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Customs Union Protocol: Challenges and opportunities
Ultimately, regional integration cannot succeed if national borders become economic barriers whenever domestic interests conflict. The true measure of the Customs Union will not be the number of protocols signed, but whether East Africans can trade fairly, invest confidently and prosper together, writes Namara Dennis
Namara Dennis. (File)
By: Admin ., Journalist @New Vision
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OPINION
By Namara Dennis
The East African Community (EAC) Customs Union is one of the region’s most important milestones in the journey towards economic integration. Established under the Protocol signed in Arusha, Tanzania, on March 2, 2004, the Customs Union was designed to transform East Africa from a collection of national markets into a more integrated economic bloc, where goods move more freely, businesses compete fairly, and citizens benefit from expanded economic opportunities.
The Protocol recognises that regional integration must go beyond political declarations. It requires practical co-operation in trade, customs administration, investment, industrialisation and the removal of barriers that prevent East Africans from doing business with one another. One of the most visible achievements has been the establishment of one-stop border posts (OSBP).
Traditionally, trucks and travellers crossing national borders underwent separate clearance procedures on either side, resulting in duplication, delays and additional costs. Through the OSBP arrangement, officials from neighbouring countries co-ordinate border formalities at a single facility. This approach has improved the movement of people and goods, reduced paperwork and shortened clearance times. The EAC reported in 2018 that operational OSBPs had reduced border crossing times for travellers and trucks from days to approximately 1.5 minutes and 30 minutes on average, respectively.
The Single Customs Territory has further strengthened these gains by enabling customs duties to be assessed and paid in the destination country while goods are still at their first point of entry. Interconnected customs systems and information sharing have reduced duplicated processes and improved cargo movement along regional transport corridors.
The Protocol also provides a foundation for co-operation in combating smuggling and other customs offences. Joint border management and intelligence sharing can help authorities detect illicit goods, prevent revenue losses, improve security and ensure that legitimate businesses are not undermined by illegal trade.
However, despite these gains, the greatest challenge remains the gap between regional commitments and national implementation. Signing a regional agreement is one thing; translating its obligations into national laws, administrative practices and everyday decisions is another. Article 2 provides for the elimination of internal tariffs, the removal of non-tariff barriers and a common external tariff. Article 13 specifically commits partner states to remove existing non-tariff barriers and refrain from introducing new ones, except where permitted by the Protocol.
Yet, Ugandan traders continue to encounter restrictions that undermine access to neighbouring markets, such as Ugandan maize being denied entry into South Sudan and difficulties encountered by Ugandan egg poultry and maize producers seeking access to the Kenyan market. Whereas some restrictions may be justified, the problem arises when such measures are not sufficiently transparent, are inconsistently applied, lack clear scientific justification or become prolonged without effective regional consultation and resolution.
The Single Customs Territory has further strengthened these gains by enabling customs duties to be assessed and paid in the destination country while goods are still at their first point of entry. Interconnected customs systems and information sharing have reduced duplicated processes and improved cargo movement along regional transport corridors.
The Protocol also provides a foundation for co-operation in combating smuggling and other customs offences. Joint border management and intelligence sharing can help authorities detect illicit goods, prevent revenue losses, improve security and ensure that legitimate businesses are not undermined by illegal trade.
However, despite these gains, the greatest challenge remains the gap between regional commitments and national implementation. Signing a regional agreement is one thing; translating its obligations into national laws, administrative practices and everyday decisions is another. Article 2 provides for the elimination of internal tariffs, the removal of non-tariff barriers and a common external tariff. Article 13 specifically commits partner states to remove existing non-tariff barriers and refrain from introducing new ones, except where permitted by the Protocol.
Yet, Ugandan traders continue to encounter restrictions that undermine access to neighbouring markets, such as Ugandan maize being denied entry into South Sudan and difficulties encountered by Ugandan egg poultry and maize producers seeking access to the Kenyan market. Whereas some restrictions may be justified, the problem arises when such measures are not sufficiently transparent, are inconsistently applied, lack clear scientific justification or become prolonged without effective regional consultation and resolution.
The Protocol itself recognises the need for harmonised standards, including sanitary and phytosanitary co-operation under Article 38. If the Uganda National Bureau of Standards has certified a given product, why wouldn’t Kenya or South Sudan recognise this certificate? The solution is, therefore, not to abandon legitimate health protections, but to harmonise requirements, strengthen certification systems and ensure that restrictions are proportionate, evidence-based and consistent with regional obligations. A deeper challenge is that partner states sometimes prioritise immediate domestic interests over the collective benefits of integration.
Governments may face pressure to protect local industries, conserve foreign exchange or respond to shortages. However, unilateral measures that disregard agreed-upon regional procedures can trigger retaliation, weaken investor confidence and fragment the regional market. This undermines the Customs Union’s wider objectives of promoting investment, improving production efficiency and supporting industrialisation. Also, manufacturers cannot confidently invest in production for regional markets if access to those markets can be interrupted unpredictably.
The Protocol provides mechanisms for addressing these tensions. Articles 35 and 36 provide for measures to address economic imbalances and safeguard against serious injury, while Article 41 commits Partner States to consultation and good-faith implementation of dispute-settlement decisions. These provisions should be used transparently rather than allowing trade disputes to persist at the expense of businesses and citizens.
As the EAC Committee on East African Community Affairs, we will continue pushing for stronger oversight of implementation, faster resolution of non-tariff barriers, harmonised product standards and greater accountability by national institutions. The Customs Union has demonstrated that co-operation can shorten border delays, improve security and expand trade. Its next phase must ensure that a Ugandan farmer, manufacturer or trader enjoys predictable and fair access to the wider East African market.
Ultimately, regional integration cannot succeed if national borders become economic barriers whenever domestic interests conflict. The true measure of the Customs Union will not be the number of protocols signed, but whether East Africans can trade fairly, invest confidently and prosper together.
The writer is the chairperson, Parliamentary Committee on East African Community Affairs
Governments may face pressure to protect local industries, conserve foreign exchange or respond to shortages. However, unilateral measures that disregard agreed-upon regional procedures can trigger retaliation, weaken investor confidence and fragment the regional market. This undermines the Customs Union’s wider objectives of promoting investment, improving production efficiency and supporting industrialisation. Also, manufacturers cannot confidently invest in production for regional markets if access to those markets can be interrupted unpredictably.
The Protocol provides mechanisms for addressing these tensions. Articles 35 and 36 provide for measures to address economic imbalances and safeguard against serious injury, while Article 41 commits Partner States to consultation and good-faith implementation of dispute-settlement decisions. These provisions should be used transparently rather than allowing trade disputes to persist at the expense of businesses and citizens.
As the EAC Committee on East African Community Affairs, we will continue pushing for stronger oversight of implementation, faster resolution of non-tariff barriers, harmonised product standards and greater accountability by national institutions. The Customs Union has demonstrated that co-operation can shorten border delays, improve security and expand trade. Its next phase must ensure that a Ugandan farmer, manufacturer or trader enjoys predictable and fair access to the wider East African market.
Ultimately, regional integration cannot succeed if national borders become economic barriers whenever domestic interests conflict. The true measure of the Customs Union will not be the number of protocols signed, but whether East Africans can trade fairly, invest confidently and prosper together.
The writer is the chairperson, Parliamentary Committee on East African Community Affairs