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

Public awareness and stakeholders support for regional integration is limited in Burundi. Efforts togather public support and to associate key groups at the onset of the EAC integration process havearguably been too limited. For example, consumers have largely been left out of the EAC and COMESAintegration process, despite the critical importance of their participation (World Bank / IFC 2011).Likewise, more efforts are needed to consult private sector organizations and to take into account theirinterests. Special attention should also be given to SMEs and informal traders, who have specificconstraints and are hardly represented by institutions like the Federal Chamber of Commerce (CFCIB) orthe East African Business Council. All this matters, because commitments made without properconsultations with the stakeholders concerned are likely to translate into implementation challenges, forexample concerning the application of the Community’s Rules of Origin or the adoption of EACstandards. In this regard, the diffusion in the EAC and COMESA of the simplified trade regime for smallscale traders would be a progress. 58 Moreover, consumers are likely to benefit from the regionalintegration of goods and services markets, so associating them to the process could help build supportand balance resistances. Positively, efforts have recently been made by the Burundian authorities toorganize stakeholders’ consultations and a communication campaign on the EAC.There is currently no comprehensive regional integration strategy in Burundi. A regional strategy iscritical to ensure consistency of the various commitments made in different regional negotiations.Integration, notably in the framework of the EAC, is fully underway and substantive results have alreadybeen achieved, but Burundi still lacks a coherent and concrete strategy with a prioritized roadmap foraction. The full implementation by member States of the EAC and COMESA integration agendas willtake several years in all cases, so there is still a strong rationale for Burundi to develop such a strategy.Moreover, the establishment of an efficient institutional mechanism to coordinate and monitor regionalintegration efforts is a sine qua non. In addition to the different public entities concerned, thismechanism should benefit from the involvement of the private sector, civil society and developmentpartners. The DTIS update and the UNDP-MEAC project currently implemented to identify Burundi'skey responsibilities and opportunities vis-à-vis the different integration frameworks should constituterelevant inputs to develop such a strategy. Its elaboration is currently planned for the second half of2012, and should help Burundi in the prioritizing of its numerous regional commitments in the future.5. ConclusionAdvancing regional integration and deepening regional trade would help Burundi mitigateexternal vulnerability and reduce its current account deficit. The regional market also offerssignificant opportunities for export diversification in goods and in services. However, high transportcosts and numerous non-tariff barriers undermine regional integration efforts and limit the benefitsassociated with it, despite great progress on reducing regional tariffs in recent years. Efforts towards theremoval of NTBs and unnecessary NTMs must be intensified, notably by strengthening the institutionalmechanism dedicated to this task and building adequate capacity. Regional integration needs to coverboth goods and services. In the case of Burundi this will require a clear and consistent strategy toparticipate in the negotiations launched in several forums, such as the EAC, COMESA and GATS, andto monitor the implementation of the commitments made. To benefit from increased integration in theEAC and address the associated challenges, Burundi needs to address capacity issues, devise acomprehensive regional integration strategy and raise public awareness about the regional agenda.More efforts are needed to reduce barriers to trade in goods. Although the elimination ofburdensome non-tariff measures (NTMs) and the removal of non-tariff barriers (NTBs) were consideredhigh priority issues in the 2004 DTIS, numerous barriers, such as lengthy customs formalities anddiscriminating administrative procedures, that have a negative impact on trade continue to hinder58See: www.obr.bi/publications/actualites/173-lobr-donne-des-eclaircissements-sur-le-regime-de-commercesimplifie.html53 / 153