The effect of nontariff barriers on exports: A Case of Uganda’s grain exports to the East African Community

Abstract

The major objective of this study was to find out the effect of nontariff barriers on Uganda’s grain exports to East African Community. The specific objectives are; to establish the effect of customs and administrative procedures on Uganda’s grain exports, to find out the effect of standard (e.g. SPS and TBT) on Uganda’s grain exports and to assess the effect of immigration procedures on Uganda’s grain exports to the East African Community. A survey design was used to conduct the study with a sample size of 107 respondents. Various data collection instruments were used in this study and these include; questionnaires and interview guide. The study findings revealed that there is a correlation between customs and administrative procedures and exports with a positive and significant relationship (r = 0.212, p 0.05). The findings revealed that there is a correlation between standards requirements and exports with a positive and significant relationship (r = 0.216, p 0.01). The findings, further, revealed that there is a correlation between immigration procedures and exports with a positive and significant relationship (r = 0.917, p 0.01). From the study it can be said that non tariff barriers strongly affect the Uganda’s exports to other Partner States. The researcher therefore recommends that government agencies in EAC should streamline administrative procedures at border points to improve efficiency by harmonizing trade regulations. This will minimize time loss and the increased cost of doing business in export trade. Efficient monitoring systems should be designed and implemented to provide feedback to the relevant authorities on the implementation of measures to remove unnecessary barriers to trade in the region. EAC Partners States should institute a binding Dispute Settlement Mechanism for NTBs related cases. This will help to bring offenders to account, compensate exporters who incur NTBs related losses through appropriate damages awarded by courts and prevent repeat offenders.