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EAST AFRICAN COMMUNITY

EAST AFRICAN COMMUNITY. “INTEGRATION JOURNEY” Ministry of East African Affairs Commerce and Tourism. Presentation. Introduction Stages of Integration Customs Union Common market Monetary Union Political Federation. Stages of EAC Integration Process. CUSTOMS UNION. COMMON MARKET.

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EAST AFRICAN COMMUNITY

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  1. EAST AFRICAN COMMUNITY “INTEGRATION JOURNEY” Ministry of East African Affairs Commerce and Tourism

  2. Presentation • Introduction • Stages of Integration • Customs Union • Common market • Monetary Union • Political Federation

  3. Stages of EAC Integration Process CUSTOMS UNION COMMON MARKET MONETARY UNION POLITICAL FEDERATION 2005 – 2010 July, 2010 2012 Ultimate 3

  4. APPLICATION OF THE COMMON EXTERNAL TARIFF AND RULES OF ORIGIN REMOVAL OF ALL INTERNAL TARIFFS ACROSS THE EAC EAC CUSTOMS UNION UMOJA WA FORODHA FREE MOVEMENT OF GOODS WITHIN THE EAC DEVELOPMENT & HARMONISATION OF EAC STANDARDS ELIMINATION OF ALL NON-TARIFF MEASURES AND BARRIERS

  5. Customs Union was Protocol was signed in 2004, launched on 1st January 2005, and became fully-fledged on 1st January 2010. It provides for the free movement of goods between Partner States with zero internal tariffs

  6. KEY PILLARS • Internal tariffs eliminated by June 2010 in the Community • Fully implement the reviewed CET and avoid stay of CET application for certain goods in some partner states • Total commitment towards fully eliminating the existing non tariff barriers • Simplify the EAC Rules of Origin • Common Customs Law

  7. COMMON EXTERNAL TARRIFF (CET) • CET – All partner states implementing a CET structure of 0%, 10% and 25%. Supported by a list of sensitive items. • Rules of Origin – EAC Rules of Origin in place

  8. FREE MOVEMENT OF THE FACTORS OF PRODUCTION e.g. LABOUR, LAND, CAPITAL & ENTREPRENEURSHIP • Signed on 20th November 2009 • Fully ratified in April 2010. • Came into effect on 1st July 2010 • Provides 4 freedoms and 2 rights THE EAC COMMON MARKET

  9. I. FREE MOVEMENT OF PERSONS II. FREE MOVEMENT OF LABOUR IV. RIGHT TO ESTABLISHMENT III. RIGHT TO RESIDENCE THE EAC COMMON MARKET ANNEXES V. GRADUAL LIBERALISATION OF SERVICES VI. FREE MOVEMENT OF CAPITAL

  10. Common Market Protocol • The Protocol establishing the EAC Common Market, signed on 20th November 2009, contains 56 Articles and 6 Annexes of Regulations. • The Protocol provides for: • Free Movement of Persons • Free Movement of labour • Right of Establishment • Right of Residence • Free Movement of Services • Free Movement of Capital

  11. 3RD PHASE OF THE EAC INTEGRATION PROCESS NEGOTIATIONS STARTED =>JAN 2011 THE EAC MONETARY UNION FOCUS ON MEETING CRITICAL CRITERIA TARGET DATE OF 2012 TO ESTABLISH MONETARY UNION HIGH LEVEL TASK FORCE ESTABLISHED TO LEAD KENYA IN NEGOTIATIONS

  12. STEPS TO A SINGLE CURRENCY • East Africa Community partner states have to • integrate their financial markets • Align their exchange rates • Make their currencies convertible across the region • Harmonize monetary policies

  13. Political Federation • Fast tracking the EAC Political Federation • Report of experts on a study of fears, concerns, and challenges identified on political federation • Summit directed further work on how the fears can be handled • Negotiations ongoing

  14. Governance

  15. ELIMINATING NTB/Ms MODALITIES FOR POLITICAL FEDERATION BEING LOOKED AT implementing COMMON MARKET ANNEXES CURRENT STATUS THE MONETARY UNION PROTOCOL ALIGNING EAC LAWS WITH NEW CONSTITUTION INCREASING AWARENESS ACROSS THE SPECTRUM

  16. Lake Victoria Basin • Lake Victoria Basin HIV& AIDS Partnership programme • Safety of navigation on the Lake • Lake Victoria Water and Sanitation Project • Mt. Elgon Regional Ecosystem Conservation project. • Mara River Basin project to deal with the main threats in the basin

  17. Infrastructure www.eac.int/infrastrucutre • Railway Master Plan • Road Master Plan • CASSOA • Maritime Port Bell LVEMP II project www.eac.int/infrastrucutre

  18. EAC Road Network

  19. Energy EAC POWER MASTER PLAN www.schunkhorizons.com www.ecofriend.org • Construction of Oil and Gas Pipelines • Power Master Plan • Cross Border Electrification www.redgreenandblue.com

  20. Communications Broadband Infrastructure Network E-Government Framework and Cyberlaws http://sgp.undp.org http://www.futmagazine.com http://www.jrcs.bardaglea.org.uk/ict http://www.mbcf.nl/en/sectorfocus/ict

  21. KENYA'S EXPORTS TO EAC 2006-2010 in Bill Kshs. w w w . K R A . g o. k e ISO 9001:2000 Certified

  22. Kenya’s exports

  23. FREE MOVEMENTS MARKET SIZE 133MILLION PEOPLE NO IMPORT DUTY OPPORTUNITIES ATTRACTION OF FOREIGN DIRECT INVESTMENT INCREASED BUSINESS OPPORTUNITIES RIGHT OF ESTABLISHMENT AND RESIDENCE

  24. Opportunities • Market size of 143.5 million people • Combined GDP (nominal) of US dollars 110.3 billion • Employment opportunities • Professionals • Administrators and Managers • Technicians and Associate Professionals; • Craft and related workers • Trade in Goods

  25. Opportunities Cont… Trade in Services; • Professional and Business • Communication; • Distribution Services; • Education Services; • Financial Services; • Tourism and Travel Related Services; and • Transport services

  26. NON-TARIFF MEASURES & BARRIERS OUTSTANDING ISSUES => THE CMP CHALLENGES IMPLEMENTATION OF DIRECTIVES & DECISIONS NATIONAL SOVEREIGNTY CONCERNS

  27. Thank You

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