WT/TPR/M/384

8 May 2019

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Trade Policy Review Body 20 and 22 March 2019

TRADE POLICY REVIEW

EAST AFRICAN COMMUNITY (EAC)

MINUTES OF THE MEETING

Chairperson: H.E. Mr Eloi Laourou (Benin)

CONTENTS

1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ...... 2 2 OPENING STATEMENT BY THE SPOKESPERSON OF THE EAC MEMBER COUNTRIES ...... 4 3 STATEMENT BY THE DISCUSSANT ...... 7 4 STATEMENTS BY MEMBERS ...... 10 5 REPLIES BY THE SPOKESPERSON OF THE EAC MEMBER COUNTRIES AND ADDITIONAL COMMENTS ...... 37 6 CONCLUDING REMARKS BY THE CHAIRPERSON ...... 50 7 ELECTION OF A NEW CHAIRPERSON OF THE TPRB ...... 52

Note: Advance written questions and additional questions by WTO Members, and the replies provided by the EAC Member countries are reproduced in document WT/TPR/M/384/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.

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1 INTRODUCTORY REMARKS BY THE CHAIRPERSON

1.1. The third joint Review of East African Community (EAC) Member countries was held on 20 and 22 March 2019. The Chairperson, H.E. Mr Eloi Laourou (Benin), welcomed the delegations of the five EAC Member countries headed by: H.E. Mr. Jean Marie NIYOKINDI, Minister of Trade, Industry and Tourism, for ; Dr. Chris KIPTOO, Principal Secretary, State Department of Trade, for ; H.E. Ms. Soraya M. HAKUZIYAREMYE, Minister of Trade and Industry, for ; Dr. Edwin Paul MHEDE, Deputy Permanent Secretary, Ministry of Industry and Trade, for Tanzania; and H.E. Ms. Amelia Anne KYAMBADDE, Minister of Trade, Industry and Cooperatives, for . The Chairperson also welcomed the delegation of the EAC Secretariat headed by Mr. Kenneth BAGAMUHUNDA, Director General (Customs and Trade); and the discussant, H.E. Dr. Athaliah Lesiba MOLOKOMME (Botswana). The EAC Member countries advised that H.E. Ms. Soraya M. HAKUZIYAREMYE, Minister of Trade and Industry of Rwanda, would act as the spokesperson in her current capacity of Chair of the Council of Ministers of EAC.

1.2. The Chairperson reminded Members that the EAC Secretariat, the United Nations Industrial Development Organization and South Sudan were participating as observers in this TPR.

1.3. The Chairperson recalled the purpose of trade policy reviews and the main elements of procedures for the meeting. The report by the EAC Member countries is contained in document WT/TPR/G/384 and that of the WTO Secretariat in document WT/TPR/S/384.

1.4. Questions by the following delegations were submitted in writing before the deadline: ; ; Singapore; ; ; Ukraine; Colombia; ; Brazil; European Union; Japan; Australia; and Thailand. The following delegations submitted written questions after the deadline: Indonesia; Korea, Rep. of; and .

1.5. At the time of the previous Trade Policy Review of the five EAC Member countries in 2012, Members had praised them on their efforts towards the full implementation of their customs union. They had also been praised for their active engagement in the WTO. On the other hand, notwithstanding their noticeable efforts, Members had noted with concern that the smooth functioning of the EAC customs union, in particular the free movement of goods and services, had continued to be constrained by poor infrastructure, non-harmonized technical regulations and SPS measures, and cumbersome administrative procedures. EAC Member countries had been encouraged to undertake necessary reforms to unlock trade opportunities and productivity growth within the region.

1.6. Overlapping membership in regional trade agreements (RTAs) by EAC Member countries had also been highlighted as a serious challenge. Members had questioned the efficiency of their trade policies in the absence of a harmonized approach. EAC Member countries had also been urged to undertake appropriate steps to comply with their various WTO commitments, including notifications, tariff bindings, and protection of intellectual property rights; and to adopt business-friendly measures to further diversify their economies.

1.7. Turning to the current Review, as indicated in the Secretariat's report, EAC Member countries' GDP grew at relatively high annual rates. With a few exceptions, all recorded annual GDP growth rates exceeding 5% during most years of the review period. Increased public investment in transport and energy infrastructures, combined with a good performance in and services, were the main determinants of . The sustained performance in the region led to a significant improvement in key social indicators in most EAC Member countries, in Rwanda in particular; and Kenya acquired the status of lower-middle-income country, as per the 's classification.

1.8. In general, trade indicators were moderate. The ratio of trade in goods and services (including intra-regional trade) to GDP averaged 50% during the review period. Intra-EAC merchandise trade remained low at 10% of total trade during the same period, reflecting, inter alia, narrow-based production systems dominated by a few products, and the magnitude of non-tariff barriers within the region.

1.9. As was the case during the previous Review, overlapping membership in RTAs continued to challenge the implementation of effective trade policies in the EAC. The tripartite agreement, aimed at harmonizing policies between the EAC, the Common Market for Eastern and Southern Africa

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(COMESA), and the Southern African Development Community (SADC), was concluded in 2015 but it was not yet fully implemented. Customs tariffs, including concession schemes, were substantially harmonized within the EAC.

1.10. On other trade policy topics, while significant progress was made on the harmonization of customs procedures, national customs administrations continued to use different computer systems. Efforts were ongoing on the harmonization of SPS and TBT issues, but gaps remained concerning a more conducive trade and business framework. Sectoral policies were not harmonized. However, as pointed out in the Secretariat's report, the EAC was envisioning regional programmes on agriculture and services.

1.11. Finally, issues of interest to Members, as raised in their advance written questions, included: the status of the implementation of the Trade Facilitation Agreement, at both national and regional levels; plans to harmonize and streamline customs procedures within the EAC; administration of the Common External Tariff and other duties and charges at the regional level; and the fulfilment by EAC Member countries of their notification obligations and compliance with their tariff bindings at the WTO.

1.12. Members also showed interest in, inter alia, negotiations and membership of RTAs; steps taken by EAC Member countries during the review period to harmonize macroeconomic issues; reforms regarding participation by women in the economy, the modernization of the financial sector, and poverty alleviation; the legal framework for foreign direct investments; the implementation of effective regulatory frameworks on SPS and TBT; the protection of intellectual property rights, and membership of relevant international frameworks; and sectoral issues on, inter alia, agriculture and services.

1.13. This meeting was a good opportunity for Members to discuss in greater detail issues of interest to them and of systemic importance to the multilateral trading system. The Chairperson was looking forward to a productive exchange of views.

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2 OPENING STATEMENT BY THE SPOKESPERSON OF THE EAC MEMBER COUNTRIES (H.E. MS. SORAYA M. HAKUZIYAREMYE)

2.1. It is a great honour and privilege for me to deliver this statement on behalf of the East African Community Partner States (EAC) consisting of following member States:

• The Republic of Burundi; • The Republic of Kenya; • The Republic of Rwanda; • The Republic of Uganda; and • The United Republic of Tanzania.

2.2. I bring to your attention that though the Republic of South Sudan is a Member of the EAC since 2016, it is presently not part of this Trade Policy Review as its WTO accession process is still ongoing.

2.3. At the onset, I would like to welcome all delegates present here this week for the third joint Trade Policy Review of the East African Community Partner States. I wish to thank the Chairperson for his opening remarks. I further wish to thank H.E. Dr. Athalia Lesiba Molokomme, Ambassador and Permanent Representative of Botswana, for agreeing to be the discussant for this third joint Trade Policy Review of EAC Partner States.

2.4. Let me also extend our gratitude to the WTO Secretariat for its assistance to the EAC Secretariat and Partner States in preparing this Review. Further, I would like to thank all WTO Members that showed an interest in this Review and for the questions posed to us in advance. We have endeavoured to answer all the questions as per the timeframes in the procedural guidelines.

2.5. EAC Partner States are now undertaking the third joint Trade Policy Review, once again, as a Customs Union and a Common Market. We are of the view that the transparency exercise that the trade policy review provides is of great value to all of us. We therefore re-affirm our commitment to submitting our trading regimes for review within the context of our obligations under the WTO. This commitment is consistent with the rights and objectives of the Trade Policy Review Mechanism (TPRM) as provided for in Annex 3 of the establishing the WTO.

2.6. I wish to remind Members that the five countries presently being reviewed have a total land area of 1.7 million square kilometres, a combined population of 168 million people and a combined GDP of USD 160 billion. Guided by the Treaty for the Establishment of the EAC which came into force in July 2000, the EAC Partner States are pursuing market-oriented economic policies whose overall vision is to create wealth, raise standards of living of their people and enhance the international competitiveness of the region through increased production, trade and investment.

2.7. Since the second joint Trade Policy Review in 2012, the membership of the EAC has grown with South Sudan joining the Community in September 2016.

2.8. The EAC has so far made impressive achievements in adhering to the broader integration framework, comprising of the four stages which are outlined in the Treaty, beginning with a customs union and a common market, a monetary union and ultimately a political federation.

2.9. Between 2012 and 2017, intra-regional trade between the EAC Partner States registered a growth of 17.1%. This growth represents about 19.4% of the region's share in total trade with the rest of the world. It is clear that there is still a lot of potential to develop the internal market in the region and collectively exploit external market opportunities.

2.10. Towards this end, the EAC countries have put in place a number of strategic interventions, to further consolidate the goals of the Customs Union and to address the challenges experienced in its implementation. The interventions include the development of a new Standard Gauge Railway line whose objective is to facilitate faster clearance and improvement in cargo movement along the two corridors (Northern and Central) and the implementation of the Single Customs Territory (SCT). The Single Customs Territory is a major milestone towards the attainment of a fully-fledged Customs Union due to the following:

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• The time and cost of transporting goods from the port of Dar es Salaam to and Kigali has reduced from 21 to 5 days, and from the port of Mombasa to Kampala has reduced from 18 days to 4 days; the cost has also reduced from USD 3,100 to USD 1,025;

• Partner States Customs systems have been interconnected and information sharing has improved; multiple entries and documents have been replaced by use of a single declaration; and

• Customs systems in the region have been upgraded to facilitate clearance of cargo under SCT for intra-trade, imports and exports regimes.

2.11. To consolidate and sustain the gains from regional integration, there are concerted efforts among the Partner States to remove administrative and infrastructure related barriers to trade. This includes operationalization of One Stop Border Posts, of which ten out of twelve are now fully operational and have facilitated economic operators whilst also translating into minimal time lost and lower transaction costs. A number of other border reforms are ongoing through the regulatory authorities aimed at ensuring that border operations are well coordinated and work seamlessly for the purposes of enhancing trade facilitation.

2.12. The resolve for elimination of trade related impediments has been further strengthened through the enactment of the EAC Non-Tariff Barriers (NTBs) Act in 2017 and the implementation regulations. In addition, we have now put in place the Competition Authority and also strengthened measures for the implementation of the Standardization Act so as to address challenges arising from non-recognition of other partner States' standards and the different regulatory and institutional requirements that have not been harmonized across the region. These efforts promote the region's business environment and competitiveness by ensuring that commitments are not breached by new NTBs.

2.13. The EAC Partner States are also in the process of undertaking a comprehensive review of the Common External Tariff and the EAC Customs Management Act 2004 whose objective is in three parts:

• Align the tariff structure and rates to respond to the global changes of trade and current economic environment in EAC;

• Eliminate the use of stays of application of EAC Common External Tariff (CET) that destabilize the harmonized EAC CET; and

• Review the sensitive list and its applicable rates taking into consideration the supply capacity within the region.

2.14. The EAC Partner States have also articulated a shared objective of investment policies in order to make the region attractive to investors. At the regional level, a model investment treaty has been adopted that can be the basis for negotiating investment treaties with third Parties.

2.15. The ongoing policy interventions have witnessed greater confidence emerging from key stakeholders such as the economic operators in the region who are the ultimate beneficiaries of the integration efforts.

2.16. The EAC partner States are implementing the Common Market Protocol which came into force on 1st July 2010. The Protocol seeks to improve trade in goods, promote free movement of factors of production and services, and guarantees right of establishment and residence.

2.17. Notable progress has been made in building the regional agenda for trade in services. Partner States have agreed to liberalize seven out of twelve services sectors and will start negotiations on liberalization of the five remaining sectors in due course. A further step has been reached for professional services, a key sub-sector within the initial liberalization. Mutual Recognition Agreements (MRAs) covering recognition of academic and professional qualifications have been agreed for accountants, architects, engineers and veterinarians. Two additional MRAs (advocates and land surveyors) are awaiting signature, while negotiations for pharmacists are underway. The

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EAC is now in the process of developing an EAC multi-sector Monitoring System for the removal of Restrictions to Trade in Services.

2.18. On regional trade agreements, the partner States have successfully completed negotiations on phase I on goods with COMESA and SADC under the Tripartite Free Trade Area and with all the African countries under the African Continental Free Trade Area Agreement (AfCFTA). Both agreements are presently awaiting implementation pending ratification by the required number of Members and Partner States.

2.19. All the EAC Partner States are committed to the multilateral trading system. With regard to implementation of the WTO Trade Facilitation Agreement, all the partner States have notified category A measures, and prepared a regional plan for implementation of category B and C measures. The EAC is also in the process of operationalizing its trade remedies regime and work to improve the institutional mechanisms and institutional infrastructure is ongoing.

2.20. The EAC is at an advanced level of integration and presents tremendous trade and business opportunities. Over the review period, EAC Partner States have made significant progress in improving the business and investment environment. Investment opportunities are available in the sector such as in ICT, finance, insurance, tourism, renewable energy, infrastructure (railway, roads and ports), as well as in agro-processing and mining.

2.21. I once again wish to thank Members of the WTO for the interest shown in the EAC and specifically for the large number of questions received. Fifteen countries submitted questions in advance. We will endeavour to provide answers to additional questions during this week and provide answers to the remaining questions within the prescribed period of one month as provided by the rules of procedure. We look forward to a fruitful exchange in this regard.

2.22. With these remarks, we welcome Members of the WTO to our third joint Trade Policy Review. I thank you all for your attention.

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3 STATEMENT BY THE DISCUSSANT

3.1. I would like to add my welcome to the distinguished Ministers and delegations of the Member States of the East African Community led by H.E. Ms Soraya HAKUZIYAREMYE, Minister of Trade and Industry of Rwanda. It is my pleasure and honour to have been appointed discussant for the third joint Trade Policy Review of the EAC countries.

3.2. I thank the EAC Members and the WTO Secretariat for their comprehensive reports. My gratitude especially goes to the Secretariat for their facilitation of my role and valuable support in this regard.

3.3. As we are all aware, the primary objective of the Trade Policy Review Mechanism is to promote transparency and predictability in the trade policies and practices of the Member States, thus contributing to the smooth functioning of the multilateral trading system. It is hoped that the debates and feedback from the Member States will be of particular use to the EAC countries in their future development strategies.

3.4. It should be pointed out that although the East African Community (EAC) consists of Burundi, Kenya, Rwanda, Tanzania, Uganda, and South Sudan, South Sudan is not yet a WTO Member, and has therefore not been covered in the TPR reports on this occasion.

3.5. However, I would like to recognize South Sudan's resolve through challenging times, and their persistent demonstration of trust in trade as a tool to promote peace and development. A young democracy established only in 2011, South Sudan has already acceded to the EAC and has applied to become a WTO Member. This is truly commendable and encouraging especially at this time when multilateralism is facing challenges.

3.6. To return to the business at hand, it is pleasing to learn that the EAC countries' integration agenda remains steadfast and anchored on the establishment of a Customs Union, a Common Market, a Monetary Union, and ultimately a political federation of the East African States. The continuing reforms by the EAC countries to realize these broader objectives is commendable and demonstrates a commitment by the Community to play a leading role in the African continent's integration agenda.

Major economic developments

3.7. We learn from the Secretariat's report that the EAC countries' economic performance was relatively strong during the review period, with most of the economies recording annual real GDP growth rates in excess of 5% over the period 2011–2017. This is despite the continued sluggish and uneven global economic recovery.

3.8. Most notably, Kenya's good economic performance helped it to acquire the status of a lower- middle-income country in 2014, according to the World Bank's classification.

3.9. While the economy of Burundi was severely affected by the political developments since 2015, there appear to have been noticeable signs of recovery in 2016 and 2017 for which we commend them.

3.10. The EAC countries continue to work towards macroeconomic convergence, through the ongoing reform efforts aimed at establishing a monetary union by 2024. However, we also learn from the Secretariat report that core macroeconomic policies are not yet harmonized and remain country-specific. The Secretariat's report further points out that the EAC countries experienced highly volatile , fiscal deficits, and their currencies continued to depreciate against the major currencies during the review period. Given these challenges, it is desirable that the EAC countries continue to pursue macroeconomic reforms. Inflation control, reducing fiscal deficits and maintaining macroeconomic stability are obviously a key part of this effort.

3.11. The Secretariat's report has also identified overlapping membership of regional economic communities by individual EAC countries as a persistent challenge that further complicates the national trade regimes in the period under review. It is therefore encouraging to see the ongoing efforts towards rationalization and regional integration. This is reflected in the conclusion of

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3.12. It is through such a robust regional integration agenda that the EAC countries can achieve their ambition to realize structural economic transformation and industrial development in Africa.

Trade performance

3.13. On the trade front, we learn from the Secretariat report that agriculture and services remain the key drivers of the economies of the EAC countries. Agriculture plays a key role in the economies of all EAC member States, in terms of contribution to GDP, livelihoods, and foreign exchange earnings. The services sector constitutes the main contributor to GDP in all EAC countries. However, its potential remains untapped. This would explain Members' significant interest in the EAC plans to liberalize or improve GATS commitments, liberalization, plans for negotiations on domestic regulation, among others.

3.14. We note from the Secretariat report that since the last Review of EAC members, the CET average rate slightly increased from 12.7% in 2011 to 12.9% in 2018, and that the CET distribution has not changed considerably. Tariff bindings vary considerably in terms of coverage of tariff lines and levels of bound rates among the EAC countries. For example, Rwanda has bound 100% of its tariff lines. However, the large gap between the bound and applied MFN rates and the absence of bindings for over 70% of tariff lines (except Rwanda) leaves EAC members great flexibility to increase MFN duties, thus reducing the predictability of the tariff regime. Needless to say, this is a matter that requires attention.

3.15. A case can thus be made for the need for a more progressive balance between the pursuit of development imperatives and ensuring predictability within regional trade configuration and by extension the Multilateral Trading System.

