(DTIS) Update, Volume 1 – Main report - Enhanced Integrated ...

Mainstreaming of trade into national growth and development strategies has proven difficult.Mainstreaming at the policy, the institutional, and the international cooperation levels is incomplete andremains a high priority action. In line with most actions related to the macroeconomic environment,Burundi has made some progress with the development of a trade strategy. For example, the promotionof the export sector and improvement of the investment framework have been identified as keycomponents of Burundi’s first national Poverty Reduction Strategy Paper (PRSP I). The second PRSPalso mentions the objective to develop a National Export Promotion Strategy and, contrarily to previousstrategic documents adopted by the Government of Burundi, it explicitly recognizes the importance ofregional integration for trade and growth, and particularly the challenges and opportunities arising fromEAC membership. The Government’s long-term development strategy adopted in 2010, “Vision Burundi2025”, also emphasizes regional integration as one of its 8 pillars, even if it remains general (Republic ofBurundi 2010a). However, Burundi still lacks a coherent and pragmatic strategy for trade and regionalintegration matters (the development of a regional integration strategy is expected in the second half of2012). Mainstreaming of trade into national policy – defined as the process of integrating trade intonational and sectoral development planning, policymaking, implementation and review in a coherent andstrategic manner – remains incomplete. For example, the PRSP II only dedicates half a page to externaltrade. While it refers to the DTIS update and affirms the necessity to implement its Action Matrix, itdoes not specify how the stagnation of trade is linked to other development challenges faced by thecountry, or what could be the impact of improved trade performances on growth, employment andpoverty reduction. Additional work will therefore be required to mainstream trade into national growthand development strategies.Section 2: Trade policyMost actions related to the removal of tariff barriers in the COMESA context have beenaddressed. Given the numerous development affecting Burundi’s trade since 2004, this section needs tobe updated to reflect Burundi’s membership in complex multiple regional agreements such as the EAC,the COMESA, the Economic Community of Central African States (ECCAS), and the EconomicCommunity of the Great Lakes Countries (CEPGL), among others. The large deficit of technical andinstitutional capacity must be taken into account, as well as the need to coordinate policies and programsin Eastern and Southern Africa, under the aegis of the Tripartite arrangement between the three mainregional economic communities (RECs), COMESA, EAC and the Southern African DevelopmentCommunity (SADC). Furthermore, the consistency of Burundi’s negotiation strategy and commitmentsin different forums at the multilateral and regional level, as well as in the framework of the EPA betweenthe EAC and the EU, must also be addressed.Section 3: Trade facilitationThe trade facilitation interventions prioritized in the 2004 Action Matrix related mostly to customsand border management. These interventions are: (i) preparing an action plan on regional transit issueswith neighboring countries; (ii) designing a program of action on customs tariffs and valuation; (iii)implementing a customs reform program to conform to international obligations; (iv) finalizing anaccord on trade facilitation, in consultation with donors; and (v) facilitating the digital exchange of databetween agencies involved in trade facilitation.Burundi has made good progress in implementing the matrix as far as trade facilitation isconcerned. Some of the notable achievements were the following: A trade facilitation action plan was prepared that makes a clear distinction between what Burundican do alone and what it has to work on with its neighbors, especially at the ports of Dar es Salaamand Mombasa-Mpulungu. Cooperation has concentrated in particular on improving road corridorsand the creation of one-stop border posts. The issues of transit and movement of goods are now37 / 153