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Global Economic Prospects June 2018

Published on August 16, 2018

GEP_JUNE_2018.JPGThe Global Economic Prospects June 2018 is a report by the World Bank Group. It asserts that the global economy seems to be leaving the legacy of the global financial crisis of the past decade behind. About half the world’s countries are experiencing an increase in growth. All the consensus forecasts for 2018 and 2019 reflect optimism. Yet, while current growth appears robust, potential growth will be lower. Underlying factors such as demographics (declining labor supply in many, large countries) and the legacy of low investment growth in the past contribute to this limited potential growth. These risks mean that actual growth may be even lower. 

This edition of Global Economic Prospects includes sections on the role of the largest emerging markets in global commodity markets and the implications of high corporate debt for financial stability and investment.

2018 Biennial Report on The Implementation Of The African Growth And Opportunity Act

Published on July 19, 2018

AGOA_Report.JPGThe 2018 Biennial Report on The Implementation Of The African Growth And Opportunity Act is a report prepared by the Office of the United States Trade Representative. The report provides a description of the status of trade and investment between the United States and sub-Saharan Africa, changes in country eligibility for AGOA benefits, an analysis of country compliance with the AGOA eligibility criteria, an overview of regional integration efforts in sub-Saharan Africa, and a summary of U.S. trade capacity building efforts.

Impact of Technical Regulations on Intra-regional Trade: The Experience of Ugandan Pharmaceutical Firms

Published on July 12, 2018

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The Hub highlights the impact of technical requirements and standards on businesses within the East African Community (EAC) in a case study that examines how private sector pharmaceutical firms in Uganda are complying with regulations set by the T
anzania Food and Drug Authority (TFDA). The study reveals that to access the Tanzanian market, medicines certified by the EAC Partner States’ institutions are subject to (i) lengthy, cumbersome and duplicative registration requirements; (ii) costly registration fees; (iii) discrimination (i.e. EAC products and manufacturers are not recognized as “domestic” in Tanzania Regulations); and (iv) a lack of recognition of their countries’ standards. These regulations impose costs upon businesses and impede the flow of goods across borders, detracting from the EAC's push for integration and violating the WTO Technical Barriers to Trade (TBT) Agreement. The study recommends that Tanzania eliminate its registration requirements and calls for further harmonization of drug registration policies and standards among EAC Partner States.

EAC COMMON MARKET IMPLEMENTATION Impact of Container Cash Deposit Requirement in Kenya: The Case of Private Sector Firms in Rwanda

Published on July 05, 2018

To highlight the impact of Mombasa Port container cash charges on regional trade and business, the Hub created the following case study focused on Rwanda private sector firms. The study demonstrates the need for a solution to the cash deposit requirement in order to reduce the cost of doing business. The study reveals long administrative time gaps between claim submission and deposit recovery that impact on business cash flow and adds financial burdens, particularly to smaller freight forwarders. It also leads to an increase in operational costs that are ultimately passed on to consumers. The study further reveals how the utilization of a guarantee scheme has enabled some of the firms to reduce costs.

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Implementation of Trade Policy Instruments on Rice Trade in the East African Community

Published on June 27, 2018

Rice_Study.JPGImplementation of Trade Policy Instruments on Rice Trade in the East African Community is a study by the USAID East Africa Trade and Investment Hub. This study highlights the impact of EAC trade policy instruments, including Common External Tariffs (CET) on sensitive products, stay of application of the CET, duty remission scheme and application of waivers for food security concerns on Tanzania’s rice trade in the region. It also reveals variance in applicable duty rates on rice as a sensitive product across some of the EAC Partner States.

Impact of Non-Implementation of Revised EAC Rules of Origin 2015- The Case of Motor Vehicle Assemblers in Kenya

Published on June 18, 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.

Supporting Small-Scale Cross-Border Traders across Africa

Published on June 14, 2018

Bridges_Africa_June_2018.JPGSupporting Small-Scale Cross-Border Traders across Africa is the theme topic in this month’s Bridges Africa issue, published by the International Centre for Trade and Sustainable Development (ICTSD).

This issue focuses on small-scale cross-border trade and its tremendous potential despite challenges posed by its informal nature. It emphasizes that ongoing trade facilitation interventions need to cater for the needs of small-scale traders, especially women. Governments and development partners are currently making concerted efforts to facilitate trade, increase productivity in export-oriented sectors, and improve competitiveness. However, these need to be better targeted to ensure that small-scale cross-border traders are reached by these interventions and that it is not just large traders who benefit.

Ethiopia Economic Update

Published on June 06, 2018

Ethiopia_Economic_Update.JPGThe Ethiopia Economic Update is a publication by the World Bank. It discusses Ethiopia’s growth strategy, emphasizing the sustainability of the country’s investment-focused and export-led growth model.

The publication also looks at the interlinkages between manufacturing and services, with a special focus on the role of distribution services in promoting Ethiopia’s export competitiveness and eventually its structural transformation.

Tanzania Investment Policy Assessment 2018 Presentation

Published on May 24, 2018

Tanzania_policy_assesment.JPGThe Tanzania Investment Policy Assessment 2018 was launched by the USAID East Africa Trade and Investment Hub. The Assessment will help public and private sector stakeholders press for policy reforms to stimulate, protect and retain foreign investment in the country. The Assessment details how Tanzania's legal environment facilitates, or in some cases impedes, investment opportunities. It also provides potential roadmaps for reform by highlighting international best practices in foreign investment regulation.

SPS Capacity Building Manuals for EAC Partner States

Published on May 24, 2018

SPS_Manual_intro.JPGSanitary and Phytosanitary (SPS) Capacity Building Manuals for East Africa Community (EAC) Partner States are publications by the USAID East Africa Trade and Investment Hub. Recognizing the importance of SPS measures in regional and international trade, EAC partner states developed and signed the EAC SPS Protocol which provides a legal basis for resolving the SPS-related constraints to intraregional trade. To identify the SPS capacity needs, priority activities were formulated through stakeholder engagements at both national and regional levels. Among these activities were separate trainings for plant health, animal health, and food and feed safety.

The highlight of the trainings was the review of SPS official controls which include the legal, regulatory and institutional arrangements for the assessment and management of risks and for inspection and other procedures to determine compliance with the measures. As a result, the USAID Hub developed six manuals that explain what official controls are, the organization that competently applies, supervises or verifies these controls, the World Trade Organization (WTO) rules, international standards and East African Community (EAC) instruments for such controls. The manuals are as below:

  1. Risk assessment training manuals
  2. Laboratory training manual in Business Planning
  3. Manual for training on the development of national residue monitoring and control plans
  4. Animal health official controls training manual
  5. Food and feed safety official controls training manual
  6. Plant health official controls training manual