ARUSHA, Tanzania An East African community to be established in July is designed to be styled like a mini-European Union, and eventually become even closer politically than that body. Under a draft treaty, the member states undertake to establish a common market, subsequently a monetary union and ultimately a political federation. Plans to sign a community treaty on July 30 were endorsed in the northern Tanzanian town of Arusha on Friday by the presidents of Kenya, Tanzania and Uganda, who left the way open for accession by Rwanda and Burundi. A similar community grouping Kenya, Tanzania and Uganda was established after independence in the early 1960s but foundered in 1977.

The three countries are now all following similar policies, privatizing parastatals and liberalising their economies. Already in place, under East African Cooperation, inaugurated in November 1994. President Benjamin Mkapa of Tanzania suggested at Friday's summit that, sectorally, special incentive packages might be needed for disadvantaged member states. Kenya has the dominant economy of the region. Uganda, Rwanda and Burundi, all landlocked, use both Kenyan and Tanzanian ports for their imports and exports.

Kenya and Tanzania each have a population of some 30 million, with Uganda's at about 20 million. Rwanda and Burundi each have a population of some six million. Major industries in the region are coffee, tea, tourism and horticulture, but the economies of both Rwanda and Burundi have been battered by civil wars. (AFP)