Truck Border Crossing

Non-tariff barriers dog EAC

DAR ES SALAAM, Tanzania – The East African Community (EAC) has been advised to set a target for intra-EAC trade growth for this year of 15% by promptly eliminating Non-Tariff Barriers (NTBs).

Peter Kiguta,  the Director General Customs and Trade at the EAC Secretariat was speaking at the 16th EAC Regional Forum on NTBs held recently.

He suggested the Chairpersons and Co-Chairpersons of National Monitoring Committees (NMCs) to exchange their contacts in order to redress NTBs when reported instead of waiting for the Regional Meetings. Read more: 

Hong Kong at evening

Protests raise fears for Hong Kong banking sector

PEERING down from their gleaming tower blocks at pro-democracy activists on the streets, Hong Kong’s bankers and traders cannot help but worry that the island’s financial community will pay a heavy price if the city further infuriates Beijing. Hong Kong lives with the threat that its crucial role as China’s biggest yuan hub will become diminished as business flows to the mainland’s growing financial centres, Shanghai and Shenzhen.The past week has seen the strongest protests yet in the former British colony against Beijing’s control. The idea that Hong Kong could become a hotbed of social discontent raises questions for bankers about how long the city can expect to receive the special treatment that has helped it to generate enormous business from China’s strategy of internationalising the yuan. Read more: 

 

Britain’s Free-Trade Case Against Europe

“The elemental case for secession is an economic one: The EU is taxing and regulating itself into irrelevance. When we joined in 1973, Western Europe accounted for 36% of global GDP. Today it’s 23% and in 2020 it will be 15%. ” Daniel Hanna, a member of the European Parliament said in his article Britain’s Free-Trade Case Against Europe published with Wall Street Journal. Political and social resistance to free trade agreement and market liberalization remain a major challenge to European Economy.  The world is recovering while the EU is not.   Read more:

 

 

 

 

Unfriendly Trade Policies Hinder Progress

Daily, millions of women in Africa are engaged in one form of trade or another, either within their countries or across national borders. They buy and sell everything, from agricultural produce to manufactured products. It is mostly women who conduct cross-border trade, delivering goods and services, reports the World Bank. Informal trade from women also account for between 20% and 75% of total employment in most countries, according to the interagency network. For example, within the Southern African Development Community region, informal cross-border trade, mostly in processed and unprocessed food, constitutes between 30% and 40% of the total trade volume annually. However, in many occasions, women are not treated equally which still significantly hinders trade liberalization in Africa. Read more:

 

 

 

Partner Story: Challenges Facing Long Distance Trucking Industry in East Africa Community

Despite recent economic growth in the East African Community (EAC), freedom to trade across borders remains stifled. The main trade barriers are extraneous transportation costs, particularly caused by corruption, bureaucratic time delays, and poor border infrastructure. If costs do not decrease soon, East African GDP growth will stall. To transport a 20-ton container from Mombasa to Nairobi costs $1,300, while a similar container from Mombasa to Kampala and Kigali costs $3,400 and $6,500 respectively. This is more than double the $1,200 one would incur to ship the same goods from Japan to Mombasa. What are blocking EAC’s way to prosperity? How long would EAC still have to wait to realize true freedom to trade regionally? Read more:

S.Africa’s Intention to Impose Export Taxes Raises Concern

In South Africa the government plans to impose an export tax on key mining resources such as platinum group metals and iron ore. Although the aim is to increase the declining prices of these resources, the tax will pose a casino online destabilizing expense. Already policy shifts have characterized the industry with uncertainty, steering away investment and innovation. Increasing the distribution costs will only slow the development of the mining industry, and in consequence, put many out of work. Read more:

EAC Urged to Toughen on Trade Restrictions

Experts say the East African Community (EAC) should stop treating trade restrictions and government interventions, which distort markets, as a diplomatic matter. Food security in particular remains an issue for EAC countries. While policy makers find themselves caught between consumer and producer interests, people are starving. Protectionist policies and trade barriers have hiked food prices and government efforts have done little to alleviate the problem. Read more:

Probe By Indian Intelligence Agencies Termed a Major Non-Tariff Barrier

Inquiries from Indian intelligence agencies have slowed trade and deterred potentially profitable exchanges between India’s trade partners including Pakistan. Probing by Indian intelligence has clogged the pathway of both imported and exported goods, mainly for small businesses and traders, including those trading vegetable and produce. The extent of trade complexity is evident though the onion shortages in India. Meanwhile, the screening processes shows preference to the influential and huge business groups in India. Read more:

Hacking Case Belies U.S., China’s Love-hate Relationship

The Justice Departments indictment last week of five Chinese military officials charged them with trying to pilfer confidential information from American companies. But even some of the alleged U.S. corporate victims of the hackers have little incentive to cheer any trade rupture with China. China may be trying to steal trade secrets from U.S. businesses, as federal prosecutors allege. Yet for many U.S. companies, China’s vast market remains an irresistible source of business. Read more: