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01/01/2005:

"New era as East Africa becomes a tax bloc"

The East African Community (EAC) Customs Union was launched yesterday, ushering in a new economic era for the countries of the region.

But a cloud hung over the launch because of differences over a demand by Uganda which wants some of its industries protected.

Uganda presented a list of 174 items which it wants protected.

If the Ugandan demand is accepted, then Kenya, which has a high volume of trade with its eastern neighbour, is likely to suffer considerable economic damage.

One of the effects of the demand would be to open the Kenyan market to the duty free export of Ugandan goods, while at the same locking out certain Kenyan products from Uganda.

Full Article : eastandard.net