Protocol on the E.A.C common market

8/9/2019 Protocol on the E.A.C common market

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EAST AFRICAN COMMUNI TY

PROTOCOLONTHEESTABLISHMENTOFTHEEAST

AFRICANCOMMUNITYCOMMONMARKET


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ARRANGEMENTOFARTICLES

PREAMBLE

ARTICLE TITLE

PART A: INTERPRETATION

ARTICLE 1: Interpretation

PART B: ESTABLISHMENT OF THE EAST

AFRICAN COMMUNITY COMMON

MARKET

ARTICLE 2: Establishment of the East African

Community Common Market

ARTICLE 3: Principles of the Common Market

ARTICLE 4: Objectives of the Common Market

ARTICLE 5: Scope of Co-operation in the Common Market

PART C: FREE MOVEMENT OF GOODS

ARTICLE 6: Free Movement of Goods


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PART D: FREE MOVEMENT OF PERSONS AND

LABOUR

ARTICLE 7: Free Movement of Persons

ARTICLE 8: Standard Identification System

ARTICLE 9: Travel Documents

ARTICLE 10: Free Movement of Workers

ARTICLE 11: Harmonisation and Mutual Recognition of

Academic and Professional Qualifications

ARTICLE 12: Harmonisation of Labour Policies, Laws and

Programmes

PART E: RIGHTS OF ESTABLISHMENT AND

RESIDENCE

ARTICLE 13: Right of Establishment

ARTICLE 14: Right of Residence

ARTICLE 15: Access to and Use of Land and Premises


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PART F: FREE MOVEMENT OF SERVICES

ARTICLE 16: Free Movement of Services

ARTICLE 17: National Treatment

ARTICLE 18: Most Favoured Nation Treatment

ARTICLE 19: Notification

ARTICLE 20: Domestic Regulation

ARTICLE 21: General Exceptions to Trade in Services

ARTICLE 22: Security Exceptions on Trade in Services

ARTICLE 23: Implementation of the Free Movement of

Services

PART G: FREE MOVEMENT OF CAPITAL

ARTICLE 24: Elimination of Restrictions on the Free

Movement of Capital

ARTICLE 25: General Exceptions

ARTICLE 26: Safeguard Measures

ARTICLE 27: Conditions for Application of the Safeguard

Measures

ARTICLE 28: Capital and Related Payments and Transfers


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PART H: OTHER AREAS OF CO-OPERATION IN

THE COMMON MARKET

ARTICLE 29: Protection of Cross-Border Investments

ARTICLE 30: Economic and Monetary Policy Co-ordination

ARTICLE 31: Financial Sector Policy Co-ordination

ARTICLE 32: Harmonisation of Tax Policies and Laws

ARTICLE 33: Prohibited Business Practices

ARTICLE 34: Prohibited Subsidies

ARTICLE 35: Public Procurement

ARTICLE 36: Consumer Protection

ARTICLE 37: Co-ordination of Trade Relations

ARTICLE 38: Co-ordination of Transport Policies

ARTICLE 39: Harmonisation of Social Policies

ARTICLE 40 : Environmental Management

ARTICLE 41: Cooperation in Statistics

ARTICLE 42: Research and Technological Development

ARTICLE 43: Co-operation inIntellectual Property Rights

ARTICLE 44: Co-operation in Industrial Development

ARTICLE 45: Co-operation in Agriculture and Food Security


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PART I: GENERAL PROVISIONS

ARTICLE 46: Institutional Framework

ARTICLE 47: Approximation and Harmonisation of Policies,

Laws and Systems

ARTICLE 48: Safeguard Measures

ARTICLE 49: Measures to Address Imbalances

ARTICLE 50: Monitoring and Evaluation of Implementation of

the Common Market

ARTICLE 51: Regulations, Directives and Decisions

ARTICLE 52: Annexes

ARTICLE 53: Amendment of the Protocol

ARTICLE 54: Settlement of Disputes

ARTICLE 55: Entry into Force

ARTICLE 56: Depository and Registration


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PURSUANT TO THE PROVISIONS OF ARTICLES 76 AND 104 OF THE

TREATYFORTHEESTABLISHMENTOFTHEEASTAFRICANCOMMUNITY,

THE PROVISIONS FOR THE ESTABLISHMENT OF THE EAST AFRICAN

COMMUNITYCOMMONMARKETAREHEREBYSETFORTH:

PREAMBLE

WHEREASThe

United

Republic

of

Tanzania,

the

Republic

of

Burundi,

the

RepublicofKenya, theRepublicofRwandaand theRepublicofUganda

(hereinafterreferredtoasthePartnerStates),arePartiestotheTreaty

fortheEstablishmentoftheEastAfricanCommunity(hereinafterreferred

toastheTreaty);

AND WHEREAS by the provisions of paragraph 1 of Article 151 of the

Treaty, thePartnerStatesundertook toconclude suchProtocolsasmay

be necessary in each area of cooperation, which shall spell out the

objectivesand

scope

of,

and

institutional

mechanisms

for

co

operation

andintegration;

ANDWHEREAS:

(a) undertheprovisionsofparagraph2ofArticle2 andparagraph2of

Article 5oftheTreaty,thePartnerStatesundertookto,inter alia,

establish among themselves a CommonMarket, as a transitional

stageto,andanintegralpartoftheCommunity;

(b) undertheprovisionsofparagraph2ofArticle76oftheTreaty,the

Partner States have determined that the establishment of a

CommonMarketshallbeprogressive;

(c) undertheprovisionsofparagraph4ofArticle76oftheTreaty,the

Partner States agreed to conclude the Protocol on the

establishmentof aCommonMarket;

RECALLING thedecisionof the11th

Meetingof theCouncil to conclude

oneprotocolcoveringtheprovisionsofArticles76and104oftheTreaty;


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NOTING that thePartnerStatesconcluded theProtocolEstablishing the

EastAfricanCommunityCustomsUnion;

CONSIDERINGthattheobjectiveofestablishingaCommonMarketisthe

realisationof

accelerated

economic

growth

and

development

through

the

attainmentofthefreemovementofgoods,persons,labour,therightsof

establishmentandresidence,thefreemovementofservicesandcapital;

NOTING the importanceof thedevelopmentof thesocialdimensions in

the Community and the desire to ensure economic and social

developmentinpromotingemploymentandimprovingstandardsofliving

andworkingconditionswithintheCommunity;

CONSCIOUSof

their

individual

obligations

and

commitments

under

the

Treatyandunderotherregionalandinternationalagreements;

RECALLING the objectives of the Community to develop policies and

programmes aimed atwidening and deepening cooperation among the

PartnerStatesintheeconomicandsocialfields;

AGREEASFOLLOWS:

PART AINTERPRETATION

ARTICLE 1Interpretation

InthisProtocol,exceptwherethecontextotherwiserequires:


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childmeans a son or daughter of aworker or self employed person

undertheageofeighteenyears,whoisacitizen;

citizenmeansanationalofaPartnerState recognizedunder the laws

governingcitizenship

in

the

Partner

State;

commonmarketmeansthecommonmarketasdefinedunderArticle1

oftheTreaty;

common standard travel document means a passport or any other

validtraveldocumentestablishingtheidentityoftheholder,issuedbyor

onbehalfofthePartnerStateofwhichheorsheisacitizenandshallalso

includeinterstatepasses;

CommunitymeanstheEastAfricanCommunityestablishedbyArticle2

oftheTreaty;

companymeansabusinessentityincorporatedasacompanyunderthe

lawsofaPartnerState;

cooperation includes the undertaking by the Partner States in

common,

jointly

or

in

concert,

of

activities

undertaken

in

furtherance

of

the objectives of the Community, as provided for under the Treaty or

underanycontractoragreementmade thereunderor in relation to the

objectivesoftheCommunity;

Councilmeans theCouncilofMinistersof theCommunityestablished

byArticle9oftheTreaty;

Customs Union means the East African Community Customs Union

establishedby

Article

2of

the

Protocol

on

the

Establishment

of

the

East

AfricanCommunityCustomsUnion;

dependantmeansa sonordaughterof aworkerora selfemployed

person who has attained the age of eighteen years, the mother, the

father,asisterorabrotherofaworkeroraselfemployedpersonwhois

wholly dependent on the worker or self employed person, who is a

citizen;

economicactivity

means

any

legitimate

income

generating

activity;


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environmentmeansthenaturalresourcesofair,water,soil,faunaand

flora, ecosystems, land, the manmade physical features, cultural

heritage, the characteristic aspects of the landscape and the socio

economicinteraction

between

the

said

factors

and

any

living

and

non

livingorganisms;

firm means a business entity other than a company, registered in

accordancewiththelawsgoverningregistrationofsuchbusinessentityin

aPartnerState;

labourincludesaworkerandaselfemployedperson;

nationalof

aPartner

State

means

anatural

or

legal

person

who

is

a

nationalinaccordancewiththelawsofthePartnerState;

PartnerStatesmeans theRepublicofBurundi, theRepublicofKenya,

theRepublicofRwanda,TheUnitedRepublicofTanzania,theRepublicof

Uganda,andanyother countrygrantedmembership to theCommunity

underArticle3oftheTreaty;

piracy

means

infringement

of

intellectual

property

rights;

publicsecuritymeans the functionofgovernmentswhichensures the

protectionof citizensandothernationals,organizationsand institutions

against threats to their wellbeing and to the prosperity of their

communities;

publicservicemeansgovernmentministries,governmentdepartments

and government agencies providing services to the public in a Partner

State;

selfemployedpersonmeansapersonengagedinaneconomicactivity

notunderany contractof employmentor supervisionandwhoearns a

livingthroughthisactivity;

spouse means a husband or a wife of a worker or a self employed

person, ina legally recognisedmarriage inaccordancewith thenational

lawsofaPartnerState,whoisacitizen;


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thirdpartiesmeansforeigncountriesorpersons;

Treaty means the Treaty for the Establishment of the East African

Communityandanyannexesandprotocolsthereto;

vulnerablegroup includesgroupsofpersonswhoaremarginalisedon

groundsofstigmatisedillness,gender,ethnicity,disabilityorage;

worker means a person who performs services for and under the

directionofanotherpersoninreturnforremuneration.

