Tridge summary
The World Bank has expressed concern over the ongoing trade dispute between Kenya and Uganda, which started in December 2019, when Kenya restricted milk imports from Uganda. The dispute could potentially disrupt economic agreements within the East African Community and negatively impact private investment in the dairy sector. The World Bank's 2021 country diagnostic report highlights that the dispute, a result of Kenya's allegations that Uganda is exporting reconstituted powdered milk, could harm the recently established African Continental Free Trade Area. Despite efforts to resolve the issue through bilateral talks, covering other trade disputes, the talks have been postponed multiple times. Uganda, with the seventh-largest head of cattle in Sub-Saharan Africa, is a significant player in the dairy sector and could be impacted by any trade disruptions.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
The World Bank has warned that the trade dispute between Kenya and Uganda could affect the smooth progression of economic pacts within the East African Community. The two countries have been locked in a trade dispute since December 2019, stemming from Kenya’s decision to restrict milk imports from Uganda. World Bank notes that this dispute does not augur well with the recently established African Continental Free Trade Area, pointing out that failure to find out a lasting solution to this restrictive non-tariff barrier would likely stall any major private investment in the dairy sector within the next few years. “Such disputes within the EAC, an established and relatively successful economic bloc, hailed as one of the most successful on the continent, risks jeopardising all other trade pacts within the community,” said World Bank in its 2021 country diagnostic report. Kenya has been planning to visit Uganda to ascertain that all the milk that comes from there is produced by local ...
Source: Businessdailyafrica
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