WORLD TRADE WT/COMTD/IF/10*
10December 1997
ORGANIZATION(97-5191)
Committee onTrade andDevelopment
Integrated Framework forTrade-Related
Technical Assistance
TRADE-RELATED TECHNICAL ASSISTANCE NEEDS-ASSESSMENT AND
INTEGRATED RESPONSES BYIMF, ITC, UNCTAD, UNDP, WORLD BANK AND WTO1
UGANDA
*Aprevious version ofthisdocument wascirculated asW/LDC/HL/12/Add.10.
1Thefirstpartofthisdocument, which includes theneeds-assessment fortrade-related technical assistance,
prepared byUganda, iscontained indocument W/LDC/HL/12/Add.10 andisnotreproduced inthisdocument.WT/COMTD/IF/10
Page2
INTEGRATED RESPONSE BYIMF, ITC, UNCTAD, UNDP, WORLD BANK AND WTO
TOTHE NEEDS-ASSESSMENT OFUGANDA
Technical assistance needs identified in
thequestionnaireOrganization Response
Inreply toquestion A(k):
Technical assistance requirements as
regards compliance withWTO
Agreements
Establishing andequipping afocal point
(WTO Unit) intheMinistry ofTrade
andIndustry thatwilloversee andco-
ordinate activities ofallMinistries,
departments, andinstitutions/agencies
involved inWTO matters (i.e.aunitto
actasaone-stop-shop-centre onWTO
matters)UNCTAD Under theITC-UNCTAD-WTO Integrated
Program forLeast-Developed andOther
African Countries (hereinafter "I.P."),
Output 1.1,UNCTAD willassist in
establishing theInter-Ministerial Committee
onWTO matters andinorganizing two
sub-regional meetings fortraining of
relevant officials.*
WTO Under theI.P., Output 1.1,theWTO will
supply thefocal point intheMinistry of
Trade fortheimplementation ofWTO
Agreements including coordination among
ministries withcomputer material and
documentation onWTO Agreements andits
ongoing activities. (1998)
Supporting theLawReform
Commission tobroaden thescope of
work fortheWorld Bank support
project soastoinclude thedrafting of
theURAG implementation Billand
undertake acomprehensive review of
alltrade related legislationWorld Bank Institutional Capacity Building Project
UNCTAD/
WTOAssistance willbeprovided toUganda for
thedrafting/adaptation oflegislation aimed
attheimplementation ofWTO
Agreements. (1998-2000) (I.P.,
Output 2.2,UNCTAD)*
Staffing ofafocal point withleanbut
motivated stafftomanage theunit
Equipping thefocal point andother
reference centres withcomputers, CD-
ROM forinformation gathering/
dissemination andaccess totheinternetUNCTAD UNCTAD isproviding theTRAINS CD-
ROM. (SeealsoI.P., Output 1.3)
*Funds arerequested.WT/COMTD/IF/10
Page3
Technical assistance needs identified in
thequestionnaireOrganization Response
Question A(k) (cont.):
WTO TheWTO willprovide thefocal point in
theMinistry ofTrade forthe
implementation ofWTO Agreements
including coordination among ministries
withacomputer andaprinter. Thefocal
point willalsobeprovided withanInternet
facility ande-mail address tofacilitate a
quick exchange ofinformation onthe
multilateral trading system. (1998)
(SeeI.P.)
Stocking acorelibrary atthefocal
point withWTO-related materialsWTO TheWTO willsupply basic documentation
ontheWTO Agreements andonthework
ofthevarious WTO Committees and
Working Groups. (1998-2000)
TheFocal point willalsobeincluded in
WTO 'smailing listofperiodical
publications. (SeeI.P., Output 1.3)
Expediting action onthe"Training of
Trainers" programme todevelop local
capacityUNCTAD "Training ofTrainers" willbeorganized
through aninter-regional seminar for
English-speaking trainers. (Seealso"Train
forTrade" component intheI.P.,
Output 1.4)*
UNDP Under itsregional programme forcapacity
building fortrade anddevelopment, UNDP
willaddress partofthisrequest.
WTO Under theIntegrated program referred to
above theWTO willbeartheexpenses
incurred bytwoUgandan participants in
the"Training ofTrainers" course tobe
undertaken in1997/1998 forEnglish-
speaking trainers. (I.P., Output 1.4and
1.6)
Enhancing thecapacities ofCustoms
andExcise department inorder to
improve customs valuation and
administration; commercial section of
theJudiciary andUganda National
Bureau ofStandards (UNBS), PSF, and
UEPBIMF AFund mission recently completed
negotiations onaprogram thatcould be
supported byanESAF andexpects togoto
theBoard inNovember. Central tothe
program aretrade policy issues (reduction
intariffs andtheelimination ofimport
bans), andimprovements incustoms
administration.
Question A(k) (cont.):
IMF Assistance mayinclude rationalizing the
import tariff andcoordinating itwiththe
domestic indirect taxsystem, toassure
efficient collection ofrevenues.
(1998: Commitment inprinciple)
*Funds arerequested.WT/COMTD/IF/10
Page4
Technical assistance needs identified in
thequestionnaireOrganization Response
UNDP Intheframework ofitsprivate sector
development programme, UNDP intends to
strengthen thecapacity oftheUganda
National Bureau ofStandards.
World Bank Thisispartoftheongoing Private Sector
Competitiveness Project.
WTO Assistance willbeprovided toUganda
Customs andExcise Department during the
period 1998/2000 foraligning thecustoms
valuation legislation withWTO Agreement.
(SeeI.P.)WT/COMTD/IF/10
Page5
Technical assistance needs identified in
thequestionnaireOrganization Response
Inreply toquestion A(l):
Technical assistance needs asregards
specific WTO Agreements
1. Notification obligations, especially
onagriculture andtextiles, and
tariffication processWTO Asession onnotification obligations willbe
organized inconjunction withaspecific
activity undertaken atnational level inthe
framework oftheIntegrated program (See
answer A(l)3 below andI.P.)
2. Market access: howtoaccess
relevant andtimely informationUNCTAD Please refer toA(k) (TRAINS).
UNDP UNDP willalsoorganize aworkshop for
theuseoftheInternet togather market
information.
WTO Seeanswer relating tothefocal point.
Please refer toA(k)
ITC/
UNDPTheongoing project provides forthe
establishment ofaTrade Information
Network within theCOMESA region. In
addition, trade information assistance is
foreseen intheI.P.*
3. Public sensitization oreducation
programmes ontheUruguay
Round Agreement/WTO issuesUNDP UNDP willsponsor aregional workshop in
theCOMESA region totrain government
officials andprivate sector representatives
andNGOs inpolicy andrule-making under
WTO, withUNCTAD andWIPO.
WTO TheWTO willparticipate inspecific
national seminars andWorkshops thatwill
beorganized in1998/1999 inthe
framework oftheIntegrated programme.
(SeeI.P.)
Specialized regional seminars and/or
workshops onWTO provisions willbe
organized in1998 and1999 inEnglish-
speaking Africa.
World Bank/
WTOAregional seminar oninternational trade
institutions andtheeconomic rationale of
international trade willbeorganized inthe
context ofajoint-initiative oftheWorld
Bank andWTO inNovember 1997.
*Funds arerequested.WT/COMTD/IF/10
Page6
Technical assistance needs identified in
thequestionnaireOrganization Response
Question A(l)(cont.):
4. GATS: Services UNCTAD Thecapacity toparticipate infuture GATS
negotiations willbeenhanced bythe
CAPAS programme. (SeeI.P.,
Output 1.5)
WTO Please refer toA(l)3.
5. Anti-dumping, Subsidies, Rules of
Origin, Safeguards, etc.+WTO Assistance willbeprovided toUganda
(1998/1999). Thisassistance willcomprise
(a)assessment oftherequesting country
needs; (b)drafting orreforming national
legislation where necessary.
Seealsoanswer toA(l)3 andI.P.
6. TBT andSPS: strengthen enquiry
point and/or connection of
institutions toISONET toenhance
access totechnical regulations or
standards inconformity with
URA, andaccess tothestandards
ofmajor importers, e.g.EU,US
andJapan; stafftraining intheuse
ofinternational standardisation
programmes (orpackages) such as
ISO9000 and14000 series;
finance tosupport stafftraining
andformulation ofnational
technical regulations orstandards+ITC SeeI.P.
Question A(l)(cont.):
7. Customs valuation, PSI,etc;
training isneeded forcustom
officials tofamiliarize themselves
withthenewprocedures and
requirements, inparticular in
adjusting ASYCUDA software to
incorporate WTO Customs
Valuation Code andHarmonized
System, andtobuild upadata
baseonprices, freight and
insurance charges. Thiscould
taketheform ofExpert Missions,
study tours toLDCs or
developing countries whohave
made significant progress inthe
implementation ofAgreements on
PSIandCustoms Valuation+IMF IMF toprovide assistance:
Toreview andupdate customs
legislation andregulations toassure
efficient collection ofrevenues
(1998: commitment inprinciple)
+There isaneed forreforming oldlegislation, and/or enacting newones, onissues (5)-(9).WT/COMTD/IF/10
Page7
Technical assistance needs identified in
thequestionnaireOrganization Response
UNCTAD UNCTAD willprovide assistance tothe
Customs Department inadjusting
ASYCUDA software totherequirements of
theCustoms Valuation Code. (SeeI.P.,
Output 1.2)*
WTO Please refer toA(k) andI.P.
8.TRIPS: Train staffandequip
Registrar 'soffice tofacilitate
ongoing review ofstatutes on
intellectual property, trademarks,
andcopyright acts+WTO Assistance willbeextended toUganda in
accordance withthecooperation Agreement
withWIPO andWTO providing forWIPO
legal-technical assistance relating toTRIPS
Agreement.
9.TRIMs+WTO seeanswer A(l)3
10.Develop local trade negotiating
capacity toenable Uganda to
actively participate infuture trade
negotiations onthein-built agenda
and"new issues"UNCTAD UNCTAD willprovide training ofnational
trade officials forfuture trade negotiations.
(SeeI.P., Output 1.5)*
Question A(l)(cont.):
ITC/
UNCTAD/
UNDP/
(African
Economic
Research
Consortium,
orAERC)Based onasynthesis ofsectoral studies,
UNDP willorganize andsponsor in1998
and1999, sub-regional seminars and
brainstorming workshops toassist
government officials inpreparing
negotiating positions forthenextround of
WTO negotiations.
World Bank/
WTOPlease refer toA(l), Point 3
WTO Please refer toA(m) below
+There isaneed forreforming oldlegislation, and/or enacting newones, onissues (5)-(9).
*Funds arerequested.WT/COMTD/IF/10
Page8
Technical assistance needs identified in
thequestionnaireOrganization Response
Inreply toquestion A(m):
Assessment oftheexisting trade
analysis andnegotiating capacities
Thisisanextremely weak areaforthe
country, ascapacity isalmost non-
existent. About tenofficials have so
farattended theWTO Trade Policy
course. Only twoofthese arestillat
postastheresthave been lostthrough
highstaffturnover. There isno
comprehensive programme forthe
training ofofficials innegotiating
skills. TheGeneva Mission isstaffed
withonlytwoprofessionals. Arelated
problem ishowtoretain skilled staffin
theministries.UNDP/
(AERC)Seeimmediate above A(l), Point 10.
Inaddition, UNDP willcover thecostof
National andSub-regional sectoral
(agriculture, textile, clothing &natural
resources) studies toenhance government
capacity foranalysis andformulation.
UNCTAD Please refer toA(l)10 above.
WTO Athree week trade policy course for
English-speaking Least-Developed
countries (including Uganda) willbeheld
(1998/1999).
Thiscourse willcontain ageneral training
forenhancing negotiating skills for
participation inmultilateral trade
negotiations. (SeeI.P.)WT/COMTD/IF/10
Page9
Technical assistance needs identified in
thequestionnaireOrganization Response
Inreply toquestion B(g):
Technical assistance needs asregards to
supply constraintsWorld Bank TheForeign Investment Advisory Service
(FIAS) willcomplete (inlate1997) a
review oftheforeign investment lawand
regulatory environment. Future work on
reducing administrative barriers to
investment andonstrengthening the
investment promotion agency isunder
discussion withthegovernment.
Enhance efficiency oftheservices
sector; e.g.banking, tourism,
insurance, clearing andforwarding &
consultancyITC Astudy ontourism isforeseen under the
I.P. Assistance inthepromotion oftrade
inservices willbeprovided under the
ongoing inter-regional project.
UNCTAD Uganda participated inthetraining program
toenhance thecompetence ofinsurance
supervisory staffunder theongoing
programme.
World Bank Such technical assistance isprovided within
theongoing Financial Sector Adjustment
Credit, andunder theplanned Protected
Areas Management Project.
Micro-finance forSMEs 'sector UNDP UNDP intends toaddress thisrequest in
theframework ofitsprivate sector
development programme.
World Bank Astudy ison-going toformulate the
appropriate strategy.
Human capacity development, e.g.
building upcorporate/managerial
capacity, strengthening capacity to
formulate andimplement trade policyITC Trade-related human resource development
ispartoftheongoing projects. In
addition, seeI.P.*
UNCTAD Anational training programme willbe
organized fortrade policy makers andthe
business community. (SeeI.P., Output 2.3)
UNDP Under theregional programme, UNDP will
finance National andSub-regional sectoral
(agriculture, textile, clothing &natural
resources) studies toenhance government
capacity foranalysis andformulation.
World Bank Thistechnical assistance isprovided under
theongoing Private Sector Competitiveness
Project (seeabove)
Institutional Capacity Building (ICBP);
SAC III
*Funds arerequested.WT/COMTD/IF/10
Page10
Technical assistance needs identified in
thequestionnaireOrganization Response
Question B(g)(cont.):
Upgrade trade support institutions to
provide timely andother relevant
informationITC Strengthening trade support institutions is
envisaged under theIP.*
UNCTAD TheTrade Point hasbeen established atthe
Uganda Export Promotion Council. Its
development willbepursued.*
Programmes topromote exports and
diversify production baseITC SeeI.P.*
Ongoing projects include assistance in
market research, andtrade missions for
agro-based projects andleather goods.
Thisincludes participation ofenterprises in
buyers-sellers meetings andorganization of
relevant workshops.* Inaddition, the
Gourmet Coffee Project willsupport
activities tomarket andexport gourmet
coffee aswellasdeveloping techniques for
quality upgrading andmarketing strategies.
Infrastructural development World Bank Itisaddressed bytheongoing Power,
Water, Transport, Enterprise Development
Project.
Enhance efficiency ofcustoms
administrationUNCTAD Thisisaddressed bytheongoing
ASYCUDA project.
Strengthen thelegal system, in
particular thesystem oflegal
enforcementWorld Bank Please refer toA(k) above
Develop local technological capability Agencies indicated awillingness to
cooperate withtheGovernment toidentify
specific needs inoperational terms and
establish priorities. Further consultations
withtheGovernment willbenecessary to
develop specific projects andprogrammes
andtoexplore funding.
*Funds arerequested.WT/COMTD/IF/10
Page11
Technical assistance needs identified in
thequestionnaireOrganization Response
Inreply toquestion B(q):
Technical assistance needs inthearea
oftrade promotion andsupport servicesIMF Please refer toA(k)
Human resource development, inthe
field ofmarket research, product
development, trade support and
promotion, etc.bysetting up
specialized training institutions or
enhancing thecapacity ofexisting
institutions (e.g. training oftechnical
staff, introducing relevant courses, etc.)ITC Please refer toB(g)andI.P.*
Strengthening ofthetraining institutions in
foreign trade isforeseen under theongoing
Capacity Building Programme forTrade
andDevelopment.
UNCTAD Please refer toB(g)andI.P.*
World Bank Please refer toA(k)
Setting upoftrade andinvestment
promotion offices (e.g. inEurope and
Middle Eastern countries)
Design andimplement export incentive
compatible withURAG onTRIMs and
subsidies)UNCTAD UNCTAD willadvise thegovernment with
respect toinvestment codes and
promotional strategies. (SeeI.P.,
Output 2.4)*
Aninvestment policy review willbe
undertaken (1997-1998).
Appropriate export financing schemes
(e.g. micro-finance), particularly for
SMEsITC Advice ontheharmonization ofbank
guarantees willbeprovided under the
ongoing programme ontrade financing. A
national component toexplore micro-
finance forSMEs willbediscussed.*
UNDP Intheframework ofitsprivate sector
development programme, UNDP will
support activities aimed atstrengthening
national capacity forentrepreneurship and
enterprise development (including capacity
building fornegotiations, training,
technology transfer, business advisory and
support services etc.)
aswellasmicro-finance forSMEs andthe
review andrevision ofthepolicy and
legislative framework forSMEs.
World Bank Thisisaddressed bytheongoing Enterprise
Development Project.
*Funds arerequested.WT/COMTD/IF/10
Page12
Technical assistance needs identified in
thequestionnaireOrganization Response
Question B(q)(cont.):
Programmes foreffective utilization of
(regional) markets: comprehensive
market research toestablish actual
potential ofregional markets for
specific products, including
investigating newmarkets, staging
buyer-seller meetings under trade
missions, etc.ITC Please refer toB(g), B(q)andI.P.*
Establish aTrade Promotion Centre as
aresource centre forthelatest
communications andon-line computer
access tomarket information inUganda
andabroad, inparticular toidentify
opportunities arising from theURAG,
andtraining andinformation infutures
andriskmanagement; toprovide
modern facility forproduct samples, as
wellasforlocal andinternal
conferences, andrepresentative offices,
meeting andtraining areas forlocal
companies (Note: aproposal forthisis
currently under discussion)ITC Support isforeseen fortrade-related
institutions. (SeeI.P.)*
*Funds arerequested.WT/COMTD/IF/10
Page13
Technical assistance needs identified in
thequestionnaireOrganization Response
Inreply toquestion B(v):
Technical assistance asregards market
access
Creation ofawareness ofexisting
market-access opportunities and
preferences, andorganization of
specialized trade missions toregional
markets andabroadITC SeeB(g)andI.P.*
Issues alsobeing addressed under the
ongoing COMESA project.
UNCTAD Please refer toB(g), (Trade Point)
Enterprise development: programmes
toimprove quality, design and
packaging ofproducts, anddevelop
skills inproduct andmarket
developmentITC Please refer toB(g)andI.P.*
UNDP UNDP intends touseitsprivate sector
development programme toaddress this
request.
Strengthening thecapacity ofthe
National Bureau ofStandards to
enforce quality standards ofexport
products tomeet TBT andSPS
requirementsITC SeeI.P., Output 3.8*
UNDP UNDP intends touseitsprivate sector
development programme toaddress this
request.
