Uganda-COMESA trade deficit to rise above $210m
UGANDA'S trade imbalance with the Common Market for Eastern and Southern African (COMESA) countries is slated to rise beyond $210m (sh388.5b) unless the country joins the Free Trade Area (FTA), Uganda Manufacturers Association’s (UMA) executive director has said.
By David Muwanga
UGANDA'S trade imbalance with the Common Market for Eastern and Southern African (COMESA) countries is slated to rise beyond $210m (sh388.5b) unless the country joins the Free Trade Area (FTA), Uganda Manufacturers Association’s (UMA) executive director has said.
“The trade imbalance is due to unfavourable trade balance with Kenya that increased from $191.3m (sh353.9b) in 1997 to 210.5m (sh389.4b) in 2003. This will increase unless we join the free trade area,†Hilary Obonyo said.
“Uganda’s balance of payments with COMESA is unfavourable only when Kenya is included. In 2003, Uganda had a deficit of $176.9m (sh327.2b) in the COMESA trade from 111.9m (sh207b) in 1997. However, before ratification of the trade area in 2000, Uganda’s balance had reduced to $75.3m (sh139b),†Obonyo said.
He said in addition to trade between the 11 member states of COMESA, FTA is not subject to inter-state tariffs because most goods are zero-rated.
Obonyo said in an interview that Uganda faces tariff barriers from the states.
He said during the launch of the free trade area, member states agreed that trade between COMESA FTA and non-COMESA FTA members would be conducted on the basis of reciprocity.
“Uganda is facing stiff competition because her goods are taxed,†Obonyo said.
UGANDA'S trade imbalance with the Common Market for Eastern and Southern African (COMESA) countries is slated to rise beyond $210m (sh388.5b) unless the country joins the Free Trade Area (FTA), Uganda Manufacturers Association’s (UMA) executive director has said.
“The trade imbalance is due to unfavourable trade balance with Kenya that increased from $191.3m (sh353.9b) in 1997 to 210.5m (sh389.4b) in 2003. This will increase unless we join the free trade area,†Hilary Obonyo said.
“Uganda’s balance of payments with COMESA is unfavourable only when Kenya is included. In 2003, Uganda had a deficit of $176.9m (sh327.2b) in the COMESA trade from 111.9m (sh207b) in 1997. However, before ratification of the trade area in 2000, Uganda’s balance had reduced to $75.3m (sh139b),†Obonyo said.
He said in addition to trade between the 11 member states of COMESA, FTA is not subject to inter-state tariffs because most goods are zero-rated.
Obonyo said in an interview that Uganda faces tariff barriers from the states.
He said during the launch of the free trade area, member states agreed that trade between COMESA FTA and non-COMESA FTA members would be conducted on the basis of reciprocity.
“Uganda is facing stiff competition because her goods are taxed,†Obonyo said.