Rédaction Africa Links 24 with DAVIS AYEGA
Published on 2024-03-22 11:33:44
Kenya and Tanzania have reached a significant agreement to eliminate trade barriers, marking a major breakthrough in their trade relationship. This move is expected to strengthen ties between the two East African countries and promote economic growth.
The agreement was sealed by Rebecca Miano, Kenya’s Trade Cabinet Secretary, and Tanzania’s Deputy Minister of Foreign Affairs and East Africa Cooperation, Stephen Byabato, during a meeting in Kisumu. The focus of the meeting was to resolve longstanding trade barriers that have hindered the export of important commodities such as tea, spirits, and timber.
By addressing these barriers, officials anticipate that trade between Kenya and Tanzania will become smoother, leading to increased economic opportunities for both countries. This agreement follows the commitment made by President William Ruto and Tanzanian President Samia Suluhu to strengthen trade ties.
During the meeting, the officials addressed 14 key issues and agreed to harmonize levies, fees, charges, and other conditions affecting trade between the two nations. Both Kenya and Tanzania are members of the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA), which aim to promote regional integration and facilitate trade among member states.
The next step in this agreement will be a follow-up meeting in Tanzania in July 2024 to evaluate the progress made in eliminating trade barriers and enhancing trade relations.
In terms of trade volumes between Kenya and Tanzania, data from the Observatory of Economic Complexity (OEC) shows that the two countries had a strong trade relationship in 2022. Kenya exported goods worth approximately Sh418 billion to Tanzania, with main exports including soap, iron, and medications. Tanzania, on the other hand, exported goods valued at roughly Sh482 billion to Kenya, with main exports including corn, petroleum gas, and kraft paper.
Both countries have seen significant growth in their exports to each other over the years, indicating a positive trend in their trade relationship. With the elimination of trade barriers, it is expected that trade volumes will continue to increase, benefiting both Kenya and Tanzania economically.
Overall, the agreement to eliminate trade barriers between Kenya and Tanzania is a positive step towards strengthening the trade relationship between the two countries and promoting economic growth in the region. By working together to address key issues and harmonize trade conditions, both nations stand to benefit from increased trade opportunities and improved economic cooperation.
Read the original article on Africa News 24
