WORLD TRADE
ORGANIZATIONWT/TPR/M/93/Add.1
13 March 2002
(02-1291)
Trade Policy Review Body
19 and 21 December 2001
TRADE POLICY REVIEW
UGANDA
Minutes of Meeting
Addendum
Page
ANNEX I ADVANCE WRITTEN QUESTIONS BY MEMBERS 3
ANNEX II WRITTEN RESPONSES BY THE DELEGATION OF UGANDA 13WT/TPR/M/93/Add.1
Page 3
ANNEX I
ADVANCE WRITTEN QUESTIONS BY MEMBERS
EUROPEAN UNION
Secretariat Report  (WT/TPR/S/93)
SUMMARY OBSERVATIONS
(2)  I NSTITUTIONAL FRAMEWORK
Trade policy issues are the responsibilities of various departments in several Ministries.  There seems
to be a lack of co-ordination among Government stakeholders, and, at the same time, a lack of
capacity to manage trade arrangements effectivel y and to fully implemen t the necessary reforms,
resulting in a fragmented trade policy.  How is the Government going to address this constraint, e.g.
does the Government envisage a clearer leadership role for trade policy within MTTI and/or is itplanning to improve the institutional co-ordinatio n among these stakeholders?  Does the Government
have any concrete plan to mainstream trade policy at institutional level?  Will the Government
develop a strategic programme for its contributi on to better trade policy awareness and ownership
among the stakeholders?
Although trade policy seems to be an important  priority on the Government's agenda the budget
accorded to the leading Ministry is largely insuffici ent to assume its basic tasks, without even talking
of a more active role in the preparation of trade negotiation.  Could Uganda please elaborate further
on the Government’s intentions in this regard?  Is  the next Mid-Term Expenditure Framework going
to reflect these priorities by providing more recurrent and more development resources to MTTI?
The Government is in a process to reorganise the institutions in charge of Trade policy by increasing
the terms of reference of the Inter-Institutional Commission established initially to oversee WTO.  The
IIC would have to supervise the implementation of other International agreements.  We would like to
know when this role will be actually extended?  How is the Government going to ensure, together with
the private sector and the civil society, that sufficie nt capacity be allocated to the IIC to allow it to
actively contribute to the process by increasing ownership of the non-state stakeholders?
I(5) para. 27
Despite the current privatisation programme it appears that the Government still considers that it
should in some cases substitute itself to the private sector.  The "export strategy" presented by the
executive earlier this year seems to focus on such interventions instead of addressing the "enabling
environment" constraints identified in the Medium Term Competitive Strategy.  To overcome this
ambiguity, the Government could put more em phasis on the implementation of the MTCS and
demonstrate to the private sector stakeholders that it recognises its role as a "public sector".  CouldUganda please indicate how the Government envisa ges the implementation of the MTCS in the near
future?
II(2)para. 12
A general remark:  It is stated in the report that the Government of Uganda intends to exploit non-
reciprocal preferential treatment.  Therefore, there should have been a reference in this context notonly to AGOA and Cotonou but also to the EBA scheme (which is taken up in para,. 59, page 29).WT/TPR/M/93/Add.1
Page 4
(5)(ii) Trade-related technical assistance
Technical assistance is viewed to be essential fo r Uganda to come into full compliance with its WTO
obligations.  In this respect, what are the Governme nt's plans to strengthen the IIC's role in order to
ensure a better coordination of trade policy matters, in particular regarding financing from national
budgetary outlays to provide for the coordination and management of national trade policy
mechanisms for the implementation of WTO agreements?
(iii) Regional agreements
The EC welcomes regional integration in Sout hern and Eastern Africa under COMESA and EAC.
However, we would like to receive some clarifications in this context:
- How is Uganda, being member to both arr angements, facing the problem that both, 
COMESA and EAC, intend to set up a CET by 2004?
- The maximum ad-valorem rate in Uganda is 15%.  Will Uganda increase maximum 
and other tariffs when participating in a CET under COMESA or EAC?
Uganda is also member of the Regional Integration Facilitation Forum (RIFF), the former Cross
Border Initiative (CBI).  This is not mentioned in the report. The CBI/RIFF was established primarily
with the aim of creating conditions for more beneficial integration of the countries of Eastern and
Southern Africa and the Indian Ocean into the regional and world economy by facilitating thedismantling of barriers to the cross-border flow of goods, services, persons and capital.  It has been
quite successful in a number of countries as was pointed out in the TPR for Mauritius and
Madagascar.  We would therefore be interested to know what objectives Uganda pursues under this
initiative?  And, what role does the national Technical Working Group, set up under this initiative,
play in the context of economic and trade reforms in Uganda?
One general comment
Para. 56
The phrase in brackets "other than those covered by the CAP" should be deleted as it is wrong:
Declaration XXII, annexed to the final act of the Cotonou Agreement, specifies the preferences for
agricultural products from ACP countries.
III(2)(vii) para. 46
The new system of procurement in Uganda places  emphasis on transparency.  Could Uganda please
elaborate on how transparency is ensured in Ugandan procurement law and practices?  Namely:
- How do prospective international bidders have access to information about Ugandan 
procurement procedures and rules?