Enhance efficiency ofcustoms
administration andtransportation
system toenable exporters tomeet tight
delivery schedulesUNCTAD SeeB(g), ASYCUDA above.
Theregional COMESA project, the
Advance Cargo Information System
(ACIS), provides assistance incargo
tracking systems.
(Note: Themain problem isthe
inefficient andnon-competitive
production oftradeable goods and
services)ITC Please refer toB(g)andI.P.*
*Funds arerequested.WT/COMTD/IF/10
Page14
Technical assistance needs identified in
thequestionnaireOrganization Response
Inreply toquestion C(b):
Summary oftechnical assistance needs
according topriorityIMF IMF toprovide assistance:
(1)Toreview andupdate customs
legislation andregulations and,
(2)Torationalize theimport tariff and
coordinate itwiththedomestic indirect
taxsystem,
toassure efficient collection ofrevenues.
(1998: commitment inprinciple)
Please refer toA(k)
1.Design (a)programme(s) thatwill
realise technical assistance
requirements withregard toURAG
needs outlined inA(k)i-vii,
especially enhancing bothhuman
andinstitutional capacities to
manage WTO mattersUNCTAD Please refer toA(k) andI.P.*
WTO Please refer toA(k)
2.Design aprogramme thatwill
realise technical assistance needs
onspecific areas ofWTO
agreements, especially on
notifications, public sensitization/
education onURAG/WTO,
strengthening enquiry points,
customs valuation andmore
importantly, develop local trade
negotiating capacity toenable
Uganda toactively participate in
future trade negotiations onthein-
built agenda and"new issues"UNCTAD Please refer toA(k), A(l)Point 10,B(g),
andI.P.*
WTO Please refer toanswers toA(k), A(l)1,
A(l)3 andA(l)5.
3.Provision ofappropriate trade
finance/ schemes, especially
tailored toassist exporters (export
finance)ITC Please refer toB(q)
*Funds arerequested.WT/COMTD/IF/10
Page15
Technical assistance needs identified in
thequestionnaireOrganization Response
Question C(b) (cont.):
4.Development ofinfrastructure,
especially thedevelopment of
serviced landandintroduction of
Export Processing Zones, and
expand coldstorage facilities at
Entebbe Airport, particularly to
handle fishexports andother
perishables
5.Enhancement ofinstitutional and
human capacities ofexport
facilitating agencies (e.g. UEPB,
UNBS, UTB, DFT, UIA, UCDA,
CDO) sothattheyprovide the
much needed hands-on support
services (i.e.farming
demonstrations, extension and
provision ofmarketing services,
etc.) anddelivery oftourism
servicesITC/
UNCTAD/
WTOSeeI.P.
UNCTAD Please refer toB(g)
World Bank Thisisprovided under theongoing Cotton
Project.
Provision ofinternet connectivity ITC/
UNCTADSeeB(g)(Trade Point)
WTO Onecomputer willbeprovided bythe
WTO tothefocal point inUganda. This
includes alinkuptotheInternet.(1998)
Training onaccess anduseofInternet
resources andofCD.Roms willbe
provided toUganda. (1998) (SeeI.P.)
Eradication ofwater hyacinth World Bank Thisisprovided intheongoing Lake
Victoria Project.
Re-orientation oftraining/system
programmes toproduce practical
graduates intrade, including WTO
matters, riskmanagement and
augmented withrelevant andtargeted
workshops/seminarsITC/
UNCTAD/
WTOSeeI.P.WT/COMTD/IF/10
Page16
Technical assistance needs identified in
thequestionnaireOrganization Response
Question C(b) (cont.):
Provision ofsupport toregional
informal pressure groups, such asthe
USAID sponsored "East African
Transportation Initiative (EATI)", a
private/public sector initiative which
lobbies governments inEastAfrica to
easetransportation bottlenecks sothat
overall transport costs, especially to
land-locked countries, arereduced.World Bank Thisisaddressed intheongoing Transport
Rehabilitation Project andtheongoing
Cross-Border Initiative (CBI).WT/COMTD/IF/10
Page17
Technical assistance needs identified in
thequestionnaireOrganization Response
Inreply toquestion C(d):
Technology assistance needs inthearea
ofinformation technology, including
training ofhuman resources
Uganda 'stechnological capacity isstill
initsnascent stages. Certainly, avery
small percentage indeed canuse
information/communication tools such
asCD-ROM, theinternet, andothers.
Hence, agreat dealoftraining and
support isnecessary inthecontext of
trade development.UNCTAD Please refer toB(g)(Trade Point)
UNDP Please refer toA(l)andB(g)
WTO Please refer toC(b)WT/COMTD/IF/10
Page18
WTO, UNCTAD AND ITCINTEGRATED PROGRAMME FROM AFRICA (IP)
UGANDA
I. CONTEXT
Ajoint"IntegratedTechnicalAssistanceProgramme"wasdevelopedin1996byITC,UNCTAD
andWTO tohelpselected least-developed andother countries inAfrica, become more effective
participants inthenewworld trading system andtoimplement theUruguay Round Agreements. The
programme provides forinformation andtraining activities aimed atbuilding localcapacities forthe
understanding andmanagement ofmultilateral trading system (MTS)-related issues. Uganda wasamong
theeight selected African countries, covered bytheProgramme*,onapilotbasis. Aprogramming
exercise wasundertaken in1996, toallow thethree international organizations todesign acountry
specific technical assistance project.
Inthisframework, aneeds identification mission wasorganised jointly byaWTO andITC
teaminKampala from4to5July1996, totakestock ofthesituation withregard totheimplementation
oftheUruguay Round Agreements (URAs) andtoenvisage withofficials from various ministerial
departments thepriorities ofthecountry interms offollow-up tothesaidAgreements. Asecond mission
byITCfollowed from 24to31August 1996, toassess theidentified needs andtoestablish further
contactswithUgandanenterprises,traininginstitutionsandotherpublicadministrationofficials,involved
intheimplementation oftheURAs. Thefinalaimofthefieldmission wastodesign atechnical assistance
Project tohelpUganda intheimplementation andfollow-up oftheURAs. ThisProject ispartofthe
above-mentioned Integrated Programme. Thisproposal istheresult ofbothinvestigation missions and
meetings heldwithUgandan authorities, institutions andenterprises. Itcontains details ofactivities
tobeimplemented byITC, UNCTAD andWTO, respectively.
II. DESCRIPTION OFTHE SUBSECTOR
A. Economic Background
1. Recent economic situation
TheUgandan economy hasbeenimproving since1993(seetablebelow).The economy started
expanding rapidly in1987, culminating inarecord 10.6percentgrowth in1994. In1996, therate
ofeconomic growth edged downwards to6percentfrom 8.5percentin1995. Theperformance of
agriculture remains themain determinant ofeconomic growth. Themacroeconomic framework is
favourable, withinflation at7percentin1996. Private consumption andgross fixed capital formation
accounted for84percentand17percentofgross domestic product (GDP), respectively, in1995.
Theperformance oftheUgandan economy under theEconomic Recovery Programme andits1993
successor, theRehabilitation andDevelopment Plan, wasimpressive.
Selected Economic Indicators forUganda
1992 1993 1994 1995 1996
RealGDP growth (percent) 8.4 5.3 10.6 8.5 6.0
Merchandise Exports (US$ million) 169 254 577 555 500
Merchandise Imports (US$ million) 622 672 1,086 1,180 1,250
Current account (US$ million) -142 -67 -164 -114 -200
*Benin, Burkina Faso, Côte d’Ivoire, Ghana, Kenya, Uganda, Tanzania, Tunisia.WT/COMTD/IF/10
Page19
2. Features oftheUgandan economy
Upon independence in1962, Uganda 'seconomic fortunes appeared solidly based inafavourable
natural environment andrelatively well-developed infrastructure. With apercapita income ofsome
US$200, Uganda currently ranks among thepoorest countries intheworld. Thisisattributable mainly
tointernal problems ofthepastand,thus, isamenable topolitical andeconomic reform. Capitalizing
onreforms since 1987 andonmassive foreign support forinfrastructural rehabilitation, theUgandan
economy hasexpanded rapidly inrecent years.
Agriculture currently absorbs 80percentofthecountry 'slabour force, contributes 50percent
ofGDP and90percentofexport earnings. Cultivation offoodcrops -bananas (matoke ),cassava,
sweet potatoes, millet andmaize -isbyfarthemostimportant domestic activity, while coffee dominates
exports. Agricultural processing industries (coffee, beverages, textiles, leather) arethemainstay of
Uganda 'ssmall manufacturing sector, whose share inGDP islessthan10percent.
3. Objectives andstrategy oftheeconomic recovery programme
InMay1987, theGovernment ofUganda launched anEconomic Recovery Programme (ERP),
centring onthefollowing objectives andmeasures:
(i) Export competitiveness -narrowing thegapbetween official andfreemarket exchange
rates, liberalizing foreign exchange surrender requirements, andreplacing restrictive
export licensing requirements byacertification scheme;
(ii) Agricultural policy reform -restoring incentives forproducers through theabolition
ofprice controls andinefficient marketing monopolies;
(iii) Foreign investment promotion -introducing investment incentives andguarantees under
theInvestment Code, returning expropriated properties;
(iv) Budgetary reform -increasing revenue mobilization andenhancing expenditure control;
(v) Reduction ofinflation -preventing excessive monetary expansion, through increased
budgetary discipline anddevolution oftheBank ofUganda 'scommercial banking
activities intheareaofcropfinance.
Reflectingthesepolicychanges,theeconomyreboundedstronglyin1994,withrealGDPgrowing
by10.6percent.
Building onprogress under theERP, theGovernment announced asuccessor programme -
theRehabilitation andDevelopment Plan(RDP) -in1993. Itsobjectives weretoincrease economic
growth; bring down inflation to5percent; further reduce macroeconomic imbalances andimprove
theexternal account position; andeliminate existing pricedistortions inproduct andfinancial markets.
Implementation focused ondevelopment anddiversification oftheexport base; mobilization ofdomestic
savingsbystimulatingprivatesavingsandreducinggovernmentdeficits;investmentpromotion;reduction
offoreign debt; reform oftheGovernment budget withaview toenhancing economic andsocial
effectiveness; andmore efficient useoflabour andlandinrural areas foragricultural production.WT/COMTD/IF/10
Page20
4. Exchange rateandexternal accounts
Uganda 'sfixed exchange-rate regime ofthe1980s, inaninflationary environment, ledto
significant overvaluation oftheofficial rate. Asafirststeptowards exchange rateunification, the
parallel market waslegalized inJuly1990 andhanded overtoauthorized foreign exchange bureaux.
InJanuary 1992, anauction system wasintroduced forofficial foreign exchange and,finally, in
November 1993, aninterbank foreign exchange market wasestablished totakeoverboththeofficial
andparallel markets within aunified floating exchange ratesystem.
SincetheMay1987devaluationofsome70percent,whichsettheexchangerateofUShillingat
60perUSdollar, theshilling 'sexternal value felltoabout USh1,200 perdollar byDecember 1993,
butin1996 theexchange raterebounded toUSh1,000 perdollar. Theauthorities attribute thisrise
inparticular toimprovement intheteaandcotton sectors; lowinflation; withpositive interest rates;
investors 'growing confidence intheUgandan economy; repatriation offunds fortherehabilitation
ofreturned Asian properties; andforeign aidflows channelled through Uganda towards Rwanda. While
therecent surge inworld coffee prices islikely toimprove Uganda 'sexternal accounts atleast
temporarily, theGovernment isconcerned thattheaccompanying upward pressure ontheshilling may
hinder export diversification. ACoffee Stabilization Taxwasintroduced inOctober 1994, inpartto
retard suchappreciation.
5. Composition anddirection ofmerchandise trade
Total merchandise exports declined bynearly 11percent, from US$555.3 million in1995
to$500 million in1996, inresponse toafallincoffee earnings triggered byadropincoffee prices
andaplunge incereals andbeans exports. While littlechange wasrecorded intheexports oftobacco,
exports ofhides andskins, tea,cotton, fishandservices rose. Principal exports in1995 werecoffee,
gold, maize, fishandfishproducts, andweredirected mainly totheEuropean Union (Spain, France,
Germany, ItalyandNetherlands), which gavepreferential access toUganda 'sexports under theLomé
Convention. From 1992 onwards, merchandise imports grew steadily by19percenttoreach
US$1.25 billion in1996 inresponse tostrong demand forimported capital goods andthecontinuing
benefits oftradeliberalization. Mostimports entered fromKenya, theEuropean Union (United Kingdom
andGermany), Japan andIndia. Imports comprised machinery andtransport equipment, manufactures
andmineral fuels.
6. Trade inservices
Uganda hasconsistently beenanetimporter ofservices (non-factor services). While tourist
receipts havegrown inrecent years, outflows expanded more rapidly duetoincreased payments for
technical assistance aswellasfortravel, educational, medical andother services.
7. Outlook
Inlinewiththemacroeconomic targets promulgated intheRecovery andDevelopment Plan,
theauthorities forecast thatrealGDP willgrow atthesame ratein1997 asin1996 (6percent).
Inflation isalsoexpected toremain at7percentduring 1997/98. Thegrowth target isbased onnormal
weather conditions, afavourable harvest andthemanufacturing sector 'scontinued economic drive.
While export earnings decline toanestimated US$490 million during 1997/98, thestrength ofthe
Ushilling mayaffect thedevelopment ofalternative activities.
Strong continuing economic expansion depends essentially onthecountry 'sability topromote
agricultural production, encourage diversification within andoutside thefarmsector, gradually integrate
itslarge informal sector andeasethecurrent account constraint.WT/COMTD/IF/10
Page21
8. Trade policy features andtrends
(a) International obligations
Uganda isaMember oftheWorld Trade Organization. Prior tothat,Uganda became a
Contracting Party totheGeneral Agreement onTariffs andTrade on23October 1962 under the
provisions ofArticle XXVI:5(c) oftheGeneral Agreement.
Uganda 'stradepolicies werereviewed bytheWTO 'sTrade Policy Review Body (TPRB) from
27to28July1995. Members oftheTPRB wereoftheopinion thattrade liberalization, underpinned
bybetter macroeconomic management hadhelped torestore asound basisforinvestment, employment
andgrowth. Uganda wasencouraged topersevere initsefforts torationalize thetaxandtariff system,
abolish remaining traderestrictions, simplify administrative procedures andimprove theinfrastructure.
Members alsorecognized Uganda 'srequest fortechnical assistance inidentifying areas concerned and
preparing changes.
Uganda isasignatory totheLomé Convention, theOrganization ofAfrican Unity (OAU),
theAfrican Economic Community (AEC), Kagera Basin Organization (KBO), andtheCommon Market
forEastern andSouthern Africa (COMESA).
(b) Uruguay Round commitments
Ugandahassubmitteditsschedulesofconcessionsongoods(ScheduleCXXVI)andcommitments
inservices. Intheareaofgoods, Uganda bound allagricultural products ataceiling levelof80per
cent,withexceptions on16HSchapters bound between 40percentand70percent.Other duties and
charges werepegged at10percent,12percentand30percentdepending ontheproduct. Industrial
products covered 15HSchapters, bound between 40percentand80percent, andother duties and
charges fixed between 0percentand30percent.Uganda 'sschedule ofbound services covered only
onesector -tourism andtravel-related services.
Legislative alignment isbeing considered bytheUganda LawReform Commission, which
benefits fromWorld Banksupport fortherefurbishing ofUganda lawsandregulations intheframework
oftheliberalization process.
Uganda hasrequested thebenefit ofthetransitional period fortheimplementation ofWTO
valuation method, under theagreed provisions onCustoms Valuation. TheUganda Revenue Authority
(Customs andExcise) intends tostartimplementation ofWTO valuation inthebeginning of1998.
Itneeds technical assistance inthisrespect. Ontheother hand, thecountry nolonger usesimport
licensing schemes, itapplies theCOMESA anti-dumping legislation, while itspreshipment agreement
withSGScovers quality, price andquantity aspects.
9. TheUgandan export base
After alongperiod ofcivilunrest during the1980s, thatbrought theUganda economy toa
virtual collapse, anational policy document wasadopted. "TheWayForward" wasdesigned tocreate
"anindependent, integrated, selfsustaining economy". Economic development isconsidered tobethe
baseforpeaceandstability.Uganda’seconomicdevelopmentpolicyreservesleadingrolesfortheprivate
sector andexports, thatareexpected tobecome theengines ofgrowth.
Asindicated, keyelements ofthereform strategy implemented bytheUganda Government,
include:WT/COMTD/IF/10
Page22
- Export promotion;
- reform ofagriculture, especially thederegulation ofcashcropmarketing;
- foreign investment promotion.
Ugandan manufacturing firms arejustrestarting inbusiness. Theyinherited atotally devastated
infrastructureandeconomicenvironment.Theseindustriesstillneedsomeprotectionasinfantindustries,
butalsohavetoperform against abackground ofliberalization andincreased competitiveness, especially
inthesubregion where theEastAfrican Cooperation (EAC) wasrevived twoyears ago.Theright
mixofliberalization andprotection hastobereached, butthe"Private sector development strategy"
being designed, withUNDP assistance, hasnotyetdefined thisalchemy. Local production, particularly
newly privatized industries, isbelieved toneedastimulus, especially through taxreductions onimported
inputs andrawmaterials.
TheUgandan economy isstillverymuch dependent onagriculture, which accounts forabout
twothirds ofGDP. Coffee andteacontribute 35percenttoforeign exchange earnings. Other traditional
andnon-traditional export crops include cotton, tobacco, oilseeds andflowers, while cereals, beans,
fruits, groundnuts, fishandcattle areother main agricultural products. Interms ofemployment,
agriculture andrelated industrial processing activities ensure 80percentofthetotalnumber ofjobs.
Furthermore,Ugandahassignificantpossibilitiesforexpansionandgrowth.However,itlacksinvestment
andknow-how toincrease productivity andtheadaptation ofitseconomic activities tomarket
requirements.
