Country Information - Uganda

ECONOMIC BACKGROUND Uganda has substantial natural resources, including fertile soils, regular rainfall, and sizable mineral deposits of copper and cobalt. Agriculture is the most important sector of the economy, employing over 80% of the work force. Coffee is the major export crop and accounts for the bulk of export revenues. Since 1986, the government - with the support of foreign countries and international agencies - has acted to rehabilitate and stabilize the economy by undertaking currency reform, raising producer prices on export crops, increasing prices of petroleum products, and improving civil service wages. The policy changes are especially aimed at dampening inflation and boosting production and export earnings. During 1990-2001, the economy turned in a solid performance based on continued investment in the rehabilitation of infrastructure, improved incentives for production and exports, reduced inflation, gradually improved domestic security, and the return of exiled Indian-Ugandan entrepreneurs. Ongoing Ugandan involvement in the war in the Democratic Republic of the Congo, corruption within the government, and slippage in the government's determination to press reforms raise doubts about the continuation of strong growth. In 2000, Uganda qualified for enhanced Highly Indebted Poor Countries (HIPC) debt relief worth $1.3 billion and Paris Club debt relief worth $145 million. These amounts combined with the original HIPC debt relief added up to about $2 billion. Growth for 2001 was held back because of a continued decline in the price of coffee, Uganda's principal export. (Source: World Factbook, 2002) Click here for Country Map [23kB]

BI-LATERAL TRADE OVERVIEW The total value of bi-lateral trade flows between Uganda and the United States was valued at close to $ 40 million in 2002, down from approximately $ 50 million in the previous year. Uganda recorded a trade deficit of $ 7,7 million with the U.S. in 2002 (2001: $ 14 million). The vast majority of Uganda's exports to the U.S. consist of 'agricultural products', while imports into the country from the U.S. are made up of a wider range of product categories. These include mainly 'electronic products', 'agricultural products' and 'chemicals and related products' (see link to Country Trade Profile below). Although Uganda qualified for the 'Wearing Apparel' provisions on October 23, 2001, by year-end 2002 it had not yet exported any goods under this rule. Total AGOA-eligible exports were still insignificant as of full year 2002 trade data. For AGOA purposes, Uganda is classified as a 'Lesser Developed Country', providing it with a limited opportunity of utilising non-qualifying third country textile inputs in the manufacture of AGOA-eligible apparel exports (until September 30, 2004). Click here for Detailed Trade Profile