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Eac volkan emre-0534436-last

EAC Research Paper

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Eac volkan emre-0534436-last

  1. 1. Regional Integration Lecturer : Dr. Christiane Hardenberg Report on group exercisePreparation of Group Presentation on: East African Community  Volkan Emre 0534436 Berlin, January 2012 i
  2. 2. TABLE OF CONTENTS Page1.Introduction 042.Background of the EAC 053.Main drivers for integration 064.1 Economic drivers 074.2 Political drivers 074.3 Social drivers 084.Achievements in main integration areas 084.1 Achievements in GDP & GDP per capita 084.2 Achievements in trade & trade patterns & intra-regional trade 094.3 Achievements in doing business 114.4. Achievements in tariff reduction & common external tariff 124.5 Achievements in capital movements 134.6 Achievements in Common Markets – Labor 134.7 Achievements in the attempts towards East African Monetary Union (EAMU) 134.8 Achievements in political / defense pact 145.Current integration debates 156. Main challenges 154.1 Trade related challenges 164.2 Non trade related challenges 167. Opportunities 17 ii
  3. 3. LIST OF TABLES & CHARTSTable 1 Time Table and Progress of the EAC towards Political Federation 01Table 2.1 EAC Members in Figures, 2010 06Table 2.2 EAC, EU and US in Figures, 2010 06Table 4.1.1 Changes in GDP 08Table 4.1.2 EAC in Figures, 2010 09Table 4.2.1 Growth of the Intra-Regional Trade in the EAC Countries 11Table 4.2.2 Shares of EAC members in intra-regional trade, 2009 11Table 4.4.1 Tariff Reductions in the EAC between 2005 and 2010 12Table 4.7 Achievements in OCA criteria 14Chart 4.2.1 Trade Volume (Exports+Imports) of EAC Countries between 2003 and 2008 09Chart 4.2.2 Trade Balance (Exports-Imports) of EAC Countries between 2003 and 2008 10 ABBREVIATIONS / ACRONYMS EAC East African Community EAMU East African Monetary Union EU European Union ECOWAS Economic Community of West African State SADC Southern African Development Community OCA Optimum Currency Area iii
  4. 4. 1.INTRODUCTIONThe East African Community can be classified in line with the south- south integration concepts.What makes EAC more interesting than other south – south integration examples is that the membercountries of the EAC could have establish a common market and almost achieved their aim to have amonetary union on their way to the political federation. There is a remarkable commitment backedwith a strong ambition behind the current integration in the East African Region.The Treaty establishing the East African Community (EAC) was signed on 30 November 1999 andentered into force 7 July 2000. Its original members were Kenya, Tanzania and Uganda. Burundi andRwanda became members in 2007. The goal of the EAC is to ‘widen and deepen economic, political,social and cultural integration in order to improve the quality of life of the people of East Africathrough increased competitiveness, value added production, trade and investment 1. The EAC Treatyaims to establish an export-oriented economy that will enable the ‘free movement of goods, persons,labor, services, capital [and] information technology’, as an important objective2.The establishment treaty aimed to follow four different steps of the regional integration among its EastAfrican members. Those steps are respectively: customs union, common market, monetary union andpolitical federation. Planned time frames of the different integration steps which are set in the treatyand their actual introduction dates are shown on the table below. Table 1 : Time Table and Progress of the EAC towards Political Federation Timetable EAC Customs Union EAC Common Market· Operationalised on 1st July 2005 as agreed in · The protocol on the establishment of thethe treatment EAC common market was being negotiated as of 18 June 2009 · Operationalised on 1st July 2010 EAC Monetary Union EAC Political Federation· No time frame set in the treaty · No time frame set in the treaty· Scheduled to 1st June 2012 · Unofficially aimed to be reached by 20151 EAC Development Strategy 2006- 2010, Executive Summary, available at http://www.eac.int/index.php2 Treaty Establishing the East African Community, Art. 7(c), available at www.eac.int. 4
