State Trading and Regional Economic Integration: The East African Experience*

The paper examines the impact of state trading on the of the East African Common Market. The first part of paper develops a general framework for the analysis of this . After setting out the alternative concepts of integration to the principles of integration in market and centrally planned economies and the role of state therein, the paper contrasts them with the situation in attempts among developing countries with different systems. This is followed by a discussion of the , functions, structure and operation of state trading . An attempt is then made to explore the impact of trading systems on intra-regional trade in the light of obstacles to the expansion of such trade. second part of the paper traces the evolution and of state trading enterprises in the East African . The characteristics of state trading enterprises are related to their impact on the growth of East African trade recent years. Consideration is also given to other developments as the increasing foreign exchange difficulties being by the Partner States, especially Uganda and Tanzania, the growth of the system of foreign trade planning in Tanzania. implications of these developments for the East African Common are spelled out. In conclusion, the paper considers various to overcome obstacles to trade expansion posed by trading enterprises, increasing foreign exchange difficulties foreign trade planning.