- Do international tender notices include information about bidding procedures and 
award criteria?
- Do unsuccessful bidders have access to information as to why their bid was refused?
- Does the Central Tender Board evaluate and respond to complaints by international 
bidders?
- What are the challenge procedures against any decision taken by the Central Tender 
Board or any other procuring entity?WT/TPR/M/93/Add.1
Page 5
Para. 47
With regard to the procurement procedure, we w ould be grateful for some further information,
namely:  In which cases are open tenders intern ational?  Is this specified by procurement
regulations? In which international print media are tender notices published?  Are international
bidders treated equally regardless of origin?  Are procedures (other than for submitting bids, e.g.
prior registration) required from international bidders?  Are these requirements, if any, notified in
tender notices or specified in the procurement regulations?
Para. 50
Other than preferential margins, are international bids/bidders treated equally to domestic
bids/bidders?
Para. 51
Does Uganda foresee becoming an observer or member of the GPA in the future?
III(4)(ii) Para. 5
In relation to conformity assessment under the Uganda Standards Certification Mark we would like to
enquire whether the system in Uganda allows the possibility of acceptance of manufacturers
declaration of conformity.  In add ition, we would like to know whether the system includes a clear
definition of products subject to certification in order to avoid the inclusion of low-risk products andto avoid repetitive certification procedures applied to similar products.
Para. 87
As far as the TBT Enquiry Point is concerned we would like to flag the positive progress achieved by
Uganda in setting up the Enquiry Point and the plans to ensure that all enquires are answered on-
line.  Could the Ugandan Government indicate its concrete plans to become operational?
(4)(iii)
As a least-developed country Uganda benefits from  the special and differential treatment in TRIPS
agreement implementation afforded by art. 66.1.  Nevertheless, in the perspective of the
implementation of the TRIPS agr eement by 1st January 2006, it would be appreciated if Uganda
could inform us of any concrete steps to be undertaken in order to achieve this objective.
HONG KONG, CHINA
A.  Other Duties and Charges
(WT/TPR/S/93) Secretariat ReportP. 37, para. 22
It is mentioned that special protection is provided to the sugar and textile industries.  We would like to
know the details and the reasons for such protection.WT/TPR/M/93/Add.1
Page 6
P. 41, para. 50
We would like to know whether the preferential margins of 15% to 20% for local goods suppliers and
5% to 7% for local services providers have been reduced or abolished.  If not, we encourage Uganda
to consider removing this preferential treatment to local suppliers so as to provide a level playing
field for all potential suppliers.
P. 71, para. 85 and GATSC/SC/89/Supp.1/Rev.1, p. 4
The rapid growth in the mobile telecommunication market is attributed to increased competition.
However, according to Uganda's Schedule of Specific Commitments under GATS, there will be a
maximum of only three operators up to 2003.  Would the Ugandan authorities consider increasing thenumber of operators?  If so, what are the procedures for foreign participation?
CANADA
(WT/TPR/S/93) Secretariat Report
II(5)(ii) para. 34
According to para.. 34, supply-side needs are one of Uganda’s major obstacles in trade expansion
and have hindered Uganda from expanding trade a nd from attracting foreign direct investment.
Para. 34 notes that JITAP has provided assistance with a view to overcoming some of those
constraints to the expansion of Uganda's trade.  Is the Government of Uganda considering further
mainstreaming JITAP into Uganda’s trade policy-maki ng process?  If yes, what steps are you taking
to accomplish this?
IV(2)(ii) para. 17
Para. 17 notes the various fees paid by coffee collectors, processors, and exporters, which range from
U Sh. 50,000 per year for collectors to U Sh. 1.5 million for exporters.  To what extent do theseregistration fees have a negative impact on the farm -gate price of coffee experienced by smallholder
farmers?
IV(3)(ii) para. 55
Para. 55 notes that the average customs tariff on petroleum products is 8.4% with rates of up to 15%
for miscellaneous petroleum products.  At the same  time, fuels accounted for over 12.3% of Uganda's
imports in 1999 or US $125 million (according to Table I.5).  Further, the current account deficit for
Uganda was 7.5% of GDP in 1999.  In this context, what is the impact of tariff escalation in the
petroleum sector on aggravating the current account deficits in Uganda?
IV(5)(ii) paras. 87-89
According to para. 87, Uganda has  made substa ntial progress in developing its information
technology (IT) infrastructure and establishing a legal and regulatory framework for IT.  IT is one of
the activities emphasized by Uganda’s Big Push Strategy for faster economic growth. Becoming a
signatory to the WTO Information Technology Ag reement (ITA) could have a positive influence on
attracting greater foreign direct investment in IT.   Is Uganda considering becoming a signatory to the
WTO ITA?WT/TPR/M/93/Add.1
Page 7
IV(5)(iv) para. 112
Para. 112 notes the potential of the Tourism Sector in Uganda and suggests that special incentives for
new investments and closer regional collaboration (for example a single joint entry visa for Kenya,
Tanzania and Uganda) may help Uganda take advantage of the benefits offered by a growing tourism
sector.  Has Uganda considered using techniques like the ones mentioned in the report to strengthen
and expand the tourism sector?
