Moving Beyond Tariffs. Harmonizing Standards for Inclusive, Resilient and Self Sustaining Integration
By Michelo Maunga
Through trade, goods and services, can move across
international borders. While this is well regarded to stimulate business and
economic growth, it places a requirement for home governments, to regulate the
products that enter their markets. This is intuitive given the importing
country is unable to accurately monitor production processes in the
jurisdiction of the exporter. The tools commonly employed in this respect, are
Technical Barriers to Trade (TBT), and specifically standards. According to the
Zambia Bureau of Standards[1], a
standard is a document which outlines the specifications that would deem a good
fit for consumption or application.
These regulations can,
however, distort trade. In certain instances, a state’s rationale for their
imposition is not to protect the consumer, but rather to shield domestic
producers from competition. Within the context of tariff liberalization, this
is known to negate the benefits of Free Trade Agreements (FTAs), with trade
limiting effects which can be just as distortionary as tariffs. A report by the
United Nations Centre for Trade & Development (UNCTAD)[2]
and the World Bank Group approximate the cost of TBTs to the equivalent of an
11% Customs Duty, across developed and developing countries. Persistence of these barriers, such as through
fragmented standards requirements, can potentially jeopardize gains from the
continental FTA, which is projected to increase intra-African trade by 25.2%[3].
We can posit, that NTBs, have been a major cause of low regional trade in spite
of the numerous trade agreements in Africa, such as SADC, EAC, ECOWAS & ECCAS.
While political
independence has been universally attained across the African continent, the
ability of sovereigns to harmonize institutions and policies, thereby truly
unify, is yet to be sufficiently actualized. This manifests itself in
fragmentation across public policy; across diverse spheres. It is only in
recent years, for instance, that African states have been relaxing visa
requirements within the continent. The roots of this problem have been
attributed to colonial policies, which arbitrarily grouped and separated tribal
ethnicities[4],
with little regard to the pre-existing relations. Furthermore, a review of
colonial history, reveals a consistent policy of promoting division[5],as
a means of pacifying nationalist tendencies.
There is a high
likelihood the effects of the above have extended to standardization frameworks
in the modern era, which have constrained realization of free trade benefits. In
this vein, there is little coordination amongst standards setting agencies on
the continent. Indeed, as goods move from the exporting country to the
importer, it is common for them to be subjected to two sets of quality
verifications, and in the event of differences in assessments, a good which is
entirely permissible in one country, will not be so in another, amongst other
barriers. Reports by the Zambia Association of Manufacturers[6]
have documented a range of technical barriers experienced by manufacturers
within the SADC market, many of which are related to standards. These include
mandatory conformity assessments for exports into Zimbabwe; restriction of
Zambian transporters in the Tanzanian market due to differences in axle/load
specifications; as well as arbitrary and often ad-hoc product bans in the DRC
market.
In proposing remedial
measures, reference will be made to the European single market, which since its
formation in 1993, has actively worked to increase intra-regional trade. Key to
this has been addressing regulatory and procedural barriers, such as uncoordinated
standards enforcement. True to its goal, intra-European trade is reported to
constitute 70%[7]
of total trade by member states, compared to Africa’s 16%. Central to this was
harmonization of standards across the EU members, as opposed to individual
countries crafting nationalized standards. This effectively means one standard,
per product category, is applicable to the whole market. European Certification
thus implies compliance across all 27 member countries. To achieve this, 3
standards setting organizations; European Committee for Standardization (CEN),
European Committee for Electrotechnical Standardization (CENELEC) &
European Telecommunications Standards Institute (ETSI); are mandated to develop
continental standards.
As a means to achieving
their objectives, the European Commission adopted a generalized approach to
standard setting, which entails non-specificity in the methods by which
technical requirements are met. Thus, irrespective of standards employed,
meeting of technical specifications entails compliance. This carefully avoids
the challenge of prescribing to diverse exporters the means by which their
products should meet compliance. It is this vagueness, so to speak, that has
catalysed harmonization within this market. A further pillar adopted by the
Europeans, is mutual recognition. This means if a product is certified by a
standards agency in Germany, it need not be assessed upon entry into the import
market, so long as that is within the EU.
Within the above
respect, certain weaknesses are identified in the present text of the Agreement
establishing the Africa Continental Free Trade Area (AfCFTA). Firstly, while
the agreement[8],
encourages harmonization, it does not bind member states to this ideal. In
other words, countries are free to maintain existing practises. In the EU, a
state party is legally bound to accept a product that meets the continental
standard. Under the AfCFTA, this is not the case. The genesis of this process
is of course, harmonized standards. These are being developed by ARSO. However,
beyond this, the AU is encouraged to mandate utilization of these standards and
their supersedure over national standards.
Secondly, and in a
similar vein, the agreement, does not bind members to employ Mutual Recognition
Agreements (MRAs). It is left to the discretion of countries whether or not
they enter into these arrangements. Also, the language on MRAs speaks to
bilateral relationships. Even if this is implemented, it limits the scope of
impact, as hypothetically, a country, say Zambia, would need an MRA with every
country on the continent. Rather, an MRA, covering the whole AfCFTA will be
more effective at harmonizing standards .
In conclusion, the
promise of AfCFTA is truly remarkable. It potentially, can revolutionize the
African economy. It also stands to alter trade portfolios away primary resources to value-added products.
This in itself, will unlock greater incomes and resilience to changes in
commodity prices. It is this process that has led to industrialization in the
Americas, Asia and Europe. There is no
reason why the same cannot happen in Africa. These aspirations will, however,
require addressing the rigidities to
trade that remain even after tariff
liberalization. These barriers, such as fragmented standards, are more
obscure than tariffs, more difficult to resolve and- some may argue- even more
inimical to integration. Nonetheless, as Africans we have the responsibility to
address them, to ourselves, and to those who will come after us.
In this author’s honest
opinion, we are up to the task.
The Author
is an Economist
[1] Zambia
Bureau of Standards, Standards Development
[2] UNCTAD
(2024), The Unseen Impact of Non-Tariff measures.
[3] Journal of
African Trade (2021). Estimating Effect of AfCFTA on Intra-African Trade
using Augmented GE-PPML
[4] International
Journal of Research and Innovation in Social Science (2011). African
Colonial Borders: Fragmentation & Integration.
[5] Michelo
Maunga (2025), Transformation of the Zambian Economy
[6] Zambia
Association of Manufacturers (2023), Practical Trade/Transport Experiences.
[7] London
School Economics (2026), Africa should invest in
Digital Public Infrastructure to aid regional integration
[8] African
Union (2019), Agreement Establishing the AfCFTA.
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