Business
EAC launches common market scorecard
Publish Date: Feb 19, 2014
EAC launches common market scorecard
EAC boss Dr. Richard Sezibera
  • mail
  • img
newvision

The East African Community has launched a scorecard to monitor the implementation of the Common Market among its five member states.

Entitled, “East African Common Market Scorecard 2014: Tracking EAC compliance in the movement of capital, services and goods,” the report was prepared with the support of the World Bank Group.

The scorecard examines selected commitments made by the partner states, outlines progress in removing legislative and regulatory restrictions to the protocol, and recommends reform measures.

Addressing delegates at the launch of the report in Arusha on Tuesday, EAC Secretary General Dr Richard Sezibera said that all partner states were expected to remove internal tariffs, implement a common external tariff, and remove non-tariff barriers to trade, among other commitments. “If implemented, these measures will have a profound and positive impact on the economies of the partner states.”

East African countries, Dr Sezibera said, had committed themselves not to introduce new restrictions, and to eliminate existing ones. The scorecard, he said, would assist in these efforts by keeping track of progress on commitments to the protocol. “It is about identifying those areas where we are doing well and strengthening them. And also about identifying those areas where reforms are required to meet the expectations of deepened integration.”

In her closing remarks, the chairperson of the EAC Council of Ministers and Kenya’s Cabinet Secretary for East African Affairs, Commerce and Tourism, Mrs Phyllis Kandie, said that the region’s citizens were eager to exploit the vast potential of a well-functioning Common Market. “They would like to enjoy the benefits that come along with market integration. Due to slow pace of implementing the protocol, the optimism among East Africans during the launch of the protocol is slowly fading away and being replaced by some level of despair.”

The East African Business Council executive director Andrew Luzze pointed out that an important criterion for cross-border investment and foreign direct investment is a facilitative and predictable business environment across the EAC Common Market. “An important aspect of this is that rules, regulations and other administrative actions governing the movement of capital, services, and goods, should exist only to ensure public safety and fair competition – never to stifle legitimate businesses.

Catherine Masinde, the head of investment climate for East and Southern Africa at the International Finance Corporation, said that some of the measures that have worked against the aims of the Common Market include the application of charges equivalent to tariffs, technical barriers to trade, non-recognition of rules-of-origin certificates, nationality and residency requirements before offering services, restrictions in ownership of firms, and discriminatory tax treatment for investors from other partner states. “The scorecard identifies such restrictions, and recommends their removal, so that the common market can operate as a single destination.”

The scorecard report makes four key recommendations: Complete elimination of tariffs and equivalent measures; elimination of non-tariff barriers; greater effective implementation of the common external tariff; and continuation of the process of harmonization and mutual recognition of sanitary and phytosanitary standards as well as standards preventing technical barriers to trade.

East African News Agency


 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Peter Ssematimba reinstated in the disputed Muyenga Club management
THE Supreme Court has confirmed a ruling in which the Court of Appeal upheld the High Court ruling, restoring Super FM Radio proprietor and managing director, Peter Ssematimba into the Muyenga Club....
Museveni to engage Kenyatta over continued blockage of Ugandan exports
President Yoweri Museveni has promised to engage Kenyan president, Uhuru Kenyatta, over continued blockage of Ugandan exports, an action that contravenes the East African Community (EAC) treaty....
Women conference to address business networking challenges
The conference, which opens on Thursday, will focus on devising means of confronting key challenges that hinder women from fully exploiting their potential....
Apple market value hits $700 bn
A rise in Apple shares Tuesday pushed the market value of the trend-setting US tech icon above $700 billion, becoming the first company to hit that milestone....
82 Ugandan companies enter EAC market
Eighty-two new small to medium Ugandan companies have managed to break into the East African market since 2009, according to the Uganda Exports Promotions Board (UEPB)....
Merck buys rights to NewLink
US drugmaker Merck has bought the rights to an experimental Ebola vaccine being developed by NewLink Genetics, the companies have said....
Should Govt lease parts of Lake Victoria to private developers?
Its Ok
No Way
Not Sure
follow us
subscribe to our news letter