IV(5)(iv) para. 116
Para. 116 mentions that the Government in its Budget speech for 2001/2002 brought forward a
proposal to combine the Uganda Tourist Board (UTB), the Uganda Investment Authority and the
Uganda Export Promotion Board into a single entity. What is the status of this proposal?  Is it still
under consideration?
JAPAN
Secretariat Report (WT/TPR/S/93)
II(5) Investment,  p. 20, para. 18
Although Uganda has made some efforts to encourage  foreign direct investment, Japan considers that
the current preferential treatments to foreign enterprises, such as offering rent-free land and
preferential treatment for customs duties, are sti ll not sufficient.  Japan request Uganda to consider
further investment incentive measures for the purpos e of promoting foreign direct investment.  Please
comment on this.
III(2) Customs procedures, p. 32, paras. 8, 10 and 11
The time needed for completing customs procedures is quite long, thus creating a heavy burden on
traders.  Japan requests Uganda to make efforts towards establishing a more efficient system for its
customs procedures.  Please comment on this.
Tariffs, pp. 33 and 35, paras. 16 and 19
The bound rates of Uganda are high, while the applied rates are relatively low.  Japan requests
Uganda to reduce its bound rates in order to improv e the predictability on tariffs.  Japan also
requests Uganda to increase the coverage of binding, which is currently 15.4% of all tariff lines.  Is
Uganda considering any measures in this regard?
Protection of the domestic industry, p. 31, para. 2, p. 33, para. 12, p. 37, para. 22
The Report states that special protection is provided to the sugar and textile industries. Please
provide a detailed description of the protection gr anted to these industries.  How can Uganda explain
the consistency of such protection with the WTO agreements?
(3) Intellectual property rights, pp. 50 and 51, paras. 99 and 102
According to the Report, the Government has established a task force under the Uganda Law Reform
Commission for revising the law on intellectual pr operty rights.  Furthermore, the Copyright Act of
1964, which governs the protection of copyrights in Uganda, is now under comprehensive review.Japan appreciates such efforts by Uganda to impro ve the protection of its intellectual property rights,WT/TPR/M/93/Add.1
Page 8
and would like to know the current situation on the progress of the task force, as well as the planned
schedule for revising the law.  Japan would also like to know the current situation of reviewing of the
Copyright Act.
General questions not based on the Reports
It has been announced this year that the Ugan da Export Promotion Board, the Uganda Investment
Authorities and the Uganda Tourist Board will be integrated into one organization.  Please providean explanation on the current situation regarding this integration.  What objectives does this new
organization have?
NORWAY
As an active donor and a development partner, Norway sees a strong need to clarify the relationship
between the Ministry of Tourism, Trade and Industry (MTTI) on the one hand, and the Ministry ofFinance, Planning and Economic Development (MFPED) on the other.  Could Uganda's delegation
explain the division of roles and responsibilities be tween these two ministries in the overall trade-
related development strategy?
UNITED STATES
SUMMARY OBSERVATIONS (Secretariat Report WT/TPR/S/93)
(1) The Economic Environment, Para. 5
Insufficient infrastructure, coupled with Uganda’s landlocked status has impaired the growth of its
exports and its economic progress.  What is Uganda doing to try to overcome these obstacles?
(2) Institutional Framework, para. 13
The Secretariat’s report notes that Uganda is slow ly mainstreaming trade into its developmental
framework.  However, its various institutions de aling with trade policy, including the MTTI, do not
have sufficient capacity to manage trade arrangements effectively and to fully implement the
necessary reforms.  At the same time, at least partially due to the Government’s fragmentedinstitutional structure dealing with trade matter s, coordination among development partners is less
than ideal.  What is the Government doing  to change this situation?
I(1) para. 6
The Secretariat’s report notes that although Uganda has undertaken a number of structural reforms,
further liberalization is recognized as being necessary to continue on its path of economic progress.
What is the government doing to liberalize the services sectors?
Para. 7
The Secretariat’s report notes that high production costs in Uganda which are evident across all
economic sectors are the result of poor delivery of utility services, poor transportation, weakness and
corruption in tax administration and commercial justice, the high costs of accessing capital, the lack
of skilled labour and low labour productivity.  What is the government doing to reduce costs byliberalizing its services sectors?WT/TPR/M/93/Add.1
Page 9
(5) para. 26
The Secretary’s report notes that the current Poverty Eradication Action Plan addresses more
directly the need to integrate export competitiveness and  trade liberalization into a broad poverty-
alleviation effort.  How is government trying to achieve this integration?
Para. 27
The Secretary’s report notes that Uganda has pla ced great emphasis on private sector development
as a major engine for economic growth.  What steps has the Government taken to encourage the
private sector?
Para. 33
The Secretariat’s report notes that the Government has expressed a desire for more technical
assistance from donors, which would facilitate the process of reaching decisions related to further
trade liberalization.  In what areas is technical assistance most desired?