  5. 5. Headquarters of the EAC is located in Arusha, Tanzania, which has been an important internationaldiplomatic hub in the past for East Africa and the continent. Arusha’s strategical location allows theEAC member to have easy access to the city for all member countries.Organizational structure of the EAC is quite complex as expected. The core organs can be stated asfollows: The summit, the council of ministers, the co-coordinating committee, sectoral committees, theEAC court of justice, the EAC legislative assembly and the secretariat.2.Background of the EACHistory of the EAC goes back to the early 20th century. Construction of the Mombassa – KaseseRailway between 1897 and 1901 and the significant increase in the economic activities in the regionled Kenya and Uganda to establish a customs union in 1917. Tanzania joined the customs union in1927. Both parties established the East African High Commission in 1948 which was replaced by EastAfrican Common Services Organization in 1966. Finally the first East African Community wasfounded in 1967 by Uganda, Kenya and Tanzania. But it could last only for ten years and collapsed in1977. The main reason behind the collapse of the first EAC was political rather than economic. Causeof that collapse was mainly depending on Kenya’s demand on having more seats than the otherparticipants.In year 1993, old EAC members came together again in Arusha and signed the Treaty for EastAfrican Co-operation which might be considered as the basis of the new community. East African Co-operation was replaced by the new East African Community Treaty which was signed in 1999 againby Kenya, Uganda and Tanzania. In 2007 the EAC had its final shape by adding Brundi and Rwandaas new partner states to the community.Both Sudan and South Sudan made their interest public in joining to the EAC. Since the geographicalproximity is one of the admission requirements to join to the EAC, Sudan’s candidacy is still notpossible. In addition to that, Tanzania, Uganda and Kenya are strongly opposed to Sudan’s entry to thecommunity because of Sudan’s racist actions towards non –Muslim black Africans. On the other handSouth Sudan has been warming up to the idea of joining to the EAC in the short term future. SouthSudan is a candidate country since July 2011 and has been working hard to be the 5th member of theEAC.Some figures might give better insights about the member states of the EAC in order to understandthe regions balances. Looking at the Table 2.1 , one can easily find out that Kenya is the leadingcountry of the region with the highest GDP and GDP per capita numbers. On the other hand Burundiis slightly lacking behind all of the EAC member countries which might bring the question to thefront: Is EAC really a south – south integration from Burundi’s point of view? 5
  6. 6. Table 2.1 : EAC Members in Figures, 2010 Population GDP GDP per capita ( US$ ( Millions of people) Billions) (PPP Current $) Kenya 40,5 66,2 1635 Tanzania 44,8 62,23 1423 Uganda 33,4 42,21 1263 Rwanda 10,6 12,27 1155 Burundi 8,4 3,4 405 Source: World Bank Development Indicators, 2011, Own calculationsIn order to answer such a question we should also look at EAC’s position in comparison with the othermajor regional integration blocs. Considering the figures which can be captured on the Table 2.2.below, we can argue that EAC is significantly lacking behind EU and US in terms of GDP and GDPper capita. The picture is pretty much clear that any integration attempt under the EAC can beclassified as south – south integration. However we think that looking from Burundi’s perspective itmight be indeed a North –South integration in a south – south context. Some additional informationand data on the regional disparities within EAC can be in the upcoming sections which can put morelight on our question and answer. Table 2.2 : EAC, EU and US in Figures, 2010 EAC EU US Population (2010) 138 million people 309 million people 502 million people Surface Area 1.82 million sq.km 4.32 million sq.km 9.83 million sq.km GDP (Current) $ 78.7 billion $16.2 trillion $14.6 trillion -2010 GDP per capita $ 1176 $ 31,676 $ 47,182 (Current,PPP) -2010 GINI (%) 43.2 % 30% 41% Source: WTO, World Trade Report 2010, EAC, EAC Facts & Figures Report 2011,World Bank Developmet Indicators , Central Intelligence Agency, own calculations3.Main Drivers for IntegrationEvery member state has its own political, economic and social dimensions behind regional integrationattempts within the EAC. But there are also common main drivers for integration which can be 6
  7. 7. evaluated in three different dimensions. Those dimensions are respectively: Economic, political andsocial drivers for integration3.1 Economic drivers for integrationChanges in world trading regime heavily influenced by WTO rules is playing important role in theregional integration attempts in the world and as well as in East Africa. Therefore the changing natureof the worlds trade is a dominant driver behind the integration attempts to have a better access to theworld markets. Additionally, limited and weak intra-regional trade does not allow the EAC membersto strengthen their weak domestic markets. The nature of the regional integration offers to the EACmembers to change that picture in their domestic markets just the other way around by liberalization ofthe intra regional trade.In addition to the trade side we should look at the production side too. EAC member states are alsoexpecting to benefit from the economies of scale and attract more FDI in a more integrated economicenvironment. Mobility of the cheap labor within the region is expected to decrease the productioncosts.Establishing well framed intra-sectoral linkages among member states is