Rwanda and Tanzania sign pact to end cross border non-tariff barriers

RWANDA and Tanzania have signed an agreement to further drive cross-border trade by removing non-tariff barriers.

Tanzania was Rwanda's seventh largest trading partner in 2011, accounting for four per cent of Rwanda's international trade and 17 per cent of regional trade.

The pact was signed in the Rwandan capital of Kigali by Rwanda's Trade and Industry Minister Francois Kanimba and Tanzanian Deputy Industry and Trade Minister Gregory Teu, reported the Dar es Salaam Citizen.

Said Mr Kanimba: "I hope with these relations, Rwanda and Tanzania will cooperate to further increase small traders' cross-border business.

"It is important to eliminate all reported trade barriers and refrain from introducing new ones in order to cut the high cost of doing business and take advantage of all the benefits of regional integration," Mr Kanimba said.

Said Mr Teu: "We expect, from these bilateral relations, our citizens from the two countries to trade among themselves easily" adding that the elimination of non-tariff barriers will reduce the costs of bilateral trade.

The executive secretary of Rwanda Long Distance Truckers Association, Theodore Murenzi, said: "I am happy that the two countries have agreed to eliminate NTBs which have been affecting us, especially because we lose money and time along the corridor which impacts on our businesses."

According to the deal, both countries will share lists of sensitive commodities, so each party can apply for stay of application of the EAC Common External Tariff (EAC-Cet).

Tanzania will conduct a study on optimal number of weighbridges (non-US truck scales), roadblocks and checkpoints, which is expected to be completed in December 2012. It will also issue simplified certificates of origin for goods originating in the EAC partner states free of charge.

For Rwanda, it will urge its minister for Lands, Housing and Human Settlements Development to allocate sufficient land within 10 kilometres from the port of Dar es Salaam for further development.

The two nations will jointly develop infrastructure and simplify procedures at Rwandan border, such as the implementation of the one-stop-border-post, the establishment of trade information desks and the setup of reliable electric power, said the report.

The Tanzania's Rwandan border post handled a great volume of Rwanda's imports from the port of Dar es Salaam, which amounted to US$74 million in 2011, up 56 per cent from 2007's figures.