EABC urges East African Community states to fast-track services trade liberalisation

The business council said delays in implementing commitments under Annex V of the EAC Common Market Protocol were undermining efforts to establish a fully integrated regional services market.

Under the protocol, Partner States committed to the free movement of services and agreed to progressively liberalise seven priority sectors: business, communications, distribution, education, financial, tourism and travel, and transport services.

However, several deadlines for eliminating restrictions, including those set for 2010, 2013 and 2015, have passed without all commitments being implemented.

EABC said services account for about 46 per cent of EAC gross domestic product, more than 30 per cent of formal employment and approximately 24 per cent of intra-EAC trade.

The sector is a key driver of regional integration, supporting finance, transport, information and communications technology, tourism, professional services and distribution.

The council acknowledged that Partner States have the sovereign responsibility to enforce immigration, licensing, tax and other applicable laws, but said such requirements must not become unnecessary obstacles to legitimate cross-border business.

“Compliance requirements should be applied fairly and transparently and should not create unnecessary barriers for legitimate EAC service suppliers,” EABC said.

The council urged Partner States to support the registration and formalisation of informal service providers, fast-track implementation of outstanding commitments on trade in services and complete the scheduling of pending commitments.

It also called on service suppliers to register where required, maintain valid licences and tax documents, comply with host-country laws and report cases of harassment through appropriate channels.

EABC said service providers from all Partner States play a role in driving regional trade, employment and investment, making their ability to operate across borders a key component of the Common Market.

“Facilitating their legitimate operations is central to the objectives of the EAC Common Market,” the council said.

EABC Executive Director Ahmed Farah said the organisation would work with the EAC Secretariat, Partner States and national private-sector associations to improve compliance guidance and facilitate legitimate cross-border services trade.

The council said it would also support efforts to protect legitimate service suppliers and accelerate implementation of regional commitments.

It further called for a zero-tolerance approach to xenophobia and discrimination as the EAC works towards a more integrated regional services market.