EAC told to adopt policy on mobility of services
Jun 04, 2008
THE East African Community (EAC) should develop a policy to address barriers to free movement of services, the executive director of the Private Sector Foundation (PSFU), Gabriel Hatega, has suggested.
By David Muwanga
THE East African Community (EAC) should develop a policy to address barriers to free movement of services, the executive director of the Private Sector Foundation (PSFU), Gabriel Hatega, has suggested.
“Lack of this policy would hurt the sector since there are several barriers to free movement of services that include requirements for work permits and local incorporation of companies,†Hatega said said at the opening of a seminar at the Imperial Royale Hotel in Kampala.
Hatega said Uganda was the most liberalised in trade in services and telecommunications.
“Uganda has no limitation on tourism, trade-related services and telecommunications. The only liberalised sector in Kenya is telecommunications and the only free sector in Tanzania is hotels above four stars,†he said.
Hatega said Rwanda remains the most liberal with no restrictions on services in education, tourism and environmental services.
He said Rwanda has limited restrictions on health, road and air transport and telecommunications.
“Whereas the common market is expected to contribute to elimination of barriers and leave the market forces of demand and supply to decide, the East African Cooperation collapsed in 1977 due to unequal distribution of gains from regional trade. Kenya was taking the lion’s share,†Hatega said.
“It is important for local service-providers to plan for elimination of the barriers and Uganda’s competitive advantage when the education curricula are harmonised with EAC member states.â€
“We need to protect certain service sub-sectors especially those where Uganda has excess capacity. I also urge you to critically review articles 21 to 45 of the draft EAC Common Market Protocol so that you are not taken by surprise,†he said.
THE East African Community (EAC) should develop a policy to address barriers to free movement of services, the executive director of the Private Sector Foundation (PSFU), Gabriel Hatega, has suggested.
“Lack of this policy would hurt the sector since there are several barriers to free movement of services that include requirements for work permits and local incorporation of companies,†Hatega said said at the opening of a seminar at the Imperial Royale Hotel in Kampala.
Hatega said Uganda was the most liberalised in trade in services and telecommunications.
“Uganda has no limitation on tourism, trade-related services and telecommunications. The only liberalised sector in Kenya is telecommunications and the only free sector in Tanzania is hotels above four stars,†he said.
Hatega said Rwanda remains the most liberal with no restrictions on services in education, tourism and environmental services.
He said Rwanda has limited restrictions on health, road and air transport and telecommunications.
“Whereas the common market is expected to contribute to elimination of barriers and leave the market forces of demand and supply to decide, the East African Cooperation collapsed in 1977 due to unequal distribution of gains from regional trade. Kenya was taking the lion’s share,†Hatega said.
“It is important for local service-providers to plan for elimination of the barriers and Uganda’s competitive advantage when the education curricula are harmonised with EAC member states.â€
“We need to protect certain service sub-sectors especially those where Uganda has excess capacity. I also urge you to critically review articles 21 to 45 of the draft EAC Common Market Protocol so that you are not taken by surprise,†he said.