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INTERNATIONAL TRADE AND EXPORT PROMOTION IN RWANDA:
A CASE OF TECHNICAL BARRIERS TO TRADE NATIONAL ENQUIRY
POINT
KWIZERA SIMEON
MIRD/2018/33119
A Research Project Submitted in Partial Fulfillment for the Awards of a
Degree in Master of Arts in International Relations and Diplomacy of Mount
Kenya University
SEPTEMBER 2020
ii
DECLARATION
This research is my original work and has not been presented to any other institution of higher
learning of obtaining any award. Reproduction of any part of this research is not allowed without
prior consent from the author or that of Mount Kenya University Rwanda.
Student’s Name: Kwizera Simeon
Signature______________________ Date……………………………………………………
Declaration by the Supervisor
This research has been submitted under my approval as the Mount Kenya University Supervisor.
Name: Dr. Kamande Mercyline
Signature……………………………………….Date………………………………………………
iii
DEDICATION
To the Almighty God for having kept me healthy; my Wife Nyiransengimana Denyse and our
Kwizera daughters who endlessly have contributed to the joys of life in every day, this Research
Project is dedicated.
iv
ACKNOWLEDGEMENT
This research would not have been completed without the invaluable assistance and
encouragement from a number of people. To begin with, I would like to acknowledge my
supervisor, Dr. Kamande Mercyline who provided me with guidance and assistance until the
completion of the project. It is indeed through her unwavering efforts and tolerance that I can
proudly confirm that the work done in this project is quality. My sincere appreciations are
directed to the entire staff in the School of Social Sciences of Mount Kenya University and
students in Master’s Program in International Relations and Diplomacy for their assistance and
encouragement during the entire period of my studies. My gratitude is also expressed to the
Management and Staff of Rwanda Standards Board, Management and Staff of National Bank of
Rwanda, National Institute of Statistics of Rwanda, Rwanda Revenue Authority and the Ministry
of Trade and Industry for having facilitated access to information.
v
ABSTRACT
The study examines international trade and export promotion. This research is guided by three
specific objectives as follows: to assess the effect of the trade agreements on export promotion in
Rwanda, to evaluate the effect of the trade promotion on export promotion in Rwanda, and to
examine the effects of the countries’ relations on export promotion in Rwanda. In a search for
response, ways to promote export are considered, and elimination of Technical Barriers to Trade
(TBTs) is considered as an adequate strategy countries rely on, among others. Technical Barriers
to Trade are still a challenge to reckon with; and in remedy, the WTO requires all members to
establish TBT/National Enquiry Points to help traders overcome the TBT challenges. In Rwanda,
the WTO/TBT National Enquiry Point was established in 2005 but a number of imported and
exported goods are still rejected. This study examines the role international trade plays in export
promotion in Rwanda. The findings are useful to various stakeholders as it is helpful in shedding
more light on existing interaction between policies, laws and regulatory framework and the
business community; and help assess their contribution in trade facilitation and in creating a
more business friendly environment. Further, the findings inform policy makers on more policies
needed, what to polish existing policies and how policies and strategies set at national level
better fit in the international free trade landscape. A mix of descriptive and correlational research
designs is used for the research process. The study targets a total of 168 target group of which a
sample size of 119 respondents provided their responses. The sample is selected using simple
random and purposive sampling. Information was gathered through questionnaires, interview
guide and document review for policy making institutions. After going to the field, the researcher
analyzed and interpreted the findings in forms of tables, percentages and graphs using a
Statistical Package for Social Sciences. With interpretation of the findings, the researcher made
conclusions and recommendations to relevant institutions and the business community.45.5%
companies remarked that the reduction of export tariff fixed on an exported product has large
extent effect to its competitiveness. Respondents confirmed that the reduction of export tariff
fixed on an exported product as well as reduction or removal of technical barriers to trade make
products more accessible, affordable and competitive, and offer clients more choices at
marketplace. Results indicated that 52.4% companies accorded large extent effect that an export
license has as restriction on the quantity of goods that may be exported during a specific period
of time. Also, results showed that 57.9% companies accorded very large extent effect that trade
quotas and technical barriers to trade may have on export promotion if they are reduced/
removed. Furthermore, 46.2% companies evidenced a reduction of production subsidies as
having a negative impact on export volumes. These subsidies insist on the minimum percentage
of a product total value that could be produced internally whether the product is to quantify for
zero tariff rates. This study recommends increased exporters’ awareness on technical barriers to
trade in order to be informed of export market requirements. It also that the Ministry of Trade
and Industry, Rwanda Standards Board, other trade promoting Government agencies and the
Private Sector Federation should partner to ensure that policies that regulate export sector are
harmonized and well known and understood by exporters.
vi
TABLE OF CONTENTS
DECLARATION ..................................................................................................... ii
DEDICATION ........................................................................................................ iii
ACKNOWLEDGEMENT ..................................................................................... iv
ABSTRACT .............................................................................................................. v
TABLE OF CONTENTS ...................................................................................... vi
LIST OF FIGURES .............................................................................................. xii
LIST OF ACRONYMS AND ABBREVIATIONS ........................................... xiii
OPERATIONAL DEFINITION OF KEY TERMS ........................................... xv
CHAPTER ONE: INTRODUCTION .................................................................... 1
1.0 Introduction .......................................................................................................... 1
1.1 Background of the Study ..................................................................................... 1
1.2. Problem Statement .............................................................................................. 3
1.3 Objectives of the Study ........................................................................................ 4
1.3.1 General Objective ............................................................................................. 4
1.3.2 Specific Objectives ........................................................................................... 4
1.4 Research Questions .............................................................................................. 4
1.5 Significance of the Study ..................................................................................... 4
1.6. Limitation of the Study ....................................................................................... 5
1.7 Scope of the Study ............................................................................................... 6
vii
1.7.1 Content Scope ................................................................................................... 6
1.7.2 Geographical Scope .......................................................................................... 6
1.7.3 Time Scope ....................................................................................................... 6
1.8 Organization of the Study .................................................................................... 6
CHAPTER TWO: LITERATURE REVIEW....................................................... 8
2.0 Introduction .......................................................................................................... 8
2.1 Theoretical Literature ........................................................................................... 8
2.1.1. International trade ............................................................................................ 8
2.1.2 Importance of International Trade .................................................................. 10
2.1.3. Creation of World Trade Organization .......................................................... 11
2.1.4 Roles of the World Trade Organization .......................................................... 15
2.1.5. Trade Agreements .......................................................................................... 15
2.1.6. Trade Promotion Role .................................................................................... 15
2.1.7. Countries Relations ........................................................................................ 16
2.1.8. National Enquiry Point .................................................................................. 17
2.1.9. Export promotion ........................................................................................... 18
2.1.10. Export values ............................................................................................... 20
2.2. Empirical Review .............................................................................................. 21
2.3 Critical Review and Research Gap Identification ............................................. 25
2.4 Theoretical Framework ...................................................................................... 27
viii
2.4.1 Theory of Endogenous Protection .................................................................. 27
2.4.2 Theory of Economic Regulation ..................................................................... 28
2.4.3 Liberalism Theory ........................................................................................... 29
2.5 Conceptual Framework ...................................................................................... 30
CHAPTER THREE: RESEARCH METHODOLOGY .................................... 32
3.0 Introduction ........................................................................................................ 32
3.1 Research Design ................................................................................................. 32
3.2 Target Population ............................................................................................... 33
3.3.1 Sample Size ..................................................................................................... 33
3.3.2 Sampling Technique ....................................................................................... 35
3.4 Data Collection Methods ................................................................................... 36
3.4.1 Data Collection Instruments ........................................................................... 36
3.4.2 Administration of Data Collection Instruments .............................................. 37
3.4.3 Validity and Reliability of Instruments .......................................................... 38
3.5 Data Analysis Procedure .................................................................................... 39
3.6 Ethical Considerations ....................................................................................... 39
CHAPTER FOUR: RESEARCH FINDINGS AND DISCUSSION ................. 40
4.0 Introduction ........................................................................................................ 40
4.1 Demographic Characteristics of Respondents ................................................... 40
4.1.1 Gender of Respondents ................................................................................... 40
ix
4.1.2 Age Distribution of Respondents .................................................................... 41
4.1.3. Respondents According to the Length of Years in Export Business ............. 43
4.2 Presentation of Findings .................................................................................... 44
4.2.1 Trade Agreements Parameters Adopted for Trade Promotion in Rwanda ..... 44
4.2.2 Trade Promotion Measures Adopted for Export Promotion .......................... 47
4.2.3. Countries Relations Measures Adopted for Export Promotion ..................... 50
4.2.4. Export Volumes between 2015 and 2019 ...................................................... 52
4.2.5. Export Value between 2015 and 2019 ........................................................... 55
4.2.6. Profitability of Exports between 2015 and 2019 ........................................... 57
4.2.7. Correlation Analysis ...................................................................................... 60
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS .......................................................................................62
5.0 Introduction ........................................................................................................ 62
5.1 Summary of Findings ......................................................................................... 62
5.2. Conclusion and Theoretical Implications ......................................................... 65
5.3 Recommendations .............................................................................................. 66
5.3.1 Recommendations to the Managers of Companies ........................................ 66
5.3.2 Recommendations to the Policy Makers ........................................................ 66
5.4. Suggestion for Further Research ....................................................................... 66
x
REFERENCES ....................................................................................................... 68
APPENDICES ........................................................................................................ 77
Appendix i: MKU Recommendation Letter to conduct research ..................... 78
Appendix ii: Request Letter to Conduct Research ............................................. 79
Appendix iii: Acceptance Letter to conduct Research at RSB .......................... 80
Appendix iv: Acceptance Letter to conduct Research at NAEB ....................... 81
Appendix v: Acceptance Letter to conduct Research at BNR ........................... 82
Appendix vi: Questionnaire – Exporters ............................................................. 83
Appendix vii: Interview for National Enquiry Point Staff ................................ 90
Appendix viii: Questionnaire for Clearing Agents ............................................. 91
Appendixes ix: Questionnaire for Trade Policy Making and Implementing
Agencies ...................................................................................................................92
Appendix x: Summary of Literature review ....................................................... 93
xi
LIST OF TABLES
Table 3.1 Description of Sampling Techniques ............................................................................ 35
Table 4.1Trade Agreements Parameters. ...................................................................................... 45
Table 4.2 Effects of trade promotion on export promotion .......................................................... 48
Table 4.3 Countries Relations on Export Promotion .................................................................... 50
Table 4.4 Estimated Export Volume from 2015-2019.................................................................. 53
Table 4.5 Value earned by sampled companies from export between 2015-2019 ....................... 56
Table 4.6 Estimate profitability of exports from 2015 to 2019 in term of % change Values ....... 59
Table 4.7 Correlation between independent and dependent variables .......................................... 60
xii
LIST OF FIGURES
Figure 2. 1 Conceptual framework .............................................................................................. 30
Figure 4. 1 Gender Profile of Respondents ................................................................................... 41
Figure 4. 2 Age Distribution of Respondents ............................................................................... 42
Figure 4. 3 Respondent according to length of years in export business ...................................... 43
Figure 4. 4 Volumes exported by sampled companies ................................................................. 52
Figure 4. 5 Estimate the export Volume from 2015-2019 ............................................................ 55
Figure 4. 6 Value earned by sampled companies from export ..................................................... 55
Figure 4. 7 Value earned by sampled companies from export between 2015-2019 ..................... 57
Figure 4. 8 Profitability Gained by Sampled Companies ............................................................. 58
Figure 4. 9 Estimate profitability of exports from 2015 to 2019 in term of % change Values .... 59
xiii
LIST OF ACRONYMS AND ABBREVIATIONS
ASEAN Association of South East Asian Nations
AU African Union
BNR Banque Nationale du Rwanda (National Bank of Rwanda)
EAC East African Community
EU European Union
EUTFA European Union Free Trade Area
F.T.A Free Trade Area
GDP Gross Domestic Product
ILO International Labor Organization
I.P.E International Political Economy
MINICOM Ministry of Trade and Industry
MINECOFIN Ministry of Finance and Economic Planning
NAFTA North American Free Trade Agreement
NEP National Enquiry Point
NTBT Non-Tariff Barriers to Trade
RRA Rwanda Revenue Authority
xiv
RSB Rwanda Standards Board
ReSW Rwanda Electronic Single Window
SQMT Act Standards, Quality Assurance, Metrology and Testing Act
TBT Technical Barriers to Trade
TPP Trans-Pacific Partnership
W.B World Bank
WTO World Trade Organization
xv
OPERATIONAL DEFINITION OF KEY TERMS
Export promotion: This term refers to a total of activities of public institutions that have a
positive impact on the export performance of economy, direct subsidies for exporters, suppliers
and customer export loans, investment abroad for export production, tax credits, guarantees and
export insurance.
International Trade: This term refers to the exchange of capital, goods and services across
international borders or territories. In most countries, such trade represents a significant share of
gross domestic product (GDP). Carrying it out at an international level is a complex process
when compared to domestic trade.