PART BESTABLISHMENT OF THE EAST AFRICAN

COMMUNITY COMMON MARKET

ARTICLE 2Establishment of the East African Community Common

Market

1. Inorder

to

promote

the

objectives

of

the

Community

provided

for

underArticle5oftheTreatyandinaccordancewiththeprovisions

of this Protocol, the Partner States hereby establish a common

marketasanintegralpartoftheCommunity.

2. TheCommonMarketestablishedunderparagraph1,shallbecalled

theEastAfricanCommunityCommonMarket(hereinafterreferred

toastheCommonMarket).

3. The Common Market shall be managed in accordance with therelevantlawsoftheCommunity.

4. In accordance with the provisions of Articles 76 and 104 of the

Treaty,thisProtocolprovidesforthefollowing:

(a) thefreemovementofgoods;

(b) thefreemovementofpersons;

(c) thefree

movement

of

labour;


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(d) therightofestablishment;

(e) therightofresidence;

(f) thefreemovementofservices;and

(g) thefreemovementofcapital.

5. The establishment of the CommonMarket shall, notwithstanding

paragraph1,beprogressive.

ARTICLE 3Principles of the Common Market

1. The Common Market shall be guided by the fundamental and

operationalprinciplesof theCommunityasenshrined inArticles6

and7oftheTreaty.

2. Withoutprejudicetoparagraph1,thePartnerStatesundertaketo:

(a) observe the principle of nondiscrimination of nationals of

otherPartnerStatesongroundsofnationality;

(b) accord treatment to nationals of other Partner States, not

lessfavourable

than

the

treatment

accorded

to

third

parties;

(c) ensure transparency in matters concerning the other

PartnerStates;and

(d) shareinformationfortheimplementationof thisProtocol.

ARTICLE 4Objectives of the Common Market

1. The overall objective of the Common Market is to widen and

deepencooperationamongthePartnerStatesintheeconomicand

socialfieldsforthebenefitofthePartnerStates.

2. ThespecificobjectivesoftheCommonMarketareto:

(a) accelerateeconomicgrowthanddevelopmentofthePartner

States through the attainment of the free movement of


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goods, persons and labour, the rights of establishment and

residenceandthefreemovementofservicesandcapital;

(b) strengthen,coordinate andregulatetheeconomicandtrade

relationsamong

the

Partner

States

in

order

to

promote

accelerated, harmonious and balanced development within

theCommunity;

(c) sustain theexpansionand integrationofeconomicactivities

withintheCommunity,thebenefitofwhichshallbeequitably

distributedamongthePartnerStates;

(d) promotecommonunderstandingandcooperationamongthe

nationalsof

the

Partner

States

for

their

economic

and

social

development; and

(e) enhance research and technological advancement to

accelerateeconomicandsocialdevelopment.

3. In order to realise and attain the objectives provided for in this

Article, the Partner States shall cooperate in, integrate and

harmonise

their

policies

in

areas

provided

for

in

this

Protocol

and

in

suchotherareasastheCouncilmaydetermine inordertoachieve

theobjectivesoftheCommonMarket.

ARTICLE 5Scope of Co-operation in the Common Market

1. TheprovisionsofthisProtocolshallapplytoanyactivityundertaken

incooperationbythePartnerStatestoachievethefreemovement

ofgoods,

persons,

labour,

services

and

capital

and

to

ensure

the

enjoyment of the rights of establishment and residence of their

nationalswithintheCommunity.

2. For the purposesof paragraph 1 andpursuant toparagraph4 of

Article2ofthisProtocol,thePartnerStatesagreeto:


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(a) eliminate tariff, nontariff and technical barriers to trade;harmoniseandmutuallyrecognize standardsandimplement

acommontradepolicyfortheCommunity;

(b) easecross

border

movement

of

persons

and

eventually

adoptanintegratedbordermanagementsystem;

(c) remove restrictions on movement of labour, harmoniselabourpolicies,programs, legislation,socialservices,provide

for social securitybenefitsandestablishcommonstandards

and measures for association of workers and employers,

establish employment promotion centres and eventually

adoptacommon

employment

policy;

(d) remove restrictions on the right of establishment andresidence of nationals of other Partner States in their

territoryinaccordancewiththeprovisionsofthisProtocol;

(e) remove measures that restrict movement of services andservice

suppliers,

harmonise

standards

to

ensure

acceptabilityofservicestraded;and

(f) eliminate restrictions on free movement of capital; ensureconvertibility of currencies; promote investments in capital

markets(stockexchange)eventuallyleadingtoanintegrated

financialsystem.

3. ForthepurposesoffacilitatingtheimplementationoftheCommon

Market,thePartnerStatesfurtheragreeto:

(a) cooperatetoharmoniseandtomutuallyrecogniseacademic

andprofessionalqualifications;

(b) cooperatetoensureprotectionofcrossborderinvestments;


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(c) coordinate and harmonise their economic, monetary and

financialpolicies;

(d) cooperatetoensurefaircompetitionandpromoteconsumer

welfare;

(e) coordinate their trade relations to govern international

tradeandtraderelationsbetweentheCommunityandthird

parties;

(f) coordinate and harmonise their transport policies and

developtheirtransportinfrastructuremodes;

(g) coordinate

and

harmonise

their

social

policies;

(h) integrateenvironmentalandnatural resourcesmanagement

principlesinthe activitiesrelating to theCommonMarket;

(i) ensure the availability of relevant, timely and reliable

statisticaldataforpurposesoftheCommonMarket;

(j) promote

research

and

technological

development

within

the

Community;

(k) cooperate in the promotion and protection of intellectual

propertyrights;

(l) promote industrial development for the attainment of

sustainablegrowthanddevelopmentintheCommunity;and

(m) sustainablydevelop

and

promote

agriculture

and

ensure

food

securityintheCommunity.


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PART CFREE MOVEMENT OF GOODS

ARTICLE 6Free Movement of Goods

1. The freemovementofgoodsbetween thePartnerStates shallbe

governed by the Customs Law of the Community as specified in

Article39oftheProtocolontheEstablishmentoftheEastAfrican

CommunityCustomsUnion.

2. Inaddition

to

the

Customs

Law

of

the

Community,

the

free

movement

ofgoodsshallbegovernedby:

(a) the East African Community Protocol on Standardisation,

QualityAssurance,MetrologyandTesting;

(b) the East African Community Standardisation, Quality

Assurance,MetrologyandTestingAct,2006;

(c) theprovisions

of

this

Protocol;

(d) protocolsthatmaybeconcludedintheareasofcooperation

on sanitary and phytosanitary and technical barriers to

trade;and

(e) any other instruments relevant to the free movement of

goods.

PART DFREE MOVEMENT OF PERSONS AND LABOUR

ARTICLE 7Free Movement of Persons

1. The Partner States hereby guarantee the freemovement of persons

whoare

citizens

of

the

other

Partner

States,

within

their

territories.


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2. In accordancewith paragraph 1, each Partner State shall ensure

nondiscriminationofthe citizensoftheotherPartnerStatesbased

ontheirnationalitiesbyensuring:

(a) the entry of citizens of the other Partner States into the

territoryofthePartnerStatewithoutavisa;

(b) free movement of persons who are citizens of the other

PartnerStateswithintheterritoryofthePartnerState;

(c) that the citizensof theotherPartner Statesareallowed to

stayintheterritoryofthePartnerState;and

(d) that the citizensof theotherPartner States are allowed to

exittheterritoryofthePartnerStatewithoutrestrictions.

3. The Partner States shall, in accordance with their national laws,

guaranteetheprotectionofthecitizensoftheotherPartnerStates

whileintheirterritories.

