WORLD TRADE
ORGANIZATIONWT/IFSC/W/8/Add.5
24 October 2001
(01-5223)
Integrated Framework Steering Committee
INTEGRATED FRAMEWORK PILOT SCHEME:
PROPOSAL FOR FOLLOW-UP TO THE IF ROUND TABLES
Addendum
Uganda
I. BACKGROUND
A. GENERAL
1. Trade is an important vehicle for economic growth and development.  Most of the vibrant
economies of the world today have shown remarkable performance in trade and in particular in their
export sector.  Countries such as, Singapore, Thailand, Malaysia have strong export sectors and have
realized phenomenal economic growth and development.  Least Developed Countries like Uganda are
aspiring to attain economic growth and development and therefore poverty eradication.
2. In order to meet this, it is imperative to mainstream trade into National Development Plans as
well as Poverty eradication strategies.  As a starting point there must be deliberate and co-ordinated
effort to build a dominant, diversified, sustainable and integrated export sector.  In order to
supplement that, there must be strategic interventions in the most effective areas of the economy so as
to enable trade make realisable impact on the economy.
3. Over the last 15 years therefore, the Government of Uganda focused on macro economic
policies so as to bring about stabilization which led to the creation of a conducive environment forprivate sector growth.  There has been some growth recorded in the export sector as a direct result
from these policies but it has not been significant enough to make an impact on overall economic
development.  Investment remained focussed on import substitution with only a few export-oriented
enterprises and as a result, only 30%of investors are exporters.  Poverty has remained widespread,
partly because exports have not made a significant impact on society.
4. Uganda’s benefits from the new trading system has not been very encouraging so far,
although a great potential exists.  The poor performance of exports is attributed to low production and
un-competitiveness brought about by high costs of production, low quality of products as well as
market-related weaknesses.  This in turn is linked  to the low level of skills and general low level of
development.  In particular, the country has not been able to take full advantage of opportunities inexternal markets due to the structure of her export base.  Exports of agricultural products in
unprocessed or semi-processed forms constitute around 70 per cent of total exports.  Experience with
reliance on agro based exports has made Uganda to think in terms of strategies towards diversification
into non-traditional exports and intensify efforts towards overcoming supply-side constraints.  For
Uganda to benefit from the world trading system, she has to seriously address the issue ofcompetitiveness, in the areas of unreliable and costly utilities, poor infrastructure, lack of support
services and appropriate technologies.WT/IFSC/W/8/Add.5
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B. CAPACITY -BUILDING UNDER JITAP
5. Uganda is one of the eight African countries that have benefited under the JITAP programme
over the last two and a half years.  JITAP has prepared Uganda for Multilateral Trade negotiations
through the establishment of the Inter institutional Committee (IIC) which provides a co-ordinated
mechanism for all stakeholders to dialogue on issues of trade.  It has also greatly improved awareness
towards the Multilateral trade rules and helped Uganda to prepare supportive legal and policy
framework on which to anchor these rules.  Equally important is the effort to enhance Uganda’s
export readiness by addressing supply side bottlenecks and a deliberate effort to increase the
contribution of the export sector to economic growth.
6. There is need to build on the capacity that now exists in terms of human resources and
institution as well as tools developed under JITAP.  In particular is the need to sustain the work of the
network of trainers, the IIC and work currently under way to design individual export strategies
C. THE INTEGRATED FRAMEWORK ROUND TABLE
7. In response to the Singapore decision on the Plan of Action for Least Developed Countries,
Uganda undertook a needs assessment and developed a concept paper that was round tabled at the
November 1997 High Level Meeting at Geneva.  The concept paper was developed with the equal
participation of all national stakeholders as well as donor representatives led by the World Bank inUganda.  Subsequently this paper was a subject of another Round Table under the World Bank
consultative group meetings held in December 1999.  These roundtables were attended by many
bilateral and multilateral agencies and it was from these round tables that USAID put in place A
Private Sector Capacity Building project which seeks to help the private sector better understand
Multilateral trade rules.
8. The concept paper presented at these round tables attempted to provide a framework to
examine trade-related issues and identify major gaps in trade support, in particular the supply side
constraints.  It also identified the need for co-ordination of trade-related issues and technical
assistance in Uganda.  The Government noted with great appreciation the expression of interest by
different development partners and looked forward to the continuing co-operation in the process oftranslating the areas of indicated interest into specific projects for the purpose of mobilising financial
and technical support.
D. P
ROPOSALS FOR MAINSTREAMING OF TRADE
9. Given the enabling policies and a wide range of initiatives being pursued without much
impact to the economy, Uganda is opting for export possibilities in the context of sub-sectors with
high potential for enhanced performance in line with the National Strategic Vision.  The Vision
includes a National Ten Year Development Plan a nd various Sector Wide Strategies which include
The Plan for Modernisation of Agriculture, The Road and Infrastructure Strategic Plan, The Education
Sector Plan, The Health Sector Strategic Plan.  All these must therefore have elements of trade in
them to make them not only sustainable but also effective and attractive.  Therefore one of the
strategies is an export-led economic growth for which there is need for programmes which
specifically address the problems of international trade.  These should focus on increasing exports interms of quantity as well as quality.
