Prepared by Julie Kozack.
The tariff item-weighted duty rate is the average of the eight tariff bands weighted by the shares of tariff items for each band. This differs from the average effective duty rate, which is the ratio of import duty collected to imports.
The members of COMESA are Angola, Burundi, Comoros, the Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Namibia, Rwanda, Seychelles, Swaziland, Sudan, Zambia, and Zimbabwe.
The EAC comprises Kenya, Tanzania, and Uganda. It was created by elevating the agreement that established the East African Cooperation into a treaty establishing the East African Community. The EAC was officially launched by the three heads of state in January 2001.
Kenya was declared AGOA eligible on October 2, 2000 and was declared eligible for the apparel provision under AGOA, which allows for duty-free and quota-free benefits for a number of apparel and textile products, on January 18, 2001.
In 1999/2000 Kenya introduced suspended duties on many products and increased import duties on agricultural products.
Imports from the Middle East shot up in 2000, likely reflecting the high petroleum prices, combined with the effects of the drought-related energy shortages.
In 2000, the share of consumer goods decreased while that of capital goods increased. This movement is likely related to the severe drought in that year, which required large imports of energy-related equipment. It is not expected that 2000 will represent a turning point in the composition of imports.
The other participating countries are Djibouti, Egypt, Madagascar, Malawi, Mauritius, Sudan, Zambia, and Zimbabwe.
Kenya applies suspended duties on petroleum products, while Tanzania applies suspended duties on about 20 products. Uganda does not maintain any suspended duties; however, it does apply special “excise taxes” of about 10 percent on imported goods alone.
The restriction imposes a maximum of 40 percent ownership for foreign corporate investors and 5 percent for foreign individual investors.
The perception of unequal distribution across countries arises primarily because Kenya’s exports to the other EAC members are larger than its imports from these countries.