4. The

free

movement

of

persons

shall

not

exempt

from

prosecution

orextradition,anationalofaPartnerStatewhocommitsacrimein

anotherPartnerState.

5. The free movement of persons shall be subject to limitations

imposed by the host Partner State on grounds of public policy,

public security or public health.

6. APartnerStateimposingalimitationunderparagraph5,shallnotify

theother

Partner

States

accordingly.

7. ThePartner States shall effect reciprocalopeningofborderposts

andkeepthepostsopenedandmannedfortwentyfourhours.

8. ThemovementofrefugeeswithintheCommunityshallbegoverned

bytherelevantinternationalconventions.


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9. The implementationof thisArticleshallbe inaccordancewith the

East African Community Common Market (Free Movement of

Persons)Regulations,specifiedinAnnexItothisProtocol.

ARTICLE 8Standard Identification System

The Partner States shall establish a common standard system of

issuing national identification documents to their nationalswhich

shallbe thebasis for identifying the citizensof thePartnerStates

withintheCommunity.

ARTICLE 9Travel Documents

1. AcitizenofaPartnerStatewhowishestotraveltoanotherPartner

Stateshalluseavalidcommonstandardtraveldocument.

2. The Partner Stateswhich have agreed to usemachine readable

andelectronicnational identitycardsas traveldocumentsmaydo

so.

3. The Partner Stateswhich have agreed to usemachine readable

andelectronicnational identitycardsshallworkoutmodalities for

theimplementationofparagraph2.

ARTICLE 10Free Movement of Workers

1. The Partner States hereby guarantee the free movement ofworkers,whoarecitizensof theotherPartnerStates,within their

territories.


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2. For the purposes of paragraph 1, the Partner States shall ensurenon discrimination of the workers of the other Partner States,

based on their nationalities, in relation to employment,

remunerationandotherconditionsofworkandemployment.

3. ForthepurposeofthisArticle,thefreemovementof workersshallentitleaworkerto:

(a) apply for employment and accept offers of employment

actuallymade;

(b) movefreelywithintheterritoriesofthePartnerStatesforthe

purposeofemployment;

(c) conclude contracts and take up employment in accordance

with thecontracts,national lawsandadministrativeactions,

withoutanydiscrimination;

(d) stay in the territory of a Partner State for the purpose of

employment in accordance with the national laws and

administrative procedures governing the employment of

workersof

that

Partner

State;

(e) enjoythefreedomofassociationandcollectivebargainingfor

better working conditions in accordance with the national

lawsofthehostPartnerState;and

(f) enjoytherightsandbenefitsofsocialsecurityasaccordedto

theworkersofthehostPartnerState.

4. Forthe

purposes

of

the

implementation

of

subparagraph

(f)

of

paragraph3,theCouncilshallissuedirectivesandmakeregulations

onsocialsecuritybenefits.

5. Aworkershallhavetherighttobeaccompaniedbyaspouseandachild,and:

(a) aspousewhoaccompaniestheworkershallbeentitledtobe

employed

as

a

worker

or

to

engage

in

any

economic

activity


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as a self employed person in the territory of that Partner

State;

(b) a childwhoaccompanies theworker shallbeentitled tobe

employedas

aworker

or

to

engage

in

any

economic

activity

as a self employed person in the territory of that Partner

Statesubjecttotheagelimitsunderthenationallawsofthat

PartnerState.

6. ThePartnerStatesshallfacilitatetheadmissionofadependantofaworkerinaccordancewiththenationallawsofthePartnerStates.

7.

The office responsible for employment in a Partner State shall

facilitateacitizenofanotherPartnerStatewhoseeksemployment

intheterritoryofthatPartnerStatetoreceivethesameassistance

aswouldbeaccordedtoacitizenofthatPartnerStatewhoseeks

employment.

8. The Partner States shall, within the framework of a jointprogramme, encourage the exchange of young workers amongst

thePartnerStates.

9. ThenationallawsandadministrativeproceduresofaPartnerStateshallnotapplywheretheprincipalaimoreffectistodenycitizens

ofotherPartnerStatestheemploymentthathasbeenoffered.

10. TheprovisionsofthisArticleshallnotapplytoemployment inthepublic service unless the national laws and regulations of a host

PartnerStatesopermit.

11. The free movement of workers shall be subject to limitationsimposed by the host Partner State on grounds of public policy,

publicsecurityorpublichealth.

12. A Partner State imposing a limitation under paragraph 11, shallnotifytheotherPartnerStatesaccordingly.


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13. The implementationof thisArticleshallbe inaccordancewith theEast African Community Common Market (Free Movement of

Workers)Regulations,specifiedinAnnexIItothisProtocol.

ARTICLE 11Harmonisation and Mutual Recognition of Academic

and Professional Qualifications

1. For the purpose of ensuring the free movement of labour, thePartnerStatesundertaketo:

(a) mutually recognise the academic and professional

qualificationsgranted,

experience

obtained,

requirements

met, licences or certifications granted, in other Partner

States;and

(b) harmonise their curricula, examinations, standards,

certification and accreditation of educational and training

institutions.

2. The implementation of this Article shall be in accordance with

Annexesto

be

concluded

by

the

Partner

States.

ARTICLE 12Harmonisation of Labour Policies, Laws and

Programmes

1. The Partner States undertake to harmonise their labour policies,national lawsandprogrammes to facilitate the freemovementof

labour

within

the

Community.

2. The Partner States undertake to review and harmonise theirnational social security policies, laws and systems to provide for

socialsecurity forselfemployedpersonswhoarecitizensofother

PartnerStates.

3. The implementation of this Article shall be in accordance withdirectivesandregulationsissuedbytheCouncil.


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PART ERIGHTS OF ESTABLISHMENT AND RESIDENCE

ARTICLE 13Right of Establishment

1. ThePartnerStatesherebyguarantee therightofestablishmentof

nationalsoftheotherPartnerStateswithintheirterritories.

2. For the purposes of paragraph 1, the Partner States shall ensure

non discrimination of the nationals of the other Partner States,

basedon

their

nationalities.

3. For the purposesofparagraph1, the right of establishment shall

entitle:

(a) anationalofaPartnerStateto:

(i) take up and pursue economic activities as a self

employedperson;and

(ii) setupandmanageeconomicundertakings,

inthe

territory

of

another

Partner

State;

(b) a selfemployed person who is in the territory of another

PartnerStatetojoinasocialsecurityschemeofthatPartner

State in accordancewith the national laws of that Partner

State.

4. Therightsapplicabletoaspouse,childanddependantofaworker

under

Article

10

of

this

Protocol

shall

apply

to

the

spouse,

child

and

dependantofaselfemployedperson.

5. ThePartnerStates shallensurethatallrestrictionsontherightof

establishmentbasedonthenationalityofcompanies,firmsandself

employedpersonsofthePartnerStatesareremoved, andshallnot

introduceanynewrestrictionsontherightofestablishmentintheir

territories,saveasotherwiseprovidedinthisProtocol.


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6. Companies and firms established in accordancewith the national

lawsof a Partner State andhaving their registeredoffice, central

administrationorprincipalplaceofbusinessandwhichundertake

substantial economic activities in the Partner State shall, for

purposesof

establishment,

be

accorded

non

discriminatory

treatmentinotherPartnerStates.

7. For the purposes of undertaking any economic activity in

accordancewith the provisions of this Article, the Partner States

shall mutually recognize the relevant experience obtained,

requirementsmet, licensesand certificatesgranted toa company

orfirmintheotherPartnerStates.

8. Theright

of

establishment

shall

be

subject

to

limitations

imposed

by

thehostPartnerStateongroundsofpublicpolicy,publicsecurityor

publichealth.


theotherPartnerStatesaccordingly.

10. TheprovisionsofthisProtocolshallnotprejudicetheapplicationof

national

laws

and

administrative

procedures

and

practices

providing for special treatment for third parties accorded by

individualPartnerStatesongroundsofpublicpolicy,publicsecurity

orpublichealth.

11. ForthepurposesofthisArticle,thePartnerStatesshall:

(a) remove the administrative procedures and practices,

resulting fromnational lawsor fromagreementspreviously

concludedbetween

the

Partner

States,

that

form

an

obstacle

totherightofestablishment;

(b) progressively remove any administrative procedures and

practicesresulting fromnational laws thatrestrict theright

ofestablishment,inrespectoftheconditionsfor:

(i) setting up agencies, branches or subsidiaries of

companiesorfirmsintheirterritories;and


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(ii) the entry of personnel of the companies or firms

registered inanotherPartnerState intomanagerialor

supervisory positions in agencies, branches or

subsidiariesinthat PartnerState;

(c) ensure that workers who are citizens of a Partner State

employed in the territory of another Partner State are

allowedtoremain inthatterritory forthepurposeoftaking

upeconomicactivitiesasselfemployedpersons,wherethey

satisfytheconditionswhichtheywouldberequiredtosatisfy

if they were entering that Partner State at the time when

theyintendedtotakeupsucheconomicactivities;

(d) coordinatesafeguard

measures,

which

in

the

interest

of

the

Community,arerequiredfortheprotectionofthecompanies

and firmstoensurethatthesafeguardmeasuresaresimilar

throughouttheCommunity;and

(e) satisfy themselves that the conditions of the right of

establishmentarenotdistortedbyprohibitedsubsidiesoraid

grantedbyaPartnerState tocompaniesor firmsownedby

the

nationals

of

the

Partner

State.


