29/04/2016
The Unfair Trade
The African Growth and Opportunity Act (AGOA), was enacted on 18 May 2000 as a public law of 200th Congress. This was to enhance market access by sub saharan countries where Uganda falls. AGOA builds on existing US trade programs expanding the benefits especially to manufacturers, however this has been challenged by the imbalances in trade where Uganda in particular imports more than it exports thus the Ugandan shilling loosing greatly against the US Dollar.
We are faced with a number of challenges to begin with;
Few manufacturing and producing companies are registered here in Uganda, which makes it hard to have formal business operations. Those that are registered lack trade marks and other certified documents necessary for smooth trade like Q mark from UNBS.
The goods produced are way below standard to go abroad and out-compete the steady market more so Uganda dealing in Agro products.
Unlike Kenya and Tanzania that are located next to the cost, Our exporters are faced with high costs of production to get raw materials to the time of delivering the finished good. This has discouraged many to the extent of evading taxes and in the end closure and collapse of such potential industries and companies.
The locals objectives are centered to majorly profitability than expanding past boundaries. They prefer to survive on home market and pay import taxes than export taxes.
Ugandans have the capacity to hit the international market given the support from fellow countries(kenya and Tanzania as ports), organizations and concerned Government departments, to rejuvenate the on going production in Uganda through providing good transportation, favourable faires in and out of the country plus taxes, encouraging research to upgrade standards among many other possibilities