an another economic driverfor integration. Enlargement of the markets and intra-sectoral linkages within the EAC take placethrough regionalism due to their political economic background.3.2 Political drivers for integrationPolitical drivers for integration can be evaluated in two groups. First group is the external politicalinfluence which is mostly from the EU, that is openly supporting regional integration communities inAfrica with Cotonou Partnership Agreement. Besides the EU ,the biggest trade blocs and WTO areencouraging regional integration attempts in Africa with their special trade preferences.Second group of political drivers behind integration is domestic ones. Almost all of the EAC membercountries do have the historical ambition to increase the regional representation of the East Africa onthe old continents political platform. Other integration blocs within Africa like ECOWAS andCOMESA are generally seen as rivals in getting the benefits of the opportunities abroad.Security concerns also do play role in the integration attempts. The EAC Treaty openly includescooperation in defiance, regional peace and security3Additionally, the aim of promotion of the good governance which is set by EAC Treaty might be alsoevaluated under political drivers for integration.3 EAC Treaty, Chapter 23 , Article 123, 124 ,125 7
  8. 8. Yet again, We can claim that the political drivers influence the integration process in line with theregionalism concept.3.3 Social drivers for integrationSocial drivers are very much related to the social interactions of the region’s population andimmigration. Those issues are heavily linked with the regional disparities within the EAC.Immigration is from poor (e.g Burundi, Rwanda) to relatively rich regions/ countries (e.g Kenya,Tanzania). EAC aims to change that flows with the increasing amount of intra-regional trade and FDIswith the regional integration.Inequality in the income distribution among different social classes and as well as among membercountries (e.g Kenya vs. Burundi) gives an another motivation to the regional integration process as achallenge.Additionally, the aim to enhance the role of woman and increase their participation in the social andeconomic life, can be classified as an another social driver which is also set as a goal by the EAC inthe Establishment Treaty. But off course implementations and achievements can be questioned.4.Achievements in Main Integration AreasIn order to analyze the achievements in main integration areas, we will look at the followingdimensions below. As it is already mentioned above the EAC Community introduced ‘CustomsUnion’ in 2005 and that integration stage has been in implementation up to now. In the followinganalysis, we will take the year 2005 as a benchmark and question the before and after effects of theintroduction of the customs union in line with the possible expectations of that particular regionalintegration type.4.1 Achievements in GDP & GDP per capitaLooking at GDP figures which are shown on the Table 4.1 below, one can easily observe that GDPgrowth increased among the member states in the last decade. However it is hard to ascertain thecontribution of Customs Union on this fact. Table 4.1.1 : Changes in GDP GDP Growth 2001-2004 2005-2010 2001-2010 Burundi 15 35 63 Tanzania 32 54 126 Uganda 32 63 136 Rwanda 30 59 133 Kenya 16 38 76 Source: World Bank Development Indicators, 2011, Own calculations 8
  9. 9. We can see a very similar picture if we look at the per capita figures. Changes in GDP per capitagrowth after the introduction of the customs union in 2005 are quite remarkable but yet again thesevariables had shown attendance to grow even before the implementation of customs union in 2005.Though their growth was seem higher in relation to the previous growth before the implementation ofthe customs union. As stated Table 4.1.2 : EAC in Figures, 2010 GDP per capita Growth Rate 2001-2004 2005-2010 2001-2010 Burundi 7 18 26 Tanzania 22 44 75 Uganda 20 49 77 Rwanda 22 51 86 Kenya 7 25 39 Source: World Bank Development Indicators, 2011, Own calculations4.2 Achievements in trade & trade patterns & intra-regional tradeTrade patterns are one of the most visible indicators to analyze before and after periods of the customsunions introduction in 2005. We analyzed the trade volume and trade balance of the EAC within theobservation period between 2003 and 2008. Chart 4.2.1: Trade Volume (Exports+Imports) of EAC Countries between 2003 and 2008 Source: WTO,World Trade Report 2010, EAC,EAC Trade Report 2009, own calculationsDuring that particular time period, both export and import volumes continued to increase after customsunion. One remarkable finding that we came across was that EAC’s total trade volume was increasingmore than before. Positive differences in percentage growth were observed between 4 to 6 percents. 9
