Trade Agreements

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The EAC Partner States have signed the following Trade Agreements:

African Continental Free Trade Area (AfCFTA) Agreement

The African Continental Free Trade Area, (AfCFTA) was established in 2018 as one of the flagship projects of the African Union Agenda 2063 with the main mandate to create a single continental market of 55 Member States of the African Union.

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COMESA-EAC-SADC Tripartite Free Trade Area (TFTA) Agreement

The Tripartite is an umbrella organisation consisting of 3 of Africa’s Regional Economic Communities, namely: the Common Market for Eastern and Southern Africa; the East Africa Community and the Southern African Development Community. The Tripartite consists of 26 member countries.

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EAC – U.S. Trade and Investment Framework Agreement, 2008

Trade and Investment Framework Agreement between the East African Community (EAC) and the Government of the United States of America aimed at promoting an attractive climate and to expand and divesify trade in prodcuts and services between the EAC and the United States.

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EAC Cooperation Agreement on Trade Facilitation, Sanitary and Phytosanitary (SPS) Measures and Technical Barriers to Trade (TBT)

A cooperation agreement between the EAC Partner States and the United States of America, to improve cooperation on trade facilitation, sanitary and phytosanitary measures, and technical barriers to trade.

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EAC – U.S. Letter of Intent on Commercial Dialogue

A Letter of Intent establishing the EAC-U.S. Commercial Dialogue was signed by both Parties on 19th October 2013. The Letter of Intent provides the principles and objectives that will guide the Parties’ cooperation in the Commercial Dialogue.

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African Continental Free Trade Area (AfCFTA) Agreement

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The African Continental Free Trade Area (AfCFTA) is one of the flagship projects of the African Union (AU) Agenda 2063: The Africa We Want.

It is a high ambition trade agreement, with a comprehensive scope that includes critical areas of Africa’s economy, such as digital trade and investment protection, amongst other areas. By eliminating barriers to trade in Africa, the objective of the AfCFTA is to significantly boost intra-Africa trade, particularly trade in value-added production and trade across all sectors of Africa’s economy.

Key Provisions of the Agreement:

The AfCFTA is the world’s largest free trade area bringing together the 55 countries of the African Union (AU) and eight (8) Regional Economic Communities (RECs) to create a single market for the continent. The aim is to enable the free flow of goods and services across the continent and boost the trading position of Africa in the global market. 

As part of its mandate, the AfCFTA is to eliminate trade barriers and boost intra-Africa trade. In particular, it is to advance trade in value-added production across all service sectors of the African Economy. The AfCFTA will contribute to establishing regional value chains in Africa, enabling investment and job creation. The practical implementation of the AfCFTA has the potential to foster industrialisation, job creation, and investment, thus enhancing the competitiveness of Africa in the medium to long term.

The AfCFTA entered into force on May 30, 2019, after 24 Member States deposited their Instruments of Ratification following a series of continuous continental engagements spanning since 2012. It was launched at the 12th Extraordinary Session of the AU Assembly of Heads of State and Government in Niamey – Niger, in July 2019. The commencement of trading under the AfCFTA was in January 1, 2021.

Current Status:

• ratified by Republic of Burundi, Democratic Republic of Congo, Republic of Kenya, Republic of Rwanda, Republic of Uganda, and the United Republic of Tanzania.
  
  
• signed by the Republic of South Sudan and the ratification process is underway.

International Trade

Posted in Trade

International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. In most countries, such trade represents a significant share of gross domestic product.

The EAC International Trade Department coordinates the initiation, development and implementation of policies and programmes in trade integration with third Parties.

As a Customs Union and Common Market, the EAC Partner States are obliged to coordinate their trade relations with third parties and to adopt common principles in particular in relation to:

1. tariff rates;
2. conclusion of tariff and trade agreements;
3. the achievements of uniformity of measures of liberalization;
4. export promotion strategies; and
5. trade remedies.

In coordinating their trade relations, the EAC Partner States are to:

• adopt common negotiating positions in the development of mutually beneficial trade agreements with third parties; and
• promote participation and joint representation in international trade negotiations.

With this mandate, the EAC Secretariat coordinates the following trade negotiations:

• African Continental Free Trade Area Negotiations
• COMESA-EAC-SADC Tripartite FTA Negotiations
• EAC - EU EPA negotiations
• EAC - U.S. Trade and Investment Partnership

Under the multilateral framework, the EAC Secretariat coordinates joint Trade Policy Reviews (TPRs) for EAC Partner States which are undertaken under the auspices of the World Trade Organization (WTO) Trade Policy Review Mechanism.

So far, three (3) TPRs for the EAC Partner States have been undertaken jointly to comprehensively examine EAC trade and economic policies: 2006, 2012 and 2019. The Reports can be found on the WTO website: www.wto.org

Trade-Related Policies, Strategies and documents that have been developed:

• EAC Regional Trade Policy
  
  
• EAC E-Commerce Strategy
  
  
• EAC Export Promotion Strategy
  
  
• EAC Special Economic Zones Policy
  
  
• EAC Strategy for Trade in Services
  
  
• EAC African Growth Opportunity Act Strategy
  
  
• EAC Model Investment Treaty
  
  
• Trade Negotiations Framework with Third Parties

Ongoing:

• Strategy on Intellectual Property Rights (IPR)

About the EAC MSMEs Trade Fair

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The East African Community undertakes MSMEs promotion through bringing together different artisans from all the Partner States under the annual East African Community Micro, Small and Medium Enterprises (MSMEs) Trade Fair formally known as the EAC Jua Kali Nguvu Kazi Exhibition. The Trade Fair is organized by the EAC Secretariat in collaboration with the Confederation of Micro and Small Enterprises Organization (CMSEO - EA) and the Partner States.

The first Trade Fair was held in Arusha in November 1999 during the historic event of signing of the Treaty for the Establishment of the East African Community. Subsequent to the success of the Arusha Trade Fair, the EAC Heads of State directed that the Trade Fair be held annually on rotational basis among the EAC Partner States so as to enhance and revamp the socio-economic integration of the people of East Africa, opening up new market frontiers for their products while bridging up the knowledge and technological gaps between them.

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