Technical Barriers to Trade and Performance of Exports in The East African Community

Abstract

Despite notable progress in regional economic integration, the EAC still faces fragmented technical regulations, standards, and conformity assessment procedures that hinder intra regional trade. This study investigates the effect of technical barriers to trade (TBTs) on the export performance of EAC member states from 2002 to 2022, focusing on agriculture and manufacturing, both central to the region’s growth. Using a quantitative panel with annual bilateral trade data for six EAC countries, the analysis applies a gravity model estimated with fixed effects estimator. Unlike prior studies on developed economies or global flows, this research provides the first EAC specific evidence on how TBTs influence export performance across these sectors, offering policymakers context specific insights for harmonization and SME support. Results show heterogeneous, sector specific effects. For overall exports, a 1 percent increase in authorization requirements is associated with a 0.18 percent increase in export value, and a 1 percent increase in labelling requirements with a 0.34 percent increase; by contrast, a 1 percent increase in conformity assessment and certification procedures is associated with a 0.26 percent decrease. In manufacturing, a 1 percent rise in labelling corresponds to a 0.39 percent increase in exports and a 1 percent rise in product registration to a 0.19 percent increase, while a 1 percent increase in conformity assessment is associated with a 0.31 percent reduction. In agriculture, a 1 percent increase in import authorization or licensing is associated with a 1.95 percent increase in export value, and a 1 percent increase in labelling with a 0.37 percent increase, though some product registration shows negative associations (about a 0.33 percent decrease). Policy recommendations include harmonising conformity assessment, pursuing mutual recognition, strengthening quality infrastructure, streamlining risk based procedures, building SME capacity, and creating a consolidated online portal.