The Protocol Establishing the East African Customs Union was signed by the three Heads of State on 2nd March, 2004, and came into force on 1st January, 2005. The key objectives of the Customs Union as provided for under Article 3 of the Protocol is to further liberalize intra-regional trade in goods on the basis of mutually beneficial trade arrangements among the Partner States; promote efficiency in production within the Community; enhance domestic, cross border and foreign investment in the Community and promote economic development and diversification in industrialization in the community Partner States.

To achieve these objectives the Partner States undertook to eliminate tariff and non-tariff barriers among them, simplify and harmonize trade formalities, produce and exchange customs and trade statistics and information in order to create the most favorable environment for the development of regional trade.

This report is developed in order to assess the impact of the Customs Union entailing a compilation of trade data and analysis of the trade flows covering EAC intra trade, external trade and investment for the period 2005 in comparison to preceding years.

The analysis indicates that the total intra-EAC trade increased steadily between year 2002 and 2005. The total intra EAC trade in terms of value increased by 14.8 percent in 2003, 17.6 percent in 2004 and by 21.2 percent in 2005. The total intra EAC import increase was 18.5 percent in 2003, 14.7 percent in 2004, and 33 percent in 2005. The Country performance indicates that Kenya 's intra EAC imports in value as a percent of Kenya 's total imports increased marginally from 0.6 percent in 2002 to 1.0 percent in 2005. On year to year basis the Kenya 's intra EAC imports growth was 71.7 percent in 2003, 20.5 percent in 2004, 47.4 percent in 2005. Tanzania's intra EAC imports growth was 20.1 percent in 2003, 19.3 percent in 2004 and 29.7 percent in 2005 while Uganda's intra EAC import growth was 14.9 percent in 2003, 12.7 percent 2004 and 32.7 percent in 2005. The total intra EAC exports increase was 12.5 percent in 2003, 19.5 percent in 2004, and 13.7 percent in 2005. Export data shows that Kenya 's exports to the EAC grew

EABC's institutionalization at the EAC has been submitted and discussed at the EAC for sometime now.

Under institutionalization of EABC, EAC Secretariat re-affirmed its commitment towards the follow-up of the request by EABC to be recognized as an Institution of the EAC. EABC had requested that when the guidelines for creating a collaborating institution is finally approved by the Council of Ministers, EABC's request should be considered concurrently because it is already on the agenda of Council and the process of developing guidelines for admission of collaborating EAC institutions is part of that process. This will help EABC not loose the six month period set for considerations of applications for collaborating institutions.

Common Market Negotiations Forum for Business and Economic Stakeholders: the Forum is planned for this mid year (2008) and shall be organized under the EAC sensitization program on the Common Market. EAC will be the main organizer while EABC plays a mobilization role to ensure that the wider private sector fully attend and participate in the above meeting. A work group is to be set up to discuss details of actualizing the above.

Tentative Dates: 8th - 9th May 2008; Venue: Ngurudoto Mountain Lodge, Arusha

Following the successful 1st media summit held in April 2001 in Nairobi , it was agreed that the 2nd EAC-EABC Media Summit be held in Dar es Salaam . This will be a joint program between EAC & EABC. Support from IPP group will be sought as had been promised in 2007.

Dates: 10th - 11th April 2008; Venue: Movenpick Hotel, tentatively.

In-order to facilitate dialogue and greater understanding between Public and Private Sector; considering the fact that EAC Integration process is expected to be people centered and private sector driven, a dialogue based on Thematic Areas (e.g Barriers to Trade, Counterfeits etc) if to be jointly organized between EAC & EABC and held in the third quarter of 2008. Targeted participants will be Officials of relevant regulatory and trade/investment facilitating departments, members of academics, civil society, Trade Associations and EAC Secretariat officials.

Dates: 3rd - 5th September 2008; Venue: to be agreed later.

When the consultants to carry out both effects and policy evaluation of counterfeits are engaged, they will work closely with EABC among other stakeholders. Other specific tasks for EABC would be determined later.