lower protection afforded by the EAC CET and fears that firms would not adjust to a 25% maximum CET, or would relocate to Tanzania or Uganda have not been realised. An intraregional division of labour is developing, which results in basic import-processing relocating to the coast to supply the hinterland. The final stages of import-processing (especially those bulky finished goods that involve high transportation costs) and natural-resource based activities are moving up-country and up-region, either within value chains of large companies or different segments located by firms in different countries. Trade in goods and services has already increased as service provision to Kenyans and Tanzanians is already important for Uganda (in education and in health). Kenya exports financial services, for example via the Kenya Commercial Bank and purchase and upgrading of local operators in Tanzania, Uganda and Sudan. Uganda hopes integration will help support its tourism potential through integration with established regional circuits. There are signs of a business culture oriented to making profits through economies of scale and not on protectionism. Trade negotiations The EAC negotiates with trade partners on behalf of all member countries. Negotiations in 2014 for an EU-EAC Economic Partnership Agreement (EPA) ran into difficulties with the January 2014 negotiating session failing to conclude the negotiations, which were scheduled to be completed before 1 October 2014. This caused tensions between Kenya and other countries as Kenya, which is not a Least Developed Country, stood to lose most from the failure to reach agreement. Discussions are also under way between the EAC and the USA on the launch of Trade and Investment Partnership (TIP) negotiations. Poverty reduction EAC that have economies have large informal sectors, unintegrated with the formal economy and large business. The concerns of large-scale manufacturing and agro-processing concerns are not broadly shared by the bulk of available labour. Research suggest the promised investments on the conditions of life of the region's overwhelmingly rural poor will be slight, with the significant exception of agro-industrial firms with out-grower schemes or that otherwise contribute to the co-ordination of smallholder production and trade. It is informal trade across borders that is most often important to rural livelihoods and a customs union is unlikely to significantly impact the barriers that this faces and taxes are still being fixed separately by countries. However, the introduction of one-stop border posts being introduced and the reduction in tariff barriers are coming down