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Common Market

The EAC Partner States are currently negotiating a Common Market Protocol with the view to concluding it by December 2008; ratifying it in June 2009 and January 2010 as the target date for commencement of the EAC Common Market. In fast-tracking the negotiations, a High Level Task Force comprising representatives from the 5 Partner States was created to come up with a Common Market Protocol accordingly.

The Common Market is the second stage of integration and in line with Article 5 of the EAC Treaty which stipulates that Partner States undertake to, among others, establish among themselves an EAC Customs Union and a Common Market, as a transitional stage and an integral part of the Community.

The overarching objective of establishing an EAC Common Market is to realise an accelerated economic growth and development; through the attainment of free movement of persons, labour, goods, capital and services, and the right of establishment and residence. It is envisioned that the Business Community will benefit from the Common Market through a more strengthened, coordinated and regulated economic and trade relations among Partner States. This, it is expected, will assist in promoting regional accelerated harmonious and balanced development.

In EABC’s observation, the Common Market Protocol negotiations have made significant progress and reached an advanced stage. Consensus has been reached on significant aspects of the core areas as detailed in the Draft Common Market Protocol (download here, MS-Word format). These include Free Movement of Goods; Free Movement of Persons; Free Movement of Workers; The Right of Establishment and Residence; Free Movement of Services; Free Movement of Capital; Economic and Financial Sector Policy Coordination; Competition and Consumer Welfare; Common Commercial Policy; Transport Policy; Approximation of Laws;

In May 2008, in partnership with the EAC, EABC organized a regional sensitization workshop in Arusha, which marked the formal introduction of the Business Community to Common Market issues. Recommendations arrived at the Common Market Sensitisation Workshop; May 2008 set the stage for our lobby activity in this area. Currently, EABC is represented at all negotiations. In addition, we are engaging our members electronically, before and after any meeting, with the aim of seeking their views and articulating them in our contributions. Go to Publications for reports from the ongoing Common Market High Level Task Force negotiations. 

Within the framework of the Common Market Negotiations, EABC has followed these negotiations and we are at the moment concerned about the speed, or rather lack of headway. It was envisaged that by April this year, the Protocol should have been signed and ratified by 2010. The first stage of Common Market Protocol Negotiations was concluded with the draft Protocol presented during the Multisectoral Council meeting on the 8th - 9th April, 2009.  During the same session, the Multi sectoral Council adopted, among others, a roadmap for developing the instruments for the implementation of the EAC Common Market Protocol.  It is now envisaged that by November, 2009, the Draft Protocol and the instruments for the implementation of the Protocol will be signed and ratification will still be in January, 2010.

On the 8th -17th May, the Partner States held their first ever EAC Meeting of the High Level Task Force to negotiate Annexes to the EAC Common Market Protocol. The meeting convened in order to consider the following: Incorporation of the Summit decisions into the EAC Common Market Protocol; Consideration of the Drafters Version of the Protocol; Consideration of Annex to remove all Restrictions on the Free Movement of Workers; Consideration of Annex on the Right of Establishment; Consideration of Annex on the Right of Residence Consideration of Annex for Harmonisation and Mutual Recognition of Academic and Professional Qualifications; Consideration of the Annex for the removal of Restrictions on the Free Movement of Capital.

Although there was progress made on some of the above issues, much was left to be desired. These include Right of Residence and Establishment, removal of restrictions on the Free Movement of Workers as well as Incorporation of the Summit Decisions into the EAC Common Market. Although the Summit decisions may seem as straightforward as ‘cut and paste', the meeting failed not reach consensus on the use of National Identity Documents for travel within the Community, Access to Land and Premises and Permanent Residence.