By Juma Kwayera

The East African Community marked its 10th anniversary since its inception in 1999 against a backdrop of suspicions among the five-member states over the political and economic domination by Kenya.

As the clock ticks towards total elimination of intra-region tariffs next month, the temptation to uphold current tariff regimes and deference of coming into effect of the envisaged common market next July are pointers that the road to a political federation in 2013 is still bumpy.

The anniversary marked on Friday in Arusha heralds the collapse of trade borders in the region and the launch of the East African Common Market in July. It will be the first-ever common market in Africa.

The passive resistance manifests in the form of general calls to extend the expiry period for the graduated reduction of duty on exports from Kenya until the other economies in the region can compete equally.

Fears of Kenya dominating other economies are not just limited to industrial products. In the lead-up to the Friday celebrations in Arusha, Tanzania, Prime Minister Mizengo Pinda told journalists in Dar es Salaam that his country was still suspicious of the provision on residency and nationality.

Mr Pinda left no doubt that Dar es Salaam is still sceptical about its citizens’ preparedness to hold off competition for skilled labour and other opportunities.

Tanzania, with a landmass nearly twice the size of Kenya, Uganda, Rwanda and Burundi combined, is the most politically stable of the five EAC members. However, its response to political and economic integration has often been perceived as xenophobic although its nationals, goods and services enjoy unrestricted access in neighbouring countries.

The point of divergence, the Prime Minister says, are some of the portions in EAC treaty, such as the five-year residency period that qualifies citizens of the region for the nationality of another member state.

"We still have reservations about the clause on residency and nationality. Tanzanian will review its options as we are wary of an influx of foreigners seeking citizenship," the PM told BBC Swahili Service on Wednesday.

Such recalcitrance has cast doubt on Tanzania’s commitment, with other member-states calling for Dar’s exclusion to give it time to decide whether to remain in the bloc or quit.

Proposals for phased-integration to allow Tanzania to pace its own interaction with the rest of East Africa remain on the cards even as other countries bide for an opportunity to join the bloc. The countries that have expressed interest include the DR Congo, Southern Sudan, Ethiopia, Eritrea and Somalia.

Pinda had spoken of the benefits accruing from economic integration at an EAC summit on Customs Reforms and Implementation in Arusha the previous week.

"Contrary to earlier perceptions that the Customs Union would negatively affect the economies of some partner states in revenue erosion and competitiveness, major benefits have accrued in terms of increased trade and revenue," he said.

It is estimated that impact of the Customs Union has translated into intra-EAC trade valued at $2.72 billion (Sh204 billion) last year from $1.85 billion (Sh139 billion) at inception in 2005. Implementation of the Customs Union has been progressive since 2005 through a phased removal of tariffs on intra-EAC trade.

When the East African Community Customs Union protocol was signed in March 2004, it was agreed 25 per cent duty was imposed on Kenyan experts ostensibly to protect Tanzanian and Ugandan industries from Kenyan products.

The five-year period was granted to Tanzania and Uganda to enable them to inject efficiency in their manufacturing and service industries where Kenya has a clear advantage.

With the closing of this window, fresh disagreements over the tariff structures are expected.

"There have been attempts by some member states to stay the tariff regimes. We do not object to it as long as there are genuine concerns. However, this must not blind us from the fact that the commitments we make are binding," Kenya’s Minister for EAC Affairs, Amason Jeffa Kingi, told The Standard on Sunday from Arusha.

The ideological and personal disagreements that precipitated the break-up of the initial attempt at economic and political integration were addressed at the onset of EAC with the creation of the legislature, the judiciary and the executive.

The integration process, says Kingi is based on four pillars: customs union, common market, monetary union and political federation.

"Our major achievement is realisation of the customs union in 2005 and the launch of the common market next year. This means effective midnight December 31, the borders that separate member-states will collapse and we shall remain with one common border in respect of external trade," observes Kingi.

Despite EAC citizens voting in 2007 against political federation planned for in 2013, the East African Law Society Communications and Information Officer Bobi Odiko says the regional bloc has overcome suspicions that initially dogged it .

"When you travel in the five countries, you get the impression that the citizens are beginning to appreciate the merits of free movements of labour, goods, services and people," says Odiko.

Save for inconsistencies in the implementation of the protocols, with Tanzania still reluctant to grant residence permits to nationals of Kenya, Uganda Rwanda and Burundi.

The launch of the EAC Customs Union on December 31, 2004 marked the introduction of common external tariffs and internal tariffs for extra regional imports and intra-regional trade, respectively.

Based on the principle of asymmetry, Uganda and Tanzania were allowed to charge tariffs on Kenyan exports at 10 per cent and 25 per cent reducing by two per cent and five per cent every year for five years respectively.

Odiko, says, "Tanzanians and Ugandans have taken advantage of the asymmetrical balance of the Customs Union to bolster their economiesa."

The monetary union is the third pillar in the EAC integration process and is envisaged for 2012 ahead of a political federation in 2013.