Small-scale miners pan out diamonds at Ng'wanangwa village in Misungwi District, Mwanza Region. The signing of the East African Common Market Protocol yesterday will allow citizens of EAC partner states to work in member countries provided they follow their laws.
By Ray Naluyaga
Heads of State of the five East African Community partners yesterday signed the protocol on the establishment of the East African Common Market.
The act guarantees residents from Tanzania, Uganda, Kenya, Rwanda and Burundi the right to work and live in any of the partner states subject to limitations imposed by the host on grounds of public policy, security and health.
In accordance with the provisions of Articles 76 and 104 of the Treaty, the protocol provides for free movement of goods, persons and labour; the right of establishment and residence, apart from the free movement of services and capital.
Upon signing, the partner states shall effect reciprocal opening of border posts, keeping them opened and manned for 24 hours.
According to Article 8 of the protocol, the partner states shall establish a common system of issuing national identification documents for their nationals. These shall be the basis for identifying the citizens of the partner states within the EAC.
A partner state citizen who wishes to travel to another partner state shall use a valid common standard travel document.
By the stroke of a pen, the partner states will guarantee the free movement of workers who are citizens of the other partner states within their territories.
Free movement of workers shall entitle them to apply for employment and accept offers of employment actually made; move freely within the territories of the partner states for the purpose of employment and stay in the territory of a partner state for purposes of employment.
The said worker's spouse and children are also entitled to similar rights, including the right to engage in any economic activity as a self-employed person.
The worker shall be subjected to national laws and administrative procedures governing the employment of workers of that partner state, according to the protocol.
Through it, the partner states undertake to harmonise their national labour policies, laws and programmes to facilitate the free movement of labour within the EAC.
The right of establishment shall entitle a national of another partner state to take up and pursue economic activities as a self-employed person; and set up and manage economic undertakings.
The partner states shall remove the administrative procedures and practices, resulting from national laws or agreements previously concluded between the partner states that form an obstacle to the right of establishment.
A self-employed person, who is in the territory of another partner state, is also entitled to join a social security scheme of that partner state in accordance with the national laws of that country.
By signing the protocol the partner states guarantee the right of residence to the citizens of the other partner states who have been admitted in their territories.
The right of residence guaranteed shall apply to the spouse, child and dependant of a worker or self-employed person entitled to the rights provided.
The partner states shall issue residence permits to citizens of other partner states who qualify in accordance with the provisions of the protocol.
Access to and use of land and premises shall be governed by the national policies and laws of the partner states, according to the protocol.
It guarantees the free movement of services supplied by nationals of partner states and that of service suppliers who are nationals of the partner states within the EAC.
Free movement of services shall cover the supply of services from the territory of a partner state to that of another and in the territory of a partner state to service consumers from another partner state.
It also covers service suppliers of a partner state, through commercial presence of the service supplier in the territory of another partner state as well as by the presence of a service supplier who is a citizen of a partner state in the territory of another partner state.
"Each partner state shall promptly notify the council of all measures of general application affecting the free movement of services at the entry into force of this protocol," it says.
The partner states may regulate their service sectors in accordance with their national policy objectives provided that the measures do not constitute barriers to trade in services and are consistent with the provisions of this protocol.
Article 22 which provides for security exceptions on Trade in Services asserts that no partner state shall be required to furnish any information which it considers contrary to its essential security interests.
But the protocol does not prevent any partner state from taking any action which it considers necessary for the protection of its essential security interests.
Upon the protocol coming into force, the partner states shall remove any restrictions between them on the movement of capital belonging to persons resident in the EAC.
The partner states shall also remove any existing restrictions, but shall not introduce new ones on the movement of capital and payments connected with such movement and on current payments and transfers, or apply more restrictive regulations.
The free movement of capital may be restricted upon justified reasons related to prudential supervision; public policy considerations; money laundering; and financial sanctions agreed upon by the partner states.
Where a partner state adopts a restriction based on the reasons above, it shall inform the secretariat and the other partner states and furnish proof that the action taken was appropriate, reasonable and justified.
Member states shall within two years after coming into force of this protocol take measures to secure the protection of cross border investments within the EAC.
For the proper functioning of the common market, the partner states shall co-ordinate and harmonize their economic and monetary policies to ensure macro-economic stability, sustained economic growth and balanced development.
For the proper functioning of the Common Market the partner states, through the protocol, undertake to co-ordinate and harmonize their financial sector policies and regulatory frameworks to ensure the efficiency and stability of their financial systems as well as the smooth operations of the payment systems.
The partner states also undertake to progressively harmonize their tax policies and laws on domestic taxes to remove tax distortions in order to facilitate the free movement of goods, services and capital as well as promote investment within the EAC.
An EAC partner shall not discriminate against suppliers, products or services originating from other partner states, for purposes of achieving the benefits of free competition in the field of public procurement.
The partner states agree in the protocol to apply safety measures in the event of a serious injury or threat of serious injury occurring to the economy of a partner state, following the application of any relevant provision of this protocol.
