Speaking to Uganda Radio Network (URN) on phone Justin Jing, the Economic and Commercial Third Secretary at the Embassy of the Peopleâ€™s Republic of China, said that for instance, under a special preferential treatment China has opened its market to 4, 721 product lines from Uganda
Under such agreements, the specific products can be exported to outside markets quota free.
Speaking to Uganda Radio Network (URN) on phone Justin Jing, the Economic and Commercial Third Secretary at the Embassy of the People’s Republic of China, said that for instance, under a special preferential treatment China has opened its market to 4, 721 product lines.
While all the trade tariffs are not necessarily eliminated, they are lower than countries not party to the agreement. Jing says the agreement gives 95% tax free of Uganda exports, meaning that Ugandan Investors would pay only 5% in other related tax.
The agreement reached in 2013, is similar to other trade arrangement Uganda has with ECOWAS, EAC and individual states like India, Korea and Morocco.
However, Uganda Investment Authority (UIA) under the Ministry of Finance Planning and Development, whose role is to find markets for Uganda, says that investors have not fully utilized these opportunities because they cannot produce the required quantities.
Sheila Mugyenzi Senior Investment Executive at UIA advises investors interested in markets under preferential trade agreements to add value to their products and make them attractive to the market.
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Information obtained from the Uganda Export Promotion Board lists Economic Partnership Agreements (EPA’s) African Growth Opportunity Act (AGOA), everything but arms under the European Union, as some of the preferential trade areas that present business opportunities.
According to James Lwere, a Consultant at the Uganda Export Board, exports to foreign markets include Agri -business products such as cereals, grains, vegetables, fruits and processed foods.
The board also promotes, fish and marine products, animal products, handicrafts and tourism services among others.
Lwere said already the board has created market links within rural communities where farmers are advised on how to package their products and how to access markets abroad.
However, Mugyenzi says investors in Uganda were going in business as individuals, but could accrue more profits and secure markets if they organized into groups exporting common products.
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Main imports to Uganda from other international markets include mechanical and electrical appliances, textiles, garments, pharmaceuticals, porcelain and enamel products, and footwear.