1
CHAPTER ONE: INTRODUCTION
1.0 Introduction
This chapter consists of an overall introduction to the whole work that was done in this research.
It details the background of the study, problem statement, general and specific objectives,
research questions and significance of the study, limitations, scope and organization of the
research report.
1.1 Background of the Study
The world today is characterized by a globalizing environment whereby international
development relies on different factors, including: economic, social, cultural, and political, to
mention but a few. According to Savruland (2015) globalization is continually revolutionizing
global trade, making it more open and more mutually beneficial. Ahmed (2011) observes that
from 1970s onward, the world experienced important changes that were at the forefront to show
that the role of the state in economic matters created problems than solving them. The author
adds that through extension of market role, market actors came up with an attempt to minimize
the role of the state of organizing and funding economic activities. By embracing this change in
attitude, Bosse (2013) adds that industries that were formerly owned by the state were privatized,
some of the services offered by the state were acquired from private contractors, regulating the
industrial activities was simplified, taxes were cut and other initiatives were made to reduce
government spending.
Chidede (2020) recall that today in the global economy, states are no longer self-sufficient. They
explain that important transformations that are observed in the economic sector are the result of
the fact that activities in the market economy have been generalized; and thus an increase is
2
observed in trade relations between the North-South/East-West and South-South poles of the
globe. The authors add that relations are driven by an increase in production, technology transfer,
and eased access to information, free movement of people, products and capital. Nations are
engaged in smoother relations to exchange what they produce and to purchase what they need.
To this end, the world progressively has become a common market with harmonized and
regulated trade and economic activity. With this trend, Burstein and Melitz, (2013) argue that
institutions with the mission to develop international trade, labor and economy were created,
namely International Labor Organization (ILO), General Agreement on Tariffs and Trade
(GATT), International Trade Center (ITC), and World Trade Organization (WTO), and many
more organizations.
Specifically in the aim to promote international trade, on 1st January 1995, the World Trade
Organization (WTO) Agreement on Technical Barriers to Trade (TBT) was enacted. Chidede
(2018) holds that the Agreement provides for establishment of a mechanism to answer trade-
related queries and share information on trade documents in a reasonable time period. That
Agreement advocates for removal of Technical Barriers to Trade (TBTs) and hence requests for
establishment of a TBT National Enquiry Point by every member of the WTO.
Rwanda Standards Board was designated to be the WTO/TBT National Enquiry Point in 2005
and, thus, house a specific WTO/TBT office in the country. Therefore, the work of Rwanda’s
WTO/TBT National Enquiry Office served as the case of this study that examined the
contribution of international trade on export promotion in Rwanda.
3
1.2. Problem Statement
The greatest impediments underlying export promotion in Rwanda include market scarcity, lack
of access to foreign market and protectionism on trade which are still quite significant; despite
concluded numerous international free trade agreements across the continent and other word
marketplaces. Saner and Yiu (2014) argue that developing countries continue to experience trade
imbalance as they import more than they export, and trade is in favor of other giants like the
European Union and the USA, China and other emerging economies.
Trade data from the National Bank of Rwanda [BNR] (2018) confirmed this statement revealing
that Rwanda’s economic resilience is boosted by domestic market recapitulation and export
promotion. The Bank’s report holds that the introduction of the Made in Rwanda campaign in
2015 contributed to export promotion by 69% from about US$ 559 million in 2015 to nearly
US$ 944 million in 2017 while imports decreased by 4%, from US$ 1.849 billion in 2015 to US$
1.772 billion in 2017. In this regard, since 2015, though the country experienced a 36% decrease
in its trade deficit (World Trade Organization [WTO], 2018) asserts that the imports value
continue to be above that of exports. Rwanda’s exports to African countries are estimated at
58.7%, exports to Asia are 22.1%, exports to Europe stand at 15.5% whereas exports to North
America are 3.1% (Ministry of Finance and Economic Planning [MINECOFIN], 2018).
However, the number of reported rejected imports has been increasing by 3% each year and
exports rejected in the country of destination accrue to 1%.
In the review, a few studies have discessed the WTO roles in relation with National Enquiry
Point in a given country. In addition to this, except only one, all other studies were conducted
outside Rwanda; and if there was any study in Rwanda, then it was not on the National Enquiry
4
Point, Rwanda. This study comes to supplement the afore-conducted studies and bears an
emphasis on business community facilitation through the work of Enquiry Point to engage them
in market requirement awareness processes and to alert them of specific market and policy
requirements. All the above considerations led the researcher to examining the contribution of
international trade on export promotion in Rwanda under the National Enquiry Point.
1.3 Objectives of the Study
1.3.1 General Objective
The general research objective was to examine the contribution of international trade on export
promotion in Rwanda
1.3.2 Specific Objectives
This research was conducted basing on the following specific objectives:
i) To assess the effect of trade agreements on export promotion in Rwanda.
ii) To evaluate the effects of trade promotion on export promotion in Rwanda
iii) To examine the effects of country cooperation on export promotion in Rwanda.
1.4 Research Questions
This research sought to answer the following research questions:
i) What is the effect of the trade agreements on export promotion in Rwanda?
ii) What is the effect of trade promotion on export promotion in Rwanda?
iii) What is the effect of country cooperation on export promotion in Rwanda?
1.5 Significance of the Study
This study is useful to various stakeholders in public policy design, implementing agencies,
researchers and the business community. Firstly, Government institutions including those with
5
the responsibility of setting standards, technical regulations, trade and investment facilitation
laws and export promotion will use the findings to assess the contribution of their mandate in
building Rwanda as a free trade and business friendly environment, to evaluate the effects of
their services on the way forward for improvement.
Secondly, results are expected to inform policy makers on further policies needed, what could be
done in polishing existing policies and how policies and strategies set at national level fit in the
international free trade landscape. Thirdly, staff of the WTO/TBT National Enquiry Point
(Rwanda) will use information from this research to bridge identified gaps and continue to
serve their customers at their best, helping them to avoid losses that are associated with the lack
of information on existing or new regulations and policies in Rwanda and globally.
Last but not least, the findings of this study are helpful to traders in Rwanda as they help them
better understand how WTO promotes free trade and how the WTO/TBT National Enquiry Point
would help them overcome challenges in their business activities worldwide.
1.6. Limitation of the Study
This research exclusively emphasized on the role of WTO/TBT National Enquiry Point, Rwanda
in promoting trade. Its findings are only generalized to the Rwandan context; more specifically
on actual business community involved in international trade and government services with
responsibility of trade promotion in Rwanda. Given that this is the first study that is conducted
about the WTO/TBT National Enquiry Point in Rwanda, some respondents were not able to give
clear information, or deliver information fitting the context. Also, the level of education and
awareness on technical issues relevant in international trade were challenges to some exporters;
and inability to disclose information on the challenges met in exporting products created
challenge to own the project and subsequently provide reliable data on Technical Barriers to
6
Trade. Data collection was difficult because of social culture influence, with some respondents
finding it hard to tell all that they experience in their daily business operations, thus leaving some
questions unanswered.
1.7 Scope of the Study
This research covered four scopes, namely the concept scope, the content scope, the geographical
scope and the time scope.
1.7.1 Content Scope
The study is limited on the role of international trade on export promotion more specifically that
of National Enquiry Point, Rwanda in promoting and facilitating selected export businesses.
1.7.2 Geographical Scope
This research was conducted on selected export businesses in City of Kigali. This area was
chosen because most of traders, institutions governing international trade and export are based in
the city of Kigali.
1.7.3 Time Scope
The research covers the period of five years from 2015 to 2019, and it assesses the role of
WTO/TBT National Enquiry Point (Rwanda) in promotion of export for selected businesses.
1.8 Organization of the Study
This research project comprises of five chapters. Chapter one deals with background of the
study, problem statement, research questions, significance of the study, study limitations, scope
and organization of the research report. Chapter two deals with the review of related literature
7
and chapter three describes research methodology used in the research process. Chapter four
deals with interpretation of data, presentation of findings and chapter five summarizes key
findings discussed in chapter four, provides concluding remarks to the study, gives
recommendations to the study and proposes suggestions for further studies.
8
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction
Chapter two covers the related literature review theoretically and empirically. It also provides a
theoretical framework and conceptual framework.
2.1 Theoretical Literature
This section consists of the revision of literature related to international trade, export promotion
and National Enquiry Point Offices.
2.1.1. International trade
Kesteleyn and Ruël (2014) say that in today’s increasingly globalized economy, firms are easily
crossing the borders and find themselves exposed more than ever to both geopolitical and trade-
bound challenges. Firms must protect their bottom line as they manage risks at home and abroad.
Saner and Yiu (2014) add that organizations in trade are faced with considerable pressure from
governments and civil society organizations to sign international codes, be more transparent and
practice ethical conduct. This requires firms to engage constructively with different business and
non-business partners to convince and influence them, and thus gain profit.
Vijayasri (2013) argues that in the modern business world, different economies depend on each
other’s and it is not easy to find a selfish and closed economy. Obviously, all economies of the
world have opened their doors even though their level of openness depends on individual
economy. Opening up the borders for trade mainly involves developments in international trade,
international investments and international financial flows. Mehlika (2015) emphasizes that with
the first phase of globalization (1870 – 1940) and the second phase (from 1970s onward)
9
international trade saw higher rates of exports that were observed in developed countries than in
developing ones. This was due to the effects of colonialism and total dependency of colonies to
their masters and the developed countries exported finished products to their colonies which are
developing countries today. After the Second World War (WWII), Mehlika (2015) argues that
the victors, especially the United States of America resorted to imposing terms and conditions at
international market, and this was at the benefit of developed countries as they were the only
ones to be able to meet the set requirements.
On international investments, Mehlika (2015) reckons that a big increase was remarked in the
second stage than in the first phase of globalization; whereby the stock of foreign direct
investment (FDI) was 9% in 1913 and experienced a very high speed in the second stage
increasing from 68 billion in 1960s to 636 billion in 1980s and later culminated to 6000 billion in
1990s (WTO, 2018). This means that there was an increase in FDIs of 4% in 1960s to 20% in
2000 and those increases were due to the increased work of Transnational Corporations (TNCs)
across the world.
The data above shows that even though international trade has continually experienced an
exponential growth over the years, the trend leans more on the side of developed and
industrialized countries than developing countries. Adding to this, Ruël (2013) states that dealing
with foreign countries trade policies’ interests, national and international competitors and
managing international trade conflicts requires countries and trading companies to be fully and
constantly aware of what is going on in the global trade.
From the perspective of understanding what is going in the international trade, countries may
impose protectionist measures that are embedded in trade guiding documents such as those that
10
detail product and services specification, criteria for production, way of testing, national trade
regulations (Asian Development Bank [AsDB], 2017). To mitigate cross-border development
risks, international finance and trade promotion institutions were established, and those include
International Finance Corporation (IFC), World Bank (WB), International Trade Corporation
(ITC) and World Trade Organization (WTO), to mention but a few.
2.1.2 Importance of International Trade
Vijayasri (2015) informs that the difference between economics and international trade is that
economics studies how to properly allocate and efficiently use scarce resources, whereas
international trade looks at how economic resources are distributed among countries. From this
statement, we deduce that such allocation is done in the world market through international trade
and by the means of the free trade. The author explains that international trade is guided by the
main principle that someone can buy a product or a service from a country where it is sold at the
lowest price and sell it in a country where it is sold at the highest price. The benefit from this
practice is that both buyers and sellers have access to unlimited choices.
Buono and Lalanne (2012) remark that with free movement of goods, services and capital across
borders, in international trade both developed and developing countries get their gains because
the latter can import machines from developed countries and adapt high end technologies back
home. In addition, developing countries can send their experts to developed countries to gain
more knowledge and skills which are relevant to specific needs of their countries. Similarly, all
countries need each other. While emphasizing interdependence among countries, Burstein and
Melitz (2013) reiterate that developed countries need to import raw materials from least
developed countries for their industries; and developed countries need markets in least developed
countries. Development happens when there is production and consumption. If any countries
11
would produce to satisfy their own needs, production and consumption of goods and services
would be limited; and therefore there would barely be any development.
2.1.3. Creation of World Trade Organization
World Trade Organization (WTO) is an international organization that deals with the rules of
trade between countries. Donna and Hocking (2010) say that the WTO was established by the
Uruguay Round Negotiations that took place from 1986 to 1994; and it was established on
January 1st, 1995. At present, the WTO has 164 members from all continents and representing
98% of world trade. In order to ascertain that trade in the world is done as smoothly, probably
and freely as possible, the organization relies on WTO agreements that were discussed and
concluded by world trading nations and afterwards the ratification is done by their parliaments.
Egger and Michael (2014) hold that in Europe, in 2013 when the 2013 Bali Ministerial
Conference came up with an important Trade Facilitation Agreement (TFA) that was enforced
on 22 February 2017, WTO members committed to ease trade through fast-tracking trading
processes and providing technical assistance and capacity building to all organs involved.
