WT/REG346/1  
3 March 2014  
(14-1272)  Page: 1/21  
Committee on Regional Trade Agreements   
 
  
  FACTUAL PRESENTATION 
ECONOMIC INTEGRATION AGREEMENT  
EAST AFRICAN COMMUNITY COMMON MARKET  
(SERVICES) 
Report by the Secretariat 
This report, prepared for the consideration of the Protocol on the Establishment of the 
East African Community Common Market, Services has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties. The report has been drawn up in accordance with the rules and procedures contained in 
the Decision for a Transparency Mechanism for Regional Trade Agreements 
(WT/L/671). 
Any technical questions arising from this report may be addressed to 
Ms. Jo-Ann Crawford (tel: +41 22 739 5422). Any statistical questions arising from 
this report may be addressed to Ms. Rowena Cabos (tel: +41 22 739 5185). 
 
 WT/REG346/1 
 
- 2 - 
 
 
   
TABLE OF CONTENTS 
 
Page 
1   TRADE ENVIRONMENT ................................................................................................. 4  
1.1   Trade in servic es and inve stment ................................................................................. 4  
2   CHARACTERISTIC ELEMEN TS OF THE PROTOCOL ........................................................ 6  
3   PROVISIONS ON TRADE IN SERVICES ......................................................................... 7  
3.1   Scope and definitions ................................................................................................. 7  
3.2   Denial of benefits ......................................................................................................  7 
3.3   General provisions on trade in services ......................................................................... 7  
3.3.1   Mark et acce ss ........................................................................................................ 7 
3.3.2   National an d MFN treatment ..................................................................................... 7  
3.3.3   Commercial presence .............................................................................................. 8  
3.3.4   Movement of  natural pe rsons ................................................................................... 9  
3.4   Liberalization commitments ........................................................................................ 10 
3.5   Sector-speci fic provis ions .......................................................................................... 11 
3.5.1   Business services ................................................................................................... 11 
3.5.2   Communica tion services ......................................................................................... 12 
3.5.3   Construction and related engineering services ............................................................ 13 
3.5.4   Distribution services ............................................................................................... 13 
3.5.5   Educat ion services ................................................................................................. 13 
3.5.6   Environmental services ........................................................................................... 13 
3.5.7   Financial services ................................................................................................... 13 
3.5.8   Tourism and trav el related services .......................................................................... 14 
3.5.9   Recreational, cultur al and sporting  services ............................................................... 14 
3.5.10   Transport services ................................................................................................ 15 
3.6   Regulatory provisions ................................................................................................ 15 
3.6.1   Domestic regulation ............................................................................................... 15 
3.6.2   Recognition ........................................................................................................... 16 
3.6.3   Subsidies .............................................................................................................. 16 
3.6.4   Safeguards ........................................................................................................... 16 
4   GENERAL PROVISIONS OF THE PROTOCOL ................................................................ 19  
4.1   Tran sparency ........................................................................................................... 19 
4.2   Payments and capital mo vements ............................................................................... 19 
4.3   Competition .............................................................................................................  19 
4.4   Government  procurement .......................................................................................... 19 
4.5   Intellectual property rights ......................................................................................... 19 
4.6   Exceptions ............................................................................................................... 19 
4.7   A ccession  ............................................................................................................... . 20 WT/REG346/1 
 
- 3 - 
 
 
  4.8   Institutio nal framework ............................................................................................. 20 
4.9   Disput e settlement ................................................................................................... 20 
4.10   Other areas of co-opera tion in the co mmon mark et ..................................................... 20 
4.11   Relationship with other agr eements concluded by the Parties ........................................ 20 
 WT/REG346/1 
 
- 4 - 
 
 
   
 
Key Facts 
 
Parties to the Protocol:   Burundi, Kenya, Rwanda, Tanzania and Uganda  
 
Date of Signature:    20 November 2009  
 
Date of Entry into Force:  1 July 2010  
  
Date of Notification:    1 August 2012  
 
Full implementation:   2015  
 
 
1  TRADE ENVIRONMENT 
1.1.  The Protocol on the Establishment of the East African Community (EAC) Common Market 
(hereafter "the Protocol") came into force in July 2010, ten years after the Treaty establishing the 
East African Community. Its original members, Kenya, Tanzania, and Uganda, have implemented a 
Common External Tariff (CET) on goods. Burundi and Rwanda which acceded to the EAC in 2007, began implementing the CET in 2009.  
1.2.  Commercial services trade by individual EAC Partner States is shown in Table 1.1. Kenya is 
the largest exporter of services among EAC Partner States with total exports of US$3.3 billion (55
th in global rankings) in 2011, while Uganda with total imports of services of US$2.3 billion (73rd 
in global rankings) is the EAC's largest importer. 
Table 1.1 Commercial services tr ade by EAC Partner States, 2011 
  
  Exports Imports 
Value (million 
US $) Share in 
World Total 
Exports (%) Rank* 
(2011) Value (million 
US $) Share in 
World Total 
Imports(%) Rank* 
(2011) 
Burundi   19.6    0.00  164   189.5    0.00  148 
Kenya   3,310.7    0.08  55   1,958.1    0.05  79 
Rwanda   318.1    0.01  128   510.1    0.01  131 
Tanzania   2,318.6    0.05  65   2,156.4    0.05  77 
Uganda   1,347.2    0.03  82   2,258.7    0.06  73 
 
* excluding intra-EU trade. 
 
Source: WTO Statistics Database, Trade Profiles (April 2013).  
1.1  Trade in services and investment 
1.3.  Chart 1.1 provides a breakdown for EAC Partner States of total trade in commercial services 
with the world, by broad services sector for the period 2000-2011. Travel and transportation 
services account for the lion's share of global co mmercial services exports and imports for all EAC 
members except Burundi, where construction services account for the largest average share of global services exports over the period analysed. WT/REG346/1 
 
- 5 - 
 
 
  Chart 1.1 EAC Partner States, total trade in  commercial services with world, 2000-2011  
0102030
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Exports Imports
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information servicesRoyalties and license fees
Other business services
Personal, cultural and recreational servicesUS$ million
Insurance services0100200300
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Burundi
0.01.02.03.04.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Kenya
0.01.02.03.04.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ millionUS$ billion
US$ billion
0100200300400500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Rwanda
US$ million
0100200300400500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ million
0.01.02.03.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Tanzania
0.01.02.03.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
0.00.51.01.52.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Uganda
US$ billion
US$ billionUS$ billion
0.00.51.01.52.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011US$ billion
 
 
Source: IMF and WTO and UNCTAD Secretar iat estimates based on national data. 
  
