Women Participation In Cross Border Trade In East Africa

The Role of The E A C Customs Union Protocol

Cross- Border Trade

    The type of cross border trade practiced across the East African borders is the Informal Cross Border Trade (ICBT). It is not mandatory to submit tax returns at the end of each financial year hence not entered in national accounts. Women constitute the larger proportion of those who practice the small scale cross border trade women continue to face myriad obstacles in informal cross border trade.

Challenges women face in cross border trade

    Poor infrastructure that makes goods expensive leading to less returns to investment- profit margins remain small & traders tend to remain poor.

No uniform regional standards for products Inaccessibility to finance/credit Low literacy levels compounded by lack of access to information related to trade, both domestic and regional

Cross border bureaucracy

    Tedious and time consuming immigration laws that hamper free movement Security procedures are extensive and cause delays increasing costs. 90 day pass permits are an inconvenience to continuous trade Harassment from customs officials and police at the port of entry including men officers doing body search for any hidden goods.

Currency/Exchange

 Many demanding processes of trading with foreign exchange affect women, negatively  Problems with currency exchange due to lack of local currency exchange facilities & enabling monetary policies to convert to the currency of the country in which they would be trading.

Parallel markets- illicit and legal

   No policies or hostile country policies to X-border trade encourages a parallel illicit cross border trade.

Customs officials hostile to even legal trade Tax evasion particularly in illicit trade creates unhealthy competition with those who have paid often punitive taxes.

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EAC Customs Union Protocol

Women do not know essential basics of the Protocol and the opportunities and challenges it poses in their day-to day activities despite the Protocol having provisions that are aimed at accruing financial gains to traders within the Union, particularly women .

Provisions such as a tariff-free environment (Articles 2 & 10), or substantive tax reduction, trade liberalization (Art 3-4), a standard system of valuation of goods based on principles of equity, uniformity and simplicity (Art 4), reduction of trade documentation & adoption of common standards of trade documentation and procedures (Art 6/7), non discrimination of goods/traders among EAC members (Art 15/21), enabling subsidies (Art 17/18), special economic arrangements Art 32)

Recommendations

   Aggressive publicity and dissemination of the EAC Treaty, the Protocol, the Community’s policies and other applicable laws and principles as provided for under Article 39 of the Protocol Involvement of women/other non state actors in formulation & implementation from design to implementation Educate government agencies on protocol and monitor compliance including to requirements of international law/treaties and conventions.