The Effects of East African Community Integration on Trade: The Case Study of Uganda

Abstract

This study sets out to examine the views of Ugandan business elites on the impact of regional integration on Uganda’s trade within the East African Community (EAC) and reflects on how membership in parallel regional economic communities (RECs) impinges on integration rewards for Uganda. Specifically, the views of business elites on the impact of the Customs Union and Economic Union treaties put in place by EAC states have contributed to removing tariff and non-tariff barriers to the free movement of goods and services between member countries. The study employed a qualitative research approach. Semi-structured interviews were conducted with Ugandan business men and women to elicit their views on the impact of EAC integration on tariff and non-tariff barriers to trade in Uganda. It shows that Ugandan business elites believe EAC trade integration has reduced tariff and non-tariff barriers to trade but that significant tariff restrictions remain and need to be addressed. Participants also believed that successful implementation of relevant treaties will significantly boost Uganda’s intra-EAC trade. The main obstacles identified are; multiple memberships, poor funding of regional agencies concerned with implementation of relevant treaties and the persistence of a few specific protectionist practices targeting imports from member states. Ongoing efforts to coordinate inter-economic community trade rules offers a vista for a wider community, which will be of even greater benefits to Uganda and other member countries.