Museveni warns against trade barriers

Nov 30, 2024 - 16:09
 0
Museveni warns against trade barriers
Museveni warns against trade barriers at EAC Summit.Photos/Courtesy.

By Robert Mutasi 

Ugandan President Yoweri Museveni warned against trade embargoes in the East African Community, saying they may have some temporary gains but could culminate into long-term economic problems for economies in the region.

Museveni said so during his remarks at the 24th East African Community Ordinary Summit of Heads of State in Arusha, Tanzania.

His remarks also highlighted the situation regarding trade embargos and regional and agricultural growth.

He indicated that although countries may temporarily limit the importation of some products to save their local industries, it always leads to other worse situations.

"You hear people say that country X has a bumper harvest this year and will therefore not allow products from other countries to enter that market," noted Museveni. "What then happens is that producers of that product migrate to other enterprises and forget about the banned product. Two years down the line, you hear that there is a shortage of the same product in country X and that they now want to import the product."

Museveni said that by the time countries revisit their import bans, the production capacities for such blocked goods may be long gone.

"Unfortunately, you find that by that time the product is no longer being produced in the country that was blocked," he explained.

This shift in production priorities can cause gaps in supply that will be hard to fill if the market reopens to imports.

For instance, he cited Uganda's attitude to trade in the EAC. Although Uganda produces a lot of maize and milk products, the country has never banned imports of such products from other East African countries.

"Even though Uganda is producing a lot of maize, we have never banned maize products from other East African countries," Museveni said. "We have a lot of milk products, however, we have never banned milk products from other countries."

The remarks by the Ugandan president also struck a chord with the broader objectives of the EAC, aimed at increasing intra-regional trade and cooperation.

The EAC, comprising countries such as Kenya, Tanzania, Uganda, Rwanda, Burundi, and South Sudan, has been working toward eliminating trade barriers to foster a more integrated and sustainable economic bloc.

Museveni’s warning about the risks of short-term protectionism reflects his broader vision for regional stability and prosperity.

He emphasized that sustainable growth in East Africa requires collaboration, not isolation, with all member states benefiting from open markets and shared resources.

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