TITLE:
Effects of Non-Tariff Barriers on Maize Trade in East Africa: Evidence on Tanzanian Exports to Kenya between 2011 and 2020
AUTHORS:
Hassan Amir Mnondwa, Tumaini Gotfried Rwela, Yohana James Mgale
KEYWORDS:
Exports, Non-Tariff Barriers (NTBs), Maize, Trade Cost, Tanzania, Kenya
JOURNAL NAME:
Open Access Library Journal,
Vol.11 No.6,
June
20,
2024
ABSTRACT: Regional Economic Integrations (REIs) drive economic growth within partner states but face hurdles from significant trade barriers, including tariffs and non-tariff obstacles. This study assesses the impact of Non-Tariff Barriers (NTBs) on maize trade in the East African Community (EAC) from 2011 to 2020, using Tanzanian exporters to Kenya. It examines Tanzanian maize export volumes, identifies NTBs faced by exporters to Kenya, and assesses measures taken by Tanzanian and Kenyan governments to address NTBs. Utilizing secondary data, the study employs gravity models and content analysis. The findings show that delays of six to seven hours that raise transportation costs are the key NTBs impact in the study area. Although NTBs exist for Tanzanian maize exports within the EAC, their impact on trade volume is limited. NTBs contribute to increased business costs due to roadblock delays, but weigh-in-motion technology and infrastructure enhancements help mitigate costs. Initiatives like One-Stop Border Posts (OSBPs) and the Electronic Cargo Tracking System (ETS) reduce transit time. Between 2011 and 2020, 232 NTBs were reported, with 199 resolved and a few in the final resolution stages. Recommendations emphasize eliminating non-tariff barriers, with a call for further research on trade dynamics among other East African Community countries.