INDUCTION OF NEWLY APPOINTED AMBASSADORS

Transcription

1 THE REPUBLIC OF UGANDA MINISTRY OF TRADE, INDUSTRY AND COOPERATIVES INDUCTION OF NEWLY APPOINTED AMBASSADORS Opening Remarks by Hon. Amelia Kyambadde, Minister Theme Enhancing Trade and Investment through Implementing Uganda s Economic and Commercial Diplomacy February,

2 Your Excellencies I congratulate you upon your appointment as Uganda s Ambassadors and High Commissioners. Your appointment is a demonstration of trust and confidence that H.E. the President and the NRM Government have on Your Excellencies. Uganda Missions in foreign countries manage Uganda s external relations with the host countries. This includes facilitating engagements in international business ventures beneficial to both the private sector and Government. Missions are, therefore, instrumental in promoting Uganda s trade and investment with the host countries. Uganda is committed to a private sector driven export lead economic growth. Given that Uganda is endowed with abundant natural resources, the Ministry s cardinal objectives are: increasing capacity for value addition and quality assurance, create a conducive environment to attract foreign investment, address tariff and non tariff barriers to trade, and enable Uganda to sustainable access and meet the demands of Regional and International Markets. Your major role, from the Ministry s perspective, is to recommend and undertake strategic economic diplomacy measures that will enable the Country to attract more direct foreign investment, and access lucrative regional and international markets. 2

3 Uganda is a signatory to a number of trade and trade-related agreements which provide the country with varying levels of improved market access opportunities into the respective markets. These include COMESA, EAC, WTO, and other non-reciprocal unilateral trade preferences such Everything But Arms (EBA) by the European Union, the African Growth and Opportunity Act (AGOA) of the United States and other offers by Canada, Japan and China under the Generalized System of Preferences (GSP). Uganda must prepare to exploit the above opportunities by not only addressing the supply-side constraints but also by implementing measures that promote market penetration and competitiveness. The regional market now absorbs most of the exports, for example, S. Sudan accounted for 18.9% (US$405.5m) of total exports in 2010, followed by D.R Congo at 15.2% (US$327.1m), Kenya at 13.2% (US$284.4m) and Rwanda 8.5% (US$182.2m). The regional market has played a key role in shielding the Ugandan economy from the full effects of the global financial crisis. It is, therefore, strategically important to consolidate the regional market, but without loosening grip on the international markets export markets. Foreign Missions in the region, therefore, need to approach economic and commercial diplomacy from the perspective of facilitating more Ugandan products to access these markets, by addressing the challenges Ugandan business persons face in those markets. For example, the Missions in South Sudan or Democratic Republic of Congo could engage with the respective host Governments to ensure security for Ugandan 3

4 business persons. The Missions in Kenya and Tanzania need to be keener on the aspects related to Non-Tariff Barriers faced by Ugandan traders in those countries and vigorously engage the host Governments. The broad expected deliverables of the Missions in promoting trade and investment between Uganda and the host countries include the following: (i) Coordinating and mobilising for technical and financial assistance to strengthen institutional capacities, promote conformity quality assurance, develop trade related infrastructure such as transport, post-harvest handling facilities. (ii) Facilitating identification of policies in the host country that Uganda should align with in order to attain competitiveness in that market. Focus should be given to Sanitary and Phyto-sanitary (SPS) standards regulations; intellectual property rights (IPRs), rules of origin (ROOs) and traceability issues. (iii) Facilitating identification of product markets and dissemination of such information from the markets to firm level beneficiaries. (iv) Enhancing institutional collaboration between Uganda and the host country (v) Enhancing of demand driven production and effective market entry and strategic positioning. Study the distribution and marketing chains in the host country and inform Ugandans. 4

5 (vi) Identifying and coordinate access to convenient and affordable trade and investment finance from the host markets. (vii) Facilitating transfer of adaptable and affordable technologies, and inputs needed for enhancing value addition in targeted export products. (viii) Mobilising for Foreign Direct Investments along the value chain. (ix) Establishing mechanism that can enable SMEs to familiarise and learn best practices including cooperative movements of the host countries. (x) Undertaking continuous engagements in trade negotiations for favourable market access for products of exports interest to Uganda. Under the coordination of the Acting PS, the various Departments of the Ministry will, in their respective presentations to you, expound on the aforementioned deliverables, and provide you with copies of the National policies on trade, industry and cooperatives, and documents on the relevant laws and regulatory frameworks. I thank Your Excellencies for coming, and pledge the Ministry s commitment to work with you in promoting the interest of the Country. I now request Mr. Fred Ogene to take over. 5