EastAfricanCommunityCommonMarket (RightofEstablishment)

Regulations,specifiedinAnnexIIItothisProtocol.

ARTICLE 14Right of Residence

1. ThePartnerStatesherebyguarantee the rightof residence to the

citizensoftheotherPartnerStateswhohavebeenadmittedintheir

territoriesinaccordancewithArticles10and13ofthisProtocol.

2. Therightofresidenceguaranteedunderparagraph1,shallapplyto

the spouse, child and a dependant of aworker or selfemployed


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person entitled to rights provided in Articles 10 and 13 of this

Protocol.

3. ThePartnerStatesshallissueresidencepermitstocitizensofother

PartnerStates

who

qualify

in

accordance

with

the

provisions

of

this

Article.

4. Therightofresidenceshallbesubjecttolimitationsimposedbythe

host Partner State on grounds of public policy, public security or

publichealth.


theotherPartnerStatesaccordingly.

6. The provisions of this Article shall not affect any provisions of

national laws,administrativeproceduresandpracticesofaPartner

State which would be more favourable to citizens of the other

PartnerStates.

7. ThePartnerStatesherebyagreethatmattersrelatingtopermanent

residenceshallbegovernedbythenationalpoliciesandlawsofthe

Partner

States.


East African Community Common Market (Right of Residence)

Regulations,specifiedinAnnexIVtothisProtocol.

ARTICLE 15Access to and Use of Land and Premises

1. ThePartnerStatesherebyagreethataccesstoanduseoflandand

premisesshallbegovernedbythenationalpoliciesandlawsofthe

PartnerStates.


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2. TherightsprovidedunderArticles13and14inasfarastheyrelate

toaccess toanduseof landandpremises shallbesubject to this

Article.

PART FFREE MOVEMENT OF SERVICES

ARTICLE 16Free Movement of Services

1. ThePartnerStatesherebyguaranteethefreemovementofservices

suppliedby

nationals

of

Partner

States

and

the

free

movement

of

servicesupplierswhoarenationalsofthePartnerStateswithinthe

Community.

2. Thefreemovementofservicesshallcoverthesupplyofservices:

(a) from the territory of a Partner State into the territory of

anotherPartnerState;

(b) intheterritoryofaPartnerStatetoserviceconsumersfromanotherPartnerState;

(c) byaservicesupplierofaPartnerState,throughcommercial

presence of the service supplier in the territory of another

PartnerState;and

(d) by the presenceof a service supplier,who is a citizen of a

PartnerState,

in

the

territory

of

another

Partner

State.

3. In fulfillingtheirobligationsandcommitmentsunderthisPart,the

PartnerStatesshalltakesuchmeasurestoensuretheobservanceof

themeasuresby localgovernmentsand localauthoritiesandnon

governmentalbodieswithinthePartnerStates.

4. ThemeasurestobetakenbythePartnerStatesunderparagraph3

includeanylawsandadministrativeactionstakenby:


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(a) nationalgovernments,localgovernmentsorlocalauthorities;

and

(b) nongovernmental bodies in the exercise of powers

delegatedby

national

governments,

local

governments

or

localauthorities.

5. For the purposes of paragraph 1, the Partner States shall

progressively remove existing restrictions and shall not introduce

any new restrictions on the provision of services in the Partner

States, by nationals of other Partner States except as otherwise

providedinthisProtocol.

6.

Withoutprejudice

to

any

other

provisions

of

this

Protocol,

aperson

providingaservicemay,inordertoprovidetheservice,temporarily

engage in activities related to the service in the Partner State,

where theservice is tobesupplied,under thesameconditionsas

areapplicabletothenationalsofthePartnerState.

7. ForthepurposesofthisPartservicesincludes:

(a) services

in

any

sector

except

services

supplied

in

the

exerciseofgovernmentalauthoritywhichare notprovided

on a commercial basis or in competitionwith one ormore

servicesuppliers;

(b) servicesnormallyprovidedforremuneration,insofarasthey

arenotgovernedbytheprovisionsrelatingtofreemovement

ofgoods,capitalandpersons.

ARTICLE 17National Treatment

1. EachPartnerStateshallaccordtoservicesandservicesuppliersof

other Partner States, treatment not less favourable than that

accorded to similar services and service suppliers of the Partner

State.


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2. Forthepurposesoffulfillingtherequirementofparagraph1,each

PartnerStatemayaccordtoservicesandservicesuppliersofother

Partner States, either formally identical treatment or formally

differenttreatment

to

that

it

accords

to

like

services

and

service

suppliersofthePartnerState.

3. Formally identical or formally different treatment shall be

considered to be less favourable if it modifies the conditions of

competitioninfavourofservicesorservicesuppliersofthePartner

State compared to like services or service suppliers of the other

PartnerStates.

ARTICLE 18Most Favoured Nation Treatment

Each Partner State shall upon the coming into force of this Protocol,

accord unconditionally, to services and service suppliers of the other

PartnerStates, treatmentno less favourable than that itaccords to like

servicesandservicesuppliersofotherPartnerStatesoranythirdpartyor

acustomsterritory.

ARTICLE 19Notification

1. EachPartnerStateshallpromptlynotifytheCouncilofallmeasures

of general application affecting the freemovement of services at

theentryintoforceofthisProtocol.

2. The Partner States shall notify the Council of any international

agreementspertaining

to

or

affecting

trade

in

services

with

third

partiesthattheyaresignatoryto,priortoandaftertheentry into

forceofthisProtocol.

3. WhereaPartnerStatesubmitsanotification to theCouncilunder

paragraph 2, the Secretariat shall transmit a copy of that

notificationtotheotherPartnerStates.


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4. EachPartnerStateshall,promptlyandatleastannually,informthe

Council of the introduction of any new national laws or

administrative guidelines, or any changes to existing laws or

administrativeguidelineswhichaffecttradeinservicesprovidedfor

inthis

Protocol.

5. Each Partner State shall respond promptly to any request by

another Partner State for specific information on any of its

measuresofgeneralapplicationorinternationalagreements.

6. TheCouncilmaymakedecisionson themeasuresor international

agreementsreferredtointhisArticle.

ARTICLE 20Domestic Regulation

1. ThePartnerStatesmayregulatetheirservicessectorsinaccordance

withtheirnationalpolicyobjectivesprovidedthatthemeasuresare

consistentwiththeprovisionsofthisProtocolanddonotconstitute

barrierstotradeinservices.

2. ThePartner

States

shall

ensure

that

all

measures

of

general

application affecting trade in services are administered in a

reasonable,objectiveandimpartialmanner.

ARTICLE 21General Exceptions to Trade in Services


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1. Subject to the requirement that measures are not applied in a

manner which would constitute a means of arbitrary or

unjustifiable discrimination between Partner States where like

conditions prevail, or a disguised restriction on trade in services,

nothingin

this

Part

shall

be

construed

to

prevent

the

adoption

or

enforcementbyanyPartnerStateofmeasures:

(a) necessary to protect public morals or to maintain public

order;

(b) necessarytoprotecthuman,animalorplantlifeorhealth;

(c) necessary to secure compliance with laws or regulations

whichare

not

inconsistent

with

the

provisions

of

this

Part

includingthoserelatingto:

(i) thepreventionofdeceptiveand fraudulentpractices

orwhichdealwiththeeffectsofadefaultonservices

contracts;

(ii) theprotectionoftheprivacyofindividualsinrelation

to

the

processing

and

dissemination

of

personal

data

and the protection of confidentiality of individual

recordsandaccounts;and

(iii) safety;

(d) inconsistentwithArticle17ofthisProtocol,providedthatthe

differenceintreatmentisaimedatensuringtheequitableor

effectiveimpositionorcollectionofdirecttaxesinrespectof

servicesor

service

suppliers

of

other

Partner

States;

or

(e) inconsistentwithArticle18ofthisProtocol,providedthatthe

difference intreatment istheresultofanagreementonthe

avoidanceofdoubletaxationorprovisionsontheavoidance

of double taxation in any other international agreement or

arrangementbywhichthePartnerStateisbound.

