Business community urged to report non-tariff barriers

 

 

Julius Onen, the trade ministry permanent secretary, noted that according to the Customs Union Protocol of EAC, all non-tariff barriers should be eliminated and no new ones introduced without consultation with all the member states.

 

He was speaking at the ministry in Kampala last week.

 

The non-tariff barriers include weighbridges, police roadblocks, lengthy procedures for issuing work permits, charges of plant import permits, cash bond and non-recognition of certifications by some member states.

 

“It is challenging, especially for Ugandan traders taking tea to the auction market in Mombasa because it takes a long time to get plant import permits at the Malaba-Busia border. The traders end up not making it in time for the auction,” said Onen.

 

Onen also cited the recently introduced non-tariff barrier imposed by Kenya on hides and skins transiting through the Kenyan territory. Kenya regards the commodities as imports, which contradicts the EAC trade arrangement and other multilateral trade agreements on transit goods.

 

“This requires the transiting hides and skins go through physical inspection and exporters of the products must possess transit permit after paying a fee. It also requires Ugandan exporters to posses import permits from the country of destination even when the permits are not being issued by these countries of destination,” Onen explained.

 

He noted that the requirements are affecting the hides and skins traders and over eight Ugandan companies are already feeling the pinch.

“We have already contacted our Kenyan counterparts asking them to drop the measure because they contradict the EAC integration spirit,” Onen said.

 

He added that trade barriers lead to increased cost of doing business, loss of time and in some cases loss of potential markets and bribery, especially at the road blocks and weighbridges. 

 

Onen said they agreed that roadblocks, if set, should be few and predictable and all member states should be informed so that traders are aware and adequately prepared.

 

He disclosed that they have set up a National Response Strategy for the elimination of the non-tariff barriers and set up a National Monitoring Committee, which is an inter-institutional committee comprising of the private and public sector.

 

“The National Response Strategy is a three-year project funded by Trademark East Africa to a tune of $1.4m, which will define strategies on how to eliminate domestic and regional non-tariff barriers,” said Onen.  The project was launched last year.

He revealed that under the strategy, the trade ministry has set up plans to raise awareness about the need for the elimination of non-tariff barriers through establishment of a web-based information exchange facility to report and monitor the process of eliminating the reported non-tariff barriers in real time. 

Reported non-tariff barriers should be responded to in 24 hours, said Onen.  

 

He added that joint border committees have been formed at Katuna and Mirama hills with facilitating cross border information desks, a move that is aimed at formalising cross border trade.

 

He noted that the business community needs to be sensitised about the on-going initiatives so that they can know how to be helped in case they are faced with such hardships as they trade across borders. 

 

 Onen said they have set up a business attaché at the Ugandan embassy in South Sudan to monitor complaints from the Ugandan business community operating in South Sudan.   

 

“Let no businessman or company in Uganda keep quiet about non-tariff barriers inflicted domestically or regionally. Let it be reported, we shall handle it,” Onen said.