 WT/REG346/1 
 
- 6 - 
 
 
  1.4.  Inward and outward foreign direct investment (FDI) stocks and flows for the period 
2004-2012 are shown in Tables 1.2a and 1.2b. Ta nzania, followed by Uganda and Kenya have 
accumulated the largest stock of FDI over the period and equally account for the largest share of FDI flows over the period. FDI inflows have accelerated into Rwanda and Burundi, increasing 
almost tenfold in the period analysed.  
Table 1.2a EAC, Inward and outward FDI stock, 2004-2012 
in million US$ 
Year EAC Partner States 
Burundi Kenya Rwanda Uganda Tanzania Inward 
Outward 
Inward 
Outward 
Inward 
Outward 
Inward 
Outward 
Inward 
Outward 
2004 46.8 2.3 1,092.4 129.1 69.0 0.0 1,644.6 0.0 3,954.3 0.0 
2005 47.4 2.3 1,113.7 138.8 77.0 0.0 2,024.4 0.0 4,438.8 0.0 
2006 0.7 1.0 1,164.3 162.8 103.2 0.0 2,668.6 0.0 4,827.2 0.0 
2007 1.1 0.9 1,893.4 198.8 170.4 12.9 3,460.9 0.0 5,950.1 0.0 
2008 4.7 1.4 1,989.0 242.6 273.7 12.9 4,189.8 0.0 6,941.5 0.0 
2009 5.1 1.4 2,103.9 288.6 392.4 12.9 5,031.4 0.0 8,066.3 0.0 
2010 5.8 1.4 2,282.0 290.1 434.7 12.9 5,575.2 *** 8,762.2 0.0 
2011 8.4 1.3 2,617.2 299.6 583.0 12.9 6,469.5 0.0 9,278.1 0.0 
2012 9.0 1.3 2,875.9 315.6 742.8 12.9 8,190.7 0.0 10,984.1 0.0 
UNCTAD note: *** negative accumulation of flows; Value included in regional or global totals. 
 Source: UNCTAD. 
 
Table 1.2b EAC, Inward and outward FDI flows, 2004-2012 in million US$ 
Year EAC Partner States 
Burundi Kenya Rwanda Uganda Tanzania Inward 
Outward 
Inward 
Outward 
Inward 
Inward 
Outward 
Inward 
Outward 
Inward 
2004 0.0 .. 46.1 4.4 10.9 .. 295.4 .. 330.6 .. 
2005 0.6 .. 21.2 9.7 14.3 .. 379.8 .. 935.5 .. 
2006 0.0 .. 50.7 24.0 30.6 .. 644.3 .. 403.0 .. 
2007 0.5 0.0 729.1 36.0 82.3 12.9 792.3 .. 581.5 .. 
2008 3.8 0.6 95.6 43.8 103.4 .. 728.9 .. 1,383.3 .. 
2009 0.3 .. 115.0 46.0 118.7 .. 841.6 .. 952.6 .. 
2010 0.8 .. 178.1 1.6 42.3 .. 543.9 -4.1 1,813.3 .. 
2011 3.4 .. 335.2 9.4 106.0 .. 894.3 .. 1,229.4 .. 
2012 0.6 .. 258.6 16.1 159.8 .. 1,721.2 .. 1,706.0 .. 
UNCTAD Note: .. not available or not separately reported. 
 Source: UNCTAD. 
 
2  CHARACTERISTIC ELEMENTS OF THE PROTOCOL 
2.1.  The Parties notified the services aspects of  the Protocol on the Establishment of the East 
African Community Common Market to the WTO under GATS Article V:7(a) as an agreement 
liberalizing trade in services.1 
2.2.  The Protocol provides for the free movement of goods, persons, labour, services and capital 
and for the rights of establishment and residenc e (Table 2.1). Provisions on protection of 
                                               
1 WTO document S/C/N/655 dated 1 October 2012. Notification of the East African Customs Union 
(goods) and of the accession of Burundi and Rwanda can be found in WTO documents WT/COMTD/N/14/Add.1 and WT/COMTD/N/14/A dd.2, respectively. WT/REG346/1 
 
- 7 - 
 
 
  cross-border investments are governed by Article 29 , while the right of establishment is dealt with 
in Article 13.  
Table 2.1 Contents of the Protocol on the Establishment of the EAC Common Market  
 Title/Description 
Part A Interpretation 
Part B Establishment of the EAC Common Market 
Part C Free Movement of Goods 
Part D Free Movement of Persons and Labour 
Part E Rights of Establishment and Residence 
Part F Free Movement of Services 
Part G Free Movement of Capital 
Part H Other Areas of Co-operation in the Common Market 
Part I General Provisions 
Annex I Free Movement of Persons Regulations 
Annex II Free Movement of Workers Regulations 
Annex III Right of Establishment Regulations 
Annex IV Right of Residence Regulations 
Annex V Schedule of Commitments on the Progressive Liberalization of Services 
Annex VI Schedule on the Removal of Restri ctions on the Free Movement of Capital 
 
Source: Protocol on the Establis hment of the EAC Common Market. 
 
3  PROVISIONS ON TRADE IN SERVICES 
3.1  Scope and definitions 
3.1.  In the Protocol, trade in services is defined to include GATS modes of supply 1, 2, 3 and 4 
and is mainly governed by Part F of the Protocol. Mode 4 delivery of services is limited to citizens 
of EAC Partner States. As in the GATS, services supplied in the exercise of governmental authority 
supplied neither on a commercial basis, nor in competition with one or more service suppliers, are 
excluded from coverage under the Protocol. 
3.2.  Services are scheduled in accordance with a "positive list" approach, with progressive 
implementation of the free movement of services in accordance with the Schedule on the 
Progressive Liberalization of Services, specified in Annex V to the Protocol (Article 23).  
3.2  Denial of benefits 
3.3.  There are no provisions in the Protocol on the denial of benefits. 
3.3  General provisions on trade in services 3.3.1  Market access 3.4.  Market access is granted on a progressive basis in accordance with a positive list of 
commitments set out in Annex V to the Protocol. The structure of commitments in Annex V is 
similar to the Parties' GATS Schedules. The Parties agree to progressively remove existing restrictions and not introduce any new restrictions on the provision of services in the Parties, by 
nationals of other Parties, except where provided for in the Protocol (Article 16.5). 
3.3.2  National and MFN treatment 3.5.  The Parties agree to accord to services and service suppliers of other Parties treatment no 
less favourable than that accorded to similar services and service suppliers of the Parties 
(Article 17). 
3.6.  The Parties agree upon entry into force of th e Protocol to accord unconditionally to services 
and service suppliers of the other Parties, treatment no less favourable than that it accords to like 
services and service suppliers of other Parties or any third party or customs territory (Article 18). WT/REG346/1 
 
