The Citizen (Dar es Salaam)

East Africa: Presidents Sign Common Market Pact

Heads of State of the five East African Community partners yesterday signed the protocol on the establishment of the East African Common Market.

The act guarantees residents from Tanzania, Uganda, Kenya, Rwanda and Burundi the right to work and live in any of the partner states subject to limitations imposed by the host on grounds of public policy, security and health.

In accordance with the provisions of Articles 76 and 104 of the Treaty, the protocol provides for free movement of goods, persons and labour; the right of establishment and residence, apart from the free movement of services and capital.

Upon signing, the partner states shall effect reciprocal opening of border posts, keeping them opened and manned for 24 hours.

According to Article 8 of the protocol, the partner states shall establish a common system of issuing national identification documents for their nationals. These shall be the basis for identifying the citizens of the partner states within the EAC.

A partner state citizen who wishes to travel to another partner state shall use a valid common standard travel document.

By the stroke of a pen, the partner states will guarantee the free movement of workers who are citizens of the other partner states within their territories.

Free movement of workers shall entitle them to apply for employment and accept offers of employment actually made; move freely within the territories of the partner states for the purpose of employment and stay in the territory of a partner state for purposes of employment.

The said worker's spouse and children are also entitled to similar rights, including the right to engage in any economic activity as a self-employed person.

The worker shall be subjected to national laws and administrative procedures governing the employment of workers of that partner state, according to the protocol.

Through it, the partner states undertake to harmonise their national labour policies, laws and programmes to facilitate the free movement of labour within the EAC.

The right of establishment shall entitle a national of another partner state to take up and pursue economic activities as a self-employed person; and set up and manage economic undertakings.

The partner states shall remove the administrative procedures and practices, resulting from national laws or agreements previously concluded between the partner states that form an obstacle to the right of establishment.

A self-employed person, who is in the territory of another partner state, is also entitled to join a social security scheme of that partner state in accordance with the national laws of that country.

By signing the protocol the partner states guarantee the right of residence to the citizens of the other partner states who have been admitted in their territories.

The right of residence guaranteed shall apply to the spouse, child and dependant of a worker or self-employed person entitled to the rights provided.

The partner states shall issue residence permits to citizens of other partner states who qualify in accordance with the provisions of the protocol.

Access to and use of land and premises shall be governed by the national policies and laws of the partner states, according to the protocol.

It guarantees the free movement of services supplied by nationals of partner states and that of service suppliers who are nationals of the partner states within the EAC.

Free movement of services shall cover the supply of services from the territory of a partner state to that of another and in the territory of a partner state to service consumers from another partner state.

It also covers service suppliers of a partner state, through commercial presence of the service supplier in the territory of another partner state as well as by the presence of a service supplier who is a citizen of a partner state in the territory of another partner state.

"Each partner state shall promptly notify the council of all measures of general application affecting the free movement of services at the entry into force of this protocol," it says.

The partner states may regulate their service sectors in accordance with their national policy objectives provided that the measures do not constitute barriers to trade in services and are consistent with the provisions of this protocol.

Article 22 which provides for security exceptions on Trade in Services asserts that no partner state shall be required to furnish any information which it considers contrary to its essential security interests.

But the protocol does not prevent any partner state from taking any action which it considers necessary for the protection of its essential security interests.

Upon the protocol coming into force, the partner states shall remove any restrictions between them on the movement of capital belonging to persons resident in the EAC.

The partner states shall also remove any existing restrictions, but shall not introduce new ones on the movement of capital and payments connected with such movement and on current payments and transfers, or apply more restrictive regulations.

The free movement of capital may be restricted upon justified reasons related to prudential supervision; public policy considerations; money laundering; and financial sanctions agreed upon by the partner states.

Where a partner state adopts a restriction based on the reasons above, it shall inform the secretariat and the other partner states and furnish proof that the action taken was appropriate, reasonable and justified.

Member states shall within two years after coming into force of this protocol take measures to secure the protection of cross border investments within the EAC.

For the proper functioning of the common market, the partner states shall co-ordinate and harmonize their economic and monetary policies to ensure macro-economic stability, sustained economic growth and balanced development.

