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Trade Effects of the East African Community


  • Busse, Matthias
  • Shams, Rasul


This article evaluates the trade effects of the new East African Community, which fosters trade liberalisation among Kenya, Tanzania and Uganda. The analysis uses a disaggregated approach at the two-digit level of the Standard International Trade Classification. The commodities that will be particularly affected by the customs union are identified. The results show that considerable trade effects cannot be expected, except for a very narrow range of products. The transitional fund, which has been proposed to counter trade imbalances due to the new customs union in East Africa, becomes less urgent from this perspective.

Suggested Citation

  • Busse, Matthias & Shams, Rasul, 2005. "Trade Effects of the East African Community," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(1).
  • Handle: RePEc:ags:ecjilt:23870

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    References listed on IDEAS

    1. Ghosh, Sucharita & Yamarik, Steven, 2004. "Does trade creation measure up? A reexamination of the effects of regional trading arrangements," Economics Letters, Elsevier, vol. 82(2), pages 213-219, February.
    2. Anthony J. Venables, 2003. "Winners and losers from regional integration agreements," Economic Journal, Royal Economic Society, vol. 113(490), pages 747-761, October.
    3. Clague, Christopher, 1971. "Tariff Preferences and Separable Utility," American Economic Review, American Economic Association, vol. 61(2), pages 188-194, May.
    4. World Bank, 2004. "World Development Indicators 2004," World Bank Publications, The World Bank, number 13890.
    5. Gallaway, Michael P. & McDaniel, Christine A. & Rivera, Sandra A., 2003. "Short-run and long-run industry-level estimates of U.S. Armington elasticities," The North American Journal of Economics and Finance, Elsevier, vol. 14(1), pages 49-68, March.
    6. Jacob Wanjala Musila, 2004. "The common market for Eastern and Southern Africa and Kenya's export trade," International Journal of Social Economics, Emerald Group Publishing, vol. 31(1/2), pages 67-77, January.
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    Cited by:

    1. Khadan, Jeetendra & Hosein, Roger, 2014. "Trade, Economic and Welfare impacts of the CARICOM-Canada Free Trade Agreement," MPRA Paper 54836, University Library of Munich, Germany.
    2. Sangeeta Khorana & Kato Kimbugwe & Nick Perdikis, "undated". "Regional Integration under the East African Community: An Assessment of the Trade and Welfare Effects for Uganda," EcoMod2007 23900042, EcoMod.
    3. Jeetendra Khadan & Roger Hosein, 2016. "Trade, Economic and Welfare Impacts of the CARICOM-Canada Free Trade Agreement," IDB Publications (Working Papers) 7887, Inter-American Development Bank.


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