WT/TPR/S/127 Trade Policy Review
Page 12
II. TRADE AND INVESTMENT REGIMES
(1) THE INSTITUTIONAL FRAMEWORK
1. The Gambia is a unitary democracy, independent since February 1965.  It enjoyed nearly
thirty years of continuous multi-party democracy until a coup d'état in 1994.  Following a period of
institutional uncertainty, a new constitution was adopted by referendum in 1997.  The constitution
provides for the separation of executive, legislative, and judiciary power.  The President is elected bydirect universal suffrage for a five-year term; there is no constitutional limit on the number of terms.
He is the Head of State and commander-in-chief of the armed forces.  Executive power is exercised
either directly by the President, or indirectly through Cabinet.  The Cabinet is appointed by the
President, and consists of the Vice-President, not more than fifteen Secretaries of State and the
Attorney General. A Secretary of State cannot also be a member of the legislature.  The President isresponsible, inter alia , for the conduct of relations with other states and international organizations,
the negotiation, and, subject to ratification by the legislature, conclusion of treaties and international
agreements.  The President also appoints an Auditor-General, who is a member of the public service,
after consultation with the Public Service Commission.
2. Legislative power is vested in a unicamer al National Assembly, comprising forty-nine
members, of which forty-five are elected by direct universal suffrage and four are appointed by the
President.   All serve a five-year term, provided a petition of recall is not evoked by the Independent
Electoral Commission.  The Speaker and Deputy Speaker of the National Assembly are elected by the
National Assembly, from among its members.   Eligibility criteria include a good track record of
service to the country, integrity, experience, and dedication to duty.   The National Assembly has the
power to summon the President to answer to a vote of no confidence tabled against him by a member
of Parliament. Should the motion receive two thirds or more of votes in the House, the President isrequired to stand down.  Legislative power is exercised by bills passed by the National Assembly and
assented to by the President.
3. The Gambia's judicial system is based on a combination of:  English Common Law and the
rules of equity derived therefrom;  Sharia law as it relates specifically to marriage, inheritance, and
divorce;  and treaties and international conventi ons.   Under the 1997 constitution, judicial power is
vested in the courts, according to the following hi erarchy:  the Supreme Court, the Court of Appeal,
the High Court and the Special Criminal Court (these four courts collectively comprise the superior
courts); the Magistrates court, the Cadi court
1, district tribunals and any lower courts and tribunals
established by an Act of the National Assembly.  The Supreme Court is the final court of appeal for
The Gambia.  The Chief Justice is appointed by the President after consultation with the JudicialService Commission.  All other judges of the superior courts – except those of the Special Criminal
Court – are appointed by the President on the r ecommendation of the Judicial Service Commission.  A
commercial court was established in 1998 to handle cases relating to the Company Act and loan
recovery, but most commercial litigatio n is handled through the High Court .  The commercial court
has a severe backlog of cases.
4. Local government is based on a system of democratically elected councils, which have
competencies in, inter alia , infrastructure development, encouragement of commercial enterprises,
provision of essential and other services, and raising of local revenue , as provided for in the 2002
Local Government Act.  The decentralization process is one part of an overall national programme
addressing The Gambia's administrative and institutional structures, known as the Governance Policy
Framework.  This was adopted in 1999, and its six objectives are to: reform parliamentary structures
                                                     
1 The Cadi court has jurisdiction to apply the Sharia  in matters of marriage, divorce, and inheritance
where the parties or other interested persons are muslims.The Gambia WT/TPR/S/127
Page 13
and processes; review constitutional and electoral processes; promote civic education; decentralize
local government systems; reform legal and judicial processes; and strengthen public management
and administrative reform.
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION
5. Each Department of State is responsible for policies in its fields of activity. Bills or motions
relating to a policy initiative may be introduced in the National Assembly by the relevant Secretary ofState, and must be accompanied by an explanatory memorandum setting out in detail the policy and
principle of the bill, the defects it is intended to remedy, and the necessity for its introduction.  Any
proposed bill must be published in the Gazette at least 14 days prior to introduction.  The proposed
bill may be refered to an appropriate National Assembly Standing Committee.
2  The constitution does
not set a specific time-limit on consideration of the proposed bill by the National Assembly.  Once abill is passed, the President has thirty days to either assent to the bill, or return it to Parliament for
reconsideration, along with a statement providing reasons for the request for reconsideration and any
recommendations for amendment.  Once the bill has been reconsidered, and approved (with or
without the amendments proposed by the President) by the Assembly by a majority of at least two
thirds, it is forwarded again to the President, who must then assent to it within seven days.  A bill thathas been passed by the National Assembly and assented to by the President becomes law (an Act of
the National Assembly).  The President is responsible for ensuring that such Acts are published in the
Gazette within thirty days of his assent;  the Acts come into force at the time of their publication.
6. The Department of State for Trade, Indus try and Employment ( DOSTIE) has overall
responsibility for the formulation, coordination, and implementation of trade, investment, industrial,
and competition policies.  Acting on the authority of the President, it takes the lead role in trade
negotiations, which are conducted in collaboration with the Department of State for Foreign Affairs.Tariffs are set by the Department of State for Finance and Economic Affairs (DOSFEA) and
administered directly by the Customs and Excise Department.
3  Other departments whose functions
have a bearing on trade policy include:  the Department of State for Local Government and Lands,
which is responsible for, inter alia , the allocation of commercial land for industrial development; the
Department of State for Justice, which is responsible for, inter alia , the registration of businesses and
companies; the Department of State for Health, which is responsible for, inter alia , the establishment
of regulations on quality-control requirements both for imports and exports of processed foods; and
the Department of State for Agriculture, which is partly responsible for, inter alia , policy related to
agriculture and the establishment of technical regulations and controls governing imports and exports
of plants, plant material, and livestock, and protection of food.
7. A High-Level Economic Committee (HLEC), consisting of government officials, was
established in 1990 to consider policy issues and make recommendations to Cabinet, for example, on
the implementation of the privatization process (Chapter III(4)).  An inter-departmental task force on
trade policy has been established to coordinate trade-related technical assistance. Nevertheless, trade
policy still suffers from a lack of coordination, and this has affected the implementation ofcommitments undertaken in the WTO.  The lack of coordination has also limited the integration of
The Gambia's trade policy into its overall development strategies. Consultations  between Government
and the private sector tend to be sporadic and ad hoc. Moreover, pre-budget consultations have not
taken place since 2001.
                                                     
