East African Community to Review Rwanda, Uganda 75% Import Fees on
Tanzania Rice
May 23, 2014
The East African Community (EAC) is probing into Rwanda and Uganda's
decision to continue to impose 75% import fees on Tanzania rice in
2014, which is in contravention of EAC Customs Union Protocol,
according to local sources.
According to EAC regulations, rice originating from Tanzania should
not attract import duty in both Rwanda and Uganda. However, both the
East African nations were exempted from adhering to zero-percent
import duty on Tanzania rice in 2013 to protect their local markets.
Tanzanian rice exporters are urging EAC Secretariat to resolve the
issue at the earliest as local rice producers in Tanzania are
oversupplied with bumper harvests and imports, and the local market is
saturated. The prices also fell by more than half, they say. Producers
are keen on exporting rice to Rwanda and Uganda, which are its
traditional rice destinations. Tanzania's Agriculture, Food Security
and Cooperatives Minister suspended imports in March 2013 to contain
supplies in the market. But he again allowed imports this year as many
producers were accused of hoarding rice stocks leading to surge in
prices and inflation.
The EAC Secretariat said it was negotiating over the issue with both
Rwanda and Uganda. It however, did not specify the details of the
status of negotiations.
Both Rwanda and Uganda are net importers of rice. According to USDA,
Rwanda is expected to produce 58,000 tons rice and import 40,000 tons
rice in MY 2013-14 (May 2013 - April 2014); and Uganda is expected to
produce 147,000 tons and import 120,000 tons rice in MY 2013-14.
http://www.google.ca/gwt/x?gl=CA&hl=en-CA&u=http://oryza.com/news/rice-news/east-african-community-review-rwanda-uganda-75-import-fees-tanzania-rice&source=s&q=East+African+Community+to+Review+Rwanda,+Uganda+75%25+Import+Fees+on+Tanzania+Rice
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SIBOMANA Jean Bosco
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