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71819 v1 Public Disclosure Authorized Volume 1 Public Disclosure Authorized UGANDA Public Disclosure Authorized Diagnostic Trade Integration Study R E P O R T November 2006 Public Disclosure Authorized ABBREVIATIONS AND ACCRONYMS € Euro FSAP Financial Sector Assessment Program ACP African, Caribbean, and Pacific FSSP Fisheries Sector Strategic Plan ADT Average Daily Traffic FTA Free Trade Area ADZ Aquaculture Development Zone GAFRD General Authority for Fish Resources AfDB African Development Bank Development AGOA African Growth and Opportunities Act GAP Good Agriculture Practices ASYCUDA Automated System for Customs Data GDP Gross Domestic Product BMU Beach Management Units GIS Geographic Information System BOU Bank of Uganda GKMA Greater Kampala Metropolitan Area BRC British Retail Consortium GMO Genetically Modified Organisms C&F Clearing and Forwarding GMP Good Manufacturing Practices CA Competent Authority GNFS Goods and Non-Factor Services CAA Civil Aviation Authority GNI Gross National Income CBC Customs Business Center GOK Government of Kenya CBI Centre for the Promotion of Imports from GOU Government of Uganda developing countries GPS Global Positioning Satellite CBS Community Based System GSP Generalised System of Preferences CDO Cotton Development Organization ha Hectare CEM Country Economic Memorandum HACCP Hazard Analysis and Critical Control Points CEO Chief Executive Officer HCDA Horticultural Crops Development Authority CET Common External Tariff HORTEXA Horticulture Exporters Association CG Commissioner General HR Human Resources COMESA Common Market for Eastern and Southern ICBT Informal Cross Border Trade Africa Cooperation for Emerging Markets ICD Inland Container Depot CU Customs Union ICO International Coffee Organization DAR Directorate of Animal Resources IDA International Development Association DCP Department of Crop Protection IDEA Investment in Developing Export Agriculture DFID Department for International Development IFAD International Fund for Agricultural (UK) Development DFR Department of Fisheries Resources IFS International Financial Statistics DP Development Partners IFWG Integrated Framework Working Group DRC Democratic Republic of Congo ILM Integrated Lake Management Project DTI Direct Trader Input ILO International Labour Organisation DTIS Diagnostic Trade Integration Study IMF International Monetary Fund EAC East African Community IPPC International Plant Protection Center EBA Everything But Arms Initiative ISO International Organization for Standardization EDF European Development Fund IT Information Technology EDI Electronic Data Interchange ITC International Trade Centre EDP Export Development Project IUU Illegal, Unreported and Unregulated ECGS Export Credit Guarantee Scheme JICA Japan International Cooperation Agency EIB European Investment Bank KEDS Kenya Export Development Services EPA Economic Partnership Agreement kg Kilogram EPADU Export Promotion Analysis and Development KIP Kampala Inland Port Unit km Kilometer ERP Effective Rate of Protection KPA Kenya Ports Authority ERS Export Refinance Scheme KPC Kenya Pipeline Corporation EU European Union KRA Kenya Revenue Authority EUREPGAP Euro-Retailer Produce Working Group’s Good KRC Kenya Railways Corporation Agricultural Practices Ksh Kenyan shilling FDI Foreign Direct Investment l Litre FFP Fair Flowers and Plants LDC Least Developed Country FHL Fresh Handling Limited LVFO Lake Victoria Fisheries Organisation FIRRI Fisheries Resources Research Institute m Million FLP Flower Label Program MAAIF Ministry of Agriculture, Animal Industry and FMO Netherlands Development Finance Company Fisheries FOB Free on Board MCS Monitoring Control and Surveillance Foodnet “Post-Harvest Research and Market Network MEMD Ministry of Energy and Mineral Development for East and Central Africa” Project MFN Most Favored Nation FPEAK Flower Producers and Exporters Association MFPED Ministry of Finance, Planning and Economic of Kenya Development i MIA Ministry of Internal Affairs SWOT Strengths, Weaknesses, Opportunities and MICT Ministry of Information, Communications, Threats and Technology t Tonne MIS Market Information Systems TASS Technical Assistance and Support Services MJCA Ministry of Justice and Constitutional Affairs TAZARA Tanzania Zambia Railway Authority MLG Ministry of Local Government TBL Through Bill of Lading MOES Ministry of Education and Sport TBT Technical barriers to trade MOH Ministry of Health TEU Twenty-feet Equivalent Unit MWT Ministry of Works and Transport TICTS Tanzania International Container Terminal MPS Ministry of Public Services Service MTCS Medium Term Competitive Strategy tkm Tonne Kilometre MTRA Multi-sector Transport Regulatory Authority TORs Terms of Reference MTTI Ministry of Tourism, Trade, and Industry TPA Tanzania Ports Authority