For the proper functioning of the Common Market the partner states, through the protocol, undertake to co-ordinate and harmonize their financial sector policies and regulatory frameworks to ensure the efficiency and stability of their financial systems as well as the smooth operations of the payment systems.

The partner states also undertake to progressively harmonize their tax policies and laws on domestic taxes to remove tax distortions in order to facilitate the free movement of goods, services and capital as well as promote investment within the EAC.

An EAC partner shall not discriminate against suppliers, products or services originating from other partner states, for purposes of achieving the benefits of free competition in the field of public procurement.

The partner states agree in the protocol to apply safety measures in the event of a serious injury or threat of serious injury occurring to the economy of a partner state, following the application of any relevant provision of this protocol.


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Comments 1 to 3 of 3 Post a comment

  • Mulaka Ntanzi-Mmilodi
    Nov 21 2009, 20:32

    Bravo! East African Community. Bravo! Yoweri K. Museveni, Mwai Kibaki, Jakaya Kikwete, Paul Kagame and Pierre Nkurunziza upon signing the Common Market Pact that has been long over due. There is no doubt you have all made history in the annals of the East African Community and of Africa as well.

    What you have done marks the ultimate future of coming together not only of the East African Community having one currency and one East African President but also, of the United African States (as one nation).

    Other African regional leaders will awaken when they see East Africa under one president, one currency, one passport and one joint army; then it will be much easier to realize the African Union as a single nation with one governent.

    I am sure that all far-sited Africans- those forward looking peoples of African descent will welcome this vital step with both hands and creatively participate in the realization of the East African Community nation.

    It is our utmost hope and practical intent to see that the pace at which steps to create the East African Community nation with one president and one curreny, one passport and one army becomes a reality.

    It is the only way to ensure, peace, stability and the bady needed political, economic and industrial unity of African peoples in spite of our thousands of different ethnicities.

    In this way we shall be able to celebrate these differences and yet live amicably as citizens of one country- The East African Nation or better still, the African United States.

    We see this event of signing this pact as the most practical solution to African present and future challenges to eradicate poverty, illiteracy, diseases and reduce economic, scientific and industrial dependence on the developed world.

    What most Africans do not know is the fact that the steady growth and development of the United States of America as a powerful political, industrial and economicaly sound nation and its scientific achievements is to a significant measure the contribution of African blood creativity and hard work.

    Many Black inventors and discoverers have played a big role in the scientific and technological development of America as a powerful country over decades.

    This pact is the African step towards true political and economic independence on a competitive level in the world market.

    We understand that much still needs to be done before we can assure East African peoples of a solid and concret political, economic and industrial as well as scientific and technological advancement for the sustainable future of our children.

    Some of the urgent steps that we shall need to ensure a stable and strong East African Community, its growth and development include among others, the following:

    1. Quickly, first and foremost, a special ministry of Science and Technology designed to especially cater for, encourage and support African talent be established.

    This ministry should not offer just moral but financial and material support to these African minds who have scientific, technological, cultural and social talents.

    It should focus on the identification of African children born super-gifted to help guide their gifts for the overal development of African science and technology.

    This will reduce African deependency on foreign science and technology while ensuring permanent and sustainable growth of African values.

    The fact is that the African talent or creativity that lies untapped, un developed and therefore un utilized is so great and un-imaginable.

    When this is tapped it will transform the continent and Africans peoples into a new world pride that Africans will regain their lost glory on this planet. As it were, so it may be, now.

    2. There is doubt East Africa has huge deposits of oil. The EAC leadership should focus on building oli refineries and ban the exportation of oil from the Comminity to other countries.

    3. Plan for the massive creation of jobs across East Africa. Isn't it a laughable situation when our leaders agree with those who say that majority of East Africans are jobless or that there is a shortage of jobs in the region?

    The apparent shortage of jobs all across Africa is but a lack of viable, feasible and appropriate planning by our leaders.

