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                WTO to East Africa: Improve Your Infrastructure

   by Mohammed Yusuf

   World Trade Organization (WTO) Director-General Pascal Lamy said East
   African governments must improve roads, ports and trade procedures if
   the region is to meet its full economic potential.  He said
   specifically that border administration must be improved and there has
   to be cross-border recognition of technical standards.
   The call of the WTO chief comes as trade partners across the globe meet
   in Geneva to negotiate a new World Trade Organization agreement that
   will harmonize and streamline customs operations.
   Speaking to reporters in Nairobi Thursday, WTO Director Lamy said the
   five-nation East Africa Community is doing well in facilitating trade,
   but that the cost of moving goods across borders is too high.
   "There is a huge amount of work to do, when you look at the cost of
   moving a container from Mombasa to Kigali or from Dar es Salaam to DRC
   [Democratic Republic of Congo] and you measure the relative cost,
   transport moving along borders.  Still there is a huge amount of
   efficiency to gain, which will directly benefit to the development of
   these regions," he said.
   Frank Matsaert, head of Trademark East Africa, a regional trade
   organization, acknowledged the cost of transporting goods across
   regional borders must be brought down.
   "The big challenge for us in east Africa is reducing the high cost of
   doing business across our borders and we at Trademark East Africa are
   very committed to bringing down those costs by 15 percent and
   increasing trade," said Matsaert.
   According to Tanzania Economic Update published by the World Bank,
   Tanzania and Kenya could boost their annual gross domestic product by
   up to $1.8 billion and $830 million respectively by taking measures to
   improve the efficiency of the ports of Dar es Salaam and Mombasa.

   However, WTO Director Lamy said upgrading of ports might not improve
   trade if the roads are bad.
   "It's fine to improve the operation of the port of Dar es Salaam or
   Mombasa, but if upstream road transport is clogged it won't have any
   impact on trade and it's great to do both a port and upstream road
   link," he noted.
   Apart from needed infrastructure improvements, east Africa states have
   historically been reluctant to surrender their nation's interest for
   the greater interest of the East African Community.
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   [1]http://www.voanews.com/content/wto-to-east-africa-improve-your-infra
   structure/1666978.html

References

   1. http://www.voanews.com/content/wto-to-east-africa-improve-your-infrastructure/1666978.html