Arusha — East African Community Treaty would be reviewed to accommodate the Common Market Protocol signed by the regional leaders in Arusha yesterday.

The pact, expected to spur intra-regional trade through removal of practically all barriers, may also necessitate institutional reforms, according to the outgoing chairperson of the East African Community Council of Ministers, Ms Monique Mukaruliza.

She said the Council, EAC's policy organ, has made several post-signing proposals, including ratification of the Protocol, sensitisation programmes across the region and domestication of the Common Market in the laws of partner states.

Ms Nkuraruliza, who is Rwanda minister for EAC Affairs, told leaders that although the Common Market would accelerate the march towards the Monetary Union, she was still worried by non-trade barriers (NTBs) in the region.

"NTBs and structural weaknesses in the administration of the Customs Union at the national and regional levels are the major challenges facing us," she said. She explained that they could undermine the envisaged fully-fledged Customs Union in EA from next year.

That would necessitate the elimination of internal tariffs, comprehensive review of Common External Tariff, review of the application of Rules of Origin, harmonisation of domestic taxes and practical intervention for elimination of NTBs.

"The full implementation of this customs regime starts on July 1, 2010 and the Council is presenting a proposal to this extent to the Summit for approval," she said.

The EAC Customs Union, which was launched in January 2005, will become fully-fledged from January 1, next year, with a complete free tariff.

The Rwanda minister who stepped down as chairperson of the Council of Ministers and was replaced by Dr Diodorus Kamara, the Tanzania minister for East African Cooperation, said there were tangible signs that the Customs Union has stimulated investments, trade and overall consolidation of the East African market.

Contrary to earlier perceptions that it would retard or reverse trade and investment opportunities in some countries, the Customs Union has increased intra-regional trade. For instance, in 2007 the total intra-EAC trade increased by 22 per cent.

During the same year, the total EAC trade with the rest of the world increased by 26.8 per cent up from 22.8 per cent in 2006.