This study used a spatial equilibrium modelling approach to quantify the
relative welfare impacts of eliminating tariffs and non-tariff barriers on trade
in dairy products among East African Community (EAC) member countries.
The results indicated that removing tariffs only would not produce any
significant welfare improvements unless it was accompanied by tradeenhancing
measures such as reductions in non-tariff barriers and transport
costs. In the current modelling framework, net welfare gains were higher in
relatively lower-income countries like Burundi than in higher-income
countries like Kenya. This indicates that reductions in trade costs may reduce
regional imbalances in the EAC.
Gelan, A. and Omore, A. 2014. Beyond tariffs: The role of non-tariff barriers in dairy trade in the East African Community free trade area. Development Policy Review 32(5): 523-543