10. In this regard, there is need to boost exports and the Government is beginning to accord high
priority to trade as an important tool for national development.  It recognises the need to draw up
sectoral strategies for selected sectors which show a high potential for export growth.  The
Government of Uganda proposes therefore to uti lise an important part of the contribution expectedWT/IFSC/W/8/Add.5
Page 3
from the Integrated Framework Trust Fund for the prep aration of some such sectoral strategies which
will subsequently be upstreamed into a National Export Strategy (NES)
11. To complement these activities, Government r ecognises the urgent need to come to terms
with all aspects of the Multilateral Trading System, including compliance and implementation,
creating negotiation capacities as well as understanding the full impact of the WTO Agreements onthe business community and the opportunities offered by them.  Remaining funds made available
from the Integrated Framework Trust Fund under the new IF arrangements are proposed to be utilised
for this purpose in helping the work of the Netw ork of trainers and the Inter-Institutional Committees
established under the JITAP programme.  These activities are elaborated further below and are fully
in accordance with the Government’s objective of “mainstreaming trade” as well as priorities
identified in the IF concept paper that was presented at the earlier RTMs.
E. O
N-GOING TRADE RELATED TECHNICAL ASSISTANCE PROGRAMMES1
12. Uganda benefits from a number of on-going trade related technical assistance programmes
other than the programmes mentioned in the document (JITAP, COMPETE, IDEA etc.).  These are
listed in Annex I.
II. ACTIVITIES TO BE FINANCED UNDER THE INTEGRATED FRAMEWORK
13. Uganda undertook wide consultations, especially using the Inter Institutional Committee in
identifying the priority project concepts envisaged to  facilitate rapid mainstreaming of trade activities
into the National Development Plan. The proposals take into consideration other initiatives currently
being implemented or are being negotiated with our development partners.
14. Specific project proposals fall under two categories:  the National Export Strategy and the
consolidation  of the  capacity for effective participation in the MTS. It is proposed that theInternational Trade Centre be the overall Executing Agency for both project modules. Whereas ITC
will implement the large majority of activities, certain individual activities within each module are to
be implemented by UNCTAD and WTO through an Inter-Agency Agreement.
A. T
HE NATIONAL EXPORT STRATEGY
15. In 1992 there was a stillborn attempt to make an export diversification plan covering a period
of ten years.  Consequently the export sector has been operating without a National Export Strategy
(NES).  It is therefore imperative that a national export strategy be designed to guide the export sector,
otherwise in its current state, the export sector is glaringly underdeveloped and uncoordinated.  Owing
to lack of a national export strategy and hence the sector specific strategies, there are no clearly
defined export policies that target development of the export sector within the trade policy and the
overall economic policy regime.
16. Uganda’s exports are composed mainly of primary commodities-coffee, cotton, tea, tobacco,
maize, beans, to name a few.  The Export base is  still narrow in terms of products, markets, and
volume.  There are only 23 products of any significant value in the export structure.  These are
predominantly exported to the EU  and COMESA region with limited exports to USA, Far East and
Middle East.  The volumes too are small and as such Uganda is not a significant player in the global
market for most of its export products.
                                                     
1 The coordination of the project activities as well as of othe r on-going trade-related TA with the proposed project will
be ensured by the Ministry of Tourism, Trade and Industry.WT/IFSC/W/8/Add.5
Page 4
17. There is lack of a coordinated and integrated approach to export development.  Within the
public sector alone, there are various agencies that are running parallel projects and programs, and so
it is among the development partners where support has been channelled to different private or public
sector stakeholders.  Some of these interventions include:
− The IDEA project targeting high value products – cut flowers, fruits and vegetables and some
low value products such as maize and beans.
− COMPETE:  A USAID funded project that is formulating strategies on coffee, cotton and
fish.
− JITAP – Cluster 12 - formulating strategies on horticulture sector.
18. All these interventions are ongoing but are implemented by different agencies
19. Government of Uganda wishes to formulate a National Export Strategy (NES).  The overall
objective is to create a vibrant, diversified, integrated and sustainable export sector over a period of 10years.  The NES should be integrated with other Government programmes like the Poverty
Eradication Action Plan, the Plan for Modernisation of Agriculture (PMA) and investment, which aim
at economic growth and poverty eradication and the improvement of the balance of payments.
