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KEPSA ENGAGES IN EABC NATIONAL DIALOGUE TO ADVANCE TRADE-IN-SERVICES POLICY IN THE EAC
- Published On: 2025-02-12
KEPSA participated in the East African Business Council (EABC) two-day National Dialogue Consultative Meeting, which aimed to develop a trade-in-services policy advocacy agenda and establish mechanisms for sustained dialogue on the liberalization of services trade within the East African Community (EAC). The meeting was held from 11th to 12th February 2025 in Nairobi.
During the meeting, Mr. Geoffrey Kamanzi, Policy Manager for Trade in Services, spoke on behalf of Mr. Adrian Njau, Acting Executive Director of the EABC. He emphasized the importance of business leaders championing efforts to unlock the full potential of the services sector as a key driver of economic growth in the region. Globally, services contribute to 35%-40% of GDP in low-income countries, and up to 75% or more in high-income economies, underlining their significant role in structural transformation.
The workshop, sponsored by GIZ, identified the challenges and opportunities associated with implementing advocacy priorities for trade in services. A SMART (Specific, Measurable, Achievable, Relevant, Time-bound) Regional Services Policy Advocacy Agenda was also agreed upon.
The following challenges and opportunities were highlighted:
Challenges:
- Partner states continue to maintain numerous restrictions and non-conforming measures in their national laws, hindering the free movement of services.
- Restrictions on the free movement of services and professionals.
- Insufficient data and evidence base for informed policy and business decision-making.
Opportunities:
- Potential for the liberalization of trade in services across various sectors.
- Opportunities to enhance regional cooperation and economic integration.
The key advocacy priorities agreed upon during the meeting include:
- Liberalization of Trade in Services: Both the seven agreed sectors and the five unliberalized sectors.
- Liberalization of EAC Air Transport Services: Focus on the domestication of EAC transport services.
- Free Movement of Workers: Harmonization of work permit regimes and schedules for workers.
- Harmonization of Domestic Taxes & Abolition of Discriminatory Taxes: Including Excise, VAT, and Y Taxes.
- Reduction of the Cost of Doing Business: Specifically in telecommunications (ONA) and transport, including the central and northern corridors, as well as ports in Mombasa and Dar es Salaam.
In conclusion, it was agreed that as the team collects input from across the EAC towards these advocacy priorities, it is essential to establish an institutional framework to support dialogue and advocacy on service issues at the EAC level. This framework should be sustained through the EABC focal points and other innovative channels. Ensuring the implementation of country-specific commitments to the Common Market Protocol related to trade in services will set a strong foundation for the finalization of negotiations for additional services.