By KPC Reporter
The East African Community (EAC) has adopted a series of measures aimed at strengthening regional trade, accelerating industrialization, and improving the competitiveness of member states.
This follows the conclusion of the 48th Meeting of the Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) in Arusha, Tanzania, which brought together ministers responsible for trade, industry, finance and EAC affairs, alongside senior government officials and technical experts from all Partner States.
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EAC Secretary General Amb. Stephen P. Mbundi said the region was operating in an increasingly challenging global environment characterized by geopolitical tensions, disruptions in maritime trade routes, rising protectionism, and vulnerabilities in international supply chains.
He urged Partner States to strengthen the regional market, reduce the cost of doing business, and accelerate the implementation of integration commitments, including the elimination of Non-Tariff Barriers (NTBs).
Among the key outcomes of the meeting was the endorsement of Time Release Studies for the Northern and Central Corridors, which assess cargo clearance times and identify opportunities to improve customs procedures.
The studies found that stronger collaboration among customs authorities, border agencies, and the private sector has enhanced the efficiency of regional supply chains, although further reforms remain necessary.
The Council also adopted a framework for monitoring implementation of the EAC Customs Union Protocol to help assess compliance by Partner States with regional obligations. In addition, ministers approved measures to facilitate South Sudan’s integration into regional customs data-sharing systems.
Efforts to eliminate Non-Tariff Barriers also featured prominently during the discussions.
The Council considered proposals to strengthen the legal framework governing NTBs, including the possibility of sanctions and compensation mechanisms for traders who suffer losses due to unlawful taxes or trade restrictions.
The proposals will undergo further technical and legal review before consideration through the Community’s formal decision-making processes.
In a major step towards promoting industrialization and regional value addition, the Council approved a comprehensive review of the EAC Rules of Origin 2015.
The rules determine whether goods qualify for preferential tariff treatment within the region and are considered a cornerstone of the Customs Union.
Legal review of the revised framework is ongoing ahead of implementation.
The Council also noted growing international interest in establishing trade partnerships with the EAC.
Ministers welcomed a formal proposal by Singapore to begin negotiations on an EAC-Singapore Free Trade Agreement.
They endorsed continued engagement with Singapore and directed the EAC Secretariat to undertake preparatory technical work while ensuring that any future negotiations reflect the collective interests of Partner States and remain consistent with existing and planned trade agreements.
The meeting further endorsed fiscal measures agreed during the 2026/2027 Pre-Budget Consultations of Ministers of Finance under the Common External Tariff framework.
The measures are currently undergoing gazettement and are expected to take effect on July 1, 2026.
To ensure effective implementation, the Council agreed on a series of timelines for completing outstanding customs and trade facilitation work, including technical analyses and recommendations on regional duty remission arrangements by September 2026.
Approved fiscal measures are expected to be gazetted by June 30, 2026.
The ministers emphasized that timely implementation of Council decisions, prompt remittance of Partner States’ statutory contributions, and continued cooperation among regional institutions will be critical to achieving the EAC’s vision of a prosperous, competitive, and fully integrated East Africa.