- 8 - 
 
 
  3.3.3  Commercial presence 
3.7.  Under Article 13 of the Protocol, the Parties guarantee the right of establishment of nationals 
of other Parties within their territories. The right of establishment entitles a national of an EAC Partner State to take up and pursue economic activities as a self-employed person; and set up and 
manage economic undertakings in the territory of another EAC Partner State; and enable a self-
employed person who is in the territory of anothe r Party to join a social security scheme of that 
Party in accordance with the latter's national laws (Article 13.3). Progress on the implementation 
of Article 13.3 as provided by the Parties is laid out in Table 3.1. 
Table 3.1 Progress on the Domesticatio n of Article 13.3 of the Protocol  
Partner 
State Right to take up economic 
activities in Partner States 
(self-employed persons and 
companies)  Self-employed person to join a social 
security scheme in other Partner States  
Burundi This right is fully implemented. A self-employed person from the other Partner 
States can apply to join a social security scheme in Burundi, and the national laws will 
apply. 
Kenya  The measure is being implemented 
through identification of restrictive 
laws with a view to amend them. Nationals of other Partner States are allowed to 
join social security schemes in Kenya.  
The NSSF Act 2013 amendment allows for 
portability of Social Security benefits. 
Rwanda In the process of domesticating 
relevant laws and regulations. Rwanda’s law doesn't discriminate against 
citizens of EAC Partner States working in 
Rwanda. Rwanda is negotiating portability of 
social security benefits but currently bilateral cooperation is applied between Rwanda and 
Burundi. 
Tanzania Relevant laws on establishments 
which are restrictive have been 
identified and the process of 
amendment in line with the EAC 
Common Market Protocol is 
ongoing. National labour laws allow all eligible workers to 
join Social Security Scheme regardless of their 
nationality. 
 
Negotiations on portability of Social Security 
Schemes are still in progress at the regional 
level. 
Uganda The right of establishment is 
provided for but discrimination 
remains in some of Uganda’s laws 
and consultations on the legal reform process are ongoing.  There is a draft bill in place proposing to 
domesticate the provisions of Article 13.3 and 
provide for the eligibility of EAC citizens in the 
NSSF. 
Source: EAC Partner States. 
 3.8.  Companies and firms established in accordance with the national laws of a Party and having 
their registered office, central administration or principal place of business and which undertake 
substantial economic activities in the Party, are, for the purposes of establishment accorded non-discriminatory treatment in other Parties (Article 13.6). According to the Parties, foreign companies legally established in accordance with national laws are given the same treatment as 
domestic ones. However, third party companies may be accorded special treatment in accordance 
with Article 13.10 "on grounds of public po licy, public security or public health". 
3.9.  Regulations to implement th e provisions of Article 13 are contained in Annex III (East African 
Community Common Market (Right of Establishment) Regulations).  
3.10.  The Parties agree to protect cross border investments and returns of investors of Parties 
within their territories (Article 29). Cross-border investment is defined as any investment by a 
national of a Partner State in the territory of an other Partner State. Investment means any kind of WT/REG346/1 
 
- 9 - 
 
 
  asset owned or controlled by an investor of a Partner State (limited to nationals) in another 
Partner State in accordance with the national laws and investment policies of that Partner State.2 
3.3.4  Movement of natural persons 3.11.  Under Article 10 of the Protocol, the Parties guarantee the free movement of workers, who 
are citizens of the Parties, within their territories. The Parties agree to ensure non-discrimination of 
the workers of other Parties based on their nationalities, in relation to employment, remuneration and other conditions of work and employment. The free movement of workers entitles a worker to 
apply for and accept offers of employment; move freely within the territories of the Parties for the 
purpose of employment; conclude contracts an d take up employment in accordance with 
contracts, national laws and administrative actions, without any discrimination; stay in the territory of a Party for the purpose of employment in accordance with the national laws and 
administrative procedures governing the employment  of workers of that Party; enjoy the freedom 
of association and collective bargaining for better working conditions in accordance with the national laws of the host Party; and enjoy the rights and benefits of social security as accorded to 
the workers of the host Party.
3 A worker has the right to be accompanied by a spouse and a child; 
spouses and children (the latter subject to age limits under national laws) are entitled to be employed as workers or to engage in any economic activity as self-employed persons.  
3.12.  Annex II of the Protocol, the East African Community Common Market (Free Movement of 
Workers) Regulations, was signed in November 2009. In accordance with regulation 5 of this 
Annex, citizens with valid travel documents or national identity cards are entitled to enter a territory of another Partner State and stay for a period of up to six months for purposes of 
completing the formalities for obtaining a work permit. Progress on the implementation of 
regulation 5 of Annex II as provided by the Parties is laid out in Table 3.2. 
Table 3.2 Status of Implementation of Re gulation 5 of Annex II of the Protocol 
Partner State Status of Implementation 
Burundi An administrative directive has been  issued to comply with the requirement 
of Regulation No. 5. The amendment of  the immigration Law is in process. 
Kenya Implemented through the Kenya Citizenship and Immigration Act No.12 of 
2011 and subsequent Kenya Citizenship and Immigration Regulations 2012. 
Rwanda Implemented through the new Im migration Law No.04/2011 of 21 March 
2011. 
Tanzania Administrative directive has been issued to Immigration Officers in all 
designated entry points to issue visitors pass of up to six months to citizens 
of other Partner States entering Tanzania.  
Uganda Pending amendment of the Citizenship and Immigration Control Act, an 
administrative circular provides for automatic six-month entry for an EAC 
Passport holder, with other EAC citizens admitted to Uganda on a renewable 
basis for up to six months. 
Source: EAC Partner States. 
 3.13.  The Schedule for the Free Movement of Workers in Annex II contains varying commitments on the part of EAC Partner States to implement the provisions of Article 10 (Table 3.3). 
C o m m i t m e n t s  h a v e  b e e n  m a d e  t o  l i b e r a l i z e  t h e  m o v e m e n t  o f  s k i l l e d  l a b o u r  o n l y  a n d  v a r y  
considerably by EAC Partner State. Kenya's commitments are the most extensive, followed by those of Uganda. According to the Parties, the EAC Partner States are implementing the commitments in the Schedule in Annex II, but implementation is facing challenges due to the slow 
process of alignment of national laws to be in compliance with the provisions of the Protocol. No 
additional commitments have been undertaken. 
                                               
2 Investment includes the following: an enterprise; sh ares, stock, and other forms of equity participation 
in an enterprise; bonds, debentures, other debt instrume nts and loans; futures, opti ons and other derivatives; 
turnkey, construction, management, production, concession, revenue ‐sharing and other similar contracts; 
intellectual property rights; licenses, authorizations, perm its and similar rights confe rred pursuant to applicable 
national laws; and other tangible or intangible, movable or immovable property, and related property rights such as leases, mortgages, liens and pledges. 
3 According to the Parties, EAC Partner States are implementing Article 10 in accordance with the 
Protocol and Annex II.  However, the implementation is facing challenges due to the slow process of alignment 
of national laws to be in compliance with the provisions of the Protocol. WT/REG346/1 
 
- 10 - 
 
 
  Table 3.3 Summary of Commitments made in Schedules for Free Movement of Workers  
Major Group of Workers Implementation date 
Burundi Kenya  Rwanda Tanzania Uganda  
Administrators and Managers x 2010 x x 2010 
Professionals x 2010 2010 2010-2015 2010 
Technicians and Associate Professionals 2010 2010 2010 2012 x 
Craft and Related Trades Workers x 2010 x x 2010 
Source: Annex II of the East African Community Commo n Market (Free Movement of Workers Regulations). 
 