  10. 10. This increase can be partly explained by the positive effect of the market liberalization through theintroduction of the customs union for the selected time period, however the world trade patterns’positive cyclical movements might have played a role behind EAC’s trade volumes’ expansion. Chart 4.2.2 : Trade Balance(Exports-Imports) of EAC Countries between 2003 and 2008 Source: WTO, World Trade Report 2010, EAC,EAC Trade Report 2009, own calculationsDuring our analysis on the customs unions’ effects on the trade patterns we found out that theoptimistic picture in the total trade volume has been slightly changing in total trade balance of theEAC. Because EAC’s trade balance has been continuing to grow in deficit, especially after 2005. Themain reason behind that fact is the composition of the trade. Share of import are slightly more thanshare of imports. And value of imports grew relatively higher than exports, especially after thecustoms union. If we look to the sources of that distortion in the trade balance on Table 4.2.2 above,we can easily capture that trade with the rest of the world had risen significantly and expansion of theimports created the trade deficit in the EAC. Yet again we can include the worlds business cycle’supward movement in the analysis.One of te most interesting findings of our research on EAC’s trade patterns between 2003 and 2008was on intra-regional trade. As already mentioned in the economic drivers section of the paper, intraregional trade is very important for EAC members to strengthen their weak domestic markets andintroduction of the customs union was a definitively an opportunity for change. 10
  11. 11. Table 4.2.1 : Growth of the Intra-Regional Trade in the EAC Countries between 2003 and 2008 Source: WTO, World Trade Report 2010, EAC,EAC Trade Report 2009, own calculationsAccording to Table 4.2, the volume of the intra-regional trade decreased for one period and thensteadily increased after customs union till 2009. However, in reality the share of the intra-regionaltrade to total trade instead decreased after customs union (Table 4.2.1) which is not an expectedsituation for regional integration agenda of the EAC in the field of tradeIf we have a closer look at the intra-regional trade we can easily capture Kenya’s dominance with itsalmost 40 percent share in the overall intra-regional trade (Table 4.2.2). Rankings of the memberstates are very much in line with their GDP and GDP per capita rankings as well. In that regardBurundi is in the last place with its less than 5 percent share in the overall intra-regional trade. Table 4.2.2 : Shares of EAC members in intra-regional trade, 2009 Intra-regional trade in EAC Amount (million US$) Share (%) Kenya 1329 37 Uganda 946 27 Tanzania 640 18 Rwanda 497 14 Burundi 136 4 Source: EAC Trade Report 2009, own calculations4.3 Achievements in doing businessOur analysis depends on the data extraction from World Bank Development Indicators between 2003and 2010. First indicator is ‘’Progress in terms of time to start a business’’. The most remarkableimprovement was observed in Rwanda ( from 18 to 3 days) on the other hand the other fresh memberBurundi did perform badly. Starting business takes 24.6 days on average in the EAC. That averageused to be 37.2 in 2003. 11
  12. 12. Second indicator is start up procedures to register a business as numbers. The average number ofprocedures in the EAC was observed as 10.8 days which were 12.6 days in 2003. If we compare twoperiods, we can argue that there haven’t been a remarkable increase in that field. Rwanda is again themost liberal member while Uganda being the worst performer of all the EAC members.Improvements in time to export and imports in terms of days were the last indicators. There have beenvery important improvements, especially after customs union in 2005 and addition of new members in2007 (Rwanda and Burundi). Time to exports has decreased from 45.4 to 33.9 days on the other handtime to imports decreased from 68.6 to 38.8 days. Rwanda is again the champion (from 92 to 34days). No changes was observed in Burundi.Depending on the observations and findings which were briefly listed above, we can argue that theliberalization attempts could slightly increase the ease of doing business within the EAC. Of all theEAC members, Rwanda showed the biggest commitment in liberalizing its markets. On the other handBurundi showed a bad performance compared with others.4.4 Achievements in tariff reduction & common external tariff & non tariff barriersTariff reduction is a major determinant for the EAC’s ambitions towards to a better integratedcommunity. The EAC declared a ‘Five Year Phase out Plan’ to reduce internal tariff rates to zeropercent before entering to the Customs Union in 2005. Therefore we wanted to analyze the internaltariff reductions after 2005. Table 4.4.1 : Tariff Reductions in the EAC between 2005 and 2010,(%) 2005 2006 2007 2008 2009 2010 Burundi 20 16 14 13 9 10 Tanzania 13 13 13 12 12 13 Uganda 12 12 12 12 12 12 Rwanda 19 19 19 19 10 10 Kenya 12 12 12 12 12 12 Source: World Bank, World Bank Development IndicatorsAccording to the Table 4.4.1 which is constructed on the data that we obtained form world bank,current tariff rates are around 10% . It is obvious that The ‘Five Year Phase out Plan’ which aimed toreduce all internal tariff rates to 0 % have not been fully harmonizedWe should also say some words on common external tariff structure. East African Customs UnionProtocol says: The Protocol establishes a three-band common external tariff: a minimum rate of 0%, amiddle rate of 10% and a maximum rate of 25% in respect of all products imported into the region4.4 East African Customs Union Protocol, Part B, Article 12 (1),p 15 12