Main Export Products ofUganda
(1990-1994, US$'000)
Products 1990 1991 1992 1993 1994
Traditional export crops
Coffee
Cotton
Tea
Tobacco140,384
5,795
3,566
2,941120,794
11,731
7,816
4,53395,372
8,218
7,721
4,204106,741
2,287
11,141
7,011342,669
3,262
11,802
6,607
Non-traditional export crops
Sesame seeds
Gold
Fish
Beans andother legumes5,234
1,386
4,150
1,36910,517
9,648
4,183
4,2746,478
49
6,498
2,7822,511
904
8,973
12,4661,476
224
10,871
12,267
Maize
Cattle hides andskins
Soya beans
Soap
Pepper
Vanilla
Banana
Groundnuts
Cocoa beans
Pineapples
Other fruits
Roses4,072
504
1764,188
3,363
468
197
176
519
121
2663,894
3,375
210
162
1,124
281
4,55519,877
5,429
836
1,301
357
391
208
1,124
714
570
528
20828,537
11,185
726
1,739
434
674
341
615
44
224
546WT/COMTD/IF/10
Page23
Products 1990 1991 1992 1993 1994
Traditional exports
Non-traditional exports
percentoftotal
Allproducts152,686
24,972
16.4
177,658141,185
43,578
30.9
184,763115,515
32,342
28.0
147,857127,180
66,763
52.5
193,943364,339
90,307
24.8
454,646
Non-traditional exports have shown asignificant increase, especially inthose from the
agricultural sector. Among traditional crops, however, coffee andcotton haveexperienced aslowgrowth
inquantitative terms, duetoinsufficient diversification andconstraints onproduction. Thesame trend
wasnoted intheindustrial sector where much ofthemachinery hasbecome obsolete. Some local
manufacturing activities ofvehicle parts, plastic andelectrical products haveexperienced relatively
rapid growth, withnewup-to-date technologies made available byrecent investments.
B. TheInstitutional Framework
1. Focal point fortheimplementation oftheMTS
Thefocalpointfortheimplementation ofWTO Agreements istheDirectorate ofForeign Trade,
Ministry ofTrade andIndustry. Itisappropriately staffed, butistobetechnically strengthened. No
formal coordination facility hadyetbeencreated, atthetimeoftheneeds assessment missions, but
theMinistry ofTrade andIndustry doesintend formally tosetthisup.Thisunitwould belinked with
anInter-institutional Committee, toimprove themanagement ofUganda ’smembership inWTO. In
themeantime, resource persons havebeendesignated, attheDirectorate ofForeign Trade, Ministry
ofIndustry andTrade, tohandle allWTO-related matters andtoactasthefocalpoint forthefollow-up
oftheURAs.
2. Trade promotion andprivate sector institutions
Thefollowing aretheprincipal parastatal institutions andlocalnon-governmental organizations
(NGOs) assisting private sector andforeign trade enterprises:
- TheUganda Export Promotion Board (UEPB) isintheprocess ofbeing restructured.
Although newstatutes havebeenadopted, thetransition period isnotexpected toend
soon, duetothelackofresources andpriority attention fromtheGovernment andthe
international donor community. Foreign technical assistance hasfavoured specific
subsectors, suchastheAgri-Business Development Centre, supported byUSAID, or
theUganda SilkAssociation, thatbenefits from European Union assistance.
- TheUganda National Chamber ofCommerce andIndustry (UNCCI) wasreported in
mid-1996 tobevirtually inactive, pending general elections formembership ofits
managing bodies.
- ThePrivate Sector Foundation (PSF), which groups theUganda Manufacturers ’
Association(UMA)and12othermajorbusinessorganizationsrepresentingabout85per
centoftheformal sector inthecountry, isakeyinstitution inenterprise development
inUganda. TheUNDP-supported private sector development programme (PSDP) is
joining hands tofinalize aprivate sector development strategy. PSFissponsored by
theWorld Bank. Theprivate sector competitiveness project comprises fourcomponents
among which areabusiness environment component, abusiness Uganda development
scheme (BUDS), andanequity financing andinvestment promotion andfacilitationWT/COMTD/IF/10
Page24
component. PSFintends tosetupalibrary anda"database" withaccess toInternet
andtoengage inhuman resources development, focusing ontrainers.
- Uganda Women Entrepreneurs Association Ltd.(UWEAL) isbasically composed of
business women whoareactive inlocalproduction andservices. Some areinvolved
inforeign trade business, butlackthecompetitiveness toachieve better export
perspectives.
III. PROJECT JUSTIFICATION
A. Problems andConstraints oftheForeign Trade Sector
Asinmany other developing countries, export diversification isthemostimportant constraint
onexport development inUganda, while export growth isthekeytoemployment creation andfurther
economic andsocial development. Theexport baseremains limited eventhough Uganda hasgreatexport
potential andprobably certain comparative advantages forselected non-traditional products, suchas
prime quality silkandcoffee. Technical assistance projects areexpected toaddress theissueofexport
diversification, byidentifying these products andhelping toachieve favourable results intheshort to
medium term.
Readily available andup-to-date marketing information isalmost inaccessible toenterprises
inUganda. There isnoadequate tradeinformation system toprovide updated information toexporters
anddecision makers intheadministration. Foreign trade enterprises listaccess tomarket information
among theirmost urgent needs, particularly ontrading opportunities andonexport outlets. UEPB
operatesatradeinformationfacilityusingCOMESATINET,thatbenefitedfromITCtechnicalassistance
inthepast. With financing from theAustrian Bureau forRegional Cooperation, theUganda
Manufacturers ’Association (UMA) recently obtained aconnection totheTechnological Information
Promotion Systems (TIPS) operated fromRome. ThePSF,which includes UMA among itsprominent
members, intends tosetupatrade information facility. TheMinistry ofTrade andIndustry hasalso
established asmall library called theTrade andIndustry Information Centre, builtupwithUNIDO
assistance andcontaining some ITCpublications. TheCentre doesnotseemtobeveryactive, butcould
bereinforced ifaReference Centre were tobeestablished there.
Quality management isbecoming anissue forenterprises engaged inexport production, as
wellasthose engaged inimporting from neighbouring anddistant countries. Thisisemphasized by
theprivatization andliberalization ofmost sectors oftheUgandan economy. TheUganda National
Bureau ofStandards (UBS) stillseems tolacktherequired technical capacities.
Thefragility ofthefinancial sector isanimpediment toheavy investment forexport. There
areinfactnoadequate facilities forexport credit andfinancing, which widens thecompetitiveness
gapwithcompeting nations. World Bank assistance programmes aretargeting thisaspect.
Thehuman resources areavailable, butdonothavesufficient skills tomeetthedynamic nature
ofthemultilateral trading system. Institutional capacity islowandthereislittleknowledge oftheURAs.
Thisapplies topublic sector officials andevenmore sotoprivate sector executives, atbothinstitutional
andenterprise levels, especially asbusinesses arerunmore ona"traditional basis" thanmanaged with
professional skills.
Although Uganda isknown tohavethelowest tariffs inthesubregion, smuggling ofgoods
fromvarious origins seems tobeabigproblem. Infactthehighcostofinputs reduces competitiveness
oflocalindustries. Many agricultural andindustrial products could become more competitive ifcosts
were better assessed andprices fixed according toadequate market strategies.WT/COMTD/IF/10
Page25
B. Needs forTechnical Assistance
Thefollowingneedshavebeenexpressedbyvariousinstitutionsmetduringtheneedsassessment
andprogramme design missions.
1. Understanding therules ofthemultilateral trading system
Understanding theimplications oftheUruguay Round onUganda ’seconomy isconsidered
tobeapriority formany public sector officials andprivate sector executives. Activities aiming at
enhancing theunderstanding oftheAgreements should target policy makers, suchasthemembers of
thePresidential Economic Committee ortheThink-tank Foundation, private sector executives,
parliamentarians, media professionals andjournalists whoshould betherelayofappropriate information
tothegeneral public.
2. Institutional support
Intheview ofUgandan officials, thecountry could benefit from theexperience ofother
developing countries, notably fortheadjustment oflawsandregulations tothestandards oftheURAs.
Areview ofthetrade andbusiness legislation isenvisaged bytheUganda LawReform Commission
andtheMinistry ofJustice. These twobodies needtobeassisted indrafting legislation thatcomplies
withtheAgreements.
TheCustoms Department alsoneeds technical support inadjusting theASYCUDA software
toincorporate WTO customs valuation methods, andtobuild upadatabase onfreight andinsurance
charges forthebetter valuation ofimported goods.
3. Capacity building
(a) Government
TheMinistry ofTrade andIndustry should beassisted insetting upandorganizing theInter-
institutional Committee, including thedesign ofitsrulesandprocedures ofoperation, theelaboration
ofashort- andmedium-term work plan, theestablishment ofworking groups andtaskforces andthe
adoption oftheirterms ofreference. TheInter-institutional Committee would enhance interlinkage
andsharing ofinformation between private sector andpublic administration, initiated intheframework
ofthePresidential Economic Committee.
Ugandan negotiators atinternational trade foraneedtobebetter acquainted withnegotiating
techniques andtoknow more about theissues andchallenges ofthese negotiations.
(b) Private sector institutions
Private sector representatives needtobebetter accustomed tothesame negotiating techniques
andtothechallenges these international negotiations present.
ThePrivate Sector Foundation isseeking toestablish acapacity todeliver business advice to
itsmembers andtodirect theinterest ofinvestors tonewhighquality products. TheUganda Coffee
Trade Federation alsoneeds tobeestablished asafunctional entity tobeabletoprovide itsservices
toalltheeconomic players inthecoffee trade andindustry, ranging from production atgrassroots
level toexport development. Institutional infrastructure needs tobeimproved inthisrespect, in
coordination withtheUganda Coffee Board.WT/COMTD/IF/10
Page26
(c) Enterprises
Seminars arerequired tomake individual firms aware oflawsandregulations governing
international business practices andtoenable business andindustrial communities toknow theirrights
under theAgreements. Enterprises needtobesensitized ontheimpact ofMTS intheirrespective areas
ofinterest. Thebenefits under current trade arrangements should bedemonstrated. Enterprises also
needtoidentify competitors andbusiness opportunities.
(d) Training institutions
Adequate training material ininternational tradeandbusiness management should beprovided
totraining institutions, suchastraining packs andcasestudies. Some oftheinstitutions metbythe
mission werealsofound toneedtraining equipment, suchaselectronic equipment, video systems, etc.
4. Enabling environment
Inrelation totheimprovement ofthebusiness environment, thefollowing activities were
recommended asbeing conducive toabetter business climate andmore efficient export activities:
- Conceiving andimplementing export incentives, compatible withWTO Agreements
onTRIMs andsubsidies.
- Helpindesigningadequateexportfinancingschemesandmechanisms,notablyinfavour
ofmicro andsmall enterprises. Access bySMEs andlarger firms tolocalandoffshore
financing isalsotobeimproved.
- Formulating anappropriate investment policy toencourage investment inagriculture.
Thereisaneedtosupportlocalindustries,recentlydivestedbytheGovernment,through
tariffs, taxremittances andinvestment incentives.
Government policies andtechnical assistance programmes andactivities areexpected togive
dueattention togender issues inprivate sector policies andexport promotion programmes. UWEAL
specificallyrequestsassistanceinsettingupadynamicsecretariattoprovideadvisoryservicestoUgandan
businesswomen.ThisAssociationintendstooperateaprogrammeofintensifiedcontactsamongbusiness
women inthesubregion, aswellaswithruralwomen involved inexportable production. Ithasalso
requested special assistance from ITC.
5. Product andmarket development
With liberalization anddivestiture, theroleofGovernment isbasically turned toward policy
formulation andeconomic arbitration. Inthefieldofexport thereisanurgent needtohelptoformulate
general private sector development policies inrelation totheprivate sector development programme,
andalsosectoral policies covering specific branches oftheeconomy andparticular product groups
andservices, suchastourism. Marketing strategies arealsoneeded fortargeting newmarkets for
specified products, suchasintheMiddle East, where Uganda could haveaproximity advantage.
Among theactions thatwould contribute tothediversification oftheUganda export baseand
export outlets, thefollowing activities would bewelcome:
- Actions tosensitize farmers totheneedforproduct diversification atfarm-root level,
through adequate information onalternative market outlets andexperiences ofother
countries. Inaddition todirect sensitization activities, there isaneedtoreinforce the
extension services inthisparticular field, tobuild upalocal capacity ofproviding
farmers andsmallholders withadvisory services inproduct diversification.WT/COMTD/IF/10
Page27
- Actions todevelop localandregional markets forsecond grade production (industrial
andagri-business sectors).
- Prospection ofnewmarkets andstaging ofbuyers-sellers meetings, aswellastrade
missions toneighbouring countries andother niche markets.
Uganda being aland-locked country, development perspectives existforforwarding andtransit
services. Some potential exists forthedevelopment ofconsultancy andadvisory services, especially
inthefieldofenterprise management. Training institutions require assistance inboosting thispotential.
Market diversification efforts should becoordinated withactions tofoster thenewly established
EAC andwithCOMESA andtheCross-Border Initiative (CBI).
6. Trade andmarket information
Market information isamajor needinUganda, where noefficient trade information system
isoperating toprovide ready-to-use dataoninternational demand forUgandan goods andservices;
onthequality requirements ofthese markets; onprices andother datathatwould facilitate market
penetration, aswellasonschedules ofconcessions under URAs. TheCOMESA TINET isoperated
attheChamber ofCommerce, witharather limited efficiency, sincealmost noinputs havebeenadded
tothedatabase bylocaloperators, limiting theirsharing withother TINET outlets.
Among thespecific needs, thefollowing should bestressed:
- Information onschedules ofconcessions under URAs.
- Efficientinformationnetworking.Assistancetoorganizationsthatwish/wanttonetwork
withotherrelevantinstitutions(equipment,trainingabroad,accesstoinformation,etc.).
- Improvedaccesstoinformationfacilities,particularlyontradingopportunitiestoidentify
opportunities arising from URAs.
- Quick flowofinformation needed fordissemination torelevant users, particularly in
respect ofcommodities suchascoffee andcotton.
- Training andinformation infutures trading andriskmanagement, alsointhecoffee
andcotton sectors.
- Upgrading oftheinformation infrastructure attheUganda Export Promotion Board,
theChamber ofCommerce, thePrivate Sector Foundation, theMinistry ofTrade and
Industry, theUganda National Bureau ofStandards, theUganda Women Entrepreneurs
Association, andofother business organizations.
7. Quality management issues
Most institutions andpersons interviewed feltthatinternational competition wasexpected to
shiftmore towards quality issues inthenearfuture, andrequested assistance toimprove localcapacity
inthisrespect:
- Intheagricultural sector, where theGovernment hasdivested andliberalized trading,
there isaneedtoreintroduce export grading inorder totapcomparative advantages
available toUganda, namely, inthecoffee andcotton industries, andtobetter motivate
smallholders forthemanagement ofquality.WT/COMTD/IF/10
Page28
- Qualitycertificationisnotdoneadequately.InformationontheprovisionsofAgreements
couldbepassedtoenterprisesthroughtheirumbrellaorganizations.Capacitiesinquality
auditing andmanagement needtobestrengthened.
- SPSinspectors atentry points ofimports needtraining toavoid rejection ofgoods at
receiving endsandtoprevent dangerous goods, suchasradiated milkorinfested meat,
fromentering Uganda. There isaneedtotakeoverfromPSIcompanies theinspection
ofimported goods. Inspection services oftheMinistry ofAgriculture, Animal Industry
andFisheries areconcerned, aswellastheUganda Bureau ofStandards (UBS).
- Advantage should bedrawn fromother countries ’Enquiry points andfromtheWTO
system ofmanagement oftechnical barriers totrade, thatfacilitates discussion ofquality
standards andlegislation inpartner countries.
- Testing capacities andquality control atentry points should bedeveloped.
Quality systems within export enterprises should alsobedeveloped andtesting equipment and
techniques should bemade available toimprove performance ininternational markets.
C. Export Development Potential
1. Traditional exports
Traditional exports arecoffee, cotton, teaandtobacco. Marketing channels havebeenprivatized
forthese crops. Private enterprises need assistance intheir efforts torehabilitate production and
processing capacities, aswellasinsecuring market andproduct diversification.
2. Non-traditional exports
Non-traditional exports include fish,oilseeds (such assesame, groundnuts, andcashew nuts),
pulses, maize andcereals, fresh andpreserved fruits, fresh, dried andground spices, essential oils,
including ginger andcardamom oils,flowers, andsilkcocoons andyarn.
Technical assistance should helptoidentify newmarkets andintroduce better technological
processes andprocessing methods thatwould improve productivity andhelptoensure thecompliance
withmarket requirements andstandards.
3. Services
Asaland-locked country, potential exists fordeveloping forwarding andtransit services to
improvehandlingofimportedgoodsandtoimprovecompetitionwithimportservicesfromneighbouring
countries. Transit facilitation isalsoamajor issue, when thedelivery timefrom Ugandan points of
export totheports ofMombasa, DarEsSalaam isfrom three toseven daysbylorry andmore than
tendaysbyrailroad. Aswellastheongoing work atPortBell,thatshould reduce transit time, afull-
fledged trade facilitation programme should cutthese delays andreduce transit costs.
Airfreight space islimited bythenumber ofinbound flights. Chartering should befacilitated
toincrease transport capacity forhighvalue exports. However, coldstorage capacity should alsobe
increased forperishable goods, thatwould justify cargo handling.
Good potential exists inUganda forthedevelopment ofconsultancy andadvisory services,
especially inthefieldofenterprise management. Training institutions require assistance inboosting
thispotential.WT/COMTD/IF/10
Page29
D. Ongoing Technical Assistance
Uganda benefits fromnumerous technical assistance projects andprogrammes, supported by
various donors. Inthefields related tointernational trade, thefollowing areparticularly relevant:
- Privatesectordevelopmentproject(PSDP),supportedbyUNDP,hascarriedoutseveral
studies thatwillcontribute tothedesign ofanational strategy andaction planforthe
development oftheprivate sector inUganda.
- Industrial andforeign tradepolicy analysis unit(IPAU), implemented byMTI, under
World Bank financing. Thisproject isexpected tostartsoon.
- Improvement ofimport operations andtechniques, implemented byITCwithSwiss
financing. Thecounterpart agency istheProcurement andLogistics Management
Association (PALMA).
- Export development project, implemented byITCwithUNDP financing. Thisproject
ended inmid-1996.
- Export development studies (EDS) andInvestment indevelopment ofexport agriculture
(IDEA), supported byUSAID. EDSended in1996, while IDEA began in1995. The
latter project provides assistance toproducers, traders andexporters ofnon-traditional
agricultural exports indesignated commodities. Theproject isimplemented bythe
Ministry ofTrade andIndustry.
- TheUganda Private Sector Competitiveness Project, under which thePrivate Sector
Foundation (PSF) wascreated, issponsored bytheWorld Bank (US$20.9 million,
tobeimplemented between 1996 and2001). Itinvolves fourcomponents: Business
environment, Business Uganda development scheme (BUDS), Equity financing and
Investment promotion andfacilitation component.
- Technology information promotion services (TIPS), implemented byUNDP with
Austrian financing.
Many other sectoral projects areunder way, among which are:
- Assistance totheUganda SilkAssociation, thatbenefits from theEUwith a
Ecu2million project, forthedevelopment ofsilkproduction andmarketing;
- cotton subsector development project (US$24.58 million, financed byIDA), forthe
rationalization ofcotton ginneries andpreparation ofbusiness plans;
- assistance totheUganda Coffee Trade Federation, supported bytheCommonwealth
Secretariat;
- cooperative finance andoilseeds project (financed from proceeds ofPL480);
- national leather andfootwear project, supported byUNDP forUS$740,000.
