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Brexit has made UK market difficult to access - Exporters
Traders pack foods for exportation. PHOTO/FILE.
What you need to know:
- Other markets: According to Mr Kanjigye, Fresh exporters, expecially those involved in fresh fruits and vegetables are now exploring other markets in the Middle East, US, Canada.
Ugandan exporters have said they are encountering difficulties in accessing the UK market, which has seen exports to one of Uganda’s biggest export destinations in Europe drop by almost 90 per cent.
The sharp decline comes as UK completes the exit from European Union Brexit - which, according to exporters, now presents them with the challenge of dealing with the country as a single market away from the EU bloc.
Ugandan exporters had been trading their goods in the UK through a single EU entry in Belgium but now that Britain is out of the bloc they are finding difficulties in dealing with it as an individual market.
Mr James Kanjigye, the chief executive officer of KK Fresh Fruits and Vegetables, one of the companies that exports to UK and EU, said at the weekend that whereas their goods have been reaching Europe, entering UK, which had been one of Uganda’s biggest market destination in the EU, has become difficult.
“Our experience entering UK from other EU countries has been cumbersome. At border [points] there are no testing facilities and documentation. Because of this we are losing a lot of produce [destined for] UK,” he said, noting before Brexit, they had been using Belgium as the entry to Europe from where goods are supplied to other countries in the bloc through Metros (trains).
In 2016, UK voted in a referendum to leave EU and officially left the trading bloc yesterday, which has negatively impacted trading partners in Africa, including Uganda.
UK has been the biggest market destination for Uganda’s fresh foods (fruits and vegetables) in the EU.
Data from Asia Express Foods BV, which is the largest importer of fresh foods into the EU, indicates that they have been receiving less than expected supplies from Uganda with the most affected exports being fresh foods such as matooke, sweet potatoes, okra, chili pepper, garden eggs and avocados.
Mr Kanjigye also said it had become cumbersome to clear exports into UK since December, which has forced volumes to sharply reduce by more than 90 per cent, noting that handling fees have since doubled from thirty cents of the dollar to 62 cents for every cleared kilogramme.
The lockdowns in UK and the EU have also presented challenges, among which include difficulty in movement and demand, among others.
“Currently it takes two days, to shift cargo into London, and they take two days in Istanbul waiting for a connection due to limited space,” he said.
At the weekend, Mr John Bosco Lwere, the Uganda Export Promotion Board trade and information executive, said government was still studying the new market changes in UK to come up with a better way of assisting exporters.
“We have not done much because there have been a lot of disruptions in the country. But we had planned a study in Britain to understand the market dynamics but international travel cuts affected the arrangements,” he said, adding government was now looking at sector-by- sector to understand what has changed.
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