3.16. We learn from the Secretariat report that despite a trade-to-GDP ratio of about 50%, intra-EAC trade in goods remains low at around 10% of the total merchandise trade of the Community over the review period. The low intra-EAC trade in goods reflects, inter alia, informal or unrecorded cross-border trade; limited infrastructure development; and non-tariff barriers including cumbersome administrative procedures.

3.17. On the other hand, the Secretariat report informs that the bulk of EAC trade with the rest of the world remains high at nearly 90%, with relatively undiversified import and export destinations being mainly major developing and developed countries, including in Africa. The latter can be viewed in a positive light to indicate a significant potential or opportunity for further regional and continental integration.

3.18. The need for concerted steps to improve the collection of data on informal trade where many citizens, especially women are active, cannot be overemphasized and can help us all better capture and recognize intra-EAC trade. This is especially important in view of the recognition of the importance of achieving greater gender equality by the EAC countries at regional and national levels. I encourage EAC countries, both at regional and national level, to extend this to the links between trade policy, women's economic empowerment, and inclusive development.

3.19. We learn from the Secretariat report of the high costs of doing business due, inter alia, to a high regulatory burden and increased import competition, that is characterized by limited value addition, and some related to energy-supply challenges.

3.20. It is, however, encouraging to also learn of the positive strides the EAC countries are undertaking to introduce reforms to improve the doing business environment to attract investment across the region, including through trade facilitation initiatives aimed at enhancing intra-EAC trade and deepen integration.

3.21. In addition, competition is regulated at both regional and national levels which helps the EAC countries to effectively deal with all competition issues having cross-border effects. This positive development can help ensure competition and help reduce the cost of doing business within the region.

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3.22. It is encouraging to learn of the EAC countries' commitment to the multilateral trading system and ensuring that it provides for the equitable distribution of benefits through the effective integration of the lessor developed countries, particularly the LDCs into the multilateral trading system; and the continuing need for the development dimension of the Doha Development Agenda. It can only be hoped and encouraged that Members work towards finding a common purpose to achieve progress and development for all.

3.23. It is also reassuring to learn of the EAC countries' concerted efforts to use Aid for Trade as a tool to drive the expansion and diversification of trade in value-added goods and services, and improvement in investment inflows through the adoption of the Regional Aid for Trade strategy in 2017. It is hoped that this tool could be instrumental in addressing some of the bottlenecks and developmental challenges that remain stumbling blocks for the EAC countries to realize their full potential.

3.24. It is also pleasing to learn from the Secretariat report of the growing trend of Aid for Trade flows in the region; this support from the development partners is most encouraged, especially if it is directed to the countries that need it most.

Conclusion

3.25. I have in this discussion attempted to highlight some of the prominent issues that that are central and have also drawn the attention of a number of WTO Members, and thus key to understanding and appreciating the trade policies of EAC countries.

3.26. I encourage Members to support the EAC countries as they put in place policy initiatives and programmes that would stimulate structural economic transformation and sustainable development, for the benefit of their people, and the Multilateral Trading System.

3.27. I look forward to an interesting and fruitful exchange of views on these and other issues that I am sure will arise and enlighten us in the coming days.

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4 STATEMENTS BY MEMBERS

ICELAND

4.1. As the WTO report notes, the EAC has maintained solid growth in recent years, with an annual average growth rate of around 6% between 2013 and 2017, more than double the African average. Iceland also welcomes that the EAC countries continue to make considerable reforms to improve the doing business environment, such as by improving the customs processing system and other trade facilitation initiatives.

4.2. On the occasion of the 11th in Buenos Aires in 2017, more than 120 WTO Members and observers launched a joint declaration on women and economic empowerment. The declaration aims at, inter alia, sharing best practices and working together at the WTO to remove barriers for women's economic empowerment and increase their participation in trade. This declaration is the fruit of the Trade Impact Working Group that was established under the auspices of the International Gender Champions – Geneva, and that Iceland is co-chairing with Botswana and the ITC.

4.3. The Trade Policy Review provides an excellent opportunity for an exchange of information and best practices on women and trade. Iceland submitted advance written questions on the participation of women in the economy of the EAC countries, as well as on initiatives the EAC member States are undertaking to make economic growth more inclusive. We wish to thank the EAC for the detailed and informative replies to our written questions. We will review the answers thoroughly and request clarifications as necessary during the course of this TPR. The answers are indeed very useful as we implement the joint declaration and gather best practices.

4.4. Iceland appreciates the active engagement of the member States of the East African Community in the WTO and their continued support for the multilateral trading system. We wish the delegation of the East African Community every success for their third joint Trade Policy Review.

CANADA

4.5. Canada echoes others in welcoming the East African Community to Geneva and commends the East African Community for its strong overall economic performance in recent years. Indeed, according to the IMF, Rwanda, Tanzania, Kenya and Uganda are all projected to be among the 25 fastest growing economies in 2019, with growth rates exceeding 6% per annum.

4.6. And to help maintain this momentum, we applaud Kenya, Rwanda, and Uganda for having deposited their instruments of acceptance for the WTO Trade Facilitation Agreement. To assist in trade facilitation in the region Canada is proud to be a donor partner for Trademark East Africa. Our work with Trademark East Africa helped countries of the East African Community to regain speed, integrate and rationalize their management of border operations; and doing it while ensuring that gender equality is incorporated into more efficient border management systems. This is beneficial for African businesses, for food safety and security and for poverty reduction. With this in mind, we look forward to EAC members' outstanding notifications under the WTO TFA.

4.7. In addition, the Secretariat report indicates that EAC countries continue to fulfil their notification obligations at various degrees. However, there are several areas where notifications remain outstanding, for example on domestic support and export subsidies in agriculture, on safeguards, import licensing or anti-dumping. Notifications are key to ensuring transparency and mutual understanding. Canada strongly encourages EAC members with outstanding notifications to submit them at their earliest convenience.

4.8. Since the summer of 2018, Canada and a group of countries, including Kenya, are working together with the objective to engage in a meaningful exchange that aims to identify concrete actions to enhance and improve the WTO over the short, medium and long terms. Our goal is to engage additional members when appropriate to advance ideas and suggestions to the broader WTO membership for consideration. We welcome views from other EAC members as we advance in this important conversation.

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4.9. Now moving beyond WTO-specific points, Canada applauds the efforts of the membership of the to bring momentum forward on the African Continental Free Trade Area, which, once implemented, aims to boost intra-African trade by over 50%. This landmark agreement was signed by 49 countries, and Canada would like to congratulate Kenya, Rwanda and Uganda for being among the first member countries to have deposited their instruments of ratification. Canada is proud to support the development of the AfCFTA as the sole donor for the African Trade Policy Centre (ATPC), established in 2003 as part of the UN Economic Commission for Africa. The ATPC aims to strengthen African trade policy capacity, and was instrumental in advancing the AfCFTA negotiation process as a formally-mandated member of the negotiation architecture.

4.10. We also welcome the numerous measures made by EAC countries to improve their rankings on the most recent World Bank's Ease of Doing Business survey, especially with Rwanda appearing in 29th place and Kenya at 61st. We equally welcome these countries' continuing efforts and increased determination.

4.11. We take note of the EAC report, paragraph 7.3 specifically, which reiterates the members "shared view and belie[f] in democratic process, rule of law and good governance to achieve sustainable economic growth and development", and a commitment from EAC members to "continue to pursue a rules-based system through strengthening judicial systems and institutions including the national and regional courts of justice, security and defence".

4.12. Such commitment is important for Canadian companies, especially those in the national resource extraction sector, who are very interested in doing business in Africa, and need a stable and predictable business environment to do so. They need a guarantee that a signed agreement will not be rewritten or withdrawn.

4.13. Accordingly, Canada strongly believes that the best path forward to inclusive economic growth, both at home and with our international partners, is the creation of a stable and coherent regulatory environment which engenders confidence within the international investor community, especially in an environment where there is increasing competition for scarce capital.

4.14. Canada calls on any Government to ensure that implementation of or changes to taxation and other regulations respect its international obligations and existing contractual commitments, so as to build that necessary confidence. We believe this is critical to support EAC policy to provide more investment opportunities - as they are essential to the EAC's capacity to address the "daunting challenge of addressing socio-economic constraints including disease and poverty" and each country's development vision.

4.15. We look forward to further exchanges over the course of the coming days and wish the EAC and its members a successful Trade Policy Review.

SINGAPORE

4.16. We are encouraged to learn from the Secretariat report that during the period under review, the EAC WTO Members have been deepening their economic integration. These Members also recorded strong GDP growth driven by increased public investments in transport and energy infrastructures, favourable weather conditions and strategic policy interventions.

4.17. Against this backdrop, total bilateral trade in goods between Singapore and the EAC in 2018 amounted to 226.9 million SGD, which was an increase of 32% from the previous year. For bilateral trade in services in 2017, Singapore's import of services from the EAC increased by 60.6% over the previous year. Singapore's ties with many EAC countries have also strengthened in recent years, especially in the area of trade and investment. We commend the EAC's efforts to increase trade openness and connectivity, and look forward to continuing our mutual cooperation, including in port management, air services, financial services and in information communication and technology (ICT).

4.18. We note that while all EAC WTO Members have notified their Category A commitments, Burundi and Tanzania have yet to ratify the Trade Facilitation Agreement (TFA), and we hope that they will do so soon. We also note that Burundi has yet to ratify the Protocol amending the TRIPS Agreement, and hope this can be done as soon as possible.

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4.19. Turning to notifications, we are pleased that just two weeks ago, the EAC was in the spotlight in the WTO's Twitter page for increased transparency, where it was highlighted that four EAC WTO Members are among the top 10 notifiers in 2018 under the Agreement on Technical Barriers to Trade. We encourage EAC WTO Members to take steps to fulfil their outstanding notifications.

4.20. 6 We wish the EAC every success for this TPR. We would also like to thank Ambassador Laourou for his able chairmanship of the Trade Policy Review Body over the past year, and congratulate Ambassador Teehankee who will take over the chairmanship after this TPR.

UNITED STATES

4.21. We thank each of the Governments of the five EAC member countries and the WTO Secretariat for the excellent and comprehensive reports that they prepared for this review. I would also note our appreciation for the written responses to our questions submitted in advance on this meeting. Finally, we would like to extend our congratulations to South Sudan on joining the EAC in 2016. We look forward to working with South Sudan on its WTO accession process in the coming months.

4.22. Since the last Trade Policy Review of the EAC in 2012, the EAC has made substantial progress toward achieving greater regional integration, including the admission of South Sudan into the EAC, as well as the establishment of an effective customs union and continued strides toward achieving a true common market. At the same time, we recognize that EAC member countries continue to face challenges, including low intra-EAC trade, poor infrastructure conditions, and the proliferation of non-tariff barriers, as noted in the Secretariat report.

4.23. The United States will continue to support the EAC's efforts to strengthen regional economic integration and to expand trade and economic ties between the EAC and the United States.

4.24. Under the U.S.-EAC Trade and Investment Partnership and Trade Africa initiative, the United States has worked closely with the EAC to explore ways to deepen our bilateral trade and investment relationship, grow trade and investment, and identify potential building blocks towards a more comprehensive relationship over the long term.

4.25. In 2015, the United States and EAC member countries Burundi, Kenya, Rwanda, Tanzania, and Uganda signed a Cooperation Agreement on Trade Facilitation, Sanitary and Phytosanitary Measures, and Technical Barriers to Trade. The agreement has increased trade-capacity building in these key areas in EAC countries. In addition, we continue to provide financial support to the EAC Secretariat to continue its critical work of bringing the region's economies together. Through the East Africa Trade and Investment Hub, the United States works to expand and diversify bilateral trade – including under the African Growth and Opportunity Act – attract investment, create employment, and reduce food insecurity within East Africa.

4.26. Since the last review, the United States is pleased to continue a robust and vibrant trade and investment relationship with the EAC. Most exports from the EAC to the United States enter the U.S. market duty-free or on a or a preferential basis, either through the Generalized System of Preferences or under the African Growth and Opportunity Act.

4.27. We commend Kenya, Rwanda, and Uganda's ratification of the WTO Trade Facilitation Agreement (TFA), and the EAC's adoption of a regional TFA implementation plan in 2016. As the Secretariat report notes, Burundi and Tanzania have yet to ratify the TFA, which entered into force in February 2017, and the notification of a number of Category B and C commitments by Kenya and Uganda remain outstanding.

4.28. We note that Kenya has yet to notify its Category B commitments with definitive timelines, which were due to the Secretariat by 22 February 2018, nor identified its Category C commitments with the indicative time frames. We encourage all EAC member countries to ensure the timely implementation of the agreement.

4.29. We also encourage EAC member countries to continue efforts to improve implementation of the WTO agreements, including the Customs Valuation, Sanitary and Phytosanitary, and Technical Barriers to Trade Agreements. And to the extent that EAC members exceed the bound rates for

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- 13 - some tariff lines, we recommend that they begin working with the Secretariat to initiate the required compensation process.

4.30. We note that according to the Secretariat report, none of the EAC WTO member countries is a Member or an observer to the WTO Agreement on Government Procurement (GPA). Becoming an observer to the GPA would allow EAC WTO member countries to engage with other countries on matters related to government procurement while not requiring them to take on any obligations. We encourage EAC WTO member countries to become GPA observers.

4.31. Finally, we note that African leaders at the African Union Summit in July 2016 agreed to finance 25% of the cost of African Union peace support operations by imposing a WTO inconsistent 0.2% levy on selected imports. The United States does not support the use of trade measures, including a levy, to fund these operations. We encourage EAC member countries, along with all other African Union WTO Members, to provide long-overdue transparency about how they are currently financing their countries' shares of the peace fund. To the extent that African Union WTO Members are contributing via non-trade means, we would welcome that news, but again request that transparency be provided.

4.32. To conclude, the United States stands ready to continue to work with the EAC, and appreciates the opportunity to participate in this review of the EAC's trade policy. We look forward to our dialogue with the Governments of the EAC member countries, both within the WTO and on a regional and bilateral basis.

CHINA

4.33. China is glad to note that, during the review period, efforts have been made to dismantle trade barriers across this region, and considerable progress has been achieved towards regional integration. Since last review, the EAC focused on the consolidation of the customs union and the establishment of the common market. The EAC countries continue to make considerable reforms including improving customs processing system and trade facilitating infrastructure, establishment of national electronic Single Window, etc., with a view to deepening EAC's integration and providing more investment opportunities, greater transparency and predictability of trade measures of the community within the multilateral trading system.

4.34. At the bilateral level, China and Africa have embarked on a distinctive path of win-win cooperation. As Chinese President Xi Jinping said at the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) last year, Africa's development has great potential, this great continent is full of hope, China-Africa friendship and cooperation have broad vistas, and China and Africa can forge an even stronger comprehensive strategic and cooperative partnership.

4.35. Since the last review, the economic and trade cooperation between the EAC and China has maintained a strong momentum under the FOCAC initiative. China remains an important and reliable partner of the EAC in trade, investment and infrastructural development, etc. The bilateral trade volume between China and the EAC amounted to USD 12.28 billion in 2018 with a year-on-year increase of 9.4%. Meanwhile, China is a main source of FDI flows into the EAC. In 2018, the direct investment of Chinese enterprises in the EAC countries reached USD 890 million.

4.36. While applauding for the above-mentioned achievements, we hope to see further improvements. For instance, the simplification of customs procedures and documentation requirements could contribute to our economic cooperation in the future. We also encourage the EAC to continue their trade liberalization, and improve business environment with a view to enhancing transparency and predictability, as well as attracting foreign investment. Africa is one of the world's most promising regions, and we are optimistic that the EAC will bring into full play its advantages and achieve great success.

4.37. The EAC has been a strong supporter of multilateral trading system, as the report of EAC reveals, "the EAC countries remain committed to the multilateral trading system and are taking note of the current challenges facing the WTO. The member states will continue to work with likeminded countries to address the challenges". China appreciates the EAC's commitment to the multilateral trade system, and values the EAC's continued support in this regard. China looks forward to joining hands with EAC member countries and other WTO Members to contribute to an open, transparent,

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- 14 - inclusive and non-discriminatory multilateral trading system, and to build a community of shared future with extensive converging interests and high degree of interdependence.

4.38. We also noted that the Working Group on the Accession of South Sudan, another EAC Member, is going to hold its first meeting tomorrow. The accession of South Sudan will not only promote its own domestic economic reform and growth, but also strengthen the multilateral trading system. Considering the difficulties of South Sudan as an LDC, China urges Members to show flexibility in the process, and facilitate its accession according to the Decision on the Accession of Least- developed Countries.

4.39. In closing, China thanks the EAC delegation for their reply to our written questions and wishes the EAC a successful TPR.

UKRAINE

4.40. The EAC countries represent the important and promising partner for Ukraine in terms of trade and economic cooperation in the African region. Trade turnover between Ukraine and the East African Community was valued at USD 125 million in 2018 (Export = USD 92,5 million and Import= USD 31,5 million). The main articles of Ukrainian exports to the EAC were: grains, ferrous metals, fats and oils of plant and animal origin, , whereas import from the EAC included and , edible fruits and nuts, live trees and other plants.

4.41. Trade in services between our countries covers tourism, telecommunications, business services, computer and information services.

4.42. Within this TPR exercise Ukraine has raised a number of important questions on a range of issues of specific interest, covering the following topics:

• SPS-related measures; • Standards and technical regulations; • Mutual recognition procedure for veterinary vaccines and pharmaceuticals and harmonized registration system; • Investment regime; • Harmonization proposals for VAT and excise taxes rates; • Intentions to ratify the WTO Agreement on Trade Facilitation by some EAC Members; • Agricultural policy; • Functioning and the main achievements of the Tourism Finance Corporation; • Import licensing regime, etc.

4.43. Ukraine is closely monitoring the economic development of the EAC Members and attaches high importance to strengthening bilateral cooperation with the EAC wishing to build a stronger economic and trade relationship.

4.44. In conclusion, I would like to express our appreciation to the delegation of the East African Community and to the teams of the Missions of the Member countries to the WTO in Geneva for their hard work in preparing for this TPR.

4.45. We wish the EAC successful and fruitful Trade Policy Review.

COLOMBIA

4.46. We would like to begin this intervention by highlighting the progress made in the integration of the East African Community. The Secretariat Report notes that the subregion's average growth rate over the five years of the review period (2014-2017) was 5%, a fact that demonstrates how, despite the heterogeneity of its members' economies, their coordination has helped mitigate the vicissitudes of the global economy.

4.47. Inflation control is another macroeconomic issue worth mentioning. The Secretariat report notes the challenges stemming from the rise in global commodity prices, especially crude oil prices, which exerted strong upward pressure on price levels and resulted in average inflation of about 8%

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- 15 - in 2017. However, joint action by the members through monetary policy interventions and improved food supply succeeded in bringing this under control.

