For the third time East African member states failed to come to any agreement on a common tariff for goods entering the region. The first two meetings were held in Kigali and Dar es Salaam in March and April this year respectively. At the third meeting held recently in Entebbe Uganda, members continued to maintain their hard-line positions on how they expect the three-band tariff structure to be amended casting doubts on the proposed review of the Common External Tariff (CET). Member states have now gone back for further consultations in their home countries. Talks are expected to resume in October. In February this year, the EAC Heads of State had directed the Council of Ministers to harmonise the CET within three months. The Implementation of the new tariff structure has been pending for two years
The main contention revolves around the type of goods and number of tariff bands to be included in the new structure. As of now, finished goods imported into the regional bloc attract a duty of 25 percent, intermediate goods 10 percent and raw materials 0 percent, under the EAC’s three-band tariff structure which came into effect in January 1, 2005. Items such as sugar, wheat, rice, garments, and milk which attract higher duty of above 25 percent, are classified under a list of sensitive items to protect local industries from competition. It was felt that the excessive protection granted to sensitive goods should be removed and the products opened to competition.
