20100628
allafrica

Kampala — The East African Community (EAC) Common Market, a customs union in which all factors of production move freely with the right of establishment and residence, will commence on Thursday July 1, 2010.

The development ends 18 months of negotiations between the five partner states, and will be a foundation of a successful integrated EAC as capital and labour move to where returns are highest.

With competition for a market of 130 million people expected to increase resulting in more efficient businesses and cheaper prices for customers, all EAC member states have to rise to the occasion if they are to tap into this market.

Uganda's like her counterparts, should prepare and be ready for many changes and challenges. The changes may not be immediate, or sudden, but they will happen.

Ugandan EAC Minister Eriya Kategaya, cautioned Ugandans against the misconception that there will be no changes.

"Work permits will not be removed from July 1. The Common Market Protocol does not require the removal of work permits in the EAC, and work permit regimes are still applicable in most partner states," Kategaya, also Uganda's First Deputy Prime Minister, told journalists during a press briefing on the commencement of the EAC Common market in Kampala last week.

He said under the protocol, application procedures for work permits will be harmonised, and that applicants will now know how much time and effort is required to acquire one.

Kenya and Rwanda, have, however, abolished work permits.

Kategaya also dispelled arguments by critics who believe that the region's current pace of integration is too fast.

"A complete protocol is not what will be in place in July 1. The protocol calls for the implementation of the provisions of the protocol to be progressive to ensure that it is put in place at a pace appropriate for Uganda and all other EAC states," he said.

The EAC's Common Market Protocol, classified under the requirements of Article 76 and 104 of its Treaty, conveys: the free movement of goods as governed by the Protocol on the Establishment of the EAC Customs Union; free movement of persons, by ensuring non-discrimination against nationalities and free movement of labour, by ensuring non-discrimination against workers of the other Partner States, based on their nationalities, regarding employment, remuneration, and other conditions of employment.

It also conveys free movement of services, capital through the elimination of restrictions relating to the current payment connected with the movement of goods, services, or capital between Partner States; and the right to residence for any citizen of a Partner State upon fulfilling conditions as determined by the host Partner State.

The East African Legislative Assembly (EALA) has urged all Partner States action in order to ensure that the region embarks upon the process of implementing the EAC Common Market smoothly.

"It should be clear to all that July 1, 2010 marks the beginning of the process of the Common Market stage of integration," the Speaker of the Assembly, Abdirahin Haithar Abdi said in a statement.

He cautioned, however, that the implementation of the Common Market, which provides for the free movement of labour, goods, services, capital and the right of establishment "will be in a progressive manner".

Abdi observed that "more needs to be done in order to actualise the Common Market Protocol", and against this background urged Partner States to "inform the citizens of the Community on the process of implementation of EAC Common Market; amend relevant policies and laws to facilitate operationalisation of the protocol; and establish requisite structures for implementing the free movement of labour, goods, services, capital and the right of establishment."

The five EAC Partner States namely; Burundi, Kenya, Rwanda, Tanzania and Uganda committed in November 2009 to a Common Market when the EAC Heads of State signed the Protocol.

All Partner States reiterated their commitment to the Protocol by ratifying it earlier this year, paving the way for its progressive implementation starting July 1.

Establishment of the Common Market shall be progressive and in accordance with schedules approved by the EAC Council of Ministers.

The Protocol further empowers the Council to confer powers and authority upon institutions as it may deem necessary to administer the Common Market.