4.48. The goal of establishing a monetary union by 2024 is also worth noting, and there have been important milestones on that path, including the 2013 Monetary Union Protocol and the 2018 law creating the East African Monetary Institute.

4.49. However, the Secretariat report also points to institutional challenges in the integration effort, particularly with respect to harmonization of customs procedures, VAT regimes, regimes on standards and technical regulations, and intellectual property policies, among others, and the creation of a regional investment framework. These elements are all important for the continued consolidation of the regional integration process into the future.

4.50. Colombia's trading relationship with the EAC members is in its incipient stages. However, we stress the potential for future growth in our relations and our interest in continuing to learn about each other. That is why, as part of this Trade Policy Review, we submitted some questions to the EAC on issues such as customs requirements and procedures, customs valuation, standards and technical requirements, sanitary and phytosanitary measures, and intellectual property rights, and we thank them for their replies.

4.51. At the level of the individual countries, we would like to highlight some issues and developments that drew our attention in the reports prepared for this Review; these include the implementation of the Vision Burundi 2025 plan, which sets forth long-term social and economic development objectives, and the Growth and Poverty Reduction Strategy Framework.

4.52. We also note with interest the mechanisms that allow Kenya's government and private sector to work together on trade and investment policy formulation, such as the Presidential Round Table, a platform involving the Kenya Private Sector Alliance (KPSA), the Association of Manufacturers and the National Chamber of Commerce and Industry.

4.53. We highlight the significant progress made in Rwanda in transitioning from a low-income economy to a middle-income one, with the level of extreme poverty falling significantly, from 40% in 2001 to 16.3% in 2014. The country's rise in the Doing Business rankings is also notable; it moved up 11 places, from 41st in 2018 to 29th in 2019.

4.54. With respect to Tanzania, we note its stable and vibrant economy and its significant experience in the tourism sector. Lastly, we would like to highlight Uganda's progress in customs matters, with its launch of a single window based on ASYCUDA World; the country also deposited its instrument of ratification of the Trade Facilitation Agreement on 25 June 2018, having already submitted its notification of Category A measures.

4.55. We would like to conclude this intervention by wishing Burundi, Kenya, Rwanda, Tanzania and Uganda every success in their Trade Policy Review.

ARGENTINA

4.56. Argentina is pleased to note that, during the review period, the EAC WTO Members recorded strong GDP growth driven by increased public investments in transport and energy infrastructures, favourable weather conditions and strategic policy interventions.

4.57. The boost to agricultural production and the good tourism-driven performance of the services sector, a sector with still untapped potential, are also welcome. It is interesting to note that while agriculture is the key driver of the EAC economies, it is the services sector that is the main contributor to their GDP.

4.58. Argentina is also optimistic about the EAC members' ongoing reform efforts to establish a monetary union by 2024.

4.59. We appreciate the fact that the EAC members' national investment codes are liberal, with no major restrictions on foreign presence. We note that both local and foreign investors receive the same treatment in terms of incentives.

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4.60. Argentina welcomes the fact that Kenya, Rwanda and Uganda have deposited their instruments of ratification of the Trade Facilitation Agreement. We appreciate the progress made towards full harmonization in customs management, although some customs procedures and documentation requirements continue to be country-specific.

4.61. Despite the tremendous progress that has been made, Argentina is aware of the many challenges facing the EAC members. These include, to name a few, the need to diversify their economies, to increase intra-EAC trade, to harmonize core macroeconomic policies and to ensure a stable and accessible energy supply, without forgetting outstanding notification requirements.

4.62. As part of this Trade Policy Review, our country submitted questions relating to trade facilitation and services trade in the EAC. We appreciate the replies provided, which have been sent to Buenos Aires for review by the authorities concerned.

4.63. In conclusion, we would like to reiterate our appreciation of this new opportunity to exchange information and reflections on the trade policies and practices of the EAC members and to also once again draw attention to the importance of this exercise in transparency, in all its aspects. We wish the authorities of the EAC members a successful conclusion to this Review and encourage them not to let up in their efforts to become a prosperous, competitive, secure and politically united region, as set out in the Treaty establishing the Community.

BRAZIL

4.64. Since its last Trade Policy review in 2012, the EAC has made substantial progress in a number of areas, including trade facilitation. Brazil praises the efforts towards the implementation of the Trade Facilitation Agreement (TFA). As noted in the Secretariat report, however, work still remains to be done in this area. Brazil looks forward to constructive engagement by EAC member States on trade facilitation issues with a view to further reduce customs barriers.

4.65. The EAC has taken steps towards establishing an effective customs union and common market. Member States commitment to regional economic integration and their efforts to curb trade barriers to regional trade are well placed. EAC member States combined market comprises nearly 180 million people with a real GDP of almost USD 150 billion.

4.66. Brazil is also part of a Customs Union (MERCOSUR), together with Argentina, Paraguay and Uruguay. Regional integration is an important tool to complement and advance the multilateral trading system. These agreements help promote economic growth and prosperity for their participants.

4.67. The progress that member States of the EAC have made towards regional economic integration is notable. We highlight, for example, efforts on the implementation of reforms to improve the business environment and to promote investment as a single investment area. We encourage EAC member states to continue on this path.

4.68. We note, however, that Burundi, Kenya and Rwanda still appear to be exceeding their tariff bindings on a number of tariff lines. We look forward to hearing these members on this particular issue.

4.69. We also observe that the number of non-ad valorem tariff lines increased during the period under review. This adds to the complexity of the tariff structure. Brazil has presented a question to EAC members States on this issue, and encourages them to make use of ad-valorem rates in order to increase transparency.

4.70. Brazil is involved in technical cooperation with Burundi, Kenya and Tanzania on the Victoria Project, an initiative whose objective is to contribute to the improvement of the competitiveness in the cotton sector. The knowledge acquired from this cooperation can be used in other regions, and a new project is under way, called the Beyond Cotton Initiative, in partnership with the World Food Programme, which involves EAC members Kenya and Tanzania, as well as Benin and Mozambique, with the aim to support smallholder cotton producers and public institutions in these four countries.

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4.71. In closing, we congratulate each of the member States on their efforts to confront constraints and implement reforms compatible with the multilateral trading system. We wish the EAC members a successful Trade Policy Review.

EUROPEAN UNION

4.72. These five countries are examined together in a Trade Policy Review as they are working together in a regional integration process. The EU strongly believes that these countries' continued and deeper integration in the East African Community is of utmost importance as it boosts their competitiveness and attractiveness as investment locations.

4.73. The EU welcomes the progress made by the EAC in its integration since its last TPR in 2012. As the spokesperson of EAC noted, the EAC's customs union has been strengthened and customs clearance at the borders made more efficient; the EU welcomes in particular the regional Authorized Economic Operator (AEO) system and the one-stop border posts in 2016. Secondly, in 2013 the East African Monetary Union Protocol (EAMU Protocol) was adopted with the aim to establish a monetary union by 2024.

4.74. Since the last joint review, the EAC's economic growth has mainly been supported by increased public investments in transport and energy infrastructures, and driven by tourism activities and other services sectors. The EU acknowledges steps taken by the EAC countries to diversify their economies and encourages efforts to continue diversification their export basket, to expand trade in manufacturing and to modernise SMEs. Economic progress should be underpinned by socio- economic efforts, good governance, respect for labour and human rights and combatting fraud and corruption.

4.75. With a view to enhancing transparency and predictability, the EU urges the EAC countries to meet their notification requirements under the WTO. We welcome the ratification of the WTO Agreement on Trade Facilitation by Kenya, Rwanda and Uganda, and we call on Burundi and Tanzania to follow suit. We also join other Members' calls to fully and swiftly proceed to implementing it, notably as regards outstanding notifications under categories B and C.

4.76. The EU commends EAC's efforts at regional level to assist the countries to implement the TRIPS Agreement. We encourage Burundi to accept the 2005 Protocol amending the TRIPS Agreement.

4.77. The EU calls on each country not yet having signed the joint statements in Buenos Aires, to consider joining the initiatives on electronic commerce, investment facilitation and MSMEs. As regards the declaration on women and trade, and as reminded by the Icelandic delegation, we note with appreciation that all members, but Tanzania have signed up to the Buenos Aires declaration.

4.78. The EU is a steady and major supporter of East Africa's economic development and a key partner in the EAC countries' integration into the global marketplace. The EU remains a fundamental market destination for East African exports, and a major trading partner for all EAC countries.

4.79. Four out of five EAC Members are LDCs (Kenya being the exception), and thus benefit from duty-free and quota-free access to the EU market under our "Everything But Arms" (EBA) preferential arrangement.

4.80. However, as these countries are quickly moving up the development ladder, they will progressively graduate out of the EBA scheme. The EU-EAC Economic Partnership Agreement – whose ratification process is underway – is the sole trade regime that can provide a truly bilateral, permanent and uniform trade relations with the EU for all EAC Members. In September 2016, Kenya and Rwanda signed the EPA and Kenya has ratified it. The EPA also perfectly fits into EAC countries' drive and efforts towards deepening regional integration in East Africa, and beyond on the continent. As it is fully in line with the EAC Common External Tariff, it contributes to creating a more efficient regional market with predictable and stable rules. EAC Members' drive towards the implementation of the African Continental Free Trade Agreement (CFTA) will also be supported by the EPA as its tariff schedules and flexible rules of origin will prove being useful building blocks to continental integration. The EPA covers not only trade but also offers opportunities for development cooperation.

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4.81. More specifically, via the 11th European Development Fund for the period 2014-2020, an amount of €50 million was allocated to the East African region to support regional economic integration and support for trade. In addition, a total amount of about €2300 million is allocated to the national cooperation. In line with the countries' development plans, national cooperation focuses mainly on support to sustainable energy, sustainable agriculture and food security, and good governance.

4.82. The EU submitted a number of questions on several areas of EAC countries' trade policies and practices. We have received replies to most of our questions and are currently reviewing them. We invite EAC to use the alternative timeframe in the future for its next TPR, as this would allow more time for Members under review to deal with the questions and the other Members to review them and thus enhance transparency of this exercise.

4.83. On behalf of the EU, I look forward to a constructive exchange of views during this Trade Policy Review and wish the East African Community and its delegation from Burundi, Kenya, Rwanda, Tanzania, and Uganda the best of success.

JAPAN

4.84. During the review period, the EAC WTO Members achieved significant GDP growth driven by increased public investments in transport and energy infrastructures, boosted agricultural production, and a well-performing services sector. Consequently, Kenya acquired the status of lower-middle-income country. We truly appreciate this achievement, and expect the other EAC WTO Members to follow suit. We also appreciate Rwanda's strong and continuous economic growth, which is mainly attributed to growth in the ICT sector. In this regard, we believe that the region has a strong potential to unleash the benefits of the digital economy. Therefore, we encourage the region to participate in the Joint Statement Initiative on electronic commerce in the WTO.

4.85. At the same time, increased public expenditures on ongoing infrastructure projects have caused chronic fiscal deficits. In order to compensate for this, we believe it is important to enhance exports to, and attract investments from, countries outside the region. In this regard, we appreciate the region's efforts to conclude an FTA in Goods with the Common Market for Eastern and Southern Africa (COMESA) and Southern African Development Community (SADC) countries, as well as an EPA with the European Union. We hope the region will make further progress in this activity by pursuing more integrated services markets, as well as more harmonized competition and IPR regimes.

4.86. As for the Trade Facilitation Agreement (TFA), we appreciate the region's efforts to implement the agreement, including through notification of their Category A commitments. Now Kenya, Rwanda and Uganda have accepted the TFA in the region, and we expect that all the other EAC WTO Members will accept the TFA in the near future. We also acknowledge that much progress has been made during this review period in the area of harmonization and particularly appreciate the region's efforts to harmonize customs clearance procedures.

4.87. Having said that, Japan has some concerns. The region needs greater harmonization of its export procedures, the SPS and TBT measures, the competition regime, and the IPR regime. In addition, the Common External Tariff (CET) average rate has increased from 12.7% in 2011 to 12.9% in 2018. This reflects the fact that the tariff rates exceed the bound rates in many tariff lines.

4.88. In conclusion, we are sure that the EAC WTO Members will be well placed to continue pursuing open, transparent and non-discriminatory markets by observing their commitments to the WTO. We wish the EAC WTO Members a successful and productive TPR, and look forward to hearing of further progress regarding their trade and investment policies at their next TPR.

4.89. Thank you, Chairman, Discussant, and all the distinguished delegates of the EAC WTO Members (i.e. Burundi, Kenya, Rwanda, Tanzania and Uganda) and the EAC Secretariat.

AUSTRALIA

4.90. Australia enjoys strong trade and investment links with EAC countries. Our main exports to EAC countries include raw minerals such as aluminium and zinc, civil engineering equipment, and

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- 19 - medical and electrical parts; while our main imports from EAC countries include vegetables, coffee and clothing products.

4.91. In terms of investment, during the review period, Australian companies invested in major mining, oil and gas projects in Kenya, Uganda, and Tanzania, while also forming new links in the areas of education and agriculture.

4.92. We look forward to deepening and strengthening our economic relationship with EAC countries in the years ahead. East Africa, with its growing urban middle class creating new demands for goods and services, is clearly a region of significant economic opportunity. We are working to expand and diversify commercial links with the EAC, particularly in the agriculture, education and services sectors.

4.93. We congratulate the EAC on the strong overall economic growth sustained during the review period, with average annual real GDP growth rates of over 5%. We commend Kenya on acquiring the status of lower-middle-income country in 2014.

4.94. We note a few important points from the Secretariat's report. First, that large proportion of EAC populations are reliant on agriculture for their livelihood. Second, that high costs of doing business prevent obstacles to further economic development. And third, the ratio of EAC Members' trade to GDP remains moderate, at about 50%.

4.95. We applaud the EAC's ongoing harmonization efforts, including the milestone adoption of the East African Monetary Union Protocol, the introduction of Authorized Economic Operator system, new initiatives to improve the interconnectivity of customs systems and the establishment of one-stop border posts.

4.96. We note the adoption of the fifth EAC Development Strategy and the EAC Vision 2050, and wish the EAC success in transforming the region.

4.97. We encourage the EAC to continue to progress its integration agenda and look for opportunities to reduce tariffs and tackle non-tariff barriers. Further removal of trade barriers, investments in infrastructure and improved integration – for example harmonization of internal taxes, export procedures and documentation, and intellectual property regimes - will encourage future growth across the EAC.

4.98. We also encourage EAC Members to continue to engage constructively in WTO processes, which we have a mutual interest in supporting.

4.99. We look forward to engaging in South Sudan's WTO accession process.

4.100. We note there are several areas where notifications remain outstanding.

4.101. Australia was pleased to provide constructive input to this review process. For this review, we have submitted questions covering EAC coordination and harmonisation initiatives, and EAC countries' plans to reduce or remove existing trade and investment barriers. Given Australia's commercial interests, we are particularly interested in seeking clarity on the legal and regulatory framework governing the mining sector in EAC countries.

4.102. We look forward to responses to these questions and wish the EAC a successful Trade Policy Review.

THAILAND

4.103. Thailand and the EAC have growing bilateral trading relations. The EAC is the fourth largest importing market of Thailand in Africa, and Thailand is the sixth largest importing market of the EAC in ASIA. Total trade between Thailand and the EAC has constantly expanded in recent years. In 2018, bilateral trade amounted to USD 533 million, growing by 15% from 2017. Thailand hopes that our bilateral trade will continue to increase to further strengthen economic relations.

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4.104. The trade policy reports brought to light several areas of improvement and noted some of the challenges facing the five EAC WTO Members as they strive to participate more effectively in the global trading system and to use trade as a means to stimulate greater economic growth and development.

4.105. Thailand is pleased to learn that during the review period, the EAC WTO Members sustained strong GDP growth fuelled by increased public investments, favourable weather conditions, and strategic policy interventions. Agricultural production was boosted and driven by buoyant tourism activities. The service sector also recorded a good performance.

4.106. Thailand notably welcomes the emphasis on the full harmonization of customs procedures among the EAC members and encourages the EAC to move forward to continue to improve customs and border clearance procedures.

4.107. On the participation of the EAC in the WTO, all EAC WTO Members have notified their Category A commitments under the Trade Facilitation Agreement. Kenya, Rwanda, and Uganda have ratified the TFA. We, therefore, encourage Burundi and Tanzania to complete their ratification processes in order to reap the full benefits of the TFA.

4.108. The EAC WTO Members continue to fulfil their notification obligations at the WTO. However, they have faced challenges in making timely notifications due to lack of capacity in various agencies. This is an area that needs technical assistance to improve compliance under different WTO agreements.

4.109. In this review, Thailand submitted questions covering specific aspects of trade and economic policies of the EAC, including customs valuation, the EAC Competition Act of 2006, and the EAC policy on anti-counterfeiting. In addition to our advance questions, Thailand is interested to learn more about EAC's plan to harmonize its common external tariffs with WTO commitments.

4.110. In conclusion, we wish the EAC a successful outcome in this joint Trade Policy Review.

INDONESIA

4.111. Indonesia thanks each country member of the EAC delegation, for having provided a comprehensive report on each member's respective economic and trade policy. Our gratitude also goes to the WTO Secretariat, for their hard work in providing Members with a report. Indonesia also thanks Dr. Athaliah Lesiba Molokomme of Botswana, who – through her role as discussant – has provided much insights to this review process, which sets up an important basis to the current discussion.

4.112. This review process is important to Indonesia, for Indonesia has been forging a mutually beneficial trade relationship, with countries of the EAC. In the last five years between 2014 and 2018, the value of overall bilateral trade, in non-oil products, between Indonesia and member countries of the EAC, recorded a positive trend – that is, from USD 450.4 million in 2014, to USD 699.2 million in 2018.

4.113. During the same five-year period, trade balance between individual members of the EAC saw a variety of performance. The largest trade surplus for Indonesia, accruing from bilateral trade between members of the EAC, was recorded, always, with Kenya – with a trade surplus that amounted to USD 277.3 million in 2018.

4.114. On the other extreme, trade balance between Indonesia and Uganda, within the same five-year period between 2014 and 2018, was always recorded as a deficit, although this deficit plummeted by 87% in 2018, from USD 12.6 million in 2017, to USD 1.6 million in 2018.