2. Pursuant to subparagraph (d) of paragraph 1, measures that are

aimedat

ensuring

the

equitable

or

effective

imposition

or

collection


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ofdirecttaxes includemeasurestakenbyaPartnerStateunder its

taxationsystemwhich:

(a) apply to nonresident service suppliers in recognition of the

factthat

the

tax

obligation

of

non

residents

is

determined

with

respecttotaxable itemssourcedorlocatedintheterritoryof

thePartnerStates;

(b) apply to nonresidents in order to ensure the imposition or

collectionoftaxesintheterritoryofthePartnerStates;

(c) apply to nonresidents or residents in order to prevent the

avoidanceorevasionoftaxes,includingcompliancemeasures;

(d) apply to consumers of services supplied in or from the

territory of another Partner State in order to ensure the

impositionor collectionof taxeson such consumersderived

fromsourcesintheterritoryofthePartnerStates;

(e) distinguish service suppliers subject to tax on worldwide

taxable items from other service suppliers, in recognition of

the

difference

in

the

nature

of

the

tax

base

between

them;

or

(f) determine, allocate or apportion income, profit, gain, loss,

deductionorcreditof residentcitizens,companiesorfirms or

thebranchesof the companiesor firms,orbetween related

companiesor firms or theirbranches, inorder to safeguard

thetaxbaseofthePartnerState.


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ARTICLE 22Security Exceptions on Trade in Services

1. NothinginthisPartshallbeconstrued:

(a) to requireanyPartnerState to furnishany information, the

disclosure of which it considers contrary to its essential

securityinterests;

(b) topreventanyPartnerStatefromtakinganyactionwhich it

considersnecessaryfortheprotectionofitsessentialsecurity

interests:

(i) relatingtothesupplyofservicescarriedoutdirectlyor

indirectly for the purpose of provisioning a military

establishment;

(ii) relating to fissionableand fusionablematerialsor the

materialsfromwhichtheyarederived;

(iii) taken in time of war or other emergency in

internationalrelations;

or

(c) to prevent any Partner State from taking any action in

pursuanceofitsobligationsundertheUnitedNationsCharter

fortheMaintenanceofInternationalPeaceandSecurity.

2. ThePartnerStates shall, to the fullestextentpossible, inform the

Council of measures taken under subparagraphs (b) and (c) of

paragraph1andoftheirtermination.

ARTICLE 23Implementation of the Free Movement of Services

1. The implementation of Article 16 of this Protocol shall be

progressiveandinaccordancewiththeScheduleontheProgressive

LiberalisationofServices,specifiedinAnnexVtothisProtocol.


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2. ThePartnerStates,undertaketomakeadditionalcommitmentson

theeliminationofrestrictionsontheservicesectorsandsubsectors

thatarenotspecified inAnnexVof thisProtocol,afterentry into

forceofthisProtocol.

3. The Council shall issue directives on the modalities for the

implementationofparagraph2.

PART GFREE MOVEMENT OF CAPITAL

ARTICLE 24Elimination of Restrictions on the Free Movement of

Capital

1. Except asprovided in thisPart, the Partner States shallupon the

comingintoforceofthisProtocol:

(a) remove restrictions between the Partner States, on the

movement of capital belonging to persons resident in the

Community;

(b) removeanydiscriminationbasedonthenationalityoronthe

placeofresidenceofthepersons orontheplacewherethe

capitalisinvested;

(c) removeanyexisting restrictionsandshallnot introduceany

new restrictionson themovementof capitalandpayments

connectedwith

such

movement

and

on

current

payments

andtransfers,orapplymorerestrictiveregulations; and

(d) remove restrictions relating to currentpayments connected

with the movement of goods, persons, services or capital

betweenPartnerStates inaccordancewiththeprovisionsof

thisProtocol.


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2. The implementation of this Article shall be progressive and in

accordancewiththeScheduleontheRemovalofRestrictiononthe

FreeMovementofCapital,specifiedinAnnexVItothisProtocol.

ARTICLE 25General Exceptions

1. The free movement of capital may be restricted upon justified

reasonsrelatedto:

(a) prudentialsupervision;

(b) publicpolicyconsiderations;

(c) moneylaundering;and

(d) financialsanctionsagreedtobythePartnerStates.

2. WhereaPartnerStateadoptsarestrictionunderparagraph1,the

Partner State shall inform the Secretariat and the other Partner

States and furnish proof that the action taken was appropriate,

reasonableandjustified.

ARTICLE 26

Safeguard Measures

1. Where the movement of capital leads to disturbances in the

functioningofthefinancialmarkets inaPartnerState,thePartner

State concerned may take safeguard measures subject to the

conditionsprovidedunderArticle27ofthisProtocol.

2. Where a competent authority of a Partner State makes an

intervention in the foreign exchange market, which seriously

distortsthe

conditions

of

competition,

the

other

Partner

States

may

take, forastrictly limitedperiod, thenecessarymeasures inorder

tocountertheconsequencesoftheintervention.

3. APartner Statemay take safeguardmeasures,where thePartner

State is indifficultiesor isseriouslythreatenedwithdifficulties,as

regardsitsbalanceofpayments.


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ARTICLE 27Conditions for Application of the Safeguard Measures

1. The safeguard measures which may be adopted or maintained

pursuantto

the

provisions

of

Article

26

of

this

Protocol

shall:

(a) subjecttotheprovisionsofthisProtocol,not discriminate

among PartnerStatesinfavourofthirdparties;

(b) at all times seek to minimize damage to the commercial,

economicorfinancialinterestsofotherPartnerStates;

(c) notexceed the safeguardmeasures necessary todealwith

thecircumstancesdescribedinArticle26;and

(d) be temporary and be phased out progressively as the

situationdescribedinArticle26improves.

2. Indeterminingthe impositionofthesafeguardmeasuresprovided

for inArticle26of thisProtocol, thePartnerStateconcernedmay

accord priority to activities which are essential to its economic

stability.

3. Safeguard measures shall not be adopted or maintained for the

purpose of protecting a particular sector in contravention of the

provisionsofthisProtocol.

4. ThesafeguardmeasuresadoptedormaintainedpursuanttoArticle

26ofthisProtocoloranychangestothesafeguardmeasuresshall

benotifiedtotheSecretariatandtotheotherPartnerStates.

5. The Council shall establish procedures for periodic consultations

including,wherepossibleanddesirable,priorconsultationswiththe

objective of making recommendations to the concerned Partner

Statefortheremovalofthesafeguardmeasures.

6. Theconsultationsunderparagraph5shalladdress thecompliance

of any safeguard measures taken under paragraph 1 and, in


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particular,theprogressivephaseoutofthesafeguardmeasures in

accordancewithparagraph1(d).

ARTICLE 28

Capital and Related Payments and Transfers

For the purposes of this Protocol, capital and related payments and

transfersinclude:

(a) directinvestment;

(b) equityandportfolioinvestments;

(c) bankandcredittransactions;

(d) paymentofinterestonloansandamortisation;

(e) dividendsandotherincomeoninvestments;(f) repatriationofproceedsfromthesaleofassets;and

(g) othertransfersandpaymentsrelatingtoinvestmentflows.

PART HOTHERAREASOFCOOPERATIONINTHECOMMON

MARKET

ARTICLE 29Protection of Cross-Border Investments

1. ThePartnerStatesundertake toprotectcrossborder investments

and returns of investors of other Partner States within their

territories.

2. Forthe

purposes

of

paragraph

1,

the

Partner

States

shall

ensure:

(a) protection and security of cross border investments of

investorsofotherPartnerStates;

(b) non discrimination of the investors of the other Partner

States,by according, to these investors treatment no less

favourable than that accorded in like circumstances to the

nationals

of

that

Partner

State

or

to

third

parties;


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(c) that in caseofexpropriation,anymeasures takenare fora

public purpose, nondiscriminatory, and in accordancewith

due process of law, accompanied by prompt payment of

reasonableand

effective

compensation.

3. ThePartnerStatesshallwithintwoyearsaftercomingintoforceof

thisProtocoltakemeasurestosecuretheprotectionofcrossborder

investmentswithintheCommunity.

4. ForthepurposeofthisArticle:

crossborderinvestmentmeansanyinvestmentbyanationalof

aPartner

State

in

the

territory

of

another

Partner

State;

investmentmeansanykindofassetownedor controlledbyan

investorofaPartnerState inanotherPartnerState inaccordance

withthenationallawsandinvestmentpoliciesofthatPartnerState

andincludes:

(a) anenterprise;

(b) shares,

stock,

and

other

forms

of

equity

participation

in

an

enterprise;

(c) bonds,debentures,otherdebtinstrumentsandloans;

(d) futures,optionsandotherderivatives;

(e) turnkey,construction,management,production,concession,

revenuesharingandothersimilarcontracts;

(f) intellectualpropertyrights;

(g) licenses,authorizations,permitsandsimilarrightsconferred

pursuanttoapplicablenationallaws;and

(h) othertangible

or

intangible,

movable

or

immovable

property,

and relatedproperty rights suchas leases,mortgages, liens

andpledges;

investormeansanationalofaPartner Statewhohasmadean

investmentintheterritoryofanotherPartnerState.


