Ministry Of Commerce: Concerned About The 35% Tariff Imposed On Some Commodities By East African Community Countries

The East African community (EAC) countries have decided to increase the import tariff of 35% on some products of non member countries from July 1, 2022, according to the website of vision radio of South Sudan. This is the resolution adopted by the Council of Ministers of the community on May 5 this year.

The member states of the East African community (EAC) have decided to impose high tariffs on important commodities, such as meat and meat products, grains, cotton and textiles, steel, edible oil, drinks and spirits, furniture, leather products, fresh cut flowers, fruits, as well as nuts, sugar and sweets, coffee, dairy products and meat products Tea and spices, textiles and clothing, head gear, ceramic products and paint, etc.

The protocol of the customs union of the East African community (EAC) has established a three-level common external tariff, which imposes 10% on intermediate products, 25% on manufactured goods, and no increase in taxes on raw materials and capital goods.

Kenya, Uganda and Tanzania proposed a common external tariff rate of 35%, while Burundi and Rwanda proposed a common external tariff rate of 30%. South Sudan is one of the least industrialized countries in the region and its position has yet to be determined.

At a time of the global food crisis, the researchers believe, the resolution will have a counterproductive effect on the region, given the limited capacity of local industries to meet strong demand.

Uganda's demand for edible oil is 120000 tons, while its domestic production is 40000 tons, which shows that the country does not have enough capacity to produce and meet local demand for some of its products, according to the newly established economic policy research center of Uganda think tank. The think tank points out that "import tariffs may not have a significant impact on the value of imports, especially for small economies such as Uganda, but will result in welfare losses. This is because tariffs increase the prices of imported inputs, which in turn increase the prices of locally produced goods."