4.115. Indonesia applauds member countries of the EAC for their tireless endeavour in integrating their economy amongst themselves, and into the global value chain. There are a handful indicators of success to this complex mission, as demonstrated, amongst others: (i) by the increased regional efforts on the harmonization of standards and technical regulations, overseeing the development of new standards and the harmonization of existing ones; (ii) by the fact that clearance of imported goods are being undertaken through single custom territory model since 2016; (iii) by the

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- 21 - harmonization of some fees related to services provided and documents issued by Customs; and (iv) by the harmonization of most national duties as well as tax exemption and concession schemes.

4.116. However, despite these positive developments, Indonesia expresses concern, to some trade-related policies and practices of the EAC country members, such as: measures on the changes in import tariffs between EAC country members; on the high tariff for non-agricultural products; on measures related to pre-shipment inspection for conformity; and on the lack of harmonization of regimes on standards and technical regulations.

4.117. We have included these concerns in our advanced written questions that we have submitted. And we convey appreciation, for the responses that we have received, yesterday. We are currently still studying the feedback that the EAC has provided and will accordingly do a follow-up inquiry if needed.

4.118. It is our hope that this TPR process can serve as a forum, to address these trade concerns, which are among the main obstacles to an enhanced economic cooperation between Indonesia and members of the EAC.

4.119. Excellencies, heads of delegation, looking forward, Indonesia predicts that the on-going imports from the EAC in the form of cocoa , tobacco, and edible vegetables, would experience an increase in subsequent years. Meanwhile, the EAC may benefit from Indonesia's readiness to engage in an enhanced trading partnership, in , motor vehicles, and paper products – amongst others.

4.120. In terms of investment, economic sectors that are potential for business partnership between member countries of the EAC and Indonesia, are in the and infrastructure; the energy; the agro-industry; the information and communication technology; and the banking sector.

4.121. Indonesia sees much scope, yet to be explored in our trade-related ties. We look forward to the EAC and Indonesia to capitalize further on the intense multi-faceted bilateral cooperation that countries of the EAC and Indonesia have invested in.

4.122. In conclusion, my delegation wishes the delegation of the EAC success in this Trade Policy review.

REPUBLIC OF KOREA

4.123. Korea and the EAC countries have maintained close relations in the fields of trade, investment, and development assistance. Broadening the partnership with African countries continues to be one of Korea's foreign policy priorities. In this vein, we are pleased to note that Korea and the African Union held the Second Policy Consultation Meeting last October in Seoul to discuss the progress to date as well as concrete ways to further enhance mutual cooperation. We hope that our cooperative relations will be further reinforced based on these and other initiatives between Africa and Korea.

4.124. Let me now turn to the overall performance of the EAC WTO Members.

4.125. As the Secretariat report noted, during the review period, the EAC WTO Members recorded strong GDP growth driven by increased public investments in transport and energy infrastructures, favourable weather conditions, and strategic policy interventions. In particular, agriculture and services were the main drivers of EAC economies, accounting for about 30% and 47% of the GDP, respectively, over the review period. We hope the EAC countries maintain this upward trend by accelerating the ongoing reform efforts.

4.126. Even though noticeable progress has been made with regard to trade and investment liberalization, there still exist difficulties which exporters and investors face in their business transactions with the EAC countries. As the Secretariat report mentioned, some customs procedures and the legal and institutional frameworks for investment remain country-specific. We welcome the conclusion of a Tripartite Free Trade Agreement among COMESA, EAC, and SADC in goods in 2015 and encourage the EAC countries to continue to make regional integration efforts.

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4.127. My delegation has submitted, albeit somewhat late, our written questions to Tanzania and Uganda regarding their policies on trade and investment. We thank Uganda for providing answers, which Seoul will review carefully. As for Tanzania, we look forward to receiving a reply in due course.

4.128. In closing, Korea looks forward to cooperating with the EAC countries to enhance opportunities for trade and investment in the future. We would like to express our sincere appreciation once again to the delegations of EAC countries for their hard work and wish them every success in this TPR.

TURKEY

4.129. Through coordinated policies among its members, EAC has become one of the most integrated regional economic communities and achieved remarkable progress in implementation of the Customs Union and the Common Market.

4.130. As the Secretariat report underlined, EAC countries had growth rates over 5% annually, thanks to the public investments in infrastructure and positive developments in the agriculture and services sector. The real GDP per capita increased by 16.3% since last review.

4.131. We are glad to see that Kenya, Rwanda and Uganda have deposited their instruments of acceptance for the TFA.

4.132. We also applaud the initiatives such as EAC Customs Management Act and EAC Customs Management Regulations to fully utilise the benefits of intra-union trade.

4.133. Although the EAC countries have done well on a number of areas, we also see some difficulties that they have to address for creating more robust economies.

4.134. For example, the need for diversification in manufacturing, increased trade costs within the region, and high cost of doing business may be the key challenges for the EAC countries in the period ahead. In addition, despite the steps taken, the share of manufacturing sector in their economies is still low.

4.135. In this context, we note with satisfaction that a number of new policies were adopted during the review period in the EAC countries. We view that crafting policies for encouraging trade and investments will help diversification in their economies and strengthening manufacturing industry. We share the view that the policies towards enhancement of the capacity of private sector will also be an important ingredient in stimulating increased trade and investment.

4.136. We believe that WTO can provide a sustainable path for African economies. In this regard, despite their limited resources, EAC counties are always providing utmost support to uphold multilateral system and actively involved in the discussions at the WTO with a constructive approach.

4.137. As part of Turkey's special attention vis-à-vis its relations with African countries, our bilateral economic ties with EAC countries is being steadily strengthened, and our bilateral trade volume increased more than 25% during the review period. We believe that we have further mutual opportunities in the field of trade and investments.

4.138. Turkey will continue to support the development policies of the EAC members and wishes East African Community member countries a very successful Trade Policy Review.

MAURITIUS

4.139. We are pleased to participate in this joint Trade Policy Review and we commend the EAC for the strong GDP growth in individual countries.

4.140. We also commend EAC's efforts aimed at improving the business environment in the region.

4.141. EAC member States have undertaken considerable reforms to enhance their trade and reap socio-economic benefits. For example, Rwanda has made significant progress in the World Bank Doing Business Index (on Ease of Doing Business, it is ranked 2nd in Africa after Mauritius).

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4.142. No doubt the EAC is considered as one of the most successful Regional Economic Communities in Africa.

4.143. One may note that improvements have been made within the EAC towards the elimination of Non-Tariff Barriers (NTBs) through a National Monitoring Committee.

4.144. The reporting of NTBs through an online SMS-based platform is indeed very innovative.

4.145. However, as highlighted by the Secretariat report, the EAC region needs to consolidate efforts towards harmonization of policies affecting trade. The report notes that standards and technical regulations regimes, intellectual property rights and other sectoral policies are not harmonized across the EAC membership. This could be one of the reasons accounting for low intra-EAC trade, and that remains a challenge.

4.146. We believe that specific policies aimed at reducing barriers to trade towards countries in the region would help EAC countries to integrate regional as well as global value chains.

4.147. For example, it is suggested that Uganda may consider phasing down duties on products that it kept out of the COMESA Free Trade Area as there are no product exclusions in the COMESA FTA.

4.148. We also believe that EAC should ensure that, as they integrate their economies and remove intra-regional impediments to trade, third countries trade with the economic bloc should not be disrupted due to NTB's, Trade Remedies and Standards, amongst others.

4.149. The EAC has been actively participating in negotiations of the Tripartite FTA and the Continental FTA as a bloc. Their contribution in both these processes, which is aimed at integrating the African market, is commendable.

4.150. We expect that their positions in these negotiations should aim to integrate the regions and Africa into the global value chains, through rules of origin that are flexible and easy to apply. As a customs Union, the EAC can play an even more important role in building an integrated African market which is open to the world.

4.151. At the Bilateral level, Mauritius is enhancing its relations with the members of EAC with a view to consolidating our existing areas of cooperation and also to exploring new ones.

4.152. In this respect, the President of Kenya has been invited to visit Mauritius in the near future. The visit will be an excellent opportunity to further strengthen ties with one of the economic powers of the East African region and to look into mutually beneficial partnerships.

4.153. To conclude, Mauritius wishes a successful Trade Policy Review to the delegation of EAC.

JAMAICA

4.154. Jamaica has enjoyed cordial relations with members of the East African Community for many years, also extending to the field of trade, with Kenya being our leading market within the region, to date. We look forward to further strengthening the trading relationship with the EAC members in the coming years. In addition, Jamaica shares strong bonds of friendship and cooperation with the EAC within the context of the African Caribbean and Pacific (ACP) Group in which our counties jointly participate.

4.155. We commend the EAC members on the progress reported since their last review in 2012. We note that over the review period, economic growth was recorded in the various countries, largely driven by increased public investments in transport and energy infrastructures and strategic policy interventions. As net exporters of services, the services sector is the leading contributor to , with focus on transport, travel, tourism and other business services. Nevertheless, agriculture remains a key economic driver for these countries, with the renewable energy sector on the rise. We also take note of the efforts to promote greater economic diversification in order to build resilience to external economic shocks.

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4.156. Positive mention has also been made of the strides made by the EAC members to strengthen ongoing reforms aimed at deepening the regional trade and economic integration process towards the goal of establishing a monetary union by 2024. In addition, the reports highlight that Kenya, Rwanda, and Uganda have deposited their instruments of acceptance in respect of the Trade Facilitation Agreement and that all EAC members have notified their Category A commitments. We commend these efforts, as well as the establishment in 2015 of a Regional Trade Facilitation Sub-Committee to bolster efforts towards the implementation of the Trade Facilitation Agreement and related measures.

4.157. In terms of their level of participation in trade and integration within the global economy, it has been further noted that the EAC members have also been undertaking measures to strengthen their participation with other regional groupings within Africa, as well as with other external partners. With respect to the latter, the conclusion of an Economic Partnership Agreement (EPA) between EAC members and the European Union in October 2014 has secured duty-free and quota-free access for EAC exports to the EU market. At the same time, strong trade and investment relations have been preserved with the US, with all EAC members eligible for trade preferences under the U.S. African Growth and Opportunity Act (AGOA), and the signing of a Trade and Investment Framework Agreement (TIFA) in 2008.

4.158. Jamaica is firmly of the view that collectively these efforts should not only result in the enhanced competitiveness and participation of your economies in the multilateral trading system but will further serve as a conduit through which the inclusive and sustainable growth and development of your countries and region can be effectively pursued.

4.159. In closing, we wish to once again commend the East African Community delegations of Burundi, Rwanda, Uganda, Tanzania and Kenya on the work done and best wishes for a positive review.

INDIA

4.160. The East African Community covers an area of 1.8 million kilometres with a population of 179.2 million and a combined GDP of USD 170.9 billion in 2017. The economies of the EAC vary in size with Kenya, Tanzania and Uganda accounting for more than 90% of the share in GDP. The performance of East African Community countries has been relatively strong during the period with an average GDP growth rate exceeding 5%, with some fluctuations in member countries, from 2011-17 driven by public investments in infrastructure, favourable commodity prices and a growing service sector. Except Kenya, all member countries of EAC are in the low-income category of the World Bank classification. The EAC countries also face various socio-economic challenges including dependence of a large percentage of population living in rural areas on agriculture, infrastructural challenges, need to diversify the economic base, addressing socio-economic indicators and promoting investment. We commend the efforts of the East African Community countries to address these challenges which include progressing on their integration agenda to establish a customs union, a common market, a monetary union and ultimately a political federation of the East African states. Some member countries have also adopted long and medium-term development strategies which include Kenya's Vision 2030. Rwanda's Vision 2020 to be updated to 2050; Tanzania's Vision 2025 and Uganda's Vision 2040.

4.161. shares close, warm and friendly relations with all the member countries of the East African Community. Our relations are multi-faceted with regular political and economic exchanges and presence of a vibrant Indian community in the region contributing to the economic development of these countries. Let me briefly touch upon India's economic and trade relations with the member countries:

• India is the largest trading partner of Tanzania with bilateral trade of USD 2.14 billion in 2017; India is amongst the key trading partners of Kenya with the total bilateral trade of USD 2.05 billion in 2017-18; with Uganda our trade is USD 588 million; with Rwanda, our bilateral trade stood at USD 95 million in 2017 and with Burundi, the bilateral trade stood at USD 56 million in 2017. • Visits of business delegations including from Chambers of Commerce between India and the countries of the East African Community are growing.

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• There is considerable potential to promote trade between India and the member states of the East African Community in areas including pharmaceuticals, chemicals, products, automobiles, electrical machinery, agricultural products, metals and other goods. • India is also engaged to deepen its regional trading arrangements with the East African Community.

4.162. An important pillar of our relations with Africa is development partnership cooperation. We have a consultative partnership to assist countries to pursue their development objectives based on sharing of development experiences and focussed on addressing priorities and needs of the countries. Our development partnership has deepened in recent years with the three India-Africa Forum Summits with projects being implemented for cooperation in areas of infrastructure, development, agriculture, irrigation, transport, health, power and IT. While time does not permit to enumerate the details, India has a comprehensive 5-year plan for enhancing the development assistance to Africa, which includes USD 10 billion in concessional line of credit and a grant assistance of USD 600 million. In the area of capacity building in human resources, India has announced 50,000 scholarships in the next five years under various programmes for students and professionals under the Indian Technical and Economic Cooperation Programme for African countries. All member countries of the EAC are also actively engaged in these initiatives.

4.163. Amongst the member countries of EAC, Burundi, Rwanda, South Sudan, Tanzania and Uganda are LDCs. India has always been a supporter of special dispensation for LDCs and provides 98.2% tariff lines as duty free or preferential access to LDCs with applicable tariff on all cotton lines at zero. We have also provided one of the most liberal packages under the services waiver, including complete waiver of visa fees on business and employment visas.

4.164. Chair, to conclude, the member states of the East African Community are blessed with enormous natural resources including in the area of agriculture and have tremendous potential for growth. India stands committed to support these countries for pursuing their development goals and to deepen our bilateral trade and investment ties for mutual benefit. We wish the delegations of member countries of the East African Community a productive and successful TPR and will work to support quick accession of South Sudan to the WTO.

PHILIPPINES

4.165. The East African Community (EAC) Treaty came into force almost 19 years ago in July 2000 with an integration agenda anchored on the establishment of a Customs Union, a Common market, a Monetary Union, and ultimately a political federation of the East African States.

4.166. We recognize the adoption of the East African Monetary Union Protocol (EAMU Protocol) in 2013, which is a milestone in the region's integration process as it lays the groundwork for the establishment of a monetary union by 2024. We also acknowledge the EAC Vision 2050 and the 5th EAC Development Strategy, which lay down the long-term and medium-term perspectives on transforming the region into an upper middle-income economy by 2050.

4.167. The notes that five of the six EAC member states are Members of the , while its newest member state (South Sudan) is a WTO observer undergoing the accession process, and we are happy to note the first working party session tomorrow which will be chaired by the Ambassador of Afghanistan. This strongly demonstrates the commitment and importance given by the members of the regional group to the multilateral trading system as they pursue inclusive and sustainable economic growth and development.

4.168. EAC WTO Members had a combined GDP estimated at USD 170.9 billion in 2017. The average GDP per capita of the EAC countries (excluding South Sudan) was estimated at USD 988 in 2017. All countries also consistently recorded annual real GDP growth rates exceeding 5% over the period 2011 to 2017. This demonstrates the growth potential of the EAC.

4.169. As stated in the EAC Government Report, EAC countries are still faced with the challenge of addressing socio-economic constraints such as disease and poverty, but it is worth noting that the region is addressing these concerns head-on through promotion of regional value chains, proper land use, massive investment in agro-processing and manufacturing, as well as sound macroeconomic management.

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4.170. We encourage the EAC Secretariat and EAC member countries to strengthen and centralize economic statistical monitoring as these are powerful tools to measure inclusive growth and the impact of trade liberalization policies.

4.171. The Philippines and Kenya trade has been on a growth trend, and the Philippines looks forward to expanding trade and investment with the EAC.

4.172. We wish the EAC delegations a successful Trade Policy Review.

EGYPT

4.173. Egypt and the EAC members share historic ties and fraternal bonds that are manifested in various fields. In fact, our development pasts are well intertwined as we have a set of unified objectives and common challenges. In June 2015, Egypt proudly hosted the signing of a tripartite free trade agreement in goods involving members of COMESA, EAC and SADC. The agreement was concluded with a view to streamline the evolving regional integration processes. These efforts recently developed into an ambitiously comprehensive African Continental Free Trade Agreement that aims to create a single market for goods and services, as well as the free movement of persons to intensify economic integration in the continent.

4.174. I also wish to highlight that Egyptian exports to EAC members increased by around 30% in 2017 compared to 2010. Also, Egyptian imports from EAC countries have increased by an average of 40% across the years under review.

4.175. Such trends and figures are proof of the region's determined strides towards sustained growth and development. Egypt is determined to develop commercial relations further with the EAC countries.

4.176. During the period under review, the EAC WTO Members recorded strong GDP growth, driven by increased public investment in transport and energy infrastructures, and strategic policy interventions.

4.177. Thanks to its impressive economic performance, Kenya acquired its status of a lower- middle-income country, as per the World Bank. We hope other EAC members follow in the planned growth and development path.

4.178. In addition, EAC members scored some promising macroeconomic figures, much of which are attributed to the harmonization of trade-related policies. However, a lot more is aspired in terms of trade at the ratio of EAC WTO Members' trade in goods and services to GDP is estimated at about 50%, a figure way below the potential of these countries.

4.179. The services sector is the main contributor to GDP in all EAC countries. During the period under review, services constructed the pillar of growth and employment in EAC countries. However, there is much potential in this sector that yet has to be properly developed.

4.180. Agriculture also plays a key role in the economy of all EAC Member States, not only in terms of contribution to GDP, but also with regard to livelihood, food security and foreign exchange earnings.

4.181. Similar to the services sector, agriculture production was boosted during the period under review. Egypt would like to commend EAC members for their joint efforts across many regional initiatives to harmonize sectoral policies, mainly in agriculture and services.

4.182. One area that accounts for EAC countries' commitment to the multilateral trading system is their keenness on facilitating trade. Indeed, several measures have been taken for this regard in recent years, at both national and regional levels with a view to eliminate non-tariff barriers and modernize administrative procedures.

4.183. We note that the WTO Secretariat report points out that the national investment codes of EAC Members had no major restrictions on foreign presence, both local and foreign investors receive

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- 27 - the same treatment in terms of incentives. The report continues to praise EAC Members' commitment to transparency, particularly in fulfilling their notification obligations on several fronts.

4.184. Egypt would like to seize this opportunity to express its support for the increased integration of all EAC members in the multilateral trading system. In this regard, we support the accession process of South Sudan to the World Trade Organization and we will take part in the first meeting of the Working Group that will be held tomorrow.

