Manufacturers upset over delay in Free Trade Agreement
29 Mar '06
2 min read
Manufacturers of Uganda are upset because government is delaying to sign the Free Trade Agreement (FTA).
There is fee levied on exports and if the government had signed the agreement, they would not have to pay any fee and manufacturers could have avoided unnecessary losses in exports, stated Uganda Manufacturers Association.
Opposing UMA and the government's stand, companies like Group and Southern Range Nyanza Limited (SRNL) among other exporters in the region are of the view that agreement would broaden Uganda's manufactured goods market.
Ibnul Hassan Rizvi, CEO, Mukwano Group of Companies stated that Ugandan exporters needed more facilities as Rwanda, Burundi and Sudan and other Comesa markets could access the market.
According to Richard Mubiru, the SRNL Legal Team leader, Uganda's textile export competitiveness has been diminished with membership of Kenya and the East African manufacturing giant in Comesa markets.
Manufacturers say that Uganda is unaware of the benefit it can get from five-year zero-rated industrial transitional period for raw material importation under the principle of asymmetry enshrined in the EAC Protocol.
UMA President, Abid Alam, said that Uganda's geographical situation was major obstacle and may deprive country from the success.
UMA understands the importance of agreement as well as situation of local exporters.
Association wants positive outcomes from the agreement and they are thinking in that direction, said Alam.
Alam added, they are in search of the provision which gives optimum output in multilateral trading between Uganda, Rwanda and Burundi among other member countries under Comesa
Trade Minister, Daudi Migereko, confirmed that the agreement matter is still under examination.
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