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ARTICLE 30Economic and Monetary Policy Co-ordination

1. For the proper functioning of the Common Market, the Partner

Statesshall

co

ordinate

and

harmonize

their

economic

and

monetary policies to ensuremacroeconomic stability, sustainable

economicgrowthandbalanceddevelopment.

2. TheCouncilshallmonitortheimplementationoftheeconomicand

monetarypoliciesbythePartnerStatestoensuremacroeconomic

stabilityandsustainableeconomicdevelopment.

3. The Partner States undertake to adhere to the macroeconomic

convergencecriteriaasdeterminedbytheCouncil.

4. The Partner States shall submit to the Council periodic progress

reportsontheperformanceoftheirnationaleconomiestofacilitate

close coordination of economic policies and adherence to the

macroeconomicconvergencecriteria.

ARTICLE 31

Financial Sector Policy Co-ordination

1. For the proper functioning of the Common Market the Partner

States undertake to coordinate and harmonize their financial

sectorpoliciesandregulatory frameworks toensure theefficiency

and stability of their financial systems as well as the smooth

operationsofthepaymentsystems.

2. ThePartnerStatesshallensureandmaintainconvertibilityoftheir

nationalcurrencies

and

promote

the

use

of

national

currencies

in

the settlement of payments for all transactions within the

Community.


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ARTICLE 32

Harmonisation of Tax Policies and Laws

ThePartner

States

undertake

to

progressively

harmonize

their

tax

policies

and laws to remove tax distortions in order to facilitate the free

movement of goods, services and capital and to promote investment

withintheCommunity.

ARTICLE 33Prohibited Business Practices

1. The

Partner

States

shall

prohibit

any

practices

that

adversely

affect

freetrade.

2. Theprovisionsofparagraph1shall applyinthecaseof:

(a) all agreements between undertakings, decisions by

associations of undertakings and concerted practiceswhich

mayaffect tradebetweenPartnerStatesandwhichhaveas

their objective or effect the prevention, restriction or

distortionof

competition

within

the

Community;

(b) concentrations which create or strengthen a dominant

positionandasaresultofwhicheffectivecompetitionwould

be significantly impeded within the Community or in a

substantialpartoftheCommunity;and

(c) any abuse by one or more undertakings of a dominant

positionwithintheCommunityorinasubstantialpartofthe

Community.

3. Theprovisionsofparagraph1shallnotapplyinthecaseof:

(a) any agreement or category of agreements between

undertakings;

(b) anydecisionbyassociationsofundertakings;or

(c) anyconcertedpracticeorcategoryofconcertedpractices,


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which improves production or distribution of goods, promotes

technical or economic development or which has the effect of

promoting consumer welfare and does not impose restrictions

inconsistentwiththeattainmentoftheobjectivesoftheCommon

Marketor

has

the

effect

of

eliminating

competition

in

respect

of

a

substantialpartofaproduct.

ARTICLE 34Prohibited Subsidies

1. ThePartnerStatesshallnotgrantanysubsidythroughresourcesin

any form, which distorts or threatens to distort effective

competitionbyfavouringanundertaking,insofarasitaffectstrade

betweenthePartnerStates.

2. Paragraph1shallnotapplywhereasubsidygranted isauthorisedbytheTreatyorbyActsorpoliciesoftheCommunityordecisions

oftheCouncil.

ARTICLE 35Public Procurement

The Partner States shall not discriminate against suppliers, products or

servicesoriginating fromotherPartnerStates, forpurposesofachieving

thebenefitsoffreecompetitioninthefieldofpublicprocurement.

ARTICLE 36Consumer Protection

1. The

Partner

States

shall

promote

the

interests

of

the

consumers

in

theCommunitybyappropriatemeasuresthat:

(a) ensurethe protectionoflife,healthandsafetyofconsumers;

and

(b) encouragefairandeffectivecompetition inordertoprovide

consumerswithgreaterchoiceamonggoodsandservicesat

thelowestcost.


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2. TheimplementationofArticles33to36ofthisProtocolshallbe in

accordancewithdirectivesandregulationsissuedbytheCouncil.

Article 37

Co-ordination of Trade Relations

1. ThePartnerStatesshallcoordinatetheirtraderelationstopromote

internationaltradeandtraderelationsbetweentheCommunityand

thirdparties.

2. For the purposes of paragraph 1, the Partner States shall adopt

commonprinciplesinparticularinrelationto:

(a)tariffrates;

(b)conclusionoftariffandtradeagreements;(c) theachievementsofuniformityofmeasuresofliberalisation;

(d)exportpromotionstrategies;and

(e)traderemedies.

3. The Council shall establish amechanism for the coordination of

traderelationswiththirdpartiesandshall:

(a) adoptcommon

negotiating

positions

in

the

development

of

mutuallybeneficialtradeagreementswiththirdparties;and

(b) promote participation and joint representation in

internationaltradenegotiations.

4. ThePartnerStatesshallprovideinformationtotheCouncilontrade

relations with third parties, to facilitate the effective

implementationofparagraph3.

5. For purposes of trade arrangements between individual Partner

Statesandthirdparties,theprovisionsofArticle37oftheProtocol

ontheEstablishmentoftheEastAfricanCommunityCustomsUnion

shallapply.


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ARTICLE 38Co-ordination of Transport Policies

1. ThePartner

States

undertake

to

evolve

coordinated

and

harmonized transport policies to provide for adequate, reliable,

safeandinternationallycompetitivetransportinfrastructuremodes

andservicesforthedevelopmentandconsolidationoftheCommon

Market.

2. Paragraph 1 shall apply to logistics and transport by road, rail,

inlandwaterways,maritime,pipelineandairand facilities suchas

ports,airportsandinlanddryports.

3. ForthepurposesofimplementingthisArticle,thePartnerStates:

(a) shall honour the existing ratified agreements entered

betweenthePartnerStates;

(b) mayinfutureenterintootheragreements;

(c) shallhonour

their

existing

commitments

and

obligations

emanating from international conventions and agreements;

and

(d) shall subject to the provisions of subparagraph (c) of this

paragraph, align all other agreements on transport to the

provisionsofthisProtocol.

4. TheCouncil shallwithin three yearsupon entry into forceof this

Protocol,make

regulations

applicable

to:

(a) railwaytransport;

(b) maritimetransportandportoperations;

(c) pipelinetransport;

(d) airtransport;

(e) nonmotorizedtransport;and

(f) multimodaltransportandlogistics.


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ARTICLE 39

Harmonisation of Social Policies

1. ThePartner

States

undertake

to

coordinate

and

harmonise

their

socialpoliciestopromoteandprotectdecentworkandimprovethe

living conditions of the citizens of the Partner States for the

developmentoftheCommonMarket.

2. Forthepurposesofparagraph1,thePartnerStatesshallcoordinate

andharmonisetheirsocialpoliciesrelatingto:

(a) goodgovernance,theruleoflawandsocialjustice;

(b) promotionandprotectionofhumanandpeoplesrights;

(c) promotionofequalopportunitiesandgenderequality;

(d) promotionandprotectionof the rightsofmarginalisedand

vulnerablegroups;

(e) promotionofAfricanmoral values, socialvaluesandethics;

and

(f) promotion of unity and cohesion among the people in the

Community.

3. ThePartnerStatesundertaketoimplementprogrammesto:

(a) promote employmentcreation;

(b) strengthen labourlawsandimprove workingconditions;

(c) eliminate compulsoryandforcedlabour;

(d) promote occupationalsafetyandhealthattheworkplaces;

(e) abolish child labour in particular the worst forms of child

labour;

(f) promoteformal

education

to

advance

social

development;

(g) promotevocationalandtechnicaltraining;

(h) expand andimprovesocialprotection;

(i) promote social dialogue between the social partners and

otherstakeholders;

(j) promotetherightofpersonswithdisabilities;

(k) promotesports;

(l) prevent andmanage HIVandAIDS,malariaandtuberculosis;


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(m) prevent andmanage theoutbreakofepidemicsandother

diseases inorderto improvethegeneralhygieneandhealth

ofthepeople;

(n) prevent social vices such as alcoholism, drug abuse or

substanceabuse

and

perverse

behaviour;

(o) eliminate humansmugglingandtrafficking;and

(p) eliminateignorance,diseasesandpoverty.

4. The Partner States shall, in implementing programmes under

paragraph3:

(a) promote, preserve and mainstream cultural activities and

heritageindevelopmentinitiatives;and

(b) adoptmeasures

and

programmes

aimed

at

promoting

the

welfareofthevulnerablegroups.

ARTICLE 40Environmental Management

1. ThePartnerStatesundertake toensure soundenvironmentaland

naturalresourcesmanagementprinciplesfortheproperfunctioning

ofthe

Common

Market,

through

prevention

of

activities

that

are

detrimentaltotheenvironment.

