The political wrangling that threatened the prospects of integration efforts is almost history after several countries in the regional bloc such as Tanzania recommitted to the initiative. Following difficult trade relations among EAC partner states, as evidenced by the introduction of increasingly protectionist trade policies by governments in the region, signs of a positive move towards a trading bloc are beginning to become more palpable.
Indeed, increased cooperation between member state governments on regional infrastructure development promises that dreams of a fully integrated region are achievable. The Kenya-Tanzania gas pipeline project, the rehabilitation of the Kenya-Uganda railway and positive progress on the Tanzania-Uganda oil pipeline are all expected to boost regional integration efforts in the long term.
A number of challenges have arisen over the years that have prevented the EAC from realising its trade potential. These include misguided protectionist trade policies that sought to shield domestic industries from perceived competitive threats, tariff and non-tariff barriers and increased threats of double taxation.
In view of the above, a series of policy measures have been envisaged and implemented with a view to revitalising intra-EAC trade. These include focusing on improving and modernising infrastructure links, removing non-tariff barriers and eliminating double taxation.
According to economists and observers, the free movement of people within the region is the key to achieving a fully integrated business community. This will not only enable the transfer of skills within the region, as well as industrial efficiency and technical know-how, but will also strengthen intra-EAC collaboration.
They also stressed the need for the bloc’s countries to consolidate projects aimed at ensuring the availability of strong infrastructure links to enable the smooth movement of people, goods and services in the region.
For years, there have been calls to ban existing non-tariff barriers (NTBs), which have the effect of reducing integration efforts by seeking to protect national industries from external competitive forces perceived as “unfair”.
The EAC Heads of State had also reaffirmed, at their last summit, their commitment to an integrated bloc by requesting their respective executives to spare no effort to ensure the continuation of the integration process through the establishment of effective mechanisms aimed at supporting the free movement of people and goods, and the streamlining of customs controls and processes at the borders.
The EAC is a regional economic community initially founded in 1967, dissolved ten years later and then truly recreated in 2001. It currently consists of 6 member countries: Burundi, Kenya, Uganda, Tanzania, Rwanda and South Sudan. Its competences range from financial and monetary integration (creation of a monetary union on 30 November 2013) to peacekeeping, including respect for good governance.
2024-09-14 02:51:36