Tanzania-Kenya Trade Relations:An Analysis Of Convergence And Divergence Of Interests(2010 – 2015)

This study examines Tanzania-Kenya trade relations with a view of finding out factors influencing divergences and convergences of interest.Tanzania-Kenya relations can be traced back to colonial time with the inception of the East Africa High commission(EAHC)from 1948 to 1961,the East African Common Services Organization(EACSO)from 1961 to 1967,and in 1967 to 1977 East Africa Community.This provided a Customs Union,Common External Tariff,and Single Currency.In addition,following the end of cold war in 1990 s EAC was revival again.Overtime relations between the two nations(Tanzania and Kenya)have been conducted within the wider framework of East Africa integration initiatives.From the beginning,there were three partner states Kenya,Tanzania and Uganda but later enlarged as currently constituted comprising are six members after Rwanda,Burundi and South Soudan.Since its revival in 2000,EAC has involved and partner states to signing of a number of protocols in integration process.The treaty for establishment EAC was signed 30 th November,1999 and come into force in 7th July,2000 the first stage of EAC integration were formation of a Customs Union,skipping the earlier stages of Preferential Trade Area(PTA)and Free Trade Area(PFT),following with the common market with hope of monetary and finally political federation.The of result custom union(CU)was to improved market access,business activities,increase of awareness for the regions and common external policy.It this integration framework that ideally is supposed to guide relations between partners' states especially Tanzania and Kenya.So far,the integration is at the common market stage which was suppose to introduce free movement of people,labor,and services and capital as well the right of establishment and residence.Ideally relations between partner's states are therefore supposed to be guided by communities signed protocols.However,the relations between these states,with case study of Tanzania and Kenya has been punctuated by both agreement and disagreements in various areas that ought to guide integration process.It is on this basis that this study sought to examine these divergence and convergence of interest as partner states trade relation with special emphasis on Tanzania Kenya.This is due to the fact that,among the partner states,it is Tanzania-Kenya trade relations that had pronounced differences on communities agreed protocols.It is on this basis that the study sought to explain why it has been so.The problem for the study being therefore convergence and divergences of interests in Tanzania-Kenya relations in the region as understood within the framework of custom union and later common market.Towards this end the study is guided by the following research questions;why do Tanzania and Kenya have convergence and divergence of interests in trade policies? What are the areas and reasons of convergence and divergence of interests in Tanzania Kenya relations?The study employs the case study research designed to examine Tanzania and Kenya trade relations an analysis of convergence and divergence of interest using qualitative and quantitative approach in data collection.Data collection entailed,indepth data collection involving multiple sources of information observations,interviews,audiovisual material,documents and published reports.The case studies designed employed here focused on a particular situation as being the relation between Tanzania and Kenya over time.Content analysis was used to analyze the data collected based on study themes.The study employed Thomas Oatley(2011)sector model to examine Kenya and Tanzania trade relations and support accorded to free market and common market protocols.As argues that trade politics is determined by rivalry between competition industrial sectors.Different industrial sectors have a corresponding different income effect which in turn tends to divide society based on industrial lines.Due to competition,different industries are likely to offer varying returns.In a globalized world,the net beneficiaries are those in industries that have more returns in a competitive market.Those industrial sectors that stand to gain from free market would therefore be in support for trade liberalization.In return workers such sectors stand to gain with such moves(liberalization)as evidenced with the adoption of free trade and common market protocols.The sector model explains the opposition to the full implementation of common market protocols because of partner states stands to lose on specific issues.The study argues that convergence and divergence of trade interests is informed by national interests of partner states,and more so in specific sectors that partner states stand to lose.In line with the argument,the study finds convergence and divergence of interest between Tanzania – Kenya trade relations as the focus.More so,is the divergence of interest on areas that are supposed to be in agreement as captured in the integration framework of common market.Common market protocol provides member state citizens' free movement of peoples,labor,and services and capital as well the right of establishment and residence as provided in article 5(2)of the treaty establishment of East Africa Community.The study also finds Tanzania and Kenya having divergence on issues that have been agreed upon on common market protocol(CMP).Divergence is eminent on areas such as institution barriers to trade,removal of work permits,multilateral economic agreement,and single visa destination for tourist and even free movement of labor.This divergence can be explained from sector model theory which has dictated non-implementation of the agreed protocols because of the loses partner states stand to incur.Nevertheless,there are other areas which Tanzania and Kenya have convergence of interest like transport and Communications,foreign policy co-ordination,joint tourism promotion initiatives,and aviation agreement.Economic gains for both parties explain convergence of interests in these areas.The study also acknowledges the role of both internal and external pressure as contributing factors to convergence and divergence of interest.With divergence of partner states interests,there is hope for more cooperation as manifested by one areas of convergence between Tanzania and Kenya.It is based on these findings that the study recommends that the partner states take stock of their integration process on areas of agreement and disagreement.Where there exists divergence of interests,partner states need to seek a balance for a win-win situation to spur relations and integration process.Equally Tanzania-Kenya should enhance in those areas they are in agreement to cement their relations deeper.It would be prudent to ensure full implementation of agreed integration protocols before the community proceeds to the next stage of integration.This can only be achieved if there is high level of agreements by implementing partner states beginning with Tanzania and Kenya relations.The thesis is organized into five chapters in understanding Tanzania Kenya trade relations which is characterized with convergence and divergence of interests.Chapter one provides introduction and preliminary sections for study.It contains the background of the study,the statement of the problem,the objectives that the study sought to address,research question,argument,significance of the study,theoretical framework,methodology that was used,and the literature review.Chapter two examines convergence of interests in Tanzania-Kenya trade relations while highlighting specific areas of interests.The chapter identifies areas where both countries agree and have mutual cooperation.It is intend look the issues of trade flow,joint tourism promotion initiatives,custom union,Transport and Communications,air services and banking sectors in both countries.Chapter three presents finding on divergence of interests on Tanzania-Kenya trade relations and their explanations.It explained challenges of Common market protocol in implementation which in some extent cause divergent of interest between Tanzania and Kenya.Chapter four examines factors that have contributed to the convergence and divergence on interests in Tanzania-Kenya trade relations.This chapter focus on external and internal pressures caused the divergences of interest between Tanzania – Kenya trade relationsFinally,chapter five provides summary,conclusion and recommendation of the study.