2 The National Assembly is empowered to appoint a public appointments standing committee, a finance
and public accounts standing committee, a standing committee of privileges, a standing committee on defenceand security, and any other committee it consider s necessary for the exercise of its functions.
3 The Government intends to establish an independent revenue authority, which would, inter alia , be
responsible for customs duty collections.WT/TPR/S/127 Trade Policy Review
Page 14
(3) POLICY OBJECTIVES
8. The Gambia recognizes the importance of trade and investment liberalization to its long-term
development prospects;  the pace of reform has increased since the late 1990s.  In addition to tariff
reductions, the Government sees the divestiture of state assets, and the implementation of clear
regulatory frameworks as essential conditions for the development of the private sector, considered to
be the main source of economic growth in the medium and long term.  The Government's intention isthat policy reforms, together with initiatives such as the development of free zones and the provision
of investment incentives, will make The Gambia attractive to local and foreign private investors, and
in turn encourage employment creation and the dive rsification of the relatively narrow productive and
export base.
9. "The Gambia Incorporated: Vision 2020", adopted in 1996, calls for the transformation of
The Gambia "into a dynamic middle income country".
4  Broad objectives are set out for six areas:
agriculture, industry, trade, tourism, financial services, and human resource development.  These
objectives include: improving the productivity of the agriculture sector and encouraging crop
diversification; increasing the share of manuf acturing in GDP to 25-30% by 2020; making The
Gambia a hub for regional trade and transit/entrepôt trade; promoting The Gambia as a "touristparadise and major tourist destination"; and developing The Gambia into a centre for "teleport" and
financial services
5, including off-shore banking services.6
10. In the long term, the Government also intends "to eradicate poverty by significantly
increasing national income through stable economic growth, and reducing income and non-income
inequalities through specific poverty reduction prio rity interventions".  The attainment of this goal
rests on achieving five overarching objectives:  (i) the creation of "an enabling policy environment";
(ii) enhancing the productive capacity and social protection of the poor and vulnerable;(iii) improving the coverage of basic social-service needs of the poor and vulnerable;  (iv) building
capacity for local communities and civil society organizations;  and (v) "mainstreaming poverty-
related cross-cutting issues".
7  On the whole, however, there has been no attempt to articulate a
systematic trade policy agenda for The Gambia linked to poverty reduction.  Consequently, the
formulation and discussion of a number of trade policy objectives and measures have been, at best,only partially integrated into the overall developmen t strategy framework, and have tended to follow a
parallel track.
11. An Export Development Programme, currently under preparation
8, focuses on the following
priority subsectors:  groundnuts, tourism, fisheries, horticulture (mainly flowers and fruit), and niche
manufacturing (mainly processed fruit and vegetable products).  Specific strategies are envisioned foreach of the subsectors.  The strategies involve a wide range of government actions, notably the
provision of extension and information services, training and capacity-building in relation to standards
                                                     
4 Government of The Gambia (1996).
5 Teleports are essentially gateways that connect sa tellite circuits with terrestial fibre optic and micro-
wave circuits.  The establishment of teleports is seen as a way of attracting knowledge-based service industries
(see also online information.  Available at: http://www.worldteleport.org).
6 The "Vision" document itself identified few concrete policy measures.  This is left to a number of
different policy statements and programmes, notably the Strategy for Poverty Alleviation (SPAII) / PovertyReduction Strategy Paper (SPA II - PRSP), adopted in  2002, which succeeds the First Strategy for Poverty
Alleviation, implemented from 1994 to 1998.  Other relevant policy documents are the Export Development
Programme, the National Employment Policy and Action Plan, the National Industrial Policy, and various
sector-specific policy documents.
7 Government of The Gambia (2002a).
8 Supported by The Gambia's participation in the Integrated Framework for Trade-related Technical
Assistance and Capacity-building for Least Developed Countries.The Gambia WT/TPR/S/127
Page 15
and marketing, the creation of specialized financing institutions, and the use of incentives;  they also
address infrastructure constraints (Chapter IV(2) and (4)).9
(4) LAWS AND REGULATIONS
12. The main trade-related laws and regulations of The Gambia are presented in Table II.1.  The
1955 Company Act provides for freedom of enterprise and setting prices.  It distinguishes between
three types of company: limited by shares, limited by guarantee, and unlimited.  For a company to beincorporated, a memorandum and articles of association need to be deposited with the Registrar of
Companies at the Attorney General’s Cabinet.  The Act also sets out the required accounting
procedures to be followed by enterprises.  The Business Registration Act of 1973 further specifies that
a certificate of registration (for a business) or a certificate of incorporation (for a company) must be
obtained, and prominently displayed in the principal place of business.  The registration cost forcompanies owned by Gambian nationals is D5,500; foreign-owned companies are required to pay a
fee of D10,000, and a payroll (expatriate quota) tax of D10,000 per annum. Registration takes about
three days to one week.
Table II.1
Main trade-related laws and regulations of The Gambia, July 2003
Area Instrument/text Entry into force
Customs legislation Customs Act, as revised and its subsidiary
Customs Regulations
Customs Tariff Act 1965, as revised in 19721950, last revision 1976
for the Act, 1981 for the
Regulation
Taxes, levies, and duties Tax Code ..
Investment incentives; functioning of The GambiaInvestment Promotion and Free Zones Agency(GIPFZA)Investment Promotion Act, 2001 1 March 2001
Free zones; investment incentives to free-zone operators Free Zones Act, 2001 1 March 2001
Public procurement; establishment of The Gambia
Public Procurement AuthorityPublic Procurement Act 19 July 2001
Procedures and regulations for the establishment of
private commercial enterprisesCompany Act 1955
Establishment and operation of public enterprises Public Enterprise Act 27 June 2002
Procedures for the divestiture of state enterprises, state's
interest in other enterprises, and any related matter;
establishment of The Gambia Divestiture AgencyThe Gambia Divestiture Act 1 March 2001
Operation of the Central Bank Central Bank Act 31 December 1992
Rules governing the establishment and operation of
banks and financial institutions; prudential requirements
and supervisionFinancial Institutions Act 31 December 1992
Prevention of money-laundering Money Laundering Bill 2003
Protection of patents, industrial designs, and trade-
marksIndustrial Act 1989
Protection of copyright Copyright Act 15 July 1915
Public health, including food control Public Health Act
Public Health Act (Amendment) Decree1990
1995
Sanitary measures – animal health Diseases of Animals Act 1965
Phytosanitary standards Hazardous Chemicals and Pesticides Control and
Management Act1994
Table II.1 (cont'd)
                                                     
9 The subsectors and measures discussed in the Export Development Programme are also echoed to
some extent in the National Employment Policy and the National Employment Action Plan.  The use ofincentives is underscored in the National Industrial Policy. See Government of The Gambia (2002b); andGovernment of The Gambia (1997).WT/TPR/S/127 Trade Policy Review
Page 16
Area Instrument/text Entry into force
Environmental standards, and environmental impact
assessmentsNational Environment Management Act 1994
Groundnut subsector Groundnuts Act
Groundnut (Standard of Quality) Regulations
Framework of Agreement between the
Government of The Gambia and the Agri-Business Plan Association1952
1965
18 December 1999
Rules governing operators in tourism sector,
establishment of The Gambia Tourism AuthorityThe Gambia Tourism Authority Act 19 July 2001
Fisheries Fisheries Act
Fisheries Act (Amendment) Decree1991
1995
Posts and telecommunications Post Office Act
Savings Bank Act
Telegraph  Stations ActTelephones Acts1912
1936
1913
1950
Civil aviation Civil Aviation Act 1979
Ports The Gambia Ports Act 1972
Road transport Road and Highways Act 18 December 1974
River transport Inland Waterways Act ..
Mining and minerals Minerals Act 1953
Petroleum Petroleum Act 1921
.. Not available.
Source: Government of The Gambia.
13. The 1950 Customs Act, as revised10, and its subsidiary customs regulations (adopted in 1950,
and revised on several occasions11) set out the procedures for the arrival, unloading, declaration, and
storage of goods in The Gambian territory.  The Act also contains provisions on transit trade, coasting
trade (trade by sea or by air from one part of The Gambia to the others), bond and other securities
payable by agents, the prevention of smuggling, and legal procedures that can be followed in a dispute
relating to a customs matter.  It also contains a few provisions regarding the remission of duties and
drawback procedures, but these are more fully developed in the 1965 Customs Tariff Act, as revisedin 1972.  The latter is the legal basis for the imposition of import and export duties.  It  sets out
valuation procedures for imposition of import duties, and procedures for duty drawbacks and the
granting of duty remissions and exemptions.
14. The Government promotes private investment, both local and foreign, through the Investment
Promotion Act and the Free Zones Act, both passed in May 2001;  the Acts replace the Development
Act of 1988.  The Government established The Gambia Investment Promotion and Free Zone
Authority (GIPFZA) to act as a "one-stop shop" to ensure implementation of the provisions of these
Acts, and  to facilitate all aspects of investment in The Gambia.  It is mandated, inter alia , to review
applications by companies for investment incentives or free-zone status, and issue a recommendation
to the Secretary of State for Trade, Industry and Employment; and to ensure that investors comply
with the requirements of the Investment Promotion Act or the Free Zones Act, as applicable.
GIPFZA's Board of directors comprises eight members, which include the Permanent Secretaries ofthe departments responsible respectively for trade, finance, and communications, as well as three
representatives from the private sector.  The establishment of the GIPFZA was supported by a World
Bank credit of US$5.1 million disbursed as part of  the Trade Gateway Project: US$1.4 million will be
devoted to financing its operating expenditure during the first five years of its operation, after which,
                                                     
