Journal Article http://www.ijsrp.org/research-paper-0216.php?rp=P505116Intra-Africa trade is one of the most upcoming approaches of economic growth within the continent of Africa through regional economic integrations established. East Africa Community is one of the newly upcoming strong regional integration with the aim of creating harmonious trade environment among its member countries and propels economic growth among them. This study was done to compare the trading costs and benefit between Tanzanian small and medium agro- enterprises (SMAEs) trading to EAC countries and those trading locally within Tanzania. The study collected a sample of 105 SMAEs trading to EAC countries and 105 SMAEs trading locally. Costs and Benefit Analysis tool and descriptive statistics were used and three regions of Tanzania namely Arusha, Kagera and Mwanza were involved with three types of agricultural crops Beans, Maize and Rice. Results indicate that trading to EAC member countries is more benefit than trading locally. Moreover there are number of obstacles such as unstable agricultural export policy, infrastructural problems such as roads, police stops and other non-tariff-barriers that hinder the smoothness of the trade. However the study recommended that more assistance is required by EAC Secretariat, East African Business Council and ministry of agriculture in Tanzania to support these growing SME so as to tap more benefits and acknowledge their contributions such as enabling proper infrastructures such as roads from the remote to the market areas as well as flow of information and access to finance so as SMAEs can obtain enough capital to expand their business.