Uganda calls for end to discriminatory levies, Protocol violations in EAC trade

Uganda has taken a firm stand at a pivotal meeting of East African Community (EAC) Permanent Secretaries, demanding the immediate removal of all discriminatory excise duties and other levies imposed by partner states on goods originating from within the bloc.

This assertive call, led by Deputy Secretary to the Treasury, Patrick Ocailap, underscores Uganda’s commitment to upholding the foundational principles of the EAC Customs Union Protocol.

During yesterday’s high-level meeting, Ocailap, representing the Government of Uganda, articulated Kampala’s strong objection to charges that undermine the spirit of free trade within the community.

He specifically highlighted instances where EAC partner states have imposed taxes that unfairly target goods from their neighbours.

The aggrieved party, Uganda, specifically pointed fingers at Kenya for its imposition of discriminatory excise duty on Ugandan tiles and certain agricultural products.

This practice, according to Uganda, directly contravenes the established EAC trade framework. The ripple effect of such actions has already been observed, with Tanzania reportedly introducing an industrial development levy, ostensibly in retaliation for Kenya’s discriminatory charges.

“All Member States imposing Excise duties and levies, should immediately remove them on Partner States from East African Community because such acts go against the EAC Customs Union Protocol Articles 10 and 15,” Ocailap unequivocally stated on behalf of Uganda.

Uganda’s demand is not merely a complaint but a call for strict adherence to foundational EAC treaties. The request is firmly rooted in the EAC Customs Union Protocol, which is designed to ensure a seamless flow of goods and services across member states.

Crucially, Article 39 of the Protocol mandates that “the customs law of the Community applies uniformly in the Customs Union, except where the Protocol itself provides otherwise.” This article underscores the principle of a level playing field, where goods from partner states should not face internal tariffs or levies that make them less competitive than locally produced goods.

Such discriminatory practices fundamentally undermine the spirit and letter of the EAC Customs Union. They create non-tariff barriers, distort trade, stifle economic growth within the region, and erode trust among member states.

Instead of fostering seamless cross-border trade and shared prosperity, these levies lead to tit-for-tat retaliations, ultimately harming consumers and producers across the entire bloc.

The EAC was conceived as a powerful engine for regional economic integration, aiming to create a common market that benefits all its citizens.

Achieving this vision requires unwavering commitment to the agreed-upon protocols and a willingness to prioritize collective regional growth over narrow national interests.

Uganda’s intervention at the Permanent Secretaries’ meeting serves as a critical reminder of the commitment required to realize the full potential of the Customs Union.

The onus is now on Kenya, Tanzania, and any other EAC member state found to be imposing similar charges, to align their national policies with the foundational principles of the Customs Union Protocol. Only through the removal of these discriminatory barriers can the East African Community truly unlock its economic potential and deliver on its promise of shared prosperity for all.