President Mwai Kibaki accompanied by Rwandese Prime Minister Rt. Hon Bernard Makuza (right) inspects a guard of honour on arrival at Kayibanda International Airport, Kigali to attend the 9th ordinary summit of the EAC Heads of State. East African states plan to reinforce their defences this year as a foundation for a future political federation. File
East African states plan to reinforce their defences this year as a foundation for a future political federation following the launch of a common market.
Insecurity has fast become a threat to regional economies with lawlessness in neighbouring countries such as Somalia raising concern even within the global community.
But in a bid to guard against such set backs to regional economies, EAC secretary-general Mr Juma Mwapachu said defence ties among the five-member nations would be deepened next month by upgrading an existing MOU on defence matters into a legally-binding protocol.
He said the planned establishment of a joint regional defence force would also boosts the prospects of the realisation of an EAC political federation.
“Defence is a major mover of any political unity,” Mr Mwapachu said, noting that member states would build on the efforts already undertaken in the previous year to foster cooperation, such as the joint military exercises.
The official said the revival of talks for new trade with Europe would also be prioritised to this year to cushion regional economies from disruptions. “The EAC will be seeking to revive the stalled EPA negotiations with the European Union this year,” Mr Mwapachu said in a statement on Monday as he outlined the bloc’s agenda for 2010.
Besides, the EAC members are also eyeing progress in ongoing deliberations that could see the birth of Africa’s largest free trade area (FTA) consisting of three economic blocs- the Southern Africa Development Community (Sadc), the Common Market for Eastern and Southern Africa (Comesa) and the EAC itself.
Trade and development ties between the African, Caribbean and Pacific (ACP) countries, including the EAC members, and the EU have for nearly 30 years been based on a non-reciprocal trade preferences system which granted nearly all products originating from the ACP states duty free access to the European market.
A series of appraisals however revealed that the arrangement did not yield much results for the ACP countries due a narrow export product range and other challenges, promoting the ongoing talks as the two blocs seek to find a solution through an alternative trade agreement.
Though the EPA talks have carried on for almost two years, the EAC members and the EU are yet to find a common ground following disagreements over development assistance.
“There are a few issues around development assistance packages and the most favoured nation (MFN) clause that are still holding back consensus but we are hoping that they’ll soon be ironed out,” Mr David Nalo, the permanent secretary at the EAC Affairs ministry said.
EAC members stand to lose significant tariff revenue because some of the tariffs currently charged on imports from Europe would either be reduced or dropped altogether and financial support to offset this is essential.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
