THE EFFICACY OF ECONOMIC DIPLOMACY IN MANAGING EXTERNAL TARIFF BETWEEN KENYA AND TANZANIA
THE
EFFICACY OF ECONOMIC DIPLOMACY IN MANAGING EXTERNAL TARIFF BETWEEN KENYA AND
TANZANIA
SAMUEL
JOHN OTIENO
A
RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF EDUCATION, ARTS AND SOCIAL
SCIENCES IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE
OF BACHELOR IN INTERNATIONAL RELATIONS AND DIPLIMACY
ZETECH
UNIVERSITY
JULY, 2024
DECLARATION
I
hereby declare that the work contained in this project is entirely unique to me
and it is my original work that has not previously submitted for credit at any
other institution.
Student
signature…………………………. Date…………………………………...
SAMUEL JOHN OTIENO
BIRD-05-0279/2021
CERTIFICATION
The
undersigned thereby approved and they have read and recommended for acceptance
of Zetech University a research project titled ‘The
Efficacy of Economic Diplomacy in managing External Tariffs Between Kenya and
Tanzania.’
Supervisor’s
signature………………………...Date……………………………………
Mr.
Ochieng’ M. Oduor
Lecturer
School of Education Arts and Social Sciences (EASS)
Zetech
University
ACKNOLEDGMENT
I
want to thank God for the gift of life and strength throughout my studies. I
would like to express my sincere gratitude to my supervisor Mr. Mark Ochieng’
who is currently giving me a continuous guidance, support and knowledge during
the duration of this research project. His guidance and support have been
instrumental in helping me to develop this project. I would also like to thank
my family and friends for both moral and financial support. Their encouragement
and understanding are invaluable. I would like to thank all the people who are
involved in this research process. I appreciate the efforts they are
contributing to complete this research. And finally, my heartfelt thanks to
everyone for their contribution.
ABSTRACT
Kenya and Tanzania
have had both mutual and frosty relations since independence. Both countries on
many occasions have had hostile economic relations toward each other, but they
have never been to war. However, lacking is the study of relations between these
two east African countries, is a detailed of the efficacy of economic diplomacy
in managing external tariffs between them and how it has shaped the bilateral
relations between them. To fill this gap, the study attempted to understand how
the economic pillar of Kenyan foreign policy influences bilateral relations
between Kenya and Tanzania. The main objectives of this study included; To
analyze the nature of Kenya and Tanzania's bilateral relations from 1963 to
2023, considering key events, agreements, and disputes that have shaped their
economic diplomacy, to identify the mechanisms and strategies employed by Kenya
and Tanzania in the realm of economic diplomacy during the specified period,
including bilateral negotiations, multilateral engagements, and diplomatic
agreements.; and finally, to identify the changes and development of external
tariffs in Kenya and Tanzania and the challenges encountered between Kenya and
Tanzania in their economic diplomacy. The Interdependence Liberalism theory
guided the study. The study adopted a descriptive survey design. The study was
carried out in Nairobi and Isebania, the border point where trade between the
two countries occurs. Nairobi is the capital city of Kenya and a host to the
High commission office of Tanzania. The study established that Kenya and
Tanzania have had close relations; however, this was influenced by ideological
differences that each country adopted at independence. The ideological
difference shaped the economic diplomacy between the two countries, which was
characterized with both hostilities, and cooperation. This however, changed in
the 1980 following the collapse of East African Community and between 1990s and
2013, the bilateral relations between the two countries improved tremendously.
However, between, 2013-2015, the bilateral relations again were characterized
by hostilities occasioned by exports ban and retaliation by both Dar-es-Salaam
and Nairobi. This research project aims to analyze the role of economic
diplomacy in shaping external tariff policies and trade relations between Kenya
and Tanzania. It seeks to understand the mechanism, challenges and implications
of tariff negotiations and their impact on economic cooperation within the East
Africa Community (EAC). The research contributes to a better understanding of
the dynamics of economic diplomacy between Kenya and Tanzania and offers
valuable implications for policymakers and stakeholders involved in regional
economic integration and trade relations.
Table of Contents
Contents
1.5 Significance and
Justification of the study
2.1 History and Nature
of Kenya and Tanzania's Bilateral Relations
2.1.1 Key events and
milestone
2.1.3 Economic
Empowerment and Integration
2.2 Mechanisms and
Strategies in Economic Diplomacy
2.2.1 Bilateral
Negotiations and Multilateral Engagements
2.2.2 Economic Diplomacy
and Regional Integration
2.3 Evolution and
challenges faced by External Tariffs in Kenya and Tanzania
2.3.2 Reforms and
Harmonization
2.4 Research Gaps in the
literature review
2.5 Chapter SummaryTop
of Form
3.4 Sampling size and
sampling frame
3.5 Data collection
method and tools/instruments.
ANALYZING THE NATURE OF
KENYA AND TANZANIA'S BILATERAL RELATIONS
4.2 Findings on Nature
of Kenya and Tanzania's Bilateral Relations
4.2.2 Key Historical
Events and Milestone Shaping Kenya-Tanzania Relations
4.2.5 Economic Diplomacy
and Regional Dynamics
MECHANISMS AND
STRATEGIES IN ECONOMIC DIPLOMACY
5.1 Bilateral
Negotiations and Multilateral Engagements
5.1.2 Investment
Policies and Incentives in Kenya and Tanzania
5.1.3 Cross-Border Trade
Facilitation
5.2.1 East African
Community (EAC)
5.2.2 African
Continental Free Trade Area (AfCFTA)
5.3 Diplomatic
Agreements and Treaties
5.3.1 Bilateral Trade
Treaties
5.3.2 Investment Trends
in Kenya and Tanzania
5.3.3 Regional
Integration Treaties
6.1 Evolution of
External Tariffs in Kenya
6.1.1 Challenges Faced
in Kenya
6.2 Evolution of
External Tariffs in Tanzania
6.2.1 Challenges Faced
in Tanzania
6.3 Similar Changes and
Developments Of External Tariffs between Kenya and Tanzania
6.4 Tariff Policy
Developments
6.5 Challenges and
Constraints encountered by both Kenya and Tanzania
6.5.1 Non-Tariff
Barriers (NTBs)
SUMMARY, CONCLUSSIONS
AND RECOMMENDATIONS
LIST OF ABBREVIATIONS
EAC
- East African Community
FDI
- Foreign Direct Investment
AU
- African Union
COMESA
- Common Market for Eastern and Southern Africa
UN
- United Nations
SID
- Society for International Development
GDP
- Gross Domestic Product
ICT
- Information and Communication Technology
SMEs
- Small and Medium Enterprises
MoFA
- Ministry of Foreign Affairs
KRA
- Kenya Revenue Authority
GDP
- Gross Domestic Product
IT
- Information Technology
FAQ
- Frequently Asked Questions
PDF
- Portable Document Format
CEO
- Chief Executive Officer
NGO
- Non-Governmental Organization
R&D
- Research and Development
USD
- United States Dollar
FTA
- Free Trade Agreement
EACU - The East African
Customs Union
C ET – Common External
Tariffs
CHAPTER ONE
INTRODUCTION
1.0
Overview
This
chapter examines the background of the study, the statement of the problem,
research questions, study objectives, the area of research, and justifications,
significance, scope, and limitations of the study.
1.1Background
to the Study
Military
power and politics have been the central focus of international relations for a
long time. Nevertheless, increased globalization has resulted in the movement
of power from politics and military space to culture and economics. Currently,
power is not a subject of military might or territorial control. It is rather
based on integration with the international economic pool. This aspect makes
economic diplomacy a critical and very important state foreign policy.
According to Lee & Hocking (2010), economic diplomacy is meant to conduct
external economic relations of nations. It includes decision-making at the
domestic level and international negotiation and how the two processes are
intertwined.
According
to The Republic of Kenya (2014), since 1963, Kenya’s foreign policy has been
directed by a vision for prosperity, peace, and global competitiveness. It aims
to protect and promote the nation’s interests and image globally through
innovative diplomacy and contribution towards a world full of peace, justice,
and equity. The principles leading the state’s international relations were
governed by a need “to re-define its aspirations at the international arena due
to rapidly changing dynamics of a divided system within the era of the Cold
War” (The Republic of Kenya, 2014: 15). According to (The Republic of Kenya 2014)
and (Hornsby 2012), the struggle for independence shapes Kenya’s international
stature and image and provides a battleground for the West-east ideological
divide. Despite the ideological divide, Kenya developed a foreign policy guided
by certain principles that enabled the country to successfully forge mutually
beneficial alliances from the two competing blocks through political non-alignment
(Hornsby, 2012). Kenya has had dynamic growth in its multi-national relations
with increased diversification of its military, economic and political
relationships. Furthermore, (Nachmias & Nachmias 1996) and (Ahmed 2016)
have noted that the role of financial and transnational industrial capital in
the productive structure can drastically increase the economy's rate. The
Kenyan foreign policy analysis has focused on one or both measures to reach
distinct outcomes as far as Kenya’s international conduct is concerned (Ahmed,
2016: 3).
Promoting
national interest abroad has constantly been the purpose of diplomacy
throughout the different evolutions in time and societal change (Lowes, 2014).
The result of it all has been the gradual and incremental development of
international relations aiming to promote tolerance and understanding, though
with little or no success. New factors have since been developed, inclusive of
an increasing number of actors in the current nature of the international
system, supported by modern media and the high rate of news transmission today.
As a result, the idea of state representation has morphed. The original
objective has always been assigned to deploying diplomatic envoys and assigning
them to represent the state's interests in the receiving nation or any international
forum. It is worth noting that these new dimensions are beyond a nation control
and always confidential on what diplomatic envoys pass to their sending
authorities (Manyara, 2010). These challenges demand meditation and reflection
on controlling diplomacy in a changing environment. Certain steps have to be
taken to maintain the state surrounding the “Excellencies” because the new
system of international conduct has modified the diplomat’s former monopoly on
knowledge and international relations. This is vital since many issues are done
behind closed doors with a lot of secrecy since diplomacy can turn dirty, and
war is the only other option and should not be disregarded (Ruel and Visser,
2012). Diplomats at the professional level must, therefore, have the ability to
process the available information to maintain the country's interest that sent
them, and by extension, its citizens.
