Trade disputes complicate integration in East Africa

Significance

However, in July, tensions resurfaced after Kenya increased fees on Ugandan fuel imports through Mombasa port, reigniting one of the core points of disagreement. Since 2023, there has been a notable resurgence of non-tariff barriers (NTBs) affecting trade in the East African Community (EAC), which has resulted in multiple disputes.

Impacts

• Governments face countervailing pressures from those that stand to lose or gain from free trade or NTBs, which will fuel policy volatility.
• Some countries will seek to diversify trade within and outside the region to limit exposure to specific trade conflict risks in the EAC.
• Enhanced collaboration between respective national institutions could help mitigate the recurrence of disputes based on technical grounds.