Transcript policy challenges and opportunities

POLICY CHALLENGES AND OPPORTUNITIES
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Introduction
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Overview of EAC
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Challenges in Implementing EAC CU
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Opportunities Abound
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Lessons from the European Union
Way forward and Conclusion
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EAC integration in line with Abuja Treaty of
1991towards an AEC.
EAC population size of 126 million and GDP
USD 44 billion provides strong potential to
participate better in global trade.
EAC treaty major steps towards full
integration: Customs Union; Common Market;
Monetary Union; and Political federation.
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Institutionally: Summit of Heads of State
highest body; council of Ministers decision
making; coordinating committee; sectoral
committees; EAC Court of Justice; Legislative
Assembly; and Secretariat.
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Customs Union commenced in Jan 2005
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Adopted CET
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Internal tariffs eliminated over 5 year period
ending Dec 2009.
Developed RoO to determine goods eligible
for community tariff treatment.
Harmonization and development of EAC
standards ongoing
Initiated strategy to eliminate NTBs
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Adopted regional competition policy and law
EAC Customs Management Act Implemented
in 2005
EAC is notified as a Customs Union in the
WTO
At regional level 4 members of COMESA while
one Member of SADC
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EAC Customs protocol provides for export
promotion schemes, special economic zones
& exemption regimes, however member
states still maintaining different schemes.
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Implementing the CMA:
• National focus on maximizing revenue rather
than trade facilitation
• Non implementation of some provisions of CMA
by member States.
• HR constraints at regional and national level to
effectively steer implementation.
• Non-uniform application of relevant regulations
and forms.
Parallel application of standards (national and
regional).
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NTB’s within the region major impediment to
trade.
Sensitization and awareness drives still
lacking.
Overlapping membership in other REC’s.
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Large population size and GDP
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Large skilled and semi skilled labor force.
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Well endowed with
including extractables.
natural
resources
Well established financial, telecomunications
and insurance institutions
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Vibrant and upcoming capital and securities
market.
Duty free quota free Market Access under EPA
as well as S&DT under WTO Agreements as
developing and LDC members.
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From start had a common commercial policy.
ToL further streamlined and enhanced EU
Trade Policy giving it exclusive competence
on key aspects of trade.
Negotiation of trade agreements at bi-lateral;
regional; and multilateral level done as a
block.
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Mandate EAC secretariat with exclusive
competence to implement a common trade
policy for the region including negotiation
with third parties at bilateral; regional; and
multilateral level.
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Hasten harmonization of trade and related
policies.
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Improve institutional coordination between
national and regional bodies.
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Develop and apply a unified, simple regional
trade policy tool.
Establish dedicated research institution or
department to benchmark and enforce best
practices.
Promote and improve on awareness raising
drives.
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Improve trade facilitation by eliminating
NTB’s,
improving
infrastructure
and
addressing the other supply side constraints
faced in the region.
Continually assess and evaluate the impact of
applied policies with a view to improve and
redress any short comings.
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All in all the EAC brings with it a great
potential for economic development in the
region, with the right policies applied in a
uniform manner, the vast resources will be
better exploited, investment opportunities
enhanced and the limited technical human
resources especially in trade and related
institutions better utilized at the national,
regional and multilateral level by pooling
resources from amongst the member states.
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