European Commission informs that European Union supports this initiative through
harmonization of standards, negotiating and agreeing on other rules and regulations that govern
imports and exports across the continent. Also, as in 2005, WTO members agreed on the Aid for
Trade initiative; in 2007 EU developed a specific Aid for Trade strategy to boost doing business
among members. Further, EU members adopted the WTO/TFA in 2015 and they committed to
support its implementation by granting EUR 400 million.
In Asia, the AsDB (2017) reckons that international trade is the source of development
worldwide and thus, Asian countries should value it most. In order to enable inclusive
12
development, different countries on the Asia and the Pacific side have adopted establishing and
sustaining good trading relations among them and have signed a number of trade cooperation
agreements to decrease doing business costs.
AsDB (2017) articulates the role of SMEs and marginalized communities in sustainable
development approach being applied on the continent. The Bank analysis also indicates that
development of trade in Asia is still challenged by other aspects such as lack of developed
infrastructure, institutional capacity building, lack of technology in rural areas, harmonization of
standards and regulations, and the need to continue improving the business climate to attract
more investments. Asian countries have adopted a number of strategies to advance trade in Asia.
The measures include opening up the borders for increased trade activity, conducting
institutional and trade reforms, lowering non-tariff barriers and to ensure trade and investment
complement each other.
In Africa, as is the case for other least developed and developing areas, doing trade encounters
many challenges. Chidede (2018) states that Africa does not trade with Africa at satisfactory
level and this is mainly due to high level of corruption, irrelevant trade documents required,
protectionist measures set up by governments and high level of bureaucracy.
More to that, WTO (2010) points out that developing trade in Africa should be based on
transparency because it is not easy to open up one’s border without being transparent. In
addition, the organization states that many countries on the continent do not share information on
their trade rules and regulations, which makes it hard for other traders to penetrate the business
setting.
13
The World Bank (2018) report on doing business in Africa asserts that that exporting or
importing products for Africa becomes very complicated as the trade system on the continent is
not aware of the requirements for export and import markets, and Africa’s 19 days on average
for processing of export and imports is the longest period of time compared to other parts of the
world. The World Bank (2018) suggests that for some countries like in Zambia, Angola and
Niger it takes 36 days for an exporter to have his/her documents processed. However, the Bank
reports that things have changed for some countries like in Eswatini where it only takes 5 days to
process the export documents. It gives an example of shipping goods from Bujumbura in
Burundi to Dare Es Salaam in Tanzania where it takes 37 days, whereas it takes only one day
within Gabon.
In East Africa, the World Bank’s Logistics Performance Index (2018) states that even if
documentary requirements are still reported to be among the main challenges facing trade, much
is being done by Regional Economic Communities to promote trade. East African Community
(EAC) has made significant strides to ease trade among member countries.
He (2013) recalls that in 2006, the East African Community Standards, Quality Assurance,
Metrology and Testing Act (SQMT Act) was signed to boost and accelerate trade in the region.
The Act stipulates mutual recognition of quality marks and other conformity assessment
documents issued by competent authorities in member countries. The author further says that
Uganda, Rwanda, Kenya, Tanzania have put in place a system called the Electronic Single
Window aimed to speed up goods clearance in customs. The system is an interface whereby
quality checks are done prior to customs clearance.
While the WTO (2018) reports that Africa has been lagging behind in promoting intra-Africa
trade which is estimated at 18%, Chidede (2018) argues that the continent has started working to
14
reverse this situation by strengthening regional trade and economic blocks, and efforts to work
together have seen the establishment of the African Continental Free Trade Area (AfCTA)
established in 2018 become a reality.
In Rwanda, when the country became a member of WTO in May 1996 the aim was to access the
international market and have a say on international trade issues. After establishment of the
National Enquiry Point in 2005, the country started implementing the WTO/TBT and continued
implementation of the Free Trade Agreements. Ministry of Trade and Industry [MINICOM],
(2010) articulates that opening and liberalizing the economy is among the pillars of the national
sustainable development strategies.
While the country is working hard to ensure a conducive business environment, in the Made in
Rwanda Policy (2018), it has also identified priority sectors to focus on to promote exports. The
Rwanda Trade Policy that was published in 2010 recommends capacity building for industries to
meet product and service standard requirements at domestic and international markets.
Participation in international trade is another priority which leads to the development of a
National Export Strategy which aims to promote exports to Africa, Europe, America and Asia.
Nizeyimana and Wulf (2015) note that Rwanda considers free trade as an economic development
enabler; and in 2012 the country started implementing the Rwanda Electronic Single Window.
This is an electronic system that helps declaration of exports and imports by use of a single
window that enables interaction of all regulatory and various agency responsible of monitoring
and facilitating trade. The system informs dealers and their agents of the development for the
issue of their goods.
15
2.1.4 Roles of the World Trade Organization
According to WTO (2018), its overriding role is to make sure that trade is done smoothly, freely
and predictably. This mandate is achieved through implementing different functions, namely: (i)
making follow up on implementation of trade agreements, (ii) providing forum for trade
negotiations, (iii) settling trade-based disputes among members, (iv) performing review of
members trade policies, (v) initiating trade capacity building for least developed and developing
members’ economies and (vi) assuring international cooperation with other regional and
international organizations. The above functions sum up to deliver three main roles, i.e the trade
regulatory role, trade promotion role and the diplomatic roles.
2.1.5. Trade Agreements
In exercising the regulatory roles, the WTO is mandated to set up global trade rules and
agreements and ensure that all members abide with them. WTO (2018) attests that global rules
provide assurance and stability. Vijayasri (2013) asserts that with those regulatory instruments,
the market is supplied with quality and safe products, both processed and non-processed; and
consumers are free to make choice from diversified trustable sources. Trade deviations are
reported to the WTO and handled through WTO’s dispute settlement process.WTO unites
markets worldwide through decreasing, and where possible, eliminating barriers to trade. This is
done through promoting negotiations among members and increasing collaboration between
those in the market, governments and regulators.
2.1.6. Trade Promotion Role
WTO (2014) argues that the WTO practices its trade promotion role through regular monitoring
of trade across the globe. The WTO Trade Review Mechanism helps to share trade documents
16
and requirements information to enable other members to understand and effectively interpret
them by understanding the impact they would have on their businesses. In doing this, peer
review is undertaken, scrutinizing all the standards, technical regulations and other relevant
documents and producing a report that is shared with commenting members and the Secretariat
of WTO.
In addition to this, WTO also regularly monitors global trade to analyze its performance and
available challenges. As almost about ¾ of WTO member states are developing or least
developed, the WTO undertakes the advisory and trade capacity building role as well as
technical cooperation missions to least developed and developing economies in need of
improvement of their trade performance (O’Neil, 2016).With the advocacy function, developing
and least developed members are granted a more extended time to be able to implement
agreements, measures and therefore benefit from shared opportunities in global trade.
2.1.7. Countries Relations
WTO (2018) states that, being a multinational international organization, the WTO is much
engaged in diplomacy, and more specifically business diplomacy. Saner and Yiu (2005) denote it
as an activity of coordinating interactions between companies all over the world and their
multiple non-business counterparts. Ruël and Walters (2013) offer a more detailed definition of
business diplomacy that tackles the complexity of the global market and the concept of
legitimacy, which is an integral part of business diplomacy. They reiterate that business
diplomacy aims to set up and keep good relationships with foreign governments and other
business actors in a foreign business environment.
17
Further, Lim (2014) holds that international trade actors contribute more to easy international
trade through the International Political Economy (IPE), which he explains as the study of
economic activities that happen in a market where individuals go to maximize profits from their
products or services; and the state where the same people gather for collective action. Similarly,
Ruël (2013) adds that WTO plays the diplomatic role through performing its functions as the
trade negation forum, settling trade disputes and cooperating with other international
organizations. The organization opens up a broader scene for freeing trade worldwide and is well
known to promote intergovernmental trade relations and supporting regional and international
trade and economic blocks.
2.1.8. National Enquiry Point
WTO (2014) states that all countries that join the organization ultimately accept to adhere to the
provisions of all its agreements. With this provision, from the day that Rwanda was granted
membership, the country subsequently started abiding by the WTO/TBT Agreement provisions.
In fact, WTO (2010) explains that the TBT Agreement requires WTO members to set up a
national authority that provides notices of new or amended technical trade-related requirements
proposed by regulatory authorities. In the same spirit, members have the obligation to establish
an office called Enquiry Point that disseminates information on Technical Barriers to Trade
(TBTs).
Nizeyimana and Wulf (2015) state that in 2005 Rwanda Standards Board (RSB) was appointed
by the Government of Rwanda and approved by the WTO to handle the responsibilities of
Technical Barriers to Trade National Enquiry Point. The Enquiry Point ensures that trade
information is delivered to all those that want to do export and import. Information to be shared
18
includes technical and regulatory requirements in domestic market and what those who want to
export their products in a given foreign market should consider.
Emphasizing the interactions between trade agents, Kesteleyn and Ruël (2014) hold that a central
point is needed to facilitate trade. In its daily work, the National Enquiry Point identifies and
shares with those in business updated information on quality and safety requirements and serves
as a liaison for WTO, WTO Members and market actors through sharing and collecting back of
draft principles, ethics, technical rules and compliance evaluation processes for
comments.Importers and exports from all WTO members can acquire information on technical
requirements on the market and subsequently have say on them before they are approved and
implemented.
Ahmed (2011) goes further to explain that trade issues raised are shared with other members
through the WTO ePing system in which all members, National TBT Enquiry Point and business
community stakeholders must register to have access to all information shared from all over the
world. Issues raised by other WTO members are dealt with by the National Consultative
Committee on TBTs and provide feedback to the WTO Secretariat.
2.1.9. Export promotion
Lederman et al.,, (2010) argue that agencies that offer assistance to export companies have been
established in 103 countries before the end of 2005. In this regards, the authors study current
academic subject on export promotion policies employing organizational level observation of
information and export promotion policies. Nizeyimana and Wulf (2015) add that in furtherance
of discussion, researchers referred to those measures enforced by public export promotion
institutions in the direct support to exporters, without subsidization of production and investment
19
that may be export promotion measures in a boarder sense. Specific types of assistance are for
instance the provision of information on destination countries and export processes, helping
companies to participate in overseas market study missions and trade fairs and assisting
companies to negotiate with importing companies.
O’Neil (2016), discussing how firms take advantage of export promotion measure, reiterates that
a significant relationship between a company’ use of an export promotion measure and the
value of its exports can be seen as the actual effect of the export promotion policy on exports or
it may be the effects of reverse causality. It implies that companies are committed to export are
selected to take advantage of export promoting support. Biesebroeck et al., (2016) note that
typical methods to copy with problem identification in empirical analysis of export promoting
policies like instrumental variable estimation, difference in difference estimation, propensity
score matching, estimation using a sub-sample in which self-selection bias is restricted and
follow up for fixed impacts or various variable.
In Rwanda, the MINICOM (2010) informs that Rwanda’s principal export products are: tea,
coffee, minerals, and a few other food products. The Ministry states that for tea, coffee and
minerals have contributed to 80% of all exported goods from year 1997 to 2007.BNR (2018)
mentions that there is a need to diversify export commodities since relying on the same products
has been causing a decrease in export avenues. Rwanda imports a big number of goods from
abroad.
Goods imported from abroad include but are not limited to oils, food products, motor vehicles
and spare parts, pharmaceutical products, electrical appliances and machinery, clothes, textile
products, construction materials. MINICOM (2010) informs that in 2005 and 2009 respectively,
the Ministry of Trade and Industry conducted a trade integration study to understand the barriers
20
restraining development of trade in the country. Both studies pointed out that constraints to the
growth of trade in Rwanda are: the lack of adequate infrastructure, limited ability to trade across
the borders due to the country’s land-luckiness and limited value addition to existing exports,
some products not conforming to standards and a business environment in need of continual
improvement.
2.1.10. Export values
The current study analyzes the impact of export promotion policies and discovered a significant
association between export measures and company behavior employing information from each
country. Much and Schaur (2018) determined the role of export promotion policies on company
export behavior , export values, profitability, labor productivity, and so on, utilizing information
on export services given by Denmark Trade Council.
For assessing causal effects of export promotion measures on company behavior, they opt to
follow up groups comparable to those that obtain assistance through the use of propensity score
matching and then discuss the difference between two groups in the successful adjustments over
time in a difference-in-differences method.
Moreover, they assess the impact of export support services on those companies that are drawn
by trade council, a subgroup of treatment group. This discussion is accepted on the following
reasons: Trade council officers choose companies to incorporate relying on observable
company features like belongingness to economic sector that are indicating remarkable
development in local markets overseas and therefore, those company’s participation in the
support program is taken into consideration randomly one such observable variable are
followed up. Consequently, Munch and Schaur (2018) found that export support services lead to
the chance of companies to be exporters in the year they obtain such services by the mean of 3.9
21
percent points, and the probability improves by 5.9 percent two years after obtaining such
support.
