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COVER STORY

EAC Customs

union:

South Sudan

seeks

extension

President Salva Kiir(FILE PHOTO)

outh Sudan is likely to seek an this year, in a market that was already EAC Customs protocols, according to
Sextension to become compliant with depressed due to oversupply. the schedule, as this would further dent
the requirements of the East African The pronouncements were made on the its coffers, further complicating the
Community (EAC) customs union, an sideline of a three-day event, in Nairobi country’s revenue challenges.
official said on September 11. that brought together policy makers and In July, the East African Community
Aggrey Tisa Sabuni, presidential advisor academia from the six partner states to clocked 10 years since the
on economic affairs of South Sudan told review the level of trade in the economic operationalization of its the Common
Xinhua in Nairobi that the period of bloc. Market Protocol, to guarantee free trade
three years that his country was granted South Sudan became a member of the and movement of people in the region.
to ready itself to assume its role and six-country trading bloc in 2016, but The Common Market Protocol came
responsibilities is not sufficient. is yet to fully implement the customs into force on July 1, 2010, providing
He said “The likely course of action is union and common market protocol. for free movement of goods, persons,
that we will require an additional period Sabuni noted that for his country to capital, labour and services; the right of
of not less than one year to implement implement the customs union it will establishment, and the right of residence.
the EAC customs union protocol due require to undertake reforms of its The Customs Union is the first
to challenges of legal frameworks and immigration, customs, taxation and Regional Integration milestone and
capacity issues,” Sabuni said on the labor laws. The custom union requires critical foundation of the East African
sidelines of the high-level conference on member states to remove internal tariffs Community (EAC), which has been in
EAC trade integration. for goods produced within the region force since 2005, as defined in Article 75
South Sudan, battered by years of and maintain a common external tariff of the Treaty for the Establishment of the
conflict and corruption, is currently for goods imported into the economic East African Community.
facing serious forex challenges, and is bloc. The core objective of any customs
said to have run out of foreign exchange Sabuni expressed concerns that his union is, as it should be, to enable
reserves. According to senior central country is likely to experience loss of the Partner States under the treaty to
bank official, the country is unable to revenue of import duty that is currently enjoy economies of scale, with a view
stop the pound’s depreciation. charged on goods from the EAC partner to supporting the process of economic
The currency of Africa’s youngest states once it fully operationalizes the development through the establishment
nation has been in free fall for months, customs union. of a Single Customs Territory.
negatively impacted by the tumbling “On the other hand, South Sudan At 10years, the EAC customs union is
oil production and alleged corruption consumers will benefit from lower cost indeed a milestone, whose growth and
that have led to the weakening of the of consumer goods from the region,” he economic transformation faster EAC
country’s currency. Moreover, global said. integration is however hampered by
demand for oil has been suppressed The message is made, South Sudan is funding. Another challenge remains the
since the onset of the pandemic early apprehensive of implementation the low public awareness about the Treaty

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