Inaddition, bilateral donors implement projects assisting theprivate sector andmicro businesses
inbusiness creation andmanagement (Austria Cooperation), business training (ODA), aswellasin
businessadvisoryservices(DANIDA),orliketheSwedishGovernmentthatassiststheNorthernUganda
Manufacturing Association (NUMA).WT/COMTD/IF/10
Page30
Thepresent Project oftechnical assistance forthefollow-up oftheUruguay Round Agreements
willintegrate itsactivities withtherelevant ongoing activities ofotherinternational agencies anddonors.
IV. OBJECTIVES AND OUTPUTS OFTHE PROJECT
A. Project Broad Objectives
Tofacilitate Uganda ’sfullintegration inthemultilateral trading system (MTS) based onthe
Uruguay Round Agreements.
B. Project Direct Objectives
1. Building anational capacity forunderstanding thechanging multilateral trading system and
itsimplications forUganda ’strade.
2. Conforming to,andseeking maximum advantage from, themultilateral trading system.
3. Enhancing Uganda ’sexport readiness.
C. Project Outputs andActivities Related totheFirstObjective Building aNational Capacity for
Understanding theChanging Multilateral Trading System anditsImplications forUganda ’s
Trade
Thefirstpurpose ofthisspecific Project forUganda istohelpthecountry inbuilding anational
capacity fortheunderstanding andthemanagement ofUganda ’smembership ofWTO. Capacity and
institutional building should cover thefollowing main points:
- Provision ofinformation andpublications;
- dissemination seminars andtechnical workshops;
- support fortheinstitutional back-stopping ofthecoordinating facility anditsinter-
institutional body;
- establishment ofReference Centres, Trade Points andrelated activities;
- training oftrainers inMTS matters.
1. Output 1.1TheInter-Institutional Committee tofollow-up theUruguay Round Agreements
strengthened
TheMinistry ofTrade andIndustry intends toformally setupacoordination unit.Thisunit
would belinked toanInter-Institutional Committee andwillmonitor tasks tobring Uganda ’slaws
andregulations inlinewiththeUruguay Round Agreements. TheCommittee willalsoimprove the
management ofUganda ’sparticipation inWTO. Itwillhelpenterprises intheidentification ofnew
export opportunities.
TheProject willprovide assistance totheInter-Institutional Committee, which should become
theofficial coordination facility andbeendowed withayearly workplan,aswellasamode ofoperation,
including drafting procedures ofpieces oflegislation tobeproposed. Aconsultation mechanism with
theenterprise sector should alsobeprovided for.
TohelptheCommittee insome ofthese tasks, theWTO willprovide thefollowing activities:WT/COMTD/IF/10
Page31
(a) Supply basic documentation ontheWTO Agreements;
Thisdocumentation willserve asthereference framework fortheInter-Institutional
Committee incarrying outitsfuture work.
(b) Supply therelevant documents ofthevarious WTO committees andworking groups;
Thisdocumentation willbedirectly related tothework oftheInter-Institutional
Committee onWTO.
(c) Include theMinistry ofTrade andIndustry inWTO 'smailing listofperiodical
publications
(d) Provide technical advice onanyissuefaced bytheInter-ministerial Committee onlegal
andinstitutional issues within theWTO ’ssphere ofcompetence, aswellasonits
ongoing activities.
Thistaskwillbefacilitated bytheestablishment atMTIofaReference Centre, withpossibilities
ofexchanging e-mail andaccessing theWTO server inGeneva, toretrieve information. Thepublications
willberegularly provided intheframework oftheReference Centre tobesetupunder Output 1.3
andcontribute totherealization ofOutput 1.6below.
Tofurther strengthen theInter-Ministerial Committee, UNCTAD willhelptodesign itswork
plans andassist inoperating itsworking groups andtaskforces. Inthisrespect, itwill:
(e) Helptodrafttheterms ofreference oftheInter-Ministerial Committee anddesign the
appropriate strategies totakeadvantage ofthetransitional periods allowed bythe
Uruguay Round Agreements.
(f) Foster andsupport participation insubregional meetings ofmembers oftheInter-
Ministerial Committee.
Twotechnical subregional meetings willbestaged inthesubregion byUNCTAD, which will
beattended byrepresentatives from theofficial focal points, incharge ofthefollow-up totheWTO
Agreements, intheEAC countries. They willengage inexchanges oftheirrespective experiences and
respective agendas.
2. Output 1.2Customs administration strengthened incustoms matters related totheUruguay
Round Agreements
Intheframework ofthisProject, WTO willcarry outactivities (a),(b)and(d)below. Itwill
alsobesupported byUNCTAD foractivities (c)and(e).
(a) Provide relevant information regarding theworkoftheWTO Committees dealing with
customs matters.
Ofparticular relevance toUganda, willbetheinformation onrules oforigin,
preshipment inspection andcustoms valuation.
(b) Provide information totheCustoms Department ontheimplementation ofthe
Agreement.WT/COMTD/IF/10
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Theinformation concerns inparticular thenotifications andalltheissues discussed
inthecontext oftheAgreement onImplementation ofArticle VIIofGATT 1994.
(c) Provide assistance totheCustoms Department onalltechnical matters relating to
customs tariffs.
Thisrelates inparticular totheschedules ofconcessions, therenegotiations under
Article XXVIII, theexemptions andissues linked totheUnderstanding onthe
Interpretation ofArticle II:1(b) ofGATT 1994.
(d) Provide information relating tothework oftheCommittee onRegional Trade
Agreements.
(e) Provide assistance onanylegalmatters relating toregional integration orfree-trade
areas.
3. Output 1.3Reference Centres onthemultilateral trading system established
AReference Centre willbeadedicated place, located inanexisting documentation facility
ortrade information library, where allrelevant documentation onthemultilateral trading system will
bereadily available andaccessible toprofessional users andtothegeneral public. Professional users
arecivilservants, staffofbusiness organizations, journalists, academicians andstudents, withspecific
tasks towork onthefollow-up totheURAs, suchaspreparation oftechnical papers, drafting of
legislation, writing ofarticles orlectures, etc.Theparticularity ofaReference Centre onthemultilateral
tradingsystem,isthatitnotonlyprovideswrittenandelectronicinformationtousers,butitalsoconnects
them withknowledgeable resource persons, whocanhelpthem tounderstand orinterpret therules,
oreventually solve issues andrespond toquestions concerning implementation. Theresource persons
willbeattached totheReference Centres, either onapermanent basis oroncall,tohelpusers find
theirwayinthetechnical andlegaldocumentation. They aretobeselected fromamong theofficials
andtrainers whowould havebenefited from training programmes byWTO, UNCTAD andITC, in
theframework oftheIntegrated Programme.
Dependingonthetargetusers,oneormoreReferenceCentreswillbeestablishedineachcountry
covered bytheIntegrated Programme, torespond tovarious needs. They willallhavethesame core,
thatisthefulltextoftheUruguay Round Agreements andtheirannexes, buttheCentres willdiffer
intheirconstitution, inrespect oftheadditional information specially needed bythetypeofusers they
areupon which theywillbetargeted. Theneedtoestablish more thanoneCentre isjustified bythe
variety ofadditional information required bydifferent users, aswellasbythedifferences innature
ofthetechnical andpolicy issues handled byofficials, business people andacademicians.
While theofficial Reference Centre willbasically focus, asindicated earlier, onlegal rules
andgiveaccess toofficial WTO documents, suchastheschedules ofconcession, thetextofthe
Agreements, andother official papers released during negotiations, theCentre geared tothebusiness
community willspecialize inthemore practical aspects ofMTS anddeliver, inaddition toofficial
material, information pertaining totheimplications forthiscommunity relating tobusiness andproduct-
specific data.
Enabling conditions willberequired from hostorganizations fortheestablishment ofthe
Reference Centres. These conditions willrelate totheeaseofaccess andopenness toother cooperating
institutions. Taking thisintoconsideration, theProject willprovide relevant documentation produced
byWTO, UNCTAD andITC, suchastheFinal Act,itsannexes, notes andreports, documents of
thenegotiating committees, working groups andpanels, CD-ROMs, etc.Documents ofother relevant
organizations willalsobemade available asnecessary.WT/COMTD/IF/10
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InUganda, afirstReference Centre willbeestablished attheMinistry ofTrade andIndustry,
primarily forusebyofficials andadministration representatives. Relevant documentation willbemade
readily accessible under thisProject. Another Reference Centre forusebythebusiness community
willbesituated atthePrivate Sector Foundation. AthirdReference Centre willbeestablished atthe
Makerere University, forusebytraining institutions, academicians andstudents. Oneresource person
willbeassociated witheachofthese Reference Centres.
Thethree executing organizations ofthisProject willendeavour toprovide theReference
Centres/contact points inKampala, withanInternet facility, through which theUgandan contact points
could easily access world trade information and,atthesame time, facilitate quick exchange of
information withITC,UNCTAD andWTO inGeneva. Aspartofthelink-up, theReference Centres '
e-mail addresses would beestablished tofacilitate aquick dissemination oftradeinformation toalarge
cross-section oftechnical assistance beneficiaries (e.g. government agencies, andthebusiness and
academic communities).
Accordingly, WTO willpurchase acomputer configuration fortheofficial Reference Centre
inUganda, attheMinistry ofTrade andIndustry, andpayforthenecessary link-up totheInternet.
WTO 'sparticipation willbeconfined toassisting theofficial focal point, suchaswithrespect to
documentation, Internet facilities, etc.TheReference Centre forthebusiness community willbe
establishedbyITC,intheframeworkoftheUgandanEconomicandTradeInformationSystem,described
below. ThethirdReference Centre atMakerere University willbeestablished byUNCTAD, andboth
UNCTAD andITCwillsecure thenecessary connections andprovide theneeded documentation. The
Reference Centre forthebusiness community atPSFwillalsobehooked uptotheITCandUNCTAD
databases, asneeded, suchasTrains, Juris, Qualidata, Packdata, MNS, MAST, etc.Specific training
willbegranted tothemanagers ofthethree Reference Centres.
(a) Establishment ofaReference Centre onMTS atthefocal point forWTO matters
Under theleadership ofWTO, theReference Centre willbeestablished attheInformation
Centre oftheMinistry ofTrade andIndustry, andadequate capacity builtuptomanage it.TheMinistry 's
library should berefurbished forthispurpose.
(b) Establishment ofaReference Centre forusebythebusiness community
Under theleadership ofITC,thesecond Reference Centre willfocus ontheimpact ofWTO
Agreements onbusiness. Thisunitwould besetupatPSF. Togrant equal access forallrelevant
institutions tothisReference Centre, anagreement should beprepared thatwillindicate theconditions
under which information willbemade available tousers through allprivate sector andparastatal
institutions.
(c) Reference Centre onMTS established atatraining institution
Theanalysis oftraining institutions inKampala hasdemonstrated thatthebestlocation ofthis
Centre, under theleadership ofUNCTAD, would beatMakerere University, where auniversity library
already exists withadequate infrastructure andgoodaccess conditions toalltheacademic community
inthecountry. TheLibrary hasaccess toInternet. Inaddition, most trainers metduring theneeds
assessment mission suggested oragreed tolocate suchafacility onMTS atMakerere University.
However, access totheCentre willneedtobeassured forprofessors andstudents fromother training
institutionsonanequalbasis(UgandaManagementInstitute,ManagementTrainingandAdvisoryCentre,
National College ofBusiness Studies, Faculty ofLawandFaculty ofCommerce, etc.).WT/COMTD/IF/10
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(d) Training ofthemanagers oftheReference Centres
Atraining course willbeorganized ondocumentation management tohelpthedesignated
ReferenceCentres'managersinarrangingandusingthedocumentsandmultimediamaterial.Thetraining
module willbedesigned andimplemented byITC.
4. Output 1.4National training capacity inMTS issues reinforced
(a) Training oftrainers ingeneral MTS matters: theGeneva course
Animportant partoftheProject relates tothetraining oftrainers. Themain objective ofthe
training programme istoenhance knowledge oftherulesoftheMTS andtohelptostrengthen national
training capacities, geared toassist public andprivate sectors tomanage suchmatters.
From eachoftheeightselected countries under theIntegrated Programme, sixcandidates will
beselected forparticipation inthetraining courses, representing public andprivate sector, aswell
asqualified persons fromtraining institutes. ITC,UNCTAD andWTO willaccommodate twotrainees
each. Thecourses willbeconducted inGeneva, andstarted inthesecond semester of1997forEnglish-
speaking trainers, followed byacourse forFrench-speaking trainers inearly 1998.
Participants arerequired tohaverelevant background ininternational trade andtheWTO
multilateral trading system, aconfirmed pedagogical background, relevant contacts andavailability
intheirhome countries toensure dissemination ofknowledge. Themaintasksoftrainers aretodesign
training events, according tospecific needs oftarget audiences, andsubsequently tocontribute totraining
courses anddissemination seminars intheirhome countries.
Participants willberequired tocarry outpre-seminar assignments, including preparing
programmes andpresentations onhowthetraining willeffectively beconducted in-country, discuss
constraints indomestic policy-making andissues relating totheURAs ofinterest tothatcountry.
Common objectives willneedtobeestablished fordelivery oftheinformation in-country, andtime
willbereserved during thetraining course toprepare programmes foreachofthecountries upontheir
return. Following completion oftheProject, thetrainers willbeabletoorganize training activities
jointly andtodivide tasks fortraining tobedelivered intheirhome countries.
Theseminars willbeheldoverthreeweeks, withprogrammes ofoneweekineachorganization.
Acomprehensive programme willbeprepared, including amodule withpedagogical material, i.e.
toteach theparticipants onhowtotrainothers. Documentation andtraining material arecurrently
under preparation. Participants inthetraining course willassist indetermining thepremises fortraining
(ministries, training institutes). Trainers willberequired toorganize several training events peryear.
Refresher training courses andafeed-back system (quality control) willbeforeseen.
During thecourse oftheProject, thetrainers should beavailable, asresource persons, tomake
contributions totheworkshops andactivities sponsored byITC, UNCTAD andWTO. They would
alsoconducttheirowntrainingprogrammessuchasthoseprovidedbytheUgandaManagementInstitute,
orthecourse oninternational trade atMakerere University (Faculty ofLaw, Faculty ofCommerce).
Anappropriate framework forthefuture availability ofthese trainers willneedtobeagreed upon.
(b) Specialized trainers inselected issues important forUganda
Anumber ofspecialized trainees willbeselected fromamong public sector officials andprivate
sector executives whowillusetheAgreements fortheirregular business andtasks. These professional
trainers willreceive specialized teaching, based ontheirexisting proficiency inselected subsectors,
relevant totheimplementation ofspecific agreements inUganda. Training willbeprovided intheWT/COMTD/IF/10
Page35
framework ofsubregional programmes, tobestaged inthecountries covered bytheIntegrated
Programme intheEastAfrica Region. Thisformula, beside theeconomies ofscale thatcould be
achieved,shouldfavourexchangeofexperiencesamongprofessionalsofneighbouringcountries,namely,
intheframework oftheEAC organization.
Thespecialized training willbestaged, asneeded, bytheexecuting organizations, through
theirregular workshop programmes orinspecific subregional training events, insectors relevant to
Ugandan interests andpriorities, suchas:
- WTO rules;
- market access;
- agriculture;
- textiles;
- services;
- TBT, SPS, quality control andcertification;
- customs valuation andPSI;
- intellectual property andtrade marks.
(c) Providing academic andtraining institutions withteaching material
Training material willbeprovided byWTO, ITCandUNCTAD, fromexisting publications
andfrom training material, suchasTrainfortrade, theBusiness Guide totheUruguay Round, ITC
Trade Secrets Guide, andrelated training material being developed byITC,UNCTAD andWTO. Four
completepackages(includingtrainers’manualsandexercisebooks,transparencies,etc.)willbedelivered
to:
- TheFaculty ofLawatMakerere University;
- TheFaculty ofCommerce atMakerere University;
- TheUganda Management Institute;
- TheManagement Training andAdvisory Centre;
- TheNational College ofBusiness Studies.
5. Output1.5Strengthenednegotiatingcapacitytohandlethebuilt-inagendainthevariousUruguay
Round Agreements
Onthebasis ofaclear identification ofissues andsectors ofinterest inthebuilt-in agenda,
theProject willhelptoprepare thecountry forparticipation ininternational negotiations, including:
(a) Workshop forpolicy anddecision makers
Ahigh-level workshop willbetargeted tomembers ofthePresidential Economic Committee,
members oftheThink-Tank Foundation, parliamentarians andthechief executives ofprivate sectorWT/COMTD/IF/10
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institutions. Only major issues oftheMTS willbereviewed withsome examples andcases relevant
totheUgandan economy.
(b) Setting negotiating objectives andpreparing proposals
Onthebasisoftherecommendations stemming fromtheabove-mentioned Workshop, issues
andsectors ofinterest toUganda intheURAs willbeidentified, andthecountry representatives in
international forawillbebetter prepared foramore effective participation innegotiations, related to
structural reforms andtothemultilateral trading system. Usewillbemade oftheUNCTAD CAPAS
programme inrespect ofpreparations fornegotiations ontradeinservices, aswellasofother relevant
material.
6. Output 1.6Knowledge andunderstanding ofUruguay Round Agreements enhanced, bypublic
sector officials, private sector institutions, foreign trade enterprises, andthegeneral public
Inaddition tothehigh-level Workshop, described under Output 1.5,asecond series ofthree-day
general seminars forusers oftheMTS willbeorganized during thelifetime oftheproject. Other
specialized workshops willbelocally initiated bytraining orprivate sector institutions ofUganda, as
deemed necessary. Inaddition tolocalresource persons, theinputs from ITC, UNCTAD andWTO
willbelimited toselected elements thatarenotavailable inthecountry. They would bedetermined
onacasebycasebasis. Ifapplicable, WTO would beabletosendlecturers toattend thespecialized
workshops, bearing allexpenses incurred bytwoprofessionals oftheWTO staff. Thelocalinstitutions
initiating theevents willbeartheorganization costs andprobably arrange attendance onafeebasis.
(a) Organization oftwogeneral seminars
Twoworkshopswillbetargetedtobusinessexecutives,privatesectorinstitutions,publicofficials
andtechnocrats, media professionals andjournalists. They willbemore detailed andmainly cover
matters ofgeneral andshared interest. Through theircoverage oftheworkshop, media representatives
willbebetter abletoinform thegeneral public about theimplications andadvantages ofUganda ’s
participation inthemultilateral trading system. Inthisframework, press briefings could bemade.