6 The Deliverables of the Missions in Economic Diplomacy In implementing the Strategy, Missions will perform the following broad components of Economic Diplomacy; Missions are expected to Undertake Market Analysis: study and understand the economic dynamics of their host country including having; insight into the principal elements of the local economy; analysis of the export and import basket of the country and its chief regions; the foreign investment profile; technology strengths; and the activities of competitors, actual and potential, gauged against Uganda s exports and other ongoing economic activities in that country. Production of Commercial Guiding Notes: Write and regularly update a commercial note or briefing guide on the host country and ensure that it is publicly available to stakeholders in Uganda. The Commercial Note is important to the stakeholders in the following ways; - It facilitates understanding of the basic economic profile of the host country, its principal indicators, the organization of her economy in terms of; tax, tariff and customs policy, the banking and related structures, system of business dispute settlement, the pattern of the business organizations, the principal import and export players, among others. - The note responds to general commercial inquiries especially by the Ugandan private sector. - The notes of various countries, make it is possible to do profile comparisons so as to determine niche export markets where Uganda has a competitive advantage. Undertake Outreach activities: This involves targeting economic partners, like the local enterprises engaged in bilateral trade and investments, or others that have a potential interest. Initiating, coordinating and receiving Business Delegations: Missions are expected to initiate, coordinate and receive business delegations from Uganda on a mission to promote trade, investments and all other forms of economic exchanges. Promotion of Multilateral, Regional and Bilateral Corporation Issues: Canvas for support from the host country, negotiate on behalf of Uganda Government in all of the Multilateral, Regional and Bilateral negotiations. 6

7 Coordinate Consultative Meetings. Missions should conduct regular consultative meetings with foreign ambassadors accredited to the host country with the aim of pursuing further economic interest of Uganda. Building of Uganda Country Image and Visibility: Missions must build positive country image for Uganda with a solo purpose of attracting inward and outward businesses, attracting tourists and technology transfer. Specific Sectoral roles of the Missions in Economic Diplomacy a.1.1 Trade Development a) Study the host country s market and carefully analyze competition potential on products of export interest to Uganda. Identify competitive advantages and disadvantages each particular product has in that market. The analysis should consider the lever of competition from suppliers, kinds of trade preferences in place and their targeted beneficiaries, existing non-tariff barriers to exports, aspects of rules of origin and SPS measures in place. The mission will ascertain whether these are responsible for less or higher competitiveness of Uganda s products in that market, or whether it is simply a supply side constraints issue. b) Guide host country companies in seeking information on exporting to Uganda. Emphasize should be put on the inputs and intermediate goods that are essential to Uganda s production needs. Use this activity of helping local exporters to access Ugandan market as a strategy of building connections outreach to the host country s private sector. c) With a mission of finding markets for Ugandan products, interact with the host country importers by attending trade shows and dialoguing with major players like department store chains and mail-order houses. Supply domestic export associations and exporters with market data and insights gained from broad contact with host country importers. d) Determine the potential for introduction of a new product currently not existing in the host country but is being produced in Uganda. Work with MTTI in creating awareness on the identified potential to the domestic producers and exporters and help them to gain entry into that market. e) Initiate and facilitate formal or informal mechanism for trade disputes Ugandan exporters my have encountered in the process of transacting with the host country importers. Provide informal mediation aimed at achieving reasonable settlement and maintain local credibility, while at the same time helping Ugandan enterprises. f) Initiate proposals for trade missions aimed at enabling Ugandan exporters pick up on the quality and attractiveness of the host market. Ensure coordinated 7