2. For thepurposesofparagraph1, thePartnerStates shallmanage

theenvironmentinaccordancewith:

(a) the East African Community Protocol on Environment and

NaturalResourcesManagement;

(b) the East African Community Protocol for Sustainable

Developmentof

Lake

Victoria

Basin;

(c) theLakeVictoriaTransportAct, 2008;

(d) the Protocol on the Establishment of the East African

CommunityCustomsUnion;

(e) theEastAfricanCommunityCustomsManagementAct,2004;

(f) therelevantprovisionsofthisProtocol;and

(g) anyotherrelevantlawsoftheCommunity.


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3. The Partner States shall respect the principles of international

environmental law and honour their commitments in respect of

international agreements which relate to environmental

management.

4. ThePartnerStatesshalldevelopcommonpolicies inrespondingto

emergingissuesontheenvironment.

5. Theprovisionsof thisArticle shallnotpreclude thePartnerStates

from maintaining or introducing more stringent protective

measures regarding the environment, where the measures are

compatiblewiththisProtocol.

ARTICLE 41Cooperation in Statistics

1. The Partner States shall cooperate to ensure the availability of

relevant,timelyandreliablestatisticaldatafor:

(a) describing, monitoring and evaluating all aspects of the

CommonMarket;and

(b) sound decisionmaking and effective service delivery in the

CommonMarket.

2. For thepurposesofparagraph1, thePartnerStatesundertake to

develop and adopt harmonised statistical methods, concepts,

definitions and classifications for organizing statisticalworkwhile

dulyobservinginternationallyacceptedbestpractices.

3. Forthe

purposes

of

paragraph

1the

Partner

States

shall

collect,

compile,storeanddisseminaterelevant,reliable,timely,consistent

andcomparablestatisticalinformation.

4. TheCouncilmayissuedirectiveson:

(a) statistics to be collected and compiled as well as the

periodicity and format in which statistical data shall be

submittedbythePartnerStatestotheSecretariat;


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(b) thekey indicators formonitoringthe implementationof the

integration process of the Common Market and evaluating

the impactof the integrationprocesson thewelfareof the

peoplein

the

Community

and

the

competitiveness

of

the

Community;

(c) statistics to be aggregated and disseminated by the

Community;

(d) the coordination of Community statistics programmes and

the development and maintenance of an integrated

Community statisticaldatabase;and

(e) the development of infrastructural and human resource

capacitiesinthefieldofstatisticsinthePartnerStates.

ARTICLE 42Research and Technological Development

1. The Partner States undertake to promote research and

technological

development

through

marketled

research,

technological development and the adaptation of technologies in

theCommunity,tosupportthesustainableproductionofgoodsand

servicesandenhanceinternationalcompetitiveness.

2. Forthepurposesofparagraph1,thePartnerStatesshall:

(a) disseminatetheresultsofactivitiesinresearch,technological

developmentanddemonstrationprogrammes;

(b) facilitateaccess to their technologicaland research facilities

byresearchersandotherexperts;

(c) encourageprivatesectorparticipationinactivitiesrelatingto

intraregionalresearchandtransferoftechnology;

(d) adopt measures to develop the human resource of the

Community

in

research

and

development;


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(e) establish and support research infrastructure, facilities and

institutions;

(f) collaboratewith

the

East

African

Science

and

Technology

Commissionandother institutionson research, scienceand

technology;and

(g) establishamechanism for the coordinationof theactivities

specifiedinthisparagraph.

3. Pursuant to the objectives set out in paragraph 1, the Council

shallissuedirectivesandmakeregulationsto:

(a) promote cooperation in research, technological

development and demonstration programmes within

Partner States, and with regional institutions, foreign

countriesandinternationalorganizations;

(b) stimulatecreativityandexcellenceinresearchthroughthe

funding of frontier research carried out by individual

teams

competing

at

the

Community

level;

(c) implement research, technological development and

demonstration programmes with and between

undertakings, including small and mediumsized

enterprises,researchcentresanduniversitiesandtoassist

the undertakings in their research and technological

developmentactivities;

(d) developtechnological

policies

and

strategies,

having

due

regardtotheimportanceoftechnologymanagementand

protectionofintellectualpropertyrights;

(e) provide measures for protecting, developing and

commercialisingindigenousknowledge;

(f) promoteandensure sustainabilityofan informationand

communicationstechnologyculture;


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42

(g) promote and facilitate technology transfer, acquisition

and dissemination in order to achieve increased

productionandproductivity;and

(h) establishand

develop

atechnology

innovation

system

for the productive sector of the economy of the

Community.

4. The Partner States undertake to establish a Research and

TechnologicalDevelopmentFundforpurposesofimplementingthis

Article.

5. The Council shall issue directives and make regulations for the

implementationof

paragraph

4.

ARTICLE 43Co-operation inIntellectual Property Rights

1. The Partner States undertake to cooperate in the field of

intellectualpropertyrightsto:

(a) promoteand

protect

creativity

and

innovation

for

economic,

technological, social and cultural development in the

Community;and

(b) enhance the protection of intellectual property

rights.

2. For thepurposesofparagraph1, thePartnerStatesundertake to

cooperatein thefollowingareas:

(a) copyrightandrelatedrights;

(b) patents;

(c) layoutdesignsofintegratedcircuits;

(d) industrialdesigns;

(e) newplantvarieties;

(f) geographicalindications;

(g) tradeandservicemarks;

(h) tradesecrets;


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43

(i) utilitymodels;

(j) traditionalknowledge;

(k) geneticresources;

(l) traditionalculturalexpressionsandfolklore;and

(m) anyother

areas

that

may

be

determined

by

the

Partner

States.

3. Forthepurposesofparagraph1, PartnerStatesshall:

(a) put inplacemeasures toprevent infringement,misuse and

abuseofintellectualpropertyrights;

(b) cooperateinfightingpiracyandcounterfeitactivities;

(c) exchange information on matters relating to intellectual

propertyrights;

(d) promote public awareness on intellectual property rights

issues;

(e) enhancecapacityinintellectualproperty;

(f) increasedisseminationanduseofpatentdocumentationasa

sourceoftechnologicalinformation;

(g) adoptcommonpositions in regionaland internationalnorm

settinginthefieldofintellectualproperty; and

(h) put in place intellectual property policies that promote

creativity,innovationanddevelopmentofintellectualcapital.

4. ThePartnerStatesshallestablishmechanismstoensure:

(a) the legal protection of the traditional cultural expressions,

traditional knowledge, genetic resources and national

heritage;

(b) theprotectionandpromotionofculturalindustries;


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(c) the use of protected works for the benefits of the

communitiesinthePartnerStates;and

(d) thecooperation inpublichealth,foodsecurity,researchand

technologicaldevelopment.

5. TheCouncilshallissuedirectivesfor:

(a) cooperation in the administration, management and

enforcementofintellectualpropertyrights;

(b) the elimination of discriminatory practices in the

administrationofintellectualpropertyrightsamongstPartner

States.

6. The Partner States shall honour their commitments in respect of

international agreements which relate to intellectual property

rights.

ARTICLE 44Co-operation in Industrial Development

1. ThePartnerStatesundertaketocooperateintheareaofindustrial

development in the activities related to the production of goods

and services in the Common Market, for the attainment of

sustainablegrowthanddevelopmentintheCommunity.

2. For the purposes of paragraph 1, the Partner States shall adopt

commonprinciplesto:

(a) promotelinkages

among

industries

and

other

economic

sectorswithintheCommunity;

(b) promote value addition and product diversification to

improveresourceutilisation;

(c) promote industrial research and development, transfer,

acquisitions, adaptation and development of modern

technology;


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(d) promote sustainable and balanced industrialisation in the

Community to cater for the least industrialized Partner

States;

(e) facilitate the development of micro, small and medium

industriesandpromoteindigenousentrepreneurs;

(f) promoteinvestmentandemployment opportunitiesinthe

Community;

(g) promoteknowledgebasedindustries;

(h) promoteindustrial

productivity

and

competitiveness

of

industries atnational,Community andinternationallevels;

(i) promote sustainable industrial development that ensures

environmental protection, management and efficient

resourceutilisation;and

(j) disseminate and exchange industrial and technological

information.

3. TheCouncilshallissuedirectivesandmakeregulationson:

(a) the implementation of the East African Industrial

DevelopmentStrategy;

(b) the promotion of new technologies and the infrastructure

necessaryforindustrialdevelopment;

(c) the improvement of quality and technical regulatory

infrastructuretoensurecomplianceof industrialproductsto

standardsandtechnicalregulations;

(d) the establishment of physical infrastructure for industrial

development includingindustrialparksandspecialeconomic

zones;


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(e) the establishment of a regional mechanism for developing

human capacity for industrial and technological

advancement;

(f) supportfor

regional

fora

for

Public

Private

Partnership

and

CivilSocietydialogue;

(g) the development of a regional mechanism to provide

sustainableandaffordableindustrialdevelopmentfinance;

(h) support for the development of a regional productive base

forcapital,intermediategoods,toolsandimplements;and

(i) anyother

measures

that

may

be

necessary.