II(3) para. 13
The Secretariat’s report notes that a deregulations program has been launched to dismantle
“unnecessary” licensing and regulatory procedures.  What is the status of this program?
(5)(iii) Regional agreements
The Secretariat’s report notes that implementation of  the East African Community free-trade area has
been postponed with implementation now expected  by 2004.  What steps are being taken now to
prepare for this?
III(2)(ii)(b) Nature and level of MFN tariffs
The Secretariat’s report notes that Uganda’s tariff bindings cover 15.4 percent of all its tariff lines
and 2.7 percent of total lines for non-agricultural products.  Is the Government considering
increasing the coverage of bound tariffs which would further increase the predictability of marketaccess conditions?
(d) para. 22
The Secretariat’s report notes that "special protection" is given to the sugar and textile industries.
Could you please provide details as to what "spe cial protection" measures are being taken?  Are
there any other industries that receive similar protection?
(e) para. 28
The Secretariat’s report notes the Manufacturing Under Bond Scheme is intended to meet the
immediate needs of the 100 export companies.  Could you please provide more details on it? What
type of "immediate needs" does The Manufacturing Under Bond Scheme provide for?  How does the
program meet the "needs" of exporting companies?WT/TPR/M/93/Add.1
Page 10
(iii) para. 33
The Secretariat’s report notes that since July 2000 customs valuation has been based on the
transaction value as provided for by the WTO Ag reement on Implementation of Article VII of GATT
1994.  Uganda’s implementation of  the WTO Agr eement is an important step towards meaningful
customs reform techniques considered to be  “best customs practices” and also diminishes
discretionary practices in the valuation area that  often serve as a starting point for corruption.  We
encourage Uganda to notify its domestic implementing legislatio n and the WTO checklist to the
Committee on Customs Valuation.  Notification of the legislation and the checklist will advance the
efforts of the WTO committee to operate as a constructive, problem-solving body
(vii) Government Procurement
The Secretariat’s report notes that since September 2000 government procurement is now
decentralized and is self-contained within each procurement entity and also notes that the new system
places an emphasis on transparency.  How does the system encourage such transparency?
(3)(iv) para. 62
The Secretariat’s report notes that Uganda is in the process of developing export-processing zones.
What types of incentives will be offered to companies (i.e. direct/indirect) located in these zones?
(v) para. 63
The Secretariat’s report notes that the Export Refinance Scheme provides some export finance
support for non-traditional and non-perishable products.  Can you please explain how the interest
rates are determined under the export refinance scheme?
(vi) para. 69
The Secretariat’s report notes that Uganda does not have any export subsidies.  However, the
European Investment Bank-Uganda Apex Export Loan Scheme offers interest-free loans to exporters.
Is this an interest rate subsidy specific to exporting?  What are the eligibility criteria to receive
funding?
(4)(i) Incentives
The Secretariat’s report notes that the Investment Code of 1991 encouraged investors to use locally
sourced materials.  Could you please clarify how investors are encouraged to use local products?Has the Investment Code been updated to make the "encouragement" to use locally sourced materials
mandatory?  If so, please explain how.
Trade Policies and Practices by Measure (generally)
The Secretariat’s report does not mention any sectoral-specific subsidy programs.  If Uganda
maintains any sectoral-specific subsidy programs, could you please provide further details on any
such programs or incentives?WT/TPR/M/93/Add.1
Page 11
KOREA
IV(5)(ii) Telecommunications and other communication services
As para. 82 (page 70) of the Secretariat’s Report points out, the Uganda Communications
Commission (UCC) issues all the minor licences in the subsectors, while the Minister responsible for
communications issues the major licences.  Please provide illustrative lists distinguishing the minor
and major licences.
As para. 84 (page 71) of the Secretariat’s Report states, the communications operators are
renegotiating interconnection and universal services agreements, and new arrangements are expected
to be in place by the end of 2001.  Please explain to us in detail the obligations that are being
imposed on the operators.
As para.. 91 (page 71) of the Secretariat’s Report points out, there are few limitations on national
treatment and market access in the basic telecommunications services.  Please provide a detailed
description of the existing limitations including specific indicators such as the maximum foreign
ownership equity ratio.WT/TPR/M/93/Add.1
Page 13
ANNEX II
WRITTEN RESPONSES BY THE DELEGATION OF UGANDA
A. ECONOMIC ENVIRONMENT
The Ministry of Tourism, Trade and Industry is principally responsible for co-ordinating all trade and
trade related issues.  The government of Uganda recognizes the challenges met in execution of this
mandate.  These have been largely due to lack of adequate budgetary allocation and personnelstemming from lack of appreciation of trade in national development strategy.
Government is in the process of mainstreaming trade issues in national development plans like the
Poverty Eradication Action plan (PEAP);  Medium Term Competitive Strategy (MTCS);  and the Plan
for Modernization of Agriculture (PMA).
In further effort to revamp the Trade Ministry th ere is support from the EU towards the development
of a comprehensive trade policy, which should spell out clearly the lead and coordination role of the
Ministry, the medium to long term programme, the strategic vision of the Ministry and therefore the
needed resources to undertake the required activities.  Through this support The Department of Trade
will be re-organised to take on board the capacity concerns.
