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

To-date, the approach to eliminateNTBs has focused on establishingNational Monitoring Committees(NMCs) and publicizing specificNTBs, but without sufficientattention paid to the actualreduction efforts. As highlighted inWorld Bank (2012a), “the absenceof a clearly defined monitoringmechanism with time limits foraction means each Partner State isresponsible for voluntarily removingor reforming listed NTBs withoutbeing subject to possible sanctionsfor non-compliance.”Number ofIdentifiedNTBsFigure 2.4: More NTBs identified, and more timegiven for removal1614121086420Given the limited progress made at the EAC-level, bilateral negotiations on NTB-removal haverecently been initiated by member states, notably landlocked ones. For example, Rwanda has starteddiscussing the matter with Uganda in January 2012 and is expected to launch similar exchanges withBurundi and Tanzania. In order to benefit from the removal of NTBs imposed by its EAC partners,Burundi should develop a clear understanding of the most detrimental measures faced by Burundianoperators in East Africa and adopt a proactive attitude in the EAC negotiations on NTBs. In parallel, asargued in Chapter 4, it will also have to make progress towards the elimination of the NTMs and NTBs itmaintains on the domestic market.3.2. Political economy issues and institutional failures limit the provision of efficient regionalpublic goodsInappropriate standards can stifle intra-regional trade. The development of standards may bedesirable at a regional rather than national level, in order to exploit economies of scale in regulatoryexpertise, prevent fragmentation of the market by differences in standards, and limit the scope forregulatory capture. However, it is important to tailor those standards to the specific preferences, needsand capacity of regional actors, in order to avoid non-compliance and unnecessary implementation costs(see box 2.1).Box 2.1: Case Study – Harmonized EAC Standards as a Potential Trade Barrier20082010A B C DEAC 4 Categories of NTBsSource: World Bank analysis of Draft EAC Time boundProgramme for Elimination of Identified versions 2008 and 2010Dairy sector: In 2006, the EAC adopted harmonized dairy standards for eight categories of product thatfollow the international Codex Alimentarius standards for dairy almost verbatim. The EAC standardstherefore assume that consumer incomes and production infrastructure are equivalent with Westernlevels, which is obviously not the case in East Africa.Consistent with developed country norms, the newly EAC standards focus on pasteurization as the keyto ensuring product safety. This technology is widespread in developed countries but is difficult andexpensive to apply in the context of smallholder dairying, which is the dominant form of production inEast Africa. While smallholders in Africa can and do supply perfectly good raw milk for pasteurization,the infrastructure and quality control systems needed for delivery of smallholder supplies to a processingplant results in consumer prices that are four to five times higher than for raw milk traded throughinformal channels.Moreover, consumers in East Africa have found an alternative to reducing health hazards not recognizedin the EAC standards, which is to consume raw milk after boiling. This practice reduces the otherwisehigh bacteria levels found in East African milk to safe levels, a point not recognized during the49 / 153