CHAPTER I : THE CENTRAL AFRICAN ECONOMIC AND
CUSTOMS UNION (UDEAC)
The UDEAC was created by
the 1964 Brazzaville Treaty signed by Cameroon,
Gabon, the Central African Republic, Congo,
Chad, and Equatorial Guinea. The aim of this
Union is the creation of an integrated market
and the coordination of the different Member
States' development programs. As the currency
used in all the Member States is the CFA Franc
(Franc of the financial cooperation in Central
Africa), the integration is made easier by
free transfer of capital.
Doing business in Cameroon
implies knowing the UDEAC's institutions and
some of the rules laid down in industry and
trade matters.
I. THE ECONOMIC UNION
The Treaty determines a common
policy concerning industry, agriculture and
investment and stipulates the main benefits
that can be granted to investors by each Member
State. As far as inter-Union commerce is concerned,
the transnational companies' Code organizes
trade within the UDEAC.
The Economic Union is based both
on the harmonisation of development plans,
tourism and transport policies, and on cooperation
in industrial and agricultural matters, postal
and telecommunication services.
It is up to each Member State
of the Economic Union, to submit any project
which might seem interesting to the general
secretary of the Union who will then transmit
the information to the other Member States.
II. THE CUSTOMS UNION
Regarding the Customs Union, the
Member States have determined a common customs
rate for trade outside the Union and common
rules in matters of criminal law.
A uniform tax regime has been
created for companies which produce the Union's
industrial products. The companies which are
granted this regime, are exempted from all
internal tariffs.
III. THE UDEAC'S INSTITUTIONS
The UDEAC is ruled by : the Head
of States' Counsel (conseil des chefs d'Etat),
the executive committee (comité de
direction) and the general secretary.
The highest authority is the Head
of States' Counsel.
The executive committee is in
charge of the harmonisation of development
policies and tax systems. This institution,
composed of the ministers of finance or the
ministers of economic development of the Member
States, determines the rate of tariffs and
taxes imposed on the internal turnover.
The general secretary is in charge
of the application of the Brazzaville Treaty
as well as the decisions made by the counsel
and the executive committee.
In addition to the Brazzaville
Treaty, a common central bank has been created
for further cooperation. This bank, called
Banque des Etats de L'Afrique Centrale (Central
African Countries' Bank), regulates the common
currency and exchange control.