MWLE Ministry of Water, Land and Environment TRC Tanzania Railways Corporation NAADS National Agricultural Advisory Services TTCA Transit Transport Co-ordination Authority NARO National Agricultural Research Organization TTF Transport and Trade Facilitation NEMA National Environment Management Authority TUNADO The Ugandan National Apiculture NEPAD New Partnership for Africa’s Development Development Organization NFA National Forest Authority UAE United Arab Emirates NGO Non-Governmental Organization UBOS Uganda Bureau of Statistics NPA National Planning Authority UCC Uganda Communications Commission NRA National Roads Authority UCDA Uganda Coffee Development Authority NRP Nominal Rate of Protection UCGEA Uganda Cotton Growers and Exporters NTMP National Transport Master Plan Association OECD Organization for Economic Co-Operation and UEPB Uganda Export Promotion Board Development UETCL Uganda Electricity Transmission Limited OIE World Organization for Animal Health UFA Uganda Fisheries Authority OPM Office of the Prime Minister UFEA Uganda Flower Exporters Association PEAP Poverty Eradication Action Plan UGSTDP Uganda Sustainable Tourism Development PESP Program for Economic Cooperation in Programme Projects UIP Uganda Integrated Program PIP Pesticide Initiative Program UIRI Uganda Industrial Research Institute PIRT Presidential Investors Roundtable UK United Kingdom PMA Plan for Modernization of Agriculture UMA Uganda Manufacturers Association PMAESA Port Management Association for Eastern and UMACIS Ugandan Manufacturer Association Southern Africa Consultancy and Information Services PO President’s Office UNBS Uganda National Bureau of Standards POL Petroleum Oils and Lubricants UNCCI Uganda National Chamber of Commerce PPP Purchasing Power Parity and Industry PSD Private sector development UNCOMTRADE United Nations Commodity Trade PSOM Programma Samenwerking Opkomende UNCTAD United Nations Conference on Trade and Market Programme Development PSP Private Sector Participation UNDP United Nations Development Programme QC Quality Control UNFFE Uganda National Farmers Federation RAFU Road Agency Formation Unit UNIDO United Nations Industrial Development REER Real Effective Exchange Rate Organization RER Real Exchange Rate UNRA Uganda National Roads Authority RMP Residue Monitoring Plan URA Uganda Revenue Authority ROO Rule of Origin URC Uganda Railways Corporation RPED Regional Program for Enterprise Development US $ United States Dollars RTA Regional Trade Arrangement US United States of America SADC South African Development Community USAID United States Agency for International SCOPE Strengthening the Competitiveness of Private Development Enterprise USD US Dollar SEP Strategic Export program Ush Ugandan Shilling SIC Standard Industrial Classification VAT Value Added Tax SIDA Swedish International Development WB World Bank Corporation WC Working Capital SPEG Sea-freight Pineapple Exporters of Ghana WCO World Customs Organization SPS Sanitary and Phytosanitary WFP World Food Programme SSA Sub-Saharan Africa WTO World Trade Organization ZEGA Zambia Export Growers Association ii TABLE OF CONTENTS PREFACE AND ACKNOWLEDGMENTS ............................................................................................ VI EXECUTIVE SUMMARY ........................................................................................................................ IX 1. CONTEXT AND BACKGROUND .................................................................................................... 1 ......................................................................................................... 3 1.2 TRADE PERFORMANCE ............................................................................................................... 6 1.3 POVERTY TRENDS AND PROFILE ................................................................................................14 2. SELECTED COMPETITIVENESS ISSUES: ................................................................................ 18 ..................................................................................18 .........................................................................................20 3. TRADE POLICY AND REGIONAL TRADE ARRANGEMENTS ............................................. 25 ......................................................................................................................25 3.2 EXPORT POLICIES ......................................................................................................................29 3.3 REGIONAL TRADE ARRANGEMENTS .........................................................................................30 3.4 TRADE POLICY AND POVERTY ..................................................................................................36
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