A Common Market is a union of two or more territories to form one common territory in which there is free movement of goods, labor, services and capital, and the right of establishment and residence. The basics of a common market are: - A smoothly functioning customs union including complete elimination of all tariff and non tariff barriers plus a common external tariff, Free movement of persons, labor, services and right of establishment and residence, Free movement of capital within the Community, Enhanced macro-economic policy harmonization and coordination particularly with regards to fiscal regimes and monetary policy, Setting up, strengthening and empowering the necessary institutions/organs to support the common market operations. The objective of the EAC Common Market is to open up and broaden cooperation among the Partner States in the economic and social fields for the benefit of the Partner States and their citizens.
To be specific the objectives of the Common Market are: Speed up the economic growth and development of the Partner States through the attainment of the free movement of goods, persons and labor, the rights of establishment and residence and the free movement of services and capital, Strengthen, coordinate and regulate the economic and trade relations among the Partner States in order to promote accelerated, harmonious and balanced development within the Community, Sustain the expansion and integration of economic activities within the Community, the benefit of which shall be equitably distributed among the Partner States, Promote common understanding and cooperation among the nationals of the Partner States for their economic and social development, Enhance research and technological advancement to accelerate economic and social development.
The Establishment of the East African Community Common Market entered into force on 1 July 2010, following ratification by all the five Partner States: Burundi, Kenya, Rwanda, Tanzania and Uganda. It provides for “Four Freedoms”, namely the free movement of goods; labor; services; and capital, which will significantly boost trade and investments and make the region more productive and prosperous.
The Common Market for Eastern and Southern Africa is a free trade area with nineteen member states stretching from Libya to Zimbabwe. COMESA formed in December 1994, replacing a Preferential Trade Area which had existed since 1981. Nine of the member states formed a free trade area in 2000 Djibouti, Egypt, Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia and Zimbabwe, with Rwanda and Burundi joining the FTA in 2004 and the Comoros and Libya in 2006. COMESA institutions including a Trade and Development Bank, based in Nairobi, Kenya, and a commercial Court of Justice, to arbitrate differences. Policy is made by a council of ministers and decisions are taken by the heads of state. Coordination is through a secretariat, based in Lusaka, Zambia, and headed by a secretary general.
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