Plans are under way to extend the scope, mandate and capacity o the IIC to handle all trade initiatives
for the country.  The IIC has benefited a lot from JITAP in terms of capacity building but a lot still
needs to be done to build the capacity of government and other non government actors to handle trade
issues effectively and efficiently.  We hope that the JITAP and other such capacity building
programmes will continue.  The proposed WTO impl ementation Bill provides for the funding for IIC
from national budgetary outlays.
Government recognises that the private sector has to  play a leading role in economic growth with the
public sector providing an enabling environment through provision of the necessary infrastructuresuch as transport and communication networks;  including the regulatory, legal, institutional, fiscal
policy reforms in support of private investment.
In the implementation of MTCS, focus is mainly on putting up the necessary infrastructure to provide
the enabling environment for the private sector to do successful business in the international
competitive environment.  The MTCS is a multi sect oral framework designed to identify and address
the bottlenecks that impinge on the private sector’s competitiveness.  Sectoral sub-committees on the
identified areas of intervention have been created and given qualified work plans; these committees
periodically meet to monitor and review progress to ensure that the MTCS implementation plans are
on schedule
(Para. 12) The remark is appreciated, but the mentioned preferential arrangements were just as
examples.
Regional Agreements
The East African Community is regarded as a fast track for achieving the benefits and objectives of
wider regional integration.  The issues raised about the COMESA and EAC Common External Tariff
(CET) will be determined after the results of the st udy that has been commissioned on the implication
of CET under the COMESA NA DTHE East African Community.
The maximum ad valorem and other tariffs will be determined after the findings of the CET study.WT/TPR/M/93/Add.1
Page 14
While the former Cross Border Initiative (CBI) was focusing on Non-Tariff and Tariff Barriers to
trade, Regional Integration Facilitation Forum (RIFF), focuses on facilitation and attraction ofinvestment, in addition to tracking the implementation of policies to facilitate cross-border movement
of good and services.  The Technical Working Group of RIFF comprises representation from both
Government institutions and the private sector and has been instrumental in ensuring that the above
studies relating to Rules of Origin and the Common External Tariff, are carried out.
Qn 4:  Discussant:  Appreciation of Exchange Rate
Uganda is in the process of refining its foreign exchange policy to assure the markets of the steady
availability of foreign exchange in order to reduce incidences of speculation.
Non-traditional exports like flowers that are currently constrained by an appreciating exchange rate
will benefit from implementation of the Government’s Medium Term Competitiveness Strategy
(CMTCS) for the private sector 2000-2005.  The implementation of the MTCS will contribute to
improving product competitiveness by reducing transaction costs of doing business and guaranteeing
product quality.
Initiatives that have been undertaken through donor –government collaboration for improving
competitiveness of the private sector include:
• Competitive Private Enterprise and Trade Expansion (COMPETE) Project designed to
respond to Uganda’s urgent need to improve export competitiveness of its private
enterprises in foreign markets.
• Support for Private Enterprise Expansion and Development (SPEED) is designed to meet
the needs of SMEs, increase access to finance and provide business development services.
• Investment in Developing Export Agriculture (IDEA) is aimed at increasing the value of
selected Non-traditional Agricultural Exports (NTAEs), increasing production of selectedfood products, and improving access to trade finance.
• Trade Policy Capacity Building, has been designed to enable Uganda’s private and public
sectors to address current and upcoming trade policy issues such as those arising from the
WTO and other regional trading arrangements through provision of training, technical
assistance and research.
• Sensitisation seminars have been held by Bank of Uganda in several upcountry towns for
potential beneficiaries of the various export promotion financing schemes.
Export Finance
A major impediment to access by potential importers has been the high threshold of some of the
facilities.  There are concrete plans to reduce these as has already happened under the current
European Investment Bank EIB-Uganda Apex. III.  The establishment of the ECGS will enable
commercial banks to lend to more marginal borrowers.  At the same time, the list of Approved
Financial Institutions (AFIs) through which these funds are channelled, is constantly being expanded.
The resumption of the operations of the Uganda Development Bank, a development financing entity,
will further extend coverage to potential exporters at more favourable terms.
Government will continue to maintain sound macro-economic and financial policies in order to ensureWT/TPR/M/93/Add.1
Page 15
stability of prices, exchange rates and interest rates, which is conducive for sustained economic
growth in general and a viable export sector in particular.  Financial stability reduces transactioncosts, promotes a longer-term perspective and stre ngthens the savings-investment process.  It also
facilitates the mobilisation of domestic savings and the inter-mediation of these savings at lower
transaction costs (i.e. interest rates).
This is being addressed under the Medium Term Competitiveness Strategy for Private Sector where
one of the priority actions is the expansion of infrastructure and utilities thereby reducing cost ofproduction.  In addition, the development of infrastructure networks (roads, rails and
telecommunications) is one of the priorities under the EAC.
