Chamber Urges Trade Ties With East African Community

Indian corporates and trading houses should focus on expanding economic relations with the East African community (EAC) countries of Kenya, Tanzania and Uganda, the PHD Chamber of Commerce and Industry (PHDCCI) has said.

These countries are a gateway to another 20 nations with a population of 300 million and the European Union because each enjoys preferential access as a signatory to the Lome Convention, according to the paper to be discussed today at a round table on emerging business opportunities in Kenya, Tanzania and Uganda.

Bilateral trade with Kenya during 1995-96 was a meager Rs 865 crore, with Tanzania Rs 591 crore and with Uganda Rs 126 crore. This underlines the massive potential to strengthen south-south economic cooperaton, a chamber release said yesterday.

 

The background paper has referred to the potential of joint venture and technology transfer from India in textiles, cement, paper pulp, sugar, jute, drugs, petro-chemicals, light engineering, electronics, food processing and tourism. Indias expertise in small and medium industry can play a major role in development of these three countries.

Further the chamber note has identified export of engineering goods, textiles, drugs and pharmaceuticals, computer software and hardware, bicycles, automobile components, machine tools and proce- ssed foods as potential products.

On the other hand potential items of import include wood pulp, mineral and mineral products, plastic materials and artificial resins, chemicals, asbestos, newsprint, rough diamonds and other precious stones.

The strategy for strengthening economic relations would be discussed by the chamber members with the ambassadors of Kenya, Tanzania and Uganda who will be participating in the round table.

The steps for enhancing trade and business relations, according to the chamber, include identification of products base on comparative cost advantage, encouraging counter trade, undertaking joint marketing, setting up joint ventures to harness natural resources, create joint research and development institutions and encouraging human resource development.

The paper laments the dependence on foreign capital and assistance to the developing countries which in the emerging post Cold War era should be replaced by south-south economic cooperation.

The emergence of industrial capacities and capabilities in India to manufacture intermediate capital goods, machinery and technology tailored for labour surplus and capital deficient economies of each have been termed as potential basis for expanding economic relations in the coming years.