Common Market in East African Community (EAC) - Free Trade Around the Corner?

June 30, 2010 – According to Bloomberg, July 1st will be an extremely influential day for the East African Community (EAC). The EAC is creating a common market, grooving the path towards improvements in trade and potentially free trade throughout the region. All of Africa, not only the EAC struggles with intra-African trade, mainly due to differences between countries, tariffs and regulations. One of the goals from the declaration of a common market will require reforms in regulations; hopefully, over a five year period the EAC will be able to prosper due to the benefits of free trade and serve as a model for the rest of Africa.


The EAC, made up of Kenya, Tanzania, Uganda, Rwanda and Burundi have burdensome customs procedures, inconsistent energy sources, and deprived roads, which have been at the forefront of cross-boarder trade problems. These problems can not be solved over-night; however, long-term infrastructure changes will be necessary and essential in assisting the EAC towards free trade.

Potential problems will arise during reforms when states try to protect their industries through the use of protectionist policies. This will hinder and possibly prevent the EAC from reaching their frequent desired goal of free trade, while promoting protectionist policies to partner states. While protectionism is possible, improvements in aviation restrictions, work permits of job-seekers, and foreign exchange rules must happen. It is clear that the EAC is on the track towards free trade. Changes in regulations and infrastructure will be the foundation of their future, hopefully the common market will boom and free trade will be around the corner.

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