Government continues to liberalise and the focus is directed at infrastructure development as already
mentioned above.  The Privatisation program is on going, the tax administration is being reorganised,
the Commercial Justice Reform Programme is an on- going process, technical institutions are being
revamped.
Para. 56 (General Comment-EU) The comment is welcome and the correction should be made in the
report.
B. TRADE POLICES AND PRACTICES BY MEASURE
Government Procurement
The Public Finance (Procurement) Regulations 2000
The Procurement Regulations provides for international competitive bidding.  Advertisement is
through international and local media.  Advertisements are placed in the Economist magazine of
London and the Development Business of the World Bank.
The Central Tender Board is currently in the process of developing a web site to be accessed by all
Procuring Entities and international bidders.
Any decision taken regarding the bidding process is communicated to every bidder who has submitted
a bid.
The Regulations provide for administrative review of the decisions of the procurement entity by the
Central Tender Board in the event of a complaint by any bidder.  If the affected bidder is not satisfied
by the decision of the Central Tender Board, he is free to seek judicial redress.
MEASURES AFFECTING PRODUCTION AND TRADE
Standards and other technical requirements (paras. 85 and 87)
Below are some of the key achievements:
(a) The National Enquiry Point (NEP) on TBT is located at the Uganda National Bureau
of Standards and is operational.  The e-mail address for the National Enquiry Point
(NEP) is unbs@afsat.com
(b) An information leaflet on the services of the NEP is in its final stages of completion
(c) A data base for Uganda Standards and Technical Regulations has been developedWT/TPR/M/93/Add.1
Page 16
with the assistance offered by ITC/WTO/UNCTAD under the Joint Integrated
Technical Assistance Programme (JITAP).
Improving Legal Framework
The government of Uganda recognizes the link between effective institutional support and attraction
of foreign direct investment.  It has placed high priority on the Commercial Justice Reform
Programme that covers the following areas:
• Set up of a Commercial Court, a specialized division of the High Court for expeditious
disposal of civil cases especially commercial/ contract cases;
• Revamping the Land and Company Registries;
• De-Regulation project for dismantling unnecessary licensing procedures;
• Retraining programme for lawyers on emerging areas of the law;
• Establishment of a centre for arbitration and dispute settlement;
• Reform of commercial and trade laws in response to the Medium Term Competitiveness
Strategy and regional and international obligations.
Government has set up several taskforces under the Uganda Law Reform Commission to address
different aspects of the law.  The taskforces listed under a, b and c below have completed their work –
(a) Taskforce on the reform of business laws covering companies, bankruptcy, co-
operatives, joint ventures and partnerships;
(b) Taskforce on the reform of selected trade laws covering competition, special
economic zones, sale of goods and services, consumer protection, trade licensing and
anti-dumping;
(c) Taskforce on the reform secured transactions covering mortgages, hire purchase and
personal securities also addressing issues on access to credit;
(d) Taskforce on the reform of intellectual property laws including copyrights is
underway and will finalise its work before the end of this financial year.
Other taskforces will be set up at the beginning of 2002 to deal with the  codification of contract and
tort law;  review of civil and criminal procedures affecting trade transactions; and legislation on
subsidies and countervailing measures.
REPLIES TO THE DISCUSSANT’S PAPER
Uganda is an Agro based economy and while the terms of trade have been worsening at the
international market, the economy is also susceptible to natural vagaries.  However to mitigate the
above and recognising  the inevitable need to focus on industrialisation, we have nurtured our
manufacturing sector to a 17% contribution to GDP from, 15% three years ago.  The current market
focus for manufacturing is domestic and regional.
Secondly under the Plan for Modernisation of Agriculture, a sub-committee on marketing and Agro
processing is working out modalities and strategies for processing primary agriculture product to
value added exports.  The success of these efforts will depend on a vibrant private sector and to a
large extent on market access conditions, particularly in view of the tariff peaks and escalation that
afflict processed exports to markets of our developed partners.WT/TPR/M/93/Add.1
Page 17
Government has embarked on measures to increase processed high value exports that include:
• A deliberate scheme by U.I.A to promote and attract investors in Agro-processing
industries for value addition
• Revamping Uganda Development Bank in order to increase access to long term
finance.
The Government in implementing the above will co ntinue to work with development partners in
enhancing value addition.
Trade Policy and Surcharges
Our trade policy is Trade Liberalisation .  However the liberalisation process has to take into account
development concerns like employment, improved st andards of living of our people, market access
opportunities.  This policy is implemented through tariff rates for purposes of transparency and
predictability.
Tariff rates and surcharges are trade regulatory instruments.  They are used to provide protection to
infant industries with progressive reduction to opens these to competition.  In this regard, trade andtax policies are completely harmonised.
EAC is a fast track for the three Member countries and in this framework they are harmonising trade
and related policies, including taxation, standards, customs procedures as a means of promoting
regional trade.
Surcharges were used to address unfair address unfair trade practices or non-compliance to tariff
reduction.  However, Uganda does not ordinarily maintain surcharges.
There is no specific study on surcharges as such but the studies on competitiveness address the
subject.
