All the member states of the East African Community (EAC) are also members of the World Trade Organisation (WTO) and are obliged to adhere to its rules on regional integration. The WTO agreements recognise the creation of regional trade agreements as exceptions to the Most-Favoured-Nation (MFN) principle of non-discrimination. The WTO’s General Agreement on Tariffs and Trade (GATT) allows the formation of customs unions, like EAC, and Free Trade Areas, provided the strict criteria of Article XXIV are met. Similarly, Article V of the General Agreement on Trade in Services (GATS) provides for the creation of Economic Integration Agreements (EIAs) for the liberalisation or facilitation of trade in services.

The purpose of this trade brief is to consider the relevant provisions under GATS for the preferential liberalisation of trade in services within the context of the East African Community (EAC) and then to assess the compliance of the EAC Common Market Protocol with World Trade Organization (WTO) law.

The brief discusses the multilateral rules for the establishment and notification of Economic Integration Agreements (EIAs). Thereafter the relevant parts of the EAC Common Market Protocol insofar as they relate to trade in services will be discussed in the context of the multilateral requirements before an assessment of legal compliance is made.

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