Exporters want fast review of Rwanda, Burundi FTA
Daily Monitor, Uganda
Exporters want fast review of Rwanda, Burundi FTA
Robert Mukombozi, Kampala
28 January 2006
The government has crossed the threshold in reviewing the Free Trade Agreement with Rwanda and Burundi.
The Daily Monitor has learnt that the ministry of Finance, Planning and Economic Development and the Uganda Manufacturers Association have embarked on efforts to endorse the agreement following complaints of delays by manufacturers.
Local manufacturers have expressed concern over delay by the government to sign the FTA claiming it has made trading amongst the countries in question more complicated.
"We understand the costs behind the delay in signing the agreement. In fact it is not only affecting manufacturers but also the entire economy. It is however a noble point to note that we are still closely reviewing the agreement to avoid loopholes before endorsing it," the UMA Chairman, Mr Abid Alam, said.
Alam explained that the exercise would enable both the manufacturers and the government to identify and work accordingly on any provisions of the agreement that may raise relative outstanding concerns in multilateral trading between Uganda, Rwanda and Burundi.
Mukwano Group of Companies, which exports to Rwanda, Burundi, Kenya, Democratic Republic of Congo and Southern Sudan, among other companies insists the agreement, should be signed immediately in order to waive customs duties.
The affected companies further point out that the common understanding would widen Uganda’s market opportunities for her manufactured goods.
Like Kenya and Egypt among the majority of other Common Markets for Eastern and Southern Africa member states, if Uganda signs the pact, it will enjoy tax free into Rwanda and Burundi markets. This means, Uganda will be excluded from countries that have to forfeit six percent customs duty.
"We need to get the opportunity of entering Rwanda and Burundi markets freely. Other countries that signed the FTA pact are out competing us in those markets because we have heavy expenses than them yet we have to operate at the same market levels," the Chief Executive Officer of Mukwano Group, Mr Ibnul Hassan Rizvi, said.
Rizvi told Daily Monitor in a telephone interview on Wednesday that if the government is cautious to sign the free trade agreement, it should open room for mutual bilateral agreements as an alternative approach to the problem.
"We do not want to rush the issue. We are sure that the first approach will work out. The manufacturers have to be patient because we have reached the final stages and we hope that very soon the pact will be signed," Alam said.
