Trade policy needed, report suggests
Jan 09, 2007
The Government needs to put in place a comprehensive trade policy if trade is to serve as a tool for development, a report has recommended.
By Lillian Najjuma
The Government needs to put in place a comprehensive trade policy if trade is to serve as a tool for development, a report has recommended.
The Southern and Eastern Africa Trade, Information and Negotiation Institute 2005 report explained that the current trend does not have many prospects for Uganda’s future trade.
The report said Uganda’s trade balance has continuously declined in the last decades.
“Expenditure on imports has been growing at a higher rate than export earnings, leading to unfavourable trade balance.
Imports are mainly consumable, intermediate and capital goods.
The high demand for capital goods arises from high capital requirements for investment in the industrial, transport and communication sector,†the report explained.
The report said agriculture contributes 44% to Gross Domestic Product, with coffee as a major export.
The report stated that from 1994 to 2001, imports grew at an average annual rate of 7.6% compared to 1.2% for exports. The trend has been partly due to narrow export base and export of non-processed products.
The Government needs to put in place a comprehensive trade policy if trade is to serve as a tool for development, a report has recommended.
The Southern and Eastern Africa Trade, Information and Negotiation Institute 2005 report explained that the current trend does not have many prospects for Uganda’s future trade.
The report said Uganda’s trade balance has continuously declined in the last decades.
“Expenditure on imports has been growing at a higher rate than export earnings, leading to unfavourable trade balance.
Imports are mainly consumable, intermediate and capital goods.
The high demand for capital goods arises from high capital requirements for investment in the industrial, transport and communication sector,†the report explained.
The report said agriculture contributes 44% to Gross Domestic Product, with coffee as a major export.
The report stated that from 1994 to 2001, imports grew at an average annual rate of 7.6% compared to 1.2% for exports. The trend has been partly due to narrow export base and export of non-processed products.