Over the last few years there’s been quite a bit of discussion on integration and how the East Africa Community can be united into one economic block. This integration would include the unification of economic policies between the five East African States through the partial or full abolition of tariff restrictions on trade taking place among them. This is meant to lead to free trade and lower prices for distributors and consumers with the goal of increasing the combined economic productivity of the states and a better standard of living for the citizens of the member states.

The main purpose of integration is to increase welfare (well being and social support of the citizens) by increasing the GDP of its members.

Similar continental or regional economic blocks that have been established around the world are the European Union (EU), the Association of Southeast Asia Nations (ASEAN), the North America Free Trade Agreement (NAFTA) and the Union of South America Nations (USAN).

How exactly is this integration supposed to take place?

Ideally, the process should occur in the following stages:

• Preferential Free Trade Area
• Monetary Union
• Common Market
• Economic Union, Customs Union and Monetary Union

According to the East Africa Community (EAC) website, the community has achieved the following in line with the stages above;

From an economic perspective;

• Establishment of the East African Community Customs Union.
• Establishment of the East African Community Common Market
• Convertibility of the currencies of Kenya, Tanzania and Uganda
• Capital markets development and cross-listing of stocks
• Joint infrastructure development projects (e.g. Arusha-Namanga-Athi River Road)
• Reduction of national trade barriers
• Implementation of preferential tariff discount
• Free movement of stocks

From a social perspective;

• Adoption of the EAC Anthem “Wimbo wa Jumuiya ya Afrika Mashariki” in 2010
• Operationalization of the East African passport, which passport grants a holder a six month multiple-entry visa in the region
• Implementation of seven-day grace period for personal motor vehicles crossing national borders if the EAC Partner States
• Issuance of temporary travel documents to facilitate travel within the region by EAC citizens
• Abolition of student visas for East Africans
• Standardization of university fees for citizens of East Africans
• Harmonization of procedures for granting work permits

From a Political point of view;

• Signing of the Treaty for the Establishment of the East African Community in 1999
•  Joint military exercises by EAC Partner States Defence Forces
• Establishment of forum for chiefs of Police, Directors of CID and Directors of Operations and Intelligence to coordinate peace and security matters
• Joint patrols, sharing of criminal intelligence and surveillance to combat cross-border crime

From an institutional point of view:

• Establishment of the East African Court of Justice
• Establishment of the East African Legislative Assembly
• Establishment of the East African Science and Technology Commission
• Establishment of the East African Kiswahili Commission
• Establishment of the East African Health Research Commission
• Establishment of the EAC Civil Aviation Safety and Security Oversight Agency
• Establishment of EAC Chief Justices Forum

Looking at this list, we can see that there have been steps taken to achieve a Preferential Free Trade Area and a Common Market. According to the EAC deliberation has began towards the establishment of a Monetary Union and the establishment of a local currency.

This is good news and indeed progress is being made but what are the demerits of integration especially to Kenya being the largest economy in the block.

Read more on integration tomorrow: Integration, what it means to Kenya benefits and disadvantages.