VZCZCXRO3243
RR RUEHROV
DE RUEHKM #0511/01 0820305
ZNR UUUUU ZZH
R 230305Z MAR 07
FM AMEMBASSY KAMPALA
TO RUEHC/SECSTATE WASHDC 8474
INFO RUCNIAD/IGAD COLLECTIVE
RUEHJB/AMEMBASSY BUJUMBURA 1160

UNCLAS SECTION 01 OF 02 KAMPALA 000511 
 
SIPDIS 
 
C O R R E C T E D  C O P Y (ADDED ADDRESSEE) 
 
DEPARTMENT PASS TO USTR FOR BILL JACKSON 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KECF PGOV PREL UG
SUBJECT: UGANDA SUPPORTS EAST AFRICAN INTEGRATION BUT PROGRESS SLOW 
 
REF: KAMPALA 00488 
 
¶1.  SUMMARY:  The First Deputy Prime Minister and Minister for East 
African Affairs, Mr. Eriya Kategaya, reiterated the importance of 
East African integration for the creation of a large and viable 
economic bloc to transform the economies of the region.  Kategaya 
reported the findings of the National Committee Fast Tracking the 
Political Federation on March 14.  The Fast Tracking committee was 
set up to carry out public consultative meetings in the country to 
educate the public about the integration process.  Findings show 
that Ugandans support the federation, but have some concerns about 
how integration will affect them politically and economically.  END 
SUMMARY. 
 
--------------------- 
Fast Tracking Process 
--------------------- 
 
¶2.  The Fast Tracking process was created in response to concerns by 
member states that the pace of integration was too slow.  The new 
East Africa Community (EAC) was established following the signing of 
a treaty on November 30, 1999.  The treaty came into force on July 
¶2002.  In 2004, the heads of member states resolved to examine ways 
of fast tracking the process to hasten the ultimate goal of 
political federation.  Consultative committees for the fast tracking 
of the East Africa federation were launched in October 2006 in 
Kenya, Tanzania, and Uganda.  The process is expected to be 
completed in July 2007.  The key stages of integration include a 
customs union, a common market, monetary federation and eventually a 
political federation.  After the consultations, the government 
committees will report on their findings and formulate a plan for 
the future.  The EA committee also will hold a public referendum in 
each member state.  Elections for the federation president and 
parliament are scheduled in 2013. 
 
¶3.  Kategaya's Ministry for East African Affairs oversaw the 
process, and the committee carried out consultative meetings in 
southwestern, eastern, and central Uganda.  Consultations in 
northern Uganda will be held soon.  The exercise involved a wide 
spectrum of the public including business representatives, farmers, 
religious and district political leaders, political groups, the 
youth, women, and persons with disabilities. 
 
-------------------- 
Integration Concerns 
-------------------- 
 
¶4.  Overall most Ugandans support the idea of integration, according 
to Kategaya.  However, he said that consultations revealed that some 
Ugandans were concerned about the draft land tenure policy which 
would convert the current land policy to a freehold system from 
customary uses.  Those from the central area, primarily the Baganda 
tribe, feared their land could be grabbed and given to investors 
under a new land policy.  The same region has been seeking autonomy 
as a separate state within Uganda led by the Kingdom of Buganda. 
The members of the Baganda tribe want the land issue addressed prior 
to integration into the EAC. 
 
¶5.  The business community was concerned that Kenya would dominate 
the common market because its industries are more developed, 
although businessmen believed integration would help end smuggling 
across the border and lead to uniformity in prices for goods. 
Businesses also wanted to know how a common East African currency 
would affect the Ugandan economy.  There were mixed reactions on the 
presidency with some people demanding that the presidential post 
rotate among member states while others want current presidents to 
be barred from running in East African Community presidential 
elections.  Other issues raised included the loss of sovereignty, 
security concerns, especially in Karamoja region; payment of former 
East African Community employees; and lack of a common language to 
enhance communication across borders.  Swahili is not spoken as 
widely in Uganda as it is by its neighbors. 
 
----------------------------- 
Integration and Proposed TIFA 
----------------------------- 
 
¶6.  Uganda is finalizing an internal review of the proposed Trade 
Investment Framework Agreement (TIFA) with the United States and 
other EAC member states.  Originally, the proposed TIFA was to be 
signed by the governments of the member states, but now the member 
states are interested in signing the TIFA at the EAC level.  The 
Ugandan Minister of Trade, Tourism and Industry, Janat Mukwaya told 
econoff that Uganda, Tanzania, and Kenya intend to proceed with the 
proposed TIFA at the EAC level as a way to further legitimize the 
EAC as the entity for addressing trade issues with member states. 
Rwanda has already signed a TIFA with the United States. 
 
 
KAMPALA 00000511  002 OF 002 
 
 
------- 
Comment 
------- 
 
¶7.  The original East African Community collapsed in 1977 over 
ideological differences, generating a great deal of mistrust among 
members.  Uganda, and the other landlocked member states, Rwanda and 
Burundi, have a lot to gain from integration because there would be 
no taxes levied on their goods at ports of entry.  However, the 
business community in Uganda needs to become more developed to 
compete effectively in a larger and more developed market. 
 
BROWNING