(a) Specific objectives
20. To generate export earnings over and above import requirements.  During the plan period (10
years) exports are targeted to grow by a cumulative 20% per annum from the current level of $470
million .By the end of the plan period therefore the exports should be $2,910 million annually.  Thistargeted earning should have an impact on poverty alleviation and export growth.  In order to achieve
this broad target, the National Export Strategy should clearly analyze the current situation in the
export sector, identify the problem areas and suggest solutions to overcome these problems.  The NES
should also consider areas of trade policy reforms where need be, and should formulate sector specific
policies and strategies and create clear linkages between the various sectors and stakeholders in exportdevelopment.  The NES should identify viable sectors that should be focused on for development in
the medium to long term.  The NES should bring out the details of product development, export
infrastructure, financing and research, human resource and capacity development and the
diversification of the markets.
21. Further the strategy should bear specific targets and expected output or impact of export
development on economic performance, export performance, public and private sector synergies,
social welfare and eradication of poverty.
(b) Modalities
22. The NES should be participatory and draw inputs from all stakeholders, including
government and private and public institutions.  Th is participatory approach should come up with a
strategy that is monitored and owned by both the private and public sector.  In order to solicit for
views and formulate the NES, a national export strategy formulation team will have to be appointed
by the Ministry of Tourism, Trade and Industry in consultation with ITC.
23. The NES shall draw from the current interventions in export strategy formulation by
COMPETE, JITAP and Uganda Export Promotion Bo ard that are covering six products (Coffee,
Cotton, Fish, Horticulture, Oilseeds, Hides and Skins).  It is proposed that funds be made available
from the IF Trust Fund to cover another two priority  products (silk being one of them).  On the basis
of the commonalities of those products, a NES can then be designed.WT/IFSC/W/8/Add.5
Page 5
(c) Activities
1.1 Prepare a diagnostic study of the selected sub-sectors relating to constraints and
opportunities.
1.2 Provide coaching on sectoral strategy formulation to Sectoral Counterpart Teams set up
under JITAP for the selected sub-sectors.
1.3 Undertake international market demand survey for the selected sub-sectors including the
purchase of ITC’s Product Maps and Trade Maps.
1.4 Prepare sectoral strategy and action plans for the sub-sectors.
1.5 Organise a National Symposium to discuss and approve the sectoral strategy papers.
1.6 Organise market missions for selected enterprises engaged in the selected sub-sectors.
1.7 Prepare a National Export Strategy based on the individual sectoral strategies already
prepared.
(d) Budget:
− US$ 183,000
(e) National Counterpart:
− Ministry of Tourism, Trade and Industry; and,
− Uganda Export Promotion Board
B. CONSOLIDATING CAPACITY FOR EFFECTIVE PARTICIPATION IN THE MTS
24. Uganda has an Inter-Institutional Committee (IIC), under JITAP, to coordinate all trade
negotiating activities as well as undertake national implementation of obligations arising from the
WTO Agreements and to advise on how best to access the emerging opportunities.  The IIC hasidentified several constraints hindering its effectiveness, among which are:  lack of resources and
capacity.
25. The following specific project component have been identified for financing under the IF
Trust Fund allocation
1. Support to the IIC
26. The IIC meets once every quarter while its five sub committees meet on a monthly basis.  The
sub-committees are assigned with specific tasks arising from the WTO agreements and research to
help on their work is envisaged.  There is need for assistance to the plenary as well as each of the sub-
committees, with a view to enhancing the capacity and facilitating the performance their functions.
(a) Budget:
− US$ 30,000WT/IFSC/W/8/Add.5
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(b) National Counterpart: 
− Ministry of Tourism, Trade and Industry.
2. Support to the network of trainers
27. During the life of JITAP, a number of persons have been trained on the WTO Agreements as
Generalist trainers and Specialist trainers.  The target is to have these trainers throughout the countryso that there is a National Network but currently only three-quarters of the country is covered.  There
is, therefore, an urgent need to build a cadre of trainers in the remaining parts of the country.
28. When the network is complete, it will still require support before it can become self-
sustaining, which it plans to do through registering a Non Governmental Organisation.  This
organisation will organise Workshops and Seminars on topical issues and charge a nominal fee.  It
takes a leaf from the Kenyan experience which has succeeded, provided the stakeholders are well
sensitised on the WTO.  The support will therefore partly go to sensitising the stakeholders so thatthey will be aware of the benefits they will derive from the work of the Network of trainers
(a) Budget:
− US$ 35,000
(b) National Counterparts: 
− The Ministry of Tourism, Trade and Industry; and,
− The network of trainers
3. Collection, consolidation and compilation of existing trade-related studies
29. The Government of Uganda has carried out a large number of trade-related studies in
collaboration with bilateral and multilateral development partners in recent years. These studies
address a wide range of issues including trade policy, tariff reforms, customs administration, macro-
economic and fiscal management, trade facilitation etc. There is an urgent need to take stock of theseanalytical studies, analyse their relevance in the current context and to compile relevant material
which could assist in the mainstreaming of trade issues in national development plans and poverty
reduction strategies. It is proposed that the services of a national consultant be engaged for this
purpose for a period of two calendar months.
