NAIROBI, Nov. 20 (Xinhua) -- The five member states of the East African Community (EAC) on Friday signed the protocol on the establishment of a common market within the block in Arusha, Tanzania.

The signing of the protocol by Tanzania, Kenya, Uganda, Rwanda and Burundi is the second landmark step of the block toward integration.

Speaking at the signing ceremony, Tanzanian President Jakaya Kikwete hailed the signing of the protocol as a great step, according to reports reaching here.

EAC has already had a functional Customs Union which was established in January 2005.

Negotiations on the proposed Common Market began 18 months ago and was expected to be concluded by December 2008. But thorny issues had prolonged the negotiation process which pit Tanzania against four other member states.

The negotiations had been bogged down in three areas, namely national identification document, access and use of land and permanent residence.

Heads of EAC member states concluded the draft EAC Common Market Protocol in Kampala, Uganda in September this year.

Under the Common Market, a series of measures will be taken to integrate the regional market, including achieving a full-fledged Customs Union, eliminating tariff barriers, non-tariff trade barriers and technical trade barriers, allowing the free flow of goods, services, capital and persons, adopting Common External Tariff, introducing harmonized product standards, as well as harmonizing finance, trade, monetary, education, employment and labor policies.

Upon implementation, citizens of the five nations will be free to have cross-border travel without visas.

It is widely considered that the implementation of the Common Market will bring the region into a new stage of development, with increased regional trade, more foreign investment and better regional economic competitiveness.

Upon implementation, citizens of the five nations will be free to have cross-border travel without visas, enabling a free movement of labor, which is expected to optimize the distribution of human resources within the bloc and boost economic development, analysts say.

According to the protocol, companies and firms in one member state will receive equal treatment in other member states, creating a new wave of opportunities for business expansion.

Moreover, establishment of the Common Market is expected to speed up integration and inject new energy for the economic development of landlocked countries such as Rwanda and Burundi.