Inter-State Trade Agreements and Its Impact on Trade Relations: Case of Kenya and Tanzania Interstate Agreements, 2010-2020
Loading...
Date
2024-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The East African Community has in the past had good relations although with
occasional challenges among member states. Drawing the case of Kenya and Tanzania,
trade relationship has suffered frequent challenges from economic, ideological,
political, social, legal and environmental factors. Trade relations mostly depend on
multiple factors such as the nature of the two countries’ macroeconomic landscape in
conjunction with other factors like interstate agreements between the two countries.
Nevertheless, limited information exists to substantiate the role of these factors in
influencing trade relations between the two countries, therefore, making it hard for
various stakeholders including the government, business society, and the scholars to
project the future of the two states’ economic affairs and make viable recommendations
on how the relations could be optimized. This study sought to analyse the
interconnection between interstate agreements and economic relations between Kenya
and Tanzania, examined the role of interstate agreements influencing trade relationships
between Kenya and Tanzania and evaluated the extent to which the East African
Community and other inter-state treaties have influenced Kenya-Tanzania trade
relations between the period 2010 to 2020. The study employed a descriptive design,
analyzing both primary and secondary data to yield qualitative and quantitative
findings. Intergovernmental agreements signed between Kenya and Tanzania from
2010 to 2020 positively impacted trade relations by eliminating trade barriers,
facilitating goods and services movement, and reducing border clearance time and
costs. These agreements played a pivotal role in shaping trade relations. The EAC
Customs Union significantly promoted trade among member states by harmonizing
policies, reducing non-tariff barriers, and enhancing infrastructure for cross-border
trade facilitation. Strengthening the EAC Customs Union is imperative through policy
harmonization, non-tariff barrier reduction, and infrastructure enhancement for
seamless cross-border trade. Encouraging private sector participation and investment
in the EAC region, improving transport infrastructure, and standardizing regulations
can further boost regional value chains and trade. Additionally, cross-border promotion
of investment and joint ventures can foster economic growth, while nurturing
innovation and entrepreneurship can spur the development of new products and
services, thus advancing trade relations.
Description
A Project Report Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Arts in International Relations and Diplomacy in the School of Law, Arts and Social Sciences of Kenyatta University, May 2024.
Supervisor
Caroline Wandiri Mwea