MAAIF PRESENTATIONMAAIF PRESENTATION

DURING THE NATIONAL INCEPTION MEETING ON DURING THE NATIONAL INCEPTION MEETING ON FOSTERING EQUITY AND ACCOUNTABILITY IN THE TRADE FOSTERING EQUITY AND ACCOUNTABILITY IN THE TRADE

SYSTEM (FEATS) PROJECT.SYSTEM (FEATS) PROJECT.

15TH OCTOBER 200815TH OCTOBER 2008Hotel AfricanaHotel Africana

Kampala - UgandaKampala - Uganda

THE ROLE OF THE MINISTRY OF THE ROLE OF THE MINISTRY OF AGRICULTURE, ANIMAL INDUSTRY AGRICULTURE, ANIMAL INDUSTRY

& FISHERIES IN THE TRADE POLICY & FISHERIES IN THE TRADE POLICY MAKING PROCESSMAKING PROCESS

BYBY

CONNIE ACAYOCONNIE ACAYO

PRICIPAL INFORMATION SCIENTIST/MAAIFPRICIPAL INFORMATION SCIENTIST/MAAIF

The Ministry of Agriculture, Animal The Ministry of Agriculture, Animal Industry and FisheriesIndustry and Fisheries

• Vision:– to support the national development goal of poverty

eradication, by providing an enabling environment in which a profitable, competitive, dynamic and sustainable agricultural and agro-industrial sector, can develop;

• Mandate:– to support, promote and guide the production of

crops; livestock and fish, in order to ensure improved quality and increased quantity of agricultural produce and products for local consumption, food security and export

The MAAIFThe MAAIF

• Mission:– to support national efforts to transform subsistence

agriculture to commercial production in crops, fisheries and livestock, by ensuring that the agricultural sector institutions provide efficient and effective demand-driven services to the farming community.

The objectivesThe objectives• The Sector in the context of PMA includes:

– increase incomes and improve the quality of life of poor subsistence farmers through increased productivity and value addition, and an increased share of marketed production;

– improve household food security through the market rather than emphasizing self-sufficiency;

– provide gainful employment through secondary benefits arising from the implementation of the PMA, such as agro-processing and the provision of services to both forward and backward linkage industries;

– promote the sustainable use and management of natural resources by developing land-use and management policies and systems, and by promoting environmentally-friendly technologies.

MAAIF has other specific MAAIF has other specific objectivesobjectives

• generating and disseminating market responsive, client oriented and demand driven national agricultural research system, comprising public and private institutions working in tandem for the sustainable economic growth of Uganda;

• providing a decentralized, farmer-driven, private sector serviced, agricultural advisory service;

• promoting the utilization of water for increased and sustainable commercial agricultural production;

other specific objectivesother specific objectives

• establishing sustainable agricultural sector development institutions, working in partnership with a decentralized and liberalized framework; developing supportive policies and regulations, set standards and provide enforcement mechanisms for the proper functioning of the agricultural and agro-industrial sectors;

• ensuring poverty focus prioritisation and effective performance of public agricultural development programmes through strategic planning, capacity building, monitoring and well functioning inspection services;

Other specific objectivesOther specific objectives

• put in place viable sustainable measures and mechanisms for epidemic disease and pest control;

• promote profitable and sustainable agro-forestry, integrated in the agriculturaland non-agricultural sectors;

• promoting environmentally-sustainable agricultural practices; supporting the development and establishment of a decentralised, flexible market information system bringing on board all the main stakeholders;

• providing appropriate infrastructure to facilitate developments in the sector;

• to support the production and addition of value to strategic agricultural commodities, so as to enhance earnings and employment.

Uganda’s agricultureUganda’s agriculture• Dominated by subsistence farmers and food crops

which provides the bulk of the raw materials for the largely agri-based industrial sector. – Coffee still dominates agriculture; it affects the livelihood of a

huge portion of the population, – Cotton is the next most important cash crop and offers

significant potential. – The third significant export is fish and fish products.– However, the recent growth in exports of fruit, vegetables

and flowers is attributable to agricultural reforms, which includes diversification of agricultural exports toward non-traditional crops.

The Trade Policy Making The Trade Policy Making ProcessProcess

• While MTTI is responsible for trade policy formulation and implementation, MAAIF on the other side has to ensure the support, promotion and guidance of the production of crops; livestock and fish, in order to ensure improved quality and increased quantity of agricultural produce and products for local consumption, food security and export.

Agriculture & TradeAgriculture & Trade• Employs about 80% of the population, • Accounts for almost 40% of GDP • Generates about ½ of the gross national

product• Its value of exports is over 75% • Trade is mainly on agricultural produced:

– traditional export crops (coffee, cotton, tea, tobacco) contributed about 40% of the country’s total merchandise exports

– non-traditional crops (fish and cut flowers) about 21% .

Trade formulation & MAAIFTrade formulation & MAAIFTo what extent has MAAIF been consulted?

