MPs discuss Tanzania's 25% tariff slap on Ugandan exports
Dec 08, 2011
East African Community (EAC) states need to negotiate as a bloc if they are to attract market in European Union, Members of Parliament have advised.
By Patrick Jaramogi
East African Community (EAC) states need to negotiate as a bloc if they are to attract market in European Union, Members of Parliament have advised.
The MPs on the committee of Trade and Agriculture of Parliament also noted that EAC states need to have harmonized trade partnership if trade is to bolster in the region.
The legislators made the remarks during the Southern and Eastern Africa Trade, Information and Negotiations Institute (SEATINI)-Uganda breakfast meeting held at the Imperial Royale yesterday.
The meeting reviewed the current Economic Partnership Agreement (EPA) negotiations between EAC and the EU.
“As we initiate mechanisms of negotiating as a bloc, we are saddened by the move by one of our member states (Tanzania) move to slap a 25% tariff on Ugandan goods. This is not fair to the spirit of East African Cooperation,” Auru Anne (Moyo Woman MP) told New Vision.
Auru who sits on the committee of trade of Parliament said negotiating as a bloc would be hard if partner states don’t cooperate on trade related issues within the region.
Oleru Huda Abason said they would take up the matter as a committee on trade in Parliament. ‘We need harmonization of trade related issues in the region,” she said.
Mugabi Muzaale (Buzaaya-Kamuli) said mechanisms should be in place to have a uniformed discussion on trade related issues in the region.
SEATINI Uganda Executive director Ambassador Nathan Irumba said negotiating as a bloc would help EAC to foster smooth trade relations with the EU.
“We need to follow what is going on in the World Trade Organisation (WTO) because they pass regulations which we are supposed to implement, but we also need to have common tariff among all EAC partner states,” said Irumba.
Last week Tanzania slapped a 25% tariff on goods manufactured and exported to Tanzania as finished products by Ugandan companies.
The new measures that were announced last week has pushed Ugandan manufacturers exporting into Tanzania to pay a 25% Common External Tariff (CET).
Uganda won concessions from her East African partners in the regional integration process to continue exempting its manufacturers from paying import duty on a list of 135 industrial inputs when the CET initially came into force in 2005.
Like the duty remission scheme the list was supposed to lapse at the end of last year but was extended after sustained pressure from the countries’ industrialists.