TRADE POLICY REVIEW:

Concluding remarks by the Chairperson


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Trade Policy Review: Cameroon, Congo, Gabon, Central African Republic and Chad
  

This first joint Trade Policy Review of the Central African Economic and Monetary Community (CEMAC) countries, Members of the WTO, has provided the opportunity to better understand their trade and trade-related policies and practices. I would like to thank the delegations of the countries under review, headed by: H.E. Mr. Luc Magloire MBARGA ATANGANA, Minister of Trade (Cameroon), H.E. Mr. Amalas Amlas HAROUN, Minister of Trade and Industry (Central African Republic), H.E. Mr. Hamid Mahamat Dahalob, Minister of Trade and Industry (Chad), H.E. Mrs. Claudine MUNARI, Minister of Trade (Congo), and H.E. Mr. Fidèle MENGUE ME ENGOUANG, Minister of Trade (Gabon); for their participation in this meeting and the remarkable engagement throughout this Trade Policy Review process. Let me also extend our gratitude to the rest of the delegations from the capitals and colleagues from the Missions in Geneva. I would also like to thank H.E Mr. Alberto Pedro D'Alotto, for his insightful intervention as discussant.

Members emphazised that the CEMAC countries have enormous potential. They all have large natural resources that, except for oil, remain mostly untapped. Diversification must, therefore, be a priority, as also recognized by the countries under review, so as to improve human development, growth, poverty alleviation, reduce vulnerability to external shocks, enhance food security, etc. In this light, CEMAC countries were encouraged to fully implement existing reform programmes, to improve infrastructure as well as to undertake new reforms aimed at, inter alia, facilitating trade, cutting red tape and improving their business environment. Combined with their WTO commitments to ensure the predictability, the transparency and the credibility of their trade regimes, such reforms should enhance the productive capacity of their economies, and contribute to attracting much needed FDIs in order to diversify their economies away from primary products.

Members noted that regional integration, through CEMAC, can serve as an important stepping stone to more effective integration of these countries into global trade. Within the Community, many achievements also have been made, for example resulting in relatively low inflation rates during the period of review, and the regional efforts are laudable. Members specifically commended the countries under review for setting the ambitious aim of making CEMAC, by 2025, an emerging integrated economic area through the adoption of the Regional Economic Programme (REP) in 2010. To achieve this aim, Members concurred with the statement by the countries under review that CEMAC must undergo a profound transformation and expressed support for CEMAC’s pursuit of this target. On the other hand, Members also noted that, in addition to CEMAC, the five countries also participate in the Economic Community of Central African States (CEEAC). Similarly, the integration process is yet to start under this project, while the member countries of CEMAC are slow in implementing harmonized regimes, and in some cases, waive their regional commitments. Many WTO members expressed concerns about the resulting low levels of intra-regional trade and encouraged the countries under review to ensure greater coherence in their policies, and more stringent implementation of the regional measures.

Members welcomed the five countries’ strong commitment to the multilateral trading system and to the conclusion of the Doha Development Agenda. Some Members stressed the constructive role of CEMAC countries in the on-going trade facilitation negotiations. Recognizing that some CEMAC countries are also producers of cotton, a few Members recalled the priority to secure fair world market conditions for this product and to assist the cotton-producers to better capitalize on their legitimate comparative advantages in this sector. Similarly, some Members emphasized that two countries of CEMAC were LDCs, thereby standing to gain from any specific progress made in the WTO on the LDC priority issues. It was also noted that one country of CEMAC was still in the process of acceding to the WTO and willingness to support that country in the accession process was expressed. More generally, many Members highlighted the importance of Aid for Trade for CEMAC countries, including the assistance offered under the Enhanced Integrated Framework in favour of LDCs in the region. This being said, Members also recalled the need for all of CEMAC countries to fully meet their WTO notification requirements, as well as other WTO obligations.

Other more specific issues of interest raised by Members in their statements and questions include the following, and we also take due note of the very useful and comprehensive statements made by the Ministers of the CEMAC countries under review in this regard:

  • Overall legal, institutional and administrative reforms: CEMAC countries were urged to rationalize and modernize their trade and investment regimes in order to improve the business environment with a view to making these regimes more conducive to the countries’ economic development ambitions.
      
  • Border tax regime (tariffs and other duties and charges): Members noted that CEMAC’s tax system comprised a common external tariff with five rates (ranging from zero to 30% and averaging about 18%), as well as several other duties and charges. The levels of protection are high in some sectors. Also, national suspensions of import taxes and of VAT undermine the harmonized regime. Members also stressed that certain applied rates exceed the bound levels in most countries. They  encouraged CEMAC countries to address the shortcomings of the Common External Tariff, simplify their tax system, as well as to rationalize and reduce maximum rates with a view to promoting trade and investment, both internally in the region and with the rest of the world.
      
  • Trade facilitation: Members welcomed the positive steps taken, including at the national level, and the recognition by CEMAC that this was a priority, also in order to ensure the functioning of the internal market. Notwithstanding, Members stressed the need for rapid improvements in this area, in light of the remaining, and many times substantial impediments to transit and border clearance in the CEMAC countries.
      
  • SPS and TBT regimes: Some Members called upon CEMAC countries to adhere to best practices, mainly through the use of scientific evidence in the development and implementation of new measures, and the notification of institutions in charge of SPS and TBT.
      
  • Intellectual Property Rights: A number of Members encouraged the CEMAC countries to set up an effective institutional framework geared at providing better protection for IPRs, including through the full implementation of the TRIPS Agreement.
      
  • Sectoral policies: While recognizing that few impediments exist to foreign direct investment and expressing support for the increased attention to sustainability and good governance of resource-based industries (e.g. in mining and forestry), Members urged CEMAC countries to rapidly take steps to further open up their trade regimes in a number of economic sectors with a view to facilitating their economic diversification processes.

Members appreciated the comprehensive responses provided by CEMAC countries to most questions and look forward to receiving any outstanding replies.

In conclusion, this Review has contributed to deepen our understanding of the regional, as well as national components of the trade regimes of Cameroon, Central African Republic, Chad, Congo, and Gabon. Members urged the five countries to increase their efforts for trade openness, ensure more effective application of the measures established at the Community level, as well as implement various reforms — especially those of a structural nature. This would improve their business environment by tackling high costs of doing business, and would attract investment. Such policies and programmes should provide CEMAC countries with a much needed boost to their competitiveness and to the improvement of the living standards of their population. I would also like to stress — in line with what a number of Members have highlighted — that assistance from WTO Members may play a pivotal role to this end. As has become clear in this Review, CEMAC countries have immense potential, although this potential has yet to be fully exploited to the betterment of their citizens. The ambitious targets set by, and for, CEMAC sets a clear path towards a more prosperous future. But it is a path that will neither be easy nor quick, that does not allow for any shortcuts, and those walking on it will surely benefit from all the help they can get.

Once again, I thank the delegations of the countries under review, the discussant and Members for contributing to an informative and interesting review. I also wish to express my appreciation to the five delegations for their oral and written responses, to the Secretariat for its valuable assistance and to the interpreters for their usual excellent work. This meeting is ajourned.

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