3.14.  Under Article 7 of the Protocol the Parties guarantee the free movement of persons who are 
citizens of other Partner States, within their territories. The Parties agree to ensure non-discrimination of the citizens of the other Partner States based on their nationalities by 
ensuring entry of citizens without a visa; free movement of persons; freedom to reside; and to 
exit without restriction. Regulations governing the free movement of persons are found in Annex I of the Protocol. 
3.15.  Self-employed persons and their spouses and children are granted the right of 
establishment in the territory of another EAC Member State in accordance with the Regulations on 
the Right of Establishment contained in Annex III. Self-employed persons intending to take up and pursue economic activities, or to set up and ma nage economic undertakings in the territory of 
another EAC Member State who submit the relevant documents are granted a work permit for an 
initial period of two years.
4 
3.16.  Under Regulation 10.3 of A nnex III, the Parties agree to identify the restrictions on the right 
of establishment in national laws and to submit a list of restrictions to the Council within one year 
of the entry into force of the Protocol. The Council shall issue a directive for the removal of such restrictions. According to the Parties, National Implementation Committees on the Common Market 
have been established in all the Partner States. Th e status of implementation of Regulation 10.3 of 
Annex III as provided by the Parties is laid out in Table 3.4. 
Table 3.4 Status of Implementation of Re gulation 10.3 of Annex III on Removal of 
Restrictions  
Partner 
State Status of Implementation 
Burundi Restrictive Laws and regulations have been identified. Notification to the Council 
is in process. 
Kenya Restrictions on right of establishment have been identified and are under 
consideration by the Parliament before notification to the Council. 
Rwanda The identification and notification of restrictions are in process.  
Tanzania A number of restrictive Laws and Regulations have been identified and the 
process of amendment is ongoing.  
Uganda Uganda has identified the relevant restrictions but has not formerly notified the 
Council. Uganda Laws Reform Commission has prioritized a batch of commercial laws, and is currently undertaking consultations on the legal reform process with 
the relevant Ministries, Departments and Agencies. This list of laws is available 
from the Ministry of EAC Affairs.  
Source: EAC Partner States. 
 3.4  Liberalization commitments 
3.17.  The Parties agree to progressively remove existing restrictions and not introduce any new 
restrictions on the provision of services in the Parties, by nationals of other Parties except as 
otherwise provided in the Protocol (Article 16.5). Annex V to the Protocol contains the Parties' 
schedules of commitments on the progressive libera lization of services. The Parties also undertake 
to make additional commitments on the elimination of restrictions on services sectors and 
subsectors not specified in Annex V after entry into force of the Protocol (Article 23.2). According 
to the Parties, such negotiations are still ongoing. 
                                               
4 According to the Parties, self-employed persons are free to engage in any economic activity subject to 
the provisions of Article 13 and Article III. WT/REG346/1 
 
- 11 - 
 
 
  3.18.  The Parties have made no commitments under the Protocol in construction services, 
environmental services, health related and social services, and recreational, cultural and sporting 
services. The commitments made in other sectors are described below. Table 3.5 provides a comparison between the commitments made by individual EAC Partner States and their respective 
GATS Schedules.
5 
3.5  Sector-specific provisions 3.5.1  Business services 
3.19.  Under the GATS, only Burundi and Rwanda have scheduled commitments in Business 
Services.  
3.20.  In its GATS Schedule under Professional Services Burundi has made commitments in 
medical, dental and veterinary services with no restrictions in modes 1-3. Mode 4 is unbound for 
medical and dental services except for specialists and managers, while for veterinary services 
mode 4 is unbound except for specialized senior  management. In Other Business Services, Burundi 
has scheduled no restrictions under the GATS in modes 1-3 for a number of subsectors including 
advertising, management consulting, maintena nce and repair of equipment and packaging 
services. Under the Protocol, Burundi has liberalised modes 1-3 of a number of subsectors of Professional Services including taxation services, architectural services, engineering services, 
veterinary services and services provided by midwives, nurses, physiotherapists and para-medical 
personnel. Legal services, and accounting, auditing and bookkeeping services have been liberalized for modes 1-2, with mode 3 either unbound or subject to ownership restrictions (scheduled for liberalization by 2015). In addition, Burundi has liberalized modes 1-3 of Computer and Related 
Services, Research and Development Services
6 and 15 subsectors of Other Business Services. 
Burundi has made no commitments in Real Estate  Services and Rental/Leasing Services without 
Operators under the Protocol.  
3.21.  Under the Protocol, Kenya has liberalized modes 1-3 of legal advisory and representation 
services in judicial procedures concerning other fields of law, accounting and auditing services, architectural services, and advisory and consultative engineering services. Kenya has scheduled no 
restrictions in modes 1 to 3 for a single subsector of both Computer and Related Services and 
Research and Development Services. For a number of subsectors of Leasing or Rental Services no 
restrictions have been scheduled for modes 1-2 with mode 3 subject to a joint venture requirement (to be liberalized in 2015). Kenya has made no commitments in Real Estate Services 
and Other Business Services under the Protocol. 
3.22.  In its GATS Schedule, Rwanda has committed legal services (all modes) and medical and 
dental services (modes 1-3) without restriction (mode 4 for the latter is unbound except for 
specialist physicians and senior executives). Under the Protocol, Rwanda has liberalized modes 1-3 
of all subsectors of Professional Services and Real Estate Services. For Computer and Related 
Services, modes 1-3 have for the most part been lib eralized, with national treatment limitations on 
mode 3 scheduled for liberalization in 2015. For Research and Development Services, market 
access restrictions in modes 1-3 have been liberalized; national treatment limitations on mode 3 are retained on research and development services on social sciences and humanities and interdisciplinary research and development serv ices. Under Other Business Services, Rwanda has 
liberalized modes 1-3 of 13 different subsectors. Rwanda has made no commitments in 
Rental/Leasing Services without Operators under the Protocol. 
3.23.  Under the Protocol, Tanzania has for the most part liberalized modes 1-3 of accounting and 
auditing services, engineering and integrated en gineering services, services by midwives and 
nurses, and medical and dental services. Modes 1-3 of  rental and leasing services relating to ships, 
aircraft and other high-tech transport are liberalized. Under Other Business Services, Tanzania has 
liberalized modes 1-3 of two subsectors (market research and public opinion polling services and 
                                               
5 The target liberalization dates for those sectors and subsectors subject to progressive liberalization are 
not captured in Table 3.5, but are described, where a pplicable, under the Section entitled Sector-Specific 
Provisions of this Report. 
6 Market access restrictions are lib eralized as of 2010, while national treatment restrictions are to be 
lifted by 2015. WT/REG346/1 
 