4.185. Finally, Egypt applauds EAC members for achieving progressive results during the period under review, and wishes members of the EAC a very fruitful Trade Policy Review.

SENEGAL

4.186. The delegation of Senegal endorses the statements made by the groups to which our country belongs.

4.187. The EAC is one of eight Regional Economic Communities (RECs) recognized by the African Union (AU) as building blocks that will eventually lead to the construction of the African Economic Community (AEC) on the basis of Agenda 2063.

4.188. We therefore welcome the efforts undertaken by the EAC member countries to bolster intra-African trade and to better integrate into world trade. The information provided in the EAC and Secretariat reports submitted for our consideration sufficiently demonstrates the progress made.

4.189. Despite the limited diversification of their economies, which are still largely dependent on commodities, we note that, overall, the region's GDP grew appreciably during the review period (2013-2017), thanks in part to public investment in infrastructure, favourable commodity and oil prices and the remarkable development of the services sector.

4.190. With regard to trade, Senegal welcomes the EAC member countries' efforts to improve intra-community trade while also observing and implementing WTO disciplines. We can point to the development of trade-related infrastructure, the progressive elimination of non-tariff barriers (NTBs), the harmonization of existing standards and the establishment of a regional standards committee, the simplification of customs procedures, the establishment of a Regional Trade Facilitation Sub-Committee in 2015, and a regional Authorized Economic Operator programme, among other elements. Senegal invites the countries of the region to continue working to further strengthen this type of trade.

4.191. The EAC countries' joint TPR also shows significant progress in other areas, such as competition policy and investment, which are in the process of being harmonized.

4.192. Senegal would like to encourage the EAC countries on their path to further integration; the positive effects of this process will contribute to the realization of the African Continental Free Trade Area (AfCFTA), which will serve as the foundation for reinforcing African countries' integration into international trade.

4.193. In closing, allow me to wish the delegation of the EAC a successful third joint Trade Policy Review.

MOROCCO

4.194. This EAC Trade Policy Review is a prime opportunity for all WTO Members seeking to make trade more open and, above all, more equitable and inclusive, and we welcome the engagement of the EAC member countries in this Review.

4.195. The Kingdom of Morocco wishes to commend the EAC members for their positive performance, particularly in terms of the economic growth that their strategic interventions have led to.

4.196. We welcome the EAC members' commitment to multilateralism, as their national investment codes are generally liberal, with no major restrictions on foreign presence.

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4.197. Furthermore, efforts are being made at the regional level to assist EAC member States in implementing the TRIPS Agreement, to provide just one example.

4.198. We view the positive economic performance as the culmination of policies marked by proactivity and increasing liberalization.

4.199. The substantial increase in public investments in transport and energy infrastructures is, in this regard, remarkable.

4.200. We wish to express our support for the EAC's commitment to economic integration. The ongoing reform efforts by the EAC countries to establish a monetary union by 2024 are promising, as are the policies to promote the Community as a single investment area and the joint efforts under several regional initiatives, mainly in agriculture and services, their main economic sectors.

4.201. The member States are committed to liberalizing a list of services in, inter alia, finance, transport, communication, tourism, and business services across all modes of supply; this will certainly be beneficial, as it involves coordinated policies that have been well thought-out.

4.202. This region faces considerable challenges that constitute a significant obstacle to development. Most of the populations (about 80%) live in rural areas and depend on agriculture for their livelihood. In addition, the volume of intra-EAC trade in goods remains relatively low and energy costs are high.

4.203. The proactive initiatives and policies of EAC members are making inroads in addressing these difficulties, but support from international partnerships remains crucial.

4.204. We encourage Members and investors to take advantage of the great potential that abounds in this strategic region of Africa.

4.205. There is tremendous potential in the agro-manufacturing sector given that a large part of the population is involved in agriculture; a boost to that sector would lead to the creation of greater value added by that population and to economic diversification.

4.206. Morocco wishes its fellow Members from the EAC every success in their Trade Policy Review.

URUGUAY

4.207. Uruguay wishes to extend a most cordial welcome to the delegation of the East African Community (EAC) on the occasion of its third joint Trade Policy Review. This is an exercise that enriches the multilateral system by promoting transparency and understanding of the trade policies and practices applied by the Members of this Organization.

4.208. We would first like to congratulate the East African Community on its strong economic growth, driven by increased public investments in transport and energy infrastructures, the boost to agricultural production and buoyant tourism activities.

4.209. We note that the national investment regimes are liberal, with no major restrictions on foreign presence, and that local and foreign investors receive the same treatment in terms of incentives.

4.210. It should be noted that Kenya, Rwanda and Uganda have deposited their instruments of acceptance of the Trade Facilitation Agreement and that all EAC WTO Members have notified their Category A commitments. Furthermore, a Regional Trade Facilitation Sub-Committee has been established to coordinate the implementation of the TFA and other trade facilitation measures decided at the regional level. The EAC countries are also rolling out other trade facilitation initiatives, including trade portals, call centres and business development services.

4.211. According to the Secretariat report, even though there are several areas where notifications remain outstanding, the EAC countries continue to fulfil their notification obligations to various degrees.

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4.212. We note that a number of export promotion instruments are harmonized within the EAC; notable examples include manufacturing under bond, export processing zones and duty remission schemes. Goods benefiting from any of these schemes are destined primarily for export and export diversification.

4.213. Despite the fact that standards and technical regulations regimes remain country-specific to a large extent, harmonization efforts are ongoing at the regional level. On SPS, harmonized measures and procedures have been developed for plants; mammals, birds and bees; fishery products; and food safety. Furthermore, we note that several measures have been notified by EAC countries in the areas of SPS and TBT.

4.214. We highlight the efforts being made at the regional level to assist EAC member States to implement the TRIPS Agreement with a view to promoting copyright and cultural industries, traditional knowledge, geographical indications, and technology transfer.

4.215. We also welcome the East African Industrialization Strategy, which aims, inter alia, to enhance productivity, expand trade in manufacturing and transform MSMEs into sustainable business entities. Similarly noteworthy are the business facilitation reforms in the EAC countries that aim to improve the customs processing system, deploy infrastructure, establish a national electronic Single Window, introduce electronic declaration and roll out authorized economic operators.

4.216. Finally, at the multilateral level, we share the EAC countries' commitment to the multilateral trading system and their views on the importance of continuing to foster the effective participation of developing countries in the multilateral negotiations.

4.217. Uruguay wishes the East African Community every success in its third joint Trade Policy Review.

GABON

4.218. The EAC and WTO Secretariat reports note that, on average, the EAC economies grew 5% between 2013 and 2017. This good economic performance is attributed, on the one hand, to strong private household consumption and, on the other, to public investment in infrastructure and growth in the agricultural sector.

4.219. Agriculture alone accounted for 41% of the region's GDP growth in 2017. It is noted as well that the industrial sector also contributes to GDP growth in the region.

4.220. However, higher world commodity prices were one of the main causes of the rise in inflation, which increased from 6.1% in 2013 to 8% in 2017.

4.221. My country is pleased to note the EAC countries' efforts to create a common currency by 2024. The countries' adoption in 2013 of the East African Monetary Union (EAMU) Protocol illustrates their ever greater desire for integration.

4.222. Similarly, my delegation commends the ambition of the EAC members to graduate from least developed country (LDC) to upper-middle-income country status through the adoption of a number of measures, such as the Vision 2050 programme, adopted in March 2016.

4.223. Furthermore, the delegation of Gabon welcomes the EAC countries' ratification of the Trade Facilitation Agreement (TFA) and their dedication and commitment to the Doha Development Agenda (DDA), which is so fundamental to the establishment of a competitive and equitable multilateral trading system.

4.224. My country appreciates its excellent cooperative relationships with each of the EAC countries. The purpose of these relationships is to create fresh momentum through, for example, community initiatives and projects.

4.225. Finally, my delegation wishes the East African Community every success in its Review.

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BENIN

4.226. The delegation of Benin would like to highlight the commitment of the five States. We appreciate their efforts and their achievements in promoting international trade as a driver of development and an instrument for building regional integration.

4.227. We are pleased to note that the EAC and its member States were able to raise the average GDP growth rate to 6% between 2013 and 2017. They are making significant investments in physical infrastructure and service activities and are implementing initiatives to diversify the goods and services in intra-EAC trade. They are also working to continue improving the business environment through a policy of openness, the implementation of national development plans in the different countries, and the priorities set out in the Community's medium-term policy framework.

4.228. The delegation of Benin also appreciates the prudent management of the external debt and the member States' determined efforts in the area of trade facilitation through the tools and instruments put in place, such as improvements to the customs processing system, the development of multimodal transport infrastructure, one-stop border posts, and an electronic system for declaration, document processing and payment of customs duties and taxes.

4.229. The efforts to industrialize and make use of information and communication technologies are also worth highlighting, as these factors contribute to the key objective of promoting the digital economy so as to enhance and expand performance in various economic areas and business sectors.

4.230. The delegation of Benin appreciates the important contribution made by the EAC member States to the negotiating work done at the WTO, in different working groups, formats and configurations, and also on the ground, in the African region, particularly in relation to the creation of the Continental Free Trade Area and the construction of the African Common Market.

4.231. We urge WTO Members to continue supporting the efforts and achievements of the EAC member States with a view to the realization of the States' goals of sustainable and inclusive economic development.

4.232. The delegation of Benin reiterates its commitment to continuing its excellent working relationship with its EAC counterparts.

4.233. We would like to conclude by wishing the EAC member States a successful Trade Policy Review.

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU

4.234. As the Secretariat report indicates, we commend all EAC countries for their positive economic performances at an annual GDP growth rates over 5% between 2011 and 2017, it is evident that substantial policy efforts and reforms have been made since last review in 2012, despite the differences of each Members' economy. We encourage all EAC countries to keep on necessary reforms of their institutional and legal framework on the basis of transparency, stability and sustainable development to achieve growth and reduce poverty.

4.235. We also commend the considerable efforts made by EAC members to promote region's socio-economic transformation and development illustrated in "EAC Vision 2050". The implementation of the EAC Development Strategy help facilitate the regional integration by consolidating the Customs Union and the Common Market, as well as making transitional measures and legislation to achieve the Monetary Union by 2024. Although currently the intra-EAC trade accounts only a relatively small part of its total merchandise trade. But together with other regional arrangements such as the EAC-COMESA-SADC Tripartite FTA, a closer economic integration in Africa would help improve the trading environment and attract investment. We encourage the EAC countries to keep continue the harmonization of the relevant administrative procedures and trade-related policies.

4.236. We would like to take this opportunity to express our appreciation to the EAC members for their active participation and constructive engagement in the regular work of WTO. And we join others to encourage the EAC members to timely implement their obligations including the

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- 31 - outstanding notifications, and urge Burundi and Tanzania to ratify the TFA soon. We hope to see EAC Members to be benefited from the Multilateral Trading System and be committed to the strengthening of system in this critical time.

4.237. On the bilateral front, the trade flow and economic cooperation between EAC members and my government have much room for growth, we are willing to search for opportunities to expand our trade volume in fields of agricultural, tourism and manufacturing products. In addition, we look forward to possible cooperation under the framework of the WTO Aid-for-Trade scheme and trade- related technical assistance initiatives.

4.238. In conclusion, we would like to once again commend the ECA for their achievements and the way forward. Also, thank you Ambassador Laourou for your excellent Chairmanship. We wish the EAC delegation a successful review.

SWITZERLAND

4.239. As the report by the Secretariat has shown, the East African Community constitutes a formidable undertaking, which - once completed - would go a long way towards contributing to the prosperity of its member States. Most members of the East African Community are also founding Members of the WTO. Some basic prerequisites for dynamic trade relations either within the Community or with the outside world would thus appear to be in place.

4.240. It is striking to observe, however, that intra-community trade is rather modest, finding it difficult to reach figures exceeding 10 % of the total merchandise trade of the EAC. To be sure, trade relations with many WTO Members are more extensive, especially when taking services into account. But they are also stagnating.

4.241. Many factors must be at play here. The authorities of the Community have rightly identified manufacturing as a key sector holding out the promise of greater trade potential. The Community can only be encouraged to continue on its reform path aimed at creating a better business environment. Experiences made by other economies suggest that an overall improvement of the framework conditions under which all sectors operate on a level playing field is probably most conducive to a successful outcome.

4.242. The EAC has indeed embarked on an ambitious agenda. The consolidation of the customs union is to be followed by the creation of a common market. A monetary union with a common currency is to crown these developments. The problems to overcome in such a far-reaching project are manifold as similar efforts in other places have demonstrated. Convergence of various measures, provisions and indicators if not outright harmonization seem to be needed to make such a community work.

4.243. Various reports indicate that much has already been accomplished. More needs to be done. The application of the common external tariff, for example, allows for exceptions. Some members of the Community make ample use of this flexibility which — amongst other things — undermines the uniformity and predictability of the common code.

4.244. Non-tariff barriers continue to pose a challenge. Their elimination or the unremitting harmonization of standards would give a boost not only to intra-EAC trade but to trade relations with the world at large.

4.245. Most difficult must be the convergence of macroeconomic fundamentals to move towards monetary union. A policy of fiscal prudence will be indispensable to achieve that objective. Smaller fiscal deficits could also reduce the significant reliance on the collection of customs duties and other levies at the border, which today ensure solid tax revenues for members of the Community. Smaller deficits could in turn create space for lower tariffs.

4.246. For already enjoys mutually beneficial trade relations with the EAC. Yet much potential remains untapped.

4.247. To conclude, Switzerland wishes the delegations of the East African Community a successful outcome of this Trade Policy Review.

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TRINIDAD AND TOBAGO

4.248. We consider it a privilege to be involved in this joint Review and our involvement today reflects the importance we hold for the East African region. We are optimistic about the prospects for economic growth and development in the Region and are pleased that the East African Community (EAC) countries have maintained an open economy in their efforts to foster such growth.

4.249. Trinidad and Tobago applauds the countries under review for their efforts to transform the community into a prosperous area through deeper regional integration. We welcome the fact that the East African region maintained an average economic growth of 5% over the period 2013-17. Of particular note is the growth of the economy of Burundi from a position of negative growth of about 3.9% in 2015 to positive growth of about 1.7% 2017.

4.250. We have taken note of the national development plans highlighted for this review namely Kenya's Vision 2030; Rwanda's Vision 2020 being revised to 2050, Tanzania's Vision 2025 and Uganda's Vision 2040 and wish each country a successful implementation. We are encouraged that East African Community countries have rolled out the implementation of various trade facilitation initiatives covered by the community laws including the Treaty establishing the East African Community, the Customs Union Protocol, Customs Management Act, Common Market Protocol.

4.251. We commend the improvements in the Doing Business environment among the East African Community countries and we wish to congratulate the countries on the business facilitation reforms including:

• improved customs processing system; • trade facilitating infrastructure including Standard Gauge Railway, One-Stop Border Posts, electronic cargo tracking; • establishment of national electronic Single Window; • introduction of electronic declaration, document processing and payment of customs duties and taxes; and • rollout of authorized economic operators.

4.252. Trinidad and Tobago is keen to explore opportunities to enhance the collaboration with East African countries particularly in the oil and gas sector. We look forward to building the bilateral relationships with the EAC Countries.

4.253. Through you Chair, Trinidad and Tobago wishes the countries of the East African Community, a successful Trade Policy Review.

CHAD ON BEHALF OF THE LDC GROUP

4.254. Since the establishment of the EAC and its customs union in 2005 and the introduction of a common market in 2010, the members of the Community (that is, Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda) have consistently sought to deepen their economic, social and political integration.

4.255. Many reforms have been undertaken under national strategic plans, with specific short- or medium-term development goals involving different sectors and different infrastructural and institutional issues. All the reforms contemplated today and through 2030 are aimed, ultimately, at strengthening regional integration and, at the same time, developing export capacities beyond the intra-EAC area – in other words, to the rest of the world.

4.256. Looking ahead, the East African Community aims to bring about a combined customs union, common market, monetary union, and political federation where common political, economic, social and cultural objectives, as well as objectives relating to research, technology, security and legal affairs, can be defined.

4.257. The EAC is today one of the most active regional economic communities in Africa, with a relatively large share of intra-regional trade, amounting to nearly 20% in 2017.

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4.258. With respect to the level of economic growth in the EAC over recent years and during the review period (from 2013 to 2017), the average rate of GDP growth was 6%. This clearly robust growth was mainly due to increased private consumption and to public investment in road, rail and electricity infrastructure.

4.259. In order to strengthen its economic foundation, its regional integration and its integration into world trade, the East African Community is planning several initiatives to promote trade and trade facilitation and to improve the business environment. This will, among other things, enhance the free movement both of the factors of production and of people.

4.260. The reforms envisaged should also have the effect of improving the region's investment attractiveness in agro-processing, oil and gas, mineral processing, tourism, financial services, telecommunications and transport.

4.261. The reforms planned by the East African Community also aim to develop the potential of sectors that are key for the region, such as agriculture, livestock and fisheries, forestry, manufacturing and energy, among others.

4.262. The EAC member countries present a clear vision of their goal of integrating into world trade through a process of regional consolidation. This is a relevant and rational approach that is in line with the multilateral trade rules developed at the WTO.

4.263. The EAC is also a community of countries that firmly supports the preservation of a transparent, inclusive and fair multilateral trading system that allows LDCs to integrate more easily and quickly into the world trade market, in keeping with the founding principles of the Marrakesh Agreement.

4.264. To conclude, Chad, on behalf of the LDC Group, wishes the member countries of the East African Community every success in their economic and political reforms and initiatives and in their Trade Policy Review.

AFGHANISTAN

4.265. Afghanistan is pleased to attend today's meeting and offers its congratulations to all East African Community members for their third joint Trade Policy Review meeting, and commends the EAC member States presenting their joint trade policy report and the constant economic growth rate in the recent years.

4.266. On a personal note, as the Permanent Representative of Afghanistan and the Chair of the Working Party on the Accession of South Sudan, the latest member of EAC and the latest applicant to the WTO, I would like to cordially invite all WTO Members and the distinguished capital-based delegates from the EAC to attend the historic and the first meeting of the Working Party on the Accession of South Sudan, which is planned for tomorrow, 21 March 2019 at 10 AM in Room D.

4.267. In conclusion, I wish the esteemed EAC delegations a very successful and productive Trade Policy Review.

MOZAMBIQUE

4.268. Mozambique congratulates the EAC countries and Governments for their level of deepening the regional efforts envisaging economic and social development. Notwithstanding being challenging moments, it is very much encouraging to see the tremendous efforts made by both countries internally and regionally, through the adoption of reforms that aim to broaden the economic basis, envisaging diversification and progress in the different economic and social spheres, thanks to which the growth of 5% was testimony.

