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Non-tariff barriers hamper regional trade - CTI
2005-05-19 08:36:30
By Bilal Abdul-Aziz
The Confederation of Tanzania Industries (CTI) has said that non-tariff barriers (NTBs) cropping up to replace tariff barriers were stalling East Africa`s preparedness to participate in broader global trade.
Addressing members of the business community and diplomatic corps at the launch of the East African Business Climate Index (BCI) report yesterday in Dar es Salaam, CTI Chairman Reginald Mengi said NTBs were a major impediment that needed to be addressed.
“Let us all – the government in partnership with the private sector institutions – stand firm in our resolve to eliminate NTBs in the region,” Mengi said.
He said that experience from many regional economic blocs had shown that NTBs, which were the main index of the survey, often replaced tariffs as partner states continued to protect their markets.
He added that experience had also revealed that NTBs in regional groupings had more adverse effects on trade than tariffs.
“It is against this background that I wish to commend the East African Business Council for its initiative to undertake the East African Climate Index,” the CTI chairman said.
BCI study findings would enable identification of the nature and extent of NTBs in the region with a view to analysing and monitoring their prevalence and their impact on trade and other businesses, he added.
“The outcome of the survey should be used to discourage member-states from applying NTBs to protect their markets, as protectionism goes against the main objective of the Customs Union: that of promoting trade within the region,” Mengi noted.
Referring to the BCI report, the CTI boss said the document revealed that NTBs did exist and adversely affected business operations in the region.
He further noted that the existence of NTBs was widely acknowledged by both business enterprises and government institutions.
The chairman of the East African Business Council (EABC), Hirji Shah, said the BCI report was not just a premier study of its kind in the region, but also one that was tailored towards improving business conditions.
'It is specifically tailored towards improving the conditions of doing business in East Africa, especially after the historical launch of the East African Community Customs Union earlier this year,' said Shah.
The EABC chairman also stressed that the elimination of NTBs still portended the biggest challenge for the three East African countries in their push to integrate their economies.
“The incidence of corruption is still high at the borders, the licensing procedures are still lengthy and bureaucratic, the police checks are still frequent and cases of harassment are increasingly being reported, yet the border crossing charges are still being levied,” he noted.
Having identified the barriers, suggested Shah, the most logical follow-up would be to work out a mechanism for monitoring and removing them.
In her keynote address, the Deputy Minister for Trade and Industry, Rita Mlaki, urged EAC and EABC to work together in instituting a mechanism for monitoring NTBs with a view to wiping them out.
“In administering this system, there should be close collaboration between EAC and the respective governments,” said Mlaki.
She assured the business community in the country that Tanzania was keen to continue engaging the private sector in dialogue through CTI and other local and regional bodies.
'We shall continue to enhance the spirit of public-private sector partnership in addressing all the problems that are an impediment to doing business,' she said.
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