ACTIVITIES OF THE INTERNAL TRADE DEPARTMENT 2009

The National Trade Policy envisages implementation through five year rolling National Trade Sector development plans. The first National Trade Sector Development Plan covering 2008/9 – 2012/13 has been developed. This plan gives a    schedule of implementations in line with stipulated policy interventions and actions for both domestic and external trade.

The department of internal trade has implemented a series of activities aimed at achieving its mission to develop and nurture private sector competitiveness, and to support the productive sectors of the economy to trade at both domestic and international levels with the ultimate objective of creating wealth, employment, enhancing social welfare and transforming Uganda from a poor peasant society into a modern and prosperous society.

During this quarter , activities including but not limited to the following were done; Strengthening the commercial legal regime, Non Tariff Measures, capacity and effectiveness of District Commercial offices, Trade and Gender Mainstreaming, formation of Uganda Shippers council.

Strengthening the commercial legal regime

In order to strengthen the domestic legal regime, the department of internal trade has prepared two bills that are soon to be present to the Cabinet. The two bills are, counterfeit Bill and the Sale of goods and supply of services amendment Bill. Participatory consultations were made with all stakeholders from both public and the private sector including the academia.

The existing code Act 120, the copy rights Act No.19 of 2006 and the Trademarks Act cap 217 basing on the United Kingdom Act, which commenced on 1st, January 1953 are outdated and do not consider  current policy issue of international trade obligations, globalization and technological advancement among others. The department of internal trade is committed to protect Uganda’s investment from intellectual property infringements that affects industrial growth and development and this forms the basis of formation and amendment of the two bills.

The sale of goods and supply of services bill contains various reforms of the sale of goods and supply of services law of Uganda arising out of recommendations from a study undertaken by the Uganda Law Reform Commission.  The bill seeks to reform and replace the existing sale of Goods Act, Cap.82 and seeks to cover also contracts for the supply of services which are now not covered by the sale of goods Act.

 In developing counterfeit law the government will achieving the following;

Promote industrial development in the country by responding to investors demands of protection against unfair competition from the counterfeit products, create more employment, It will protect consumers from being confused and cheated in the market place, It will provide an enabling environment for domestic producers and investors to market and sell their products without threat from counterfeits, the population will be protected from dangerous products like counterfeit drugs, chemicals and appliances, reduction and elimination of revenue losses resulting from counterfeits

The department of internal trade in the Ministry of Tourism Trade and Industry is to strengthening the domestic legal regime for trade promotion. Of course this will be facilitated with the current East African Community integration.

Non Tariff Measures

The department made progress on the implementation of the Non Tariff Barriers (NTBs) monitoring mechanism. Monthly National Monitoring Committee (NMC) meetings were held to record and discuss existing NTBs and also decide on collective measures. The NMC has put in place structures at boarder districts to monitor NTBs. These structures also replicate the functions of the NMC. NTB monitoring forms to be filled by concerned traders have been put at boarder posts of Mutukula, Katuna, Malaba and Busia. Three sensitization workshops on NTBs for local governments and MDAs have also been conducted.

Capacity and Effectiveness of District Commercial Offices (DCOs)

As a follow on the recommendations of study on the efficiency and effectiveness of DCOs in 2008, the department of internal trade held a meeting with representatives from the Ministry of Public Service (MOPS), Ministry of Agriculture Animal Industry and Fisheries (MAAIF) and Ministry of Local government (MOLG).  Key issues were raised which would form a basis of determining away forward on enhancement of the capacity of DCOs to handle trade issues. Amongst the issues were;

The Crisis of relevance i.e. MTTI was advised to clearly state and come up with the key functions of the DCOs in the districts based on the functions and roles of MTTI. The role of MTTI at the district was not felt, inadequate schemes of service for DCOs; the need to do a job analysis, description and specifications for the DCOs was identified, inadequate institutional linkages and collaborations/synergies between MTTI, MAAIF, MOLG and MOPS, Inadequate financial, material and technical support to the DCOs, inappropriate DCO Structure; MOPS informed of the new structure that has been developed for the production and marketing department at the district, the structure has been approved by cabinet and the process was to consult with the districts for approval, inadequate capacity of the DCOs in terms of skills and competencies of the DCO to handle traded related issues

However the following recommendations have been made to enhance the capacity of DCOs to effectively and efficiently deliver services; define the key functions of DCOs in the districts based on functions and roles of MTTI, review and develop schemes of service (job analysis, descriptions and specifications) for the DCOs, hold joint meetings with other stakeholders  to appraise sector policies and strategies, lobby for funding to create a conditional grant, give technical guidance and support to the DCOs, sensitization of key stakeholders  on the role of DCOs, rationalize and customize the structure and do a gap analysis for skills and competencies

MTTI is committed to seeing this intervention through with of course support for other stakeholders to ensure that DCO capacity is enhanced to promote trade at the districts.

