Legal mechanism of the east african treaties in fighting cross border crimes, case study Gatuna border

4.7.2 The Common Market Protocol

The Protocol on the Establishment of the East African Community (EAC) 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; labour; services; and capital, which will significantly boost trade and investments and make the region more productive and prosperous. It represents the second stage of the regional integration process as defined by the Treaty for the Establishment of the East African Community. The Common Market is guided by the fundamental and operational principles of the Community as enshrined in Articles 6 and 7 of the Treaty. Creation of the EAC Common Market is envisaged to deepen the integration, accelerate economic growth and promote development. It is aimed at strengthening, coordinating and regulating the economic and trade relations among partner states in order to promote their accelerated harmonious and balanced development^40(*). The article 5.2(b) states that Partner States agreed upon ease cross border movement of persons and eventually adopt an integrated border management system, all of this is about scope of cooperation in the Common Market.

The overall objective of the Common Market is to widen and deepen cooperation among the Partner States in the economic and social fields for the benefit of the Partner States. For this purpose, the article 47 of this Protocol commits Partner States to approximate laws and harmonize policies and system. This approximation of laws and harmonization of policies and systems is a crucial element of the success of the common market. The harmonization of national policies and laws are referred to the objectives of the community as stipulated in the Treaty establishing the East African Community^41(*) in its Art 5(3) (f), the promotion of peace, security, and stability within, and good neighborliness among Partner States.

The free movement of capital may be restricted upon different justified reasons related to:

(a) Prudential supervision;

(b) Public policy considerations;

(c) Money laundering^42(*); and

(d) Financial sanctions agreed to by the Partner States.

It is hoped that the Common Market will sustain expansion and integration of economic activities, whose benefit shall be equitably distributed. But where the movement of capital leads to disturbances in the functioning of the financial markets in a Partner State, the Partner State concerned may take safeguard measures subject to the conditions provided under Article 27 of this Protocol. This is when there are prohibited goods all goods the importation of which is for the time being prohibited under the Act, or by any written law for the time being in force in the Partner State or false money and counterfeit currency notes and coins and any money not being of the established standard in weight or fineness, narcotic drugs under international control, hazardous wastes and their disposal as provided for under the base conventions.

In summary, the Common Market Protocol is one of the achievements of a secured region but once it is not well managed the negative consequences should be higher than advantages because as seen above it provides for free movement of persons and goods and this movement itself can cause insecurity in the region.

* ⁴⁰ Art 4(1) of the East African common market protocol

* ⁴¹ Treaty establishing the East African Community (2000), art,5(3)(f)

* ⁴²Art 25(c) of the EAC Common Market Protocol