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  • #AGOAForum2018 why it matters #LULEA

    Published on June 20, 2018

    The AGOA Forum is coming up in Washington, D.C. on July 11. Until then, look to our blog for stories of how different East African companies are utilizing the African Growth and Opportunity Act (AGOA) to reach the U.S. market and expand their businesses.

    Read the LULEA success story here.

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    USAID Hub releases study on effects of rules of origin on EAC trade

    Published on June 20, 2018

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    Rules of Origin (RoO) affect market access opportunities and can act as a Non-Tariff Barrier (NTB) in terms of the rules defining specific processing requirements. They also influence the ability of firms to fully exploit available preferences under the EAC Common Market Protocol and the EAC Customs Union Protocol as they impact on the cost of producing goods and in turn affect firm competitiveness and trade opportunities.

    The Hub recently concluded a motor vehicle assembly case study to illustrate the costs to business when Rules of Origin are not properly implemented. You can read here. It shows that despite the revised RoO requiring that locally assembled motor vehicles be given preferential treatment in other Partner States, this has not been a reality.

    The study recommends effective implementation and enforcement of RoO to improve the market opportunities through reduction in operational costs and to enable market players to optimize their assembly capacity and create jobs. It also suggests intervention by EAC Organs including sensitization on the crucial role the RoO have in the realization of a common market and the EAC Industrialization Policy. Read more about the study here.

    The USAID Hub promotes a more predictable, transparent and enabling business environment in East Africa, conducive to trade competitiveness and accelerated investment.

    From June 2016 to May 2017 the USAID Hub partnered with the Federation of East African Freight Forwarders Associations (FEAFFA) to build the capacity of shippers and Customs Clearing and Forwarding Agents (CFAs) on how to effectively use the revised East African Community (EAC) RoO which went into effect in November 2015.  The EAC Partner States revised the RoO to simplify them for the business community, to harmonize them with other preferential trade regimes and to provide clarity on the implementation of criteria such as change in tariff heading. The FEAFFA and USAID Hub partnership helped CFAs and shippers, through greater understanding of the revised RoO, harness the opportunities that a preferential trade regime provides.

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    Save the Date: International Floriculture Expo

    Published on June 20, 2018

    On June 25 – 27, the Hub is supporting four members of the Kenya Flower Council and four members of the Ethiopian Horticulture Producer Exporters Association to exhibit at the International Floriculture Expo (IFE) in Chicago, U.S.A. The Expo will provide the Ethiopian and Kenya companies an opportunity to showcase their flowers to U.S buyers and develop trade linkages for potential exports. Both countries now have direct flights to the U.S. and are keen to expand the market for their flowers.

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    The cut flowers industry is an important sector for several countries in East Africa. In Kenya, cut flowers comprise the largest volume of agricultural exports and contribute to 33% of the sector’s gross domestic product (GDP). In Ethiopia, floriculture has contributed to 80% of the foreign revenue earned in horticulture. The countries have made significant inroads into the European market, with Kenya as its top exporter of roses, but both are now eyeing expansion into the U.S. By participating in the IFE, Kenyan and Ethiopian producers can make connections with U.S. buyers to advance this aim.

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    New on our Knowledge Center: Impact of Non-implementation of Revised EAC rules of origin 2015- The Case of Motor Vehicle Assemblers in Kenya

    Published on June 20, 2018

    Motor_Vehicle_Case_Study.JPGImpact of Non-Implementation of Revised EAC Rules of Origin 2015: The Case of Motor Vehicle Assemblers in Kenya is a study by the USAID East Africa Trade and Investment Hub. This study reviews the impact that non-implementation of the East African Community (EAC) Revised Rules of Origin (RoO) 2015 by other EAC Partner States has had on the Kenyan Motor Vehicle Assembly Sector. Rules of origin are the criteria needed to determine the national source of a product. Their importance is derived from the fact that duties and restrictions in several cases depend upon the source of imports.

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