Women Participation In Women Participation In Cross Border Trade In Cross Border Trade In

East AfricaEast Africa

The Role of The E A C The Role of The E A C Customs Union ProtocolCustoms Union Protocol

Cross- Border Trade Cross- Border Trade

The type of cross border trade practiced The type of cross border trade practiced across the East African borders is the across the East African borders is the Informal Cross Border Trade (ICBT). Informal Cross Border Trade (ICBT).

It is not mandatory to submit tax returns It is not mandatory to submit tax returns at the end of each financial year hence not at the end of each financial year hence not entered in national accounts. entered in national accounts.

Women constitute the larger proportion of Women constitute the larger proportion of those who practice the small scale cross those who practice the small scale cross border trade border trade

women continue to face myriad obstacles women continue to face myriad obstacles in informal cross border trade. in informal cross border trade.

Challenges women face in cross Challenges women face in cross border trade border trade

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

No uniform regional standards for No uniform regional standards for productsproducts

Inaccessibility to finance/creditInaccessibility to finance/credit Low literacy levels compounded by Low literacy levels compounded by

lack of access to information related lack of access to information related to trade, both domestic and regional to trade, both domestic and regional

Cross border bureaucracyCross border bureaucracy

Tedious and time consuming immigration Tedious and time consuming immigration laws that hamper free movementlaws that hamper free movement

Security procedures are extensive and Security procedures are extensive and cause delays increasing costs. cause delays increasing costs.

90 day pass permits are an inconvenience 90 day pass permits are an inconvenience to continuous trade to continuous trade

Harassment from customs officials and Harassment from customs officials and police at the port of entry including men police at the port of entry including men officers doing body search for any hidden officers doing body search for any hidden goods. goods.

Currency/ExchangeCurrency/Exchange

Many demanding processes of Many demanding processes of trading with foreign exchange affect trading with foreign exchange affect women, negativelywomen, negatively

Problems with currency exchange Problems with currency exchange due to lack of local currency due to lack of local currency exchange facilities & enabling exchange facilities & enabling monetary policies to convert to the monetary policies to convert to the currency of the country in which they currency of the country in which they would be trading. would be trading.

Parallel markets- illicit and legal Parallel markets- illicit and legal

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

Customs officials hostile to even legal Customs officials hostile to even legal trade trade

Tax evasion particularly in illicit trade Tax evasion particularly in illicit trade creates unhealthy competition with those creates unhealthy competition with those who have paid often punitive taxes. who have paid often punitive taxes.

EAC Customs Union ProtocolEAC Customs Union Protocol Women do not know essential basics of the Protocol and Women do not know essential basics of the Protocol and

the opportunities and challenges it poses in their day-to-the opportunities and challenges it poses in their day-to-day activities despite the Protocol having provisions that day activities despite the Protocol having provisions that are aimed at accruing financial gains to traders within the are aimed at accruing financial gains to traders within the Union, particularly women .Union, particularly women .

Provisions such as a tariff-free environment (Articles 2 & Provisions such as a tariff-free environment (Articles 2 &

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

RecommendationsRecommendations

Aggressive publicity and dissemination of Aggressive publicity and dissemination of the EAC Treaty, the Protocol, the the EAC Treaty, the Protocol, the Community’s policies and other applicable Community’s policies and other applicable laws and principles as provided for under laws and principles as provided for under Article 39Article 39 of the Protocol of the Protocol

Involvement of women/other non state Involvement of women/other non state actors in formulation & implementation from actors in formulation & implementation from design to implementationdesign to implementation

Educate government agencies on protocol Educate government agencies on protocol and monitor compliance including to and monitor compliance including to requirements of international law/treaties requirements of international law/treaties and conventions.and conventions.