EAC SET TO LAUNCH COMMON MARKET PROTOCOL SCORECARD 2016

 

East African Community

PRESS RELEASE

EAC SET TO LAUNCH COMMON MARKET PROTOCOL SCORECARD 2016

East African Community, Headquarters, Arusha, 26 October, 2016: The second East African Community Common Market Scorecard 2016 (CMS 2016) which evaluates implementation of the EAC Common Market Protocol, will be launched  on October  27, 2016 in Kampala, Uganda. The Scorecard has been developed by the EAC Secretariat with the support of the  World Bank Group and Trade Mark East Africa.

The main purpose of the scorecard is to measure compliance of selected commitments to the Protocol – and in so doing, facilitate policy dialogue by identifying good practices, track reforms, facilitate sharing of reform experiences, and enable research and analysis on the links between reforms in measured areas and desired outcomes.

The second publication of the scorecard (CMS 2016) brings to light, in respect of the recommendations of the 2014 edition, reforms undertaken by each Partner State and establishes whether Partner States have enacted new restrictions or nonconforming measures since September 30, 2013.

Fundamentals behind non-compliance with conformity measures are identified and appropriate measures recommended for spurring the region’s move towards full implementation of the focal commitments in the four freedoms in the Common Market Protocol, namely: the free movement of goods; labour; services; and capital, which significantly boost trade and investments and make the region more productive and prosperous.

The scorecard 2016 focuses on the following three freedoms that were also the basis of the CMS2014 assessment:

·         Capital (focusing on 20 operations)

·         Services (focusing on four key service sectors - Professional Services (Architecture, Engineering, Accounting and Legal services); Transport (Road and Air); Telecommunications and Distribution Services.

·         Goods (focusing on NTBs)

Article  50 of the EAC Common Market Protocol requires the development of the a framework for monitoring and evaluating the implementation of the Protocol. The Protocol was signed by the regional Leaders on November 20, 2009  and came into force on July 1, 2010.

Notes to Editors

The EAC launched the first Common Market Scorecard in 2014 (CMS 2014). The CMS 2014 assessed the progress towards the development of a Common Market in capital, services, and goods across the five EAC Partner States of the EAC.

The CMS 2014 found several bottlenecks to the Common Market in the laws and regulations of EAC Partner States: for example regional trade in goods constrained by no less than 51 non-tariff barriers; at least 63 non-conforming measures slow down trade in important services such as professional services, distribution, transport and communication; and only two (2) of the 20 operations that facilitate deeper financial integration are free of restrictions in all of the EAC Partner States.

EAC Partner States therefore continue to operate as separate and distinct markets, keeping their economies small and disconnected. The EAC Council of Ministers adopted the findings of CMS 2014 and the proposed roadmap for implementation of various proposed recommendations.