10 Last revised in 1976.
11 Last revised in 1981.The Gambia WT/TPR/S/127
Page 17
under the terms of the project, it is expected that GIPFZA is to become self-sustaining.  The balance
will be devoted to providing technical assistance to GIPFZA management, and financing surveys,
studies, and marketing plans.
15. All investors, whether foreign or Gambian, must be registered with the Registrar of
Companies, in compliance with the Business Registration Act (see above).  No specific restrictions
are placed on foreign investors by the Investment  Promotion Act or the Free Zones Act.  Joint
ventures  are not required but are encouraged by the Government , and incentives are provided for this
purpose under both the Investment Promotion and Fr ee Zones Acts.  Likewise, there is no obligation
for foreign investors to offer equity participation to the Government, though the Government "may
seek" equity participation in projects in areas such  as natural resources or infrastructure.  Investors
face no restrictions on: the transfer of after-tax profits as dividends to non-resident shareholders or asremittances to head office; the repayment of loans or  the payment of interest and service charges; the
payment of licence fees and royalties due to non-residents; or the repatriation of proceeds from the
sale of investment to a resident of The Gambia, or  from a reduction of share capital.  Expropriation is
allowed in where it is necessary in the interest of defence, public safety, public order, public morality,
public health, town and country planning, or promotion of the public benefit
12;  the prompt payment
of adequate compensation is required.  The constitution also secures access to a court or other
impartial or independent authority, including international arbitration, for the purpose of the
determination of a person's interest or right to the property, the legality of the expropriation, the
amount of compensation to which the person is entitled, and for the purpose of obtaining prompt
payment of that compensation.
16. Investments relating to the exploitation of mineralogical, petroleum, and fisheries resources
are subject to certain restrictions as stipulated in the Minerals Act, the Petroleum Act, and the
Fisheries Act.  A lease or a licence must be granted by the State, and investors are expected to reach a
comprehensive agreement with Government on the terms and conditions for exploration and
production (Chapter IV(3)(2)).  Gambian law also created statutory state monopolies in certain areas
of activity (mainly utilities).  Some consideration has been given to enacting legislative amendments
to permit the participation of domestic and foreign private investors in these areas of activity, but todate no concrete steps have been taken.
17. Under the Investment Promotion Act, special incentives are available to encourage
investment in "priority" sectors and activities (Table II.2).  In addition to investing in these sectors,
other eligibility criteria are that:  investment must be organized as a company or partnership under the
Law of The Gambia;  the minimum investment of fixed assets must be US$100,000 or the equivalent
in local or any other freely convertible currency; and that investments are outside the free zones.  Any
investor satisfying the eligibility criteria may apply to GIPFZA for a Certificate of Special
Investment.  These certificates are valid for five years, and are renewable.  In considering an
application for a certificate for special investment, GIPFZA is required to carry out an appraisal of the
proposed project or business to contribute to the achievement of the following objectives:  (a) thegeneration of new foreign-exchange earnings or savings through exports, or import substitution, or
service activities;  (b) the use of local materials, suppliers, and services;  (c) the creation of
employment opportunities in The Gambia;  (d) the introduction of advanced technology or upgrading
of indigenous technology;  (e) the contribution to locally or regionally balanced socio-economic
development;  and (f) any other objectives that the Agency may consider relevant for achieving the
objectives of the Investment Promotion Act.  It is not required for a project to meet each of these
criteria.   No specific benchmarks or objective indicators have been developed to date to assess the
                                                     
12 Article 22 (1) of the Constitution of The Gambia.WT/TPR/S/127 Trade Policy Review
Page 18
performance of a project or business against these desired objectives, giving GIPFZA a certain degree
of discretion in awarding investment incentives.
Table II.2
Priority sectors and activities under the Investment Promotion Act
Sector Qualifying activities
Agriculture - Crops: groundnuts, cashew, sesame, cotton, cereals
- Animal husbandry: livestock, poultry including meat  processing, tannery, export of live animals
- Floriculture and horticulture, agro-processing
Fisheries - Aqua-culture: fish and shrimp farming
- Fishing and fish processing at industrial level
Tourism - Eco-tourism: national heritage and others
- Up-country tourism: motels, tourist camps, sport fishing, river cruising- Hotel development for a 4 or 5 stars
Forestry - Development of private/community forest parks agro-forestry plantation
Manufacturing - Assembling and packaging processing
- Foundry and forging
- Light pharmaceuticals and cosmetics
Energy - Electricity generation and distribution
- Renewable energy sources: solar, wind, hydro-energy
Skills development - Vocational training: carpentry, welding, masonry
- Development of specialized skills: electronics, computing, others
Other services - Financial services
- Off-shore services
- Health and veterinary services- River and air transportation
- Information technology
Minerals exploration and
exploitation- Petroleum exploration: refer to Petroleum Act and regulations
- Mining of precious stones and others: refer to Mineral Act.
Communications - Transportation (land, sea, and air)
- Communication equipment.
Source: Government of The Gambia.
18. Following the adoption of the Free Zones Act, the Government took steps to establish a free
zone covering 160 hectares in the vicinity of Banjul Airport.13  The physical investment required for
the establishment of the free zone has been supported in part by a World Bank credit of
US$5.35 million as part of the Trade Gateway Project.  The credit has been allocated to financing
physical preparation of the site, the construction of fencing and access roads, the installation of
common utilities (power, telephone, water, and sewage) inside the zone, the construction of acommon user warehouse, and the recruitment of consultants to supervise work carried out.
19. The legislation distinguishes between three different types of operator: zone developers; zone
operators; and zone enterprises.  Zone developers are real estate financiers, who mobilize financing
for the development of infrastructures within free zones, such as factory buildings, warehouses, and
any other specialized structures that may be in demand by zone investors.  Zone operators areessentially estate managers employed by zone developers.  Zone enterprises are the operators actually
involved in the production of goods and services.
                                                     