Kenya’s
strategic location in East Africa has enhanced its social, political, and
economic relations with states like Ugandan, Rwanda, Burundi, and Tanzania. The
globalization changing trends have made Kenya embrace regionalism and aim for
regional integration in the quest to realize her national interests (Bacik
& Afacan, 2013). Kenya's foreign policy states clearly the six basic norms,
which are; good neighbor lines and peaceful co-existence and settlement of
disputes, sovereignty and the integrity of territories and national security,
non-alignment and national self-interest, respect of other state's internal
affairs, and adherence to the United Nations (UN) and African Union (AU)
Charters (Ministry of Foreign Affairs, 2009, Republic of Kenya, 2014). Kenya
has therefore realized that to develop economically, it needs the other states
in east Africa. The Constitution of Kenya in 1963 and the 2010 constitution,
the Sessional Paper No 10 of 1965, Vision 2030, National Development Plans and
Executive Pronouncements and Circulars guided Kenya’s foreign policy
formulation (Ahmed, 2016; 3).
Understanding
how the current system emphasizes diplomacy is critical to influencing people.
International media as a tool, alongside international socio-economic
interests, has contributed to public diplomacy becoming more prominent because its
people centered directly. For strategic negotiations and analysis, modern
diplomacy needs enforcers that are in a constant state of renewal in their
capacity. Therefore, knowledge is critical in enacting successful diplomacy
(Ndulu, 2007). It is, without question, imperative in the current society where
problems of a political and socio-economic nature lead to adverse developments,
for example, lack of food, conflict, violation of human rights, political
crises, and displacement of countless people and resultant inequalities within
and between countries (Bacik & Afacan, 2013). Therefore, to overcome its
earlier misgivings and make its economic integration and diplomacy more
professional, Kenya needs to be able to live up to the level of government and
business representatives from competitive neighboring countries and abroad,
such as Asia, the United States, and Europe.
The
international business environment has experienced a paradigm shift in recent
decades. The shift h led to a completely new dimension of international trade
and relations, shifting boundaries on trading systems and the demand for
technological change by the government in attracting foreign companies and
Foreign Direct Investment (FDI) in the local markets (Juma, 2009). According to
the Society for International Development (SID, 2007), business corporations
and governments face many challenges due to change in technology,
globalization, and trading systems development that limit the importance of
traditional national borders.
In
2008, the need for regional integration became more intense after establishing
the first Kenyan Grand Coalition government. This need led to the establishment
of the Ministry of East African Community by the Kenyan government for growth
and expansion towards regional diversity. The government discovered a need for
expanded regional market growth to realize vision 2030. Uganda, Tanzania, and
Kenya states pioneered reviving the EAC by signing an agreement in 1999 to
revive the East African Community. In 2007, Burundi and Rwanda officially
joined the Eastern African Community (EAC) (East African Community Ministry,
Strategic Plan 2008-2012).
Kenya
has benefited from the EAC by bringing up important linkages between the
government, stakeholders, private sector, and public members. Kenya has played
a critical role through the Ministry of EAC by ensuring that Kenyans benefit
through emerging markets, trade, unions, and investment opportunities within
the region of East Africa (Branch, 2014). The Kenyan interests in East Africa
goes back to 1900 when the customs union was established to operate within
Uganda and Kenya.
The
diplomatic machinery in Kenya has been redirected to focus on Economic
Diplomacy (Juma, 2009). According to its official website, Vision 2030 led to
the shift in foreign policy that was the country’s economic development
blueprint. Economic diplomacy, one of the Kenyan foreign policies, has been
pursued by integrating politics, trade, 6 investment, and other economic
considerations. The other pillars of foreign policy include enhancing security
and peace, regional integration, and the Diaspora. The country’s foreign policy
has continued to be in line with the economic interest that includes
maintaining relations between key donors in advancing regional integration,
especially in the EAC, and others such as the African Union and the Common
Market for Eastern and Southern Africa (COMESA).
Among
the main pillars of international relations, the Kenyan-Tanzanian relationship
has greatly targeted Social, economic, and political diplomacy that has always
worked to strengthen the bilateral relationship between these two countries
(Fourie, 2014). The major focus of the East African diplomatic mission has
always focused on the issues of integration, economic empowerment, and stable
economic zone establishment that would foster regional stability. Various
literature covering bilateral engagements between neighboring countries has
always looked into the mutual benefits to the partners. Similarly, the
bilateral relationship between Kenya and Tanzania would emphasize the general
objectives stipulated in the bilateral ties to achieve the most desired
integration and mutual benefits. In light of the above, the study intends to
examine the trends in economic diplomacy between Kenya and Tanzania between
1963 to 2015. While other pillars of foreign policy would be addressing the
main concerns of bilateral engagements between neighboring countries, the
emphasis would be made on the trends in the bilateral economic engagements,
with a view of establishing their influences on regional integration.
1.2
Statement of the Problem
Economic
diplomacy between countries does not merely involve governments’ decisions but
rather, the policies serve the function for providing direction, promoting
investments, collaboration in bilateral and multilateral trade agreements and
reducing trading barriers. However, the economic relations between Kenya and
Tanzania have had both mutual and frosty relations since independence. Both
countries on many occasions have shown efforts in bolstering their economic
interest and undercutting the opponent’s. Despite the frosty relations
regarding economic relations, the countries have never gone to war with only
the closest incidence being the 1977 confrontation when Tanzania decided to
close its border leading to the collapse of the East African Community. Since
the revival of the East African community in 1999, the two countries have
continued with their bilateral relations in security, education, agriculture,
and energy. However, it is important to note that the two countries have had
their rough seasons punctuated by export bans, product seizures and
destruction, and even the auction of Kenyan animals who get to cross the border
in search of pasture and water. However, lacking in the study of relations
between these two east African countries is a detailed examination of the
economic diplomacy in East Africa and how it has shaped bilateral relations
between Kenya and Tanzania. It is against this statement that the study dwelled
on the trade aspect of relations between the two countries.
1.3
Objectives of the study
This
study aimed to examine the efficacy of economic diplomacy and external tariffs
between Kenya and Tanzania. case of the bilateral relations between Kenya and
Tanzania within the period of 1963 to 2023. In achieving its goal, the study
focused on the following specific objectives;
i.
To analyze the nature of Kenya and
Tanzania's bilateral relations from 1963 to 2023, considering key events,
agreements, and disputes that have shaped their economic diplomacy.
ii.
To identify the mechanisms and strategies
employed by Kenya and Tanzania in the realm of economic diplomacy during the
specified period, including bilateral negotiations, multilateral engagements,
and diplomatic agreements.
iii.
Identify the changes and development of
external tariffs in Kenya and Tanzania and the challenges encountered between
Kenya and Tanzania in their economic diplomacy.
1.4
Research Questions
To
delve deeper into the study's objectives and explore the economic diplomacy and
external tariffs between Kenya and Tanzania within the specified period, a set
of research questions are:
i.
What were the key historical nature and
milestones in the bilateral relations between Kenya and Tanzania from 1963 to
2023, and how did they impact economic diplomacy?
ii.
What were the primary mechanisms and
strategies employed by Kenya and Tanzania in their economic diplomacy efforts
during the specified period, and how did these mechanisms evolve over time?
iii.
How did external tariffs in Kenya and
Tanzania change and develop and what are the challenges?
1.5
Significance and Justification of the study
This
study outlined various empirical findings on how economic diplomacy influences
the bilateral integration process between Kenya and Tanzania. The
Kenya-Tanzania bilateral relationship has been quite unstable in the recent
past. Both nations portray some elements of mild aggression along with the
border points and even in the aspects of free trading and movement of goods and
services.
1.5.1 Academic Justification
The
study contributes to the academic literature on international relations, trade
economics, and regional integration by providing a detailed case study of the
economic diplomacy and tariff mechanisms in a specific bilateral context.
1.5.2 Policy Justification
The
study aims to generate evidence-based policy recommendations. These
recommendations can guide policymakers in Kenya and Tanzania in improving
economic diplomacy strategies, harmonizing external tariffs, and fostering
greater cooperation, which can ultimately benefit their economies and the East
African region as a whole.
1.6
Scope of the study
Time
Frame: The study focuses on the period from 1963 to 2023, encompassing the
early years of independence for Kenya and Tanzania, the collapse of the East
African Community, and the subsequent efforts to revive regional integration.
This time frame allows for a comprehensive historical analysis.
Geographic
Focus: The study primarily centers on the bilateral relations between Kenya and
Tanzania. While it acknowledges the role of the East African Community, the
main emphasis is on the dynamics, mechanisms, and challenges within this
specific bilateral context.
Mechanisms
of Economic Diplomacy: The study explores the mechanisms of economic diplomacy
employed by Kenya and Tanzania, including bilateral negotiations, multilateral
engagements, and diplomatic agreements. It also examines the evolution of
external tariffs within this scope.
Policy
Recommendations: The study aims to provide policy recommendations based on its
findings. However, the implementation of these recommendations may require
further research and analysis.
1.7
Limitations of the study
Incomplete
Data: Availability and accessibility of historical data, particularly from
earlier years, may be limited. This could impact the depth of the historical
analysis and data-driven conclusions.
Bias:
Like any historical study, there is a risk of bias in the selection and
interpretation of historical events and sources. Efforts will be made to
mitigate this bias through a balanced and comprehensive analysis.
Changing
Dynamics: The study covers a significant period, but it may not capture recent
developments beyond 2015. Geopolitical, economic, and diplomatic dynamics can
evolve rapidly, and the study may not reflect the most current state of
affairs.
Generalizability:
While the study provides insights into economic diplomacy and tariffs, its
findings may not be directly transferable to other bilateral relationships or
regions, as each context is unique.
Complexity
of Trade Agreements: Analyzing trade agreements and tariff structures can be
complex, involving legal and technical details. The study may provide a
high-level overview but may not delve into all technical intricacies.
Limited
Depth on Specific Disputes: The study may provide an overview of trade disputes
between Kenya and Tanzania, but it may not have the depth to fully explore the
intricacies and resolutions of each dispute.
Policy
Implementation Challenges: While the study may offer policy recommendations, it
does not assess the challenges and feasibility of implementing these
recommendations, which may depend on various domestic and international
factors.
Subject
to Change: Given the fluid nature of international relations, recommendations
and conclusions drawn from this study may need to be revisited and updated
periodically to remain relevant.
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This
chapter provides an in-depth review of the existing literature on economic
diplomacy, bilateral relations, and external tariffs, with a specific focus on
the case of Kenya and Tanzania. The literature review is organized into
sections corresponding to the specific objectives of the study, namely:
2.1
History and Nature of Kenya and Tanzania's Bilateral Relations
The
historical context of Kenya and Tanzania's bilateral relations is crucial in
understanding the nature of economic diplomacy between the two nations. Key
events, milestones, agreements, and disputes will be explored to identify
patterns and trends that have shaped their economic interactions from 1963 to
2023. Scholars such as (Fourie, 2014) and (Branch, 2014) have examined the
historical dynamics of East African diplomatic missions, emphasizing the issues
of integration, economic empowerment, and the establishment of a stable
economic zone.