(b) Technical andspecialized workshops
Specialized workshops willbeorganized ontheinitiative oflocalspecialized institutions (UBS,
Uganda Revenue Authority, Customs administration, Uganda LawReform Commission, Uganda
Manufacturers’Association,UgandaExportPromotionBoard,UgandaChamberofCommerce,Industries
andAgriculture, etc.). These technical workshops would bestaged according totheinterest ofthe
targeted public. Their subjects could beselected from thefollowing:
- Customs valuation, rules oforigin;
- TBT, SPSandquality management, preshipment inspection andquality certification;
- agriculture;
- textiles;
- services;
- anti-dumping andsafeguards;
- tariffs, market development, product andmarket diversification;WT/COMTD/IF/10
Page37
- intellectual property, trade marks andproduct development forexport;
- regional integration.
Inaddition tothethree executing organizations ofthisProject, other interested institutions
could becalled upon, asnecessary (World Customs Organization, Common Fund forCommodities,
UNIDO, WIPO, ISO,etc.). Thenational trainers trained under Output 1.4aretobeclosely associated
withthese activities.
D. Project Outputs andActivities Related totheSecond Objective Conforming toandSeeking
Maximum Advantage from theMultilateral Trading System
Fortheattainment ofthisimportant objective, theProject would provide different types of
technical inputs tobeimplemented byUNCTAD, incollaboration withITCandWTO. These activities
willhelptheGovernment ofUganda andthebusiness community indefining concrete policy measures
andstrategies thatarenecessary todraw maximum advantage from thenewbusiness opportunities.
1. Output 2.1Awareness oftrade policy issues improved, inrelation tothevarious adjustments
totheUruguay Round Agreements
Asalready stated, theProject focuses, interaliathrough training, onbuilding anational capacity
fortheknowledge andunderstanding ofUruguay Round Agreements andtherulesofthemultilateral
trading system. Thefollowing activities willreinforce other capacity building activities, namely in
strategyformulationforthepromotionofexportsandcreatinganinvestmentfriendlyclimate.UNCTAD,
incollaboration withITCandWTO, willassist national institutions toconduct theindicated activities.
(a) Assessment ofthepotential impact oftheUruguay Round Agreements ontheUganda
economy andexternal trade
Aprospective survey willbeundertaken ontheimpact ofthemultilateral trading system on
theUganda economy andexternal trade. Datarelated tomarket access conditions forselected products
andmarkets willbeanalysed using Comtrade andnational statistics. UNCTAD andITCwilljointly
carryoutthissurvey, using theITCmethodology toassess product/market potentials, andtheUNCTAD
approach toassess theimpact andtrading opportunities ofthenewmultilateral trading system, as
experimented intheSADC. Areview ofimport conditions inselected target markets willalsobecarried
out.
Thesurvey willbecarried outbyselected resource persons whowillhavebeentrained under
thecapacitybuildinglegoftheProject,anditshouldhelptheUgandanauthorities,managersandofficials
inassessing therealeffects ofthenewmultilateral trading system onthenational economy. Itwill
alsoenable theITC/UNCTAD/WTO seminars onURAs toacquire amorepractical andcountry-specific
orientation.
Furthermore, thesurvey willassess theimplications oftheURAs forsectoral policies inexport-
oriented sectors andidentify newtrade opportunities tobeexploited. Itshould highlight trade policy
issues related totheadaptation ofUganda legislation toselected agreements, critical tothedevelopment
efforts ofthecountry. Itwillreview thepresent tradepolicy framework, following theSWOT approach,
tohighlight thestrengths, weaknesses, opportunities ofandthreats totheability ofUgandan enterprises
tocompete. Thesurvey willalsooutline proposals fortheadoption ofliberal andcompetition-friendly
policies.WT/COMTD/IF/10
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(b) NationalSymposiumontradepolicymeasurestoimprovethebusinessclimateinUganda
Theresults ofthesurvey tobeundertaken under theprevious activity willbereviewed into
aNational Symposium, together withasummary ofthedatagathered through activities thusfar
accomplished under Objective 3,relating totheimprovement ofUganda 'sexport readiness. The
Symposium willreview theresults oftheaforementioned studies andformulate recommendations to
theGovernment andprivate sector, onhowbesttoadapt anddraw advantage from globalization. It
willbeattended byadministration officials, parliamentarians, academicians andeconomists, aswell
asbyprivate sector entrepreneurs. Itwillfocus, inaddition, onpolicy andinstitutional matters and
onthespecific sectors offering good potential forthedevelopment ofthecountry 'sexports.
TheSymposium willbeheldwiththefullparticipation ofthenational resource persons who
would havebeeninvolved inthesurvey, anditwillmake recommendations fortheimprovement of
thebusiness environment inUganda. TheSymposium recommendations willalsoconstitute thebasis
forthedesign ofanagenda forthefuture activities oftheInter-institutional Committee.
2. Output 2.2Contribution totheadjustment oflawsandregulations
Inordertobringthenationallegislationintolinewiththerulesofthemultilateraltradingsystem,
thefollowing activities willbecarried out,basically withtheassistance ofWTO andUNCTAD and,
ifneedbe,oftheITC.
(a) Assistance inthedrawing upofnotifications which thecountry mustmake inconnection
withitsparticipation intheWTO
Thisassistance could takevarious forms, inparticular theprovision ofaspecial handbook
prepared withaview tothedrawing upofthenotifications required under thevarious agreements;
andthesending ofaninformation mission tothevarious ministries involved inorder toprovide
explanations andtechnical information concerning therequired notifications.
(b) Provision oftechnical advice ontheimplementation oftheAgreements, based on
examples from countries withsimilar profiles
(c) Evaluation missions concerning anyproblem relating tothereview orintroduction of
national legislation aiming atconsistency withWTO rules
(d) Field missions designed toenable theauthorities tointroduce national legislation, inter
aliabyproposing model lawsthatcould beadapted tothespecific situation ofUganda
3. Output 2.3Business community made aware ofhowtomaximize tradeopportunities provided
byspecial anddifferential treatment, including transitional arrangements built-in totherelevant
Uruguay Round Agreements
Thisoutput willberelated toseminars andworkshops. Inthisrespect, thefollowing activities
willbecarried outmainly byUNCTAD, withspecific inputs byITC. Concrete measures willbe
recommendedtotheGovernment,toexpandtradingopportunitiesinselectedsectors:agriculture,textiles,
etc.
(a) Identification ofconcrete policy support measures andbusiness strategies, necessary
toachieve maximum exploitation ofthespecial anddifferentiated treatment provisions
forLDCs.WT/COMTD/IF/10
Page39
(b) Indication ofways andmeans toimprove access toappropriate technology, through
technology policy, compatible withtheTRIPS Agreement.
(c) Study oftheimpact ofthetariff structure onthecompetitiveness ofexports andfor
possible harmonization attheEAC level.
4. Output 2.4Recommendations formulated fortheimprovement ofthebusiness environment
Onthebasis ofthestudies thatwillbecarried outunder Output 1.5,andactivity 2.1(a),
interventions byUNCTAD under thisobjective, willenable theGovernment ofUganda tointegrate
tradepolicy-making anditsimplementation intothemacroeconomic policy framework andsubregional
trade policy objectives (COMESA, SADC andEAC) consistent withitsbroader commitments inthe
WTO.
Interventions under theleadership ofUNCTAD willcontribute tostabilize thebusiness
environment andmake itmore transparent andsecure forforeign direct investors.
(a) Harmonization ofinvestment codes andpromotional strategies.
UNCTAD willprovide advice totheGovernment ofUganda onhowbesttoharmonize its
Investment Code withother current investment incentives inthesubregion, andtodraw lessons from
thebestpractices ofnations withgood foreign investment inflows.
E. Project Outputs andActivities Related totheThird Objective Enhancing Uganda ’sExport
Readiness
1. Output3.1Exportdevelopmentpotentialsidentified,basedonUganda’scomparativeadvantages
TheProject willassist Uganda inbetter exploiting itscomparative advantages inthesubregion
andintheglobal market. Itwillinteract withandcomplement activities undertaken intheframework
ofother technical assistance projects, tohelpenterprises indesigning andimplementing sectoral and
enterprise strategies totakebetter advantage ofmarket niches andopportunities. Within thescope of
thisthirdobjective, theproject willsupport abetter access byUgandan exporters toselected systems
andtoolsofcompetitiveness thatcould improve performance oninternational markets, suchastrade
information andquality management systems.
(a) Establishment ofthematrix ofexportable goods andmarkets ofinterest toUganda
Inthecontext ofmarket globalization, Uganda 'sfuture trade prospects willbeanalysed on
thebasisofthefirstfindings ofthestudy mentioned under Activity D.1(a). (Assessment ofthepotential
impact oftheUruguay Round Agreements ontheUganda economy andexternal trade). Thismatrix
willbeprepared byateamcoordinated bythePSF,incooperation withtheUEPB andUMA. Acertain
amount ofdeskandfieldresearch results arealready available inthese organizations, thatwillbe
capitalized on.Ofparticular interest, isthework undertaken bytheprivate sector development project,
supported byUNDP, onthepotentials oftheUgandan economy. Using these dataandthefindings
oftheproducts-markets matrix, athorough analysis ofcurrent andfuture production capacities will
beundertaken toshow thepotential forexport-oriented activities andevaluate actual supply capacities
byproduct group, overthemedium-term. Abroad cost-benefit analysis forUgandan goods willbe
made available totheproduct-market development consultants tobeassigned tothistask.WT/COMTD/IF/10
Page40
(b) Elaboration ofthematrix ofexportable services andmarkets ofinterest toUganda
Thesame typeofwork asunder theprevious activity willbecarried outtoassess thepotential
forexport ofservices, mainly tourism. Based onenterprise interest andthecountry ’sobvious potential
inthetourism industry, thissecond matrix ofexportable services should beestablished, showing the
services-markets tobeaddressed, withrelevant market dataandqualitative indications onthesubsectors.
Thematrix willbethebaseforanoverall assessment ofthecountry ’spotential intheservices industry
thatshould bematched withtarget markets. Information thatwillbethusmade available, willhelp
intheconduct ofmarket surveys anddesign ofanational development strategy fortheservice sector
aswellassectoral strategies forthesame.
Thisworkwillbeundertakenbyateamoftechniciansfromrelevantministriesandorganizations,
including thePSF. Itwillbesupervised bytheMinistry ofTrade andIndustry inassociation withthe
Ministries ofTourism andTransport.
2. Output 3.2Ugandan exporters better acquainted withnewmarket potentials forUgandan goods
andservices
Using theelements oftheproducts-markets matrix prepared under activity (a),exporters will
beselected toconduct market orientation tours, withtheaimtoprepare sectoral andcompany specific
export strategies forthepriority products. Export enterprises, tobeassociated onacost-sharing basis,
willassess theconditions ofinternational competition intarget markets fortheirproducts andmatch
them withtheirpotential ofcompetitiveness.
During thesame market orientation tours, market surveys willbecarried outbytheexport
enterprises, onthebasis oftechnical documents tobeprovided through theinformation system, that
willbesetupintheframework ofthisProject. More extensive analysis could beundertaken inthe
fieldasdeemed necessary.
Professional institutions willbeassociated toassess theexport potential andcontribute, with
theexport enterprises, tothedesign ofnational andsectoral strategies. Themarket orientation tours
should cover traditional andnon-traditional products, including: coffee, teaandcocoa, tobacco, oilseeds
(sesame, soyabeans, groundnuts, etc.), fresh fishandprepared maize, cereals andbeans, soapand
detergents, spices (pepper, vanilla, chillies, cardamom), fruits andvegetables, flowers, roses and
carnations, textiles, etc.Themarket orientation tourswilltarget subregional andinternational markets,
according totheproduct-market matrix (forgoods andservices), established under Activities E.1(a)
and(b)above.
(a) Market orientation tourforcoffee, teaandcocoa;
(b) market orientation tourforoilseeds;
(c) market orientation tourforfoodpreparations andfish;
(d) market orientation tourforspices;
(e) market orientation tourfortextiles;
(f) market orientation tourforthetourism industry.WT/COMTD/IF/10
Page41
3. Output 3.3Sectoral marketing strategies designed forselected priority products (goods and
services)
Thetechnical staffofprofessional associations tobeinvolved inthestrategy design exercise
willattend aworkshop tobetrained onthemethodologies ofinformation gathering, screening and
usage. Twoworkshops willbeheldduring theProject implementation, totrainandform twoteams
thatwillaccomplish thestrategy formulation, using ITCdidactic material being prepared under an
ongoing programme onglobal competitiveness.
When achieved, Output 3.3,willalsobedirectly supportive ofactivities planned under
objective 2,aiming toseekmaximum advantage fromthemultilateral trading system forUganda. In
particular, theformulation ofsectoral strategies willbenefit fromtheideas developed inthestudy on
theimpact oftheURAs onthecountry 'sexternal trade(Activity D.1(a), p.21)andduring thenational
symposium ontrade policy measures (Activity D.1(b)), while themeasures toimprove thebusiness
environment inUganda willsurely befurther refined when sectoral strategies aresetout.
(a) Training workshops onexport strategy design
Onthebasisofdatacollected intheframework oftheexport potentials andmarket orientation
tours, sectoral andcompany strategies should beformulated. Eachparticipating company willbeadvised
andassisted todesign andimplement company-specific export strategies andmarketing plans. Before
that,sectoral strategies willbedesigned forthemain export subsectors andproduct groups. These
sectoral export strategies willbeestablished byselected professionals mandated bysectoral associations,
withadirect participation oftheexporters andanappropriate technical support from ITCproduct
specialists inthese sectors. UMA, PSFandPSDP willbeclosely associated totheformulation ofthe
sectoral strategies, using deskandfieldresearch thusfarconducted bythem.
Theavailabilityofwell-designedsectoralstrategies,thattakeintoaccountcomparativeadvantages
andactual market potential, willgivemore substance totherecommendations tobeformulated under
activity D.3(a). (Identification ofconcrete policy support measures andbusiness strategies, necessary
toachieve maximum exploitation ofthespecial anddifferentiated treatment provisions forLDCs.
Based ontheassessment oftheexport potential foreachsector, identified byPSDP andUMA,
highlighting business development perspectives, thesectoral strategies should beproposed tothe
Government andtoUgandan exporters through theirprofessional associations, toadopt concrete sectoral
measures. These strategies willalsobemade available totheauthorities incharge ofdeveloping
investments inUganda, toorient theirargumentation inattracting investments tothecountry. Inthis
respect, theIDEA project willalsobeassociated withthisstrategic work, together withtheUganda
Investment Authority andPSF.
(b) DesignofasectoralmarketingstrategyforthedevelopmentofUgandaexportsofcoffee,
teaandcocoa
(c) Design ofasectoral marketing strategy forthedevelopment ofUganda exports of
oilseeds
(d) Design ofasectoral marketing strategy forthedevelopment ofUganda exports offood
preparations andfish
(e) Design ofasectoral marketing strategy forthedevelopment ofUganda exports ofspices
(f) DesignofasectoralmarketingstrategyforthedevelopmentofUgandaexportsoftextiles
(g) Design ofasectoral marketing strategy forthedevelopment oftourism inUgandaWT/COMTD/IF/10
Page42
Aprovision ismade intheProject inputs todefine amarketing strategy forthetourism sector
inUganda. Thismarketing strategy would bedefined incoordination withtherelevant professional
associations, assisted byinternational advisers fromITCandother specialized institutions. Itwilltake
intoconsideration theongoing work, supported bytheWorld Bank, relating totheformulation ofa
national development strategy inthetourism sector. Bothworks complement eachother, inthesense
thatthenational development strategy willtackle investment andinfrastructural issues aswellas
macroeconomic measures, targeted totheGovernment, while theexport marketing strategy willbe
formulated bytourism professionals andoperators, todevelop tourism products, suchasholiday
packages, safari-cultural packages, discovering tours, etc.,andtodesign promotional campaigns for
them.
(h) Formulation ofanational strategy topromote subregional trade
Tocomplement thematrix ofexchangeable goods andmarkets ofinterest toUganda, theProject
willsupport theundertaking ofanoverall assessment ofUganda ’scomparative advantages initstrade
relations withKenya andTanzania intheframework oftheEAC, andalsowithother member countries
ofCOMESA. Thisexercise willleadtotheformulation ofastrategy proposal related tothedevelopment
ofsubregional trade relations.
Onthebasisoftheassessment,anationalstrategytopromotesubregionaltradewillbeformulated
byateam from theMinistry ofTrade andIndustry, UEPB, PSF, PSDP andtheUMA. Leading
enterprises involved insubregional trade should beconsulted. Thecostofdefining thestrategy will
besupported bytheProject.
4. Output 3.4.Design ofcompany-specific strategies andbusiness plans designed byexporters,
supported
Technical advice willbegranted toexporting companies, which participated inthemarket
orientationstoursandthedesignofsectoralstrategies,todefineforthemselvescompany-specificbusiness
strategies andexport objectives related tothemarkets ofinterest tothem.
(a) Provision ofadditional information tocompanies willing todefine business andexport
marketing plans
(b) Provision ofself-teaching material toexporters todesign business plans
The“Trade Secrets ”package willcontain technical material andmethodological guidance to
leadexporters intheformulation ofexport approaches andbusiness plans. Thepackage, which will
beadapted toUganda business conditions, willbemade available toexporters involved inthisexercise
inaddition totheadvice ofspecialized consultants.
(c) Technical advice provided toselected exporters intheformulation ofcompany-specific
strategies
5. Output 3.5Effective trade information system established
Trade information isoneofthebasictoolsofcompetition oninternational markets, thatshould
bereadily available toUganda exporters. Theavailability oftradeinformation, asamanagement tool,
iscurrently verylimited inUganda, where small andmedium-sized enterprises (SMEs) cannot access
fresh anduseful information toconduct theirbusiness anddraw advantage from opportunities inthe
globalandregionalmarkets.AneffectiveUgandaTradeInformationSystem(UTIS)shouldbeestablished
among alllocalinformation producers, intermediaries, distributors andusers. TheProject willhelp
inmaking UTIS operational, withtheaimofcollecting anddisseminating datathatwould beusefulWT/COMTD/IF/10
Page43
toUganda enterprises forinvestment andexport operations. Anetwork willbeestablished among its
different components, tobedefined inafeasibility study.
Thesystem would comprise information onmarketing opportunities, elements onphysical
distribution, including transit, transport andpackaging, quality requirements inthetarget countries,
training opportunities andmarket research, etc.When established, thesystem willbepartoftheUganda
Trade Point andshould fulfilthefunction ofinformation collection anddissemination inacoordinated
manner.