– One staff member (Assistant Commissioner from Planning Department) sitting in the Institutional Committee of trade,

– Previously there used to be three (commissioner Fisheries, commissioner Agricultural Planning and Assistant Commissioner Agro-processing also from planning department)

– Other members are from related institutions and ministries, like Finance and private sector

The consultation is majorly done before and during the policy making process.

The policy drafts are then circulated to the different ministries and institutions for further comments (National Trade Policy being worked on).

Trade formulation & MAAIFTrade formulation & MAAIF• Other Ministries, particularly Finance and Agriculture

are directly involved both in formulation and implementation of trade policy.

• The Presidential Economic Policy Forum, together with other public institutions, carry out periodic reviews and assessments of trade-related policies within the Government institutions.

• Session committees of the Parliament also review policies

• there is supposed to be opportunities for periodic inputs from the private sector ( I hope this is really the case).

Trade formulation & MAAIFTrade formulation & MAAIF

• Support by the Presidency also plays a vital role in policy-making; as a result some policies have been enacted by the Presidential fiat.

• Sometimes lobbying for policies and changes in the policy making process especially in areas of VAT

Trade formulation & MAAIFTrade formulation & MAAIF

• The government has therefore put in place the Investment Authority (UIA) which is intended to promote and facilitate investment in the country:– To improve liberalization of the economy. – To attract more foreign investors.

Trade formulation & MAAIFTrade formulation & MAAIF• Uganda is an original Member of the WTO, and grants

at least MFN treatment to all its trading partners. • Uganda is not a signatory of any of the plurilateral

trade agreements. • Uganda has benefited from regular WTO technical

assistance, under the Joint Integrated Technical Assistance Programme and the Integrated Framework.

• Several meetings have taken place with donors since 1996 to assess Uganda's trade-related technical assistance needs, which can be classified into two categories: – adoption of laws and regulations relating to the WTO and

regional trade agreements; and– the needs relating to supply-side constraints.

TRADE POLICIES IN UGANDATRADE POLICIES IN UGANDA

• Trade policies in Uganda is aimed at promoting economic growth and development through diversification of the export sector, attracting investment, improving productivity, enhancing export and local trade and is designed within the context of the overall national economic policy objective.

• TP formulation is achieved through a consultative process between Government and the private sector.

• The lead agency for the formulation is the Ministry mandated, that is, the Ministry of Trade, Tourism and Industry (MTTI).

• The implementation of trade policy is however the preserve of public bodies depending on the nature of the measure or policy to be implemented.

Ministry of Trade, Tourism and Ministry of Trade, Tourism and IndustryIndustry

• The Ministry of Trade, Tourism and Industry is mandated to handle Trade issues through the development, promotion and facilitation of both the internal and external trade with particular emphasis on export promotion and diversification.

Involvement of MAAIF in developing Involvement of MAAIF in developing position for WTO & EPA position for WTO & EPA

NegotiationsNegotiations• Ministerial level: inter-ministerial committees of all WTO

member countries

• Technical level: Planning department

• Ongoing EPA (a workshop on awareness creation of stakeholders about issues related to both EPAs and the WTO

was held in Jinja) – MAAIF has been contacted and a committee is

been instituted to put in place design the ToR (Policy, Crop, L/stock). Details yet to be discussed.

MAAIF’s Comments & views on MAAIF’s Comments & views on Trade PolicyTrade Policy

• Not for to MTTI,

• In-cooperated within the related policies of the ministry such as:– Fish, Coffee, Cotton, Seed and L/stock related

• Agricultural policies are geared towards agricultural production and Marketing which to some extent includes trade

ChallengesChallenges

• Uganda is slowly mainstreaming trade into its development framework.

• However, its various institutions dealing with trade policy, including the MTTI, do not have sufficient capacity to manage trade arrangements effectively and to fully implement the necessary reforms.

• At the same time, at least partially due to the Government's fragmented institutional structure dealing with trade matters, coordination among development partners is less than ideal.

ChallengesChallenges• The MAAIF has only one person sitting in the

committee of trade, when it contributes biggest to trade produce. This the ministry feels there is need to change, at least to include a representative from each agricultural sub-sector; crop, livestock and fish, as well as from planning and Policy departments. These issues have now come up as I have been made to understand.

• Representation of one or three persons in the committee is not enough, the MAAIF also need to get more involve by strongly involving its TPM members in detail trade discussions.

ChallengesChallenges• The Uganda Manufacturing Association is a distant

third. Individual and state firms as well as Trade unions have little input in trade policy making process

• However, at the level of implementation, the direst problem is corruption followed by lack of resources, poor incentives, overlapping responsibilities of ministries non-commitment of the bureaucracy, frustration of implementation by disgruntled interest groups, and lack of staff training.

• Policy-makers recognize that the private sector has a vital role to play in the policy-making process provided that its potential is enhanced through training and practical experience.