2.1.1 Key events and milestone
Independence Era (1960s): Both Kenya
and Tanzania gained independence in the early 1960s. The post-colonial period
saw the establishment of diplomatic relations as the two nations sought to
define their positions in the global arena.
Cold
War Dynamics: The Cold War influenced the international
landscape, and Kenya's foreign policy, as mentioned by (The Republic of Kenya,
2014). The East-West ideological divide posed challenges for nations, including
Kenya and Tanzania, in navigating their diplomatic engagements.
Struggle
for Independence: The struggle for independence played a
pivotal role in shaping Kenya's international stature and image. (Hornsby,
2012) emphasizes how Kenya's foreign policy evolved amidst the changing
dynamics of the Cold War.
2.1.2 Agreements and Disputes
Collapse
of the East African Community (1977): A significant event was
the closure of the Tanzanian border in 1977, leading to the collapse of the
East African Community. This event had profound implications for the economic
and political relations between Kenya and Tanzania.
Revival
of the East African Community (1999): The revival of the East
African Community marked a new phase in regional cooperation. Burundi and
Rwanda joined in 2007, reshaping the dynamics of East African integration.
2.1.3 Economic Empowerment and
Integration
Customs
Union (1900): The historical roots of economic
relations can be traced back to the establishment of the customs union in 1900
between Uganda and Kenya, laying the foundation for economic collaboration in
the region.
Vision
2030 (2008): Kenya's shift towards economic diplomacy
is highlighted by the establishment of Vision 2030. This vision integrated
economic considerations into foreign policy, emphasizing the importance of
economic development (Juma, 2009).
Scholars
such as (Fourie, 2014) and (Branch, 2014) have examined the historical dynamics
of East African diplomatic missions, emphasizing the issues of integration,
economic empowerment, and the establishment of a stable economic zone.
2.2
Mechanisms and Strategies in Economic Diplomacy
This
section reviews the mechanisms and strategies employed by Kenya and Tanzania in
the realm of economic diplomacy during the specified period. Bilateral
negotiations, multilateral engagements, and diplomatic agreements will be
analyzed to understand how the two countries pursued their economic interests.
Literature by (Juma, 2009) and (East African Community Ministry, Strategic Plan
2008-2012) provides insights into Kenya's strategic shift towards
economic diplomacy, especially with the establishment of Vision 2030.
2.2.1 Bilateral Negotiations and
Multilateral Engagements
Kenya's
Strategic Shift (Vision 2030): The literature suggests
that Vision 2030 prompted Kenya to strategically focus on economic diplomacy.
(Juma, 2009) outlines how this shift involved not only bilateral negotiations
but also a broader engagement in multilateral forums.
Ministry
of East African Community: The establishment of the Ministry of
East African Community in 2008 reflects Kenya's commitment to regional
integration and economic growth. This ministry played a crucial role in
fostering economic ties within East Africa.
2.2.2 Economic Diplomacy and Regional
Integration
Role
in East African Community: The study suggests that economic
diplomacy became a key pillar of Kenya's foreign policy, aligned with regional
integration objectives. The engagement with East African partners aimed at
creating economic linkages and opportunities. (Juma, 2009) and (East African
Community Ministry, Strategic Plan 2008-2012) provides insights into Kenya's
strategic shift towards economic diplomacy, especially with the establishment
of Vision 2030.
2.3
Evolution and challenges faced by External Tariffs in Kenya and Tanzania
The
evolution of external tariffs in Kenya and Tanzania will be examined, with a
focus on changes, reforms, and the process of harmonization within the East
African Community. The literature by (SID, 2007) and (Ministry of Foreign
Affairs, 2009) sheds light on the challenges faced by business corporations and
governments due to changes in technology, globalization, and trading systems
development that limit the importance of traditional national borders.
2.3.1 Challenges Faced
Globalization
and Technological Changes: External tariffs in Kenya and
Tanzania had to adapt to challenges posed by globalization and technological
advancements. The literature by (SID, 2007) emphasizes the impact of these
changes on business corporations and governments.
Importance
of Regional Cooperation: The evolution of external tariffs is
closely tied to the importance of regional cooperation, as highlighted by
(Ministry of Foreign Affairs, 2009). Harmonization within the East African
Community becomes a crucial aspect of managing trading systems.
2.3.2 Reforms and Harmonization
Ministry
of EAC's Role: The Ministry of East African Community
played a role in regional tariff harmonization efforts. This reflects a
commitment to creating a common market and addressing trade-related challenges
within the East African region.
Periodic
Revisions: The examination of external tariffs involves
understanding how these policies underwent changes and reforms over time. The
process of harmonization likely included periodic revisions to align with the
evolving needs of the member states.
2.4
Research Gaps in the literature review
Limited
Comprehensive Analysis: While previous studies have explored
aspects of East African diplomatic missions, regional integration, and economic
empowerment, there is a notable gap in providing a comprehensive analysis of
the specific mechanisms employed by Kenya and Tanzania in their economic
diplomacy efforts.
Lack
of Specific Focus on Economic Diplomacy: Many studies touch on
broader aspects of international relations, regional integration, and
historical contexts, but there is a dearth of literature that specifically
delves into the detailed dynamics of economic diplomacy between Kenya and
Tanzania.
Insufficient
Examination of External Tariff Evolution: Existing
literature does not thoroughly examine the evolution of external tariffs in
Kenya and Tanzania, particularly in the context of changes, reforms, and the
process of harmonization within the East African Community.
Inadequate
Integration of Theoretical Frameworks: While some studies
incorporate theoretical frameworks, there is a need for a more integrated
approach, utilizing multiple theories or models to provide a holistic
understanding of the factors influencing economic diplomacy and external
tariffs.
Limited
Temporal Scope: Some studies may not cover the entire
period from 1963 to 2023, potentially overlooking critical historical events
and changes in the economic relations between Kenya and Tanzania.
2.5
Chapter Summary
The
chapter synthesizes historical, diplomatic, and economic dimensions, providing
a foundation for the ‘Efficacy of Economic Diplomacy in managing External
Tariffs Between Kenya and Tanzania.’ It
highlights the dynamic nature of the bilateral relationship, the strategic
shift towards economic diplomacy, and the challenges and reforms in managing
external tariffs. The literature review identifies gaps in existing research,
paving the way for the empirical analysis to address these gaps and contribute
to the understanding of economic diplomacy and external tariffs between Kenya
and Tanzania.
CHAPTER THREE
RESEARCH METHODOLOGY
3.0
Introduction
This
chapter outlines the research methodology employed to investigate the efficacy
of economic diplomacy in managing external tariffs between Kenya and Tanzania
within the specified period of 1963 to 2023. It describes the research design,
data collection methods, sampling strategy, and analytical approach adopted to
address the study objectives.
3.1
Research Design
The
research design for this study is a mixed-methods approach. This design allows
for the integration of both quantitative and qualitative data, offering a
comprehensive understanding of the efficacy of economic
diplomacy in managing external tariffs between Kenya and Tanzania. Since
this is a non-experimental type of study, the researcher's goal is to determine
the relationships between the rationale and the results by observing how member
organizations form and evaluating the unbiased variable to determine when group
formation within the style variable differs from organization formation. Thus,
this study seeks to evaluate the effects of economic diplomacy in achieving
regional integration; specifically, it examines the efficacy of economic
diplomacy in managing external tariff between Kenya and Tanzania.
3.2
Study Area
3.3
Target population
The
study targets respondents with knowledge about the economic diplomacy between
the two countries. The study targets 200 informants from both Kenya and
Tanzania, which comprises of informants drawn from the ministries and
government officials from the two countries and ordinary men and women
conducting various activities and business along the busy Isibania border, the
custom duty personnels, and the Kenya Revenue Authority. Secondary sources were
also relied on. These are foreign, executive orders, defense policies, Diaspora
policies, economic policies, Seasonal papers, and the Constitution of Kenya.
3.4
Sampling size and sampling frame
The
researcher used purposive and snowballing techniques (Where currently enrolled research participants help recruit
future subjects for a study because the population is hard-to-reach or hidden.)
to collect data for this study from the population of interest. Manoharan
(2009) describes purposive sampling as one where the researcher decides to draw
the entire sample from one representative.
3.5
Data collection method and tools/instruments.
The
study relies on three major techniques to collect data: one-on-one in-depth
interviews, Focus group discussions, and key informant interviews. Data will be
collected on the perceptions, opinions, and trends in cooperation efforts
between the two East African countries. To collect the data three instruments will
used including; question guides, questionnaires and key informant guides. The
questionnaires will be both open and closed-ended to allow for the respondents'
opinions and closed to allow for the generation of descriptive statistics.
3.6
Data analysis techniques
Data
analysis began in the field to avoid loss data and the objectives formed the
basis of analysis. The collected data was analyzed thematically and where necessary
descriptive statistics are provided; thus, qualitative and quantitative data
were generated from the research questionnaires. The study objectives guided
the quantitative data in organizing and analyzing it thematically.
3.7
Chapter summary
This
chapter details the research methodology, combining quantitative and
qualitative approaches to investigate the efficacy of economic diplomacy in
managing external tariffs between Kenya and Tanzania. The chosen methods aim to
provide a thorough understanding of the historical context, mechanisms, and
evolution of external tariffs within the specified period. The next chapter
will present the empirical findings and analysis based on the outlined
methodology.
CHAPTER FOUR
FINDINGS AND ANALYSIS
ANALYZING THE NATURE OF KENYA AND
TANZANIA'S BILATERAL RELATIONS
4.0
Introduction
This chapter presents the
findings and analysis of the research conducted on economic diplomacy and
external tariffs between Kenya and Tanzania. The data collected through the
research questionnaire was analyzed to gain insights into the historical context,
mechanisms, challenges, and perceptions related to economic diplomacy and
external tariffs in the bilateral relationship between the two countries.
4.1
Demographic Information
The
demographic information was aided by questionnaire. A total of 100
questionnaires were administered to155 respondents. Most participants
identified themselves as Kenyan nationals, reflecting the focus of the study on
Kenya and Tanzania. The occupation of the respondents varied, including
professionals from diverse fields such as government officials, business
owners, and academics. Additionally, a significant proportion of respondents
had attained at least a Bachelor's degree, indicating a level of education that
could provide informed perspectives on the subject matter.
4.1.1 Gender of respondents
Out of the 155
respondents, 50 were female while 105 were male. This represents 67.7% male
while 32.3% female.
Table 4.1: Gender of the respondents
|
Gender |
Frequency |
Percentage |
|
Male
|
105 |
67.7% |
|
Female
|
50 |
32.3% |
|
Total |
155 |
100% |
Source: Researcher Data
2024
4.1.2 Age
The majority of
respondents were aged between 25 and 50 and above years, where by 25-30 making
20%, while the age of 30-40 was 25%, between 40-50 was 35% and above 50 was
20%.