13 The Free Zones Act gives the Secretary of State re sponsible for Trade the power to declare any area
of The Gambia to be a free zone, on recommendation by the GIPFZA.The Gambia WT/TPR/S/127
Page 19
20. Investors seeking to claim any of these designations must satisfy specific criteria.  Zone
developers need to:
− attach engineering designs and studies of buildings and infrastructure, together with
the timeframe for their erection, and thereafter maintenance of facilities as per agreed
maintenance plan.14 Designs should make provision for the movement of persons,
conveyances, vessels, and goods entering or leaving the zones;
− specify a strategy for intervention in the free zones, i.e. whether to operate
simultaneously as zone operators; form joint ventures or partnerships; or sub-lease the
management of such facilities out to individual zone operators;
− keep and maintain adequate and proper accounts and other records in relation to the
business, in English, and report to the Agency annually;  and
− provide in the zones at the developer's own expenses and free of charge, adequate
facilities and offices for personnel of the Agency, Customs and Excise Department,and other officials of government agencies whose presence is necessary in the zones
to ensure compliance with the Free Zones Act and other laws of The Gambia.
21. Zone operators need to:
− provide evidence of the necessary expertise required to manage and administer all or
any part of a free zone as determined by GIPFZA;
− submit suitable operational plans;  and
− prove that the operations proposed are commercially viable and have adequate equity
base.
22. Zone enterprises need to:
− be registered as entities authorized to do business in The Gambia;
− engage in at least one eligible activity fo r an enterprise within the zone, and avoid
activities that have a deleterious impact on the environment or public health;
− submit evidence that trade, business or industry to be carried on within the free zone
is primarily for export outside The Gambia;
− have an adequate equity base and be commercially viable;
− submit a suitable development plan;  and
− have the potential to create employment for the citizens of The Gambia within the
zone and increase output and value added to boost the economy.
23. In its capacity as administrator of free zones, the GIPFZA has developed criteria that all
investors (regardless of the category to which they belong) must satisfy in order to benefit from
free-zone incentives
15:
− investments must be in the following activities: warehousing, breaking bulk,
assembling, storage, grading, cleaning, mixing, labelling, packaging and repackaging,
processing, manufacturing, telecommunication, information technology, energy,financial and offshore services, health and veterinary services, or transportation
services;
                                                     
14 Developers of single factory or stand-alone free zones should provide adequate enclosure to
segregate the free-zone areas from the national customs territory.
15 The criteria are not specified in the Free Zones Act itself.  Please see online information. Available
at: http://www.gipfza.gm/Free_Zones_/body_free_zones_.htmlWT/TPR/S/127 Trade Policy Review
Page 20
− transactions are to be carried out in specified foreign exchange;
− activities must significantly add value to qualify finished products for conferment of
origin status;
− investments must generate employment and train nationals;
− a substantial portion of output (the benchmark currently used by GIPFZA is 70%)
must be exported to foreign markets, the remainder can be sold on the domesticmarket, in which case they are treated as imports;  and
− investment must contribute positively to domestic capital formation.
24. Applications to operate within the free zone are submitted to GIPFZA, which is required to
make a decision within a period of 30 days.  Licences are granted for a period of not less than oneyear, and not greater than 30 years, and are renewable.  GIPFZA may suspend, amend or revoke a
licence if the licensee fails to carry out any author ized activity within six months of the issue of the
licence; substantially ceases, for a reasonable length of time, its activities in the zone; or contravenes
the provisions of the Free Zones Act or conditions attached to the licence.  Appeals may be lodged
with the Secretary of State responsible for trade.
25. Investment incentives generally take the form of customs duty exemptions on selected items,
exemptions from various domestic indirect taxes, tax holidays, and a special scheme for accelerated
depreciation (Chapter III(4)(i)).  The incentives provided to free-zone investors take the form of tax
and duty concessions or exemptions (Chapter III(3)(v)), and apply equally to all three classes of
investor.
26. The Gambia has signed double taxation agreements with United Kingdom, Norway, Sweden
and Chinese Taipei.  Bilateral investment agreements have been concluded with Guinea, Mauritania,
the Netherlands, Qatar, Ukraine, and the United Kingdom.
(5) T
RADE AGREEMENTS AND ARRANGEMENTS
(i) Multilateral agreements
27. The Gambia has been a Member of the WTO since 23 October 1996; it had been a contracting
party to the GATT since 22 February 1965.  The Gambia is neither a signatory nor an observer to any
of the WTO's plurilateral agreements.  Mainly owing to a lack of capacity, The Gambia's notifications
to the WTO are few and are made sporadically (Table II.3).  The Gambia has not been involved in any
dispute under the WTO Dispute Settlement Mechanism, either directly or as a third party.
28. The Gambia is a UN-designated least developed country, and as such may avail itself of the
special and differential treatment provisions applicable to least developed countries under WTOAgreements.  The implementation of WTO Agreements by The Gambia and its ability to derive
benefits from its participation in the multilateral trading system will require significant investment in
developing trade-related capacity (section (6) below).
29. The Gambia's participation in multilateral trade negotiations has been restricted by weak
inter-ministerial coordination on trade policy, and by its lack of representation in Geneva.  Its mainareas of interest are special and differential treatment,  market access, and the extension of protection
afforded through geographical indications to products of regional interest.   A WTO study showed that
Gambian exports of agricultural products have tended to face high tariff barriers, with average tariffs
between 25-26%, even when trade preferences are taken into account.
16  Exports of fish and fisheries
                                                     
16 See WT/COMTD/LDC/W/17.The Gambia WT/TPR/S/127
Page 21
products from The Gambia face low rates of duty in developed markets (a simple average of less than
1% when preferences are taken into account) and relatively high tariff barriers in developing country
and transition economy markets (a simple average of 25%).17  The Gambia also believes that
implementation-related issues under existing Agreements should be tackled expeditiously, and that
WTO Members should consider ways of alleviating the supply-side constraints of least developed
countries.
Table II.3
Selected notifications by The Gambia to the WTO, July 2003
WTO Agreement Description of requirement PeriodicityDocument symbol of latest
notification
Agriculture, Article 10
and Article 18.2Export subsidies Annual G/AG/N/GMB/2
23 January 1998
Agriculture, Article 10and Article 18.2Domestic support Two years G/AG/N/GMB/1
23 January 1998
Anti-Dumping,Article 16.4Anti-dumping actions taken Semi-annual G/ADP/N/9/Add.1/Rev.6
20 March 1998 and
G/ADP/N/47/Add.120 April 1999
Agreement on ImportLicensing Procedures,Article 7.3Questionnaire on import licensing
proceduresAnnual G/LIC/N/3/GMB/1
5 December 1997
Agreement on Subsidiesand Countervailing
Measures, Article 25.1and GATT 1994
Article XVI.1Subsidies Annual G/SCM/N/48
30 March 1999
Agreement on Subsidies
and Countervailing
Measures Article 25.11Preliminary report of final actions
taken with respect to
countervailing dutiesSemi-annual G/SCM/N47/Add.1
21 April 1999
Decision on Notification
Procedures for
Quantitative Restrictions(G/L/59)Quantitative restrictions Biennial G/MA/NTM/QR/1/ADD.5
19 November 1998
GATT 1994
Article XVII:4(a) andUnderstanding on the
Interpretation of
Article XVII ( state
trading enterprises)Activities of state trading
enterprisesTriennial for full notifications;
changes in activities to be notified
in intervening years.G/STR/N/1/GMB
14 November 1997
Source: WTO Secretariat.
(ii) Regional agreements
(a) The African Union and African Economic Community
30. The Gambia is a founding member of the African Union, which succeeded the Organization
of African Unity (OAU) in 2001.  The Charter establishing the OAU was signed by 30 Africannations on 25 May 1963.  The Gambia, like the other members of the OAU, signed the Abuja
(Nigeria) Treaty Establishing the AEC in June 1991, as provided for by the 1980 Lagos Plan of
Action.  Its main aim is to promote integration and harmonization within Africa.  The treaty provides
for the creation of a pan-African economic and monetary union (with a parliament) in six stages, over
a period of 34 years.  The organs and headquarters of the AEC are those of the AU.
                                                     