8 programs and accompany delegates to business sessions at local chambers and to different cities to maximize the impact. Organize Buyer Seller small business meetings at the mission and invite domestic exporters to participate g) On behalf of Uganda participate in the host country trade fairs, coordinate and provide Uganda based exporters and producers with guiding information to enable them effectively participate in such trade fairs. Information required will include key products for exhibition, scope of the exhibition in respect to the extent of international attracted exhibitors, costs related with exhibition, the rational for Uganda s participation and Sectoral areas targeted, rules and regulation relating to the fair, other non exhibition events taking place along with the fair, travel and accommodation information. h) Aid and encourage domestic enterprises to overcome the barriers of unfamiliarity and lack of knowledge of foreign markets. Ensure that all the necessary information in host country is posted on Mission s website. Operate a business center within the mission, which can be used by visiting commercial delegations and equip it with communication facilities like phone, fax and Internet connection. Ensure that the website includes a portal matchmaking services to buyers and sellers specializing on industry and product segments. a.1.2 Investment Promotion Uganda like any other developing countries is competing in the race for attracting FDI in order to increase capital inflows and create jobs at home. Missions are prime actors in the implementation of inward and outward foreign direct investment. They have a deeper knowledge of foreign countries, and intimate ground level contacts. As such investment promotion will be one of their special priority roles. Missions will; a) Cultivate targeted investors; identify decision makers within the foreign companies being pursued and hold frequent meetings with them, as a way of providing clarifications to their queries. b) Create a target list of potential investors targeting those sectors that are on the Uganda s investment priority list and ensure that it is a rolling program that will keep the Mission and related institutions at home focused on pursuing such investors in a planned manner. c) Where some of the companies being pursued already have existing investments in Uganda, try to get them to consider other avenues including consideration of joint ventures or technology collaborations. d) Profile success stories of Uganda s foreign direct investments in terms of the profitable joint ventures, the fruitful technology collaborations and use them to market the country to the targeted potential investors. Provide wide exposures to the potential investors, Using Uganda success case studies in promotional and publicity activities. 8

9 e) Apply the facet of integrated diplomacy; use all public platforms available for indirect economic promotion by blending into the message political, cultural and other activities of the mission. f) Establish at the embassy a line of communication that supplements coordination with home agencies in following up on investment applicants whose proposals are under examination In Uganda. Proactively reach out to the investor and offers to help in overcoming bottlenecks or clearance delays. g) Keep the domestic investment promotion agencies updated with information regarding identified potential investors, their queries and demands. a.1.3 Technology Transfer Promotion Missions should play a facilitator role in contributing to technology harvesting or transfer. In close collaboration with home enterprises, public or private institutions, the mission should seek technology needs that it can use to identify potential suppliers and engage them into discussions. The role of the missions in technological transfer will involve: a) Providing, leads and ideas to the Government for purposes of assisting in the evaluation of prospects for technology collaboration. The missions should work closely with Ugandan institutions in the business of technology development so as to gain insight into the technology requirements of the country. Missions will use this information to identify potential areas for technology collaboration in their host countries. b) Organizing platform where as a channel for initial prospection, Ugandan domestic agencies (such as industry associations) can articulate their technology needs to host country targeted players. c) Using the website as a channel for sensitization on opportunities for technological transfer and collaboration with organizations of the host country a.1.4 Tourism Promotion Tourism promotion is relevant to economic promotion because there is synergy between attracting tourist visitors and offering the country as a business destination. Missions will promote Uganda leveraging on her strategic geographic location, and its reputation as the Pearl of Africa or The country Gifted by Nature to attract visitors and to promote it as a unique business destination. In the Missions efforts to attract FDI, it is especially appropriate to blend promotion of tourism and business. Good tourism experiences by visitors, and the human contacts established, easily translate into good country images. a.1.5 Trade and investment Aid Diplomacy Missions will keep an eye on the flow of trade and investment related aid volumes from their host country to Uganda. The mission should concern itself with overall conditions that govern that aid, the level of conditionalities attached, (strings that 9