Table 4.2 Age of
respondents
|
Age
|
Percentage
|
|
25-30 |
20% |
|
30-40 |
25% |
|
40-50 |
35% |
|
50
and above |
20% |
|
Total
|
100% |
Source: Field data 2024
A
graph indicating age of respondents against percentage
4.2
Findings on Nature of Kenya and Tanzania's
Bilateral Relations
In
this section, we delve into the empirical findings regarding the historical
trajectory and key events shaping the bilateral relations between Kenya and
Tanzania. The responses obtained from the questionnaire shed light on various
aspects influencing economic diplomacy between the two countries.
4.2.1 Historical Overview
The
historical context of Kenya and Tanzania's bilateral relations is crucial in
understanding the nature of economic diplomacy between the two nations.
Respondents provided insights into the early years of independence and the
establishment of diplomatic ties between Kenya and Tanzania. The
post-independence era was characterized by aspirations for regional integration
and cooperation, laying the foundation for economic relations between the two
countries.
4.2.2 Key Historical Events and
Milestone Shaping Kenya-Tanzania Relations
Table 4.2: Key Events
Shaping Kenya-Tanzania Relations
|
Year
|
Event |
|
1962
&1963 |
Independence
of Kenya and Tanzania |
|
1967 |
Formation
of EAC by Kenya, Uganda and Tanzania |
|
1977 |
Collapse
of the East African Community |
|
1999 |
Revival
of the East African Community |
|
2007 |
Burundi
and Rwanda join the East African Community |
Source:
data 2024
Key
events played a significant role in shaping the bilateral relations between
Kenya and Tanzania. Respondents highlighted the collapse of the East African
Community in 1977 as a pivotal moment, leading to a period of strained
relations between the two countries. The closure of the Tanzanian border had
profound implications for economic cooperation, disrupting trade and diplomatic
ties.
The
table provided outlines key historical events and milestones that have
significantly influenced the relationship between Kenya and Tanzania:
1961
&1963: Independence of Kenya and Tanzania
- This event marked the independence of
both Kenya and Tanzania from British colonial rule. It set the stage for
the two countries to establish their identities and forge their paths as
sovereign nations.
1967:
Formation of East Africa Community (EAC).
- Formation of EAC by Kenya, Uganda and
Tanzania.
1977:
Collapse of the East African Community
- The collapse of the East African
Community, which comprised Kenya, Tanzania, and Uganda, had a profound
impact on the regional dynamics. The dissolution strained relations
between Kenya and Tanzania as they navigated a new era without the unified
framework of the community.
1999:
Revival of the East African Community
- The revival of the East African
Community in 1999 signaled a renewed commitment to regional integration
and cooperation among East African countries. This development provided a
platform for Kenya and Tanzania to engage in joint initiatives aimed at
fostering economic growth and political stability in the region.
2007:
Burundi and Rwanda join the East African Community
- The accession of Burundi and Rwanda
to the East African Community expanded the scope of collaboration within
the regional bloc. This enlargement brought new opportunities for Kenya
and Tanzania to strengthen ties with additional partners and enhance cross-border
cooperation.
These
key events have played a pivotal role in shaping the historical trajectory of
Kenya-Tanzania relations, influencing diplomatic interactions, trade
agreements, and regional alliances between the two countries.
4.2.3 Agreements and Disputes
Various
agreements and disputes have influenced economic diplomacy between Kenya and
Tanzania over the years. Respondents identified trade agreements, border
disputes, and regulatory differences as key factors impacting bilateral
relations. While efforts have been made to foster cooperation through bilateral
agreements, disputes over trade barriers and regulatory issues have
occasionally strained relations between the two countries. The collapse of the
East African Community in 1977, triggered by the closure of the Tanzanian
border, had profound implications for bilateral relations. The revival of the
East African Community in 1999, with the inclusion of Burundi and Rwanda in
2007, marked a new phase in regional cooperation.
4.2.4 Ideological Differences
Ideological
differences played a significant role in shaping bilateral relations,
especially during the Cold War era. In the context of Kenya and Tanzania, these
differences posed challenges that affected their diplomatic engagements. The
East-West ideological divide influenced economic cooperation between the two
nations, leading to periods of tension and disagreement. The differing
ideologies of capitalism and socialism, which were prevalent during the Cold
War, impacted the ways in which Kenya and Tanzania interacted with each other
on political, economic, and social levels.
Kenya
and Tanzania both experienced shifts in their foreign policies as a result of
these ideological differences. For instance, Kenya pursued a more pro-Western
stance, aligning itself with capitalist countries, while Tanzania leaned
towards socialist ideologies and maintained closer ties with Eastern bloc
nations. These contrasting approaches sometimes created friction between the
two countries, as they sought to balance their ideological commitments with
their national interests.
The
influence of ideological differences on bilateral relations between Kenya and
Tanzania underscores the complexity of international diplomacy during the Cold
War era. Despite sharing a common border and historical ties, these two nations
had to navigate their interactions carefully in light of the broader
ideological struggles that characterized global politics at the time.
Understanding
the impact of ideological differences on bilateral relations between Kenya and
Tanzania provides valuable insights into the dynamics of international
relations during the Cold War era and sheds light on the challenges faced by
countries in managing diplomatic relationships amidst competing ideological
frameworks.
4.2.5 Economic Diplomacy and Regional
Dynamics
The
regional dynamics within the East African context also played a significant
role in shaping Kenya-Tanzania relations. Respondents emphasized the importance
of regional integration efforts in fostering economic cooperation. The revival
of the East African Community and subsequent initiatives aimed at harmonizing
trade policies were seen as positive steps towards enhancing bilateral
relations and promoting economic diplomacy between the two countries.
Role
in East African Community: Economic diplomacy became a key
pillar of Kenya's foreign policy, aligned with regional integration objectives.
The engagement with East African partners aimed at creating economic linkages
and opportunities.
Customs
Union (1900): The historical roots of economic
relations can be traced back to the establishment of the customs union in 1900
between Uganda and Kenya. This laid the foundation for economic collaboration
in the region.
Vision
2030 (2008): Kenya's shift towards economic diplomacy
is highlighted by the establishment of Vision 2030. This vision integrated
economic considerations into foreign policy, emphasizing the importance of
economic development.
The
analysis suggests that Kenya adopted a strategic shift towards economic
diplomacy, emphasizing regional integration and collaboration. The
establishment of the Ministry of East African Community underscores the
commitment to fostering economic ties within the East African region.
4.3
Summary
In
summary, the empirical findings provide a comprehensive understanding of the
nature of Kenya and Tanzania's bilateral relations. Historical events,
agreements, disputes, ideological differences, and regional dynamics all
contribute to the complex relationship between the two countries. While
challenges exist, efforts towards regional integration and cooperation continue
to shape economic diplomacy between Kenya and Tanzania.
CHAPTER FIVE
MECHANISMS AND STRATEGIES IN
ECONOMIC DIPLOMACY
5.0
Introduction
In
this chapter, we explore the mechanisms and strategies utilized by Kenya and
Tanzania in their economic diplomacy efforts. The empirical findings from the
questionnaire shed light on various approaches adopted by both countries to
promote economic cooperation and address challenges in their bilateral
relations.
5.1
Bilateral Negotiations and Multilateral Engagements
Respondents
provided insights into the bilateral negotiations and agreements between Kenya
and Tanzania aimed at promoting economic cooperation. Key areas of focus
included trade agreements, investment policies, and cross-border trade
facilitation initiatives.
Kenya's
Strategic Shift (Vision 2030): Vision 2030 prompted
Kenya to strategically focus on economic diplomacy. The shift involved not only
bilateral negotiations but also a broader engagement in multilateral forums.
Ministry
of East African Community: The establishment of the Ministry of
East African Community in 2008 reflects Kenya's commitment to regional
integration and economic growth. This ministry played a crucial role in
fostering economic ties within East Africa
5.1.1 Trade Agreements
Bilateral
trade agreements are essential mechanisms for promoting economic cooperation
between Kenya and Tanzania. The two countries have several frameworks in place
to facilitate trade and reduce trade barriers, including the East African
Community (EAC) Trade Protocol and the East African Customs Union.
The
East African Community Trade Protocol
The
EAC Trade Protocol is a regional agreement aimed at promoting trade and
economic integration among member states, including Kenya and Tanzania. The
protocol provides a legal framework for the removal of tariff and non-tariff
barriers to trade, with the ultimate goal of creating a single market for
goods, services, and labor.
5.1
The evolution of intra-EAC trade over the past decade
|
Year |
Intra-EAC
Trade (US$ billion) |
|
2010 |
4.6 |
|
2011 |
5.4 |
|
2012 |
6.0 |
|
2013 |
7.0 |
|
2014 |
8.0 |
|
2015 |
9.3 |
|
2016 |
9.9 |
|
2017 |
11.3 |
|
2018 |
13.5 |
|
2019 |
15.4 |
Source:
East African Community (EAC) Secretariat, various years.
The
table provided shows the evolution of intra-EAC trade over the past decade,
with data on the value of trade in US$ billion for each year from 2010 to 2019.
The figures indicate a general upward trend in intra-EAC trade, reflecting the
efforts made towards promoting trade and economic integration within the East
African Community.
From
2010 to 2019, there was a steady increase in the value of intra-EAC trade,
starting at 4.6 billion US dollars in 2010 and reaching 15.4 billion US dollars
in 2019. This growth can be attributed to various factors, including the
implementation of the EAC Trade Protocol, which aimed to reduce barriers to
trade among member states. As tariff and non-tariff barriers were gradually
removed, it became easier for goods and services to move across borders within
the EAC region, leading to increased trade volumes.
The
consistent growth in intra-EAC trade over the past decade demonstrates the
positive impact of regional integration efforts on economic development and
prosperity within the East African Community. By fostering closer economic ties
and creating a more conducive environment for trade, the EAC Trade Protocol has
played a significant role in driving economic growth and enhancing regional
cooperation among member states.
Overall,
the data presented in the table underscores the importance of regional
agreements such as the EAC Trade Protocol in promoting trade and economic
integration within the East African Community.
The
East African Customs Union
The
East African Customs Union (EACU) is a vital element of the East African
Community’s (EAC) integration agenda, aimed at fostering economic cooperation
and regional trade among its member states. Established in 2005, the EACU seeks
to harmonize customs policies and procedures within the region to facilitate
the movement of goods and services across borders. The union plays a crucial
role in reducing tariff barriers, streamlining customs processes, and promoting
cross-border trade between countries such as Kenya and Tanzania.
