EAC ombudsman to iron out trade rows

A new regulator or ombudsman for regional trade disputes with powers to investigate and address unfair trade practices and subsidies will begin operating at the end of this year.

East Africa Community (EAC) Secretary- General Peter Mathuki said the Trade Remedies Committee (TRC) will assist businesses in the bloc's five-member States when they have concerns over unfair trade deals from foreign rivals.

Spats among member States have in recent times almost paralysed trade and led to huge losses incurred by traders.

“We are in the process of setting up the Trade Remedies Committee to deal with matters including rules of origin, anti-dumping measures and subsidies. It is our hope that it will be in place before the end of the year,” Mr Mathuki said.

The committee will, for instance, investigate an unexpected surge in imports of a particular product and take steps to prevent harm to domestic industry by imposing temporary safeguard measures.

Businesses can also complain to the team about competition from imports, which are unfairly subsidised by foreign governments, or about the ‘dumping’ of goods in the EAC markets.

Dumping is where goods are sold at below their usual price in the exporting country.

Experts had warned the delay of the EAC to effect the TRC was negatively affecting the business community, prolonging resolution of trade disputes and impacting on intra EAC trade.

TRC will investigate any complaints and make recommendations to government ministers for corrective anti-subsidy or anti-dumping measures that could be imposed to address any injury caused to the domestic industry in question.

According to the EAC Trade and Investment Report 2016, intra- EAC exports declined from $3.2 billion in 2015 to $2.6 billion in 2016 representing 17.4 percent drop due to an inadequate trading regime which restricts the export of certain commodities to partner states.

Lack of product diversification and existence of non-tariff barriers have also continued to affect intra-regional trade among other factors.

The new authority is, therefore, seen as a welcome boost for regional businesses in fast-tracking dispute resolution and supporting smooth trade in the EAC trading bloc.

In the latest flare up of a trade spat involving EAC member states, Uganda recently protested a 79 percent cut on its scheduled sugar exports to Kenya, reigniting trade disputes between the two neighbouring states.