Private Sector, MTCS and the Big Push
Involvement of the private sector in the MTCS
Technical Working Groups have been formed comprising representation from the donor community,
relevant government institutions and the private s ector, for purposes of monitoring the implementation
of the MTCS.  The process is co-ordinated through the Ministry of Finance, and reports are issued on
a quarterly basis.
The “Big Push” strategy identified 8 potential sectors in which Uganda’s Comparative Advantage can
be developed, including agriculture and cotton, printing and publishing, education, among others.
The focus of the strategy is to build capacity in the private sector, as well as market these sectors as
potential areas of FDI.
COMPETE (Competitive Private Enterprise and Trade Expansion), a Project funded by USAID has
identified 3 sectors which are being developed to e nhance their competitiveness in the export market.
These are:  coffee, cotton & textiles, fish.  These were identified following strategic analysis of
several sectors, considering factors such as contribution to forex, employment, level of development,
etc.  Strategies and action plans are developed and implemented with involvement of the key
stakeholders in the relevant sector.WT/TPR/M/93/Add.1
Page 18
Concrete measures and incentives in place for Uganda’s private sector to take advantage of
opportunities offered by AGOA, EBA, etc.
Through the Trade Policy Capacity Building Project funded by USAID, capacity building is being
carried out to sensitise the business community on the opportunities and market access requirements
for the EU and AGOA, and policy advocacy to elicit the required institutional technical response from
policy makers/implementors.  Additional assistance is being sought from the EU to supplement
existing capacity.  There is need to broaden the agenda to include provision of market information andhandholding services to business firms, research and analysis, and developing strategic alliances with
firms in the U.S. and EU.
Regional Integration
EAC is a fast track for COMESA and, the ultimate objective of these regional initiatives is zero tariffs
and a liberal trade regime.  The Government is committed to both EAC and COMESA.  However a
CET under the EAC will have to overcome the pr oblem of its Members belonging to two Regional
groupings.  This is being taken up at a political level.  The protocol on custom union of the East
African Community is being negotiated and other prot ocols will also be negotiated separately.  The
establishment of the East African Assembly and the Court of Justice are indicative of the political
will.
The establishment of an EAC Customs Union is expected to be progressive.  Article 75(7) of the
Treaty establishing the East African Community provides that – “…Partner States shall within a
period of four years conclude a protocol on the Establishment of a Customs Union.  The Treaty came
into force in 2000 and implementation slated for 2004 is within the dates stipulated by Treaty.
The process of negotiating the different components of Protocol is under way and will be concluded
as scheduled.  This process may be hastened if Council so determines (Art. 75(2)).
The government of Uganda and its 2 partners are well aware of the need for the community to be
owned by the people of the three member countries.
The EAC treaty, article 127 provides for the creation of an enabling environment for the private sector
and civil society to take full advantage of the community.
Article 128 of the treaty also charges the Secretary General to provide a forum for consultations
between the private sector, civil society organisations and other interest groups and appropriate
institutions of the Community.
A protocol on the granting of observer status to members of the civil society has been concluded.
This protocol outlines the rights, obligations and procedures for participation of the civil society in the
activities of the Community.  Simplified material providing information on the EAC are being
developed to enhance understanding and appreciation of the community and also to encourage greater
participation of the people.
At the national level , the Ugandan Civil society and the private sector played an active role in the
recently ended elections to the East African legislature.  They heavily influenced the guidelines for
the election process.  Two of the representatives to the East African Legislative Assembly are from a
women’s NGO and the private sector respectively.
There is also in place an East African coalition of NGOs, which is a platform for NGOs in East Africa
to engage the East African Legislature.  An NGO, Kituo Cha Katiba (East African center forWT/TPR/M/93/Add.1
Page 19
Constitutionals is actively involved in the East African Community Activities including development
of sensitization material for the general public and civil society.  An East African business councilcomposed of major business Associations in East African is also in place with an office in Arusha.
Cotonou Agreement
Under the ACP-EU partnership agreement, civil soci ety and private sector have put in place a non-
state actors steering committee to participate in th e implementation of the agreement and in the trade
negotiations due to begin next year.  The steering committee is working with the EU in the areas of
capacity building.
C. SECTORAL POLICIES
The autonomous liberalisation process is on-going and some of the services sectors have been
liberalised such as financial services, Telecommunications, education and energy, other sectors are
being considered.
The increase of coverage of bound tariffs as well as the wide disparity between bound and applied
tariffs will be a subject for negotiation under the Development agenda reached at Doha recently.
Duty and tax Exemptions
Manufacturing under Bond scheme is intended to facilitate growth of the export sector.
Customs valuation
Due notification will be made.
Measurers directly affecting exports
The establishment of the Export Processing Zones is in process.  Draft legislation is under preparation
Export Finance, Insurance and Guarantees.
Export Promotion and Market Assistance Loan
This is a loan of about $3000 to an exporter, to assist in overcoming some of the problems associated
with market access.  It is repayable in one year.  Eligibility criteria are proof of having exported
commodities worth $5000 in the preceding year.  A capacity to repay should also be demonstrated.