Also, Brooks and Biesebroeck (2017) analyzed the role of export support services on Belgian
company’s exports to foreign countries in Europe, using information given by Flanders
Investment and Trade (FIT), a Belgian EPA. Assessing the connection between export support
services and company export behavior, they monitored for measurable characteristics of
companies.
In addition, for the purpose to see the reliability of findings, they were able to analyze similar
information by limiting the sample to companies with more than 20 workers. The analysis
considered supposition that self-choice bias is small in the subsample of companies due to the
small economy like Belgium progressing into foreign markets is important for companies above
a certain size. They demonstrated that export services improve the chance to export by an
average of 8.5 percent. In this regards, a positive correlation was established.
2.2. Empirical Review
This section reviews the existing empirical literature on international trade and export promotion
in Rwanda. In this regards empirical studies related to three objectives of this study are reviewed.
While a joint report by World Bank and World Trade Organization (2015) holds that the WTO
regulatory role triggers the development of economy in less developed countries as it helps to
open trade and help countries to know how better they allocate their resources, the joint report
also indicates that trade agreement increased the export volumes by 28.0% and export value by
16% between 2010 and 2014 in developing countries.
22
According to Rose (2007) WTO membership which has been booming due to the results of its
effective diplomatic role increases trade flows from 38.7% to 42.8% between 2005 and 2006,
and this brings more benefits for developed countries than the developing economies.
Subramanian and Wei (2007) state that the work of the WTO has contributed in increasing world
trade by almost 120%.
Burger and Linders (2009) carried out a research on the effects of trade agreement on export
promotion, a sample size of 234 companies using a mixed method has demonstrated that a
completed trade agreements on the removal of restrictions on trade encourage trade creation with
member countries while leading to trade diversion with non-member states. The authors have
also confirmed that trade agreements strengthen relationships between countries. The study
revealed an increase of 35% of business environment as a result of trade promotion measures
undertaken by countries in Maghreb union.
Furthermore, Fontagné and Mitaritonna (2011) conducted a research on the impacts of
ECOWAS trade agreements on Nigerian predicting model has been utilized relying on ORANI-F
general equilibrium for USA. The study findings contended that ECOWAS trade agreements are
profitable in improving export promotion in ECOWAS members by 19% in term of profitability
from export volume in the period between 2006 and 2010. The influence of ECOWAS trade
agreements is more significant than the effects of trade agreements by solely advanced countries
that are member of APEC.
Findings of He (2013) on the contribution of COMESA, SADC, ECOWAS and EAC Free Trade
Areas (FTAs) utilizing gravity model established that trade within members were improved.
EAC FTA lead to the trade diversion from non-members and SADC FTA stimulate to trade
enhancement with non-members. This study reiterate the role of country to country relations in
23
term of export volume, a significant percentage of 3.9% of increase was observed in West
Africa. Hoekman (2014) assessed various potential effects of FTA in export promotion by
adopting measures of intra-FTA interconnectedness to show the role of FTA on trade flows
between two countries from using gravity model. The study observed that the intratrade
contributed to the increase of 13.8% of trade flow between sub-Saharan countries between 2012
to 2014 after the establishment of tripartite agreements.
Plummer et al., (2010) state that scholars revealed that FTAs contribute more to the trade
expansion but effect to imports reduction is less by 13.1% in Sub-Saharan Africa. Büthe and
Milner (2014) argue that trade agreements contribute to more Foreign Direct Investments (FDIs)
inflows, but specifically in developing world FDIs do not necessarily contribute to an increase of
exports. Kanyimbo and Manduna (2013) started a model that denotes the general trade effects of
regional trade agreements in an adequate competition framework in Kenya. The study indicated
that 64% of sampled companies testified that regional trade agreements enable them to invest in
other East African countries.
O’Neil (2016) reiterates that 39.8% of exporters of oil, manufactured and processed products
gained benefits from their trade partners and all this was due to the fact that they were members
of the WTO. However, O’Neil also notes that exporters do not benefit at the same level because
it depends on whether you export finished products or raw materials. The study revealed that
export promotion was around an annual growth of 8.9% in developing countries.
A study was carried out by Daniel, et al., (2017) in Sub-Saharan Africa in order to assess the
effects of Trade promotion on export promotion in Africa. Statistical figures show that intra-
African trade among member states is estimated to 19.8% of all exports. An econometric model
was used. This study measured trade promotion through the use of trade export and import
24
related costs, calculating using component analysis. These parameters are adopted as
intervening variables to calculate an increased growth model of which results propose that trade
promotion services as a pertinent way through which trade influence exports.
Perera, et al., (2016) carried out a research on trade promotion, export promotion and economic
development in South Asia. Through that study it was agreed that trade promotion expanded
trade only by 3.2% which was not enough in optimizing the pertinent role of trade to export
promotion and decrease poverty. Authors’ analysis evidenced that poor trade promotion limits
trade among countries as it enhances trade transaction costs. A desk research was undertaken
to achieve this objective and identify the correlation between trade promotion and trade
development and economic development relied on statistics gathered from online databases
and the previous available quantitative estimation limited to South Asian Countries.
A study carried out by Pearson and Chaitezvi (2012) reiterates that a difficult trade procedures
and strong regulatory requirements enhance documentation processes necessitated for trade
transactions. Insufficient customs, poor use of information technology and transit barriers
characteristic as the pertinent aspects of trade promotion. Border transaction costs in South Asia
may be as much as 50% higher than the development countries of East Asia and the Pacific.
Jawara and Kwa (2004) establishes that the study of country relations has had an impact in
improving the way people export their commodities by 19.8% of means of export while
participating in a trade platform where everything is based on negotiations and discussions.
Renard (2011) explains that the provisions on country relations encapsulated in the agreement
were planned to improve transparency. These agreements intend to soften customs measures and
policies by requesting relevant corporate institutions to give a single administrative document
when marching customs declarations. The study indicates that out of 380 sampled companies,
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200 companies, meaning 52.6% confirmed the existence of transparency and fairness in cross
border trade.
A study report of Schumacher (2012) states that trade agreements give systematic mutual
cooperation on market supervision and enhancing to transparency which can ameliorate the
dissemination of information related to technical regulations, standards and conformity
evaluation. Agreements on sanitary and phyto-sanitary procedures aim to prohibit these
requirements from working as restrictions on trade and established to confirm processes that
are relied on cooperation. The study revealed that a significant number of respondents, 69.7%
evidenced that the amelioration of relations and cooperation between countries enables them to
have access to information related to technical regulations and standards for goods and finished
products.
2.3 Critical Review and Research Gap Identification
Several authors, including Rose (2007); Subramanian and Wei (2007); Büthe and Milner (2014);
Donna and Hocking (2010) and many others argue that international trade has proved to be
beneficial to export promotion. Through analysis of empirical data, researchers have explained
how the WTO, through international trade, has contributed much in globalizing trade and have
induced that countries are benefitting from that institution’s efforts. However, the critical review
results below show that there are still shortcomings on different aspects regarding the
contribution.
By reviewing the existing empirical studies, O’Neil (2016) found that for a long time, many
people across the globe have supported the contribution of WTO in promoting trade but fail to
showcase the role this contribution has had in developing countries including Africa. Data that is
26
discussed is related to the contribution of international trade in ease of imports but little is known
about the contribution in exports. This study mainly focused on imports; and did not show that
the shortcomings of the WTO in Africa also include facilitation to remove or reduce of technical
Barriers to trade to promote exports. The author limited her view to Africa and not Rwanda.
Buono and Lalanne (2012) hold that statistics that are shown on the exports side only focus on
the already established exporters but do not show how the WTO is enabling new potential
exporters to access foreign markets. This study tackled challenges facing export promotion, they
did not tackle removal or reduction of technical barriers to trade as a strategy to enable new
potential exporters.
Nizeyimana and Wulf (2015) use of ReSW resulted in the reduction of a clearance times and
indirect costs related to international trade. This study only focused on customs management
aspects and goods clearance time, but did not focus on the technical barriers to trade aspect as a
challenging factor to export promotion.
Rose (2007) confirmed that WTO membership which has been booming, due to the results of its
effective diplomatic role, increase trade but unfortunately this brings more benefits for developed
countries than the developing economies The author did not show that developed countries
with high technology and power in international system impose technical barriers to trade that
developing economies are not able to overcome.
Büthe and Milner (2014) revealed that trade agreements contribute to more Foreign Direct
Investments (FDIs) inflows, but specifically for developing world FDIs do not correlate with an
increase of exports. This study did not go further to show why through trade agreements an
increase of FDIs in the domestic market does not result in export promotion; and show how
27
removal of technical barriers to trade can help in this process of international trade in export
promotion in developing world; and more specifically the removal of the reduction of technical
barriers to trade, and getting the private sector fully aware and engaged.
In the review, no study was conduct on the WTO roles in relation with National Enquiry Point in
a given country. In addition to this, except only one, all other studies were conducted outside
Rwanda; and if there was any study in Rwanda, then it was not on the National Enquiry Point,
Rwanda.
This study comes to supplement the afore-conducted studies and bears an emphasis on business
community facilitation through the work of Enquiry Point to engage them in market requirement
awareness processes and to alert them of specific market and policy requirements.
2.4 Theoretical Framework
This study sought to examine the role of international trade in promoting selected exports
businesses taking special emphasis on national enquiry point in promoting selected export
businesses. Therefore, owing to the exploratory nature of the study, a qualitative model is
appropriate and will make use of different theories including: Theory of endogenous protection,
theory of economic regulation and the theory of liberalism.
2.4.1 Theory of Endogenous Protection
Trefler (2015) states that the theory of endogenous protection seeks to protect locally
manufactured products from the competition of imported products through imposing protection
measures. The theory establishes that countries tend to get equilibrium to protect locally made
products. He adds that interest groups, who are the users of products or other people who have
28
interests in trade are the ones to request for protection, and politicians considering interests they
have both in the requesters and market grant the protection.
The theory of endogenous protection is very important to the current research because it is able
to evaluate the impact of international trade agreements, trade promotion and countries’
relations. The researcher will use this theory in the analysis and understanding the possibility of
domestic market protection which would result into technical barriers to trade to Rwandan
exports; and on the other hand showcase the benefits of executing free trade and hence removal
of TBTs against the aspirations of this theory.
2.4.2 Theory of Economic Regulation
This theory was developed by Stigler in 1971. Vijayasri (2013) says that this theory’s scholar
emphasizes that as it is the case for any other product, regulation is made from the marketplace
and the slight difference between regulation and other products is that regulation is the result of a
political process, and this also determines does and don’ts in the marketplace.
Ruël and Walters (2013) add that in his theory, Stigler opposed the idea that regulation advances
public interests, rather emphasized that regulation aims to ensure private not public interests and
this is done while restricting market freedom and governments put forwards benefits for
industries and ignore those for the public.
This theory was relevant to the present study because it is in line with the promotion role of
WTO. The theory was used to analyze the effects of trade agreements promotion on export
promotion in Rwanda, in removing the protectionist attempts in global markets; and evaluate the
applicability of this theory in promoting trade through negotiations to free or regulate the market.
29
2.4.3 Liberalism Theory
Bosse (2013) argues that the liberalism theory opposes the idea that power politics is the possible
way of achieving good relations among states, states and international organizations as well as
other stakeholders in the international system. The theory rather puts focus on mutual benefits
and international cooperation achieved through involvement of international organizations and
non-governmental actors.
The World Trade Organization (2018) argues that international institutions give a forum to
manage dispute in non-violent way; and promote international trade as a way to interconnect
economies. Bosse (2013) adds that the liberalism theory advocates for international democracy
as means to get states to interact with each other and recognizes the role of international
institutions in enabling cooperation among states and those other actors in trade globally. The
further adds that the theory of liberalism promotes free markets by allowing every man to work
to gain his/her own interests using his/her own way by introducing industry and capital into the
competition with anyone’s and everywhere.
While the theory of liberalism was dealt with by many authors and focuses on freeing the
markets, the researcher used this theory in relation with research objective dealing with countries
relations in promoting export through trade negotiations, settling disputes and establishing good
and sustainable relations among states and other market actors as a way to free and ease cross-
border movement of goods, capital and labor.
30
2.5 Conceptual Framework
Conceptual framework refers to a diagram that indicates the relation between independent and
dependent variables. Trade agreement parameters, trade promotion measures and country
cooperation are independent indicators. Export promotion was measured through export values,
export volumes and profitability; whereas government policies on trade promotion constitute
intervening variables.
Independent Variable Dependent Variable
Intervening Variable
Source: Researcher, 2020
Figure 2.1 Conceptiual Framework
The conceptual framework represented in Figure 2.1 shows how international trade role relate
with trade agreement, trade promotion and countries relations; which are the independent
variables in this study; and on the other hand under the dependent variables the researcher has
export promotion indicators that are increase in exports values, volumes and profitability. In
addition, government policy on trade promotion is taken as indicator in intervening variable.
