Policy-induced barriers to trade (e.g. tariffs, control of commodity and foreign exchange markets, quantitative trade restrictions, etc.), which have substantially reduced in case of Uganda, are but one of many constraining factors to the country's export and import trade. The current analysis intends to look at the relative effects of trade policy reforms (e.g. reduction in tariffs) and non-policy barriers (e.g. transport costs) on the Ugandan trade sector.
Following an introduction, the paper is organized as follows. Section 2 gives an overview of dynamics in the Uganda's trade structure over the last decade. Section 3 spells out the analytical framework while sections 4 and 5 provide and discuss effective rate of protection (ERP) estimates relating to tariffs and transport costs respectively. Transport costs and export competitiveness is provided in Section 6. Policy implications and concluding remarks are provided in Sections 7 and 8 respectively.
Tariff and overland transport barriers to Uganda’s Trade, Economic Policy Research Centre (EPRC), Kampala, Uganda, i + 39 pp.