first is " 有志者事竟成 "（where there is a will, there is a way ）, I firmly believe that 
the EAC countries, with such a strong determina tion, will achieve their ultimate goal as a political 
federation and bring their citizens to prosperity. The Second proverb is " 千里之行，始于足下 " (the 
longest journey begins with the first step), the EAC countries have made their first solid step by 
establishing the customs union, and I believe they will make more strides in their journey forward. 
INDIA 
286. India expresses a deep appreciation for the very useful discussions and exchange of views that 
have taken place in the Trade Policy and Practices of  the East African Community and its individual 
Members. This Trade Policy Review has provided us a good opportunity to understand and appreciate 
the extensive reforms undertaken by the East African Community while recognizing the huge 
development challenges contracting its Members, for of which are LDCs.  
287. India takes this opportunity to thank H.E. Minister William A. Mgimwa for his detailed 
comments outlining the EAC efforts at  infrastructure development to adjust supply-side constraints 
and the regulatory framework put in place to attract investments and enhance trade flows with a will to improving the living standards of their pe ople through high growth and social-economic 
transformation.  
288. We also thank Ambassador Tom Mboya of Ke nya with whom my delegation has worked 
closely for his substantive remarks on the firs t day of the TPR. We appreciate the useful and 
comprehensive comments of the Discussant. We al so appreciate the considerable work by the 
Secretariat in the preparation of the reports. 
289. As a close partner of the EAC, India has been engaged in various development initiatives in 
the region and stands committed to continue this partnership. We wish the EAC countries success in 
their endeavours to a build a prosperous East Africa and congratulate them on a very successful Trade Policy Review. 
UNITED STATES 
290. The United States thank the EAC Members for the hard work in preparing for this TPR and 
for providing written responses to the questions we  submitted in advance. We note the responses WT/TPR/M/271 
Page 40  
 
  indicated that certain individual EAC Members will be  submitting notifications in the near future. We 
look forward to seeing such notifications submitted, including those related to import licensing procedures, TBT and SPS.  
291. We would also encourage the Members to work with the Secretariat as appropriate to ensure 
that such notifications are submitted in time a nd manner. We also have a couple of follow-up 
questions based on individual Members' responses.  
292. The first is a comment. In response to our question on tariff bindings, Burundi and Rwanda 
noted that they intend to enter into consultations  with other WTO Members in order to address the 
situation. The United States appreciate Burundi's a nd Rwanda's response on this issue and we look 
forward to participate in those consultations. 
293. Additionally, we note that in response to ques tions put forward by the European Union on 
alignment of Kenyan standards with those of the OAI for avian influenza and BSI, Kenya indicated 
that it will be undertaking review of these standard s. We would appreciate if Kenya could provide a 
timeframe within which Kenya will complete the reviews of its respective standards.  
294. Finally, we have follow-up questions for Burundi , Tanzania and Uganda related to intellectual 
property which we have submitted in writing to the Secretariat and we note that we received 
Tanzania's response in binding and we look forward to reviewing them in Capital. 
EUROPEAN UNION 
295. The EU would like to thank the EAC for the re plies to our advance written questions as well 
as the very comprehensive and useful information a bout their initiatives, developments and reforms. 
We have studied the replies carefully and we  do not have additional questions to pose.  
296. EU has also taken good note of the challenges to development and further regional integration 
that have been flagged during this  Review, as well as the ongoing efforts by the EAC to overcome 
them and would like to encourage to continuing these e fforts. In this context, let me reiterate again to 
use commitment to support the objectives of the EAC. 
297. The EU hopes that this Trade Policy Review has brought useful input for the countries of the 
EAC and will contribute to the implementation of the EAC development strategy in the future. 
ZAMBIA 
298. Zambia welcomes this joint initiative as it ac cords the Members of the WTO to have 
comprehensive view of the evolution of trade policy of a regional group comprising one developing 
country and least developed countries. Yet advanc ing the same policy objectives through the EAC, 
my delegation is pleased to note that since the last  review undertaken in 2006, two more countries 
namely Burundi and Rwanda, have joined the East  African Community. It is clear from the countries 
specific reports that the EAC committed to ensu ring that trade serves as an engine for growth. 
299. All five countries have continued to pur sue liberal policies and have enhancing 
competitiveness among other objectives. All have put in place institutional frameworks to support the 
regional integration efforts. The reform reviewed  positive reports, particularly with regard to 
enhancing competitiveness and poverty reduction. However, many challenges still remain which 
require efforts at the bilateral,  regional and multilateral levels. 
300. It's therefore my delegation expectations that  this review will generate interest among 
Members of the WTO to continue supporting the re gion in the areas where there is deficiency,  WT/TPR/M/271 
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  especially with regard to infrastructure and export diversification. From a bilateral perspective, 
Zambia has strong historic ties, and economic ties w ith all countries in East  Africa. For instance, 
Tanzania is one of Zambia's important route to  the sea coast through the road network and the oil 
pipeline. Tanzania is a member of the South A frican Development Community where we are pursuing 
common regional integration programmes. 
301. As regards Burundi, Kenya, Rwa nda and Uganda, we belong to  the same regional economic 
community, the Common Market for Eastern and S outhern Africa, where we have continued to 
pursue important trade facilitation programmes am ong other initiatives. The establishment of the 
SADC-COMESA and EAC strategy framework in October 2008 indicates our determination to 
integrate and remove obstacles towards regiona l trade and economic cooperation. We hope to 
harmonize this framework of our trading arra ngements to implement jointly interregional 
infrastructure programmes and also  institutional arrangements. 