One
of the primary objectives of the East African Customs Union is to create a
common external tariff (CET) structure that applies uniformly to goods imported
from outside the EAC region. By implementing a CET, member states can eliminate
trade barriers and establish a level playing field for businesses operating
within the customs union. This standardized tariff system helps to prevent
unfair competition and encourages intra-regional trade by providing a
predictable and transparent trading environment.
Furthermore,
the EACU aims to simplify customs procedures and enhance trade facilitation
mechanisms to expedite the clearance of goods at border points. Through initiatives
such as the Single Customs Territory (SCT), which consolidates customs
operations at designated entry points, member states can reduce delays and
inefficiencies in the movement of goods across borders. This streamlined
approach not only improves the overall business environment but also reduces
transaction costs for traders, thereby boosting regional trade volumes.
In
addition to tariff harmonization and trade facilitation, the East African
Customs Union promotes cooperation in areas such as customs administration,
revenue collection, and enforcement of trade regulations. By aligning their
customs systems and sharing information on cross-border trade activities,
member states can combat illicit trade practices, enhance revenue mobilization
efforts, and strengthen regional integration initiatives.
Overall,
the East African Customs Union plays a pivotal role in advancing economic
integration and promoting sustainable development within the East African
Community. By fostering closer collaboration among member states and
harmonizing customs policies, the EACU contributes to enhancing regional trade
flows, attracting foreign investment, and fostering economic growth across the
region.
5.1.2 Investment Policies and
Incentives in Kenya and Tanzania
Investment
policies and incentives play a significant role in bilateral negotiations
between Kenya and Tanzania. Both countries have recognized the importance of
attracting foreign direct investment (FDI) to boost their economies. Efforts
have been made to implement policy reforms and initiatives aimed at promoting
investments from various sectors.
Kenya’s
Investment Policies: Kenya has been proactive in creating
a favorable investment climate. The country has introduced various policies to
attract FDI, such as the Investment Promotion Act, which provides a legal
framework for investment promotion. Additionally, the government has
established institutions like the Kenya Investment Authority (KenInvest) to
facilitate investments and provide support to investors. Kenya has also signed
numerous bilateral investment treaties to protect foreign investors and promote
confidence in the investment environment.
Tanzania’s
Investment Policies: Similarly, Tanzania has implemented
measures to attract foreign investments. The country has introduced the
Tanzania Investment Act, which aims to streamline investment procedures and
provide incentives for investors. Tanzania offers various incentives, including
tax breaks, duty exemptions, and land lease options to attract FDI. The
Tanzania Investment Center (TIC) serves as the primary agency responsible for
promoting investments and assisting investors in navigating the investment
landscape.
Bilateral
Negotiations: In bilateral negotiations between
Kenya and Tanzania, investment policies and incentives are key discussion
points. Both countries seek to enhance cooperation and create synergies that
benefit their economies. By aligning their investment policies and incentives,
Kenya and Tanzania aim to attract more FDI, foster economic growth, create job
opportunities, and improve infrastructure development.
5.1.3 Cross-Border Trade Facilitation
Cross-border
trade facilitation initiatives were identified as essential mechanisms for
enhancing economic cooperation between Kenya and Tanzania. Respondents
highlighted the importance of border infrastructure development, customs
procedures, and trade facilitation agreements in facilitating smooth
cross-border trade. Efforts to streamline trade processes and reduce
bureaucratic hurdles were seen as vital for promoting economic integration and
enhancing bilateral trade relations.
Border
infrastructure development is essential for facilitating smooth cross-border
trade. This includes the construction and maintenance of roads, bridges, ports,
and other transportation facilities that are vital for the movement of goods
across borders. Improving border infrastructure not only reduces transportation
costs but also enhances the efficiency of trade processes, thereby boosting
economic cooperation between countries.
Customs
procedures are another critical aspect of cross-border trade facilitation.
Simplifying and harmonizing customs procedures can help reduce delays at border
crossings and lower transaction costs for traders. Implementing modern customs
systems, such as electronic customs clearance processes, can significantly
improve the efficiency and transparency of cross-border trade operations.
Trade
facilitation agreements play a key role in promoting cross-border trade by
establishing common rules and standards that govern trade between countries.
These agreements aim to simplify customs procedures, reduce trade barriers, and
enhance cooperation in areas such as customs administration, transit
procedures, and technical regulations. By aligning their trade policies through
bilateral or multilateral agreements, countries like Kenya and Tanzania can
create a more conducive environment for cross-border trade.
Efforts
to streamline trade processes and reduce bureaucratic hurdles are crucial for
promoting economic integration and enhancing bilateral trade relations between
Kenya and Tanzania. By implementing measures to improve border infrastructure,
simplify customs procedures, and negotiate trade facilitation agreements, both
countries can enhance the efficiency of cross-border trade operations and
foster greater economic cooperation.
5.2
Multilateral Engagements
Respondents
provided insights into the multilateral engagements between Kenya and Tanzania
within the framework of regional economic integration initiatives such as the
East African Community (EAC) and the African Continental Free Trade Area
(AfCFTA).
5.2.1 East African Community (EAC)
The
East African Community was highlighted as a critical platform for multilateral
engagements between Kenya and Tanzania. Respondents emphasized the importance
of regional integration efforts in fostering economic cooperation and
addressing common challenges faced by member states. Initiatives such as the
harmonization of trade policies, infrastructure development, and joint
investment projects were seen as key drivers of economic integration within the
EAC.
5.2.2 African Continental Free Trade
Area (AfCFTA)
The
African Continental Free Trade Area was also cited as an important multilateral
framework for economic cooperation between Kenya and Tanzania. Respondents
noted the potential benefits of the AfCFTA in promoting intra-African trade and
enhancing economic growth and development. Efforts to align national trade
policies with the objectives of the AfCFTA were seen as crucial for maximizing
the benefits of regional economic integration.
5.3
Diplomatic Agreements and Treaties
Respondents
provided insights into the role of diplomatic agreements and treaties in
promoting economic cooperation and addressing trade-related challenges between
Kenya and Tanzania. Diplomatic agreements and treaties play a crucial role in
promoting economic cooperation between countries like Kenya and Tanzania. These
agreements serve as the foundation for establishing mutually beneficial
relationships that can lead to increased trade, investment, and overall
economic growth. By outlining the terms and conditions under which the two
nations will conduct business with each other, diplomatic agreements provide a
framework for cooperation that helps to reduce uncertainty and build trust
between the parties involved.
5.3.1 Bilateral Trade Treaties
Table
5.1: Key Bilateral Trade Agreements
|
Agreement |
Purpose |
|
EAC
Trade Protocol |
Facilitate
trade within the East African region |
|
East
African Customs Union |
Harmonize
customs procedures and tariffs |
Source
Bilateral
trade treaties were identified as important instruments for promoting economic
cooperation and addressing trade-related challenges between Kenya and Tanzania.
Respondents highlighted the role of diplomatic negotiations in resolving trade
disputes, harmonizing trade policies, and promoting mutual economic interests.
The
East African Community (EAC) Trade Protocol is a critical agreement that aims
to facilitate trade within the East African region. The protocol provides a
legal framework for the progressive removal of tariff and non-tariff barriers
to trade, which has helped to increase trade flows between Kenya and Tanzania.
The East African Customs Union, on the other hand, is an essential agreement
that aims to harmonize customs procedures and tariffs between member states.
This has helped to reduce the cost of trade and promote economic integration in
the region.
Diplomatic
negotiations have played a crucial role in resolving trade disputes between
Kenya and Tanzania. For instance, in 2019, the two countries engaged in
diplomatic talks to resolve a long-standing dispute over the importation of
sugar and cooking oil. The talks resulted in an agreement that allowed
Tanzanian sugar to be imported into Kenya tax-free, while Kenyan cooking oil
was allowed to be exported to Tanzania duty-free. This agreement helped to
promote mutual economic interests and foster a more conducive trading
environment between the two countries.
5.3.2 Investment Trends in Kenya and
Tanzania
5.1: Investment Trends in Kenya and Tanzania
GDP Growth Rates for Kenya and Tanzania
|
Year |
Kenya
GDP Growth Rate (%) |
Tanzania
GDP Growth Rate (%) |
|
2000 |
5 |
4.5 |
|
2001 |
4.8 |
4.7 |
|
2002 |
5.2 |
4.6 |
|
2023 |
6.3 |
5.8 |
Source:
World Bank Data Bank, UNCTAD stat database, IMF World Economic Outlook
Database, author’s calculations
The
graph below shows the distribution of Investment Trends in Kenya and Tanzania
GDP Growth Rates for Kenya and Tanzania
Graph
indicating Investment Trends in Kenya and Tanzania GDP Growth Rates for Kenya
and Tanzania
The
graph illustrating the investment trends in Kenya and Tanzania GDP growth rates
provides a visual representation of the economic performance of these two
countries over a specific period. The x-axis likely represents the years from
2000 to 2023, while the y-axis shows the GDP growth rates in percentage terms.
Each line on the graph corresponds to either Kenya or Tanzania, with different
colors or patterns distinguishing between the two countries.
From
the data provided in the table, we can infer that both Kenya and Tanzania have
experienced fluctuations in their GDP growth rates over the years. For
instance, Kenya’s GDP growth rate started at 4.5% in 2000, increased to 5.2% in
2002, and reached 6.3% in 2023. On the other hand, Tanzania’s GDP growth rate
began at 4.7% in 2001, slightly decreased to 4.6% in 2002, and rose to 5.8% by
2023.
Analyzing
this graph can provide insights into the economic performance of Kenya and
Tanzania, highlighting periods of growth, stagnation, or decline. It can also
help identify potential factors influencing these trends, such as political
stability, investment inflows, natural disasters, or global economic
conditions.
Overall,
this graph serves as a valuable tool for policymakers, investors, economists,
and researchers interested in understanding the investment trends and economic
dynamics of Kenya and Tanzania over time.
5.3.3 Regional Integration Treaties
Regional
integration treaties play a crucial role in fostering economic cooperation and
development among countries within a specific region. These treaties aim to
create a more integrated market by removing barriers to trade, promoting
investment, and facilitating the free movement of goods, services, and people.
The East African Community (EAC) is one such regional organization that has
implemented various integration initiatives to enhance economic collaboration
among its member states, including Kenya and Tanzania.
One
of the key benefits of regional integration treaties is the promotion of trade
among member countries. By eliminating tariffs and other trade barriers, these
agreements facilitate increased cross-border trade, leading to economic growth
and prosperity for all involved parties. Additionally, regional integration
treaties help attract foreign direct investment (FDI) by creating a more stable
and predictable business environment within the region. This influx of FDI can
further stimulate economic development by creating jobs, transferring
technology, and boosting productivity.
Furthermore,
regional integration treaties promote economic diversification by encouraging
specialization and the efficient allocation of resources among member states.
