THE POLITICAL ECONOMY OF OVERLAPPING REGIONAL ECONOMIC COMMUNITY MEMBERSHIP
TRADE DIVERSION AND REGULATORY FRAGMENTATION IN RWANDA, KENYA, AND TANZANIA
Keywords:
Regional Integration, Trade Diversion, Regulatory Fragmentation, EAC, COMESA, SADC, AfCFTA, East Africa
Abstract
This paper examines the political economy implications of overlapping Regional Economic Community (REC) membership in East Africa, focusing on Rwanda, Kenya, and the United Republic of Tanzania. While regional integration is intended to promote trade, overlapping memberships in the East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA), and Southern African Development Community (SADC) generate complex trade and regulatory outcomes. Using a mixed-methods approach combining descriptive trade analysis and institutional review, the study finds that overlapping REC membership contributes to trade diversion and regulatory fragmentation. These effects increase transaction costs, distort trade flows, and weaken policy coherence. The findings suggest that although overlapping memberships provide political and strategic advantages, they undermine economic efficiency. The paper concludes with policy recommendations for harmonization under the African Continental Free Trade Area (AfCFTA).
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Coulibaly, S. (2009). Evaluating the trade effect of developing regional trade agreements: A semi-parametric approach. Journal of Economic Integration, 24(4), 709–743.
Creswell, J. W., & Plano Clark, V. L. (2023). Designing and conducting mixed methods research (4th ed.). SAGE Publications.
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Mattli, W. (1999). The logic of regional integration: Europe and beyond. Cambridge University Press.
Munyua, J., & Ochieng, P. (2023). Non-tariff barriers and trade performance in the East African Community: Evidence from Kenya–Tanzania border corridors. African Journal of Economic and Management Studies, 14(3), 312–329. https://doi.org/10.1108/AJEMS-09-2022-0387
Onono, P., Omondi, F., & Mwangangi, A. (2024). Impacts of regional integration and market liberalization on bilateral trade balances of selected East African countries: Potential implications of the African Continental Free Trade Area. Economies, 12(6), Article 155. https://doi.org/10.3390/economies12060155
Southern African Development Community. (2023). SADC trade report 2023: Deepening regional value chains. SADC Secretariat. https://www.sadc.int/publications/
United Nations Economic Commission for Africa (UNECA). (2019). African regional integration index report. Addis Ababa: UNECA.
United Nations Economic Commission for Africa. (2019). Africa regional integration index report 2019. https://arii.uneca.org/Reports/en_ARII-Report2019.pdf
United Nations Economic Commission for Africa. (2023). African integration report 2023: Accelerating regional value chains for structural transformation. UNECA. https://archive.uneca.org/publications/african-integration-report-2023
United Nations Economic Commission for Africa. (2023). African integration report 2023: Accelerating regional value chains for structural transformation. UNECA. https://archive.uneca.org/publications/african-integration-report-2023
United Nations Economic Commission for Africa. (2023). African integration report 2023: Accelerating
Viner, J. (1950). The customs union issue. Carnegie Endowment for International Peace.
World Bank. (2020). Africa trade policy notes. Washington, DC: World Bank.
World Bank. (2025). World integrated trade solution (WITS) database. https://wits.worldbank.org/
Yin, R. K. (2024). Case study research and applications: Design and methods (7th ed.). SAGE Publications.
