Trade Effects of the East African Community

Abstract

This article evaluates the trade effects of the new East African Community, which fosters trade liberalisation among Kenya, Tanzania and Uganda. The analysis uses a disaggregated approach at the two-digit level of the Standard International Trade Classification. The commodities that will be particularly affected by the customs union are identified. The results show that considerable trade effects cannot be expected, except for a very narrow range of products. The transitional fund, which has been proposed to counter trade imbalances due to the new customs union in East Africa, becomes less urgent from this perspective.

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