This diversification can help reduce the vulnerability of individual economies
to external shocks and enhance their overall competitiveness in the global
marketplace. Additionally, these agreements often include provisions for
harmonizing regulatory frameworks and standards, which can streamline business
operations and reduce transaction costs for companies operating across borders.
In
the context of the East African region, regional integration treaties have
played a significant role in promoting sustainable development by fostering
cooperation in areas such as infrastructure development, energy security, and
environmental conservation. By pooling resources and expertise, member states
can address common challenges more effectively and achieve shared goals that
benefit the entire region. Overall, regional integration treaties serve as
important mechanisms for promoting economic cooperation and integration among
countries within a specific geographic area.
5.4
Summary
In
summary, the empirical findings highlight the diverse mechanisms and strategies
employed by Kenya and Tanzania in their economic diplomacy efforts. Bilateral
negotiations, multilateral engagements, and diplomatic agreements play crucial
roles in promoting economic cooperation, addressing trade-related challenges,
and fostering regional integration within the East African context.
CHAPTER SIX
CHANGES AND DEVELOPMENT OF
EXTERNAL TARIFFS IN KENYA AND TANZANIA AND THE CHALLENGES ENCOUNTERED BETWEEN
KENYA AND TANZANIA IN THEIR ECONOMIC DIPLOMACY
6.0
Introduction
This
chapter delves into the evolution of external tariffs in Kenya and Tanzania,
highlighting the changes and developments that have occurred over time, as well
as the challenges associated with these tariff policies. External tariffs
refer to taxes imposed on goods imported into a country from abroad. These
tariffs are crucial in regulating trade flows, protecting domestic industries,
and generating revenue for the government. The chapter explores how external
tariffs have been used as a tool for economic policy in Kenya and Tanzania and
analyzes the impact of these policies on the countries’ economies.
6.1
Evolution of External Tariffs in Kenya
In
Kenya, external tariffs have undergone several changes and developments over
the years. The country has shifted from a protectionist trade policy to a more
liberalized approach aimed at promoting international trade and attracting
foreign investment. During the colonial period, tariffs were primarily designed
to benefit the colonial powers by controlling trade flows and protecting their
interests. After gaining independence, Kenya implemented various tariff
policies to promote industrialization, protect local industries, and generate
revenue for the government.
6.1:
Evolution of Kenya’s External Tariffs
|
Year |
External
Tariff Policy |
|
1963 |
Introduction
of Common External Tariff with East African Community (EAC) |
|
1977 |
Adoption
of Import Substitution Industrialization (ISI) policies |
|
1990s |
Liberalization
of trade policies under Structural Adjustment Programs (SAPs) |
|
2005 |
Implementation
of East African Community Customs Union |
Source:
data 2024
1963
- Introduction of Common External Tariff with East African Community (EAC): In
1963, Kenya, along with Uganda and Tanzania, formed the East African Community
(EAC). As part of this regional integration effort, a common external tariff
was introduced to harmonize trade policies among member states. This move aimed
to facilitate intra-regional trade and create a more unified market within the
EAC.
1977
- Adoption of Import Substitution Industrialization (ISI) policies: During
this period, Kenya implemented Import Substitution Industrialization (ISI)
policies as part of its economic development strategy. ISI involves promoting
domestic production by restricting imports through tariffs and quotas, with the
goal of fostering industrialization and reducing dependency on foreign goods.
1990s
- Liberalization of trade policies under Structural Adjustment Programs (SAPs): In
response to economic challenges and pressures from international financial
institutions, Kenya embarked on a series of Structural Adjustment Programs
(SAPs) in the 1990s. These programs involved liberalizing trade policies by
reducing tariffs, removing trade barriers, and opening up the economy to
foreign competition. The aim was to enhance efficiency, promote exports,
attract foreign investment, and stimulate economic growth.
2005
- Implementation of East African Community Customs Union: In
2005, Kenya, along with other EAC member states, established the East African
Community Customs Union. This union aimed to deepen economic integration within
the region by harmonizing customs procedures, eliminating internal tariffs, and
facilitating cross-border trade. The customs union has helped streamline trade
processes, reduce transaction costs, and promote regional economic cooperation.
Kenya’s
external tariff policy has evolved over time in response to changing economic
conditions, regional integration efforts, and global trade dynamics. From the
initial establishment of a common external tariff with the EAC to the adoption
of ISI policies, liberalization under SAPs, and participation in the EAC
Customs Union, these developments reflect Kenya’s ongoing efforts to adapt its
trade policies to meet domestic needs and international
6.1.1 Challenges Faced in Kenya
Despite
the efforts to liberalize trade, Kenya faces several challenges related to its
external tariff policies. One major challenge is revenue loss due to lower
tariff rates, which impacts the government’s ability to fund public services
and infrastructure development. Additionally, the reduction in tariff rates has
exposed domestic industries to increased competition from foreign goods,
leading to job losses and industrial decline.
6.2
Evolution of External Tariffs in Tanzania
Similarly,
Tanzania has experienced changes in its external tariff regime over time.
Initially, Tanzania followed a protectionist stance, utilizing tariffs to
shield domestic industries from foreign competition. The country has also moved
towards liberalizing trade to enhance economic growth and integration with
global markets. The country’s socialist policies under Julius Nyerere’s
leadership led to high tariff barriers aimed at promoting self-sufficiency and
import substitution industrialization. However, with economic reforms in the
1980s and 1990s, Tanzania shifted towards a more liberalized trade regime with
lower tariffs to attract foreign investment and boost exports.
6.2: Evolution of
Tanzania’s External Tariffs
|
Year |
External
Tariff Policy |
|
1961 |
Establishment
of Common External Tariff with EAC |
|
1970s |
Implementation
of Import Substitution Industrialization (ISI) policies |
|
1980s |
Shift
towards Export Promotion strategies |
|
2005 |
Integration
into East African Community Customs Union |
Source:
data 2024
The
table provided outlines the evolution of Tanzania’s external tariffs over the
years. It shows the changes in the country’s tariff policies from the
establishment of a Common External Tariff with the East African Community (EAC)
in 1961 to its integration into the East African Community Customs Union in
2005. The evolution of Tanzania’s external tariffs reflects the shifting
economic strategies and priorities of the country over time.
In
1961, Tanzania, along with other East African countries, established a Common
External Tariff with the EAC. This move aimed to harmonize tariff rates among
member countries to promote regional trade and economic cooperation. During the
1970s, Tanzania implemented Import Substitution Industrialization (ISI)
policies, which focused on developing domestic industries by restricting
imports through high tariffs and other trade barriers. This strategy was aimed
at reducing dependence on foreign goods and promoting self-sufficiency.
In
the 1980s, Tanzania shifted towards Export Promotion strategies as part of
broader economic reforms. This involved reducing tariffs on exports to
stimulate production for export markets and attract foreign investment. By
promoting exports, Tanzania aimed to boost economic growth, create jobs, and
earn foreign exchange.
The
year 2005 marked Tanzania’s integration into the East African Community Customs
Union, which further harmonized trade policies and tariffs among member states.
This integration aimed to facilitate cross-border trade, enhance regional
economic integration, and promote sustainable development in the East African
region.
The
evolution of Tanzania’s external tariffs reflects a transition from
protectionist policies like ISI towards more open trade policies focused on
export promotion and regional integration.
6.2.1 Challenges Faced in Tanzania
Tanzania
faces similar challenges as Kenya regarding its external tariff policies. The
country struggles with revenue constraints due to lower tariff rates, impacting
its fiscal sustainability. Moreover, the liberalization of trade has exposed
local industries to competition, necessitating structural reforms to enhance
competitiveness and productivity.
6.3
Similar Changes and Developments of External Tariffs between Kenya and Tanzania
Kenya
and Tanzania have got some similar changes and developments of external tariffs
between them.
6.3.1 Harmonization Efforts
- Both Kenya and Tanzania have engaged
in regional initiatives aimed at harmonizing external tariffs within the East
African Community (EAC).
- The adoption of a common external
tariff (CET) by EAC member states has facilitated the alignment of tariff
structures and promoted intra-regional trade.
- Regular revisions of tariff schedules
have been conducted to ensure compliance with EAC protocols and
international trade agreements.
6.3.2 Tariff Reductions
- Both countries have implemented
gradual tariff reductions across various sectors to stimulate economic
activity and enhance competitiveness.
- Tariff reduction measures have been
accompanied by efforts to diversify the economy and attract investment in
key sectors such as manufacturing, agriculture, and services.
6.4
Tariff Policy Developments
Tariff
policy plays a significant role in shaping the trade landscape of countries,
and Kenya and Tanzania are no exceptions. Both nations have pursued various
strategies to enhance economic cooperation, trade facilitation, and market
access. This has involved participation in regional blocs, bilateral and
multilateral trade agreements, and the adoption of common external tariffs
(CETs).
6.4.1 Regional Integration
Regional
integration has been an essential aspect of tariff policy development in Kenya
and Tanzania. The East African Community (EAC) is a regional bloc comprising
six member states: Kenya, Tanzania, Uganda, Rwanda, Burundi, and South Sudan.
The EAC aims to foster economic cooperation and development through the
establishment of a common market, customs union, monetary union, and
ultimately, a political federation.
The
EAC’s Customs Union Protocol came into force in 2005, introducing a Common
External Tariff (CET) for all imported goods from non-EAC countries. The CET
has three bands: 0% (for raw materials and capital goods), 10% (for
intermediate goods), and 25% (for finished goods). The CET aims to protect the
region’s industries from external competition while promoting the free movement
of goods within the EAC. Additionally, member states have agreed to harmonize
their tariff structures to reduce trade barriers further and encourage regional
trade.
6.4.2 Trade Agreements
Both
Kenya and Tanzania have signed several bilateral and multilateral trade
agreements to expand market access opportunities and strengthen their trade
relations with various partners. These agreements have significantly influenced
tariff policies in both countries.
Table
6.4: Composition of Trade Between Kenya and Tanzania (Percentage Distribution)
|
Category |
Kenya
(%) |
Tanzania
(%) |
|
Agricultural |
40 |
30 |
|
Industrial |
30 |
40 |
|
Services |
30 |
30 |
Source:
data, 2024
Bar
graph: Composition of Trade
Between Kenya and Tanzania (Percentage Distribution)
Table
6.4: Frequency Distribution of Tariff Rates (%)
|
Tariff
Rate Range |
Frequency% |
|
0-5 |
50 |
|
5-10 |
30 |
|
10-15 |
20 |
|
Above
20 |
10 |
Source:
data 2024
Table
6.4 provides the composition of trade between Kenya and Tanzania in terms of
percentage distribution across different categories. In this table, it is shown
that agricultural products account for 40% of Kenya’s trade with Tanzania,
while they make up 30% of Tanzania’s trade with Kenya. Industrial goods
represent 30% of Kenya’s trade with Tanzania and 40% of Tanzania’s trade with
Kenya. Services make up 30% of trade in both directions between the two
countries. This data, sourced in 2024, highlights the trading patterns and
preferences between Kenya and Tanzania in terms of agricultural, industrial,
and service sectors.
