Cooperation in the EAC Common Market

 Cooperation in the EAC Common Market

Co‐operation is defined in Article 1 of the protocol for establishment of EAC to include the undertaking by the Partner States in common, jointly or in concert, of activities undertaken in furtherance of the objectives of the Community, as provided for under the Treaty or under any contract or agreement made thereunder or in relation to the objectives of the Community.

Scope of Co-operation in the Common Market is provided for in Article 5 where it states that the Protocol shall apply to any activity undertaken in cooperation by the Partner States to achieve the free movement of goods, persons, labour

, services and capital and to ensure the enjoyment of the rights of establishment and residence of their nationals within the Community.

The Partner states agree pursuant to paragraph 4 of Article 2 of this Protocol;

(a) Eliminate tariff, non‐tariff and technical barriers to trade; harmonise and mutually recognize standards and implement a common trade policy for the Community;

(b) Ease cross‐border movement of persons and eventually adopt an integrated border management system;

(c) Remove restrictions on movement of labour, labour policies, programs, legislation, social services, provide for social security benefits and establish common standards and measures for association of workers and employers, establish employment promotion centres and eventually adopt a common employment policy;

(d) Remove restrictions on the right of establishment and residence of nationals of other Partner States in their territory in accordance with the provisions of this Protocol;

(e) Remove measures that restrict movement of services and service suppliers, harmonise standards to ensure acceptability of services traded

(f) Eliminate restrictions on free movement of capital; ensure convertibility of currencies; promote investments in capital markets (stock exchange) eventually leading to an integrated financial system.

In the implementation of the Common Market, the Partner States further agree to:

• • Co‐operate to harmonise and to mutually recogniseacademic and professional qualifications;
• • Co‐operate to ensure protection of cross border investments;
• • Co‐ordinate and harmonise their economic, monetary and financial policies;
• • Co‐operate to ensure fair competition and promote consumer welfare;
• • Co‐ordinate their trade relations to govern international trade and trade relations between the Community and third parties;
• • Co‐ordinate and harmonise their transport policies and develop their transport infrastructure modes.
• • Co‐ordinate and harmonise their social policies.
• • Integrate environmental and natural resources management principles in the activities relating to the Common Market.
• • Ensure the availability of relevant, timely and reliable statistical data for purposes of the Common Market.
• • Promote research and technological development within the Community
• • Co‐operate in the promotion and protection of intellectual property rights
• • Promote industrial development for the attainment of sustainable growth and development in the Community
• • Sustainably develop and promote agriculture and ensure food security in the Community.

OTHER AREAS OF CO‐OPERATION IN THE COMMON MARKET 

This is provided for in Article 29-45 of the protocol for establishment of common market.

Article 29(1) States that the Partner States undertake to protect cross border investments and returns of investors of other Partner States within their territories.

• For the proper functioning of the Common Market, the Partner States shall co‐ordinate and harmonize their economic and monetary policies to ensure macroeconomic stability, sustainable economic growth and balanced development as provided in article 30.
• Article 31 states that for proper functioning of the common market the Partner States shall 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 shall ensure and maintain convertibility of their national currencies and promote the use of national currencies in the settlement of payments for all transactions within the Community.
• The Partner States undertake to progressively harmonize their tax policies and laws to remove tax distortions in order to facilitate the free movement of goods, services and capital and to promote investment within the Community as stated in Article 32.
• Article 33 Provides for the prohibition of Business Practices by partner states that adversely affect trade.
• Article 41(2) states that the Partner States undertake to develop and adopt harmonised statistical methods, concepts, definitions and classifications for organizing statistical work while duly observing internationally accepted best practices.
• Article 43(1) provides that the Partner States undertake to co‐operate in the field of intellectual property rights to: promote and protect creativity and innovation for economic, technological, social and cultural development in the Community and enhance the protection of intellectual property rights.
• Article 44 Co-operation in Industrial Development where the Partner States undertake to cooperate in the area of industrial development in the activities related to the production of goods and services in the Common Market, for the attainment of sustainable growth and development in the Community.
• Article 45 provides that the Partner States undertake to: sustainably develop and promote agriculture with regard to crops, livestock, fish, forestry and their products; and ensure food security in the Community through access to quality and sufficient food.

Cooperation under the EAC member states

Upon the dissolution of the East African Community, the three countries signed on the 14th day of May, 1984,  at  Arusha,  in  Tanzania  the  East  African  Community Mediation   Agreement 1984,  for   the   division   of   the   assets   and liabilities of the former East African Community. In the agreement, the three States agreed to explore areas of future co-operation and to make concrete arrangements for such co-operation. However, as one of the provisions of the Mediation Agreement, the three Member States Kenya, Tanzania and Uganda agreed to explore areas of future co-operation and to make concrete arrangements for such co-operation.

Provision was made by the Agreement for the Establishment of a  Permanent  Tripartite  Commission  for  Co-operation  Between the Republic of Kenya, the Republic of Uganda  and the United Republic  of  Tanzania  for  the  establishment  of  the  Permanent Tripartite Commission  for  Co-operation  to  be  responsible  for  the  co-ordination  of  economic,  social,  cultural,  security  and  political issues  among  the  said  countries  and a Declaration  was  also made by the Heads of State of the said countries for closer East African Co-operation. Subsequent meetings of the three Heads of State led to the signing of the Agreement for the Establishment of the Permanent Tripartite Commission for East African Co-operation on 30 November 1993.

The Treaty for Establishment of EAC also provides forOperational Principles of the Community under Article 7. The principles that shall govern the practical achievement of the objectives of the Community and some of the principle include:

1. - The principle of variable geometry which allows for progression in cooperation among groups within the Community for wider integration schemes in various fields and at different speeds;
2. - The principle Asymmentry means the principle which addresses variances in the implementation of measures in an economic integration process for purposes of achieving a common objective.
3. - The principle of Complementarity which means the principle which defines the extent to which economic variables support each other in economic activity.

Non-cooperation hurting EAC integration

Regional integration and development within the East African Community (EAC) is being undermined by a failure of member states to cooperate on key issues. Speaking in Arusha, Tanzania, Bernd Schmidt, the Deputy Programme Manager GIZ, said political openness among member states was required if integration is to be deepened, suggesting that the envisaged single currency and political confederation cannot be achieved if the successes of the Customs Union are not safeguarded and the Common Market is not pushed any further.

The key issues hindering the acceleration of economic growth and development for the people in the region is the 

• Restricted movement of goods, services and persons including the right of establishment and the right of residence. 
• Trade has also been declining for over four years now. You might get the impression that some East African leaders together with their administrations are happier to import be it soap, sugar, biscuits, or pharmaceuticals from Asia, North America or Europe than to support existing small firms from within the region; firms that create more of the desperately needed jobs and wellbeing among let me say brothers and sisters,” he said.

Nationalist sentiments in the region have become stronger. They seem to have become stronger worldwide. But that does not make the situation any better. Each month, it seems, the EAC Partner States increasingly behave like competitors and not like partners. Regularly we must read -or the press has to report- about new trade barriers be it in the form of tariffs or of non-tariff barriers to trade.

The media, has duty to inform the public about the opportunities, achievements and challenges the community faces because the East African integration is not only key to the sustainable economic success of the partner states but also to peaceful development and cooperation among East Africans.

Presently,there are more challenges facing the community but there’s hope that partner states will improve so that the benefits could be achieved later.