- 12 - 
 
 
  placement and supply services of personnel). Tanzania has made no commitments in Computer 
and Related Services, Research and Development Services, and Real Estate Services under the 
Protocol. 
3.24.  Under the Protocol, Uganda has liberalized modes 1-3 of a number of subsectors of 
Professional Services. In legal services and accounting, auditing and bookkeeping services, a 
restriction on branching  is to be eliminated by 2015. In Computer and Related Services and Real Estate Services, modes 1 and 2 have been liberalized, with mode 3 scheduled for liberalization by 
2015. In Research and Development Services, all subsectors are liberalized in modes 1-3 (mode 3 
as of 2012). Under Other Business Services, Uganda has liberalized modes 1-3 of 13 different subsectors. Uganda has made no commitments in Rental/Leasing Services without Operators under the Protocol. 
3.5.2  Communication services 
3.25.  Under the GATS, only Kenya and Uganda have scheduled commitments in Communication 
Services. 
3.26.  Under the Protocol, Burundi has liberalized modes 1-3 of Courier Services, modes 1-2 of 
voice telephone services (with market access restri ctions on mode 3 to be liberalized by 2015), 
and modes 1-3 of all subsectors of Audiovisual Services. 
3.27.  In its GATS Schedule, Kenya has made no commitments in Courier Services. Under the 
Protocol, Kenya has committed modes 1-2 without restriction, with mode 3 subject to a joint venture requirement until 2015. In its GATS Schedule under Telecommunications Services, Kenya has made commitments liberalizing a number of subsectors (with foreign investment limited to a 
maximum of 30%) and has undertaken the obligati ons in the GATS telecommunications reference 
paper. Under the Protocol, Kenya has made commitments in most telecommunications services
7, 
subject to a foreign investment ceiling of 30% which is due to be liberalized by 2015. Market 
access commitments for modes 1 and 2 are unbound under the Protocol (until 2015), while under 
the GATS modes 1 and 2 are either fully libera lized (for some subsectors), or subject to 
restrictions (for instance on call-back services). In Audiovisual Services in its GATS Schedule, 
Kenya has liberalized modes 1-2 of motion picture and video tape production services (excluding 
distribution), and modes 1-3 of motion picture projection services. Under the Protocol, the requirement for a joint venture for motion picture and video tape production services (excluding distribution) is to be liberalized by 2015. 
3.28.  Under the Protocol, Rwanda has scheduled no  restrictions in modes 1-3 for Courier Services 
and Audiovisual Services. In Telecommunications Services, modes 1-3 of all subsectors have been liberalized except mobile services where the number of providers is restricted to three due to the 
size of the market (with liberalization scheduled for 2015). 
3.29.  Under the Protocol, Tanzania has liberalized modes 1-2 of Courier Services and 
Telecommunications Services with mode 3 subject to a 35% local shareholders' requirement (to be 
liberalized in 2015 subject to a harmonized nation al shareholding requirement among EAC Partner 
States). Tanzania has liberalized modes 1-2 of radio and television transmission services, while mode 3 is subject to a 51% local shareholder requirement. 
3.30.  In its GATS Schedule, Uganda has made no commitments in Courier Services or Audiovisual 
Services, while under the Protocol both have been liberalized for modes 1-3. In its GATS Schedule, 
Uganda's commitments in Telecommunications Services are subject to a number of restrictions such as registration requirements, resale restrictions and use of duopoly operators. Under the 
Protocol, Telecommunications Services have been liberalized for modes 1-2. In mode 3, the entry 
of mobile operators is allowed only through the acquisition of existing local entities given a moratorium on new licences for ten years.
8 
                                               
7 As defined in MTN.GNS/W/120, except for on-line information and data/processing and code and 
protocol conversion.  
8 According to Uganda, it is anticipated that the restriction will be removed in 2020. WT/REG346/1 
 
- 13 - 
 
 
  3.5.3  Construction and related engineering services 
3.31.  In its GATS Schedule, Burundi committed modes 1-3 in Construction and Related 
Engineering Services with no restrictions but made no commitments in this sector under the Protocol. The other four EAC Parties have made no commitments in this sector either under the 
GATS or the Protocol. According to the Parties, th i s  s e c t o r  i s  u n d e r  n e g o t i a t i o n  a s  p a r t  o f  t h e  
additional commitments. However, the commitments made under the WTO are also available to the EAC Partner States as they are Members of the WTO. 
3.5.4  Distribution services 
3.32.  In its GATS Schedule, Burundi has fully committed modes 1-3 of commission agents' 
services, wholesale trade services and retailing services. Its commitments under the Protocol do not extend to the whole gambit of retailing services,
9 thus resulting in less coverage than under 
the GATS.10 
3.33.  Kenya, Rwanda, Tanzania and Uganda made no commitments in Distribution Services under 
the GATS. All have made commitments under the Protocol, for the most part liberalizing 
modes 1-3, in some cases subject to liberalization in 2013 or 2015. 
3.5.5  Education services 3.34.  Under the GATS only Rwanda has made commitments in Education Services. Rwanda has 
improved access under the Protocol by scheduling additional subsectors. All other EAC Partner 
States have liberalized modes 1-3 of most subsectors of Education Services, in the case of Kenya subject to liberalization in 2015.  
3.5.6  Environmental services 
3.35.  Under the GATS only Rwanda has scheduled commitments in Environmental Services. No 
commitments in Environmental Services have been made under the Protocol either by Rwanda or by other EAC Member States. According to the Parties, this sector is under negotiation as part of 
the additional commitments. However, the commitments made under the WTO are also available 
to the EAC Partner States as they are Members of the WTO. 
3.5.7  Financial services 
3.36.  Under the GATS only Kenya has scheduled commitments in Financial Services. 
3.37.  For Insurance and Insurance-related Services, Burundi has scheduled life, accident and 
health insurance services liberalizing modes 1-3 except for market access in mode 3 which is scheduled for liberalization in 2015. For non-life insurance services, a restriction on mode 3 limits 
shareholder capital to 33% (to be eliminated by 2015). Burundi has made no commitments in 
reinsurance and retrocession and services auxiliary to insurance. In Banking and Other Financial Services, Burundi has liberalized modes 1-3 of a cceptance of deposits and other repayable funds 
from the public; lending of all types including inter alia  consumer credit, factoring and financing; 
financial leasing; all payment and money transmission services; guarantees and commitments; money market instruments; and foreign exchange. 
3.38.  Under the Protocol, for Insurance and Insurance-related Services, Kenya has agreed to 
liberalize modes 1-2 and remove its capital limitation (one third must be owned by Kenyans) by 2015. For non-life insurance (except aviation, ma rine and engineering) Kenya has liberalized 
mode 3
11 and will liberalize other modes by 2015 (most are unbound in its GATS Schedule). For 
insurance broking services, Kenya will liberalize modes 1-3 at the latest by 2015 (under its GATS 
Schedule 60% of paid capital must be owned by  Kenyan nationals and prior approval must be 
sought to place Kenyan business with an insurer not registered under the Kenya Insurance Act). 
For agency services, Kenya will remove market access restrictions in modes 1-3 by 2015. For 
                                               
