Elimination of Non-Tariff Measures under AfCFTA: Implication for Trade Facilitation and Food Sector Development in East African Community

Abstract

Eliminating non-tariff measures (NTMs) is an important step toward facilitating trade and enhancing economic integration within the East African Community (EAC). This paper analyzes the effects of removing non-tariff measures on the growth of the food sector in the East African Community under the African Continental Free Trade Area framework. A mixed-methods approach incorporating the Gravity Model of Trade and the Trade Facilitation Index (TFI) is employed to quantify the effects of NTMs on trade flows, efficiency, and economic growth. The analysis relies on secondary data from various sources, including the World Bank, UNCTAD, FAO, and the EAC Secretariat, covering the period from 2010 to 2024. The findings indicate that NTMs previously reduced intra-EAC food trade by up to 40%, and their elimination is projected to increase trade by 42%. In addition, small and medium-sized enterprises (SMEs) have been significantly affected by compliance costs and regulatory barriers. However, disparities remain, particularly in digital trade facilitation, where Tanzania lags behind Kenya and Rwanda. Based on these findings, the following policy recommendations are proposed: adopting digital trade platforms, reducing compliance costs for SMEs, strengthening infrastructure investments, and improving trade finance mechanisms. These measures will allow EAC member states to leverage AfCFTA and develop a more integrated, competitive, and resilient food sector.