TheProject willassist Ugandan enterprises andinstitutions inoperating theUTIS, through
provision ofdocumentation, training ofpersonnel andnetworking totheappropriate databases and
sources ofinformation worldwide. Thefinancial andinfrastructural conditions forthisnetworking will
vary, according totheneeds andcosts. Generally, theProject willensure theavailability ofcurrent
technical documentation, prepared bythethree partner organizations totheProject, andsupport the
costofcertain subscriptions toonline databases anddocumentation, tobespecified inthefeasibility
study.
Theaccess toworldwide networks, including Internet, thatwillbeprovided bytheProject
fortheestablishment oftheReference Centres willalsobeusedtooperate connections ofUTIS with
other regional andworldwide networks andsystems. TheReference Centres willbepartofthe
information system, totheextent thattheyprovide aspecified typeofinformation, namely, about the
multilateral trading system.
Anon-profit association willbeformed from themembers ofUTIS, tomanage thesystem.
Thisassociation willpartially benefit from theproceeds ofthemarketing ofinformation tousers. It
willtakeoverthesubscriptions andrecurrent charges ofUTIS afterthetechnical assistance hascome
toanend. Aspecific fundmight alsobeconstituted tosupport thisendeavour.
UTIS willbepartoftheUganda Trade Point planned bytheUganda authorities, withUNCTAD
support. Itsrealization willachieve thetradeinformation legoftheTrade Point. Thetradefacilitation
component willbeachieved attheendofthecurrent project, inaseparate provision.
Thefollowing activities willbeundertaken toreach theindicated goals:
(a) FeasibilitystudyfortheestablishmentofaneffectivetradeinformationsysteminUganda
Astudy oftheUganda market fortrade andeconomic information willbeundertaken to
determine thevolume ofdemand forinformation andthepossible configuration ofatradeinformation
system. Allproducers, distributors andusers ofmarket information willbesurveyed andtheircurrent
infrastructures andneeds assessed. Onthebasis ofthisassessment ofneeds, afeasibility study will
determine theconfiguration oftheUganda Trade Information System, tobeorganized andconsolidated.
Thissystem should besetupinUganda, allowing information consumers tohaveaccess to
therequested information wherever itwould beavailable, through various nodes. Thesystem would
function onacommercial basis. Itmight bedifficult tomake thissystem self-financing, buteconomies
ofscale could bereached when information facilities currently operating orplanned bythevarious
information distributors, suchastheUEPB, theChamber ofCommerce, PSF,UMA, andthespecialized
boards andassociations, willbenetworked, asalready described.
TheUTIS would belinked withITCsupported subregional trade information systems being
operated intheCOMESA, suchasTINET, andother similar facilities intheEAC.WT/COMTD/IF/10
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(b) Workshop ontrade information
Thefeasibility study willbeproposed tothefuture partners during aworkshop inwhich
participants willdiscuss production anddistribution ofinformation andadopt anagreement onthe
exchange ofinformation among themselves.
Thefollowing institutions willparticipate inthisWorkshop, under theauspices ofthePrivate
Sector Foundation:
- Ministry ofTrade andIndustry;
- Chamber ofCommerce andIndustry;
- Export Promotion Board;
- Uganda Manufacturers ’Association;
- Uganda Women ’sEntrepreneurs Association;
- Bureau ofStandards;
- Coffee Development Authority;
- Coffee Trade Federation;
- SilkExporters Association;
- andother professional organizations.
These institutions willbetheinitial members oftheUganda Trade Information System.
(c) Formation ofanon-profit association tomanage theUganda Trade Information System
FortheestablishmentandfulloperationoftheTradeInformationSystem,anon-profitassociation
willbeformed bythedifferent participants inthesystem, tomanage thesystem andmaintain its
coherence. Theassociation willbefinanced byitsmembers without anyfinancial inputs fromtheProject
budget, except fortechnical advice onitsorganization andmethods. TheProject willcontribute to
thisactivity bythedrafting ofthecharter andrules ofoperation oftheassociation.
(d) Provision ofadditional equipment toenable connectivity andmultimedia operation,
where necessary
(e) Establishing connections between participating members ofUTIS
(f) Subscription toselected databases
(g) Connection toGTPNet
(h) Training trade information managers
(i) Provision ofselected documentation, written andelectronic
(j) Creation ofa"Uganda Business" Web-siteWT/COMTD/IF/10
Page45
(k) Organization anddesign ofa"Uganda Business" home page
(l) Advisory services totheUTIS member organizations
TheProject willhelpinthesetting upoftheUganda Trade Information System, through training
activities andspecific support tothevarious nodes. Thisassistance willtakeintoconsideration the
existing infrastructure andprovide equipment andwritten ormultimedia documentation (CD-ROMs),
aswellasaccess toInternet andrelevant international databases. Thisspecific assistance willaddress,
inparticular,thetradeinformationfacilitiesinthefollowingorganizations,whichwillbethecornerstones
oftheSystem:
- Uganda Export Promotion Board;
- Chamber ofCommerce;
- Uganda Manufacturers 'Association;
- Private Sector Foundation.
Adequate resources interms ofinfrastructure, human andfinancial resources, willhaveto
beallocated bytheparticipating organizations, buttheProject willbeavailable toassist those
organizations totaketheappropriate decisions. Project inputs willtaketheformofadvisory missions,
byspecialized consultants onaroving basis, adequate computer equipment andaccess toonline databases
atITC,UNCTADandWTOheadquartersorelsewhere,accordingtopriorityneedsexpressedbyUganda
enterprises andidentified inthefeasibility study.
Technical assistance should remain available foranextended period oftime(twotothreeyears
aftertheestablishment ofthesystem), toassist themember organizations intaking theappropriate
decisions, andintroubleshooting inrelation tothesystem 'soperation, toavoid thecollapse ofthewhole
setting because ofanyeventual mismanagement. Theinputs inthisrespect willbeintheformofadvisory
missions byspecialized consultants onaroving basis.
(m) Establishing coordination links withcounterpart information systems
Inaddition toinformation flows tobesecured through theparticipation ofUTIS intheGTP
Net,formal tieswillbeinstitutionalized atEAC level, toexchange information among foreign trade
enterprises andpublic sector entities, through theconnection ofUTIS tosimilar facilities inTanzania,
Kenya andother COMESA countries. Thiswillnotonlyfacilitate communication ofdataontrading
opportunities inthesubregion, butitwillalsoallow exchange ofideas andexperiences among private
sector institutions andbusiness people. Foranappropriate interaction withtheCOMESA TINET, where
information ontrading opportunities andother market datacould beexchanged, activities willbefully
coordinated withthose activities oftheITC-implemented regional project infavour ofCOMESA.
6. Output 3.6Trade efficiency enhanced, through thesetting upofafull-fledged Trade Point
ATrade Point isaunique combination ofpractical tools available tolocal enterprises and
government agencies tolower thecostoftheirimport andexport transactions. Itcombines three main
functions: tradefacilitation, tradeinformation andglobal networking. Thefacility offers toSMEs access
tobusiness opportunities worldwide, ways tocollect andtransmit information, theuseofadvanced
communication techniques, market research, andfacilitation ofcustoms andfinancing procedures,
banking, transport, andinsurance services.WT/COMTD/IF/10
Page46
Theestablishment oftheUganda Trade Point (UTP) willbeoperated progressively. UTIS with
thethreeReference Centres established under Output 1.3willconstitute thefirstphase ofimplementation
ofUTP. ThisUganda Trade Point (UTP) willbeestablished intheframework oftheUNCTAD/ITC
executed programme initiated in1991, which isaimed atestablishing theGlobal Trade Point Network
(GTP Net).
Theapproach proposed herewillhelpinsetting uptheUTPprogressively. Itisbelieved that
theoperation ofUTIS willgivetheopportunity tothevarious stakeholders ofprivate sector development
inUganda toappreciate theusefulness ofcoordination andeasyaccess totrade support services, thus
justifying theusefulness ofaTrade Point site.Bythattime, andaftermore reforms havetaken place
inthefieldoftradefacilitation andinvestment promotion, theProject willundertake afeasibility study
todefine thecontours oftheUganda Trade Point andtoestablish itataselected location, wellaccessible
toprivate sector enterprises, including thepossibility ofestablishing provincial antennas.
(a) Feasibility study ofafull-fledged Uganda Trade Point
Thestudy should envisage establishing provincial Trade Points, inselected sites.
(b) Formation ofaTrade Efficiency Association
There willbeapossibility toupgrade theUTIS managing non-profit association intoaTrade
Efficiency Association, although keeping themseparate would bepreferable. Thefeasibility study will
determine thebestoptions.
(c) Establishing thetrade facilitation component ofaUganda Trade Point inKampala
7. Output 3.7Guide to"Trade Secrets -theExport Answer Book "adapted totheUgandan context
ITChasdeveloped thegeneric version ofaGuide entitled “Trade Secrets -TheExport Answer
Book”,together withguidelines foritsadaptation tothenational context indeveloping countries. The
Guide, customized tolocalsituations, willbeabusiness improvement toolandreference source for
export management bySMEs andbusiness support organizations. Itwillcontain acomplete package
ofreadily accessible information, thatmanagers would finduseful forday-to-day operation oftheir
export businesses. Onehundred frequently asked questions (FAQ) areanswered inclear, concise and
user-friendly terms. Theanswers aresupplemented byappropriate references toadditional information
resources. Technical assistance willsecure thecustomization ofthegeneric version of“Trade Secrets -
TheExport Answer Book”,through theproduction ofacountry-specific Guide forUganda. Thiswill
bedone inpartnership withinterested local orsubregional counterparts, whowillco-sponsor the
production oftheadapted version.
(a) Advice onthepreparation oftheGuide toTrade Secrets
AnITCconsultant willundertake amission totrainalocalteamofthecounterpart organizations
andthose responsible fortheadaptation process, onhowtoprepare thedraftofthecustomized version
oftheGuide.
(b) Realization oftheGuide toTrade Secrets inUganda
Thecustomization willbecarried out,under ITC’stechnical guidance, byanational/subregional
subcontractor.Thecounterpartorganizationwillbedirectlyinvolvedintheimplementationoftheprocess,
inaccordance witha“jointpublication arrangement ”withITC, andwillbenefit from theproceeds
ofsales. Thesubcontractor willelaborate thedraftforeachcountry covered, onthebasisoftheprocessWT/COMTD/IF/10
Page47
manual. ITCwillperform aquality check before publication. TheGuide willbeprinted using local
orsubregional facilities.
(c) Distribution oftheGuide toTrade Secrets
TheGuide willbedistributed onacommercial basis, inaccordance withthe“jointpublication
arrangement ”bythecounterpart organization, which could beoneofthefollowing: UEPB, PSF,
UMA, oraconsortium ofthem. Theproceeds ofsaleswillberetained bythecounterpart organization
orconsortium, torecover theirexpenses andtofinance thepreparation ofsubsequent updated versions.
8. Output 3.8Capacity oftheUganda Bureau ofStandards, strengthened inquality management
Quality willbecome themainplatform ofcompetition inthefuture, withsophisticated notions
suchaseco-labelling, organic products, environment-friendly technologies andprocesses, being more
andmorediscussedandtakenintoconsideration.TheProjectwillhelpUgandaenterprisesandauthorities
toimprove theircapacity tounderstand andimplement these concepts.
(a) Advisory missions inquality control issues
Apart from thespecific training tobeprovided totheUganda Bureau ofStandards (UBS) in
matters ofquality control andtosanitary andphytosanitary (SPS) inspection bodies attheMinistry
ofAgriculture Livestock andMarketing concerned withSPSissues, aconsultant mission willadvise
theCustoms Department andtheBank ofUganda onhowtoimprove quality inspection atentry points
andonthemanagement ofphytosanitary inspection (PSI).
(b) Operating theenquiry pointontechnical barriers totradeandsanitary andphytosanitary
measures
UBSwillalsobeassisted intheestablishment andoperation oftheUganda enquiry points on
technical barriers totrade (TBT) andsanitary andphytosanitary measures (SPS). Anational capacity
tomonitor other enquiry points inselected markets should bebuilt, toallow Uganda ’sexporters to
defend theirinterests, when necessary, inrelation totechnical barriers toexpanding trade abroad.
(c) Database oninternational quality requirement intarget markets forUganda products
ITC’sQualidata database willbepartly copied totheUBSandtraining provided tohelpits
useforthebenefit ofUgandan enterprises. Progressively UBSshould build upaninformation base
torespond toUganda exporters ’enquiries onthetechnical andlegalspecifications required intheir
different target markets.
(d) Database onquality requirements andregulations inUganda
Presently, thereisnocomputer database onUgandan standards andquality requirements. Such
adatabase isnecessary tobeaccessible intheframework ofUTIS andhastobeavailable forthefull
implementation oftheEnquiry point onTBTs. Theproject willsupport thesubcontracting ofthe
realization ofsuchadatabase ifUBScommits itself toitsregular updating. AnITCconsultant will
advise onitssetting andmanagement.
(e) National Seminar onquality management forexport
Anational seminar onquality management andpractices inexport enterprises willbeheldin
Kampala, inconjunction withUBSandUMA.WT/COMTD/IF/10
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(f) Local seminars onquality management andcontrol forexport
Aseries oflocal seminars willbeheldatproduction sitesinthecountryside tosensitize
smallholders andtraders tointernational standards andquality requirements ininternational markets.
They willaddress products relevant toUganda, suchascoffee, tea,tobacco, hides andskins, silk,
fruits andvegetables.
These seminars willbeheldunder thesupervision ofUBSwiththeparticipation ofUEPB and
theprofessional associations intheirrespective subsectors.
V. INPUTS, AND MANAGEMENT
A. Project Strategy
1. Priorities
TheProject takes intoaccount thefollowing priorities:
Itwillfirstfocus oncapacity building atnational levelfortheunderstanding oftherules of
themultilateral trading system andthemanagement ofUganda ’smembership oftheWTO. Thispriority
ismanifested through:
- Thetraining ofanimportant number oftrainers inMTS matters (four generalists and
nineinspecialized matters) whowillbetrained tointerpret andexplain MTS rules
andregulations.
- Theintroduction toathorough information ontherulesofinternational trade, andthe
opportunities created through improved market access. Thiswillbeachieved through
thesetting upofReference Centres anddirect institutional support toprivate sector
institutions andenterprises, aswellasthrough dissemination seminars andworkshops.
- Theprovision ofassistance inpolicy andexport strategy formulation andinconforming
locallawsandregulations toUganda ’sundertakings asaWTO Member.
TheProject willfacilitate access ofexport enterprises toaminimum number ofcompetitiveness
tools, suchas:
- Theknowledge oftheirpotentials, strengths andweaknesses;
- anefficient trade information system thatprovides readily available information as
aninput togood management;
- aquality management proficiency, through training ofresource persons incharge of
quality control andstandardization.
TheProject willimmediately achieve concrete actions needed byenterprises andpublic and
private sector institutions. Thiswillbemanifested in:
- Theidentification ofproduct linesbearing export potential inthelongrun;
- thedefinition ofsectoral development strategies;
- on-the-job training inenterprises andinstitutions.WT/COMTD/IF/10
Page49
Allactivities ofthisProject willbeintegrated intheongoing technical assistance endeavours,
taking theconcerns ofprivate sector andUgandan authorities intheheart oftheProject 'sfocus. It
willinteract, benefit andcomplete other initiatives being implemented andhelptoimprove their
efficiency.
2. Management
(a) Monitoring oftheProject activities, byITC, UNCTAD andWTO
Fortheeightcountries covered bytheIntegrated Programme, WTO, UNCTAD andITCwill
havetworesident experts, onaregional basis, tomanage projects intwogroups ofcountries. These
twoexperts willbeposted, respectively, in:
- West Africa (forBenin, Burkina Faso, Côted'Ivoire, andGhana); and
- EastAfrica (forKenya, Tanzania andUganda).
Inaddition, junior assistants could beposted atITCandUNCTAD, andwillhelptomanage
theimplementation oftheIntegrated Programme.
Specifically, WTO, UNCTAD andITCwilldesignate aregional coordinator ineachsubregion
whowillmonitorandcoordinatetherespectiveinputsoftheGeneva-basedorganizations,incoordination
withthelocalUNDP fieldoffice. Theregional coordinator willbeamember oftheSteering Committee
mentioned hereafter. Subcontracts fornational facilitators reporting totheregional coordinator will
beeffected. Resources areincluded intheProject budget (under ITCcomponent BL11.01) topartly
support thecostoftheregional coordinator andother coordination expenses, which areshared byother
projects andprogrammes, under theregional coordinator 'sauthority andresponsibility.
Atheadquarters, thethreeorganizations willusetheirregular coordination meetings toensure
cohesion, complementarity andsynergy oftheir respective technical activities, asforeseen inthe
Integrated Programme document.
InUganda, theProject activities willbecoordinated byaSteering Committee, which willbe
formed byconcerned institutions, assoonastheProject isadopted andsigned. TheSteering Committee
willbeplaced under theauthority ofthe/aSenior Official attheMinistry ofTrade andIndustry, who
willcoordinate allWTO related activities. TheSteering Committee willbecomposed of:
- Onbehalf oftheGovernment ofUganda, representatives of:
- theMinistry ofTrade andIndustry;
- theUganda Export Promotion Board.
- Onbehalf oftheprivate sector, representatives of:
- theUganda Chamber ofCommerce andIndustry;
- thePrivate Sector Foundation.
- Onbehalf oftheexecuting organizations: WTO, ITCandUNCTAD, theregional
coordinator, incharge oftheimplementation oftheProject.WT/COMTD/IF/10
Page50
Asaninterfacebetweenthelocalcounterparts(governmentservicesandprivatesectorinstitutions,
enterprises) ontheonehand, andtheexecuting organizations (ITC/UNCTAD/WTO andtheirregional
coordinator) ontheother hand, aprivate company willbehired tohandle alladministrative matters.
Detailed terms ofreference willbeelaborated todetermine thetasksofthelocalsubcontractor, inthe
framework ofthefollow-up andimplementation oftheproject.
- Onbehalf ofdonors anddevelopment partners, representatives of(...donor
countries ...),UNDP, theWorld Bank andother interested parties, asdeemed useful
forafullintegration ofcooperation activities.
(b) Technical implementation
Fortheday-to-day implementation ofactivities, thefollowing organizations willbearthe
responsibility forexecution, including thecoordination ofinputs andresources tobemade available
bythecounterparts.
Forobjectives 1and2(National capacity andadjustment ofbusiness regulations, lawsand
procedures): thefocalpoint, setupanddulyempowered, attheMinistry ofIndustry andTrade,
willcoordinate fieldactivities.