9 As listed in MTN.GNS/W/120. 
10 According to the Parties, this is a scheduling error that will be co rrected in subsequent negotiations. 
11 And national treatment limitations on mode 2. WT/REG346/1 
 
- 14 - 
 
 
  reinsurance and retrocession, Kenya has liberalized modes 1-3, removing the requirement in its 
GATS Schedule that mandatory cessions be placed  with Kenyan companies. In Banking and Other 
Financial Services, Kenya has liberalized modes 1-3 of acceptance of deposits and other repayable funds from the public; lending of all types including inter alia  consumer credit, mortgage credit, 
factoring and financing of commercial transactions; all payments and money transmission 
services; guarantees and commitments; asset management; and advisory and other auxiliary financial services. In its GATS Schedule, Kenya liberalized mode 2 of participation in issues of all 
kinds of securities and provision of services rela ted to such issues except underwriting (foreign 
portfolio investors are subject to a 40% shareholding limit); this subsector has not been scheduled by Kenya under the Protocol.  
3.39.  Under Insurance and Insurance-related Serv ices, Rwanda has liberalized modes 1 and 3 of 
life, accident and health insurance services, non-life insurance services, re-insurance and 
retrocession, and services auxiliary to insurance. The mode 2 limitation on off-shore purchase of insurance services (unless unavailable in Rwanda and with prior authorization) will be removed by 
2015. For all Banking and Other Financial Services, Rwanda has liberalized modes 1 and 2; 
residency requirements for bank managers will be removed by 2015. 
3.40.  Under Insurance and Insurance-related Se rvices, Tanzania has liberalized modes 1-3 of 
accident, life and non-life insurance, reinsurance and retrocession, and health insurance. For all 
Banking and Other Financial Services, Tanzania has liberalized modes 1-3.  
3.41.  Uganda has made no commitments in Insurance and Insurance-related Services. For all 
Banking and Other Financial Services, Uganda has liberalized modes 1-3. 
3.5.8  Tourism and travel related services 
3.42.  Burundi has liberalized modes 1-3 of all subs ectors (in addition to modes 1-3 of hotels and 
restaurants, travel agencies and tour operators'  services, and tourist guides services already 
liberalized under the GATS). 
3.43.  Kenya's commitments under the Protocol mirror its GATS Schedule.
12 
3.44.  Rwanda has fully liberalized modes 1-3 of  all subsectors of Tourism and Travel related 
Services, broadening the commitments it made under the GATS. 
3.45.  Tanzania's sole commitment under the GATS relates to hotels of four stars and above, for 
which modes 1 and 2 were not subject to restrictions; in mode 3 approval is required for foreign acquisitions of domestic firms, mergers and land. Under the Protocol, Tanzania will liberalize 
modes 1-3 of hotels and restaurants (three stars and above) by 2013, subject to harmonization of 
EAC Licensing Procedures and Fees. Tanzania has made further commitments under the Protocol for travel agencies and tour operator services. 
3.46.  Uganda has liberalized modes 1-3 of hotels and restaurants (mode 3 may be subject to 
restrictions where the Government has granted concessions). For travel agencies and tour operator services, mode 3 restrictions are to be removed by 2013 under the Protocol, thus 
improving upon Uganda's GATS Schedule. No rest rictions for modes 1-3 have been scheduled for 
other tourism services under the Protocol, while mode 3 of tourist guide services is scheduled for liberalization by 2015. 
3.5.9  Recreational, cultur al and sporting services 
3.47.  Only Rwanda has made commitments in this sector under the GATS. No EAC Member State, 
including Rwanda, has made commitments in this sector under the Protocol. According to the Parties, this sector is under negotiation as part of the additional commitments. However, the 
commitments made under the WTO are also available to the EAC Partner States as they are 
Members of the WTO. 
                                               
12 Mode 1 for hotels and restaurants is unbound in its GATS Schedule due to technical infeasibility. WT/REG346/1 
 
- 15 - 
 
 
  3.5.10  Transport services 
3.48.  Only Kenya has made commitments in Transport Services under the GATS. 
3.49.  Under the Protocol, Burundi has not sched uled any restrictions in modes 1-3 of all 
subsectors of internal waterways transport, air transport services and road transport services. 
3.50.  Under Maritime Transport Services, Kenya has liberalized modes 1-2 of maintenance and 
repair of vessels; mode 3, which was subject to a joint venture requirement, was liberalized in 2010. Under Air Transport Services, Kenya has scheduled a joint venture requirement for aircraft 
repair and maintenance services (unbound in its GATS schedule) which is to be removed by 2015. 
Mode 3 of selling and marketing of air transp ort services and computer reservation systems 
(unbound except for advertising activities and the setting up of regional sales offices in its GATS schedule) has been liberalized under the Protocol. For most subsectors of road transport, Kenya 
has scheduled no restrictions for modes 1-3 (with the exception of freight transportation which is 
scheduled for liberalization by 2015; rental of commercial vehicles with operator has not been 
scheduled for liberalization).  
3.51.  Under the Protocol, Rwanda has scheduled no restrictions in modes 1-3 of all subsectors of 
internal waterways transport, air transport servic es, rail transport services (except pushing and 
towing services which are not scheduled), road tr ansport services, and pipeline transport services 
(mode 3 of rail transport and pipeline transport services is to be liberalized by 2013).  
3.52.  Under maritime transport services, Tanzania has scheduled commitments in modes 1-3 of 
passenger and freight transportation, cargo handling services (to be liberalized by 2015) and cargo stations/depot services. Modes 1-3 of passenger and freight transportation (less cabotage) under 
air transport services are scheduled for liberaliza tion by 2015. Modes 1-3 of passenger and freight 
international road transport services have been liberalized. Cargo handling services have been liberalized for modes 1 and 2 with the joint venture requirement (65% foreigner) to be liberalized 
by 2015. 
3.53.  Uganda has for the most part liberalized mo des 1-3 of all subsectors of internal waterways 
transport, air transport services, rail transport services, road transport services, and pipeline 
transport services, except for mode 3 where the Government has granted concessions. 
3.54.  In addition to their specific commitment s in the transport sector, the Parties agree to 
undertake to coordinate and harmonize transport policies, in particular with regard to logistics and transport by road, rail, inland waterways, maritime , pipeline and air, and facilities such as ports, 
airports and inland dry ports. They agree to hono ur existing ratified agreements entered between 
the Parties;
13 to honour their existing commitments and obligations emanating from international 
conventions and agreements; and agree that they may in future enter into other agreements. The 
Council shall within three years upon entry into force of the Protocol make regulations applicable 
to railway transport, maritime transport and port  operations, pipeline transport, air transport, 
non-motorized transport, and multimodal transport and logistics (Article 38). 
3.6  Regulatory provisions 
3.6.1  Domestic regulation 3.55.  The Parties agree to regulate their services  sectors in accordance with their national policy 
objectives provided that the measures are consistent with the provisions of the Protocol and do not 
constitute barriers to trade in services (Article 20). They agree to ensure that all measures of 
                                               