4.269. Mozambique notes with satisfaction that, among others, specific vision programmes were adopted as transformative agenda, bearing in mind more inclusiveness, progress and prosperity, with the aim to create opportunities for all, various strategic objectives, construction of more innovative, competitive and dynamic economies.

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4.270. Additionally, all the actions intend to promote the private sector growth, business environment, investment and productivity of the strategic and potential sectors, intellectual property development, tourism, industrial development, infrastructure development, to mention some.

4.271. The strategies for growth and poverty reduction emphasize the relevance of regional effort to maintain macroeconomic stability and growth, good performance, improvement, and strong reduction of unemployment and poverty, including more objectives which will be enabling elements for business environment, economic and diversification of the economy.

4.272. My delegation recognizes that, although facing different challenges and fragilities, these brother countries are strong, courageous, and highly determined. Thus, it is our view that if provided with multiple assistance, all the countries can succeed in implementing the different policies, strategies and programmes, and gradually accelerate the economic development, so to be able to take more advantage in participating in the global trading system.

4.273. These show the numerous opportunities for investment, and we call upon developed and developing Member partners, the private sector investors, partners and other investment countries to direct their resources, provide technical assistance and also invest in EAC countries in order to help to foster and promote growth and prosperity. The WTO and other international organizations and agencies can also play a crucial role in this regard.

4.274. To conclude, I thank you for your attention and I would like to take this opportunity to wish the EAC countries a successful Trade Policy Review.

UGANDA (H.E. MS. AMELIA ANNE KYAMBADDE)

4.275. I thank the Chair for giving us an opportunity to read my statement today because of an emergency that I have to attend to Uganda.

4.276. I thank you for joining us today for the third Joint Trade Policy Review of the East African Countries. We appreciate the observations made in preparation for our review.

4.277. I do commend H.E. Dr Athalia Lesiba Molokomme, Ambassador and Permanent Representative of Botswana, who is our discussant for her report. We shall endeavour to rectify the challenges highlighted in her presentation.

4.278. As far as Uganda's Trade Policy achievements and future aspirations are concerned, I will focus on the responses made in preparation for our review in the third Joint EAC Trade Policy review.

4.279. Uganda, with a population of 40 million people, is a land-linked country with a GDP growth of 5.6%. Our economy majorly depends on the export of agricultural commodities although services and industrial production has recently increased over the years.

4.280. Our country is one of the founding Members of the World Trade Organization and during this third joint EAC Review, we opt to demonstrate our national commitment to the multilateral trading system and its impact on Uganda's development trends.

4.281. In 2017/18, Uganda's exports increased by 7.23%, to USD 2.89 billion from the previous financial year 2016/17 of USD 2.696 billion. Imports also increased by 16.42%, to USD 5.48 billion from the previous financial year 2016/17of USD 4.71 billion. The COMESA trading bloc remained the main destination for Uganda's formal exports with the share in total export earnings of 51.32% (USD 1,483.72 million) in 2017/18.

4.282. Uganda has been a key mover in driving regional integration. Recently, we handed over our EAC Chairmanship to Rwanda and currently chairing the wider African Continental Free Trade Area. On 21 March 2018, during the 10th Extraordinary Session of the Assembly of AfCFTA in Kigali Rwanda, Uganda signed the agreement establishing the African Continental Free Trade Area and we have already ratified in October 2018.

4.283. Since the last TPR in 2012, Uganda has registered a number of achievements in the area of trade facilitation, export promotion, value addition, cooperative development and many other areas.

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A number of interventions have been made to address the country's widening trade deficit. Notably, is the National Export Development Strategy (NEDS). The NEDS implementation is expected to reduce the trade deficit, increase Uganda's export values and market share in key priority markets.

4.284. Some of these changes have been notified at the WTO, more particularly those relating to technical barriers to trade and TFA ratification. A National notification committee was constituted last year to address all outstanding notification by the end of 2019.

4.285. In 2017, Uganda ratified the WTO Trade Facilitation Agreement and the notification of its Category A. We are in the last stages of finalizing categories B and C identification and subsequent notification. We are committed to improve customs procedures by implementing a series of customs reforms to create a web-based paperless system of customs clearance.

4.286. The Ministry of Trade in collaboration with other stakeholders continues to implement the Electronic Single Window system, a trade facilitation initiative aimed at reducing the time it takes to clear goods. The system was established to address the delays in the clearance of goods, which was affecting the business community in Uganda and East Africa at large. The system has cut clearance time for imports and exports by over 25%.

4.287. Furthermore, the Government of Uganda, with support from development partners launched a One-Stop Portal for export, import and transit information in Uganda. It is an online platform where all the information regarding export, import and transit of goods in Uganda is available to traders, government agencies and all interested parties. The portal so far covers 25 institutions, 10 products and procedures for 6 key border markets.

4.288. Uganda has operationalized five Border Export Zones and implemented the Simplified Trade Regime for cross Border traders. A programme supported by EU under COMESA Regional Integration Implementation Programme (RIIP). Similarly, the Government of Uganda, through support from World Bank and TMEA, has constructed 8 Border Posts at Busia, Mutukula, Malaba, Elegu, Mirama Hills, Mpondwe, Goli and Katuna. Other infrastructure include Power dam construction at Karuma and Isimba and the establishment of industrial and export process zones. The Government is commitment to expanding the road networks and the Standard Gauge.

4.289. In July 2017, the Ugandan Government approved a National Policy on Services Trade with the aim of boosting trade in services and causing a reduction in the trade deficit. It is hoped that the implementation of the policy will contribute significantly towards growth of export values by USD 5000 million, annually over the next five years. This growth is projected to be realized through the implementation of the policy in the following priority sectors: tourism, transport, distribution, education, business services, construction and related engineering services, insurance, among others.

4.290. The Ministry of Trade, with support from Trademark East Africa, has continued to implement a web based Non-Tariff Barrier Reporting System that has helped in easing and enabling the reporting and resolution of NTBs among trade facilitating institutions.

4.291. This, in turn has reduced on the delays and costs of moving goods in and outside of Uganda across trading member States. Currently, 86% resolution of all NTBs reported through the system reducing movement of goods from Mombasa to Kampala from 21 days in 2011 to 4 days in 2018. To report by mobile phone, the user dials USSD Code *201# and follows instructions to select the appropriate NTB to report, and then submits a complaint. The system can be accessed using any type of telephone handset on any network registered in Uganda from anywhere in the world on roaming facility.

4.292. As a country, we are committed to industrial productivity and employment creation for the youth. The industrialization of Uganda's economy will be transformed to a sustainable path of economic growth. The Government is reviewing the Industrial Policy and Strategy to accommodate new developments in the sector.

4.293. The Ministry established an MSME Directorate to oversee the growth of MSME enterprises who account for 95% of the business establishments in Uganda, with a majority (57%) of these operating in the Trading sector.

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4.294. MSMEs have been aided in value addition to enhance their export capacities and skills development. An SME Policy and strategy was developed to guide development of this sector.

4.295. Given the current projections, the country is unlikely to achieve its target for the NDP2 and a new target is being developed in the ongoing preparations for National Development Plan 3.

4.296. The Government of Uganda will ensure that the National Development Plan III priorities the Trade sector and consolidates the budget frameworks on ongoing initiatives to facilitate trade and industrial development. We look forward to continued support from our development partners.

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5 REPLIES BY THE SPOKESPERSON OF THE EAC MEMBER COUNTRIES AND ADDITIONAL COMMENTS

5.1. I would like to thank all the Members present for the interest they have shown in the third EAC Trade Policy Review and for their valuable contributions to the reports produced by the WTO Secretariat, the EAC Secretariat and our Governments.

5.2. It is my pleasure to provide a summary of responses to the comments and questions raised during the first session as well as the issues related to EAC's economic environment, trade and investment policies, while at the same time pointing to the sector specific policies that were raised in advance and during this review.

Economic environment

5.3. The EAC economies have maintained solid growth in recent years, with an annual average growth rate of 5.5% between 2013 and 2017, more than double the African average. Over this period, inflation remained low and stable across the region. The EAC is expected to sustain this robust growth in 2019. Whilst the EAC had the second largest share on intra-regional trade compared to other African regional economic communities, this is still quite low when compared to other developing economies.

5.4. In order to boost intra-regional trade, the EAC has embarked on processes aimed at diversifying production structures to meet regional demand. Structural diversification in EAC is engineered and accelerated through the judicious use of industrial policy and the provision of the right set of incentives to the private sector. In that regard, the EAC has adopted an Industrialization Policy and Implementation Strategy (2012–2032) whose overall goal is sustainable economic and social development in East Africa. The strategy will contribute to the creation of a competitive private sector, supported by an enabling business environment for the establishment of a single market and investment area that would be internationally competitive. The following outcomes are expected from implementation of the strategy:

• Diversifying the manufacturing base and raising value addition of locally available resources prior to exports to 40% by 2032 from the currently estimated value of 8.6%;

• Strengthening national and regional institutional frameworks and capabilities for industrial policy design and implementation, and delivery of support services to ensure sustainable industrialization in the region;

• Strengthening Research and Development, Technology and Innovation capabilities to facilitate structural transformation of the manufacturing sector and upgrading of production systems;

• Increasing the contribution of intra-regional manufacturing exports relative to total manufactured imports, currently at 5% to about 25% by 2032, and extra regional manufacturing exports, currently at 32% to over 50% by 2032; and

• Transforming Micro, Small and Medium Enterprises into viable and sustainable business entities capable of contributing at least 50% of manufacturing Gross Domestic Product.

5.5. The EAC Industrialization Strategy has selected six priority industries as the ones with potential comparative advantage within the region: iron-ore and other mineral processing; fertilizers and agrochemicals; pharmaceuticals; petro-chemicals and gas processing; agro-processing; and energy and bio-fuels.

5.6. In order to mobilize resources for the implementation of the EAC comprehensive trade related programme, the EAC has implemented an Aid for Trade Strategy 2016-2020 which focuses on trade-related infrastructure, trade development, trade facilitation, and regulatory measures as well as on access to mechanisms for addressing the challenges emanating from trade. Under the specific objectives of the EAC Aid for Trade Strategy, a number of related results have been recorded.

5.7. Questions were also raised on the elimination of trade related impediments through non-tariff barriers (NTBs) in the EAC region. While the implementation of the existing mechanisms has resulted

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- 38 - in a substantial decline in NTBs, some core NTBs still persist, mostly affecting agricultural trade. The implementation of the EAC NTBs Act 2017 will strengthen the resolution process. The strengthened oversight of the implementation of the NTBs elimination mechanism through bilateral, Ministerial and Summit interventions will ensure the full implementation of the EAC Time Bound Programme on elimination of NTBs and thus reduce their negative impact on regional trade and investment.

5.8. Several issues were raised on multiple memberships of EAC Partner States to the different Regional Economic Communities. This observation arises from the fact that Burundi, Kenya, Uganda and Rwanda belong to COMESA while the United Republic of Tanzania is a member of SADC. As we informed the Trade Policy Review Body during the opening session, the EAC partner States have successfully negotiated the Tripartite (TFTA) and the African Continental Free Trade Area (AfCFTA) Agreements on goods as a bloc. Through the implementation of the Tripartite FTA, the EAC aims to resolve the issue of multiple membership by adopting harmonized rules across all the three Regional Economic Communities in COMESA, EAC and SADC.

5.9. On the issue of notification, the EAC partner States have faced challenges in making timely notifications to the WTO due to inadequate capacity in various agencies. This is an area that needs technical assistance and capacity building to improve notification requirements under different WTO agreements.

5.10. The EAC is in the process of reviewing its Common External Tariff and will address the concerns raised on tariffs and other related trade policy matters.

Trade and investment policies

5.11. EAC partner States have placed emphasis on addressing impediments faced through trade facilitation challenges. Since 2013 there have been improvements in the doing business environment among the EAC partner States. In order to further improve on the business environment, the EAC has prioritized the implementation of the WTO Trade Facilitation Agreement (TFA).

5.12. As a result, the region has adopted a Regional Action Plan on implementation of the WTO TFA. Project proposals that need donor support outlining key implementation issues have been developed.

5.13. In addition, the EAC partner States are rolling out other trade facilitation initiatives including Trade Information Portals whose objective is to support and monitor the implementation of national and regional trade facilitation agendas.

5.14. The EAC is also finalizing its Export Promotion Strategy 2019-2023 and the External Trade Policy. The Export Promotion Strategy is built on the four pillars, namely production, marketing, business environment, and institutional and capacity building.

5.15. Furthermore, the EAC External Trade Policy will ensure that the external trade policies of partner States are compatible with and reinforce the Common Market. The implementation of the EAC Trade policy will contribute to the competitiveness of all partner States and also further enhance the environment for value addition for all producers, including MSMEs.

5.16. The EAC recognizes the importance of harmonizing policies and laws on domestic taxes and has developed a domestic tax harmonization policy. This is intended to facilitate the free movement of goods, services, and capital, and the promotion of both domestic and foreign investments within the Community.

5.17. Standards development and implementation are crucial aspects for trade promotion in the EAC. The EAC Standards, Quality, Metrology and Testing (SQMT) Act and its regulations provides for trade facilitation infrastructure in respect of trade in goods. The EAC has harmonized, adopted and implemented over 1,500 standards under the 80 different sectors in support of trade and protection of consumer health, safety and the environment. The EAC is in the process of harmonizing additional standards.

5.18. The EAC is committed to liberalization of trade in services in a progressive manner. EAC partner States finalized revising their schedules of Commitments on the progressive liberalization of services, which include commitments on at least 78 services sub-sectors. Draft regulations on

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- 39 - movement of services and services suppliers are almost finalized. In addition, EAC partner States are drafting a mechanism for removal of restrictions on Trade in Services. In addition, Mutual Recognition Agreements (MRAs) covering recognition of academic and professional qualifications have been agreed for accountants, architects, engineers and veterinarians.

5.19. In order to ensure that the EAC Trade Regime serves the interest and promotes the welfare of all its citizens, gender considerations have been incorporated in its policy framework. In this regard, the EAC has taken several measures including:

• Implementation of the 50 Million African Women Speak Networking Platform Project which is supported by the African Development Bank;

• A simplified guide for Micro and Small-Scale Women Cross Border Traders and Service Providers in the East African Community (EAC); and,

• Simplified Trade Regime (STR) which is a special trade policy provision which carves out specific provisions for small cross border traders, the majority of whom are women.

Sectoral policies

5.20. The EAC has developed instruments to enhance productivity through the Agriculture and Rural Development Policy and Strategy (2005-2030); the EAC Food and Nutrition Security Policy and Action Plan (2018-2022); the Regional Agriculture Investment Plan (RAIP)- 2019-2026 and the Comprehensive African Agricultural Development Programme (CAADP). The Regional Agriculture Investment Plan will be the main instrument for mobilizing resources to support implementation of various programmes in the agricultural sector.

5.21. EAC partner States have developed a Protocol for cooperation on Sanitary and Phytosanitary related measures, which is in the process of being ratified. Furthermore, the EAC SPS Bill has been developed to enforce implementation of the SPS Protocol. These instruments will serve as the basis for harmonization of SPS measures. In terms of institutional framework for implementing the SPS harmonization programme, a regional SPS Committee will be established.

5.22. In addition, mining is an important sector of growth in EAC Region. In this respect, policy, legal and regulatory frameworks that govern the mining sector across the region are being reviewed with a view to putting in place better implementable instruments that cater for equitable benefits to investors and the respective economies.

5.23. In conclusion, I wish to reiterate that the East African Community aspires to attain a prosperous, competitive, secure and politically united region. The EAC is therefore committed to implement further economic policy reforms and develop infrastructure with a view to improving the business environment in the region. The EAC invites all WTO Members to invest in the region and take advantage of the improved policy environment and all available investment opportunities in the manufacturing and services sectors such as in ICT, finance, insurance, tourism, renewable energy, infrastructure (railway, roads and ports), as well as in agro-processing and mining. Thank you for your kind attention.

H.E. MR. JEAN MARIE NIYOKINDI (BURUNDI)

5.24. It is a great honour and pleasure to address the distinguished body reviewing the trade policies of the countries of our East African Community. I am delighted to be here.

5.25. I would first like to thank all the ambassadors and representatives of WTO Member countries who spoke at the opening of this Trade Policy Review, as their statements provided reassurance and encouragement to the members of our East African Community. For us, this is a testament to a highly commendable solidarity among the Members of the World Trade Organization.

5.26. As this is the first WTO Trade Policy Review that I have participated in, I can tell you unequivocally that I have been very pleased with the methodology put in place by the WTO to monitor its Members' trade policies. This methodology is irrefutable proof of the sustainability and

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- 40 - proper functioning of our Organization. It is, in effect, an international audit that seeks to examine trade policies and practices while emphasizing the values of transparency and predictability.

5.27. In the case of Burundi, the Review was able to point to areas where my country meets the requirements and we were commended by the reviewers. However, they also encouraged us to fulfil our obligations in other areas, including, to name just a few examples, ratification of the Trade Facilitation Agreement, Category B and C notifications under the Trade Facilitation Agreement, other notifications (for example, under TRIPS) and the application of tariffs higher than WTO bound rates.

5.28. In responding to this call, I can inform you that we have taken ownership of these obligations and reassure you that this third EAC Trade Policy Review has been a step in our learning process and has enabled us to develop a firm grasp of our trade policy obligations.

5.29. Taking into account what I have just said, if any Member finds that any of the questions it put to Burundi have not yet been answered, we apologize; the replies will be sent as soon as the entities with the required expertise in the area have been consulted so that the correct response can be obtained.

5.30. I would also like to take advantage of this opportunity to meet with our partners at the WTO, which brings together almost 90% of the world's countries, to solicit your assistance so that we can take advantage of the opportunities available to our country. Burundi lacks investors in several areas, including industry and trade, and there is very little investment in agriculture (coffee, tea, fruit, other agricultural products suitable for the tropical climate, etc.), fisheries, mining, energy, transport and infrastructure, and other services sectors such as tourism and finance.

5.31. It also goes without saying that our country has a very attractive investment code and facilitates the creation of enterprises in less than one day. Considering that WTO Members contribute to the goal of poverty reduction, I invite them to contribute to investment promotion in Burundi, which has been a WTO Member since July 1995; our country will be delighted to welcome them.

5.32. In concluding, I would like to thank all the ambassadors who have taken the time to review our trade policies and those of our East African Community. We also thank the WTO Secretariat, the EAC Secretariat and our fellow delegates from EAC member states. Thank you for your attention.