The interest rates accruing in the Export Refinance Scheme are subject to negotiation between the
exporter and his Commercial Bank, through which the Bank of Uganda will release the funds.
Measures affecting Production and trade
The Investment code encourages the use of locally sourced materials but it is not mandatory.
Uganda does not maintain any sectoral specific subsidy programmes.WT/TPR/M/93/Add.1
Page 20
Other Duties and changes
There is no special protection on any sector.  Correction should be made in the report.
The increase of the number of national operators after 2003 shall be considered in light of the
performance of the sector.
Foreign investors can access land only under lease-hold and not rent-free land.  More investment
incentives will be considered based on experience.
Customs Procedures
The decision by Uganda to implement the WTO customs valuation Agreement and the introduction of
ASYCUDA system has hastened the prev iously slow customs procedures.
The integration U I A, U E P B and U T B is still a proposal and consultations are going on.
D. GOOD GOVERNANCE
Uganda recognizes good governance as a prerequisite to economic growth and development, and it is
therefore committed to putting in place democratization processes.  Good governance is one of the 4
pillars of the Poverty Eradication action Pr ogramme PEAP/PRSP.  A new constitution was
promulgated in 1995.  It guarantees the protection of internationally recognized human rights,
decentralization, and the holding of free and fair periodic elections for the President, Parliament andLocal Councils.
Through the decentralization policy, many responsibilities have been progressively decentralized from
central government to local governments, opening oppor tunities for the people to participate in their
governance.  A number of central government agencies, complimented by NGOs and private sectorare involved in strengthening district planning and budgeting.  There is still a need to build further the
capacity of civil society at district and local leve ls for them to effectively participate in local
development plans and implementation and also to demand accountability from their leaders.
The constitution establishes an independent Judi ciary.  The Human Rights Commission has been
strengthened and given more powers as exemplif ied in the Human Rights Commission Act of 1997.
The office of the Inspector General of Government (IGG) has been strengthened with powers to
investigate and prosecute corrupt public officials.
We totally agree on the link between instability and trade in the Great Lakes region.  The security
problems in the region are real and arise from a number of factors.  Without delving into the well-
known causes of these problems, many members will probably know about the genuine efforts
underway in addressing and resolving them.
As you know, President Mandela has been actively involved in the peace process in Burundi that
culminated into the signing of a peace agreement in Arusha and the subsequent installation of an
interim government of national unity in that country.
As far as the problems in the DRC are concerned, Uganda is fully cooperating within the framework
of the Lusaka accords and within the UN Security Council resolutions.  Other regional initiatives
within the East African Cooperation as well as within the African Initiative endorsed in Lusaka by the
African heads of state and government should also go some way in addressing security problems onthe continent.WT/TPR/M/93/Add.1
Page 21
However, as we have previously stated elsewhere, one of the root causes of instability in the region is
grinding poverty, and with it, marginalisation.  We are aware that as individual countries, includingour own, we bear the primary responsibility of addressing the multiple challenges of poverty.  This we
have tried to do through such policies as trade liberalization and privatization.  But in our ever
increasingly globalizing world, our efforts alone cannot be enough.
We therefore call upon our trading and development partners to support our efforts towards achieving
the development targets through full implementation of the operational parts of the LDC III
conference as well as providing market access to products of interest to developing countries.  These
measures would go a long way in addressing the root causes of instability in the region, and hence,
enhancing trade.
The PRSP/PEAP main focus is to eradicate poverty th rough actions to increase the ability of the poor
to raise their incomes and having a sound macroeconomic stability in the country as some of the main
goals.  We also recognize the rationale of the PRSP in achieving debt sustainability through reduction
of debt levels and increasing exports.  As mentioned in the TPR, Uganda has already benefited from
debt relief under HIPC, mainly because of the sound macroeconomic policies.  This is partly as aresult of trade policies to liberalize the agriculture sector and elimination of monopolies by
cooperative/marketing boards.  It has enabled farmers directly benefits more from agricultural trade
and increase their incomes due to better prices.
Additional initiatives to improve the conducive economic environment are being put in place,
including revision of the Investment Code to expand investment portfolios both for local and foreign
investors, liberalization of the communication sector, and the development of the national ICT policy(to be finalized before end of this financial year).  With improved communication and other
infrastructure like road which are priority within the MTEF, costs of production will be lowered and
there will be increased market information flow.
Implementation of the Plan for Modernization of Agriculture is on, with the main focus of improving
agricultural productivity and diversification of agricultural produce.  There is also emphasis of
marketing and Agro-processing to improve product value.  This will partly aim at overcoming the
supply constraints, increase Uganda’s potential to take opportunity in benefiting from the already
existing trade agreements like AGOA, ACP-EU, COMESA and EBA.
Harmonisation of PRSP objectives within the East African region will be realized within the partner
states.  Uganda and its regional partners recognize the need of mainstreaming trade in their poverty
reduction programs and in this regard, benefits from economic regional integration and increased
trade among members will not only increase national economic prosperity but also aim at reducing
poverty levels of its people by directly eliminating any trade barriers between the member states.
__________