Some experts are casting doubt on the possibility of having a smooth and effective enforcement of the East African Common Market Protocol, which will be signed by the regional leaders at the Sheikh Amri Abeid Stadium today.
Those who have seen the 94-page document, containing 56 articles, told The Citizen that the partner states still had many areas to sort out and a lot of issues to be addressed before the envisaged regional free market could become a reality.
The experts said the member countries needed to align fiscal and monetary policies, standards and procedures, harmonise laws, and overhaul regulatory regimes in order to redress and undertake reforms, or the protocol would not deliver soon the desired results.
Equally important, they noted, was the commitment of the five EAC governments and the support of their own people before persons, labour, goods, services and capital can move freely in the region.
It was further argued that the right and freedom of the citizens to establish an enterprise and do business in any of the five countries -Kenya, Uganda, Tanzania, Rwanda and Burundi - or live in any of them without restrictions would only become possible if cheap politics, chauvinistic nationalism and mistrust were removed or minimised.
Asked if Tanzania was ready for the common market, a Dar es Salaam-based consultant, Mr Felix Maganjila, said it was worth taking up, as the arrangement had many potential opportunities and benefits.
However, he called on the authorities to create more awareness about the opportunities available and advise Tanzanians on how to better exploit them.
"Definitely, serious people are always ready. Even if we are not, the beauty with the people is that they can easily adapt to change," he said, but called for caution in dealing with the sensitive areas.
"We should avoid signing issues that might bring problems for the citizens, such as the land question. Land never increases. So I feel that it should be left out of the contract."
A micro and small enterprises operator, who asked not to be named, said the development was a defining moment for East Africa. However, he added, the protocol did not fully commit the five EAC member states and adequately bind them to strictly adhere to all its provisions.
"In fact, it gives room for manipulation, imposition of unwarranted restrictions, and artificial barriers, if a country so wishes.
And all that means the region was not ready for the signing of the protocol. Politicking has always been a major hurdle," he noted.
Going through the articles and provisions of the protocol, one quickly notes the sharp differences the member states still harbour on various issues despite the rush to sign the document.
Worth noting, however, is the fact that the signing of the protocol and rollout of the common market next year takes place with the member states still governed by their national laws and institutions.
A Ugandan trade economist, Mr Evarist Mugisa, said recently that "the partner states are still reluctant to change from national to regional orientation, as manifested in the form of non-compliance with regional laws, and in duplication of activities that would be better handled at the regional level".
Section Four of the protocol, which deals with free movement of persons and labour, clearly illuminates that reality in Article Seven under paragraph three.
And paragraph five reads: "The free movement of persons shall be subject to limitations imposed by the host partner state on grounds of public policy, public security or public health."
Similar provisions are spelt out on the movement of services and capital, as well as in articles addressing the rights of establishment and residence of nationals of other partner states in any of the EAC countries.
In paragraph seven of Article 14, the five countries say that they have agreed that national policies and laws shall govern matters relating to permanent residence.
Article 15 of the protocol, which deals with issues related to, and the use of land and premises, comprises only two paragraphs.
The first states that the partner states have agreed that national policies and laws shall also govern access to and use of land and premises.
"The rights provided under Articles 13 and 14 in as far as they relate to access to and use of land and premises shall be subject to this Article," the protocol says.
Article 20, which deals with domestic regulation in the free movement of services, states: "The partner states may regulate their services sectors in accordance with their national policy objectives provided that the measures do not constitute barriers to trade in services."
A Mzumbe University lecturer, Dr Honest Ngowi, said the implementation of the protocol should be gradual in order to tighten the loose ends in the legal, regulatory, fiscal and monetary regimes, and provide ample time to undertake the various reforms required to support the common market.
Tanzania, for example, he added, should be required to quickly revisit the law that restricts full liberalisation of the capital account.
As it is, it's in contradiction with Article 24 of the protocol, which, among other things, calls for the removal of restrictions between the partner states on the movement of capital belonging to persons resident in the community.
However, the economist lauded the protocol, saying it was a carefully negotiated text.
"I happened to be a member of the High Level Task Force (HLTF) in negotiations for the Common Market Protocol for Tanzania. It has been a give-and-take process, a win-win situation," he said.
The most important issues that make Tanzania, and, indeed, any other partner state ready for the common market are the annexes to the protocol itself, he said, cautioning that reading the protocol without the annexes could be misleading.
Clauses such as those that stipulate conditions, qualifications and time for such things as free movement of labour and capital and safeguard measures to address imbalances should make the country ready for the common market.
"Indeed, the signing of the protocol should be a challenge to Tanzania to be more ready in areas such as business and labour market competitiveness. It should be an external stimulus to the country and its people to put its house in order," he said.
Article 28 defines capital as including direct investment, equity and portfolio investments, bank and credit transactions as well as dividends and other income.
Tanzanians were last year barred from participating in the Sh900 billion Safaricom initial public offer (IPO), thanks to the government's conservative capital account regime.
Trade experts involved in a survey that evaluated the impact of the EAC Customs Union said the common market protocol leaves room for national governments to erect new trade barriers without breaching the accord to be signed today.
Led by Mr Mugisa, they warned of the protocol posing new threats to the free flow of goods and services.
Mr Tim Clarke, a representative of the EU in Tanzania, told a high level EAC team meeting in Arusha late last month that the timetable was too ambitious.
"A lot of time consuming reforms are still needed to spur mass production and ease the circulation of goods within the region in a way that also benefits the landlocked members."
The EAC will enter into a fully-fledged Customs Union on January 1, next year, which will usher in the launch of the Common Market on July 1.
Given that tight time line, Rwandese Finance minister James Musoni told his counterparts early this month that "there is need for stronger coordination across the sectors in management of the integration process".
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