DR. CHRIS KIPTOO (KENYA)

5.33. Kenya welcomes the third joint Trade Policy Review for the East African Community Partner States by the WTO. I express our sincere appreciation to His Excellency, Ambassador Eloi Laurou, Chair of the Trade Policy Review Body, and the distinguished discussant, H.E. Dr. Athalia Lesiba Molokomme. I thank the WTO Secretariat for their excellent work in preparing for this review and the EAC Secretariat for coordinating the preparation at the regional level.

5.34. My delegation associates itself with the statement delivered by Hon. Soraya Hakuziyaremye, Minister of Industry and Trade, Republic of Rwanda as the spokesperson and Head of delegation for the East Africa Community Partner States to this Review. I also welcome the interest of the WTO Membership in this review and appreciate the constructive discussions that have been held so far.

5.35. During the review period, Kenya's overall policy objectives continued to be guided by its Economic Development Blue Print, the Kenya Vision 2030 which was launched in 2008. The Vision aims at moving the country towards the path of sustained high levels of inclusive economic growth in order to attain middle-income country status by the year 2030. We attained lower middle income status in 2014.

5.36. The Vision is being implemented in successive five-year Medium-Term Plans (MTP). The first such plan covered the period 2008–2012. The second phase covered the period 2013-2017 while the third phase covers the period 2018-2022 with an emphasis on the Government's Big Four Agenda among other initiatives. This Big4 Agenda focuses on increasing the share of Manufacturing to Gross Domestic Product (GDP) from 9.2% in 2017 to 15% by 2022, promoting Food and Nutrition Security, achieving Universal Health Coverage and facilitating the delivery of 500,000 affordable housing units to Kenyans by 2022.

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5.37. Since the last Review, Kenya has been able to consolidate its Trade Policy into a single Policy Document as opposed to the previous Reviews when the Policy was scattered across various Government policy documents. This has allowed for greater synergy in implementation and coordination. The focus of our National Trade Policy is institutional strengthening to ensure seamless coordination across government, and smooth development of Trade and Promotion Services. The Policy also provides for a Trade Remedies regime, strengthening trade in services and development of the digital economy among others.

5.38. We are also auditing our legal and regulatory frameworks to identify areas that are not responsive to the needs of investors with a view to taking corrective measures. Efforts are also ongoing to sensitize all agencies involved in Trade and Investment to ensure that their practices are sensitive to the needs of investors and do not change without due notification to all relevant stakeholders. This will ensure consistency and a predictable business environment.

5.39. Significant milestones have also been accomplished in the ease of doing business across borders during the review period. This is attributed to implementation of various enabling policies and the completion of key physical and digital trade infrastructure. These interventions have enabled Kenya to improve on the World Bank's Ease of Doing Business ranking from 121 in 2012 to 61 in 2018. We hope to further improve this ranking to below 50 in the foreseeable future.

5.40. Over the review period, Kenya's exports grew albeit modestly while imports grew significantly. In our quest to promote exports and narrow the trade deficit, the Government has developed an Integrated National Export Development and Promotion Strategy for the period 2018 to 2022. The strategy has identified eight key economic sectors that have the potential to generate additional export products and hence diversify our export range and by extension, the Kenyan economy.

5.41. The Multilateral Trading System embodied in the WTO remains a cornerstone of Kenya's trade policy. We firmly believe that a strong and well-functioning Multilateral Trading System provides stability for international trade and supports economic growth. This is the reason that Kenya joined the like-minded countries led by Canada, in attempting to find solutions to the current challenges facing the Multilateral Trading System. Kenya remains committed to fulfilling its transparency obligations and will provide information on outstanding notifications including on the Trade Facilitation Agreement in due course.

5.42. Regarding the African Union Peace Fund, Kenya is compliant in terms of its contribution but through normal budgets. Kenya has a robust Intellectual Property Regime that provides for the minimum required protection for Intellectual Property. This is reinforced by the 2010 Kenyan Constitution which stresses respect for and protection of Intellectual Property rights.

5.43. Kenya places significant premium on regional integration because of the important role it plays in trade and economic development. Within the EAC, we have made significant achievements in deepening and expanding our integration as pointed out in the EAC report. Some of the milestones include: customs modernization, establishment of One Stop Border Posts and enhancement of cargo movement in the main transit Corridors which have resulted in reduction in transit times. This has bolstered our quest to fully implement the WTO Trade Facilitation Agreement and we look forward to getting the necessary support from WTO Members.

5.44. Kenya is a member of the Common Market for Eastern and Southern Africa (COMESA) and the EAC-COMESA-SADC Tripartite Free Trade Area (TFTA). The TFTA will create an integrated market among its 26 Member States with a GDP of USD 1.4 trillion and a population of 700 million. To date, four countries have ratified the Agreement (Egypt, Kenya, Uganda and ) and another 10 more ratifications are required for the Agreement to come into force.

5.45. In addition, Kenya is among the 21 African Union Member States that have signed and ratified the African Continental Free Trade Area (AfCFTA) Agreement. This Agreement is just one ratification away from entry into force following the ratification by Ethiopia just a few days ago. The AfCFTA aims to boost intra-African trade by removing trade barriers. It will also help to cure the challenge of overlapping membership in various Regional Economic Communities while reaping the benefits of larger markets.

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5.46. In conclusion, I wish to thank WTO Members for showing interest in the EAC Trade Policy Review. We thank Members for their questions. We have endeavoured to respond to all of them. Any outstanding questions will be answered within the provided timeframe. We appreciate your honest assessment of our trade policies and practices and believe the recommendations of this review will enable us, as the partner States in the EAC, to deepen our integration efforts and contribute more to the multilateral trading system.

5.47. I once again express appreciation to all the Members for their keen interest in the third Joint Trade Policy Review of the East African Community Partner States and for the fruitful discussions we have had. Thank you for your kind attention.

DR. EDWIN PAUL MHEDE (TANZANIA)

5.48. At the outset, on behalf of the Government of the United Republic of Tanzania, I would like to join other distinguished speakers who have spoken before me, to congratulate you, for your excellent leadership and guidance throughout this Third Joint EAC WTO Trade Policy Review. You have judiciously done an exceedingly colourful job. Congratulations.

5.49. I would like to register my delegation's full support to the joint EAC response made by Hon. Soraya Hakuziyaremye, the Minister for Trade and Industry, Republic of Rwanda, on behalf of the EAC Partner States.

5.50. Also, I wish to thank H.E. Dr. Athalia Lesiba Molokomme, Ambassador of Botswana to the WTO, for the acceptance and her candid analytical report as a discussant in this process. On the same note, I would like to thank the WTO Secretariat and the EAC Secretariat for their collaboration, which the Government of the United Republic of Tanzania has enjoyed, since the start of this exercise in 2017.

5.51. Our valuable thanks go to other WTO Members. Their active participation in the joint EAC Trade Policy Review demonstrates the value and importance that the Members have attached to the integration process of EAC and to the principle of transparency through trade policy reviews.

5.52. Furthermore, I would like to take this opportunity to register my delegations' appreciations to the WTO Members who have raised specific questions, comments, and various contributions aimed at improving the economic prospects of the United Republic of Tanzania through trade.

5.53. Tanzania, as one of the founding Members of the WTO, supports the multilateral trading system. We have no doubt that the existing and future multilateral trade rules will continue to deliver for all, and mostly for LDCs. Hence, a continued enhancement of transparency in multilateral trade remains one of the fundamental tools for predictable trade. Yes, there are challenges facing the multilateral trading system. Despite the challenges, Tanzania will continue to work together with other like-minded WTO Members in the on-going negotiations for achieving fair trading rules.

5.54. Allow me now to address this august congregation on the recent economic performance of Tanzania as a reflection of what has been done in trade arena. While addressing Tanzania's economic performance, I will attempt to respond to some of the questions raised during the review process by the WTO Members to Government of Tanzania.

5.55. The economy of the United Republic of Tanzania has continued to register strong performance in the recent years. The real GDP growth, which stands at an average of 7.1% between 2013 and 2017, is a commanding evidence to substantiate our argument. And, indeed, our economic outlook indicates clearly that this growth will be sustained even in the near future. In part, the growth trajectory is largely attributed to the on-going efforts in building a vibrant private sector-led and government-assisted industrial sector, implementation of infrastructural projects to support productive sectors, and a concomitant application of result-based efficient management practices to improve the delivery of public goods and services which have a direct connexion in trade development. The major efficiency improvements have been registered in water, energy, road, railway and airport, diversification of agriculture sector, and increase in production of some minerals (e.g. diamond and coal).

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5.56. The economic activities which have recorded the highest growth during 2017 included mining (17.5%), water supply (16.7%), and transport and storage (16.6%). Others were information and communication (14.7%) and construction (14.1%). In addition, the growth rate of agriculture sector, which employs about 66.3% of our population and which accounts approximately 20% of export earnings, increased from 2.1% to 3.6% in 2016 and 2017, respectively. Which translates an increase of 1.5 percentage point during the period under the review.

5.57. On the macroeconomic development, particularly inflation, Tanzania has maintained this variable at a single digit since 2013 to date. In 2017, the headline inflation averaged at 5.3% from an average of 16.0% recorded in 2012. The development is mainly contributed by the improvement of supply of food in the domestic market coupled with the effective implementation of fiscal and monetary policies.

5.58. The Government of Tanzania places high priority in trade facilitation. To this effect, the Government has continued to pursue strategic interventions aimed at improving business environment in the country. I will point some of them:

• Launching of the BLUEPRINT last year which was approved by the Cabinet in 2018. The BLUEPRINT seeks to address regulatory hurdles and create a smart, functional, and fair business regulatory regime in the country.

• Introduction of the Online Registration System (ORS). This system enables the business community and public in general, to access all services offered by the Business Registration and Licensing Agency (BRELA). In fact, they do so wherever they are without physically visiting the respective offices. In part, this is due to the importance of easing the process of establishing business within the canonical microeconomic theory of free entry and exit.

• Establishment of the National Business Portal (NBP) as one of the Trade Facilitation measures and an ongoing development of the Trade Information Portal (TIP). For efficiency purpose, the latter (i.e., TIP), once completed, it will be imbedded in the National Business Portal (NBP). Indeed, the portal will ensure availability of business information including export and import procedures to traders and public in general.

• Infrastructure development in the form of roads, flyovers, railways, modernization of harbours and airports which are key enablers in facilitating seamless trade.

• Power generation projects to ensure availability of enough and cost-effective energy for smooth production as we are catching up in the industrial development.

5.59. Regarding the Trade Facilitation Agreement, which was one of the key issues for many Members who had the chance to ask questions to Tanzania, the Government in collaboration with other EAC Partner States, notified Category A measures in 2015. Then, in 2016, we established a National Committee on Trade Facilitation (NCTF). Also, the Government is in the advanced stage of ratifying the TFA. We do that by abiding to the domestic ratification procedures. All being well, we shall conclude TFA in the near future.

5.60. Tanzania is aware of the importance of continuous performance improvement through adoption of efficient technologies. Therefore, through Tanzania Revenue Authority (TRA), in 2015 the Government launched a customs system, which is dubbed as Tanzania Customs Integrated System (TANCIS). It provides an avenue to customs stakeholders in the clearance of goods. Indeed, TANCIS allows Other Government Departments (OGDs), which work with customs, to lodge the customs documents on the same entry. In turn, this has enormously reduced clearance time and both explicit and implicit cost related to trade.

5.61. Tanzania is also in the process of developing the Electronic Single Window System (eSWS). The system will bring together all organizations and agents involved in clearance of goods and services. Being a trade facilitation tool, the Government is intending not to charge user fees for the use of this system once it is completed.

5.62. Tanzania and other EAC Partner States are guided by the East African Customs Management Act (CMA) of 2004 in their customs operations. This includes procedures for licensing requirements

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- 44 - for clearing and forwarding agents and on the advance ruling. The CMA provides for Advance Rulings which cut across envisaged classification, rules of origin, and valuation. These are valid through and applicable to all ports of entry to the country.

5.63. The United Republic of Tanzania is a country blessed with a long coastline. The length of coastline, including Zanzibar and Pemba Islands, stretches approximately 1,424 km along the Indian Ocean. In this regard, the fishery sector is among the key priority sector in the country.

5.64. Tanzania supports the on-going efforts to conclude negotiations on fisheries subsidies. We believe that the Fisheries Agreement will be a pivotal multilateral instrument for sustainable marine resource exploitation. Tanzania is explicitly against all forms of Illegal, Unregulated, and Unreported (IUU) fishing. To overcome these fishing malpractices, the country has established the Deep-Sea Fishing Authority (DSFA) with mandate to licensing the vessels intended for fishing in the Exclusive Economic Zones (EEZ). Furthermore, the Authority is responsible for monitoring compliance to the licensed vessel through monitoring and surveillance programmes.

5.65. We are currently reviewing key sectoral policies in the country. These include the National Trade Policy (2003) and the Sustainable Industrial Development Policy (1999-2020). The overarching objective of the review is to take onboard and align the policies with the developments that have taken place and the emerging opportunities at national, regional, and multilateral level. At the same time, the United Republic of Tanzania is formulating the National IP Policy and its Strategy. The IP Policy will address, among others, the conventional issues of industrial property rights ranging from Patents, Utility Model, Trade and Service Marks to Geographical Indications, Traditional Knowledge and Folklore as well as Copyrights and Neighbouring Rights.

5.66. We have submitted all answers to the questions that were liaised to our country. I request all WTO Members to go through those written responses. If need be, we remain at your disposal to provide further clarification.

5.67. Once again, I thank you very much Chairperson and all Members of the WTO for their fruitful deliberation during the WTO joint EAC Trade Policy Review. Thank you so much. Asante Sana.

H.E. DR. FRANÇOIS NGARAMBE (RWANDA)

5.68. It is a great honour to make this brief country statement on behalf of Rwanda delegation.

5.69. First of all, allow me to commend you, Chair, for the able manner in which you have been conducting our meeting since our first session on Wednesday. I also wish to pay tribute to H.E. Ambassador Molokomme for her insightful observations and recommendations in her capacity as the discussant for this review. I also wish to appreciate Members' interest and support.

5.70. Rwanda has embarked on a development path driven by fundamental reforms that have contributed to a steady growth and inclusive socio-economic development. Rwandan economy performed well in 2018, recording a growth rate of 8.6% up from 6.1% in 2017. The inflation was kept below 2-digit level during that period and has decreased to reach below 2% last year. Rwanda has maintained a consistent and bold business environment improvements with over 50 business reforms implemented since 2007, hence its position as a top reformer in doing business, ranking second in Africa and 29th globally in the 2019 Doing Business Report by the World Bank. Recent improvements in regulatory reforms were made in the areas/indicators of protecting investors, resolving insolvency, getting credit, paying taxes, the longstanding achievement for many years in registering property and simplified company registration within only 6 hours (through online registration and one-stop shop). This favourable investment environment has contributed to further attracting and raising both foreign and domestic investments as in 2018 only investment registered were worth USD 2 billion, contributing to increased job creation and poverty reduction.

5.71. In addition to a favourable doing business and a sound macroeconomic environment, Rwanda has also made strides in trade facilitation. Rwanda has ratified the TFA, and notified measures in all categories (Category A, B and C). The TFA Implementation process started smoothly ahead before the TFA entered into force. Support for full implementation of the agreement is welcome. Another milestone achieved by Rwanda is the introduction of information portal facilitating access to trade-related information and the electronic customs Single Window in 2012 which enable traders

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- 45 - to submit customs documents online. Under the EAC Single Customs Territory, TF has become even more efficient in terms of time required to clear goods and reduced cost of doing business. Other achievements such as one-stop border posts, working 24 hours at almost main borders and streamlined customs procedures within EAC have contributed in accelerating movement of goods across borders.

5.72. Despite all these efforts, the economic structure of the Rwandan economy remains largely unchanged with agriculture accounting for 29% of the economy, while industry and services make up 16.2% and 47.8% respectively.

5.73. In order to further accelerate the structural transformation, the Government of Rwanda has adopted the National Strategy for Transformation which is a bold transformative agenda encompassing the remainder of the Vision 2020, the remainder of the Economic Development and Poverty Reduction Strategy (EDPRS2), the first 4 years of a new 30-year Vision for the period up to 2050, known as Vision 2050; and also the sustainable Development Goals (SDGs); the African Union Agenda 2063, as well as the EAC Vision 2050.

5.74. The National Strategy for Transformation is built on 3 pillars; namely: (i) Economic Transformation, (ii) Social Transformation, and (iii) Transformational Governance. The economic transformation pillar is aimed at accelerating inclusive economic growth and development founded on the private sector, knowledge and Rwanda's natural resources. Among key specific objectives are the creation of decent jobs, industrial development, and an export promotion with a target of annual export growth of 17% in order to address the current trade deficit; as well as the development of trade-related infrastructure. In order to achieving these targets, the Government has adopted, among others, the Private Sector Development and Youth Employment Strategy for the development of a competitive private sector.

5.75. At the core of this strategy is the value chain approach. This is an innovative approach that will induce backward linkages between key firms and local suppliers across the country. The initiative will help boosting the made in Rwanda for increased competitiveness by enhancing domestic market through value chain development. Measures such as technology upgrading support, skills development, access to finance and trade facilitation, improving quality, knowledge and skills transfer to small players in the value chain are key ingredients for improving productivity and success of the entire value chain.

5.76. Priority value chains are: (i) agro-processing; (ii) light manufacturing (textile and garment, construction materials, electronic assembly); (iii) horticulture; (iv) tourism; (v) knowledge-based services (such as finance, ICT and BPO); (vi) logistics and transport including aviation and road transport services.

5.77. The digital economy is also among our priorities. Rwandan firms are currently selling online in partnership with Alibaba, thus enjoying higher prices due to the virtual proximity between sellers and buyers without a middleman. Furthermore, with key innovations and initiatives such as the Kigali Innovation Centre (a flagship initiative for innovation-led economic transformation); Rwanda will be able to bring together local and international technology anchor companies, "special innovation centers" nurturing a network of early-stage companies; a community of world-class learning institutions providing an annual supply of high-aptitude pan-African talent that will be able to propel Rwanda and indeed Africa in the 4th industrial Revolution; so to avoid missing once again another Revolution.

5.78. The current ongoing review of the industrial policy will update priority areas. On this note, I wish to take this opportunity to inform you that Rwanda is partnering with UNIDO to implement the PCP - Program for Country Partnership - which is a strategic programme for industrialisation requiring country coordination and resource mobilization from the private sector, multilateral and bilateral donors. We look forward to partner with many of you so to smoothly implement the PCP in Rwanda and we are committed to making it a success.

