Online resolution of non-tariff barriers excites TradeMark

The
introduction of online systems for reporting and resolving non-tariff
barriers (NTBs) between Uganda and Tanzania has cut by 65 per cent, time
taken to resolve
NTBs in the region.

The
time saver has attracted the commendation of TradeMark East Africa
(TMEA) at the Uganda-Tanzania Business Forum in Munyonyo, Kampala on the
side-lines of
the two countries’ Joint Permanent Commission (JPC) Ministerial
meeting.

“I
am glad to report that the last EAC Common Market score card reported a
65 percent decline in time taken to resolve NTBs in the region,” said
TMEA Acting
Country Director,” Ms Damali Ssali.

 “I am also delighted to report to Amb. Julius Onen (Trade Ministry Permanent Secretary) that this NTB reporting
system, that was implemented by your ministry, has been recognized by the World Trade Organisation (WTO).

WTO,
she said, sees the system as a revolutionary tool for trade
facilitation and “will be presented at the WTO public forum in Geneva
in October this year,”
said Ssali.

The development is seen as a big step forward in elimination of NTBs that hinder trade between the two countries.

Supported
by TMEA, the project focused on improving mechanisms for elimination of
cross-border NTBs through improved reporting by the private sector and
expeditious
coordination by the trade ministry for remedial action.

It
also involved putting in place a communication and advocacy strategy to
eliminate trade hurdles and realigning national trade laws, regulations
and agency
structures to streamline trade.

TMEA has since partnered with EAC to implement a number of trade facilitation projects.

With
respect to Tanzania and Uganda, TMEA supported the development of
Mutukula One Stop Border Post which was launched by the two heads of
state in Nov 2017.

Ssali
said the organisation intends “to rollout our cross-border trade
strategy at Mutukula to support informal, small and medium traders from
Tanzania and Uganda
to trade easily.”

NTBs are a major contributor to the cost of doing business in Uganda and the EAC generally.

The landlocked countries suffer the greatest loss from NTBs due to distance from the main ports of Mombasa and Dar es Salaam.

The
most widespread NTBs are poor road infrastructure, delays at border
crossings and lack of harmonized import and export standards and
procedures.

For example some certified exports from Uganda are subjected to fresh inspection in Tanzania by its bureau of standards.

Amb Onen said failure to “resolve an NTB in 48 hours would lead to the collapse of trade.”

Ssali
promised to support additional trade enhancement initiatives between
Tanzania and Uganda in the areas of ICT and infrastructure.

“Work
on automating of the issuance of certificates of origin in both
countries is already underway and we hope to complete the exercise this
financial year,”
she observed.

In
Tanzania, civil works on improving infrastructure in Kigoma on Lake
Tanganyika have commenced and this is expected to facilitate exports to
the DRC.

In Uganda, design works for the Goli Mahagi One Stop Border Post and the Ntoroko Kasenyi on Lake Albert have already commenced.

Ssali
welcomed the revival of the Mwanza-Port Bell route on Lake Victoria
that will provide access to inputs to industries and exports between
Tanzania and Uganda.

“It
is recognized world over that neighbours are natural trading partners. I
therefore, take this opportunity to congratulate the two countries on
the efforts
taken to improve trade,” said Ssali.

Established
in 2010, TMEA’s main aim is to promote economic development in all East
Africa Community states by supporting trade facilitation.

Its
new strategy is expected to see a reduction of barriers to trade,
improved business competitiveness and take 2.6 million people out of
poverty in the region.

TMEA also encourages export-led growth by supporting the production of higher value added tradable products.