KOREA 
302. Korea expresses its sincere appreciation to the de legation of the EAC for their hard work and 
this successful TPR and we thank the Tanzanian de legation for properly providing written answers to 
our additional questions. We wish all the de legates from the EAC a safe trip back home. 
JAPAN 
303. Japan commends the EAC for providing written an swers and would like to give them a very 
careful consideration. Japan wishes the EAC and pa rtner countries successful reforms and a fruitful 
outcome. 
HAITI 
304. On behalf of the LDC Group I would like to say th at we have followed with keen interest the 
presentations made during this Trade Policy Revi ew. The LDC Group is very impressed with the 
tremendous efforts that have being made by the EAC with so very limited resources. The path of the 
regional integration that the States of Eastern Afri ca has chosen to take should be loaded, supported 
and encouraged. The seriousness and commitment de monstrated in pressing forward on the road to 
integration and development should serve as an ex ample to all the LDCs countries and certainly 
emulated. Special recognition should be given to Kenya as the only non-LDC member of this group 
for their leadership.  WT/TPR/M/271 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
305. This second joint Trade Policy Review of the East African Community (EAC) countries has 
allowed us to situate the five countries' trade and trade-related policies and practices in their 
socio-economic context. We are grateful for the active participation of the delegations headed 
respectively by H.E. Mr. Pierre Claver NDAYIRAGIJE, Ambassador, Permanent Representative of 
Burundi to the WTO; HE. Dr. Tom MBOYA OKEYO,  Ambassador, Permanent Representative of 
Kenya to the WTO; H.E. Mrs. Soline NYIR AHABMANA, Ambassador, Permanent Representative 
of Rwanda to the WTO; H.E. Dr. William A. MGIM WA, Finance Minister of the United Republic of 
Tanzania; H.E. Mr. Peter KAGIMU KIWANUKA, Ambassador, Permanent Representative of Uganda to the WTO. I would also like to thank the discussant, H. E. Mr. Yi Xiaozhun, Ambassador 
and Permanent Representative of China to the WTO,  and Members of the TPRB for contributing to 
our fruitful exchange of views, as well as the EAC Secretariat for its assistance to its members during 
this review process. 
306. Members welcomed the five countries' commitm ent to the multilatera l trading system and 
encouraged them to continue their active particip ation. They appreciated EAC members' continuous 
integration efforts, the progress made thus far in  the implementation of the customs union and single 
market, and their vision of the process as a way to  facilitate their further integration into the 
multilateral trading system. They recognized that poor  infrastructure such as roads, rail and the high 
cost of energy coupled with complex administrativ e procedures add to the high cost of doing business. 
Thus they urged the EAC countries to take furt her steps to address these hurdles and increase 
productivity and competitiveness in order to attract FDI. Competition policy at the regional level may 
also help the business environment. 
307. Members invited the EAC countries to dismantle a number of NTBs that continue to hamper 
trade, including intra-EAC trade, and urged them to comply with their notification obligations, 
particularly in the areas of SPS, TBT, and import licensing. Clarification was sought on sectoral policies, including plans for harmonization, in a nu mber of areas including agriculture, energy and 
mining, and services. The statements, questions and replies voiced in the course of this Review have 
highlighted some key areas for further actions or improvements, including: 
 Tariff protection and conformity with WTO provisions:  Noting that the CET is composed 
of ad valorem and non-ad valorem rates, while EAC States have individually bound their tariffs at ad 
valorem rates only, and that Rwanda and Burundi apply ad valorem rates on certain products higher 
than their WTO bound levels, Members enquired about plans to comply with WTO commitments and to reduce the CET, scheduled for review in 2014. 
 Overlapping membership in regional trade agreements: While noting that the ongoing 
Tripartite negotiations under EAC-COMESA-SADC may help to address certain concerns about 
overlapping membership, Members questioned EAC c ountries' rationale for maintaining bilateral 
trade agreements with each other and overlapping membership in RTAs, and for negotiating bilateral 
trade agreements individually with third countri es, arguing that this would delay the harmonization 
process and complicate the formulation of coherent trade policy. 
 Agriculture: Members asked about steps being taken to temper distortionary regulatory 
interventions, reduce taxes and levies including t hose impeding the international competitiveness of 
their agricultural goods, and to modernize the agriculture sector.  
 Intellectual property: Questions were posed about steps being taken by the five countries to 
align their IPR regimes with international nor ms and about their effective implementation.   WT/TPR/M/271 
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   Services:   Members asked for details of taxes and controls applied to services, efforts being 
made to improve professional bodies, priorities for services liberalization, and investment incentives available, particularly in tourism. 
308. Members appreciated the comprehensive r esponses provided by EAC countries to most 
questions and look forward to receiving any outstanding replies. 
309. In conclusion, this Review has contributed to deepen our understanding of the regional, as 
well as national components of the trade regimes of  Burundi, Kenya, Rwanda, Tanzania and Uganda. 
Members urged the five countries to pursue their trade liberalizing reforms, to improve their 
multilateral commitments on goods and services a nd their business environment with a view to 
enhancing transparency and predictability and attr acting investment.  Assistance, including under the 
Aid for Trade and the Enhanced Integrated Fram ework Programmes, may also help. All of these 
countries have clear visions about their future and they deserve our support in trying to make their 
vision a reality. Once again, I thank the delegations of the countries under review, the discussant and Members for contributing to an informative and interesting review. I also wish to express my 
appreciation to the five delegations for their oral  and written responses, to the Secretariat for its 
valuable assistance and to the interpre ters for their usual excellent work. 
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