Forobjective number 3(Enhancing Uganda ’sexport readiness): theUganda Export Promotion
Board,togetherwiththePrivateSectorFoundation,andtheUgandaManufacturers’Association,
willcoordinate thepreparation andimplementation ofactivities, inconjunction withother
relevant professional organizations. Aliaison unitwillbeformed bytheabove-mentioned
organizations, toimplement andcoordinate theactivities under thisobjective.
More specifically, forthemanagement oftrade information, anon-profit association, willbe
formed, assetintheProject activities andoutputs, tomonitor thesystem andsetuptheadequate
management protocols andmethodologies, asindicated intheProject activities andoutputs.
Theprivate subcontractor willliaise between these organizations andtheregional adviser.
3. Activities directed toexport enterprises
Trainers from thePrivate sector willbeenrolled inthetraining activities onacost-sharing
basis. Enterprise participation intrade missions andmarket surveys willalsobehandled onasimilar
basis. Atalaterstage, trade information willbehandled onacostbasis, tobedefrayed bytheusers.
4. Coordination
Projectimplementationwillbecoordinatedwithactivitiesofongoingtechnicalassistanceprojects
beingcarriedoutbyITC,UNCTADandWTO,aswellasbyotherdonorsorinternationalorganizations,
inparticular, those mentioned under thesection pertaining totheongoing technical assistance. Details
aredescribed inthedocument. Adaptations andadjustments willbemade asneedarises.
B. Inputs byProject Partners
Resources needed fortheimplementation ofthisProject willbemade available bydonors.
TheGovernment ofUganda willcontribute inkindtothesupport oftheProject activities.
Enterprises willcontribute onacost-sharing basis, andwillshare expenses involving them inmarket
surveys andmissions abroad.
Anestimation ofinputs necessary fortheimplementation oftheProject isgiven hereafter:WT/COMTD/IF/10
Page51INPUTS BYPROJECT PARTNERS
Project elements WTO UNCTAD ITC GovernmentInstitutions
and
enterprises
Firstobjective: National capacity forunderstanding MTS anditsimplications forUganda
1.Output 1.1TheInter-institutional Committee tofollow-up theUruguay Round Agreements strengthened
(a) Supply basic documentation ontheWTO
AgreementsDocumentation Documentation
(b) Supply therelevant documents ofthe
various WTO committees andworking
groupsDocumentation
(c) Include theMinistry ofTrade and
Industry inWTO 'smailing listof
periodical publicationsDocumentation
(d) Provide technical advice onanyissue
faced bytheInter-Institutional
Committee onlegalandinstitutional
issues within theWTO ’ssphere of
competence, aswellasonitsongoing
activitiesOfficial missions Official missions Recurrent
charges
(e) Help drafttheterms ofreference ofthe
Inter-Institutional Committee anddesign
theappropriate strategies totake
advantage ofthetransitional periods
allowed bytheUruguay Round
AgreementsOfficial missions Recurrent
chargesWT/COMTD/IF/10
Page52
Project elements WTO UNCTAD ITC GovernmentInstitutions
and
enterprises
(f) Foster andsupport participation, to
subregional meetings, ofmembers ofthe
Inter-Institutional CommitteeDocumentation Recurrent
charges
2.Output 1.2Customs administration strengthened incustoms matters related totheUruguay Round Agreements
(a) Provide relevant information regarding
thework oftheWTO committees
dealing withcustoms mattersDocumentation
(b) Provide information tothecustoms
administration ontheimplementation of
theAgreementDocumentation
(c) Provide assistance tothecustoms
administration onalltechnical matters
relating tocustoms tariffsOfficial missions Official missions Recurrent
charges
(d) Provide information relating tothework
oftheCommittee onRegional trade
AgreementsDocumentation
Official missionsOfficial missions Recurrent
charges
(e) Provide assistance onanylegalmatters
relating toregional integration orfree-
trade areasOfficial missions Official missions Recurrent
charges
3.Output 1.3Reference Centres onthemultilateral trading system established
(a) Establishment ofaReference Centre on
MTS atthefocal point forWTO mattersDocumentation
EquipmentDocumentation Documentation Recurrent
charges
(b) Establishment ofaReference Centre for
usebythebusiness communityDocumentation Documentation Documentation Recurrent
chargesWT/COMTD/IF/10
Page53Project elements WTO UNCTAD ITC GovernmentInstitutions
and
enterprises
(c) Reference Centre onMTS established at
atraining institutionDocumentation Documentation Documentation Recurrent
charges
(d) Training ofthemanagers ofthe
Reference CentresInt.consultant
(0.25 w/m)Recurrent
chargesRecurrent
charges
4.Output 1.4National training capacity inMTS issues reinforced
(a) Training oftrainers ingeneral MTS
matters: theGeneva courseDocumentation
Group trainingDocumentation
Group trainingDocumentation
Group trainingRecurrent
charges
(b) Specialized trainers inselected issues
important forUgandaOfficial missions Group training
Official missionsIntern. consultant
(0.75 w/m)Recurrent
chargesRecurrent
charges
(c) Providing academic andtraining
institutions withteaching materialDocumentation Documentation Documentation
5.Output 1.5Strengthened negotiating capacity tohandle thebuilt-in agenda inthevarious Uruguay Round Agreements
(a) Workshop forpolicy anddecision
makersOfficial missions Official missions Nat.consultant
(0.25 w/m)Recurrent
charges
(b) Setting negotiating objectives and
preparing proposalsIntern.
consultantRecurrent
charges
6.Output 1.6Knowledge andunderstanding ofUruguay Round Agreements enhanced, bypublic sector officials, private sector institutions, foreign
trade enterprises, andthegeneral public
(a) Organization oftwogeneral seminars Official missions Official missions Nat.consultant
(0.5w/m)Recurrent
chargesRecurrent
chargesWT/COMTD/IF/10
Page54
Project elements WTO UNCTAD ITC GovernmentInstitutions
and
enterprises
(b) Technical andspecialized workshops Official missions Official missions Documentation
Official travel
Intern. consultant
(1.5w/m)
Nat.consultant
(1.5w/m)Recurrent
chargesRecurrent
charges
Second objective: Conforming toandseeking advantage from theMTS
1.Output 2.1Awareness oftrade policy issues improved, inrelation tothevarious adjustments totheUruguay Round Agreements
(a) Assessment ofthepotential impact ofthe
Uruguay Round Agreements onthe
Uganda economy andexternal tradeIntern.
consultant
Nat.consultantIntern. consultant
(0.75 w/m)
Nat.consultant
(0.75 w/m)Recurrent
charges
(b) National symposium ontrade policy
measures toimprove thebusiness climate
inUgandaOfficial missions Official missions National Symposium.
Int.consultant
(0.25 w/m)
Nat.consultant
(0.25 w/m)Recurrent
chargesRecurrent
charges
2.Output 2.2Contribution totheadjustment oflawsandregulations
(a) Assistance inthedrawing upof
notifications which thecountry must
make inconnection withitsparticipation
totheWTOOfficial missions Recurrent
charges
(b) Provision oftechnical advice onthe
implementation oftheAgreements, based
onexamples from countries withsimilar
profilesOfficial missions Intern.
consultant
(0.5w/m)Recurrent
chargesWT/COMTD/IF/10
Page55Project elements WTO UNCTAD ITC GovernmentInstitutions
and
enterprises
(c) Evaluation missions concerning any
problem relating tothereview or
introduction ofnational legislation
aiming atconsistency withWTO rulesOfficial missions Official missions Recurrent
charges
(d) Field missions designed toenable the
authorities tointroduce national
legislation, interaliabyproposing
model lawsthatcould beadapted tothe
specific situation ofUgandaOfficial missions Int.consultant
(1w/m)Recurrent
charges
3.Output 2.3Business community made aware ofhowtomaximize trade opportunities provided byspecial anddifferential treatment, including
transitional arrangements built-in totherelevant Uruguay Round Agreements
(a) Identification ofconcrete policy support
measures andbusiness strategies,
necessary toachieve maximum
exploitation ofthespecial and
differentiated treatment provisions for
LDCsIntern.
consultantNat.consultant
(0.5w/m)Recurrent
charges
(b) Indication ofways andmeans toimprove
access toappropriate technology,
through technology policy, compatible
withtheTRIPS AgreementIntern.
consultantRecurrent
charges
(c) Study oftheimpact ofthetariff structure
onthecompetitiveness ofexports andfor
possible harmonization attheEAC levelIntern.
consultantRecurrent
charges
4.Output 2.4Recommendations formulated fortheimprovement ofthebusiness environment
(a) Harmonization ofinvestment codes and
promotional strategiesIntern.
consultantWT/COMTD/IF/10
Page56
Project elements WTO UNCTAD ITC GovernmentInstitutions
and
enterprises
Third objective: Enhancing Uganda ’sexport readiness
1.Output 3.1Export development potentials identified, based onUganda ’scomparative advantages
(a) Matrix ofexportable goods andmarkets
ofinterest toUganda, establishedDocumentation Recurrent
charges
(b) Matrix ofexportable services and
markets ofinterest toUganda,
establishedDocumentation Recurrent
charges
2.Output 3.2Ugandan exporters better acquainted withnewmarket potentials forUgandan goods andservices
(a) Market orientation tourforcoffee, tea
andcocoaIntern. consultant
(0.5w/m)
Nat.consultant
(1w/m)Recurrent
chargesRecurrent
charges
(b) Market orientation tourforoilseeds Intern. consultant
(0.5w/m)
Nat.consultant
(1w/m)Recurrent
chargesRecurrent
charges
(c) Market orientation tourforfood
preparations andfishIntern. consultant
(0.5w/m)
Nat.consultant
(1w/m)Recurrent
chargesRecurrent
charges
(d) Market orientation tourforspices Intern. consultant
(0.5w/m)
Nat.consultant
(1w/m)Recurrent
chargesRecurrent
chargesWT/COMTD/IF/10
Page57Project elements WTO UNCTAD ITC GovernmentInstitutions
and
enterprises
(e) Market orientation tourfortextiles Intern. consultant
(0.5w/m)
Nat.consultant
(1w/m)Recurrent
chargesRecurrent
charges
(f) Market orientation tourforthetourism
industryIntern. consultant
(0.5w/m)
Nat.consultant
(1.0w/m)Recurrent
chargesRecurrent
charges
3.Output 3.3Sectoral marketing strategies designed forselected priority products (goods andservices)
(a) Training workshops onexport strategy
designGroup training
Int.consultant
(0.25 w/m)Recurrent
charges
(b) Design ofasectoral marketing strategy
forthedevelopment ofUganda exports
ofcoffee, teaandcocoaGroup training
Int.consultant
(0.5w/m)
Nat.consultant
(0.5w/m)Recurrent
charges
(c) Design ofasectoral marketing strategy
forthedevelopment ofUganda exports
ofoilseedsGroup training Intern.
consultant
(0.25 w/m)
Nat.consultant
(0.5w/m)Recurrent
chargesRecurrent
charges
(d) Design ofasectoral marketing strategy
forthedevelopment ofUganda exports
offoodpreparations andfishIntern. consultant
(0.5w/m)
Nat.consultant
(1.0w/m)Recurrent
chargesRecurrent
chargesWT/COMTD/IF/10
Page58
Project elements WTO UNCTAD ITC GovernmentInstitutions
and
enterprises
(e) Design ofasectoral marketing strategy
forthedevelopment ofUganda exports
ofspicesIntern. consultant
(0.25 w/m)
Nat.consultant
(0.75 w/m)Recurrent
chargesRecurrent
charges
(f) Design ofasectoral marketing strategy
forthedevelopment ofUganda exports
oftextilesIntern. consultant
(0.5w/m)
Nat.consultant
(1.0w/m)Recurrent
chargesRecurrent
charges
(g) Design ofasectoral marketing strategy
forthedevelopment oftourism products
inUgandaIntern. consultant
(0.75 w/m)
Nat.consultant
(1.0w/m)Recurrent
chargesRecurrent
charges
(h) Formulation ofanational strategy to
promote subregional tradeIntern. consultant
(0.75 w/m)
Nat.consultant
(1.0w/m)Recurrent
chargesRecurrent
charges
4.Output 3.4.Design ofcompany specific strategies andbusiness plans designed byexporters, supported
(a) Provision ofadditional information to
companies willing todefine business and
export marketing plansDocumentation Recurrent
chargesRecurrent
charges
(b) Provision ofself-teaching material to
exporters todesign business plansDocumentation
Nat.consultant
(0.5w/m)Recurrent
charges
(c) Technical advice provided toselected
exporters intheformulation ofcompany
specific strategiesIntern. consultant
(1.0w/m)Recurrent
chargesWT/COMTD/IF/10
Page59Project elements WTO UNCTAD ITC GovernmentInstitutions
and
enterprises
5.Output 3.5Effective Uganda Trade Information System established
(a) Feasibility study fortheestablishment of
aneffective Trade Information System in
UgandaIntern. consultant
(1.0w/m)
Nat.consultant
(0.5w/m)Recurrent
chargesRecurrent
charges
(b) Workshop ontrade information Memo item Recurrent
chargesRecurrent
charges
(c) Formation ofanon-profit association to
manage theUganda Trade Information
SystemInt.consultant
(0.25 w/m)Recurrent
chargesRecurrent
charges
(d) Provision ofadditional equipment to
enable connectivity andmultimedia
operation, where necessaryDocumentation Documentation Equipment
(e) Establishing connections between
participating members ofUTISInt.consultant
(0.25 w/m)
Nat.consultant
(0.25 w/m)Recurrent
chargesRecurrent
charges
(f) Subscription toselected databases Documentation
(g) Connection toGTPNet Documentation Documentation Recurrent
chargesRecurrent
charges
(h) Training trade information managers Int.consultant
(0.25 w/m)Recurrent
chargesRecurrent
charges
(i) Provision ofselected documentation,
written andelectronicDocumentation Documentation Recurrent
chargesWT/COMTD/IF/10
Page60
Project elements WTO UNCTAD ITC GovernmentInstitutions
and
enterprises
(j) Creation ofa"Uganda Business" web-
siteInt.consultant
(0.5w/m)Recurrent
chargesRecurrent
charges
(k) Organization anddesign ofa"Uganda
Business" home pageInt.consultant
(0.25 w/m)
SubcontractingRecurrent
chargesRecurrent
charges
(l) Advisory services totheUTIS member
organizationsNat.consultant
(0.5w/m)Nat.consultant
(0.5w/m)Recurrent
chargesRecurrent
charges
(m) Establishing coordination links with
counterpart information systemsMemo item Memo item Recurrent
chargesRecurrent
charges
6.Output 3.6Trade efficiency enhanced, through thesetting upofafull-fledged Trade Point
(a) Feasibility study ofafull-fledged
Uganda Trade PointIntern.
consultantNat.consultant
(0.25 w/m)Recurrent
chargesRecurrent
charges
(b) Formation ofaTrade Efficiency
AssociationGroup training
Intern.
consultantNat.consultant
(0.5w/m)Recurrent
chargesRecurrent
charges
(c) Establishing thetrade facilitation
component ofaUganda Trade Point in
KampalaEquipment
Group training
Intern.
consultantRecurrent
chargesRecurrent
charges
7.Output 3.7Guide to"trade secrets" adapted totheUgandan context
(a) Advice onthepreparation oftheGuide
toTrade SecretsIntern. consultant
(1.0 w/m)Recurrent
chargesRecurrent
chargesWT/COMTD/IF/10
Page61Project elements WTO UNCTAD ITC GovernmentInstitutions
and
enterprises
(b) Realization oftheGuide toTrade Secrets
inUgandaSubcontracting Recurrent
chargesParticipation
inthe
printing and
publishing of
theGuide
(c) Distribution oftheGuide Recurrent
chargesRecurrent
charges
8.Output 3.8Capacity oftheUganda Bureau ofStandards, strengthened inquality management
(a) Advisory missions inquality control
issuesIntern. consultant
(0.5w/m)Recurrent
chargesRecurrent
charges
(b) Operating theenquiry point ontechnical
barriers totradeMemo item Recurrent
charges
(c) Database oninternational quality
requirements intarget markets for
Uganda productsDocumentation
EquipmentRecurrent
charges
(d) Database onquality requirements and
regulations inUgandaSubcontracting
Nat.consultant
(1.5w/m)Recurrent
charges
(e) National seminar onquality management
forexportIntern. consultant
(0.5w/m)Recurrent
chargesRecurrent
charges
(f) Local seminars onquality management
andcontrol forexportSubcontracting Recurrent
chargesRecurrent
charges
MANAGEMENT
(a) Monitoring oftheProject activities, by
ITC, UNCTAD andWTOOfficial missions Official missions Senior adviser Recurrent
chargesRecurrent
chargesWT/COMTD/IF/10
Page62
Project elements WTO UNCTAD ITC GovernmentInstitutions
and
enterprises
(b) Local monitoring andnational
implementation ofactivitiesOfficial missions Official missions Subcontracting
documentation,
equipmentRecurrent
chargesRecurrent
charges
(c) Technical implementation Official missions Official missions Subcontracting Recurrent
chargesRecurrent
chargesWT/COMTD/IF/10
Page63
VI. PERFORMANCE CRITERIA AND RISKS
Thefollowing performance criteria aresettomeasure success orfailure ofthisProject:
A. Success Criteria
1. Objective 1:National capacity tounderstand MTS anditsimplications
Theexistence andefficiency ofanational capacity tofollow-up andimplement thevarious
provisions oftheUruguay Round Agreements willbeverified bythedegree ofself-reliance ofUgandan
institutions onlocalresources andinputs toseekadvice onWTO-related matters, andtomanage the
country 'sparticipation inWTO. Thedegree ofsophistication ofquestions andissues raised byUgandan
users oftheAgreements oftheWTO willindicate thelevel reached inmastering theprovisions of
theAgreements. Animproving quality ofUgandan inputs tointernational negotiations should also
demonstrate astronger mastery ofthemultilateral trading system issues atstake, especially when the
official positions alsoreflect substantive inputs bytheconcerned private sector institutions, based on
theinterests oftheirconstituencies.
Theregular provision andtransmission ofinformation andpublications topublic andprivate
sector institutions bythefocal unitattheMinistry ofTrade andIndustry willalsobeanindicator of
success, especially asthese institutions areexpected toforward theinformation toexport enterprises,
andtoundertake thenecessary debate withthese firms, toreflect theirinterests inofficial negotiating
positions attheWTO.
2. Objective 2:Seeking maximum advantage from theMTS
Theregular consultations between theGovernment andprivate sector institutions onissues
related tothemultilateral trading system, followed byasubstantial improvement ofthebusiness
conditions inthecountry, willbeanindirect result ofthisProject 'sactivities. Better articulated and
more coherent global trade policies andexport development strategies willbeaconcrete verifier of
thesuccess ofactivities planned under thesecond direct objective ofthisProject. Thisshould constitute
thecoreofamore conducive business environment, thatwould favour export-oriented investment and
trading transactions.