17 As discussed in Chapter IV(2)(iii)(a), The Gambia's exports of groundnuts, its chief cash-crop, are
particularly affected by tariffs and subsidies used by large developing-country producers.WT/TPR/S/127 Trade Policy Review
Page 22
31. At the 2001 Lusaka Summit, African heads of state also adopted the New Partnership for
African Development (NEPAD), which calls for a new relationship between Africa and the
international community, in particular industrialized countries.  The NEPAD seeks to encourage
internal reform within African countries through a peer review system, and to mobilize additional debt
relief and donor support to fund poverty alleviation programmes.
(b) The Economic Community of West African States (ECOWAS)
32. ECOWAS is the main regional trade agreement of which The Gambia is a member.
ECOWAS was established in 1975, and, in addition to The Gambia, its 15-country membership
consists of Benin, Burkina Faso, Cape Verde, Cô te d'Ivoire, Ghana, Guinea, Guinea-Bissau, Liberia,
Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo.18  It was initially envisioned that free trade
between ECOWAS countries would be achieved by 1996 through the Trade Liberalisation Scheme(TLS) adopted in 1990.  However, the revision to the treaty founding ECOWAS, adopted in 1993,
reset the date creating a free-trade area to 2000, and an economic and monetary union by 2005.
19
Provision was made through the 1993 revision for the creation of five regional institutions:  a CentralBank, a Parliament, a Court of Justice, an Executive Secretariat, and an Economic and Social Council.
In 1994, the Francophone member countries, which already shared a common currency (the CFAfranc), formed the West African Economic and Monetary Union (WAEMU).  Six non-WAEMU
ECOWAS members, including The Gambia
20, signed an agreement in April 2000, aimed at
establishing their own monetary union by the end of 2003, the West African Monetary Zone
(WAMZ); this would merge with WAEMU by th e end of  2004, ushering in an ECOWAS-wide
monetary union.
33. The pace of integration at ECOWAS level (excluding developments within the WAEMU) has
been slow, and the deadline for intra-regional trade liberalization was missed.  The TLS had identifiedthree groups of countries based on a number of criteria, including the level of industrial development
and transportation problems;  the speed of liberalization required varied across each group.  The
Gambia, along with Cape Verde, Guinea-Bissau, Burkina Faso, Mali, Mauritania, and the Niger were
to have eliminated tariffs by 2000, by annual reductions of 10%.
21   This time-table has not been fully
adhered to, and the first stage of liberalization, largely limited to  unprocessed products, has not
generally been implemented. The Gambia should also have allowed duty-free preferential access for
many nominated handicrafts and local speciality products.22  All tariff preferences are subject to rules
of origin requirements.  A finished product has Community origin if at least 60% of the raw materials
used in its manufacture come from members, or if the value-added is at least 35% of the ex-works
cost price, excluding taxes.  Products must be approved according to the scheme adopted by theECOWAS Council of Ministers.
34. A community levy is  collected  on imports originating from non-ECOWAS countries to
finance the contributions of ECOWAS member states to the common budget, and the compensation
for customs revenue lost through liberalization.  However, this proved to be largely ineffectual, as
                                                     
18 Mauritania withdrew in 2000.
19 The ECOWAS treaty has not been notified to the WTO.
20 The others are Ghana, Guinea, Liberia, Nigeria, and Sierra Leone.
21 Ghana, along with Côte d'Ivoire, Nigeria, and Senegal were to have eliminated tariffs by 1996 by
reductions of 16.6% per year over six years. Benin, Guinea, Liberia, Sierra Leone, and Togo were to have
removed tariffs over eight years, by 1998, by reducing duty rates annually by 12.5%.
22 Since January 1990, handicrafts appearing on a list established by the Community are, in principle,
duty free provided they are accompanied by a certificate of  origin issued by the competent authority designated
by the exporting country.  In The Gambia, this is the Department of State for Trade, Industry and Employment.The Gambia WT/TPR/S/127
Page 23
members have, by and large not kept up their contributions. Discussions are under way concerning the
development of a common external tariff.
35. A West African Monetary Institute (WAMI) was established in December 2000, as a
precursor to a common central bank for the WAMZ.  The WAMI was to develop an exchange rate
mechanism for the six countries, with specified pa rities, as an interim mechanism prior to the
establishment of the common currency.  Current arrangements, which were introduced in March 2002provide for a 15% fluctuation band around parities established on the basis of the currencies' value
against the U.S. dollar.
23  Members also agreed to the following primary convergence criteria, which
they were required to meet by the end of 2003 as a precondition for monetary union: inflation at 5%
or lower; gross foreign exchange reserves at six months of import cover at least; central bank
financing of the budget deficit not to exceed 10% of the previous year's tax revenue; and a ratio of thebudget deficit, excluding foreign grants, to GDP not in excess of 4%.
24  While The Gambia would
have met all four criteria in 2000, slippages in economic policy elements and adverse exogenous
developments in 2001 and 2002 meant that it was in breach of the first two criteria in those years, and
is expected to be in breach in 2003.   Six secondary convergence criteria were also agreed to:  the
prohibition of new domestic arrears and the liquidation of previous ones;  a tax revenue to GDP ratioof at least 20%;  a wage bill to tax revenue ratio not exceeding 35%;  domestically financed capital
expenditure to tax revenue ratio of at least 20%;  stability of the exchange rate; and positive real
interest rates.
36. ECOWAS has launched donor-supported projects to extend and make compatible the
communication, transport, and energy networks within the community. These include the West
African Transnational Highway; West African Power Pool; West African Gas Pipeline; and
INTELCOM 1&2.
37. ECOWAS has, through its Ceasefire Monitori ng Group (ECOMOG), been active in the area
of regional security.  Recent peace-keeping missions have been undertaken in Sierra Leone (1997),
Guinea-Bissau (1998), Côte-d'Ivo ire (2003), and Liberia (2003).
(iii) Bilateral agreements and arrangements
38. The Gambia has signed bilateral trade agreements with Cuba, Iran, Nigeria, Senegal, and
Tunisia. These agreements mainly cover cooperation in trade promotion activities, and do not entail
any preferential market access.
(iv) Non-reciprocal preferential treatment arrangements
(a) Overview
39. The Gambia benefits from non-reciprocal pref erential treatment from many industrialized
countries under the Generalized System of Preferences (GSP).  In the case of the European Union,
The Gambia is eligible for preferences for ACP countries, and to LDCs generally through the
                                                     
