EAC members urged to unlock services trade
DAR ES SALAAM: THE East African Community (EAC) is losing opportunities to expand regional trade, employment and investment as regulatory and administrative barriers delay the liberalisation of services, the East African Business Council (EABC) has warned.
Services account for about 46 per cent of the regional bloc’s Gross Domestic Product (GDP), more than 30 per cent of formal employment and about 24 per cent of intraEAC trade, making the sector critical to deeper regional integration.
In a statement released recently, EABC Executive Director Mr Ahmed Farah urged Partner States to accelerate implementation of commitments under the EAC Common Market Protocol and strengthen protection for service providers operating across borders.
“Services are the backbone of regional integration, supporting finance, transport, ICT, tourism, professional services and distribution,” Mr Farah said.
Under Annex V of the Common Market Protocol, adopted in 2010, Partner States committed to the free movement of services and identified seven priority sectors: business, communications, distribution, education, financial, tourism and travel and transport services.
However, Mr Farah said several deadlines for removing restrictions, including those set for 2010, 2013 and 2015, had passed without full implementation.
He said immigration, licensing, taxation and other regulatory requirements remained the responsibility of individual Partner States, but such measures should not unnecessarily restrict legitimate regional service providers.
“Compliance with national laws is important, but regulatory requirements should be applied fairly and transparently and should not create unnecessary barriers for legitimate East African service suppliers,” he said.
Mr Farah urged Partner States to support the registration and formalisation of informal service suppliers and fast-track outstanding commitments on trade in services, including completing pending schedules of commitments.
He also called on service providers to register where required, maintain valid licences and tax documentation, comply with host-country laws and report cases of harassment through appropriate channels.
“Service suppliers from every Partner State operate across borders and contribute to intra-EAC services trade, employment and investment,” Mr Farah said.
He said facilitating their legitimate operations was central to the objectives of the EAC Common Market, while urging a zero-tolerance approach to xenophobia and discrimination.
The EABC said it would work with the EAC Secretariat, Partner States and national private-sector associations to provide clearer compliance guidance, facilitate legitimate cross-border services and strengthen protection for service suppliers.
Mr Farah urged governments to accelerate implementation of existing commitments to create a more integrated regional services market and unlock greater opportunities for businesses, employment and investment.