13 According to the Parties these are: the Lake Victoria Transport Act (2007) which is being used to 
administer transport issues on Lake Victoria; the Part ner States have adopted harmonized axle load control 
laws and regulations in the EAC; on railways, the Part ner States have adopted the EAC railways master plan 
and are already implementing the same, e.g. the develo pment of Mombasa – Kigali standard gauge railway line 
has already started;  regarding aviation, the Partner States are in the process of implementing the 
Yamoussoukro decision on liberalization of air transport in Africa. The EAC Civil Aviation Regulations are in place, among others. WT/REG346/1 
 
- 16 - 
 
 
  general application affecting trade in services are administered in a reasonable, objective and 
impartial manner.  
3.6.2  Recognition 3.56.  Under Article 11 of the Protocol, the Parties undertake to mutually recognize the academic 
and professional qualifications granted, experi ence obtained, requirements met, licences or 
certifications granted, in other Parties; and harmonize their curricula, examinations, standards, certification and accreditation of educational and training institutions. The implementation of this 
Article is to be in accordance with Annexes to be concluded by the Parties. In December 2012, 
Kenya, Tanzania and Uganda signed a Mutual Re cognition Agreement for Professional Engineers 
that allows professional engineers from these count ries to render their services anywhere in the 
East African Community.
14 According to the Parties, other MRAs exist for accountants and 
architects. 
3.6.3  Subsidies 3.57.  The Parties agree not to grant any subsidy through resources in any form, which distorts or 
threatens to distort effective competition by favouring an undertaking, insofar as it affects trade 
between the Parties (Article 34). 
3.6.4  Safeguards 
3.58.  The Parties may apply safeguard measures in the event of serious injury or threat of serious 
injury occurring to the economy of a Partner State (Article 48). In addition, the Parties may take safeguard measures in the following circumstances: where the movement of capital leads to disturbances in the functioning of financial markets in a Partner State; where a competent 
authority of a Partner State makes an intervention in the foreign exchange market which seriously 
distorts the conditions of competition; and where the Partner State is in difficulties or is seriously threatened with difficulties as regards its balance of payments (Article 26). Conditions for the 
application of such safeguard measures are provided in Article 27.  
                                               
14 According to the Parties, Rwanda and Burundi will apply this Agreement once the relevant institutions 
are in place.  
 
  WT/REG346 /1 
 
- 17 - 
 Table 3.5 Comparison of EAC States' GATS an d Common Market commitments (Modes 1-3 only)a 
Sectors Burundi Kenya Rwanda Tanzania Uganda 
GATS RTA GATS RTA GATS RTA GATS RTA GATS RTA 
1. BUSINESS SERVICES partial
éimproved nc improved partial impr oved nc improved nc improved 
A. Professional services partial improved nc improved partial improved nc improved nc improved 
B. Computer and related services  nc improved nc improved nc improved nc nc nc improved 
C. Research and development nc improved nc improved nc improved nc nc nc improved 
D. Real estate nc nc nc nc nc improved nc nc nc improved 
E. Rental/Leasing serv ices without operators nc nc nc improved nc nc nc improved nc nc 
F. Other partial improved nc nc nc improved nc improved nc improved 
2. COMMUNICATION SERVICES nc improved partial  improved nc improved nc improved partial  improved 
A. Postal nc nc nc nc nc nc nc nc nc nc 
B. Courier nc improved nc improved nc improved nc improved nc improved 
C. Telecommunication  nc improved partial similar* nc improved nc improved partial improved 
D. Audiovisual nc improved partial improved nc improved nc improved nc improved 
E. Other nc nc nc nc nc nc nc nc nc nc 
3. CONSTRUCTION AND RELATED 
ENGINEERING SERVICES full nc nc nc nc nc nc nc nc nc 
4. DISTRIBUTION SERVICES partial  less nc improved nc nc nc improved nc improved 
5. EDUCATION SERVICES nc improved nc improved partial full nc improved nc improved 
6. ENVIRONMENTAL SERVICES nc nc nc nc partial nc nc nc nc nc 
7. FINANCIAL SERVICES nc improved partial  improved nc improved nc improved nc improved 
A. All insurance and insurance-related services nc improved partial improved nc improved nc improved nc nc 
B. Banking and other financial services nc improved partial improved nc improved nc improved nc improved 
8. HEALTH RELATED AND SOCIAL SERVICES full nc nc nc nc nc nc nc nc nc 
9. TOURISM AND TRAVEL RELATED SERVICES partial  full partial  same partial full partial  improved partial  improved 
A. Hotels and restaurant s full same full same partial improved partial improved partial same 
B. Travel agencies and tour operators full same full same nc improved nc improved partial improved 
C. Tourist guides full same full sa me nc improved nc nc nc improved 
D. Other nc full nc nc nc improved nc improved nc improved 
10. RECREATIONAL, CULTURAL AND SPORTING 
SERVICES nc nc nc nc partia l nc nc nc nc nc 
11. TRANSPORT SERVICES nc improved partial  improved nc improved nc improved nc improved 
A. Maritime nc nc nc improved nc nc nc improved nc nc 
B. Internal waterways nc full nc nc nc full nc nc nc full 
C. Air  nc full partial improved nc full nc improved nc full 
D. Space nc nc nc nc nc nc nc nc nc nc 
E. Rail  nc nc nc nc nc improved nc nc nc improved 
F. Road nc full partial improved nc full nc improved nc full 
G. Pipeline nc nc nc nc nc full nc nc nc improved 
H. Services auxiliary to all modes of transport nc nc nc nc nc nc nc improved nc nc  
 
  WT/REG346 /1 
 
- 18 - 
 Sectors Burundi Kenya Rwanda Tanzania Uganda 
GATS RTA GATS RTA GATS RTA GATS RTA GATS RTA 
I. Other nc nc partial improved nc nc nc nc nc nc 
12. OTHER SERVICES NOT INCLUDED nc nc nc nc nc nc nc nc nc nc 
a According to the Parties, in the first round of negotiations EAC Partner States negotiated an d exchanged offers in the follow ing seven sectors: business services; 
distribution services; education services; financial services; communication services; tourism and travel related services; and  transport services. Negotiations are 
ongoing in the remaining five sectors: co nstruction and engineering services; enviro nmental services; health related and social  services; recreational, cultural and 
sporting services; and other services not included elsewhere. 
 Source: WTO Secretariat, based on GATS Schedules of Specific Commitments for Burundi (GATS/SC/116), Kenya (GATS/SC/47, GATS/SC/ 47/Suppl.1 and 
GAT/SC/47/Suppl.2), Rwanda (GATS/SC/107), Tanzania (GATS/SC/84) and Uganda (GATS/SC/89 and GATS/SC/89/Suppl.1/Rev.1); and Annex  V of the East African 
Community Common Market (Schedule of Commitments on  the Progressive Liberali zation of Services).  
 Notes: The comparison only concerns modes 1 to 3, market access, national treatment, and additional commitments; it does not in clude mode 4 commitments. 
 "nc" = no commitments. * Given the different structure, it is not possible to determine whether the Protocol offers bett er access than GATS commitment s. 
 