23 At end March 2003, the dalasi was trading at 17.8 against the U.S. dollar.  As a result of the
sustained depreciation of the dalasi through the first half of 2003, The Gambia is considering invoking a clause
that would allow it to renegotiate its parity.
24 At end 2000, performance was within the limits set by the four criteria; slippages in macroeconomic
policy management in 2001 meant that the criteria for inflation and the ratio of the budget deficit to GDP wereexceeded.WT/TPR/S/127 Trade Policy Review
Page 24
Everything But Arms (EBA) initiative.25  On 1 January 2003, Canada expanded the coverage of its
preferential scheme for LDCs to provide duty-free treatment for all LDC exports, with the exception
of dairy, poultry, and egg products, the importation of which is duty free in-quota and subject to the
MFN regime out-of-quota.26  As of April 2003, Japan implemented enhanced preferences for LDCs
under its GSP scheme, expanding duty-free and quot a-free treatment to over 90% of imports, by
value, from LDCs.27
40. The Gambia makes varying use of the preferences schemes of the Quad (Table II.4).  The
Gambia has usually exported to the European Union, its largest market, under preferences available
through the EU's arrangements with the ACP countries, rather than under preferences made available
to LDCs under the EU's Generalized System of Preferences.  This is demonstrated by the very low
utilization rate by The Gambia of the EU's general preferences to LDCs.  The Gambia's choice ofpreferential scheme is largely because, historically, the EU's preferential schemes with ACP countries
have been perceived as more advantageous in terms of the level of preferences and product coverage,
and as having less onerous rules of origin and documentation requirements.
28
Table II.4
Utilization rates by The Gambia of trade preferences granted by the Quad
Preference
scheme/yearExports
from the
Gambia
(US$'000)Exports
MFN
dutiable (b)
(US$'000)
(1)Exports
GSP
covered (c)
(US$'000)
(2)Exports
GSP
received(d)
(US$'000)
(3)Potential
cover rate
(2/1)Utilization
rate
(3/2)Utility rate
(3/1)
EU  1999 66,503 10,576 10,556 247 99.8 2.3 2.3
EU 2000 28,822 6,701 6,576 74 98.1 1.1 1.1
EU 2001 a18,387 8,526 8,499 35 99.7 0.4 0.4
Japan 1999 19,119 18,655 15,801 15,700 84.7 99.4 84.2
Japan 2000 3,597 2,877 1,758 1,428 61.1 81.3 49.6
Japan 2001 597 565 565 241 100.0 42.6 42.6
USA 1999 186 55 27 12 48.6 43.8 21.3
USA 2000 342 139 47 24 33.9 51.8 17.6
USA 2001 229 115 51 1 44.5 1.6 0.7
Canada 1999 83 42 27 0 64.3 0.0 0.0
Canada 2000 283 52 47 0 90.4 0.0 0.0
Canada 2001 2,122 10 10 0 100.0 0.0 0.0
EU –ACP
preferences, 2001 e18,274 8,449 9,981 6,620 100.0 66.3 78.4
a As of March 2001:  Everything But Arms Initiative.
b That is, the value of imports from The Gambia under tariff lines where the MFN applied rate is strictly positive.c That is, the value of imports from The Gambia under tariff lines eligible for LDC-specific preferential treatment.
d That is, the value of imports from The Gambia which actually enter the reporting country's market under preferential duties.
e Transitional trade preferences provided under the Cotonou Agreement.
Source: UNCTAD Secretariat 2003.
41. Gambian exporters' utilization of the EU's LDC- specific preferences remains low, even after
the introduction of the EBA Initiative (EBA), although EBA-preferences are, on paper, more
                                                     
25 The EU’s Everything But Arms (EBA) Initiative, implemented from March 2001, has extended
duty-free and quota-free access to  imports of all produ cts from least developed countries, except for arms.
Extension of this preferential treatment to sugar, rice, and fresh bananas will follow specified schedules (WTO,
2002;  and Europa online information. Available at:  http//europa.eu.int/comm/trade/miti/ devel/eba4.htm).
26 See WTO document WT/COMTD/N/15/Add.1.
27 See WTO document WT/COMTD/N/2/Add.12.
28 See Solignac-Lecomte (2001), and Brenton (2003).The Gambia WT/TPR/S/127
Page 25
extensive than ACP preferences (Table II.4).29  This is because EBA does not generate additional
access in relation to the current structure of The Gambia's exports.  Furthermore, rules of origin
relating to fishing vessels are less flexible than under ACP preferences, and could act as a deterrent to
the utilization of the EBA for fish products, in view of The Gambia's low fleet capacity.30  It is also
possible that, in the absence of fresh market-access opportunities, Gambian exporters had no incentive
to invest the time and resources required to familiarize themselves and comply with the proceduraland documentation requirements of the EBA, which differ substantially from those required for the
use of ACP preferences.  The Gambia can make effective use of the EBA only if it is able to develop
non-traditional products (such as horticultural products) for which the EBA provides additional access
over existing EU-ACP preferences, and to adapt to the EBA's stricter rules of origin and specific
requirements, relating to procedures and SPS measures.  Such adaptation will be necessary, aspreferences accorded to ACP countries are due to end by 2008, while the EBA is not time-limited.
Though there is a focal point at DOSTIE to inform the public on EBA, very little work has been
undertaken to inform Gambian exporters about preferences available under the initiative, or to train
exporters to deal with procedural and documentation requirements.
42. In relation to Canada, the low level of preference utilization by The Gambia is because most
of its exports are traditional products, which are subject to zero-duty MFN rates;   taking advantage of
recent improvements to Canada's GSP is predicated on The Gambia's ability to branch out into non-
traditional  products.  In relation to Japan, data indicate that The Gambia was able to almost fully
exploit the preferences available in 1999, particularly on fish products;  it received preferences on
almost 85% of its exports that would otherwise have been subject to MFN duties.  However, since
1999, the value of The Gambia's exports has declined, together with its ability to take advantage of
preferences availed to it, a trend most evident for live animals and animal products.  The Gambiaappears to have made low to moderate use of the preferences applying to its exports to the United
States.
(b) The Cotonou Agreement
43. The Gambia is a signatory to the Cotonou Agreement (successor to the Lomé Convention)
between the EU and 77 countries in Afri ca, the Caribbean, and the Pacific (ACP).
31  The Agreement
maintains most non-reciprocal trade preferences granted by the EU to ACP States.32  A s  a t
December 2003, the Agreement had not yet been ratified by The Gambia.  At the Doha Ministerial
Conference, WTO Members granted the waiver from the obligations under Article I:1 of GATT 1994
                                                     
29 A pattern observed for the exports of a number of LDCs (see Brenton, 2003).
30 The major differences with regard to fishing vessels are: (1) under the EBA, the vessel must be
registered in the beneficiary country or the EU and sail under the flag of the beneficiary country or the EU;while under the Cotonou Agreement, the vessel must be registered in the EU or any ACP State and fly under theflag of the EU or any ACP State; (2)  under the EBA initiative, vessels must be at least 50% owned by nationalsof the EU or the beneficiary country, or by companies headquartered in either the EU or the beneficiary country,
and of which the chairman and majority of the board are nationals of either; whereas under the Cotonou
Agreement, these provisions are extended to cover all ACP States; (3) under the EBA initiative, the master and
the officers must be nationals of the beneficiary country or an EU member and at least 75% of the crew must benationals of the beneficiary country or the EU; under the Cotonou Agreement, 50% of the crew, along with themaster and officials, must be nationals of any ACP State or the EU (See Brenton, 2003).
31 The Cotonou Agreement was signed on 23 June 2000.  The fourth Lomé Convention had expired at
the end of February 2000.
32 South Africa was excluded from most of the provisions of the Lomé Conventions and now the
Cotonou Agreement, but has a separate Trade Development and Cooperation Agreement with the EU, signed inOctober 1999, which provides for asymmetrical trade liber alization between the two parties to form a free-trade
area by 2012.WT/TPR/S/127 Trade Policy Review
Page 26
(MFN treatment), requested by the parties to the Agreement, for the period up to 31 December 2007.33
By then, new WTO-compatible trading arrangements are to be concluded, removing barriers
progressively between the parties and enhancing cooper ation in all areas relevant to trade, including
the formation of free-trade areas within a transitional period.  During this period, the EU is to enter
into negotiations with ACP countries, to start in September 2002, aimed at establishing partnership
agreements on a bilateral basis, or between the EU and regional groupings (regional economicpartnership agreements) to commence by January 2008 at the latest.  These would be based on
reciprocal liberalization, thereby requiring, in principle, The Gambia and other ACP states to extend
preferential access progressively to EU exports.
44. Under the Cotonou Agreement, the EU grants non-reciprocal trade preferences to most
imports originating in ACP states, subject to a safeguard clause and rules of origin.
34  F o r  c e r t a i n
products (bananas, beef and veal, and sugar), the EU provides special market access under
"commodity protocols".  The Cotonou Agreement abolished STABEX, SYSMIN, and the Rum
Protocol of the Lomé Conventions.
45. The Gambia received financial assistance from the EU under, inter alia , the European
Development Fund (EDF);  the European Investment Bank for commercial loans;  and the NationalIndicative Programme (NIP).
(c) The African Growth and Opportunity Act (AGOA)
46. AGOA, contained in the U.S. Trade and Devel opment Act of 2000, and as modified by the
Trade Act of August 2002
35, offers free access to some manufactured products originating in African
countries.  A high-level dialogue on trade and in vestment under the U.S.-Sub-Saharan Africa Trade
and Economic Forum has also been established.  To be eligible, African countries must make progress
in establishing a market-based economy; developing political pluralism and the rule of law;eliminating discriminatory barriers to U.S. trad e and investment;  protecting intellectual property;
combating corruption; protecting human and worker rights; and removing certain practices of child
labour.
36
47. African countries eligible for preferenti al treatment under th e AGOA w ill receive GSP
treatment in the U.S. market (exempt from the competitive needs limitations) until the end ofSeptember 2008, and will qualify for an expanded lis t of GSP products (beyond that available to other
countries). The countries are entitled to unlimited duty-free and quota-free access to the U.S. market
for apparel made from U.S. fabric, yarn or thread.
37  Less developed countries, including The Gambia,
27 other eligible African countries with a per capita GNP below US$1,500 in 1998, plus Botswana
and Namibia, may use non-U.S. fabric  and yarn until end-September 2004.38  Although the apparel
benefits in principle took effect from 17 October 2000, countries must have in place an effective visa
system to prevent illegal trans-shipment and use of counterfeit documentation, as well as effective
                                                     
