Non-tariff barriers to trade (NTBs) are restrictions placed on imports that don’t take the form of a tariff. In most cases they are frowned upon by the international community as a means of evading the free trade rules laid down by the World Trade Organization (WTO). An NTB may take the form of an import quota, special license application process, customs delays, technical barriers to trade, export subsidies – anything that could hamper the free exchange of good and services between countries.
Anyone with a cursory understanding of geo-politics will not be surprised to learn that Uganda is a repeat offender when it comes to flouting international etiquette and adopting an isolationist stance towards diplomatic relations. The country has recorded the highest number of NTBs in East Africa, according to an East African Community (EAC) report on the attempt to eliminate such practices.
Last year, Uganda imposed a requirement on cigarette imports from Kenya, demanding they include at least 70% locally-grown tobacco content. This requirement runs counter to freedoms guaranteed under the Common Market Protocol. Since 1997, the country has similarly restricted beef products from Kenya. NTBs have been blamed for a stagnant market in East Africa, where intra-EAC trade has remained below 13% for three years.
To tackle the problem, the troubled country has turned to text message technology more commonly used by businesses in the USA as a mobile marketing tool. The information exchange system – set up at a cost of $100,000 – aims to provide a comprehensive record of NTBs to help Uganda move towards eliminating them.
Prior to the SMS messaging solution being implemented, Uganda ran an antiquated hard copy, pen and paper system that frequently hobbled or disappeared cases through bureaucracy and corruption. According to the country’s lead adviser on the issue, NTBs that were dealt with took between one and three months to get anywhere.
With SMS, messages about NTBs will reach the national response team immediately. Anyone experiencing a suspected barrier sends an SMS to code 201. The message – which costs around 6 cents – will go to the ministries of Trade and East African Community Affairs, who in turn will pressure the government department responsible for introducing the NTB to remove it.
The move arrives not a moment too soon for Uganda’s economy, which should – according to the EAC – be benefitting from regional trade to the tune of 25% of total trade volumes. Even that figure puts East Africa significantly below other trading blocs like the European Union, whose internal trade accounts for 55% of the total.
It’s another fascinating, unexpected application of SMS messaging, one designed to help some of the world’s poorest people level the economic playing field.
Comments