‘New NTBs are taking over in EAC’

By Charles Kazooba

Trade amongst the East African Community partner states has steadily risen in terms of volume because of efforts to track down all barriers. In the case of non-tariff barriers research by various institutions indicate a drastic improvement, however, in an interview with Mr Kassim Omar (in picture), a clearing agent and board member of the East African Business Council new NTBs have cropped.

Qn: What is the status of non-tariff barriers?

Ans: A lot has been achieved but also a lot has evolved in terms of new non-tariff barriers (NTBs). The National Monitoring Committee (NMC) has created a difference in the manner in which NTBs occur. The platform and manner of tackling NTBs is more pronounced. There is marked awareness on NTBs. The National Monitoring Committee has engaged with policy makers (government agencies in charge) on the NMC board.

However, the cost of doing business in the region has remained high. There are shipping companies that have formed cartels—imposing arbitrary charges and maintaining hidden costs such as equipment costs, management fees, amendment fees, and delivery order fees.

Arbitrary charges constitute approximately $800-1000 per etu are the biggest impediment to trade along the northern and central corridors. These new forms of NTBs are not given due attention by governments and attributes to very high costs of products.

Unfortunately, the whole region is focused on ways reducing transport costs on routes but aren’t aware of the syndicates in logistics value chain are major contributors. These shipping companies are imposing these charges with impunity and a very high level of recklessness that is unchecked and unmonitored.

Many organizations from the private sector that include; shippers’ councils, freight forwarders associations, inter-government standing committees in shipping, Northern Corridor transit Transport Coordination Authority, the Central Corridor Authority, Kampala City Traders Association and Chambers of Commerce have raised these concerns time and again in various fora and at different levels in government but no drastic measures have been instituted to curb this trend.

Qn: I understand last year the private sector in joint efforts with government launched a national response strategy to eliminate the NTBs, what is the progress?

Ans: The national response strategy for elimination of NTBs is a project that was under the Ministry of Trade and Cooperatives and is funded by Trade Mark East Africa. The project has multi-thronged objectives to deal with NTBs affecting the business community in Uganda. Similar projects are currently funded in partner states. The key objective of this project is to address and engage all stakeholders including other government agencies to eliminate NTBs. The project so far is in high gear.

Qn: So far, what is the impact of this measure towards NTBs on Uganda’s economy?

Ans: The major impact was when the issue of cash bonds arose last year and resulted in a lot of concerted effort by government and awareness by the business community for its removal.

Qn: In your opinion what is the long-term solution to settle the disharmony between the business community and Mombasa Port authorities?

Ans: Landlocked countries should today form maritime authorities under the public-private partnership framework, which can deal with matters of transport and shipping of cargo from within and outside their countries by engaging closely with other maritime authorities in countries that have access to ports of Dar es Salaam and Mombasa.

The two countries to engage are Kenya and Tanzania who already have maritime authorities that handle and negotiate issues related to ports, costs of transport, clearing and forwarding agents, standards and regulations within logistic chains. These maritime authorities are statutory organizations that have mandate to ensure that commitments from stakeholders are effected and adapted as laws. In Kenya, it is Kenya Maritime Authority and Tanzania, Surface and Maritime Transport Regulatory Authority that are in charge.

Qn: Therefore, why have governments in the so called landlocked countries established maritime authorities?

Ans: This is a new concept. It is our last resort since shipping lines are on rampage of cheating traders and no solution is in sight yet.

Qn: Weighbridges are still a major hindrance to trade, when shall we see the last of them?

Ans: We need to accept weighbridges are important controls that are essential for management and maintenance of good roads in our countries. However, when they are mismanaged through collusion of individuals who are seeking financial gains then the very essence of having weighbridges becomes null and void.

The importance of weighbridges in ensuring that misuse of roads by excessive loading of trucks is curtailed contributes highly to sustainable good roads. But corruption and manipulation of the weighing scales led to a public outcry because of selective manner in which case of misuse was handled.

However, the weighbridges in EAC today will soon be harmonized in terms of axle load limit and gross vehicle mass controls as soon as the road axle load policy is passed. It was agreed transit cargo in Kenya be weighed twice only and in Uganda to be weighed twice i.e. port of origin and exit within transiting country. However, in Tanzania it was agreed that transit cargo can be weighed three times because of demographic setting of the country and size. Currently, this isn’t yet in practice.