Kudos to Magufuli and Kenyatta for decision on trade relations

31Jul 2017
Editor
The Guardian
Kudos to Magufuli and Kenyatta for decision on trade relations

DIPLOMATIC and trade relations between the two biggest economies in East Africa have been strained for some time now.

It is now heartening that Tanzania and Kenya   have agreed to lift tit-for-tat bans placed on products imported from both countries, averting the escalation of a potential trade war between the two neighbouring countries that has threatened to derail the East African Community (EAC) regional integration process.

Tanzania relations are bilateral relations between Tanzania and Kenya. Tanzania is a strategic partner of Kenya in many areas, particularly trade, security (military), education, agriculture and energy.

Tanzania maintains a high commission in Nairobi and Kenya in Dar es Salaam. The first high commissions of Kenya in Tanzania and vice versa were opened after the independence of Kenya. However, after the breakup of the EAC in 1977 both countries severed diplomatic ties. The breakup of the first EAC which was founded in 1967 was brought about by ideological differences between Tanzania and Kenya.

 As it was during the cold war African countries were making decisions on whether to become socialist or capitalist. Kenya's founding leader Mzee Jomo Kenyatta was intent on making sure that Kenya wouldn't become socialist and Kenya stuck to capitalism. Tanzania on the other hand championed for Ujamaa, a major African socialist policy. 

Tanzania and Kenya resumed diplomatic ties in 1983.  By that time, a lot of factors were slowing the idea of Ujamaa in Tanzania among them the war with Uganda and many other social factors.  

Today both countries enjoy healthy relations. Both countries are inhabited by the world's largest Swahili speaking populations, Swahili is the official and national language in both countries. Kenya and Tanzania share a lot of cultural similarities. 

In September 2014, Tanzania became the largest export destination of Kenyan goods within East Africa.  Kenya's total exports to Tanzania in 2011 were valued at 488 million U.S. dollars as compared to 390 million dollars in 2010. Kenya's imports from Tanzania were valued at 185.4 million dollars in 2011, an increase from 126 million dollars in 2010.  In the years between 2007-2008 Tanzanian exports to Kenya increased by 17 per cent. The balance of trade still favours Kenya.

According to latest media reports from the Kenyan capital, Nairobi, the breakthrough was reached following talks between President John Magufuli and his Kenyan counterpart, Uhuru Kenyatta.

A joint statement read by Tanzanian Minister for Foreign Affairs, East African, Regional and International Co-operation, Ambassador Augustine Mahiga, in Nairobi recently said Kenya will now allow free movement of wheat flour and liquefied petroleum gas (LPG) or cooking gas from Tanzania with immediate effect.

Likewise, Tanzania will lift a retaliatory ban it placed on milk, milk products and cigarettes from Kenya.

The two countries have also agreed to form a standing joint technical committee to address various trade issues. 

Diplomatic and trade relations between the two biggest regional economic powerhouses have been strained for some time.

The tit-for-tat bans started when Kenya claimed that wheat flour and LPG from Tanzania did not meet EAC quality and safety standards, which was seen as a deliberate move to impose non-tarrif barriers on Tanzanian goods.

Tanzania and Kenya are both members of the six-nation East African Community (EAC) regional trade bloc. Other members of the EAC are Uganda, Rwanda, Burundi and South Sudan.

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