    East Africa needs so many hospitals, health centers, primary, high schools and universities, road contruction, industrial structures, corporate office complexes, the development and supporting of scientific and technological ideas and their development into tangible articles; agricultural estates, condominiums or residential structures, increased tourism, teacher training, doctors and nurses training. All of these areas will create new jobs.

    There is so much more need for trained personnel in many other areas of East Africa just as there are unlimited human resources that only need appropriate guidance and financial support to initiate private but income generating ventures throughout African villages and urban centers.

    There is a lot of untapped creativity among East Africans. A marshal plan should be put into place to ensure that all areas of job-creation are identified, supported and financed.

    We have all the natural resources we need for all people to participate whether or not they are illiterate. There is ever some kind or form of activity people can engage in to generate money for their families and for commercial purposes all across the Africa continent.

    What has been lacking is proper planning, the will to support and the determination to dare to do the needful in the area of job-creation plus the abuse of financial resources by our leaders over decades.

    In addition to the above, there has been too much misredirection of money in African governments to areas and projects that are counter-productive notto mention corruption and embezzlement of public funds.

    There is nothing so special about India or China that Africa has not when it comes to hard work, creativity and natural resources.

    It is true these two countries have a much bigger home market than all of Africa in terms of population but Africa has all the resources any country even China, needs for industrial, economic and technological growth and development.

    It is a known truth that African natural resources have sustained many a rich countries' growth and development for centuries in some cases.

    With African mineral deposits alone there is no sound reason why Africa is said to be poor and backward. Our leaders must awaken to this fact.

    In essence they have kep us in this despicable state of povery, disease and backwardness. It is quite un-necessary.

    What Africa needs is the Political Will to invest in African creativity, the growth and development of African talent. In addition, Africa has been lacking leaders who sincerely strive for her peoples on a more serious note in the past decades since so-called political independence.

    The fact is, Africa has the natural and human resources plus the ability, and the creativity to sustain her material, cultural, spiritual and scintific as well as technological development and live in endless prosperity for millenniums to come.

    The challenge we place before our leaders right now is: If they are serious about African development in all areas of human endeavor, let them speed up the East African Federation to be followed by the United African States (or the African Union Nation).

    We perhaps need to remember there was a time when former colonial leaders wanted to create an East AFrican Federation but the idea was resisted by native nationalists.

    That was then. At that time, the idea was unpalatable because the peoples were politically in their infant stages. Our incumbent leaders have opened up this new chapter which we must now all support.

    Years have passed by since the East African Community idea was resuscitated by our leaders and step by step we shall reach the prosperity we need for all of our peoples.

    But our leaders must sacrifice personal interests in favor of the overall common and viable interests of the African peoples.

    Today many things have changed and minds have become freer in terms of decison making plus the impetus of world modernization we all see and enjoy to a significant measure on the website/internet.

    If our leaders have the political will and dare to make and conclude all the nest steps, which will lead to the realization of the East African Federation or Nation, then they need and must implement all progressive ideas from our peoples. It is not a dream that East Africa (read Africa) can all be transformed in a period of five to ten years; into a well developed region of the earth. It is but a reality in the making.

  • Fred Njehu
    Nov 22 2009, 05:53

    The theoory of regional integretion stipulates that a common market is the third stage in the process of a united Free trade area. The action we witnessed here in Arusha on Friday is a step towards a long term dream of one united East Africa. One french write said "Development knows no borders" After the experts were involved in drafting the common market protocol one thing observed was their desire and willingness to imbibe the ideas of partner states into one. there are however other complimentary policies that needs to function when the protocol is fully operational. One of them is a functional competition policy--this will monitor the unticompetitive practices existing in the movement of goods and services among the partner states. A healthy competiton in the EAC to promote the private sector which is the engine of our industrialization. With this in place, other mechanisms such as taxation policies, harmonized CET and Rules of origin, standards, counterfeit policies and infrastructural facilities will drive the EAC economies into prosperities.

    By Fred Njehu Reseaecher, CUTS International, Nairobi

  • foryohjonathan0000
    Nov 22 2009, 21:42

    Please remember that UNITED STATES OF AFRICA IS A REALITY!!!