20091228
allafrica

Nairobi — The move towards Political Federation in East Africa will gain momentum once the other pillars are well established, Kenya's EAC Permanent Secretary David Nalo has said.

Shrugging off calls to shelve the Political Federation -- slated for 2015 -- Mr Nalo said the region had jumped the huddle of creating a free trade area, which he described as the most difficult phase.

"We are on high gear to remove internal tariffs which stand in the way of free and smooth movement of people, goods and services. All indications are that by July 2010, these will be behind us," he said in a telephone interview.

He added that the region is the second, after the European Union, to develop a Common Market.

Mr Nalo called on scholars to adopt a more practical approach to integration, saying their sentiments are based on theory.

He told them to look at the achievements on the ground, such as inter-regional infrastructure projects like roads.

He cited the Arusha-Namanga-Athi River and the Busia-Kampala roads which are under construction, and which are joint EAC projects.

The coming into force of EAC's fully fledged Customs Union from January 1, he said, is the culmination of five years of close consultations between partner states on elimination of duties on goods originating from the region.

It is a strong indication that the EAC is a few steps away from becoming a single destiny, a development beefed up by the Common External Tariff which applies on goods imported into the block.

Mr Nalo said the World Trade Organisation has recognised East Africa as the only region with a functioning Customs Union.

With the Common Market in place, he said, the volume of movement will increase, creating a need for measures to spur growth.

First among these is the need to exchange money, such that East Africans can transact in any currency at determined rates within the community's borders.

This is the reason the region's central banks are working closely to harmonise and standardise forex management.

In some towns, such as Arusha, Kenyan currency is already trading freely.