(a) Budget:
− US$ 13,000
(b) National Counterparts:
− Ministry of Tourism, Trade and IndustryWT/IFSC/W/8/Add.5
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C. CALENDAR OF ACTIVITIES
Project Module Starting date Expected date of
CompletionRemarks
Sectorla and National Export
Strategy FormulationOctober 2001 December 2002
Support to the IIC October 2001 June 2002
Support to the network of
trainers October 2001 June 2002
Collection, consolidation andcompilation of existing trade-
related studiesOctober 2001 January 2002
D. CONSOLIDATED BUDGET
Project Module 2001 2002 Total
The National Export Strategy 54,999.00 128,331.00 183,330.00
Support to the IIC 9,166.50 21,388.50 30,555.00
Support to the network of trainers 10,476.00 24,444.00 34,920.00
Collection, consolidation and compilation
of existing trade-related studies 3,928.50 9,166.50 13,095.00
Total without support costs 78,570.00 183,330.00 261,900.00
Support Costs 8,730.00 20,370.00 29,100.00
Grand Total 87,300.00 203,700.00 291,000.00WT/IFSC/W/8/Add.5
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ANNEX I
On-Going Trade Related Technical Assistance Programmes
Donor Title Objective Budget
EPOPA – Export
Development andCertification
Programme: Organic
Products from AfricaStrengthening the policy
environment for tradeliberalisation.Agreed amount
15 MSEK
2
(USD1,419,737).
This project involve
others African
countries
Promotion of Small
Enterprises in NorthernUgandaAgreed amount
5,4MSEK(USD511,150)
SWEDEN « Textilica – Business
Development, Training
and Institution Building:
Textile and ClothingAgreed amount
5,2 MSEK
(USD492,218)
Trade Promotion
Services Assistance in
Developing CountriesSupport at the enterprise level
including access to business
information, use of informationtechnology,
adaptation/development of new
products, advice on standards,
packaging, quality control,
marketing and distribution
channels; commercial
representationAgreed amount 13,4
MSEK.
(USD1,265,534)This project involve
the fives countries
Start SouthImproving competitiveness of
enterprises;  increasinginvestment (including foreign
direct investment) in productive
sectors.Agreed amount
20 MSEK(USD1,892,983)
this project involve
others African
countries
FINLAND Support to international
non-governmental
organisations (ITCSD,SEATINI etc.)Organisation of seminar and
studies on trade issues
NORWAY Training of producers
and exporters of fruits
and vegetablesAgreed amount 10
MNOK3
(USD1,139,211)
CANADA International
transportation and tradeSet up a new policy to enable the
technology and structural
mutation in the maritime transport
in West and Central Africa within
the regional framework
                                                     
2 MSEK: Million Swedish Kroner.
3 MNOK: Million Norwegian KronerWT/IFSC/W/8/Add.5
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Donor Title Objective Budget
TECONILE–
Institutional
StrengtheningTo strengthen and upgrade
TECONILE’s institutional
capacities and develop an
appropriate management
framework and structure for
TECONILEWT/IFSC/W/8/Add.5
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ANNEX II
UNITED NATIONS DEVELOPMENT PROGRAMME
Integrated Framework Trust Fund (IFTF)
Project Number : ……………………..
Title : Follow-Up of Trade Round Table
Pilot Phase of the Integrated Framework
Estimated Starting Date : October 2001
Duration : 15 months
Project Location : Kampala, Uganda
Government Cooperating Agency :
Ministry of Tourism, Trade and Industry and Uganda Export
Promotion Board
Executing Agency: International Trade Centre UNCTAD/WTO (ITC)
Implementing Agencies : United Nations Conference on Tr ade and Development (UNCTAD)
World Trade Organisation (WTO)
Sector : Trade Development
__________________________________________________________________________________
Brief Description:   The project aims to assist exporters to integrate in the global trading system and
government strategy makers to « Mainstream » trade in national development plans and poverty alleviation
strategies in the country, in particular the PRSP. The main  focus of the project is to assist in the preparation of
sectoral export strategies for products having good export potential applying the « coaching » and « do ityourself » approach followed by a national export strategy. It also aims to provide assistance for strengtheningthe Inter-Institutional Committees and the network of trainers established under the JITAP programme.
__________________________________________________________________________________
On behalf of:  Government of Uganda
_________________________________________________ Date: ________________
United Nations Development Programme
_________________________________________________ Date: ________________
International Trade Centre UNCTAD/WTO
_________________________________________________ Date: ________________
__________Contributions
IFTF
($US)
2001 : $ 87 300
2002 : 203 700
________
TOTAL : $ 291 000
 =======