Uganda urged to avoid trade deals that threaten local firms

Kampala - Uganda government has been cautioned against signing international trade and bilateral agreements without scrutinising their impact on indigenous firms. Many of the trade agreements seek to favour foreign business firms or multinationals, according to Kyambogo University senior lecturer, Milton Ayoki. The don argued that government should only sign agreements that do not threaten the survival of local industries and businesses. Ayoki pointed out that 50 per cent of local enterprises can hardly survive their fifth birthday due to competition driven by foreign firms. This was during a meeting aimed at addressing development challenges of Uganda in the context of Economic Partnership Agreements (EPAs), Common Market for Eastern and Southern African (COMESA), East African Community (EAC), South African Development Community Tripartite and other bilateral trade agreements in Kampala. The meeting, organised by Southern and Eastern Africa Trade Information Negotiations Institute (SEATINI), was attended by policy-makers, civil society organisations, MPs and members of the private sector. However, an official from the Cabinet secretariat and Office of the President, Dr Abubaker Moki, pointed out that government cannot cancel trade and bilateral agreements it has signed. “Cabinet can’t unpack signed agreements, instead we engage and negotiate – that’s where we can influence.” To increase access and understanding of signed agreements which come in the form of multinational, continental, regional and bilateral, the government studies them know the likely beneficiaries,” explained Moki. The official challenged businesses to observe international standards to be competitive. “Substandard goods are critical. Without quality standards, we can’t succeed.” Meanwhile, Ambassador Nathan Irumba, the SEATINI chief, pointed out that there is need to revisit government’s policy on procurement as it favours foreign firms. “We are worried of government’s procurement policy. What chances are there for Ugandan firms to win a contract apart from foreign companies?” On promotion of small-and-medium enterprises (SMEs), legislators rapped government for undermining the latter in preference to foreign companies. They said Nytil – a local textile industry – laid off 400 women who are now jobless and yet government continues to buy uniform for Police and the army from China and India. SME operators were challenged to improve on the quality of their products to attract local buyers or else consumers will continue to prefer foreign products to ‘Made in Uganda’ goods.

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Uganda urged to avoid trade deals that threaten local firms