July 13, 2012
News Release 12-078
Inv. No. 332-530
Contact: Peg O'Laughlin, 202-205-1819

USITC REPORTS ON TRADE FACILITATION IN THE EAST AFRICAN COMMUNITY

The U.S. International Trade Commission (USITC) today released its report on trade facilitation in the East African Community (EAC), a regional governmental organization that includes Burundi, Kenya, Rwanda, Tanzania, and Uganda.

The investigation, Trade Facilitation in the East African Community: Recent Developments and Potential Benefits, was requested by the U.S. Trade Representative.

As requested, the report summarizes recent trade facilitation developments in the EAC and describes the potential benefits of trade facilitation to the EAC countries, based on empirical studies and the experiences of other developing countries. Highlights of the report follow.

• Trade is growing rapidly among EAC member countries, resulting in higher volumes of goods crossing their borders. In recent years, many African countries, including EAC members, have taken steps to facilitate trade. Improvements in trade facilitation, such as the simplification of customs procedures and improvements to transport infrastructure, enhance countries' ability to compete in international markets.
• EAC countries vary in their level of development, degree of integration into world markets, and success at establishing effective institutions. As a result, each member country faces unique challenges in improving its trade environment. EAC members have had varying levels of success at implementing global best practices for trade facilitation with respect to both border procedures and the condition of transportation infrastructure.
• Efficiency and predictability throughout the trading system reduce time delays and the risks related to uncertainty, thereby lowering costs for both importers and exporters. The benefits are greatest when improvements are made in multiple areas at the same time; for example, when customs administration reforms are undertaken at the same time that transportation infrastructure is upgraded.
• Empirical studies show that trade facilitation decreases costs along the shipping chain, increasing the volume of traded goods. Lower trading costs can result in a host of positive outcomes, including increased trade flows and investment, increases in the share of production for export, more diversified exports, improved tariff collections, and overall economic growth.

Trade Facilitation in the East African Community: Recent Developments and Potential Benefits (Investigation No. 332-530, USITC publication 4335, July 2012) is available on the USITC's Internet site at http://www.usitc.gov/publications/332/pub4335.pdf.

The report may be requested by sending an email to pubrequest@usitc.gov, by calling 202-205-2000, or by writing the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade. The investigations are generally conducted at the request of USTR, the Senate Committee on Finance, or the House Committee on Ways and Means; the USITC may also self-initiate investigations. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.