Theenactment oflawsandregulations inlinewiththeprovisions ofWTO Agreements and
which areconducive toanimproved business environment isacriteria tomeasure thesuccess ofthis
Project ’sactivities infacilitating trade procedures andregulations, which should result inattracting
more foreign direct investment, inparticular inthefieldofexport-oriented activities.
3. Objective 3:Enhancing Uganda 'sexport readiness
Theimpact ofactivities planned under thisProject 'sthirddirect objective willconcretize in
clearer options ofhowUgandan exporters could draw benefits from existing resources andtapnew
market opportunities andwhich goods andservices display themostfavourable commercial advantages,
ascompared withother international suppliers ofthesame products. Tothisend,theavailability of
appropriate facilities toprovide trade information asamanagement tooltoexporters willdefinitely
mark thedifference from thecurrent situation.
Furthermore, theappropriate utilization oftheoperational trade, legalandtechnical information
tobeprovided through theReference Centres, theUgandan Trade Information System andtheenquiry
point onTBTs andSPS,willbethemeasuring instrument ofperformance ofthisproject, inthefield
ofbetter export management ofUgandan firms, involved intheproject activities. Private sectorWT/COMTD/IF/10
Page64
organizations, associated withtheProject, should become more capable inusing theoutputs ofthe
economic,tradeandtechnicalinformationsetting,tobetterformulatetheirworkplansandmedium/long-
termstrategies.
Thenature andquality ofinformation provided within thesystem would beanadditional
performance criteria ofUTIS, inthesense thatitshould relate notonlytothesupply capabilities of
Uganda, butalsotothedemand trends ofimporting countries. Itshould alsoimprove dissemination
ofinformation towards themarketplace oftheexport offers ofthecountry, especially inthesubregion,
butalsoelsewhere. Anindicator ofperformance ofthetrade andtechnical information system, tobe
strengthened bytheProject activities willbethestronger linkage ofimporters andexporters inUganda
withpotential partners andbuyers abroad. Theeaseofaccess tomarket andtechnical information,
needed forthesuccessful conduct ofexport business, willalsoshow theexpected greater efficiency
ofthese export firms ininternational markets.
Thanks totheinformation availed bythedifferent facilities putattheirdisposal, andtotheir
ownassessment ofthemarket trends, aswellastheirstrengths, weaknesses andopportunities, Ugandan
exporters, private sector institutions andprofessional associations would havebetter capacity todefine
sectoral strategies, showing howspecific product groups, withcomparative advantages forthecountry,
could attract investment andgenerate export business.
Thematrix ofexportable goods andservices ofinterest tothecountry, together withthesectoral
strategies tobedefined, would beusedfortheestablishment byUgandan export firms ofmedium and
long-term marketing plans. These plans would leadtoanadequate definition oradaptation ofactual
goods tobemanufactured orservices tobeoffered, themarkets tobetargeted fortheir
commercialization, andthepromotional actions tobeundertaken. Inaddition, thesectoral andproduct
group strategies, together withthestrategy topromote subregional trade, would indicate tothe
Governmentandtheorganizationsinvolvedthemeasuresfortheenhancementofthebusinessenvironment
ingeneral andthespecific sectors inparticular. Thedegree ofimplementation oftherecommendations
formulated inthiscontext would beanindicator ofthesuccessful realization ofthese outputs ofthe
Project.
Better management ofthequality ofexport products willalsoindirectly result fromthethird
objective oftheProject. Thiscould beverified atUBSandwithin selected partner enterprises. These
enterpriseswouldbecomebetteracquaintedwithstandardsandqualityrequirementsofthetargetmarkets.
Theefficiency oftheirquality management skills willbereflected through thevalue added totheir
export proceeds, andthekindofproducts exported, which inthelongrunwould become more and
more elaborated.
Fullcomplementarity ofactivities between thisProject andother ongoing technical assistance
projects, implemented bythethreeexecuting organizations, willalsoshow theextent towhich activities
todevelop Uganda ’sexternal trade havebeenintegrated.
B. Risks
Theexpected performance ofthisProject would bemarkedly reduced byaneventual insufficient
commitment ofUgandan partners toprovide human resources andthenecessary recurrent expenses,
tosecure thefunctioning offacilities setupintheframework oftheProject (Reference Centres,
Economic andTrade Information System, etc.). Theimprovement ofthebusiness environment could
beseriously hampered bytheunavailability oftrainers andresource persons (tocarry outlocal
sensitization workshops andlegislation adjustment, etc.). Such anenhanced environment would be
conducive tothedevelopment ofexports andtobetter exploitation ofnewmarket access opportunities,
resulting from themultilateral trading system.WT/COMTD/IF/10
Page65
Incasedifficulties intheaccess ofexport firms tofinancial resources andexport credit had
tocontinue, ortheriseincostofexport financing persisted, theresults ofthisProject could alsobe
adverselyaffected.Thus,export-orientedinvestmentwouldnotbestrengthenedandpromotionalactivities
would notbefirmly based onavailability ofcompetitive export supplies.
Within thescope ofthethirdobjective, aninsufficient acknowledgement byprivate enterprises
oftheopportunities resulting fromtheimproved market access conditions, could extinguish orreduce
theirneedtoformulate andadopt sectoral strategies. These strategies areneeded foreachmajor product
group, displaying comparative advantages forthecountry.
VII. EVALUATION AND REPORTING, PROJECT REVIEW
TheProject implementation andresults willbeassessed twice during thelifetime oftheProject,
bythethree parties concerned initsimplementation, namely theGovernment ofUganda, thedonor,
orcommunity ofdonors, supporting theProject, andthethreeexecuting organizations (ITC, UNCTAD
andWTO). Thecommon evaluation procedures ofWTO, ITCandUNCTAD willbeapplied. Contacts
willbeestablished withUganda authorities toconduct these evaluation missions atmid-term andat
theendoftheProject. Evaluation reports should highlight theresults achieved andrecommend further
action, where necessary. TheProject budget contains financial provision fortheses twoevaluation
missions.
Intheevent thatmodifications arerequired tothepresent Project document, subsequent to
achange ofthecontext ornewfindings, orforanyotherreason, asdeemed necessary, tripartite reviews
willbeorganized, todiscuss andintroduce suchmodifications, including theirpossible implications
forthebudget ofthisProject. Thetripartite review willbeperformed by(i)theGovernment ofUganda
ortheSteering Committee, incharge offollowing uptheexecution ofthisProject; (ii)thedonor, or
community ofdonors, supporting theProject; andthethree executing organizations, namely, ITC,
UNCTAD andWTO.WT/COMTD/IF/10
Page66VIII. RESOURCE ALLOCATION AND PROJECT BUDGET
A.Budgetary Allocation ofResources byWTO
(InUS$, 1997-1999)
Item 1997 1998 1999 2000 Total
Missions andspecialized workshops 15,000 15,000 5,000 35,000
Training oftrainers 20,000 20,000
Training materials, incl.documentation 4,000 1,000 5,000
Technical missions inrelation tothefollow-up of
training oftrainers programme5,000 5,000 10,000
Contingency 3,000 4,000 3,000 10,000
Total 42,000 25,000 13,000 0 80,000WT/COMTD/IF/10
Page67B.Budgetary Allocation ofResources byUNCTAD
(InUS$, 1997-2000)
B/L Item1997 1998 1999 2000 Total
UNCTAD UNCTAD UNCTAD UNCTAD UNCTAD
m/m US$ m/m US$ m/m US$ m/m US$ m/m US$
11.01 Management andcoordination
13.01 Administrative support
15.01 Travel ofregional adviser
16.01 Official travel 2,500 10,000 10,000 2,500 25,000
16.02 Evaluation 10,000 10,000 20,000
17.01 National consultants 4.00 14,000 8.00 32,000 4.00 18,000 16.00 64,000
18.01 International consultants 5.25 73,500 4.00 56,000 9.25 129,500
21.01 Sub-contracting 0
32.01 Group training 11,800 11,800
33.01 National symposium 3,500 3,500
41.01 Expendable, incl.documentation 2,400 3,600 800 700 7,500
42.01 Equipment andnon-expendable 15,000 15,000
51.01 Operation andmaintenance 3,500 3,500 7,000
52.01 Reporting 1,000 1,000 1,000 3,000
53.01 Miscellaneous andreserves 557 3,515 3,824 1,379 9,275
56.13 Operating cost 2,243 15,485 15,876 4,820 38,425
Total 0.00 19,500 9.25 134,600 12.00 138,000 4.00 41,900 25.25 334,000WT/COMTD/IF/10
Page68C.Budgetary Allocation ofResources byITC
(InUS$, 1997 -2000)
B/L Item1997 1998 1999 2000 Total
m/m US$ m/m US$ m/m US$ m/m US$ m/m US$
11.01 Management andcoordination 1.00 14,300 4.00 58,400 4.00 59,600 1.00 15,200 10.00 147,500
13.01 Administrative support 1.00 1,500 4.00 7,000 4.00 8,000 1.00 2,250 10.00 18,750
15.01 Travel ofregional adviser +project 6,000 26,440 14,480 6,500 53,420
16.01 Official travel 2,500 7,000 6,000 2,000 17,500
16.02 Evaluation 6,700 6,800 13,500
17.01 National consultants 1.50 4,500 6.75 23,625 5.25 21,000 2.25 10,125 15.75 59,250
18.01 International consultants 1.50 27,750 6.75 128,250 4.25 82,875 1.75 35,000 14.25 273,875
21.01 Sub-contracting 4,500 26,500 7,500 3,000 41,500
32.01 Group training 15,400 53,250 68,650
33.01 National symposium 6,000 6,000
41.01 Expendable, incl.documentation 1,500 10,000 3,500 2,500 17,500
42.01 Equipment andnon-expendable 15,500 15,500
51.01 Operation andmaintenance 2,760 2,766 2,432 7,958
52.01 Reporting 930 1,700 1,700 1,700 6,030
53.01 Miscellaneous andreserves 3,863 16,787 9,393 3,997 34,040
Subtotal 82,743 389,912 216,814 91,504 780,973
56.13 Operating cost 10,757 50,688 28,186 11,896 101,527
Total 5.00 93,500 21.50 440,600 17.50 245,000 6.00 103,400 50.00 882,500WT/COMTD/IF/10
Page69IX.WORK PLAN AND SCHEDULE OFACTIVITIES
Project elements/activities1997 1998 1999 2000
IV I II III IV I II III IV I
Firstobjective: National capacity forunderstanding MTS anditsimplications forUganda
1.Output 1.1TheInter-institutional Committee tofollow-up theUruguay Round Agreements strengthened
(a) Supply basic documentation onthe
WTO Agreements
(b) Supply therelevant documents ofthe
various WTO Committees andWorking
Groups
(c) Include theMinistry ofTrade and
Industry inWTO 'smailing listof
periodical publications
(d) Provide technical advice onanyissue
faced bytheInter-ministerial
Committee onlegalandinstitutional
issues within theWTO ’ssphere of
competence, aswellasonitsongoing
activities
(e) Help drafttheterms ofreference ofthe
Inter-Ministerial Committee anddesign
theappropriate strategies totake
advantage ofthetransitional periods
allowed bytheUruguay Round
AgreementsWT/COMTD/IF/10
Page70Project elements/activities1997 1998 1999 2000
IV I II III IV I II III IV I
(f) Foster andsupport participation, to
subregional meetings, ofmembers of
theInter-Ministerial Committee
2.Output 1.2Customs administration strengthened incustoms matters related totheUruguay round Agreements
(a) Provide relevant information regarding
thework oftheWTO committees
dealing withcustoms matters
(b) Provide information tothecustoms
administration ontheimplementation of
theAgreements
(c) Provide assistance tothecustoms
administration onalltechnical matters
relating tocustoms tariffs
(d) Provide information relating tothe
work oftheCommittee onRegional
Trade Agreements
(e) Provide assistance onanylegalmatters
relating toregional integration orfree-
trade areas
3.Output 1.3Reference Centres onthemultilateral trading system established
(a) Establishment ofaReference Centre on
MTS atthefocal point forWTO
matters
(b) Establishment ofaReference Centre for
usebythebusiness communityWT/COMTD/IF/10
Page71Project elements/activities1997 1998 1999 2000
IV I II III IV I II III IV I
(c) Reference Centre onMTS established at
atraining institution
(d) Training ofthemanagers ofthe
Reference Centres
4.Output 1.4National training capacity inMTS issues reinforced
(a) Training oftrainers ingeneral MTS
matters: theGeneva course
(b) Specialized trainers inselected issues
important forUganda
(c) Providing academic andtraining
institutions withteaching material
5.Output 1.5Strengthened negotiating capacity tohandle thebuilt-in agenda inthevarious Uruguay Round Agreements
(a) Workshop forpolicy anddecision
makers
(b) Setting negotiating objectives and
preparing proposals
6.Output 1.6Knowledge andunderstanding ofUruguay Round Agreements enhanced, bypublic sector officials, private sector institutions, foreign
trade enterprises, andthegeneral public
(a) Organization oftwogeneral seminars
(b) Technical andspecialized workshopsWT/COMTD/IF/10
Page72Project elements/activities1997 1998 1999 2000
IV I II III IV I II III IV I
Second objective: Conforming toandseeking advantage from theMTS
1.Output 2.1Awareness oftrade policy issues improved, inrelation tothevarious adjustments totheUruguay Round Agreements
(a) Assessment ofthepotential impact of
theUruguay Round Agreements onthe
Uganda economy andexternal trade
(b) National symposium ontrade policy
measures toimprove thebusiness
climate inUganda
2.Output 2.2Contribution totheadjustment oflawsandregulations
(a) Assistance inthedrawing upof
notifications which thecountry must
make inconnection withits
participation intheWTO
(b) Provision oftechnical advice onthe
implementation oftheAgreements,
based onexamples from countries with
similar profiles
(c) Evaluation missions concerning any
problem relating tothereview or
introduction ofnational legislation
aiming atconsistency withWTO rules
(d) Field missions designed toenable the
authorities tointroduce national
legislation, interaliabyproposing
model lawsthatcould beadapted tothe
specific situation ofUgandaWT/COMTD/IF/10
Page73Project elements/activities1997 1998 1999 2000
IV I II III IV I II III IV I
3. Output 2.3Business Community made aware ofhowtomaximize trade opportunities provided byspecial anddifferential treatment, including
transitional arrangements built-in totherelevant Uruguay Round Agreements
(a) Identification ofconcrete policy support
measures andbusiness strategies,
necessary toachieve maximum
exploitation ofthespecial and
differentiated treatment provisions for
LDCs
(b) Indication ofways andmeans to
improve access toappropriate
technology, through technology policy,
compatible withtheTRIPS Agreement
(c) Study oftheimpact ofthetariff
structure onthecompetitiveness of
exports andforpossible harmonization
attheEAC level
4.Output 2.4Recommendations formulated fortheimprovement ofthebusiness environment
(a) Harmonization ofinvestment codes and
promotional strategies
Third objective: Enhancing Uganda ’sexport readiness
1.Output 3.1Export development potentials identified, based onUganda ’scomparative advantages
(a) Matrix ofexportable goods andmarkets
ofinterest toUganda, established
(b) Matrix ofexportable services and
markets ofinterest toUganda,
establishedWT/COMTD/IF/10
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IV I II III IV I II III IV I
2.Output 3.2Ugandan exporters better acquainted withnewmarket potentials forUgandan goods andservices
(a) Market orientation tourforcoffee, tea
andcocoa
(b) Market orientation tourforoilseeds
(c) Market orientation tourforfood
preparations andfish
(d) Market orientation tourforspices
(e) Market orientation tourfortextiles
(f) Market orientation tourforthetourism
industry
3.Output 3.3Sectoral marketing strategies designed forselected priority products (goods andservices)
(a) Training workshops onexport strategy
design
(b) Design ofasectoral marketing strategy
forthedevelopment ofUganda exports
ofcoffee, teaandcocoa
(c) Design ofasectoral marketing strategy
forthedevelopment ofUganda exports
ofoilseeds
(d) Design ofasectoral marketing strategy
forthedevelopment ofUganda exports
offoodpreparations andfish
(e) Design ofasectoral marketing strategy
forthedevelopment ofUganda exports
ofspicesWT/COMTD/IF/10
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IV I II III IV I II III IV I
(f) Design ofasectoral marketing strategy
forthedevelopment ofUganda exports
oftextiles
(g) Design ofasectoral marketing strategy
forthedevelopment oftourism products
inUganda
(h) Formulation ofanational strategy to
promote subregional trade
4.Output 3.4.Design ofcompany-specific strategies andbusiness plans designed byexporters, supported
(a) Provision ofadditional information to
companies willing todefine business
andexport marketing plans
(b) Provision ofself-teaching material to
exporters todesign business plans
(c) Technical advice provided toselected
exporters intheformulation of
company-specific strategies
5.Output 3.5Effective Uganda Trade Information System established
(a) Feasibility study fortheestablishment
ofaneffective Trade Information
System inUganda
(b) Workshop ontrade informationWT/COMTD/IF/10
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IV I II III IV I II III IV I
(c) Formation ofanon-profit association to
manage theUganda Trade Information
System
(d) Provision ofadditional equipment to
enable connectivity andmultimedia
operation, where necessary
(e) Establishing connections between
participating members ofUTIS
(f) Subscription toselected databases
(g) Connection toGTPNet
(h) Training trade information managers
(i) Provision ofselected documentation,
written andelectronic
(j) Creation ofa"Uganda Business" web-
site
(k) Organization anddesign ofa"Uganda
Business" home page
(l) Advisory services totheUTIS member
organizations
(m) Establishing coordination links with
counterpart information systems
6.Output 3.6Trade efficiency enhanced, through thesetting upofafull-fledged Trade Point
(a) Feasibility study ofafull-fledged
Uganda Trade PointWT/COMTD/IF/10
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IV I II III IV I II III IV I
(b) Formation ofaTrade Efficiency
Association
(c) Establishing thetrade facilitation
component ofaUganda Trade Point in
Kampala
7.Output 3.7Guide to"trade secrets" adapted totheUgandan context
(a) Advice onthepreparation oftheGuide
toTrade Secrets
(b) Realization oftheGuide toTrade
Secrets inUganda
(c) Distribution oftheGuide
8.Output 3.8Capacity ofUganda Bureau ofStandards, strengthened inquality management
(a) Advisory missions inquality control
issues
(b) Operating theenquiry point ontechnical
barriers totrade
(c) Database oninternational quality
requirement intarget markets for
Uganda products
(d) Database onquality requirements in
Uganda
(e) National seminar onquality
management forexport
(f) Local seminars onquality management
andcontrol forexport