• NTS and SPS

NTS and Sanitary and Phytosanitary Measures

This paper undertakes a situational analysis of Uganda’s capacity to comply with food safety requirements in export markets, and quantifies cost estimates of capacity gaps. Tariff-related barriers to trade have reduced significantly over the last two decades but Uganda’s exports are still faced with inadequate capacity to reduce transaction costs relating to storage facilities, post-harvest losses, transport and ensuring health and food safety concerns. To improve Uganda’s food safety control system, capacity upgrading in the relevant institutions is critical.

Compliance with sanitary and phytosanitary (SPS) measures in export markets imposes costs both on public institutions and the private sector. Collective costs comprise costs relating to legislation development, training and awareness raising, infrastructure development and equipment upgrading, inspection, testing, and other monitoring and control mechanisms. Firm-level compliance costs comprise costs incurred by producers and exporters in ensuring quality systems including costs relating to necessary changes in producing systems, infrastructure building and upgrading, training, consultancy services and certification costs, etc.

The benefits of investment in upgrading the capacity of addressing some market entry constraints however far exceed the costs of such investments. It is therefore recommended that both the public and the private sector put more resources in upgrading the food safety systems if market access opportunities are to be fully exploited.

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