33 WTO document WT/MIN(01)/15,14 November 2001.  The full text of the Cotonou Agreement was
communicated to WTO Members (WTO document G/C/W/187/Add.3 of 14 April 2000).
34 The rules of origin require that qualifying products be either "wholly obtained or significantly
worked or processed" in one or more ACP States.  The latter definition is based on the product being sufficientlymodified in the ACP State for it to be classifi ed under a different four-digit HS tariff line.
35 The modifications are collectively referred to as AGOA II.
36 African Growth and Opportunity Act. Available online at http://www.agoa.gov/index.html.
37 The list of manufactured goods (some 1,800 tariff lines) covered by AGOA includes products such
as footwear, luggage, handbags, and watches.
38 Botswana and Namibia were accorded less developed country status under AGOA II.  The possibility
of using non-U.S.-origin yarn was introduced under AGOA II.The Gambia WT/TPR/S/127
Page 27
enforcement and verification procedures.  The Trade Act of August 2002 extended duty-free and
quota-free access to certain types of apparel products previously excluded, specifically "knit-to shape"
articles, and "hybrid" apparel articles, i.e. articles containing both U.S. and sub-Saharan Africa
beneficiary components and/or articles containing both fabric and knit-to-shape components.
48. The Gambia was declared eligible for AGOA' s benefits following the 2002 review of AGOA
conducted by the Government of the United States.39  As at December 2003, Gambian exporters had
not made use of preferences available under AGOA.   The Gambia had not taken steps required by
AGOA rules that would allow it to benefit from special provisions regarding exports of apparel.40
(6) TRADE -RELATED TECHNICAL ASSISTANCE
(i) General needs
49. The Gambia's assistance requirements relate to:  (i) the harmonization of laws and regulations
with WTO requirements;  (ii) notifications;  (iii) staff training, and establishment of institutional
structures to facilitate the implementation and observance of Agreements;  and (iv) the formulation of
policies that allow maximum benefit from trade reforms and the application of the WTO Agreements,
and minimize any costs.41
50. Customs reform and capacity-building have been a long-standing item on The Gambia's
policy agenda.42  The implementation of modern, WTO-consistent customs procedures is a priority.
The Gambia currently applies a hybrid valuation system, under which both transaction values and
reference values are taken into account, though the latter is used when it is higher.  The Gambia has
not applied to the WTO for a waiver granting it an extended transition period for the implementation
of the WTO Customs Valuation Agreement, although it is not yet applying the method based on the
transaction value.  The main technical assistance needs in relation to valuation are: the training of
officials in the principles of the transaction value method and content of the Agreement; assistance inthe drafting of legislation; and training on valuation, post-clearance auditing, and anti-fraud
techniques and control, within the framework of the Agreement.  The delivery of technical assistance
in these areas would be part of a wider programme for the development of customs capacity, which is
being supported by the International Monetary Fund and bilateral donors.
51. The development and implementation of standards and other technical requirements,
including sanitary and phytosanitary measures, are a key priority.  The Gambia does not have an
                                                     
