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

Author

Listed:
  • Karugia, Joseph Thuo
  • Wanjiku, Julliet
  • Gbegbelegbe, Sika
  • Nzuma, Jonathan M.
  • Massawe, Stella
  • Macharia, Eric
  • Freeman, H. Ade
  • Waithaka, Michael M.
  • Kaitibie, Simeon
  • Gulan, Ayele

Abstract

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.

Suggested Citation

  • Karugia, Joseph Thuo & Wanjiku, Julliet & Gbegbelegbe, Sika & Nzuma, Jonathan M. & Massawe, Stella & Macharia, Eric & Freeman, H. Ade & Waithaka, Michael M. & Kaitibie, Simeon & Gulan, Ayele, 2009. "The impact of non-tariff barriers on maize and beef trade in East Africa," 2009 Conference, August 16-22, 2009, Beijing, China 51672, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51672
    DOI: 10.22004/ag.econ.51672
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    References listed on IDEAS

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    1. Delgado, Christopher L. & Minot, Nicholas & Tiongco, Marites M., 2003. "Evidence And Implications Of Non-Tradability Of Food Staples In Tanzania 1983-1998," 2003 Annual meeting, July 27-30, Montreal, Canada 22102, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Stephen Devadoss & Angel H. Aguiar & Steven R. Shook & Jim Araji, 2005. "A Spatial Equilibrium Analysis of U.S.–Canadian Disputes on the World Softwood Lumber Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(2‐3), pages 177-192, June.
    3. Weliwita, Ananda & Nyange, David & Tsujii, Hiroshi, 2002. "Food Demand Patterns in Tanzania: A Censored Regression Analysis of Microdata," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 5, pages 1-28.
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    Cited by:

    1. Mkuna, Eliaza, 2014. "East Africa Community (Eac) Non Tariff Barriers And Their Effects On Tanzanian Small And Medium Agro Enterprises Cross Border Trade," Research Theses 265576, Collaborative Masters Program in Agricultural and Applied Economics.
    2. Na Hao & Peter Pedroni & Gregory Colson & Michael Wetzstein, 2017. "The linkage between the U.S. ethanol market and developing countries’ maize prices: a panel SVAR analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 48(5), pages 629-638, September.
    3. Kihiu, Evelyne Nyathira & Amuakwa-Mensah, Franklin, 2017. "Improving Access to Livestock Markets for Sustainable Rangeland Management," African Journal of Economic Review, African Journal of Economic Review, vol. 5(2), July.
    4. Olivier Cadot & Julien Gourdon, 2012. "Assessing the price-raising effect of non-tariff measures in Africa," Working Papers 2012-16, CEPII research center.
    5. Mkuna, Eliaza, 2014. "East Africa Community (EAC) Non Tariff Barriers and their Effects on Tanzanian Small and Medium Agro Enterprises Cross Border Trade," Research Theses 243444, Collaborative Masters Program in Agricultural and Applied Economics.
    6. Wanjiku, Julliet & Ogada, Maurice Juma & Guthiga, Paul & Karugia, Joseph Thuo & Massawe, Stella & Wambua, Jonesmus, 2012. "Exploiting opportunities in intra-regional trade in food staples in COMESA region," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126424, International Association of Agricultural Economists.
    7. Olivier Cadot & Julien Gourdon, 2014. "Editor's choice Assessing the Price-Raising Effect of Non-Tariff Measures in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 23(4), pages 425-463.
    8. Jana Riedel & Anja Slany, 2019. "The potential of African trade integration – Panel data evidence for the COMESA-EAC-SADC Tripartite," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(7), pages 843-872, October.
    9. Ayele Gelan & Amos Omore, 2014. "Beyond Tariffs: The Role of Non-Tariff Barriers in Dairy Trade in the East African Community Free Trade Area," Development Policy Review, Overseas Development Institute, vol. 32(5), pages 523-543, September.

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