International Trade
Trade agreement
parameters
Trade promotion
measures
Country cooperation
Export promotion
Export values
Export volumes
Profitability
Government policy on trade
promotion
31
2.6 Summary
Chapter two has gone through the literature related to the study topic and its main aspects have
been critically examined. Through the trade agreement, trade promotion and countries relations,
the review has traced its role in promoting trade in general, and more specifically in Rwanda and
the region at large. The review also explored the use of the agreement in curbing TBTs through
harmonization of technical regulations, standards and conformity assessment indicators. Also,
the empirical review was done, research gap highlighted, relevant theories explained and the
conceptual framework explained.
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CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction
Chapter three provides information on research methodology used to successfully carrying out
this study. It explains research design, target population, sample design, data collection methods,
research tools, procedures of analyzing information and ethical considerations.
3.1 Research Design
Blaxter and Tight (2010) argue that the good design in conducting qualitative research that was
based on interpretation of the findings is characterized by clearly explaining the problem,
identifying the population that helps as sample of the research, gathering and analyzing
information and producing a report that embodies the findings. The authors emphasize that when
the researcher understands well this design, it is the earmark of conducting a successful research
and coming up with valuable findings. To effectively deal with this study’s work, the researcher
followed an descriptive correlation research design.
The researcher considers the above research design to be the most adequate given the fact that it
would describe and establish correlations between dependent and independent variables; and
enable the study to reach its logical conclusion on the role of international trade in promoting
selected export businesses in Rwanda through analyzing different interventions of the National
Enquiry Point, Rwanda. The research design is necessary to the verification of tested elements.
Furthermore, it used quantitative and qualitative strategies with the intention to provide the
correlation between development cooperation strategies and business development in Rwanda.
33
3.2 Target Population
Kothari (2011) connotes that prior to sample selection, the research must describe the target
population and then adds that a population is any finite or infinite collection of individual objects
with which the researcher intends to make generalization of the study findings. Asika (2010)
defines population as consisting of all people in a given society.
The target population for this research was a total of 168 traders that are identified in the Rwanda
Revenue Annual Report of the year 2018. This report shows that in that year Rwanda counted
653 export businesses, all sectors inclusive. For the purpose of this research, the following export
business clusters were selected: agro-processing, tea, coffee, cassava and horticulture products.
The afore-mentioned report shows that the total number of export businesses related sampled
168 traders Thus, the target population of this study was 168 export businesses, from which
sample of 119 export businesses was selected.
3.3.1 Sample Size
Creswell (2013) states that in qualitative research in-depth-interviews and other methods are
applied to small samples of participants. In addition, Jackson (2014) emphasizes this point
arguing that small samples sizes, often 10 or more participants, are common in qualitative
research of phenomenological studies and other exploratory research as the emphasis is not big
numbers of participants, but how effectively the data have been collected, analyzed and
interpreted to explain the real problem.
In quantitative and qualitative researches, Yamane formula is commonly adopted for calculating
the sample size. In this regard, the sample size for the present research was determined using the
following formula presented as:
34
Where:
n=Sample Size,
N= Sampled population
e= Margin of Error selected at 5%.
The estimated target population is N = 168 traders. Therefore, the sample population (n)
was
Thereafter, 119 respondents sample population was chosen to take part in the research
process. This population was randomly selected from a population of 168 cross-border
traders in the targeted product clusters, as indicated in the Rwanda Revenue Authority
Annual Report of the year 2018. Clearing agents who are equally important participants due
to their role in facilitating import and export businesses were selected from clearing agencies
to represent companies offering clearing and forwarding services at MAGERWA customs in
Kigali City, which is the main entry point in the country accounting for 85% of all products
entering or exiting Rwanda.
35
Table 3.1 Population and Sample Size
Categories Population Sample size
Agro processing 32 23
Horticulture 9 6
Tea 36 26
Clearing agents 5 4
Trade promotion institutions 3 3
WTO/TBT National Enquiry Point 25 18
Coffee 46 32
Cassava products 12 8
Total 168 119
Source: Primary data (2020)
According to Table 3.1, out of 168 selected cross-border businesses and facilitating services, 119
were considered. The selected sample includes exporters, respondents from clearing and
forwarding agencies were considered, and staff from trade promotion institutions were
considered to maximize the policy making and implementation aspect as the one driving the
essence of trade promotion in the country. For all those businesses and institutions selection of
respondents followed purposive and stratified sampling to participate in this research.
3.3.2 Sampling Technique
As presented in the Table 3.1, the target population has subgroups and it was important to collect
data from those subgroups through selecting a sampling technique that allows collecting
36
information in different strata. The researcher used a stratified sampling technique because it is
relevant when the researcher wants to highlight a specific subgroup within the population. This
was useful because in this study it ensures the presence of key subgroups (agro processing, tea,
WTO/TBT National Enquiry Point and coffee). Using the stratified sampling technique, the list
of selected respondents in every strata was shuffled using Ms. Excel and the first numbers
proportionate to the targeted sample size was considered. The researcher used this technique
because each member of the group has an equal probability of being selected.
Purposive sampling technique was used to select respondents from the key informants because of
their characteristics. This sampling technique was used for respondents from the clearing agents
and trade promotion institutions from whom specific information on technical barriers to trade
and export promotion in Rwanda was required; and respondents from horticulture and cassava
products who were selected basing on their sales. Respondents with very low sales in these two
strata were not picked.
3.4 Data Collection Methods
This section provides information on the methods and techniques or tools for collecting relevant
information. This study used both primary data and secondary data gathering and analysis. In this
regards, the section comprises of research tools used to gather information, procedures of
administering information, reliability and validity of research instruments.
3.4.1 Data Collection Instruments
For quantitative information, a questionnaire was helpful to obtain relevant responses to reach
research objectives. A questionnaire was structured based on research objectives and was self-
administered. The researcher designed questionnaire for cross-border traders, policy making and
37
policy implementing institutions, and clearing agents selected to participate in the study. The
well- structured questionnaires were administered to respondents to obtain their views, opinions
and attitudes on how they think international trade promotes trade in Rwanda and what support
does the National Enquiry Point offer in assisting the business performance.
For qualitative information, the researcher used interview guide. The participants were
interviewed on their current needs to improve international trade related export promotion. The
discussions were recorded by using a voice recorder and the interviews lasted between 20-30
minutes.
3.4.2 Administration of Data Collection Instruments
The collection of information refers to the procedure of obtaining information on indicators and
items of interest, in an established systematic fashion that facilitates one to response argued
research questions, test hypotheses and assess results. The researcher respected respondents’
rights, dignity, privacy, and sensitivities. The researcher also always kept hold of academic
Mount Kenya University (MKU) policies and guidelines for conducting research. The researcher
used research assistant to distribute data collection instruments to the respondents and key
informants to play a role in this research process.
Questionnaires were administered to sampled companies and were used as methods for data
collection; they were written in English and the researcher attempted to explain to the
respondents in their mother tongue. The research collected information concerning the effects of
export promotion in Rwanda. The researcher used a Likert scale of Not at all and Small Extent,
Large and Very Large Extent. Therefore, in this research, the scale of Not at all and Small Extent
38
implies Disagree Extent while Large and Very Large Extent implies Agree. All 119
questionnaires that were distributed were returned.
3.4.3 Validity and Reliability of Instruments
Validity of Instrument
The validity of data collection tools was ascertained through testing. According to Jackson
(2016) a test is qualified to be valid when it successfully assesses what it was intended to
examine. The design of questionnaire and content were approved by experts from Department of
Postgraduate Studies of Mount Kenya University Rwanda. Opinion and guidance from the
supervising lecturer, experienced professionals and other people with education research
expertise helped improve the content of the questionnaire. The design of the questionnaire was
done after an extensive review of literature on international trade, national enquiry point,
Rwanda in promoting export businesses. After approval of the questionnaire’s design and
content, it was tested to five (5) exporting companies and trade promotion agencies randomly
sampled to ensure its validity.
Reliability of Instrument
Reliability of questionnaires was determined by use of the test-retest method. Kline (2013) states
that to conduct a test-retest of a test, a group of subjects obtain the test on two occasions and
correlation of scores is resorted to. In accordance with Rubbin and Babbie (2016)’s statement
that two weeks is a common interval between two research tests, tests and re-test was conducted
two weeks apart.
39
To ensure the reliability of the questionnaire, re-test was done to 10 respondents randomly
selected from exporting companies, clearing agents and trade promotion agencies; and results
proved that the instrument was reliable.
3.5 Data Analysis Procedure
While analyzing the data, descriptive statistics in form of frequency and percentage were
resorted to. Statistical Package for Social Sciences (SPSS) software version 22.0 was adopted to
analyze information. However, more emphasis was also put on analysis and interpretation of
insights and other data gathered during the research in order to come up with a fully-informed
qualitative research data.
3.6 Ethical Considerations
The researcher obtained authorization letter from Mount Kenya University and also approval of
the request to conduct the research from Rwanda Standards Board. The researcher drafted a letter
to the Heads of institutions and agencies where the research was to be conducted requesting for
authorization to carry out the research in respective organizations and agencies. Voluntary
participation was requested to the participants, and those willing to be involved in the research
filled interview consent form. Assurance of confidentiality and anonymity of respondents’
information was made a priority throughout this research.
40
CHAPTER FOUR: RESEARCH FINDINGS AND DISCUSSION
4.0 Introduction
The purpose of this study was to examine the contribution of international trade on export
promotion in Rwanda; which was analyzed based on trade agreement, trade promotion measures
and country cooperation. The findings include results obtained from the descriptive statistics,
correlation and regression model on the contribution of international trade on export promotion
in Rwanda.
4.1 Demographic Characteristics of Respondents
Section on socio-demographic characteristics of respondents depicts general information
concerning participants. These include sex, age group, working experience, employment profile
and responsibilities assumed by respondent.
4.1.1 Gender of Respondents
The researcher wanted to know the gender of respondents in order to understand an inclusive
participation in this research. Distribution of respondents according to gender profile is important
in examining the contribution of international trade on export promotion in Rwanda. The
researcher demonstrated that both women and men are employed by export companies. The
results were shown in Figure 4.1
41
Figure 4. 1 Gender Profile of Respondents
Source: Primary data (2020)
Results presented in Figure 4.1 evidenced that most of respondents are men. It means that 79
(70.5%) were men and 33(29.5%) were women. Furthermore, information obtained from key
informants evidenced that 2 out of 7 interviewees were female, which defines observation of the
gender balance principle of 30% representation. The presence of both female and male
entrepreneurs is crucial in the promotion of export in particular and socio-economic living
condition in general.
4.1.2 Age Distribution of Respondents
The researcher sought to ask participants about their age group in order to see if the age factor
can be a stimulating factor of contribution of age groups in international trade and export
promotion in Rwanda. The research investigated the age distribution of respondents with the
purpose to establish if the various age categories are well represented. Findings are presented in
Figure 4.2.
42
Figure 4.2 Age Distribution of Respondents
Source: Primary Data (2020)
Findings presented in Figure 4.2 indicated that 46 (41.1%) respondents are aged between 31 and
35 years old. Another significant number of respondents, 40 (35.7%) were between 20 and 30
years. Furthermore, 15 (13.4%) were between 40 and 45 years old. Finally, 11(9.8%) were
between 36 and 40 years old. Therefore, all key informants were found to be above 35 years old.
In this regard, workers of the case’s companies are youth compared to the age group of others.
This implied that workers in the companies are in the productive age and energetic to attain
planned objectives. Results demonstrate that most of participants are in their middle age and thus
in a right position to attain high level expectations of export promotion in Rwanda. Therefore,
the age of respondents could not affect the study findings.
43
4.1.3. Respondents According to the Length of Years in Export Business
The length of years that a company and/or staff spend in export business is an important
variable that helped the researcher to assess how long the company/ respondents has been
benefiting from the National Enquiry Point strategies to facilitate and promote trade for
obtaining credible information to this research.
Figure 4.3 Respondent according to length of years in export business
Source: Primary Data (2020)
Findings in Figure 4.3 reflect that 45 (40.2%) respondents had an experience of above more than
4 years in export sector. In addition, 35 (31.2%) had between two and four years of experience
while the remaining 32 (28.6%) respondents had between one and two years of experience. Data
from key informants demonstrated that, 5 out of 7 respondents had enough experience in export
service and trade matters. This analysis means that employee experience enables export
companies and support services to effectively implement adopted international trade strategies
and measures.
44
4.2 Presentation of Findings
This section analyses information collected from the field according to specific objectives and
dependent and independent variables. The researcher collected both qualitative and quantitative
information from 112 respondents, 7 key reports published by 4 institutions. The researcher
assessed the effects of trade agreements on export promotion in Rwanda, evaluated the effects of
trade promotion measures on export promotion in Rwanda, and examined the effect of country
cooperation on export promotion in Rwanda.