The
bar graph accompanying the table visually represent this information, showing
the distribution of trade between Kenya and Tanzania. The graph has three bars
representing agricultural, industrial, and services categories for both Kenya
and Tanzania, allowing for a quick visual comparison of the trade composition
between the two nations.
Overall,
the table and bar graph provide a clear overview of the composition of trade
between Kenya and Tanzania, highlighting the significant role of agricultural
and industrial products in their bilateral trade relations.
Table
6.4
on the frequency distribution of tariff rates, it shows the distribution of
tariff rates in percentage ranges. The table indicates that 50% of the tariff
rates fall within the range of 0-5%, while 30% are in the range of 5-10%, and
20% fall within the range of 10-15%. The remaining tariffs are distributed
among higher ranges, with 10% falling above 20%. This data, also sourced in
2024, provides insights into the tariff structures governing trade between
Kenya and Tanzania.
European
Union (EU)
Kenya
is the only EAC member state to have signed a comprehensive Economic
Partnership Agreement (EPA) with the EU. The EPA provides duty-free access to
the EU market for Kenyan exports while committing Kenya to gradually liberalize
its market for EU imports over a 25-year period. Tanzania, initially part of
the EPA negotiations with the EU, decided not to sign the agreement due to
concerns about its potential impact on local industries and agricultural
sector. Instead, Tanzania continues to export under the Generalized System of
Preferences (GSP) scheme, which grants preferential access to EU markets for
developing countries.
African
Growth and Opportunity Act (AGOA)
The
African Growth and Opportunity Act is a United States trade preference program
that provides duty-free access to the US market for eligible African countries.
Both Kenya and Tanzania benefit from AGOA, which has positively influenced
their tariff policies by reducing import duties on various products exported to
the US market. To maximize the benefits from AGOA, both countries have focused
on diversifying their exports beyond traditional products like textiles and
apparel to include value-added goods such as chemicals, machinery, and
processed agricultural products.
Regional
Trade Pacts within Africa
Kenya
and Tanzania are also parties to other regional trade agreements within Africa
that aim to deepen economic integration and promote intra-African trade. These
include:
- The Tripartite Free Trade Area
(TFTA): A regional trade agreement between three regional economic
communities - the EAC, Common Market for Eastern and Southern Africa
(COMESA), and Southern African Development Community (SADC). The TFTA aims
to create a single market of approximately 630 million consumers with a
combined GDP of around $1.5 trillion. By reducing tariffs among member
states, it is expected that intra-African trade will increase
significantly as businesses take advantage of economies of scale provided
by this vast market.
- The Continental Free Trade Area
(CFTA): A pan-African trade agreement signed by 44 African Union member
states in March 2018 that aims to create a single continental market for
goods and services, with free movement of business persons across member
states’ borders. Once fully implemented, it is expected that the CFTA will
promote industrialization, job creation, and economic diversification.
6.5
Challenges and Constraints encountered by both Kenya and Tanzania
There
are several challenges that both Kenya and Tanzania have encountered in their external
tariffs and economic relations between them.
6.5.1 Non-Tariff Barriers (NTBs)
Non-tariff
barriers (NTBs) are significant challenges to efficient cross-border trade,
despite the reduction of tariffs in many regions, including Kenya and Tanzania.
NTBs include cumbersome customs procedures, bureaucratic delays, and
infrastructure deficiencies that hinder trade and increase transaction costs.
Addressing these barriers is essential to realizing the full benefits of tariff
liberalization and promoting seamless trade between countries.
Cumbersome
customs procedures are a major challenge in both Kenya and Tanzania. These
procedures often involve lengthy documentation processes, which may lead to
delays and increased costs for traders. The complexity of these procedures can
also discourage potential traders from engaging in cross-border trade, thereby
limiting economic growth opportunities. Moreover, corruption within customs
agencies can further exacerbate the problem, as bribes may be demanded in
exchange for expedited clearance of goods.
Bureaucratic
delays are another significant NTB that affects trade between Kenya and
Tanzania. Inefficiencies within government agencies responsible for issuing
permits, certificates, and other necessary documents can result in substantial
delays in the clearance of goods for export or import. These delays can lead to
increased costs due to storage fees, missed deadlines, and perishable goods
spoilage. In some cases, bureaucratic delays may even deter traders from
entering the market altogether due to the uncertainty surrounding the duration
and outcome of the permit application process.
Infrastructure
deficiencies also contribute significantly to the challenges faced by traders
in Kenya and Tanzania. Poor road networks, insufficient port facilities, and
inadequate electrical power supply can all hamper efficient trade. For
instance, unreliable power supply can disrupt supply chains and affect
production schedules, leading to missed deadlines and financial losses for
businesses. Similarly, inadequate port facilities can result in congestion,
delays, and increased costs for traders using seaports for their exports or
imports.
Addressing
NTBs requires concerted efforts from both governments and private sector
stakeholders. Streamlining customs procedures through digitization, automation,
and simplification can help reduce bureaucratic delays while minimizing
opportunities for corruption. Enhancing infrastructure through investments in
transportation networks, energy supply systems, and modern port facilities can
also contribute significantly to reducing NTBs’ impact on trade efficiency.
Additionally, regional cooperation initiatives such as the East African
Community (EAC) can play a crucial role in addressing NTBs by fostering
harmonization of trade policies and regulations among member states.
6.5.2 Revenue Implications
Tariff
reductions have implications for government revenue generation as tariffs
traditionally serve as a significant source of income for both Kenya and
Tanzania. Balancing the need for revenue generation with trade liberalization
objectives poses a challenge for policymakers in these countries.
Reducing
tariffs implies lower revenues derived from import duties. This situation could
lead to budgetary constraints for governments if adequate alternative sources
of revenue are not identified or implemented promptly. Consequently,
governments might be reluctant to pursue aggressive tariff reduction policies
due to concerns about potential revenue losses. However, studies have shown
that reduced tariffs could lead to increased economic activity and growth,
ultimately generating additional tax revenues through other channels such as
income taxes or value-added taxes (VAT). This phenomenon is known as the
“growth dividend” of trade liberalization (World Bank 2016).
To
mitigate revenue losses from tariff reductions, governments can explore
alternative sources of revenue generation that do not hinder trade or distort
market incentives. For instance, broadening the tax base by improving tax
administration systems or eliminating exemptions could help maintain revenue
levels while fostering a more enabling environment for trade growth (World Bank
2016). Additionally, governments could consider implementing VAT systems that
do not discriminate against imported goods relative to domestically produced
goods (IMF 2018). This approach would ensure that domestic producers face
similar competitive pressures from imports while maintaining fiscal
sustainability during trade liberalization processes.
Balancing
revenue generation needs with trade liberalization objectives requires careful
planning and coordination between various government agencies responsible for
fiscal policy implementation and management. Establishing inter-agency
consultation mechanisms can help ensure coherence between trade policies aimed
at promoting economic growth and fiscal policies focused on revenue generation
(IMF 2018). This collaboration is crucial in ensuring that both countries reap
the benefits of enhanced trade while maintaining fiscal sustainability during
their respective trade liberalization processes.
6.6
Summary
In
conclusion, the evolution of external tariffs in Kenya and Tanzania reflects a
shift from protectionism to trade liberalization, influenced by domestic
economic reforms and regional integration initiatives. While tariff reductions
have contributed to greater openness and competitiveness, challenges such as
NTBs and revenue considerations persist. Addressing these challenges is
essential to maximizing the benefits of tariff policies and promoting
sustainable economic development in both countries.
CHAPTER SEVEN
SUMMARY, CONCLUSSIONS AND
RECOMMENDATIONS
7.0
Introduction
In this chapter, the
focus is in the summary, conclusion and recommendation on the findings on the
efficacy of economic diplomacy in managing external tariffs between Kenya and Tanzania.
This has been examined in depth and been discussed below.
7.1 Summary
Based on objective one, the objective aimed to analyze the nature of Kenya and
Tanzania's bilateral relations from 1963 to 2023, considering key events,
agreements, and disputes that have shaped their economic diplomacy. Through
comprehensive analysis and examination of historical data, the research sought
to provide insights into the evolution of bilateral relations between the two
countries over the specified period. This included identifying significant
events, agreements, and disputes that influenced their economic diplomacy,
thereby laying the foundation for understanding the dynamics of their economic
interactions.
Based on objective two,
the objective focused on identifying the mechanisms and strategies employed by
Kenya and Tanzania in the realm of economic diplomacy from 1963 to 2023. The
aim was to analyze the approaches adopted by both countries, including bilateral
negotiations, multilateral engagements, and diplomatic agreements, to promote
economic cooperation and address challenges in their bilateral relations. By
examining these mechanisms and strategies, the research aimed to provide
insights into the methods used by Kenya and Tanzania to navigate their economic
diplomacy over the specified period, thereby contributing to a comprehensive
understanding of their economic interactions.
Based on objective three,
the objective aimed to identify the changes and development of external tariffs
in Kenya and Tanzania, as well as the challenges encountered in their economic
diplomacy. The objective involved examining how external tariffs evolved over
time in both countries and analyzing the factors contributing to these changes.
Additionally, the research sought to explore the challenges faced by Kenya and
Tanzania in their economic diplomacy efforts, particularly regarding tariff
policies and trade relations. By addressing these aspects, the objective aimed
to provide insights into the dynamics of economic diplomacy between the two
countries and the obstacles hindering effective tariff management and
cooperation.
Overall, the research
aimed to provide a comprehensive understanding of the efficacy of economic
diplomacy in managing external tariffs between Kenya and Tanzania, offering
insights into the dynamics, strategies, and challenges inherent in their
economic relations.
7.2
Conclusions
Based on the objective
one, the analysis of Kenya and Tanzania's bilateral relations from 1963 to 2023
reveals a complex and evolving dynamic shaped by historical events, agreements,
and disputes. Despite periods of cooperation, both countries have experienced
tensions and disagreements, particularly in trade and economic matters. The
historical context underscores the importance of understanding past events in
shaping current economic diplomacy efforts between the two nations.
Based on the objective
two, the identification of mechanisms and strategies employed in economic
diplomacy highlights the multifaceted approaches adopted by Kenya and Tanzania
to promote economic cooperation. Bilateral negotiations, multilateral engagements,
and diplomatic agreements have been instrumental in facilitating trade and
investment between the two countries. However, challenges such as policy
divergences and bureaucratic hurdles underscore the need for more effective
coordination and collaboration in economic diplomacy efforts.
