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Businesses to boom in Common Market
An exhibition of products made in Tanzania: One of the key benefits of the Common Market will be the easing of cross-border trade. Photo/FILE
Big business opportunities await East African citizens as presidents of the five EAC member states sign the Common Market Protocol this week.
The planned signing of the protocol this Friday (November 20) by the heads of state of Kenya, Uganda, Tanzania, Rwanda and Burundi, is expected to usher the region into an era of accelerated economic growth and development.
It will allow free movement of goods, persons and labour in all the five partner states.
Also to be enjoyed under the Common Market are the right of establishment, the right of residence, and free movement of services and capital across the region.
The Common Market is the second stage in the integration of the 120-million people economic bloc.
It comes barely five years after the launch of the Customs Union, the first stage in the integration process.
Under the protocol, negotiated for more than one-and-a-half years since April last year by a high level task force appointed by the five member states, the countries have agreed to eliminate tariff, non-tariff and technical barriers to trade; harmonise and mutually recognise standards and implement a common trade policy.
They have also agreed to remove restrictions on movement of labour, harmonise labour policies, programmes, legislation, social services (education, health, safety), 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.
They have also committed to remove restrictions on movement of services and service suppliers, harmonise standards to ensure acceptability of services traded; eliminate restrictions on free movement of capital; ensure convertibility of currencies; and promote investments in capital markets (stock exchange), eventually leading to an integrated financial system.
One of the key benefits of the Common Market is the easing of cross-border movement of people.
Under the Common Market, which is expected to come into force next year, East African citizens have the freedom to enter the territory of another partner state without a visa.
Except Tanzania, all the other East African countries have agreed to use national identity cards as travel documents.
The protocol says the host partner states shall, in accordance with their national laws, guarantee the protection of the citizens of other partner states while in their territories.
However, free movement of persons is subject to limitations imposed by the host partner state on grounds of public policy, public security and public health.
Closely linked to this is free movement of labour. East Africans will now work in any partner state.