4.2.1 Trade Agreements Parameters Adopted for Trade Promotion in Rwanda
This sub-topic analyses the study’s variable consisting in knowing trade agreements parameters,
contents or clauses concluded for promoting export. Trade agreements refer to agreements that
are intended to the removal or reduction of restrictions on trade in terms of tariffs and non-tariff
barriers. Restrictions on tariffs were amount or percentages of money fixed on imports or exports
commodities; and are among key points discussed in trade agreements. The researcher
considered trade agreements parameters and made the analysis hereunder:
45
Table 4.1Trade Agreements Parameters.
Statement
Not all
Small
extent Moderate
Large
extent
Very
large
extent Total
N % N % N % N % N % N Mean Sd
Removal of duties 12 10.7 10 8.9 9 8.0 42 37.5 39 34.8 112 3.7 1.3
Export tariff fixed 14 12.5 7 6.2 8 7.1 29 25.9 54 48.2 112 3.9 1.3
Export licenses 1 0.9 9 8.0 5 4.5 62 55.4 35 31.2 112 4.0 0.8
Trade quotas 1 0.9 5 4.5 6 5.4 32 28.6 68 60.7 112 4.4 0.8
Production
subsidies 4 3.6 6 5.4 3 2.6 55 49.1 44 39.3 112 4.1 0.9
Domestic Contents
Requirements 11 9.8 12 10.7 20 17.9 29 25.9 40 35.7 112 3.6 1.3
Source: Primary data (2020)
In light to the Table 4.1, 42(37.5%) sampled respondents from selected companies accorded very
large extent score to the effect of removal/reduction of duties whereby the WTO/TBT National
Enquiry Point ensures that manufacturers, importers and exporters obtain the latest evidences on
standards, technical regulations and compliance assessment procedures available in their target
market.
Furthermore, 54(48.2%) companies reported large extent effect accounted to the reduction of
export tariff fixed on an exported product. This confirms that National Enquiry Point handles all
enquiries on standards, technical regulations and compliance assessment processes related to
TBT agreement from other WTO members. Results indicated that 65(55.4%) companies
46
acknowledged large extent effect that export licenses have as restriction on the quantity of goods
that may be exported, if not required in the destination market. Interview with the Ministry of
Trade and Industry remarks that the removal of export licenses restrictions provide an
opportunity to export to the degree that may appear to protectionist trading environment.
Results show that 68 (60.7%) companies attributed very large extent to the fact that trade quotas
were reduced/ removed. Furthermore, 55 (49.1%) companies evidenced a reduction of
production subsidies. Results indicated that 40 (35.7%) companies acknowledged large extent
effective domestic requirements viewed as unnecessary restrictions on the quality and quantity of
goods that can be exported during a specific time period were removed.
According to Rwanda Revenue Authority (RRA) report published in 2019, a specific tariff is
expressed in the context of a fixed amount of money per physical unit of the export product
previously adopted. Respondents opined that ever changing tariffs on exported products
(sometimes to be paid to different service providers and regulators) did not facilitate trade
creation and diversion; as a fixed monetary duty is relatively easy and administered, particularity
to standardized commodities where the value of the dutiable goods cannot easily observed.
During interview with the directorate in charge of external trade in Ministry of Trade and
Industry, the respondent argued: “The reduction of export tariff fixed on an exported product
usually affects more satisfactorily the manufactured goods, because they can be applied to
products with a wide range of grade variations and trigger competitive prices at destination
markets.”
BNR (2019) remarks that trade quotas are a market sharing pact negotiated by traders. Their
intention is to improve the intensity of international competition, permitting less effective
47
domestic producers to involve in markets that would otherwise had lost foreign producers that
sell a superior at a lower price.
An expert in Rwanda Revenue Authority asserts that: “Limiting the practice of organized labor
has lobbied for the use of production subsidies. These subsidies stipulate the minimum
percentage of a product total value that must be produced domestically if the product is to
quality for zero tariff rates.” In support of this point, an expert of external trade at the National
Agricultural Exports Board argued: “The national governments sometimes grant subsidies to
their producers to help improve their trade position in the EAC, COMESA and SADC region in
the framework of tripartite free trade agreement convened to reduce the subsidies given to their
nationals.”
Ahmed (2011) affirms that there is a domestic subsidy that is often granted to producers of
import-competition goods and export subsidies. This position was confirmed in an interview
with the Exports Development Division Manager at NAEB who reiterated that: “Government
subsidies assume a variety of forms including outright cash disbursements, tax concessions,
insurance arrangement, creation of Export Guarantee Fund and loans at below market interest
rates”
4.2.2 Trade Promotion Measures Adopted for Export Promotion
The study sought to establish whether adopted trade promotion measures determined export
promotion of products manufactured in Rwanda. This section assesses the trade promotion
strategies adopted for increasing exports.
48
Table 4.2 Effects of trade promotion on export promotion
Statement
Not all
Small
extent Moderate
Large
extent
Very
large
extent Total
N % N % N % N % N % N Mean Sd
Simplification of
customs processes 10 8.9 5 4.5 5 4.5 36 32.1 56 50.0 112 4.0 1.2
Improve
transparency 13 0 0.0 0 4 3.6 52 46.4 43 38.4 112 4.0 1.2
Testing and
certification
procedures 21 18.8 6 5.4 8 7.1 26 23.2 51 45.5 112 3.7 1.5
Regulatory best
practice 5 4.5 8 7.1 32 28.6 46 41.1 21 18.8 112 3.6 1.0
Promote fair trade
among countries 8 7.1 7 6.2 6 5.4 42 37.5 49 43.8 112 4.0 1.1
Access to
information about
destination market
requirements
11 9.8 4 3.6 2 1.8 54 48.2 41 36.6 112 3.9 1.1
Source: Primary data (2020)
From the study, the Table 4.2 shows the simplification of customs processes and raising
awareness of the new mechanism as a role played by all enquiries on standards technical
regulations and compliance assessment procedures related to TBT agreement from other WTO
members.
The study showed that ease of access to information and simplification of export processes
affected trade volumes. This is because simplification of processes and providing export
information accurately reduces or avoids delays in accessing external markets and hence results
in customer retention. Equally, the study showed that there is improved transparency through
49
notification of Technical Barriers to Trade encountered by Rwandan exporters in foreign
markets, and all this is done through the National Enquiry Point.
Consequently, 56(50.0%) companies indicated the large extent the simplification of customs
processes has on export promotion. Furthermore, 52(46.4%) companies accounted large extent
effecting the improvement of transparency in cross-border trade. 51 (45.5%) respondents argued
that reduced time to access service for standards, product testing and certification as well as
continuous awareness raising on service delivery procedures are a boost to exports. Also,
regulatory best practices were indicated by 46 (41.1%) respondents as a stimulating factor of
export promotion.
Further, 49 (43.8%) companies accorded large extent effect to the promotion of fair trade among
countries; and 54(48.2%) companies reported access to information about destination market
requirements as having a large extent effects to export promotion. All these responses were
confirmed when the researcher held interview the National Standards Division Manager at
Rwanda Standards Board. The Manager emphasized that “ quick and quality service with regard
to product conformity assessment is a centerpiece of trade facilitation”.
This study findings concurred with Rose (2007) that the presence of local obligations and
limitations on the scope of activities that can be undertaken by interfacing with foreigners may
lead to cost and to capital, revenue, break of services, cost overruns, plan to postpone procedures
in exporting promotional process and repairing costs.
The results also agree with the study of Burger and Linders (2009) on multinational enterprises
in a multiple currency world which revealed that the decision on whether product price
amelioration depends on removal or reduction of quotas depends on how easy, quick and
possible the domestic economy allows traders to solve price and income problems. Findings
50
from this study are relevant to what was revealed in the research by Egger and Michael (2014).
They demonstrated that despite the fact that product price was theorized in the context of
financial indexes, there are many more factors that intervene and those include technical,
regulatory and other matters.
4.2.3. Countries Relations Measures Adopted for Export Promotion
The section is concerned with analyzing countries relations as an enabler of ease of doing
business through allowing setting up mutually recognized measures regarded as tools for export
promotion. This variable was measured using the following indicators: mutual administrative
assistance, a single administrative document, agreements on harmonization of standards and
other technical documents, mutual recognition of quality marks and agreement on the rules of
origin.
Table 4.3 Countries Relations on Export Promotion
Statements
Not at
All
Small
Extent Moderate
Large
Extent
Very
Large
Extent Total
N % N % N % N % N % N Mean Sdv
Mutual administrative
assistance 8 6.1 30 26.2 6 5.2 36 32.1 32 28.6 112 3.4 1.3
Single administrative
document 11 9.8 18 16.1 3 2.7 35 31.2 45 40.2 112 3.7 1.3
Mutual recognition of
quality marks 11 9.8 15 13.4 12 10.7 34 30.4 40 35.7 112 3.6 1.3
Agreement on the
Rules of Origin 3 2.7 20 17.9 20 17.9 19 17.0 57 44.6 112 3.8 1.2
Mutual Recognition on
Standards 14 12.5 33 29.5 5 4.5 19 17.0 41 36.6 112 3.3 1.5
Mutual trade facilitation 16 9.0 25 28.3 8 7.9 29 19.3 34 35.9 112 3.3 1.4
Source: Primary data (2020)
51
From the study in Table 4.3, it was found out that 36(32.1%) companies attribute a large extent
impact to the increase in mutual administrative assistance gained through the National Enquiry
Point on matters related to technical barriers to trade. Findings show that 45(40.2%) attribute
very large extent to the use of a single administrative document, also encouraged by Rwanda
Revenue Authority and National Enquiry Point in handling of technical barriers to trade and
other issues through the Rwanda Electronic Single Window (ReSW).
In addition, 40(35.7%) and 41 (36.6) companies attributed large extent to the effect that mutual
recognition of quality marks and standards has in promoting exports among trading countries
respectively. This was confirmed when the researcher held interviews with the National
Standards Division and National Certification Division at RSB. The Managers indicated that the
mutual recognition of standards, promoting the use of harmonized standards and adopting international
standards enable firms to produce more quality products, increase market access opportunities
and increase product competitiveness at export markets.
Finally, 57(44.6%) respondents accorded very large extent effect to establishing agreement on
the rules of origin of products among the trading countries and regional and international trade
blocks; and 34(35.6%) respondents view mutual trade facilitation as having a large extent effect
on export promotion. This was confirmed when the researcher held interview with the National
Certification Division Manager at Rwanda Standards Board. She said that “cross-border trade is
ruined by delays, re-tests and rejection of goods when there are no agreements on standards,
conformity assessment and rules of origin between the trading countries. There is lack of trust
and customer confidence, which results in waiting for longer times to rely on third party
laboratory or agency decisions”. The present research findings concur with observations of
52
Forrest et al., (2008), who noted that mutual administrative assistance would promote the
responsiveness of the export.
Kanyimbo and Manduna (2013) emphasize the potential for countries relations on export
promotion initiatives to substantially reduce such technical barriers on trade. The National
Enquiry Point deals with enquiries on technical barriers to trade and serves as a window for
information sharing and handling of challenges.
4.2.4. Export Volumes between 2015 and 2019
The researcher sought to assess the export volumes between the years 2015 and 2019. The export
volume is the quantity of the goods exported. Usually, the Rwandan export data are calculated in
kg or tones: if you export a given product, the number of exports is the export volume. The
figure below depict on information concerning the volume of goods exported by sampled
companies during the indicated period.
Figure 4.4 Volumes exported by sampled companies between 2015 and 2019
Source: Primary Data (2020)
53
According to Figure 4.4, 46 (41.1%) confirmed that they were able to export goods estimated
between 1,000 and 10,000 Tones. In addition, 29 (25.9%) sampled companies exported between
10,000 and 20,000 tones, 20 (17.9%) exported between 20,000 and 30,000 tones, while 17
(15.2%) sampled companies were able to export less than 1000 tones. Information obtained from
NAEB and the MINICOM confirmed that some companies are exporting small volume of good
and others export owing to the nature of goods to be exported.
This study concur, the findings of Munch and Schaur (2018) found that export support services
lead to the chance of companies to be exporters in the year they obtain such services by the mean
of 3.9 percent points, and the probability improves by 5.9 percent two years after obtaining such
support. In order to verify whether it is the real cause the researcher analyzed export of exported
elucidated by NAEB in 2020 as indicated in Table 4.4 and Figure 4.4
Table 4.4 Estimated Export Volume from 2015-2019
Kind of Export Goods 2016 2017 2018 2019
Coffee 18,499,982 18,502,442 19,560,636 20,353,423
Tea 24,860,386 25,128,967 25,134,567 27,824,246
Pyrethrum 9329 9,329 22,404 23,262
Vegetables 16,620,941 19,227,263 19,227,264 20,635,174
Fruits 3,645,844 5,918,322 5,918,322 8,757,395
Flowers 2,974 177,660.6 177,661.0 704,736
Hides and Skins 3,400,949 6,345,145 6,345,145 6,781,532
Meat 5,310,472 6,237,017 6,237,017 7,021,167
Dairy 12,081,956 12,081,956 12,732,335 17,514,192
Live Animals 941,046 1,139,227 1,139,227 1,510,058
Cereals(Grains & Flours) 54,724,337 141,959,696 141,959,696 237,686,941
Pulses 16,995,500 16,995,500 18,893,861 28,563,820
Source: NAEB Report (2020)
The quantity of coffee produced exported between 2017 and 2018 improved to 10 percent in
comparison with the previous year 2016-2017. This rise has been caused by the rise of
54
productivity which was 19 percent. The income from exported goods improved by 18.4 percent
owing to the price of goods and increase of the quantity exported.
