Download pdf - International Potato Center
Download pdf - International Potato Center
Download pdf - International Potato Center
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
CIP • SOCIAL SCIENCES WORKING PAPER 2010-1<br />
other hand, the lending costs are high. However, liquidity problems limit the scale of individual<br />
trading business, resulting in high costs of operation, high prices and low demand.<br />
4.5.9 The status of trade tariffs in ECA countries<br />
Government policies in the ECA countries are favorable for importations and investments. The<br />
states have established investment promotion agencies to create favorable conditions for<br />
investment. There are also Bureaus of Standards and Quality Control in the countries to control<br />
the qualities and standards of imported goods. This safeguards the health of consumers and<br />
quality of products.<br />
In general, there is favorable trade policy in the ECA region. The existence of Common Market for<br />
Eastern and Southern Africa (COMESA) and East African Community (EAC) trade policy favors<br />
inter-regional trade in goods and services. All the countries covered in this study, with the<br />
exception of Tanzania are members of COMESA and Kenya, Uganda and Tanzania are members of<br />
the EAC. Then, all the study countries are members of either COMESA or EAC or both and this<br />
makes them beneficiaries of inter-regional trade agreements. Trade liberalization program of<br />
COMESA aims to create a single economic space in which there is free movement of goods,<br />
services, capital and labor (Chanthunya, 2004). The EAC also aims at widening and deepening<br />
cooperation among the partner states through policies and programs. In the economic sphere,<br />
the EAC will focus on regional integration of trade and investment policy, monetary and fiscal<br />
policy, and labor and capital markets (Economic analysis paper No. 2.1, 2001). The trade policy<br />
agenda of the EAC aims at turning the three partner countries into a single investment and trade<br />
area, in order to increase the volume of trade among them and with the rest of the world. The<br />
ultimate goal is to promote rapid economic growth and development, generate employment<br />
and uplift the standard of living of the East African people. Eventually, goods, labor, and capital<br />
will move freely among the three countries. EAC has now expanded to include Burundi and<br />
Rwanda, for which policies will have to be developed. This will further enhance easy and free<br />
regional trade.<br />
The government policy in Rwanda is very favorable for importation investment in whatever<br />
business. A Rwanda Investment Promotion Agency (RIPA) has been created to promote<br />
investments by setting up favorable conditions. There exists also the Rwanda Bureau of standards<br />
which controls the quality of imported and exported goods.<br />
Trade tariffs for frozen chips in Ethiopia are treated similarly to those of other products imported<br />
into the country. Importers are expected to pay 30% duty, 15% VAT and 3% withhold tax when<br />
M A R K E T S F O R F R E S H A N D F R O Z E N P O T A T O C H I P S I N T H E E C A 27