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Non-tariff charges on the rise

04 Mar 2025 - by Ed Richardson
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There is an increased focus on non-tariff barriers to trade as the African market is opened up by free trade agreements.The Economic Development Africa Report2024 highlights East Africa, estimating that the average intra-East African Community non-tariff barriers to trade between 2016 and 2021 added 135% to the value of goods. According to the report, NTB costs have risen between interregional economic communities, such as the Common Market for Eastern and Southern Africa (Comesa) and the Southern African Development Community (SADC), as well as between the East African Community (EAC) and the Economic Community of West African States. The average NTB costs for trade between the EAC and Comesa between 2016 and 2021 is estimated at 254%, adding 119 ad valorem equivalent percentage points to the cost of goods traded between the two regional economies compared with goods traded within the EAC. The report attributes the lower costs of intraregional trade to “more harmonious sanitary and phytosanitary measures, shorter transportation times, fewer border formalities, more consistent licensing and documentation requirements, and fewer technical barriers to trade within the regional economic communities”.NTBs include inadequate transport and logistics infrastructure, inefficient border and port management, costly and lengthy customs procedures, and stringent regulatory frameworks, including sanitary and phytosanitary measures.Member states of Comesa, EAC and SADC have been working on growing intraregional trade by reducing restrictions such as non-tariff barriers since 2006.An online NTB reporting mechanism was established, initially with technical and financial support from TradeMark South Africa and later through other funders such as the African Development Bank.The website enables the reporting of NTBs as they occur. Timelines for the resolution of the disputes within 60 days have been agreed on.A 2022 evaluation of the mechanism found that it took on average 1 041 days (2.85 years) to resolve disputes in the specific limitations categories, 873 days or 2.39 years for queries in the sanitary and phytosanitary measures category, and 840 days or 2.3 years on average in the transport, clearing and forwarding category.Specific limitations include exchange controls, quotas, import licensing requirements, minimum import price limits and embargoes. The positive finding of the study was that, although it took much longer than stipulated to resolve disputes, some 93% of the NTB complaints registered on the website were resolved between 2004 and 2020. ER

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