An improvement was caused by the quantity of 27,824,251 kg of tea exported between 2017 and
2018. The mean revenue was 33.17 USD per kg and was increased in comparison with 2.9
USD/kg in 2016-2017. Therefore, owing to higher quantity of precipitation in April and May, the
quantity of exports and its price at the global market were affected in a negative way.
According to NAEB, in 2017 and 2018, the Board assisted producers to ameliorate pyrethrum
yields using mobilization to the utilization of ameliorated plants relying on plantlets and using
relevant agriculture strategies including rotating crops. The entire exported goods in 2017 and
2018 is 30,097,305 kg that earned 23,438,875 USD. Comparing with 2016 and 2017, exported
goods improved by 20 percent and 50% for revenue respectively.
The study did not contradict the findings of Rose (2007), who stated that WTO membership
which has been booming due to the results of its effective diplomatic role increases trade flows
from 38.7% to 42.8% between 2005 and 2006, and this brings more benefits for developed
countries than the developing economies. Subramanian and Wei (2007) state that the work of the
WTO has contributed in increasing world trade by almost 120%.
55
Figure 4.5 Estimated Export Volume from 2015-2019
Source: NAEB Report (2020)
4.2.5. Export Value between 2015 and 2019
The researcher sought to demonstrate the export value of goods exported. This is the amount of
money from export volume. Export data is very important in international trade. The figure
below depicts information concerning the value of goods exported by sampled companies.
Figure 4.6Value earned by sampled companies from export
56
According to Figure 4.6, 23 (20.54%) sampled companies were able to obtain between 20 and 30
millions of export value, 18 (16.07%) sampled companies have export value between30 and 50,
15 (13.39%) gained between 5 and 10 million export value, while 14 (12.50) sampled companies
were able to have more than 100 million. Information obtained from Rwanda Revenue Authority
and National Bank of Rwanda reports confirmed that some companies are obtaining small
amount of value and others more due to the type of goods exported.
This study is relevant with findings of Fontagné and Mitaritonna (2011) who contended that
ECOWAS trade agreements are profitable in improving export promotion in ECOWAS members
by 19% in term of profitability from export volume in the period between 2006 and 2010. The
influence of ECOWAS trade agreements is more significant than the effects of trade agreements
by solely advanced countries that are member of APEC. In order to verify whether, it is the real
cause the researcher analyzed export value by the data obtained from National Agriculture
Export Board (NAEB) in 2020 as indicated in Table 4.5 and in Figure 4.7.
Table 4.5 Value earned by sampled companies from export between 2015-2019
2016 2017 2018 2019
Coffee 60,718,061 58,526,023 58,586,314 69,359,159
Tea 70,773,796 74,548,304 74,571,123 88,069,066
Pyrethrum 4,117,754 1,655,350 1,655,350 3,774,824
Vegetables 4,481,695 11,001,766 11,001,766 12,389,352
Fruits 1,315,871 4,584,972 4,584,972 6,890,737
Flowers 13,428 1,243,427 1,243,427 4,159,785
Hides and Skins 7,411,684 7,957,948 7,957,948 5,853,755
Meat 17,663,941 22,906,406 22,906,406 24,784,245
Dairy 12,758,452 13,061,738 13,061,738 20,644,940
Live Animals 34,513,109 27,001,980 27,001,980 28,528,975
Cereals(Grains & Flours) 27,680,463 68,040,167 68,040,167 104,258,040
Pulses 34,513,109 10,095,956 10,095,956 15,022,428
Source: NAEB (2020).
57
The data above confirmed the cause. For example, coffee exports volume of the FY 2017-2018,
increased by 10% compared to the same period of the FY 2017-2018. This increase is attributed
in the increase of the production by 19%. Export revenues increased by 18.4% mainly due to
some good average prices in some months and increased exports volume.
Figure 4.7 Value earned by sampled companies from export between 2015-2019
Source: NAEB Report (2020)
4.2.6. Profitability of Exports between 2015 and 2019
The researcher assessed the level of export profitability of sampled exporting companies in
Rwanda; namely those that export at different level by performing their financial data for the
year 2016-2020. The results of both tests show that the companies that export less get higher
profit and the companies that export more get lower profit. The figure below depicts information
concerning the volume of goods exported by sampled companies.
58
Figure 4.8 Profitability Gained by Sampled Companies
According to Figure 4.8, 31 (27.7%) sampled companies were able to gain between 20% and
50% of export business, 25 (22.3%) sampled companies have gained between 15% and 20%, 20
(17.9%) had gained between below 5% from export business, while 7 (6.2%) sampled companies
were able to gain more than 50% from export business. Information from Rwanda Revenue
Authority confirmed that the companies that export less get higher profit and the companies that
export more, get lower profit.
Result from the present study matches with the work of Hoekman (2014) who observed that the
intratrade contributed to the increase of 13.8% of trade flow between sub-Saharan countries
between 2012 to 2014 after the establishment of tripartite trade agreements. In order to verify
whether, it is the real cause the researcher analyzed export value as reported by NAEB in 2020 as
shown in Table 4.7 and Figure 4.9.
59
Table 4.6 Estimate profitability of exports from 2015 to 2019 in term of % change Values
2016 2017 2018 2019
Coffee -4 -5 2 18.39
Tea 5 14 15 18
Pyrethrum -60 -13 3 20
Vegetables -145 4 10 12.61
Fruits -248 -13 13 50.29
Flowers - -37 37 39.5
Hides and Skins 7 12 17 26.44
Meat -16 -16 6.2 8.2
Dairy 2 45 45 58.06
Live Animals -22 1.3 1.5 5.66
Cereals(Grains & Flours) -46 -38 38 53.23
Pulses -11 16 26 48.8
Source: NAEB Report (2020).
Improvement emanates from the large quantity of products exported as it is estimated to
27,824,251kg in 2017-2018 compared with 25,128,967 kg performed in 2016-2017. Income
value was estimated to 23.3.17 USD per kg but was .97 USA per kg in 2016-2017. The size of
export was asserted as a result of supports given to exporters by NAEB.
Figure 4.9 Estimate profitability of exports from 2015 to 2019 in term of % change Values
Source: NAEB Report (2020).
60
4.2.7. Correlation Analysis
This section established the relationship between activities undertaken by Rwanda National
Enquiry Point and activities of promoting export in Rwanda. This was established by correlating
each of the activities of National Enquiry Point in promotion of export business i.e. trade
agreements, trade promotion and country relations to the export promotion. The correlation
output is indicated in Table 4.7.
Table 4.7 Correlation between independent and dependent variables
Export
Volume Value Profitability
Trade Agreements
parameters
Pearson Correlation .167 .393** .560
Sig.(2-tailed) .078 .000 .056
N 112 112 112
Trade Promotion
measures
Pearson Correlation -.050 -.159 .167
Sig. (2-tailed) .602 .093 .078
N 112 112 112
Country Relations Pearson Correlation .032 .058 -.041
Sign.(2-tailed) .741 .545 .669
N 112 112 112
**.Correlation is significant at the 0.01 level (2-tailed).
Source: Primary data (2020).
As indicated in Table 4.7, significant positive correlations were found between trade agreements
and increased volume of exports (r=.167*, p=.078), trade agreements and increase of value or
revenue earned from export (r= .393*, p=.000), and trade agreements and profitability(r=.560*,
p=.056).
All the correlations were statistically significant given that the p value was < 0.05 proposing that
an increase in respect of trade agreements concluded by the government increase the expansion
of export volume, export value and profitability earned from export and vice versa.
61
A negative correlation was discovered between trade promotion measures and export volume
(r=.-050*, p=.602), trade promotion and value of export (r=.-159*, p=.093), but it was positive
for export profitability and trade promotion (r=.167*, p=.078). The first two were not
statistically correlated significantly given that the p value was> 0.05 suggesting that an increase
in trade promotion reduced export volume or value.
Finally, significant positive correlations were found between country relations and export
volume (r=.032*, p=.741), country relations and export value(r=.058*,p=.549) and country
relations and profitability (r=-0.041*, p=.669). All the correlations were statistically significant
given that the p value was < 0.05 suggesting that an increase in country relations increase
export volume, value but except profitability and the vice versa. The study is similar with
O’Neil (2016) by reiterating that international trade measures are significantly correlated with
the development of export since the p value was .000 and an increase of a unit in international
trade measures increase export promotion at .890 in developing countries.
62
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.0 Introduction
The aim of chapter five is to recapitulate the study findings discussed in chapter four, to provide
recommendations to the study and suggests what to be studies for future studies when executing
international trade measures through technical barriers to trade removal, and gives suggestions
for further studies. This chapter comprises of introduction, summary, conclusion and
recommendations. It aimed to give empirically based study of the role of international trade on
export promotion in Rwanda.
The research objectives were: to assess the effect of the trade agreements on export promotion in
Rwanda, to evaluate the effects of trade promotion on export promotion in Rwanda and to
examine the effects of country cooperation on export promotion in Rwanda.
5.1 Summary of Findings
Results discussed in chapter four are recapitulated based on research specific objectives and
research questions. This section begins with a summary of results. It further connects findings to
the research problem and purpose and ends with suggestions for further studies.
On trade agreement parameters, contents and clauses adopted to promote exports, the study
revealed that 45.5% companies see large extent effect that the reduction of export tariff fixed has
on exported goods; and the reduction of export tariff fixed on an exported makes the product
more competitive, and with a wide range of grade change. Also, the findings indicated that
52.4% companies find large extent challenge in obtaining an export license as an aspect of trade
63
agreements; and those restrictions negatively affect the quantity of products that can be exported
in specific period of time. Respondents attested that the removal of export licenses restrictions
provides an opportunity to increased volumes of exports. Results further showed that 57.9%
companies informed that if trade quotas were reduced or removed, it would make very large
extent effect on export promotion; and 35.7% respondents acknowledged a large extent effect if
domestic requirements viewed as unnecessary restrictions on the volume to be exported were
removed.
On trade promotion measures adopted to promote exports, results showed that the simplification
of customs processes linked with the role played by the National Enquiry Points to notify traders
of all enquiries on standards, technical regulations and compliance assessment processes,
promote exports. The study showed that ease of access to information and simplification of
export processes affect trade volumes. This is because simplification of processes and providing
export information accurately reduces or avoids delays in accessing external markets and hence
results in customer retention. Equally, the study showed that there is improved transparency
through notification of Technical Barriers to Trade done by the National Enquiry Point.
On the country relations measures adopted to promote exports, respondents indicated that good
relations among countries ease the mutual recognition of standards, promoting the use of harmonized
standards and adopting international standards enable firms to produce more quality products,
mutual recognition of conformity assessment services (testing, certification quality marks, and
accredited services) and thus increase market access opportunities and increase product
competitiveness at export markets.
The results of this study show that 32.1% of respondents recognize the increase in mutual
administrative assistance gained through the National Enquiry Point on matters related to
64
Technical Barriers to Trade as highly impacting export promotion. Also, findings show that
40.2% of respondents attribute very large extent to the use of a single administrative document,
also encouraged by Rwanda Revenue Authority and National Enquiry Point in handling of
technical barriers to trade and other issues through the Rwanda Electronic Single Window
(ReSW). Further, 35.7% and 36.6% companies attributed large extent to the effect that mutual
recognition of quality marks, standards and other compliance assessment services has in
promoting exports among trading countries.
Moreover, 44.6% respondents accorded very large extent effect to establishing agreement on the
rules of origin of products among the trading countries and regional and international trade
blocks; and 35.6% respondents view mutual trade facilitation as having a large extent effect on
export promotion.
On export volumes, value and profitability, this study revealed that some products are seeing
their exports growing and others remaining redundant or even regressing. The increase or
decrease of exports is due to available measures to increase production and promote exports;
which consequently positively or negatively affect profitability. Increase in production results in
increase of export revenues mainly depending on increased export volumes and good prices in
export markets.
Finally, this study established the relationship between activities undertaken by the National
Enquiry Point in promoting exports in Rwanda. Through correlating independent and dependent
variables, significant positive correlations were found between trade agreements and increased
volume of exports, trade agreements and increase of value or revenue earned from export, and
trade agreements and profitability. A negative correlation was discovered between trade
promotion and export volume, trade promotion and value of export; but it was positive for export
65
profitability and trade promotion. Significant positive correlation was found between country
relations and export volumes, country relations and export values and country relations and
profitability.