 WT/REG346/1 
 
- 19 - 
 
 
  4  GENERAL PROVISIONS OF THE PROTOCOL 
4.1  Transparency 
4.1.  The Parties agree to promptly notify the Council of all measures of general application 
affecting the free movement of services at entry in to force of the Protocol. They shall notify the 
Council of any international agreements pertaining to or affecting trade in services with third 
parties that they are signatory to, prior to and after the entry into force of the Protocol. Each partner state shall promptly and at least annually inform the Council of the introduction of any new 
national laws or administrative guidelines, which affect trade in services (Article 19). 
4.2  Payments and capital movements 4.2.  The Parties agree to remove restrictions between the partner states on the movement of 
capital belonging to persons resident in the Community; to remove any discrimination based on 
nationality, place of residence or place where the capital is invested; to remove any existing 
restrictions and not introduce any new restrictions on the movement of capital and payments or apply more restrictive regulations; and remove restrictions relating to current payments connected 
with the movement of goods, persons, services or capital between partner states (Article 24).
15 
The implementation of the foregoing is progressive  and in accordance with the Schedule on the 
Removal of Restrictions on the Free Movement of Capital, specified in Annex VI to the Protocol. 
The free movement of capital may be restricted upon justified reasons related to prudential 
supervision, public policy considerations, money laundering, and financial sanctions agreed to by the partner states (Article 25).  
4.3  Competition 
4.3.  The Parties prohibit any practices that adversely affect free trade such as all agreements 
between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between Partner States and which have as their objective or affect the 
prevention, restriction or distortion of competition within the Community; concentrations which 
create or strengthen a dominant position and as a result of which effective competition would be significantly impeded; and any abuse by one or more undertakings of a dominant position 
(Article 33). 
4.4  Government procurement 4.4.  The Parties agree not to discriminate against suppliers, products or services originating from 
other Parties, for purposes of achieving the benefits of free competition in the field of public 
procurement (Article 35). 
4.5  Intellectual property rights 4.5.  The Parties agree to cooperate in the fiel d of IPR to promote and protect creativity and 
innovation for economic, technological, social and cultural development in the EAC and to enhance 
the protection of IPR. They agree to cooperate in  the following areas: copyright and related rights; 
patents; layout designs of integrated circuits; industrial designs; new plant varieties; geographical 
indications; trade and service marks; trade secrets; utility models; traditional knowledge; genetic 
resources; traditional cultural expressions and folklore; and any other areas that may be determined by the Parties (Article 43).  
4.6  Exceptions 
4.6.  The Protocol provides for both general exceptions (Article 21) and security exceptions 
(Article 22) along the lines of Articles XIV and XIV bis of the GATS.  
                                               
15 For the purposes of the Protocol, capital and related payments and transfers include: direct 
investment; equity and portfolio invest ments; bank and credit transactions; payment of interest on loans and 
amortisation; dividends and other income on investment s; repatriation of proceeds from the sale of assets; 
and other transfers and payments relating  to investment flows (Article 28). WT/REG346/1 
 
- 20 - 
 
 
  4.7  Accession 
4.7.  There is no provision on accession in the Protocol. Article 3 of the Treaty for the 
Establishment of the East African Community provides for the accession of countries within geographical proximity. 
4.8  Institutional framework 
4.8.  The Council
16 shall establish a framework for monitoring and evaluating the implementation 
of the Protocol to ensure that the operations of  the Common Market conform to the objectives of 
the Protocol; annually review the specific commitments and programmes of the Protocol; evaluate 
the implementation of the Protocol (every thr ee years); and assess any causes of delay in the 
implementation of the Protocol and take the appropriate measures to remedy the situation (Article 50). According to the Parties, the framework is in place and operational. Progress on 
implementation is considered by the Council biannually.  
4.9  Dispute settlement 4.9.  Any disputes between the Parties arising from the interpretation or application of the Protocol 
are to be settled in accordance with the Treaty (Article 54).  
4.10  Other areas of co-opera tion in the common market 
4.10.  Part H of the Protocol contains a number of Articles governing areas in which the Parties 
agree to coordinate their trade policy. These in clude economic and monetary policy, financial 
sector policy, harmonization of tax policies and laws, consumer protection, social policies, environmental management, agriculture and food security, and statistics. 
4.11  Relationship with other agreements concluded by the Parties 
4.11.  The Parties agree to coordinate their trade relations to promote international trade and 
trade relations between the EAC and third parties. The Council shall establish a mechanism for the coordination of trade relations with third parties (Article 37). 
4.12.  Table 4.1 shows the Parties' participation in other RTAs, notified and non-notified, in force 
as of 15 January 2014. 
Table 4.1 EAC Partner states: Participation in  other RTAs (notified and non-notified in 
force), as of 15 January 2014
 
Partner / 
Agreement Date of entry 
into force Type of 
Agreement GATT/WTO Notification 
Year WTO Provision 
BURUNDI  
COMESAa 08.12.94 Goods 1995 Enabling Clause 
KENYA 
COMESAa 08.12.94 Goods 1995 Enabling Clause 
RWANDA  
COMESAa 08.12.94 Goods 1995 Enabling Clause 
TANZANIA  
SADCb 01.09.00 Goods 2004 GATT Art. XXIV 
COMESAa 08.12.94 Goods 1995 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
                                               
16 The Council of Ministers of the Community establishe d by Article 9 of the Treaty for the Establishment 
of the East African Community. WT/REG346/1 
 
- 21 - 
 
 
  Partner / 
Agreement Date of entry 
into force Type of 
Agreement GATT/WTO Notification 
Year WTO Provision 
UGANDA  
COMESAa 08.12.94 Goods 1995 Enabling Clause 
 
Source: WTO Secretariat. 
 
a The notification of the COMESA Treaty (see WTO document WT/COMTD/N/3) was submitted on 29 June 1995. Since then, it would seem that the membership of the Treaty has evolved significantly.  
 b
 The notification of the Protocol on Trade in the SADC (see WTO document WT/REG176/N/1/Rev.1) was submitted on 27 August 2004. Since then, it would seem that the membership of the Protocol has 
evolved significantly.  
 
__________