  13. 13. Non-tariff barriers are still in existence in the EAC. Numerous institutions in order to test goods whichare subject to the trade and several roadblocks along northern and central corridors are just two generaland simple examples. Uganda’s ban on beef and beef products from Kenta might be a specificexample.4.5 Achievements in capital movementsCapital movements are evaluated in two main groups. First group is inward direct investments.Barriers in inward direct investments have fully lifted and currently no EAC member state hasrestrictions in that. But the picture is different in outward direct investments. Outward directinvestments are not allowed in Tanzania. Additionally, outward investments in Rwanda and Burundiare depended on the approval of the national central banks. But both of the new members that joinedto the EAC in 2007 are going to gradually eliminate that barriers.Foreign direct investments in the region are in transportation, communication, tourism and energy. Wecan obviously see that the FDI composition is matching well with the developing country context,since the poor infrastructure is a major obstacle to the economic activities. Major investors in theregion are respectively: China, United Kingdom, Japan, India, Italy and the U.S.Intra regional FDIs are not playing major roles in the EAC. It is share is less than 1% of total FDIs inthe region. A very remarkable finding that we extract from EAC Trade Report 2009 is that Kenya isthe dominant source of FDIs with its more than 90% share. The second surprising finding is almost allof the Kenya’s FDI is shared by Uganda (66%) and Tanzania(31%), on the other hand new membersBurundi and Rwanda receive almost no intra-regional FDI.4.6 Achievements in Common Markets - LaborEAC established its common market in July 2010. Reflections fn the common market implementationon Labor markets could not be eaisly captured so far. But all the members state, except Tanzania areacting in line with the common market protocol in allowing the labor force to flow between members.Tanzania on the other has a progressive implementation which will continue till 2015. According tothe EAC common market regulation annex all of the member states are allowing the flow of the highskilled labor force in the region.4.7 Achievements in the attempts towards East African Monetary Union (EAMU)EAMU is aimed to be introduced on 1st June 2012. Monetary union is one of the intermediate milestones to the East African Political Federation. Besides the political motivation in further integration ,there are other reasons too. 13
  14. 14. Members want to facilitate weak intra-regional trade through harmonized payment systems andstrengthen the local characteristics of the trade patterns. Additionally, capital and financial assetaccumulation through investment flows is an important expectation. Defensive motives such asmonetary stability and resilience to external shocks can be also discussed as the other motives.There are several requirements for the monetary integration which are listed under the OCA (OptimumCurrency Area) criteria We analyzed three major requirement in order to measure the currentachievements. Table 4.7 Achievements in OCA criteria Burundi Rwanda Uganda Tanzania Kenya Annual Growth (2010)- % 4 8 5 7 5 Inflation (2010)- % 6 2 4 6 4 Inflation (October 2011)- % 13,3 7,8 30,5 16,8 18,9 Budget Deficit to GDP 15,6 13,7 7,9 11,2 8,8 Excluding Grants (2010)- % Budget Deficit to GDP 2,6 1,6 4,8 6,2 5,3 Including Grants (2010)- %Source: WTO, World Trade Report 2010, EAC, EAC Facts & Figures Report 2011,World Bank Development Indicators , CentralIntelligence Agency, own calculationsFirst requirement is inflation rate which has a upper threshold of 5%. According to the Table.4.7, thereis a tremendous increase in the inflation rates between 2010 and 2011 which is a very bad sign for theinflation requirement.Second requirement is growth rate which has a lower threshold of a 7%. This requirement also couldnot be achieved by the EAC member states.Budget deficits of 5% of the total GDP is the last requirement for the monetary integration. EACmember states are only able to fulfill that requirement if they include grants to their calculations.All in all, the requirements could not be fulfilled on the way to the monetary union which is aimed tobe established next. summer.4.8 Achievements in political / defense pactOne of the political drivers behind the regional integration attempts in East Africa is defense pact. Theregion has unstable power dynamics and disputes. EAC members are openly seeking a regionalstabilty and security. 14
