E. Africa Heads Agree On Tariffs

Jun 20, 2003

<b>NAIROBI, Friday</b> - Heads of state of the East African Community (EAC) on Friday resolved issues that have prevented them forging closer economic links, agreeing on tariff structures to govern trade.

NAIROBI, Friday - Heads of state of the East African Community (EAC) on Friday resolved issues that have prevented them forging closer economic links, agreeing on tariff structures to govern trade.

“The three heads of state (of Kenya, Tanzania and Uganda) agreed to set up a zero-percent Common External Tariff for raw material trade between them, 10 percent for semi-processed goods and 25 percent for finished goods,” said a communique issued at the end of a two-hour summit here between Mwai Kibaki of Kenya, Benjamin Mkapa of Tanzania and Yoweri Museveni of Uganda.

“The heads of state also directed the council of ministers to conclude negotiations on the protocol for the formation of the East African Customs Union, to be ready for signature on November 30 this year,” it said.

The approval of the outstanding instruments now paves the way for the three EAC partners to establish closer political and economic links.

The idea of uniting the three east African states was first mooted by British traders, the Imperial British East Africa Company (IBEAC), in 1917 when they formed a loose union between Kenya and Uganda, which were both British colonies.

Tanzania, which was a German protectorate, joined in 1927. The British colonial administration later renamed it the East African Common Services Organisation in 1948, which was later to be transformed into the East African Community (EAC) common market in 1967 when the three countries attained independence.

The EAC collapsed 10 years later due to rifts between the three partners, notably a sharp ideological split between the then socialist Tanzania and capitalist Kenya and quarrels between then Tanzanian president Julius Nyerere and Ugandan military dictator Idi Amin.

In July 2001 Museveni, Mkapa and retired Kenyan president Daniel arap signed a pact restoring the EAC.

Friday’s summit also reviewed and approved new terms of service for judges of the East African Court of Justice and members of the East African Legislative Assembly.
Burundian President Domitien Ndayizeye of Burundi and Rwandan Prime Minister Bernard Mwakuta, attended as observers.

Burundi and Rwanda have have at different times have applied to join the EAC, but their applications have yet to be approved.
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