Since the establishment of the East African Community EAC , comprising Burundi, Kenya, Rwanda, Tanzania and Uganda, the region has seen a steady strengthening of economic and political ties among the community's partner states.
The EAC Customs Union came into force in , facilitating the establishment of a common external tariff and paving the way for the removal of all intra-regional tariffs by Despite this, available trade statistics paint a mixed picture about the impact of the EAC on intra-regional trade. Although the establishment of the EAC coincided with an important expansion in intra-regional trade in absolute terms, overall intra-EAC exports did not grow as a share of the region's total exports.
In addition, the persistence of non-tariff barriers NTBs still affects trade flows, and reduces the benefits to be gained from the regional integration process.
This fifth and final briefing of a project on NTBs in the EAC examines the cost of transport and logistical barriers to regional trade, calculating that they cost East African economies between 1. It then offers recommendations for policy-makers, suggesting that further trade liberalisation and improvements to infrastructure will reduce costs, in turn benefitting consumers by lowering prices.
In developed countries, the issue is around the loss of low-skilled jobs. Though this is often compensated by the burgeoning of new high skilled jobs.
They have been able to do so by adapting the skillset of their labor force to the demands of GVCs. They also increased their technological specialization in advanced industries. The OECD report attributes the inability of certain countries to reap the benefits from increased GVC integration to insufficient skills. Skills development is thus deemed vital in reducing the need for offshoring and giving workers the skills to face globalization.
European governments have responded to decreased employment with a wave of labor market reforms and investment toward returning estranged workers to the labor force.
Cite article How to cite? However, harmonization efforts are ongoing at the regional level, and the East African Standards Committee EASC oversees the development of new standards and the harmonization of the existing ones. The schemes, including ad hoc duty and tax exemptions, have led to significant revenue forgone by EAC countries. Infrastructure development in the region. The platform is designed as a one-stop shop for the information needs of African women in business.
While some of the buffers put in place by European governments are entirely mollifying —e. While social safety nets were not implemented to explicitly serve as a remedy to the loss of jobs created by increased global value chain integration, they have been able to mitigate the negative effect of outsourcing on employment.
As seen in Europe, within a regional trade group there can be stark differences in GVC integration; Africa is no different. This is attributed to the presence of natural resources and export specialization in mining activity. However, one key difference is that African countries are structured differently, and the room for cross-African GVCs is limited. The few African countries that serve as a destination of intermediary products for their fellow African countries include South Africa, Namibia, and Botswana.
As highlighted earlier, Southern Africa has a higher share of intra-regional trade than other African sub-regions. While there exist employment growth opportunities through GVCs, it has been difficult for African countries to increase employment through participation in GVCs alone.
As seen in certain European countries, GVCs have brought declines in employment in some African countries. Furthermore, social gains from increased GVC participation have been limited by factors like skills deficits, increasing informal employment, and unequal power relationships within value chains. Who would be the likely winners and losers?
co.organiccrap.com/22848.php How would distributional impacts of trade and integration be addressed? And what social safety nets and skills policies need to be in place to manage the winners and losers situation?