EAC marks second anniversary of Common Market

By A CORRESPONDENT

NAIROBI. East African Community (EAC) member states that include Tanzania, Kenya, Uganda, Rwanda and Burundi are today celebrating the second anniversary of the Common Market.

Surprisingly, the protocol has not been fully implemented but the EAC member states are determined to focus on the monetary union as the next step forward.

According to kenya’s EAC Minister Musa Sirma a number of successes have been achieved , even though not to the expected levels,”.“Kenya and Rwanda have waived work permit fee. Infact Rwanda only requires an ID and you can cross over. However Tanzania, Uganda and Burundi still have work permits in place. We expect them to remove them as the EAC integration continues to take shape.”

The Protocol on the establishment of the East African Community (EAC) Common Market entered into force on July 1, 2010, following ratification by all the five Partner States — including Burundi, Kenya, Rwanda, Tanzania and Uganda. The EAC Heads of States signed it on November 20, 2009, which coincided with the 10th Anniversary celebrations of the revived Community.

The establishment of the Common Market is in line with the provisions of the EAC Treaty, which provides for “Four Freedoms”, namely the free movement of goods, labour, services, and capital, which are expected to boost trade and investments significantly, and make the region more productive and prosperous.

Being negotiated

The Common Market represents the second stage of the regional integration process, the first one being the Customs Union, which was operationalised in January 2010. Next in the EAC integration process is the Monetary Union, which is currently being negotiated. The final integration process is ultimately the EAC Political Federation.

“The Common Market is expected to ensure goods and people move freely across the border. Kenya is a head in matters of Trade in services and this protocol is expected to spearhead the flow of capital and services within a 126 populations plus market,” Sirma explained.

But even as the EAC prepares to mark the second anniversary, non-tariff barriers still remains the most talked about hurdle towards full market integration. According to the World Bank, the EAC is the third fastest growing economic blocks in Africa.  But the barriers have stalled the region from realising its full potential, in addition to causing friction among the five member states.

“The Government is in the process of eliminating Non-Tarrif Barriers. You heard during the Budget that plans are underway to reduce road blocks, and weighbridges along Kenyan roads,” he added.

General provisions in the Protocol expected to provide the institutional framework needed to operationalise the CM include approximation and harmonisation of policies, laws and systems in the region. There are also safeguard measures, measures to address imbalances, regulations and annexes that guide its implementation.