  15. 15. EAC community has been very active in the diplomatic relations with that particular issue. TheNairobi Protocol for the Prevention, Control and Reduction of Small Arms and Light Weapons in theGreat Lakes Region, the Horn of Africa and Bordering States was signed in 2004 and has beenupdated up to now. Additionally, the tripartite framework between EAC, COMESA and SADC coversregional security issues in detail.Finally, the ECA-EU trading relationship’s political dimension strongly supports moves towardsmutual defense pact in the East African Region.5. Current debatesEAC has a very dynamic political nature. Current debates are on three main areas. One is about thecompetition of having the determining role within the community. Big brothers Kenya and Tanzaniaare involved. The second hot topic is the admission of Southern Sudan. It is highly likely that sooneror later South Sudan will be the 5th member state of the community. In that case the candidacy ofSudan seems to be on the table, despite the security concerns. The last ongoing debate is about thedirection of the regional integration. Monetary Union is aimed to established just in months and thereare big still big concerns among the members.6. Main challenges & ConstraintsThere are several challenges and constraints to the regional integration process in East Africa. We canclassify that challenges in two main groups. First groups is trade related challenges and the second oneis non trade related challenges.6. 1 Trade related challengesPoor infrastructure is an obstacle to the regional trade because of the lack of required facilities. A goodexample would be the road blocks in the main trade destinations of the region.Although ECA countries reached to the common market level in the regional integration, they havefailed to remove tariff barriers. Additionally the non –tariff barriers are still existing. At that point, wecan also talk about the lack of political will towards lowering the tariff rates and it also seem that thereis lack of clear guidelines regarding the implementation of trade liberalization. Lastly lack ofcompatibility with the WTO rules is also a result all of the mentioned tariff harmonization processes.The composition of the trade and the dominant share of the imports in the trade balance is an obstacleto the opportunities for intra-regional trade. EAC imports almost twice as much as it exports. Againthe components of the export goods are very simple. EAC exports mainly primary and non processedgoods and imports finished consumer goods.Another trade related structural problem is lack of diversification in the production and its negativeeffects on the intra-regional trade. 15
  16. 16. 6. 2 Non-trade related challengesProduction patterns in the EAC are very simple an dependent. Lack of economic diversification andentrepreneurship are not allowing to build up intra-sectoral linkages in manufacturing and benefit fromthe regional integration.Resources could not get mobilized by large amounts as it is expected in the regional integrationcontext. Again we can stress on the infrastructural problems . Low level of capital availability in theregional banking systems , except Kenya might be a major reason behind that challenge.High inflation rates in all of the member states might become to a very big challenge for the upcomingmonetary union. Therefore it is vital for the EAC to wait till every country fulfill that particularrequirement related with inflation rate.Irregular migration, especially from poor to reach regions might be an important threat for thedeveloping EAC countries. Under the large informal sector conditions, majority of the immigrants arepotential candidates for the black market employment opportunities and cause socio-economicproblems.Finally, overlapping memberships in different regional integration blocs is making the coordinationand regional cooperation harder for the EAC member countries.7. OpportunitiesWith its more than 100 year old historical background, current achievements and ambition towardspolitical federation, EAC might overcome the challenges in the long run and enjoy the benefits of freemovement of persons, capital labor goods and services. 16
  17. 17. References East African Community, 2011, Facts and Figures Report, available at: http://www.eac.int EAC Development Strategy 2006- 2010. Executive Summary, available at: http://www.eac.int/index.php Treaty Establishing the East African Community, Art. 7(c), available at: http://www.eac.int. Worl Bank Development Indicators,2011, available at: http://data.worldbank.org/indicator Gathii, James Thuo ,2011, African Regional Trade Agreements as Legal Regimes, Cambridge University Press, New York 17