EAC trade: Ruto pushes for single tariff, uniform custom rules

President William Ruto has renewed a push for countries in the East African Community (EAC) to realise the dream of a single tariff and uniform custom rules to boost trade and economic ties.

Addressing the Third Sitting of the East African Legislative Assembly (EALA) on Tuesday, Ruto exuded confidence that the creation of uniform custom rules and procedures will help eliminate trade barriers.

"Our customs union is on the move, with this assembly creating legislative frameworks to establish a common external tariff, uniform customs rules and procedures, and common rules of origin," he said at the Parliament Buildings in Nairobi.

He noted that achieving a unified trade partnership is possible because the EALA has provided the framework to conclude the COMESA-EAC-SADC tripartite free trade area, the signing of the agreement establishing the Africa Continental Free Trade Area (AfCFTA), and the adoption of the EAC e-commerce strategy.

President William Ruto inspects a guard of honour ahead of the Third Sitting of the East African Legislative Assembly (EALA) at the Parliament Buildings in Nairobi. (Photo: PCS)

Ruto highlighted the turn-around time for trucks, which he said has reduced significantly along all transport corridors, alongside the clearance time at border crossings which he reported has reduced by 84 per cent, making trade more efficient in the region.

"This is why intra-EAC trade is the highest of the trading blocks in our continent at 25 per cent. With a collective GDP of $350 billion, a population of 350 million and an area of 5 million square kilometres, the EAC member states are an attractive investment destination," he said.

He added that the EAC's total trade in 2022 stood at $74 billion and that in the same year, Africa accounted for 44 per cent and 25 per cent of the EAC's total exports and imports, respectively."

The President further praised the assembly for enabling the community to implement the common market protocol which guarantees the free cross-border movement of persons, labour, services and capital.

It also guarantees the right of establishment and residence, through standard identification systems, harmonised travel documents, mutual recognition of qualifications, and harmonised labour and social policy frameworks.

Ruto now wants the assembly to actualise the East African Monetary Union by 2031 by providing the necessary framework to anchor the full implementation of the customs union and common market protocols, especially through the establishment of vital organisations such as the monetary institute, bureau of statistics, financial services, and surveillance and enforcement commissions.

"The assembly should facilitate the convergence of criteria for macroeconomic governance, and provide for the harmonisation of both fiscal and monetary policies," he said.

Ruto praised East Africa as a beacon of unity, stability, security and progress, and is "the beating heart of Pan-African integration and the engine of the AfCFTA, as well as the epicentre of Africa's move to position itself as the next frontier of global investment and industrial transformation".

He observed that the region has grown tremendously, from three founding partner states to eight ember countries, connecting the Indian Ocean to the Atlantic Ocean, serving 310 million citizens and forging a major market. Somalia is the latest country to join the community.