MP urges South Sudan to ratify EAC free trade treaty

Author: Koang Pal | Published: Thursday, November 23, 2023

Nimule bridge, a short distance from Ugandan border side post, Elegu - Courtesy

A lawmaker representing South Sudan at the East African Legislative Assembly has called on the government to ratify the Customs Union protocol as President Salva Kiir takes over the chairmanship of the bloc.

Speaking to Eye Radio in Arusha on Wednesday, EALA lawmaker Kim Gai said ratifying the protocol will ease trade for South Sudanese traders in the region.

“We urged the Minister of Trade to ratify customs union protocol because we are in an economic bloc,” Gaid said.

“We have a good number of young people who are exporting fish from South Sudan to Uganda and then to DR Congo. This is because we don’t have good roads between South Sudan and DR Congo which is the reason why we are using Nimule-Elegu tone stop border post.”

According to Gai, South Sudan traders exporting dry fish to the Democratic Republic of Congo through Uganda are heavily taxed at Uganda’s Elegu border crossing point.

He said Uganda is charging up to 5,000 US dollars for any ton of fish entering Uganda.

“They have to pass via Uganda and then again to DR Congo, but this is a challenge because they are paying $5,000 US dollars.”

” If you look at the value of $5,000 US dollars, they can get 4 to 5 tons extra from that amount they are paying as tax, if it has been waived.”

Gai said this is happening because South Sudan has not ratified the Customs Union Protocol.

The lawmaker added that once the government ratifies the protocol, the cost of exporting fish to Uganda will cheapen.

Hon Kim also called on the government to legislate a value-added tax bill to generate more money from goods entering South Sudan.

The Customs Union is the first Regional Integration milestone and critical foundation of the East African Community (EAC), which has been in force since 2005, as defined in Article 75 of the Treaty for the Establishment of the East African Community.

It means that the EAC Partner States have agreed to establish free trade (or zero duty imposed) on goods and services amongst themselves and agreed on a common external tariff (CET), whereby imports from countries outside the EAC zone are subjected to the same tariff when sold to any EAC Partner State.

Goods moving freely within the EAC must comply with the EAC Rules of Origin and with certain provisions of the Protocol for the Establishment of the East African Community Customs Union.

 

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