Uganda will this week, assume the chair of the Common Market for Eastern and Southern Africa (COMESA), a development that trade experts believe will bring huge benefits to the country.
Despite being a COMESA member, Uganda will for the first time also enter the free trade area (FTA) regime of the regional trade bloc.
Joining the FTA means the tariff charges on the majority of imports and exports between Uganda and other COMESA states will drop to 2% from 10% compared to what is levied on goods from states like China except for sensitive goods.
President Yoweri Museveni is expected to chair the 19-member trade bloc for the next one year.
As the chair, the country will also have the opportunity to influence discussions and decisions especially on trade related matters.
Uganda’s Trade minister Amelia Kyambadde on Tuesday said one of the biggest opportunities from COMESA is the raising of the tax threshold to $2,000 for cross-border trade.
This means small traders and businesses operating in the bloc can carry goods worth up to $2,000 tax free across the borders.
COMESA secretariat has also set up business support centers for documentation for registered small traders.
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