5.2. Conclusion and Theoretical Implications
The existing literature assessed proposed that despite the fact that many issues of trade
liberalization remain to appear, greater benefits may be obtained by decreasing tariffs on non-
discriminatory basis or through the removal of protectionist measures form internal and local
companies to destination markets completely. The effects of economic integration in these terms
may be assessed in a larger theoretical framework of development theory of trade liberalization.
Our analysis suggests that the economic payoffs to liberalization of trade transactions will be
higher better if the economic governance is continually improved in the trading countries or
economic blocks. Maximizing positive contributions and predevelopment outcomes of the trade
sector requires good country relations, good policies, adequate regulations and strong
institutions, together capable of creating an enabling environment, easing access to information
and simplifying processes.
The study confirms what intuitively many have expected; that the link between international
trade and export promotion is stronger, but surprisingly for some clusters those exporting smaller
quantities are gaining more profit than the ones exporting in bigger quantities due to the type of
products and incapacity to complying with some requirements. To optimally benefit from
international trade, Rwanda needs continually add value to products; thus improving on both the
quality and quantity of goods to be exported.
66
5.3 Recommendations
5.3.1 Recommendations to the Managers of Companies
The researcher proposes that it is relevant for managers of respective companies to take into
consideration trade liberalization principles in products and services, customs cooperation; and
trade facilitation and the promotion measures set out by the Government to avoid unnecessary
losses in time and resources. Given the limited awareness of export market requirements and
procedures (all respondents’ awareness on this was below 60%), the study recommends that
companies should engage more in awareness on foreign market requirements, and work hand in
hand with the National Enquiry Point for assistance on Technical Barriers to Trade related issues
before and after exporting their goods.
5.3.2 Recommendations to the Policy Makers
Ministry of Trade and Industry, Rwanda Standards Board, other trade promoting Government
agencies and the Private Sector Federation should partner to ensure that policies that regulate
export sector are harmonized and well known and understood by exporters. These policies
include: National Export Policy, export guidelines, customs tariffs, quality standards, conformity
assessment procedures, work of the National Enquiry Point, and many others. In most cases,
these policies and procedures affect doing business, cost of goods and services, time to exporting
goods; and therefore the study recommends that exporters should be fully involved in policy
formulation, and regularly updated of changes and improvements in international trade.
5.4. Suggestion for Further Research
The study reveals that the whole economic development went elsewhere to the boundaries of
investigated six indicators. Further research could be carried out on other indicators to explore
other indicators that may affect export promotion in Rwanda. Similarly, the data was collected
67
from a limited range of clusters of exporters in Rwanda. There are various clusters of companies
in Rwanda including building and mining, chemical and allied, energy, electrical and
electronics, leather and footwear, metal and allied; motor vehicle and accessories; paper and
board; pharmaceutical and medical equipment; plastic and rubber, textile and apparels, timber,
wood and furniture ; service and consultancy.
This research recommends a similar study to be carried out from multiple groups of informants
from diversified clusters to come up with a variety of results. Likewise, the study adopted cross-
sectional research design that was restricted to point in-time assessment. Consequently, further
studies may be undertaken using longitudinal research in order to assess factors that contribute to
international trade and export promotion in Rwanda.
68
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APPENDICES
78
Appendix i: MKU Recommendation Letter to conduct research
79
Appendix ii: Request Letter to Conduct Research
80
Appendix iii: Acceptance Letter to conduct Research at RSB
81
Appendix iv: Acceptance Letter to conduct Research at NAEB
82
Appendix v: Acceptance Letter to conduct Research at BNR
83
Appendix vi: Questionnaire – Exporters
Dear Respondents,
My name is Kwizera Simeon. I am a student at Mount Kenya University, School of Social
Sciences, Department of Humanities, Area of specialization of Arts in International Relations
and Diplomacy. As partial requirements to a Master Degree, I am carrying out a research on
import and export businesses.
This research is entitled “International Trade and Export Promotion in Rwanda. A Case of
Technical Barriers to Trade National Enquiry Point.”
I kindly ask you to provide me your opinions related to this research project. The questions
asked are entirely for the use of the researcher and under no condition would they be
communicated to any other person.
84
Instruction to the Questions
Please write your answer clearly in the space provided or tick (√) the box of your best answer
choice in each of the multiple choice questions.
1. Job title/post held………………………………………………………………
2. Respondent according to sex
A. Male……….
B Female…………..
3.Respondent according to Marital Status
A Married
B Single
C Divorced
Single Parent
3. Respondent according to length of years in import business.
85
A Below 1 year……………..
B 1-2 Years…………………
C Above 2-4 Years ………..
D Over 4 Years …………..
Section two: Effects of trade agreement on export promotion in Rwanda
This section would like to assess the effects of trade agreements on export promotion export
volume, values and firm profitability.
4. Please indicate the extent to which trade agreement element below affect export volume,
values and firm profitability. Please, record your answer by ticking in the space given by
scale indicators (1=not at all, 2 –small extent,3= moderate, 4= large extent, 5= very large
extent).
1 2 3 4 5
Removal/reduction of duties on the imported products
Export tariff fixed on an exported product
Import licenses
Trade quotas
Production subsidies
Domestic content requirements
86
6. Please suggest any other restriction on trade cost/logistics activities that affect export volume,
values and firm profitability.
……………………………………………………………………………………………………...
...........................................................................................................................................................
...........................................................................................................................................................
Section C: Effect of Trade Promotion on Export Promotion
This section would like to assess the effects of trade promotion on trade export volume, values
and firm profitability. Please indicate the extent to which the reasons behind trade promotion
below. Please record your answer by ticking in space given, by scale indicators (1=not all, 2=
small extent, 3-=moderate, 4= large extent, 5= very large extent).
1 2 3 4 5
Simplification of customs processes
Improve transparency
12. Please suggest any other restriction on trade cost/logistics activities that affect the trade
creation and diversion
……………………………………………………………………………………………………...
...........................................................................................................................................................
...........................................................................................................................................................
87
Section D: Effect of Countries Relations on Export Promotion
This section would like to assess the effects of countries relations on export volume, values and
firm profitability. Please show the extent to which the reasons behind countries below.
Please record your answer ticking in space given, by the scale indicators) 1= not all, 2= small
extent, 3=moderate, 4= large extent, 5=very large extent).
1 2 3 4 5
Mutual administrative assistance
A single administrative document
Valuation agreement
Agreement on the Rules of Origin
18. Please suggest any other restriction on trade cost/logistics activities that affect export
volume, values and firm profitability.
……………………………………………………………………………………………………...
...........................................................................................................................................................
...........................................................................................................................................................
88
SECTION E: Level of Export Promotion attained by companies
1. The following statement is related on the spices produced by companies. Please indicate
whatever you produce.
Variety manufactured or produced product
Volume of each variety
manufactured or produced
1
2
3
4
5
2. How much did you company sell (in Tons)?
Product Zone for selling
At the firm/Farm gate Local market Export
1
2
3
4
5.
89
3. In what have you changed your way of working? Both before and after 2015
Before 2015 After 2015
1 1
2 2
3 3
4 4
5 5
4. Estimate the value , volume and profitability of exports from 2015 to 2020
Products Volume exported Value of exports Profitability
2015
2016
2017
2018
2019
Thank you for your kind cooperation
90
Appendix vii: Interview for National Enquiry Point Staff
Instruction to the Questions
Please write your answer clearly in the space provided or tick (√) the box of your best answer
choice in each of the multiple choice questions.
1. What, in your view, are contributions of World Trade Organization (WTO) in promoting trade
in Rwanda?
2. What, in your opinion, are benefits that Rwandan exporters are getting from trade regulation
done by the WTO?
3. To assess support from WTO, how is WTO/TBT National Enquiry Point facilitating
importing/exporting products to and outside Rwanda?
4. When there are challenges or disputes owing to noncompliance with required standards or
regulations in domestic and foreign markets, who resolve them and how?
5. What approach (es) do you use to ensure importers and exporters access the services of the
WTO/TBT National Enquiry Point?
6. In your opinion, do you think WTO/TBT National Enquiry Point facilitates exports and
imports?
7. In your opinion, to what extent has the WTO/TBT National Enquiry Point indirectly impacted
imports and exports from Rwanda?
8. In your view, how far has WTO/TBT National Enquiry Point shared market information with
importers and exporters in Rwanda?
Thank you for your kind cooperation
91
Appendix viii: Questionnaire for Clearing Agents
Instruction to the Questions
Please write your answer clearly in the space provided or tick (√) the box of your best answer
choice in each of the multiple choice questions.
1. Respondent according to length of years in import/clearing business.
2. What, in your view, are contributions of World Trade Organization (WTO) in promoting trade
in Rwanda?
3. What, in your opinion, are benefits that importers to Rwanda are getting from trade regulation
done by the WTO?
4. To assess support from WTO, how is WTO/TBT National Enquiry Point facilitating importing
products to Rwanda?
5. When there are challenges or disputes due to non-compliance with required standards or
regulations at the entry point, who resolve them and how?
6. What approach (es) do you use to access the services or help by the WTO/TBT National
Enquiry Point?
7. In your opinion, do you think WTO/TBT National Enquiry Point considers facilitating
imports?
8. In your opinion, to what extent has the WTO/TBT National Enquiry Point indirectly impacted
imports to Rwanda?
9. In your view, how far has WTO/TBT National Enquiry Point shared market information with
importers in Rwanda?
Thank you for your kind cooperation.
92
Appendixes ix: Questionnaire for Trade Policy Making and Implementing Agencies
Instruction to the Questions
Please write your answer clearly in the space provided or tick (√) the box of your best answer
choice in each of the multiple choice questions.
1. Respondent according to length of years in office duties.
2. What, in your view, are contributions of World Trade Organization (WTO) in promoting trade
in Rwanda?
3. What, in your opinion, are benefits that importers and exporters in Rwanda are getting from
trade regulation done by the WTO?
4. To assess support from WTO, how the policy setting and implementation is considering the
role of WTO/TBT National Enquiry Point in facilitating importing products to Rwanda?
5. When there are challenges or disputes due to non-compliance with required standards or
regulations at the entry point, who resolve them and how?
6. What approach(es) do you use to ensure trade promotion policies and regulations facilitate
imports and export businesses in Rwanda?
7. In your opinion, at which level do you think WTO/TBT National Enquiry Point facilitates
imports and exports?
Thank you for your kind cooperation.
93
Appendix x: Summary of Literature review
Author Country Work title Variables Findings Research Gaps
O’Neil (2016) United
States of
America
Accession to World Trade
Organization: Sector Level Impacts
on Extensive and Intensive
Margins of Trade
Sector level
impact
Extensive and
intensive
margins of trade
For a long time, many people across the globe
have supported the contribution of WTO in
promoting trade but fail to showcase the role
this contribution has had in developing
countries including Africa.
Data that is discussed is related to the
contribution of international trade in ease of
imports but little is known about the
contribution in exports.
This study mainly focused on imports; and did
not show that the shortcomings of the WTO in
Africa also include facilitation to remove or
reduce of technical Barriers to trade to
promote exports.
She limited her view to Africa and not
Rwanda.
Buono and
Lalanne
(2012)
Netherland The Effect of Intensive and
extensive margins of trade
Intensive and
extensive of
margins of
Trade
promotion
The authors hold that statistics that are shown
on the exports side only focus on the already
established exporters but do not show how the
WTO is enabling new potential exporters to
access foreign markets.
This study tackled challenges facing export
promotion, they did not tackle removal or
reduction of technical barriers to trade as a
strategy to enable new potential exporters.
Nizeyimana
and Wulf
(2015)
Australia Rwanda Electronic Single Window
(ReSW) Supports Business
Facilitation
Simplified
customs
operations
Business
facilitation
Use of ReSW resulted in the reduction of a
clearance times and indirect costs related to
international trade
This study only focused on customs
management aspects and goods clearance
time, but did not focus on the technical
barriers to trade aspect as a challenging factor
to export promotion.
Rose (2007) United
States
Does Female Board representation
influence firm performance? The
Danish evidence
The study confirmed that WTO membership
which has been booming, due to the results of
its effective diplomatic role, increase trade but
unfortunately this brings more benefits for
developed countries than the developing
economies
The author did not show that developed
countries with high technology and power in
international system impose technical barriers
to trade that developing economies are not
able to overcome.
Büthe and
Milner (2014)
England Foreign Direct Investments and
Institutional Diversity in Trade
Agreements: Credibility,
Commitments and Economic
Flows in the Developing World
Foreign direct
investments
Trade
agreements
The Authors revealed that trade agreements
contribute to more Foreign Direct Investments
(FDIs) inflows, but specifically for developing
world FDIs do not correlate with an increase of
exports
This study did not go further to show why
through trade agreements an increase of FDIs
in the domestic market does not result in
export promotion; and show how removal of
technical barriers to trade can help in this
process.
