This is the fourth EAC Trade Report since 2005. The EAC Trade Report 2005 set the pace in analysing the trade flows of EAC as a unified trade entity. Over the period the analysis has improved in quality. The 2008 trade flows reflect continued growth of intra-EAC trade. In spite of some trade imbalances which emanate the inherited historical economic structures of Partner States, some reversal of the hitherto skewed trade pattern is beginning to emerge whereby Partners States that were predominant importers of goods from within EAC are also making entry into the export arena. The report further manifests a commitment of Partner States in the implementation of the Customs Union particularly the uniform application of the customs instruments. In addition, the report is a tool which will enable EAC to model and shape its trade policy with other regions. The ongoing tripartite trade framework being developed between EAC, COMESA and SADC will be informed by the information provided in this and similar trade reports. Statistical data are pivotal factor at all the integration stages of the EAC and become increasingly pertinent as the region moves towards a common market and subsequently a monetary union. Under the Customs Union, production and exchange of customs and trade statistics and information is one of the areas of co-operation and the EAC Customs Management Act provides for the compilation and dissemination of such statistics. This report is therefore a beginning of the harmonisation and development of regional statistical information. Trade information will particularly be useful when rolling out to cover intra-regional flows of other factors of production under the common market.