5.79. To conclude, Rwanda remains committed to a liberalized economy, regional, continental and multilateral integration and supports the rule based, fair and equitable multilateral trading system. Rwanda will endeavour and work to further fulfil her obligations while ensuring a level playing field to all our trading partners. I thank you.

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DISCUSSANT

5.80. Allow me to once more welcome the distinguished Ministers and delegations of the Member States of the EAC countries led by H.E. Ms Soraya HAKUZIYAREMYE, Minister of Trade and Industry of the Republic of Rwanda. Let me also acknowledge the comprehensive statement delivered on Wednesday 20th March on behalf of the EAC countries, and their joint efforts to realize their vision to create wealth and raise the living standards of their people. I observed that the EAC countries displayed commitment to the Trade Policy Review Mechanism by way of their detailed responses, and for the written replies provided for the Wednesday session and today.

5.81. I would also like to thank Members for their dynamic engagement in the EAC's third Trade Policy Review. The interest and commitment to trade with the EAC countries was reflected in the various statements made during the opening session, and in the advance written questions.

5.82. Without getting into the details of the issues mentioned by the Members during the Review, I would like to briefly highlight a few points.

5.83. Members commended the EAC countries for the strong overall economic performance during the review period, despite facing challenges such as low intra-EAC trade, limitations in infrastructure development, and the proliferation of non-tariff barriers. While the EAC countries were commended for the ambitious integration agenda, concerns were raised that policies were yet to be harmonized at national level – such as on customs related issues.

5.84. Some concerns were also raised regarding the high costs of doing business in the region, although Members welcomed the continuing reforms by the EAC countries to improve the doing business environment, such as improving customs processing systems and other trade facilitation initiatives that were, once again, reiterated by the head of delegation this morning.

5.85. Some Members encouraged that the TPR provides an excellent opportunity for an exchange of information and best practices on the nexus between trade, gender and development. This is indeed an opportunity for the EAC countries – and the WTO Membership for that matter - to harness their development imperatives especially in the areas of fighting poverty and ensuring inclusive and sustainable development.

5.86. Having said all that, I would like to encourage the EAC countries to consider seeking technical assistance from the WTO Secretariat to help them implement the reforms identified through this TPR process.

5.87. Such technical assistance could be pursued at both the regional and national levels to help improve the EAC countries' compliance with their WTO commitments.

5.88. As I conclude, Chairperson, I would like to once more congratulate the delegations of Burundi, Kenya, Rwanda, Tanzania and Uganda, and the Secretariats of the EAC and WTO, for the hard work and effort that went into preparing for this TPR of the EAC countries.

5.89. To the delegation of South Sudan, it is my sincere hope that the first meeting of the "Working Party on the Accession of South Sudan to the WTO" will carve a path to economic growth and usher in an era of development, stability and peace.

5.90. Personally, it was an honour and my pleasure to serve as discussant for the TPR of the EAC countries, that was generated by the high-level delegations from the EAC countries. This reflects a welcome commitment by the Members under review to the WTO and the multilateral trading system.

5.91. Finally, let me thank you, Chairperson, H.E. Mr Eloi Laourou, for the excellent manner in which he steered the proceedings during this review, and most importantly for your service as Chair of Trade Policy Review Body during 2018. I thank you.

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HAITI

5.92. The delegation of Haiti commends the member States of the East African Community for their dynamic contribution to the conclusion of negotiations at the WTO, particularly in areas that pave the way for convergence.

5.93. The delegation of Haiti encourages the member States to work towards diversifying their economies in order to increase their export earnings, which can give a boost to their economies.

5.94. Furthermore, the delegation of Haiti applauds both the reform efforts of the EAC countries aimed at establishing a monetary union by 2024 and the economic convergence framework put in place in 2007.

5.95. The delegation of Haiti supports the statement made by the ACP Group of States as part of this Trade Policy Review.

5.96. The delegation of Haiti would like to take this opportunity to wish the delegations of the EAC member countries every success in this exercise.

UNITED STATES

5.97. The United States thanks Ms. Hakuziyaremye for her excellent stewardship of the EAC's Trade Policy Review. We also express our appreciation to Ambassador Molokomme, whose insightful remarks helped frame our discussions. And, as always, we greatly value the work of the Secretariat staff in preparing the documents that made this review possible.

5.98. We recognize the extensive effort made by the delegations and the Governments of Burundi, Kenya, Rwanda, Tanzania, and Uganda to respond to the questions posed by Members. We thank the EAC for the responses we have received but note that a number of U.S. questions remain unanswered. We also submitted a number of follow-up questions this morning. We look forward to complete written responses within the timeframes set out for this review.

5.99. We applaud the EAC on the steps it has taken to remove administrative and infrastructure related barriers to trade. The NTB elimination mechanism and the multi-sector monitoring system for the removal of restrictions to trade in services are innovative solutions. We also take note of how the implementation of the single customs territory has led to significant reductions in the time required to transport goods within the EAC. We commend the EAC's commitment to reviewing the CET, addressing standards recognition, and liberalizing certain service sectors. These activities will undoubtedly support the consolidation of the EAC's customs union and progress toward a common market.

5.100. We value the EAC's commitment to transparency and their active engagement at the WTO. We thank the members of the EAC who have ratified the TFA and appreciate the ratification timelines provided by Burundi and Tanzania. We look forward to them meeting these deadlines. We recognize the efforts made by all EAC members to notify their Category A measures and commend the development of a regional plan to implement Category B and C measures. Finally, we look forward to working with South Sudan, the EAC's newest member, on its WTO accession process in the coming months.

5.101. The EAC is an important trading partner for the United States. We appreciate the opportunity to have participated in this TPR and we offer our sincere congratulations to the delegations of the EAC for a successful Trade Policy Review.

EUROPEAN UNION

5.102. Let me first thank the East African Community (EAC) and its members for the comprehensive overview presented last Wednesday of the main developments occurred during this review period as well as for the statement this morning. We also thank Burundi, Kenya, Rwanda, Tanzania and Uganda for their country statements this morning.

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5.103. The EU is pleased to note that this review has been very useful for better understanding the trade policies of EAC and we hope that the countries reviewed will duly take into account some of the challenges highlighted by Members.

5.104. The EU appreciates the timely replies provided to most of our questions and we would also be grateful to receive replies to the following EU questions. Questions regarding the report by the WTO Secretariat on EAC: questions number 2, 17, 24, 28, and 29. Questions on Annex I on Burundi: questions number 34, 36, and 41. On Annex 2 on Kenya: question number 72. On Annex 4 on Tanzania: questions number 78-85 but we take note of the statement by Tanzania this morning and we will review the replies accordingly. And finally, report by EAC: questions number 95, 96 and 102. We look forward to the replies in due course.

5.105. The EU also has submitted two follow-up questions related to Burundi's coffee and tea sectors and regarding containers with products from the EU kept at Kenya's Port of Mombasa. We look forward to the replies in due time.

5.106. On behalf of the EU, I would like to thank the delegations of Burundi, Kenya, Rwanda, Tanzania and Uganda for their constructive participation in this exercise.

BENIN ON BEHALF OF THE AFRICAN GROUP

5.107. The African Group would like to express its appreciation for the way the Chair has conducted this Trade Policy Review session and to thank the discussant, H.E. Ms Athaliah Molokomme, Ambassador and Permanent Representative of the Republic of Botswana in Geneva. We commend the EAC member States for this Trade Policy Review and for their pertinent replies to the various questions posed by WTO Members.

5.108. The African Group encourages the EAC member States to continue implementing the measures announced in order to improve on their performance to date. We also invite them to continue their enriching contributions to the ongoing WTO negotiations so that, together, meaningful outcomes can be achieved at the Twelfth Ministerial Conference in 2020. Thank you.

INDIA

5.109. We have had a productive meeting of the member countries of the EAC. The statements have highlighted their ongoing efforts and initiatives for promoting economic growth.

5.110. We commend the efforts of the East African Community countries for these initiatives, which include progressing on their integration agenda to establish a customs union, a common market, a monitoring union and ultimately a political federation of the East African States.

5.111. India shares both warm and friendly relations with all member countries of the East African Community. An important pillar of relations with Africa is development partnership cooperation. We have a consultative partnership to assist countries to pursue their development objectives, based on sharing of development experiences and forecast on addressing their priorities and needs.

5.112. Our development partnership has deepened in recent years, with the three Africa-India summits, with projects being implemented for cooperation in areas of infrastructure, development, agriculture, irrigation, transport, health, power and IT.

5.113. India has a comprehensive five-year plan for deepening the development assistance in Africa, which includes USD 10 billion in concessional lines of credit and a grant assistance of USD 600 million. We are also assisting in the area of capacity building in human resources, for which India has announced a plan of 50,000 scholarships in the next five years, under various programmes, for students and professionals, under the Indian Technical and Economic Cooperation Programme. All member countries of the East African Community are also actively engaged in these initiatives.

5.114. The member States of the East African Community are blessed with enormous natural resources, including in the area of agriculture, and have tremendous potential for growth.

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5.115. Let me reiterate, India stands committed to support these countries for pursuing their development goals and to deepen our bilateral trade and investment ties for mutual benefit.

5.116. We congratulate the member countries of the East African Community for a successful TPR, and we wish their delegation a safe journey back home.

CHINA

5.117. I would also like to extend my sincere thanks to the EAC delegation for a very hard work and full engagement in this TPR.

5.118. Like other Members, China attaches great importance to this TPR, and we appreciate the replies to China's advance written questions.

5.119. China recognizes the long and solid trade relationship with the EAC, and looks forward to boosting our continued interaction and cooperation.

5.120. To conclude, I congratulate the EAC delegation again for a successful Trade Policy Review.

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6 CONCLUDING REMARKS BY THE CHAIRPERSON

6.1. This third joint Review of East African Community (EAC) Member countries has provided us with a good opportunity to assess the developments in their trade policies and practices, in the context of their regional integration initiatives, since their previous joint Review in 2012. We now have a better understanding of their trade regimes and the challenges they are facing.

6.2. We are grateful for the active participation by the delegations from the five EAC Member countries headed by: H.E. Mr. Jean-Marie NIYOKINDI, Minister of Trade, Industry and Tourism, for Burundi; Dr. Chris KIPTOO, Principal Secretary, State Department of Trade, for Kenya; H.E. Ms. Soraya M. HAKUZIYAREMYE, Minister of Trade and Industry, for Rwanda; Dr. Edwin Paul MHEDE, Deputy Permanent Secretary, Ministry of Industry and Trade, for Tanzania; and H.E. Ms. Amelia Anne KYAMBADDE, Minister of Trade, Industry and Cooperatives, for Uganda. A delegation of the EAC Secretariat and a delegation from South Sudan, a member of the EAC and currently in accession to the WTO, also participated as observers in the meeting.

6.3. The review has benefitted from the constructive comments by our discussant, H.E. Dr. Athaliah Lesiba MOLOKOMME, Ambassador of Botswana; and by the 33 Members that took the floor. Members appreciated the responses provided to more than 400 advance written questions and look forward to answers to any outstanding questions within the prescribed deadline of one month.

6.4. Members commended the EAC countries on their strong overall economic performance and the concurrent improvement in their key socio-economic indicators during the period under review. This performance was largely supported by increased public investments in infrastructures for, inter alia, transport, energy, and information and communication technology (ICT). The resulting fiscal deficits have suggested a call by certain Members for fiscal prudence, mainly in the perspective of macroeconomic convergence within the EAC and reduction of its members' reliance on border taxes. Further reforms aimed at improving participation by women in the economy was viewed as a way to make the EAC countries' performance more inclusive.

6.5. Members praised EAC countries for their strong commitment to the multilateral trading system. They took note of the adoption of the Tripartite Agreement aimed at harmonizing policies between the EAC, the Common Market for Eastern and Southern Africa (COMESA), and the Southern African Development Community (SADC), and of the progress towards establishment of the African Continental Free Trade Area. They sought details about the full implementation of these initiatives that aim at addressing concerns relating to overlapping memberships.

6.6. Members sought details about regional and national initiatives for implementation of the Trade Facilitation Agreement (TFA). They encouraged Burundi and Tanzania to promptly ratify the TFA, and invited Kenya and Uganda to submit their outstanding notifications of Categories B and C commitments.

6.7. Members welcomed the progress made by the EAC countries in liberalizing intra-community trade through, inter alia, the dismantling of tariff and some non-tariff measures, the establishment of one-stop border posts, the introduction of an Authorized Economic Operator scheme, and initiatives for interconnectivity of customs systems. The EAC's aspirations for deeper integration were also acknowledged, notably the adoption of the East African Monetary Union Protocol aimed at establishing a monetary union by 2024. However, intra-EAC merchandise trade remains low due mainly to non-tariff barriers.

6.8. In consequence, Members recommended further simplification by EAC countries of their customs procedures and documentation requirements. They also saw scope for further harmonization of internal taxes, standards and technical regulations, competition and intellectual property rights regimes, and sectoral policies, including on services. Some Members urged EAC countries to limit their frequent and extensive recourse to waivers from the common external tariff (CET). Concerns were also expressed about the increase in non-ad valorem duties under the CET.

6.9. EAC countries were urged to ensure compliance with their tariff binding commitments and to continue improving their adherence to WTO disciplines on, inter alia, notification, customs valuation, sanitary and phytosanitary measures, technical barriers to trade, and intellectual property rights. They were encouraged to become observers to the Agreement on Government Procurement, and

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- 51 - some Members invited them to join the initiatives on investment facilitation, MSMEs and electronic commerce given their recent efforts to modernize their ICT infrastructures.

6.10. In closing, I would like to thank the delegations of the EAC countries, our discussant Ambassador Athaliah Lesiba MOLOKOMME, and the other Members for their contributions to the third joint Trade Policy Review of EAC countries.

6.11. The large number of advance written questions and of delegations that took the floor during this meeting highlights the interest Members attach to the EAC's trade and related policies. I am certain that the constructive comments made during this Review will help EAC countries to formulate policies that enable them to further enhance competitiveness and address current difficulties and future challenges. The outcome of this Review could well fit into debates at national and regional levels, and I strongly encourage EAC countries to consider organizing TPR follow-up activities. I urge all Members to strengthen their support to EAC countries' development and reform efforts.

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7 ELECTION OF A NEW CHAIRPERSON OF THE TPRB

7.1. As indicated in my remarks on Wednesday, we have a second agenda item for today. We now move to the election of a new Chairperson of the TPRB for 2019. At its meeting on 28 February 2019, the General Council noted the consensus on the slate of names of Chairpersons for WTO bodies, including the Permanent Representative of the Philippines, H.E. Ambassador Mr. Manuel A.J. Teehankee as the Chairperson of the Trade Policy Review Body.

7.2. In accordance with the Rules of Procedure of this body, I have the pleasure to propose that Members of the Trade Policy Review Body elect, by acclamation, H.E. Ambassador Teehankee as the Chairperson for 2019.

7.3. It is so agreed. I would suggest that Members of the TPRB confirm their support for his election with a round of applause.

7.4. Now, I would like to invite Ambassador Teehankee to join me in the podium.

7.5. As I handover the gavel and wish Ambassador Teehankee every success in the year ahead, I would like to thank Members for entrusting me with the work of the TPRB and allowing me to serve you in this capacity during the last 12 months. Please allow me to share some personal thoughts from this experience after the 15 TPRs covering the trade policies of 20 Members.

7.6. I would like for you to know that it was, quite sincerely, a pleasure for me to chair the Members' Trade Policy Review meetings in 2018, with support that was highly appreciated from the WTO Secretariat team, particularly the Trade Policy Review Division, including Director Willy Alfaro's professional and responsive team, the counsellors and the Division's entire staff, and beyond that division, the entire Secretariat, whose involvement is needed given the structured and focused work required. Considering the elements and information that have to be brought together, this made my task simpler. I thank you and commend you for your efforts, commitment, professionalism and responsiveness.

7.7. I would also like to thank all the Members who participated diligently in the previously discussed Trade Policy Reviews of 20 Members. There have been many exchanges, many contributions, and the exercise in itself is really an exercise in transparency and we should keep it as it is. It is not intended to unsettle Members but rather to induce them to share what they are doing on the ground in terms of rules, policies and activities in the various sectors, and to produce better results every day. It is a good exercise and we should continue with it and keep it at the same high level.

7.8. I would also like to thank our friends in the interpreters' booths who have been with us and whose presence I also greatly appreciated during these sessions. I thank you most sincerely and I commend you for your professionalism and receptiveness and for the excellent working relationship we have had, and I urge the entire team to support Ambassador Teehankee, who is also a committed, receptive and approachable individual and who I am sure will do an excellent job. He can certainly count on my support. I will be with you in 2019 and through March of 2020.

7.9. I would like to suggest that all the Members and Member groups that had Trade Policy Reviews in 2018 and, now, the EAC closely follow the recommendations made so that the proposals and the comments made by Members can, to the extent possible and with the same commitment and willingness, be implemented for the benefit of the Members under review, the economies of leading countries and the populations on the ground. Thank you very much and I wish you all the best.

7.10. I would like again to sincerely thank everyone for your confidence and cooperation during the past year, and I now hand over to Ambassador Teehankee.

H.E. MR. MANUEL A.J. TEEHANKEE

7.11. I would like to begin by expressing my deep gratitude and congratulations to Ambassador Eloi Laourou, for his most able and very successful Chairmanship of the Trade Policy Review Body this past year and concluded today with the successful third joint Trade Policy Review of the EAC. It is almost the same time last year when Ambassador Laourou assumed his post during the fifth Trade

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Policy Review of the Philippines. I humbly take on this duty and privilege as Chair of the Trade Policy Review Body for the year 2019.

7.12. I thank the WTO Members for entrusting me with this responsibility, which I take seriously. Monitoring of national trade policies is a fundamentally important activity running throughout the work of the WTO, and at the very center of this work is the Trade Policy Review Mechanism (TPRM).

7.13. This year will mark an important milestone in the history of the WTO Trade Policy Review Mechanism, as we are commemorating the 30th Anniversary of the introduction of this peer review mechanism by the GATT in 1989. Together with the WTO Director General and the Secretariat, we will be celebrating this milestone with a special workshop in November of this year where Members can hopefully evaluate the TPR mechanism and exchange views and insights on enhancing and improving the system of review.

7.14. With these words, I can declare the current meeting closed and I look forward to seeing all of you at our next meeting on the 3rd of April for the Trade Policy Review of Bangladesh. Thank you.

7.15. With these words, I declare the meeting closed.

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