ARTICLE 45Co-operation in Agriculture and Food Security

1. ThePartnerStatesundertaketo:

(a) sustainablydevelopandpromoteagriculturewith regard to

crops,livestock,

fish,

forestry

and

their

products;

and

(b) ensure food security in the Community through access to

qualityandsufficientfood.

2. The objectives of promoting agriculture and ensuring food

securityintheCommonMarketshallbeto:

(a) increaseagriculturalproductionandproductivity;

(b) achievefoodandnutritionsecurity;

(c) promoteinvestmentsinagricultureandfood security;

(d) develop effectiveagriculturalmarketsandmarketingsystems

intheCommunity;and


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(e) promote agro processing and value addition to agricultural

products.

3. ForthepurposesofthisArticle,PartnerStatesshall:

(a) cooperateinagriculturalresearchanddevelopment;

(b) cooperateinplantbreeding;

(c) promote theproductionanddistributionofqualityseedsof

crops,livestock,fishandforesttrees;

(d) developcapacityintheagriculturalsector;

(e) cooperate in breeding, multiplication, distribution and

artificial insemination of livestock including domesticated

animals;

(f) develop,promote,manageandconservefisheries resources

onasustainablebasiswithintheCommunity;

(g) cooperate

in

the

control

of

plant

and

animal

pests,

vectors

anddiseases;

(h) establishearlywarningsystemsandmanagefoodsecurity;

(i) develop,promoteandmanageforestsandforestryproducts;

(j) promoteandsupport thedevelopmentofsustainablewater

useandirrigationfacilities;

(k) stabilizemarkets and ensure the availability of supplies for

bothdomesticconsumptionandexports;

(l) establish an effective regimeof sanitary and phytosanitary

measures,standardsandtechnicalregulations;

(m) establishandpromotetheproductionandavailabilityoffarm

inputsand implements insufficientquantities inthePartner

States;and


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(n) promote and encourage private sector participation in

agricultural commercial activities and provision of support

services.

4. Theimplementation

of

this

Article

shall

be

in

accordance

with

the

existingandanyotherrelevant instrumentsthatmaybeapproved

bytheCouncil.

5. The Partner States undertake to establish an Agricultural

DevelopmentFund.

6. ThepurposesoftheAgriculturalDevelopmentFundshallbeto:

(a) promotesustainable

and

competitive

agricultural

production;

(b) financeagricultural capitalinvestmentandworking capital;

(c) financeagriculturalmechanisationandinputs;

(d) facilitate access to credit by all categories of farmers and

agriculturalentrepreneursespecially smallscalefarmersand

agricultural

entrepreneurs;

(e) facilitatefinancingforvalueadditionandprocessingcapacity;

and

(f) cater foranyother financingrequirement in theagricultural

sector.


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PART IGENERAL PROVISIONS

ARTICLE 46Institutional Framework

In accordancewithparagraph3ofArticle76of the Treaty, theCouncil

mayestablishandconferpowersandauthorityuponsuchinstitutionsasit

maydeemnecessarytoadministertheCommonMarket.

ARTICLE 47Approximation and Harmonisation of Policies, Laws

and Systems

1. The Partner States undertake to approximate their national laws

and to harmonise their policies and systems, for purposes of

implementingthisProtocol.

2. TheCouncilshallissuedirectivesforpurposesofimplementingthis

Article.

ARTICLE 48Safeguard Measures

1. ThePartnerStatesagreetoapplysafeguardmeasures intheevent

of serious injury or of a threat of serious injury occurring to the

economy of a Partner State, following the application of the

relevantprovisionofthisProtocol.

2. Inthe

event

of

serious

injury,

where

prompt

and

immediate

action

is deemed necessary, the Partner State concerned shall take

necessarysafeguardmeasuresafter informing theCounciland the

otherPartnerStatesthroughtheSecretaryGeneral.

3. Inthecaseofthreatofserious injury,thePartnerStateconcerned

shall consult the Council before taking necessary safeguard

measures.


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4. TheCouncilshallexamine thebasis,consider themethodand the

effect of the application of the safeguardmeasures taken by the

PartnerStateunderparagraphs2and3andmakeanappropriate

decision.

ARTICLE 49Measures to Address Imbalances

TheCouncilshallapprovemeasurestoaddressimbalancesthatmayarise

fromtheimplementationofthisProtocol.

ARTICLE 50

Monitoring and Evaluation of Implementation of theCommon Market

1. The Council shall establish a framework for monitoring andevaluatingtheimplementationofthisProtocol.

2. ForthepurposesofthisArticle,theCouncilshall:

(a) ensure that theoperationsof theCommonMarketconform

tothe

objectives

of

this

Protocol;

(b) annually reviewthespecificcommitmentsandprogrammes

in thisProtocoland take thenecessarymeasures toensure

that the Partner States adhere to their commitments and

programmeswithintheagreedtimeframe;

(c) evaluatetheimplementationofthisProtocol;and

(d) assess any causes of delay in the implementation of this

Protocoland take the appropriatemeasures to remedy the

situation.

3. Forthepurposesoftheimplementationofparagraph2,theCouncilshalltake intoaccountanychangesoccurring intheeconomicand

socialcircumstancesofthePartnerStates.

4. Theannual

review

in

subparagraph

(b)

of

paragraph

2shall:


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(a) consistofanassessmentoftheimplementationoftheagreed

commitments and programmes, taking into account the

results of any relevant activities of the monitoring and

evaluationexercise;

and

(b) inparticular,includeanassessmentoftheresultsachievedin

therealisationandenjoymentofthe freedoms andrightsof

citizensguaranteedunderthisProtocol,measuredagainst:

(i) theagreedcommitments;

(ii)

theeffectiveness inthe implementationoftheagreed

commitments;and

(iii) theextenttowhichthecommitmentsagreedtointheimplementationScheduleshavebeenadheredto.

5. The evaluation of the implementation of the Common Marketreferredto insubparagraph(c)ofparagraph2shallbecarriedout

everythreeyears.

ARTICLE 51Regulations, Directives and Decisions

TheCouncilshallfromtimetotimemakeregulations,issuedirectivesand

makedecisionsasmaybenecessary fortheeffective implementationof

theprovisionsofthisProtocol.

ARTICLE 52Annexes

ThePartnerStatesshallconcludesuchannexestothisProtocolasshallbe

deemed necessary and such annexes shall form an integral part of this

Protocol.


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ARTICLE 53Amendment of the Protocol

1. ThisProtocolmaybeamendedbyPartnerStatesinaccordancewith

the

provisions

of

Article

150

of

the

Treaty.

2. Subjecttotheprovisionsofparagraph1,the Councilmay:

(a) withtheapprovaloftheSummit,reviewtheannexestothis

Protocolandmakesuchmodificationsasitdeemsnecessary;

(b) submittothePartnerStatesproposalsfortheamendmentof

theprovisionsofthisProtocol.

ARTICLE 54Settlement of Disputes

1. Any dispute between the Partner States arising from the

interpretation or application of this Protocol shall be settled in

accordancewiththeprovisionsoftheTreaty.

2. Inaccordance

with

their

Constitutions,

national

laws

and

administrativeproceduresandwiththeprovisionsofthisProtocol,

PartnerStatesguaranteethat:

(a) any personwhose rights and liberties as recognisedby this

Protocol have been infringed upon, shall have the right to

redress, evenwhere this infringement hasbeen committed

bypersonsactingin theirofficialcapacities;and

(b) thecompetentjudicial,administrativeorlegislativeauthority

orany

other

competent

authority,

shall

rule

on

the

rights

of

thepersonwhoisseekingredress.


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ARTICLE 55Entry into Force

This Protocol shall enter into force upon ratification and deposit of

instrumentsof

ratification

with

the

Secretary

General

by

all

the

Partner

States.

ARTICLE 56Depository and Registration

1. ThisProtocolandall instrumentsof ratification shallbedeposited

withtheSecretaryGeneralwhoshalltransmitcertifiedtruecopies

of

the

Protocol

and

instruments

of

ratification

to

all

the

Partner

States.

2. The SecretaryGeneral shall register thisProtocolwith theAfrican

Union,theUnitedNations,theWorldTradeOrganisationandsuch

otherorganisationsastheCouncilmaydetermine.

DONEat

Arusha,

Tanzania,

on

the

20th

day

of

November

in

the

yearTwoThousandandNine.

IN FAITH WHEREOF the undersigned have appended their

signatureshereto:


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FORTHEUNITEDREPUBLICOFTANZANIA

JAKAYAMRISHOKIKWETE

PRESIDENT

FORTHEREPUBLICOFBURUNDI

PIERRENKURUNZIZA

PRESIDENT

FORTHEREPUBLICOFKENYA

MWAIKIBAKI

PRESIDENT

FORTHEREPUBLICOFRWANDA

PAULKAGAME

PRESIDENT

FORTHEREPUBLICOFUGANDA

Protocol on the E.A.C common market

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Transcript of Protocol on the E.A.C common market