 Trade and Gender mainstreaming

In order to mainstream gender in trade and development, the department is currently implementing a project on Trade and Gender. The project is funded by the Common Wealth Secretariat. During this quarter the department organized a one day workshop for policy makers in the ministry of Tourism trade and Industry and also from Ministry of Gender Labor and Social Development. This workshop was intended to understanding of gender as a tool for economic analysis in trade and trade related policies.

The workshop was intended to help either group to learn from the other and establish entry points for mainstreaming gender issues into trade activities. Consequently, facilitators from the Ministry of Gender labour and social development took officers from   the Ministry of Tourism, Trade and industry though a number of topical issues on gender during the first two days of the workshop. During the next two days of the workshop, facilitators from the Ministry of Tourism, Trade and Industry took participants from Ministry of gender, labour and social development through topical issues on trade. Following this an Inter Institutional Trade Committee meeting and a TOT workshop was conducted to enable the policy makers also train others on issues of trade and gender.

Formation of Uganda Shippers’ Council

The United Nations Convention on a code of conduct for linear conferences defines a shipper as “a person or entity who has entered into, or who demonstrates an intention to enter into a contractual or other arrangements with a conference or shipping line for the shipment of goods in which he/she has a beneficially interest.. The key word in the definition is ‘beneficial interest’ the reference to a conference or shipping line appears only because the code is focused on linear conferences.

In traditional commercial terms, a shipper is “a person who is legally obliged to pay the transport carrier for the transportation of goods.

The development of Shippers’ Council organizations has generally been associated with the existence of linear Conferences’. Traditionally, conference lines have been able to charge discriminatory freight rates which are generally considered by shippers to be unduly high. The have also tended to determine  general conditions of service such as frequency of sailings, types of vessels used, etc with out paying any due regard  to shippers requirements

Shippers’ have therefore formed shipper organizations to provide themselves with powers to counter the conferences’ powers in making various decisions on freight rates and other service conditions.

The department of internal trade in Collaboration with the Private Sector i.e. all key institutions involved in shipping and the Inter-Governmental Standing Committee on Shipping (ISCOS) has made deliberate steps to form the Uganda Shippers Council (USC) which process started in August 2008. The main functions of the council to include but not limited to; Providing education, information and training to shippers most on the use of International Commercial Terms (2000) Used in Shipping, negotiations/consultations with other service providers like port Authorities, and government agencies in charge of ports, roads, railways etc, organizing alternative routes for members/shippers, guidance and advice to members in consultations with the ISCOS.

STEERING COMMITTEE FOR THE FORMATION OF UGANDA SHIPPERS’ COUNCIL

The process to form the Uganda Shippers’ Council Started in August 2008 at a workshop held at the Ministry of transport and Works Training School Kyambogo. Participants in the workshop were official drawn from various organizations engaged in the import/export trade, regional and maritime institutions and government agencies dealing with matters related to shipping and maritime transport.

To fast track the formation of the Uganda shippers’ Council, members were drawn from Key institutions of the private sector directly dealing in shipping and the Ministries of Tourism Trade and Industry (MTTI) and Ministry of Works, Transport and (MoW). The coordination function for the formation of USC was charged to MTTI.

ACHIEVEMENTS SO FAR INCLUDE;

Office space has been acquired; thanks to UNCCI, to host the secretariat at the UNCCI’s new home in Kamowokya along Kira Road.

Held quarterly steering Committee that have resulted into the Draft constitution of the Council. This has been circulated to members for further comments. Incorporating these comments, registration and launching of the constitutions is planned by end of July.

Click here to read the National Trade Policy

Click here to read the ministers-remarks-at-the-5th-NTRSC