Examining the Effects of Politics on Trade in Regional Blocs’ Economic Integration: A Case of the East African Community and the European Union.

This study focused on the examining the effects of politics trade in East African Community (EAC) trade and economic integration, with the European Union (EU) examined as setting the pace and can be used as a model in helping other regions to achieve a robust Regional Economic Integration. Regional Economic Integration has enabled countries to focus on issues that are relevant to their state development in many African countries, as well as encourage trade between neighbors. The four main types of regional integration include: Free Trade Area which is the most basic form of economic integration. Members remove all barriers to trade between themselves but are free to independently determine trade policies with nonmember nations of The North American Free Trade Agreement (NAFTA). The second type regional integration is Customs Union which provides for economic cooperation as in free zone. Barriers to trade are removed between the member countries. The primary difference from the free trade area, is that members agree to trade with nonmember states, an example being The Gulf Cooperation Council (GCC) for Arab states. The third is the Common Markets that allows for the creation of economically integrated markets between member countries. Trade barriers are removed, as they are any restrictions on the movement of labor and capital between member countries. Like customs unions, there is a common trade policy for trade with nonmember nations. The primary advantage to workers is that they no longer need a visa or work permit to work in another member country of a common market, Common Market for Eastern and South Africa (COMESA). The fourth main one is the Economic Unions which is created when countries enter into an economic agreement to remove barriers to trade and adopt common economic policies, The European Union (EU), Economic Partnership Agreement (EPA) is a perfect example. This study was guided by the following research questions: What are the effects of politics on economic integration? What are the EAC‘s institutional constraints on trade and economic integration? What lessons can EAC learn from EU on trade and economic integration? The study utilized both qualitative and quantitative approaches. Data presented in this study was gathered from secondary sources, and analyzed using content analysis. The findings in this study have been presented using Tables, Figures and narrative presentation. Lack of political will is seen as a major impediment and hindrance towards a successful EAC trade and economic integration. Secondly, EAC institutional constraints lack authority, and financial resources, making it difficult to execute its mandate. Lessons from EU success include building independent regional institutions, developing consensus on Common Market, Customs Union, Fiscal and Monetary policy, and free movement of people, capital and investments. Regional Trade as a form of Regional Trade Agreement, is therefore seen as a critical factor that can be used as a policy tool to enhance countries globally to advance their industrialization, economic growth, social welfare and sustainable development. It is seen too as a facilitator in escalating trade liberation, which eventually lead to free markets through trade tariffs and non-tariff trade barriers. Although Regional integration is seen as good element in trade, politics also plays a major role in determining how trade agreement will be viewed by nations involved in the partnerships and trade agreements.