39 The review stated that The Gambia has made "significant progress in implementing political reforms,
recognizing basic human rights, and favorably addressing allegations of complicity in the illicit trade in conflictdiamonds. The Gambia’s progress includes holding multi-p arty presidential, legislative, and local elections;
qualifying for the HIPC initiative, and making significant progress in meeting performance targets; proceedingsuccessfully with privatization and deregulation plans; making substantial improvements in social infrastructure,and implementing an IMF Poverty Reduction and Growth facility; and ratifying ILO convention 182 on the
worst forms of child labour."
40 AGOA rules on apparel require beneficiaries to "establish effective product visa systems to prevent
illegal transshipment and the use of counterfeit documentation, as well as [to have] instituted requiredenforcement and verification procedures"
41 The Gambia was one of five countries (with Bangladesh, Haiti, Tanzania, and Uganda) to have held
trade-related roundtables under the first version of the Integrated Framework for Trade–Related Technical
Assistance and Capacity Building for Least-developed Countries.  The main outcome from this roundtable has
been the preparation of an Export De velopment Strategy and specific sector studies in the areas of fisheries,
groundnuts, horticulture, niche manufacturing, and tourism, in association with the joint WTO/UNCTAD/International Trade Centre.
42 McNamara and McPherson (1995).WT/TPR/S/127 Trade Policy Review
Page 28
operational standards bureau that could act as a focal point for the development of national standards.
This hampers The Gambia's ability to control the quality of imported goods, and reduces its capacity
to set and enforce standards that would enable Gambian exporters to signal the quality of their goods
in competitive international markets.  Regulations on sanitary and phytosanitary measures are
dispersed across a number of legislative texts, meaning that specific issues are addressed in a
piecemeal fashion.  This reduces transparency, and also means that specific topics (such as food safetyor animal health) are not supervised by a single institution, thus hampering monitoring and
enforcement.  Furthermore, the provisions relating to sanitary and phytosanitary measures in
legislation such as the Public Health Act (1990), various public health regulations adopted under the
former Public Health Act of 1935, the Groundnuts Act of 1952, and the Diseases on Animals Act of
1965, do not meet the requirements of the Codex Alimentarius, or the Organisation Internationale desEpizooties (as applicable).  In the case of the Groundnut Act, the insufficient attention given to the
issue of minimum pesticide residue contents is liable to jeopardise the competitiveness of Gambian
groundnuts in major industrialized markets.  The Gambia is reviewing existing legislation, and has
prepared new draft legislation in a number of areas (Chapter III(2)(vii)(b)).  Technical assistance
could focus on ensuring that revised or newly drafted legislation is in conformity with rules andpractices provided for in relevant international agreements, the development of implementing
legislation, and the development of institutional capacity required for enforcement.
52. The development of structures for certification and the implementation of technical, sanitary,
and phytosanitary regulations constitute a second level of needs.  For example, the implementation of
the Hazardous Chemicals and Pesticides Control and Management Act of 1994 required the
establishment of a Pest Management Unit.  Laboratory facilities exist at the National Agriculture
Research Institute, but financial support is needed for their further development, as is technicalassistance for the training of staff.  Laboratory facilities will also be critical for the implementation of
various texts prepared in 2002 on hazardous chemicals and pesticides (Chapter III(2)(vii)(b)), required
to enhance consumer protection and the quality of exports, and to allow The Gambia to fulfil
international obligations.
53. Technical assistance needs for intellectual property protection relate to the revision of existing
legislation, the drafting of new legislation, and the development of implementation capacity.   Steps
are being taken to develop a new copyright law to replace the existing legislation dating from 1915.
The enforcement of legislation protecting trade marks is currently hampered by the lack of an
adequate system for trade mark registration.  The current backlog in the publication of trade marks is
estimated at 12 years;  this has led to several cases being filed by individuals claiming infringement.
54. The Gambia does not have legislation on contingency trade remedies.  The Government is of
the view that further liberalization may lead to increased pressure for the use of such measures.
Technical assistance in this area would focus on developing capacity to use contingency trade
remedies to address cases of unfair competition without allowing their capture by protectionist
lobbies.
55. The Gambia is currently involved in trade negotiations with regional partners in the context of
ECOWAS; with the European Union under the Cotonou Agreement;  and within the WTO under the
Doha Development Agenda.  The different negotiating mandates and  timetables are liable to place
considerable stress on The Gambia's institutional capacities.  Technical assistance could focus on
helping The Gambia to identify negotiating priorities, and to anchor these in its overall programme of
trade reform.  It could also focus on strengthening the Diplomatic Academy established by the
Government in 2002 in order to strengthen commercial diplomacy.The Gambia WT/TPR/S/127
Page 29
56. The Gambia's participation in the work of the WTO generally, and in negotiations
specifically, is hampered by its lack of representation in Geneva43, as well as by a shortage of staff
trained in WTO matters.44  An inter-departmental coordination committee on the WTO exists, on
paper, but is currently not operational. A WTO reference centre was established in DOSTIE in
November 1998, but is currently not operational.  Assistance to the Government to enable it to make
better use of information and on-line technology may help to alleviate some of the problems it faces inkeeping abreast of the WTO's work programme.  The Gambia also needs assistance in making
notifications corresponding to its obligations under various WTO Agreements in a timely manner.
(ii) Supply-side constraints
57. Supply-side constraints affecting The Gambia are both of a generic (cross-cutting) nature and
a sector-specific nature.  The former include the high cost and unreliability of certain public services –notably electricity and telecommunication services – and the high cost of private credit;  bank lending
rates are between 20% and 24%.  Banjul's port and the renovated Yumdum airport provide The
Gambia with a gateway to export markets.  The role of these facilities in The Gambia's trade
infrastructure could be enhanced through specific support for initiatives that would help to reduce
transport costs, including reforms in port manage ment (Chapter IV(5)(iii)(b)), road maintenance
(Chapter IV(5)(iii)(a)), and trade facilitation, notably through the reform of customs practices and
procedures.  Many of these constraints are singled out for policy action in the current version of The
Gambia's Poverty Reduction Strategy Paper, and tackling them will support traditional exports such as
groundnuts and fisheries, as well as sectors identified as having an important growth potential,
notably tourism, horticulture, and non-traditional agricultural exports.
58. Most sector-specific constraints are discussed in detail in Chapter IV.  The most frequently
identified needs are training in modern production and marketing techniques, and the provision ofinputs and physical support facilities.  For example, the fisheries subsector would benefit from the
provision of cold storage facilities;  and the groundnut subsector would benefit from measures to
introduce new harvesting and storage techniques, as current techniques contribute to the high
aflatoxin content of Gambian groundnuts.  In a ddition, Gambian exporters would generally benefit
from better information about market access opportunities, including trade preferences, offered bytrading partners.
59. The Government sees its divestiture programme and the reform of state-owned enterprises as
a means of addressing some of these supply-side constraints, and also as a necessary complement to
trade liberalization in order to create a suitable environment for private-sector-led growth.  To ensure
that the divestiture programme yields efficiency gains, the Government is preparing legislation oncompetition policy and consumer protection, and regulatory frameworks for the specific sectors to be
opened to the private sector under track I of the privatization programme (Chapter III(4)(ii)).  It
intends to review existing legislation and develop new sectoral policies in areas critical to the
country's infrastructure, such as energy, communications, transport, maritime, and water resources.
                                                     
43 The Gambia's mission in Brussels handles WTO matters.
44 The Gambia benefited from 22 technical assistance (TA) activities in 2002 and 23 TA activities in
2003, organized mainly at a regional level.  Activities in which The Gambia has participated in 2003 included
the 23rd Trade Policy Course in Geneva from 13 January to 4 April 2003;  the three-month trade policy courseheld in Kenya for English-speaking African countries;  the 4th and 6th dispute settlement courses, the briefing
for high-level officials from LDCs held in Switzerland on 19-21 August 2003;  the regional workshop on the
implementation of the textiles and clothing agreement for selected African countries, held in Lesotho on 28-30July 2003;  the regional workshop on market access nego tiations and IDB/CTS databa ses for selected English-
speaking African countries, held in Zambia on 13-16 October 2003;  and the second WTO/ADB/ECA tradepolicy course for African countries, held in Ghana from 13 to 24 October 2003.WT/TPR/S/127 Trade Policy Review
Page 30
Technical assistance would focus on the preparation of legislation; ensuring the consistency between
overall framework for competition policy and regulatory frameworks applying to individual sectors;
and on building institutional capacity, particularly the envisioned multi-sector regulatory agency,
required to implement legislation.  The policy framework for private competition will also be
enhanced through support for reforms enabling the judiciary to expedite cases of commercial
litigation and enforce collateral recovery for commercial loans, and through legislative reforms suchas the drafting of a new financial institutions bill.  Many of these technical assistance needs are likely
to be addressed through the Trade Gateway Project, sponsored by the World Bank.
60. Technical assistance could also focus on helping the Government to harmonize incentives
provided through newer legislation with those already existing, in order to avoid overlapping
incentive schemes and to increase the transparency of the investment regime.  With a number ofdifferent departments and agencies currently claiming competence for the granting of incentives
(Chapter III(4)(i))), technical assistance could focus on developing a streamlined procedure for
approvals, in order to reduce procedural costs for investors.  Some of the newly established agencies
lack capacity to perform even basic tasks such as  maintaining time-series data.  Regarding the free
trade zone, technical assistance could be geared towards helping the Government devise strategies forenhancing linkages between the zone and the rest of the economy.
(iii) Integration of trade into development plans
61. Despite the Government's recognition of the importance of trade and trade policy reform to
the development prospects of The Gambia, trade policy has yet to be systematically integrated with
other aspects of development policy.  As pointed out elsewhere, trade policy does not feature
explicitly in The Gambia's current Poverty Reduction Strategy Paper, and the discussion of trade
policy tends to be dispersed across a number of policy statements whose relationship to each other isunclear.  One basic reason for this lack of integration is that trade policy-making itself is not fully
coordinated, as there is no operational structure to coordinate the work of the various departments and
agencies involved in the formulation and implementation of trade policy.  A critical first step would
be to achieve such coordination in trade policy-making.  A second step would be to find a way of
bringing trade policy discussions into fora addressing development and poverty-reduction issues, suchas the State Poverty Alleviation Coordination Office ( SPACO).  As many of the institutions involved
in poverty-reduction strategies are also involved in trade policy-making, this second step is as much a
question of political will as it is of capacity.  On e way in which technical assistance could help would
be to identify a set of trade policy actions that would have the most impact on poverty reduction,
which could then be integrated into future versions of The Gambia's Poverty Reduction StrategyPaper.