The impact of non-tariff barriers on maize and beef trade in East Africa

The East African Customs Union was established in 2005 with the aim of increasing intraregional trade. The Customs Union protocol commits member states to eliminate non-tariff barriers (NTBs) to intraregional trade. However, several NTBs are still applied by member states. This study identifies the existing NTBs on maize and beef trade and quantifies their impact on trade and welfare of EAC citizens using a Spatial Equilibrium Model (SEM). Data on NTBs were collected from traders and transporters of maize and beef cattle in East Africa. Roadblock checks, bribes and custom rules and procedures were identified as the main NTBs to trade. The SEM model shows that a 50% reduction of the cost of NTBs, or their complete elimination would improve social welfare in EAC. The study recommends: removal of the NTBs; improved efficiency in administrative procedures; and establishment of a monitoring system to track the effectiveness of implemented initiatives to remove barriers to trade