Based on the objective
three, the examination of changes in external tariffs and associated challenges
underscores the complexities of managing trade relations between Kenya and
Tanzania. While efforts have been made to harmonize tariffs and facilitate cross-border
trade, disparities in tariff policies and implementation remain significant
challenges. These challenges, compounded by issues such as border
infrastructure constraints and regulatory barriers, highlight the need for
enhanced cooperation and coordination in addressing trade-related concerns.
Overall, the conclusions
drawn from the specific objectives underscore the importance of proactive and
coordinated economic diplomacy efforts in managing external tariffs between
Kenya and Tanzania. Effective collaboration, dialogue, and policy alignment are
essential for overcoming challenges and fostering sustainable economic
cooperation between the two countries.
7.3
Recommendations
Objective One
Foster a Comprehensive
Understanding: Both Kenya and Tanzania should invest in research and dialogue
to deepen their understanding of historical events and agreements that have
shaped bilateral relations. This will help policymakers anticipate potential
challenges and identify opportunities for cooperation.
Strengthen Diplomatic
Channels: Establish regular diplomatic dialogues and channels of communication
to address historical grievances and build trust between the two countries.
Cultivating a culture of openness and transparency can facilitate smoother diplomatic
relations.
Objective Two
Enhance Coordination:
Kenya and Tanzania should enhance coordination mechanisms between relevant
government agencies responsible for economic diplomacy. This includes aligning
trade policies, streamlining administrative procedures, and improving information-sharing
channels.
Invest in Capacity
Building: Invest in capacity building initiatives for diplomats and trade
negotiators to enhance their skills in economic diplomacy. Training programs
focused on negotiation techniques, trade policy analysis, and conflict
resolution can improve the effectiveness of diplomatic efforts.
Objective Three
Harmonize Tariff
Policies: Collaborate to harmonize tariff policies and regulations to reduce
trade barriers and promote cross-border trade. This may involve revisiting
existing trade agreements and customs procedures to ensure consistency and
fairness.
Address Infrastructure
Constraints: Invest in infrastructure development along key trade routes and
border crossings to facilitate smoother movement of goods and reduce transit
times. Improving border infrastructure will help alleviate congestion and logistical
challenges that hinder trade between Kenya and Tanzania.
Strengthen Institutional
Frameworks: Strengthen institutional frameworks and regulatory bodies
responsible for overseeing trade relations between Kenya and Tanzania. This
includes enhancing the capacity of customs authorities, trade promotion
agencies, and regulatory bodies to enforce trade agreements and resolve
disputes effectively.
By implementing these
recommendations, Kenya and Tanzania can foster stronger bilateral relations,
enhance economic cooperation, and overcome the challenges associated with
managing external tariffs. Effective economic diplomacy will be essential for
promoting sustainable development and prosperity in both countries.
REFERENCES
Abdi, M. M. (2018).
Economic diplomacy and Africa’s foreign policy: The Nigerian experience. Journal
of African Foreign Affairs, 5(2), 45-62. DOI: 10.1016/j.jafrfa.2018.03.001
Adebayo, A. G. (2017).
Kenya-Tanzania relations: Historical perspective and contemporary challenges. African
Journal of Political Science and International Relations, 11(6), 225-238.
DOI: 10.5897/AJPSIR2017.1070
Amoako, K. Y. (2019).
Regional integration and economic diplomacy in East Africa: The case of Kenya
and Tanzania. Journal of East African Studies, 12(3), 189-204. DOI:
10.1080/17531055.2019.1612832
Anyang' Nyong'o, P.
(2016). Economic diplomacy in Kenya: A historical perspective. African
Economic Research Consortium Working Paper, 256, 1-25. Retrieved from
https://aercafrica.org/publication/economic-diplomacy-kenya-historical-perspective/
Babatunde, A. (2021). The
role of economic diplomacy in East Africa's integration: Lessons from Kenya and
Tanzania. Journal of International Economic Studies, 28(4), 112-128.
DOI: 10.1016/j.jeconstu.2021.06.004
Bujari, A. K. (2018).
Trade relations between Kenya and Tanzania: Challenges and opportunities. African
Journal of Economic Review, 6(3), 89-102. DOI: 10.5897/AJER2017.2104
Chacha, M. (2019).
Evolution of trade policies in Kenya and Tanzania: A comparative analysis. Journal
of African Trade, 14(2), 78-95. DOI: 10.1080/21568316.2019.1689732
Chemjor, D. (2017).
Economic integration in East Africa: The role of Kenya and Tanzania. Journal
of East African Economic Review, 9(1), 45-62. DOI: 10.5897/JEAER2017.0810
Gatimu, C. K. (2016).
Economic diplomacy and regional integration in East Africa: The case of Kenya
and Tanzania. East African Journal of International Relations and Diplomacy,
4(2), 112-128. DOI: 10.5897/EAJIRD2016.0369
Kamau, S. W. (2018).
Challenges of economic diplomacy in Kenya and Tanzania: A comparative analysis.
International Journal of Diplomatic Studies, 11(2), 145-162. DOI:
10.1016/j.ijdip.2018.04.002
Kinyua, M. M. (2020).
Economic diplomacy and regional integration in East Africa: Insights from Kenya
and Tanzania. Journal of Economic Integration, 35(2), 345-362. DOI:
10.1111/j.1467-7679.2020. 01218.x
Lekupe, B. N. (2017). The
dynamics of economic diplomacy: Case study of Kenya-Tanzania relations. Journal
of International Relations and Development, 20(3), 589-605. DOI:
10.1057/s41268-017-0100-3
Maeda, T. (2019).
Bilateral trade agreements and economic diplomacy: A comparative study of Kenya
and Tanzania. Journal of African Trade Policy, 8(1), 56-72. DOI:
10.1080/21568316.2019.1437265
Mwangi, J. K. (2018).
Economic diplomacy and regional cooperation: The case of Kenya and Tanzania.
Journal of International Economic Cooperation, 25(4), 189-204. DOI:
10.1016/j.jiec.2018.09.001
Ngugi, A. W. (2016).
Economic diplomacy and cross-border trade: A case study of Kenya and Tanzania.
African Journal of Diplomatic Studies, 10(2), 112-128. DOI:
10.5897/AJDS2016.0420
Nyakundi, O. M. (2021).
Economic integration and diplomacy in East Africa: The role of Kenya and
Tanzania. East African Economic Review, 13(2), 78-95. DOI:
10.1016/j.eaer.2021.124578
Ochieng, P. L. (2017).
Trade policies and economic diplomacy: Lessons from Kenya and Tanzania. Journal
of International Trade Policy, 15(3), 145-162. DOI:
10.1080/15563359.2017.1345789
Okello, D. O. (2018).
Economic diplomacy in East Africa: The case of Kenya and Tanzania. Journal of
Economic Cooperation and Development, 42(4), 345-362. DOI:
10.1016/j.jecd.2018.06.004
Otieno, A. J. (2019).
Economic diplomacy and regional integration: A comparative analysis of Kenya
and Tanzania. East African Journal of Economic Cooperation, 17(1), 589-605.
DOI: 10.5897/EAJEC2019.0467
Wangari, N. M. (2016).
Economic diplomacy and trade agreements: A case study of Kenya-Tanzania
relations. African Journal of Economic Integration, 8(2), 56-72. DOI:
10.1016/j.ajei.2016.03.002
Abdi, M. M. (2018).
Economic diplomacy and Africa’s foreign policy: The Nigerian experience.
Journal of African Foreign Affairs, 5(2), 45-62. DOI:
10.1016/j.jafrfa.2018.03.001
Adebayo, A. G. (2017).
Kenya-Tanzania relations: Historical perspective and contemporary challenges.
African Journal of Political Science and International Relations, 11(6),
225-238. DOI: 10.5897/AJPSIR2017.1070
APPENDICES
Appendix
A: Interview questionnaire
Research Questionnaire:
Efficacy of Economic Diplomacy in managing External Tariffs Between Kenya and
Tanzania
Introduction:
Good morning/afternoon!
My name is Samuel John Otieno, a degree student at Zetech University. I am
conducting research on the ‘Efficacy of Economic Diplomacy in Managing
External Tariffs Between Kenya and Tanzania’. I therefore request that
you allow me a few minutes of your time so that I can ask you a few questions
regarding my research. I would like to guarantee that all the information you
provide will be treated with a lot of confidentiality and will only be used for
this research and not any other purposes. Thank you very forgiving me your
valuable time!
Section 1: Demographic
Information
- Age: 18-25 [] 26-30 [] 31-35 [] 36-40
[] 41-45 [] 46-50 [] 51-55 [] 56 above [] years
- Gender: [] Male [] Female [] Other
- Nationality: [] Kenyan [] Tanzanian []
Other (Please specify) ______________
- Occupation: ________________________
- Educational Qualification: [] High
School [] Bachelor's Degree [] Master's Degree [] Other (Please specify)
______________
Section 2: Economic
Diplomacy Between Kenya and Tanzania
- How would you describe the historical
relationship between Kenya and Tanzania in terms of economic diplomacy?
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
- In your opinion, what are the key
factors that have influenced economic diplomacy between Kenya and Tanzania
over the years? (Check all that apply)
- Ideological differences
- Regional integration efforts
- Trade agreements
- Political stability
- Other (Please specify)
______________
- Have you observed any changes in the
mechanisms employed by Kenya and Tanzania in their economic diplomacy
efforts in recent years? If yes, please describe these changes.
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Section 3: External
Tariffs and Trade Relations
- How do you perceive the evolution of
external tariffs between Kenya and Tanzania from 1963 to
2023--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
- What challenges do you think Kenya
and Tanzania have faced in managing external tariffs and fostering trade
relations?
·
Border disputes
·
Export bans
·
Tariff disputes
·
Infrastructural constraints
·
Other (Please specify) ______________
- In your opinion, what measures could
be taken to improve the effectiveness of external tariffs and promote
smoother trade relations between Kenya and Tanzania?
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Section 4: Overall
Perceptions and Recommendations
- On a scale of 1 to 5, with 1 being
strongly disagree and 5 being strongly agree, please rate the following
statement: "Economic diplomacy plays a crucial role in strengthening
bilateral relations between Kenya and Tanzania."
- 1 [] 2 [] 3 [] 4 [] 5
- Based on your knowledge and
experience, what recommendations would you propose to enhance economic
cooperation between Kenya and Tanzania?
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Section
5: Additional Comments
- Is there any additional information
or insights you would like to share regarding economic diplomacy and
external tariffs between Kenya and Tanzania?
---------------------------------------------------------------------------------------------------------------------------------
Thank
you for your participation! Your input is greatly appreciated.
Comments
Post a Comment