10 cover utilization, the social and economic conditions of usage, the target domestic recipient groups, and even policy conditions.) Missions will regularly engage specialists from the domestic aid management agency and play an oversight responsibility, to keep good working relationship with the aid administration agency of the donor country. In close working relationship with the home aid agencies, the missions should advise the donor specialists on aid issues that are of interest to Uganda. a.1.6 Promotion of the Cooperative Movement Missions will facilitate the promotion of Ugandan cooperative movements within their host countries so as to provide an important contribution towards the development needs the community especially the small and medium entrepreneurs. Missions will perform they following roles in the promotion of cooperatives under economic diplomacy 1. Study the cooperative movements in the host country and communicate back on aspects relating to; the structures of cooperatives in the intermediary organizations (unions, federations and confederations) and how efficiently they are serving the interests of their members; 2. Use the experience gained from cooperative movement of the host country to recommend the cooperative education, training and human resources needed for the development Cooperatives in Uganda 3. Facilitate the access of the cooperatives advanced technologies and necessary related knowledge for the promotion of the good practices in cooperative management and competitiveness in the national and international markets. 4. Initiate proposals for missions aimed at enabling Ugandan co-operators establish areas of cooperation and to pick up on the best practices that are being implemented by the cooperatives in the host country. Receive Uganda delegations, ensure coordinated programs and accompany delegates to business sessions at local cooperative centres to maximize the impact. a.1.7 Promotion of Multilateral, Regional and bilateral Diplomacy The expansion of international trade is critical to the economic growth and strength of the Uganda. In the globalized world, expanding into the global market requires an effective level of international policy influence through trade agreements. Through trade agreements Uganda will foster opening of intentional markets, attraction of 10

11 investments and tourists. Missions will be responsible for effectively representing and promoting through negotiations, Uganda s interest in exports market access, investments with a purpose of influencing other countries foreign policies. Uganda Missions will lookout, or participate in and shape the activities and issues of the Multilateral, bilateral and regional process by negotiating to: a) Obtain more open, equitable, and reciprocal market access and elimination of unjustified technical barriers to trade; and restrictive rules of origin; b) Obtain the reduction or elimination of barriers and distortions that are directly related to trade and that decrease market opportunities for Uganda s exports or distorts her trade; c) Strengthen the system of international trading disciplines and procedures, including dispute settlement; d) Ensure that trade and environmental policies are mutually supportive and seek to protect and preserve the environment and enhance the international means of doing so, while optimizing the use of the world s resources; e) Ensure that trade agreements afford small businesses equal access to international markets, equitable trade benefits, and expanded export market opportunities, and provide for the reduction or elimination of trade barriers that disproportionately impact small businesses; and f) Ensure reduction or elimination of artificial or trade-distorting barriers to foreign investment, while ensuring that foreign investors in Uganda are not accorded greater rights with respect to investment protections than Ugandan domestic investors. g) Provide meaningful procedures for resolving investment disputes. Seek to improve mechanisms used to resolve disputes between investors and Government. Ensure the fullest measure of transparency in the dispute settlement mechanism. h) Promote adequate and effective protection of intellectual property rights; ensure that proposed regulations are based on sound science, cost-benefit analysis, risk assessment, or other objective evidence. i) Establish consultative mechanisms among parties to trade agreements aimed at promoting transparency in developing guidelines, rules, regulations, and laws governing procurement and other regulatory regimes; j) Ensure that electronically delivered goods and services receive no less favorable treatment under trade rules and commitments than like products delivered in physical form; and ensure that governments refrain from implementing traderelated measures that impede electronic commerce; 11

12 k) Obtain competitive opportunities for Uganda exports of agricultural commodities in foreign markets substantially equivalent to the competitive opportunities afforded foreign exports in Ugandan market and achieve fairer and more open conditions of trade in bulk, specialty crop, and value-added commodities. Provide for reasonable adjustment periods for Ugandan import-sensitive products, Ensure reduction of tariffs to levels favorable to Uganda s exports, Ensure reduction or elimination of subsidies that decrease market opportunities for Ugandan exports, a.1.8 Promotion of Economic activities using the World Wide Web A good quality embassy website that serves the direct goals of economic promotion is indispensable. Those undertaking a green-field search frequently look at diplomatic mission websites. Providing user-friendly formats, with a wider range of information, hyperlinks to other official and institutional promotional sites, and constant updating are among the elements that have to be addressed. No less important is a feedback function. One also needs to monitor the way the major search engines evaluate one s website, and to engage in dialogue that ensures good attention for the website. Website security is another preoccupation, since embassy (and other official) sites are targets of choice for hackers and for others intent on political or other forms of protest. The Internet offers potential for experimentation and innovation vis-à-vis economic promotion and since this is uncharted territory and one has to accumulate one s own experience for optimal result. Benchmarking and learning via best practices is a good method, looking to home agencies and to international experience as well. 12