WORLD TRADE
ORGANIZATIONWT/COMTD/IF/29
6 April 1998
(98-1363)
Committee on Trade and Development
Integrated Framework for Trade-Related
Technical AssistanceOriginal:  English
TRADE-RELATED TECHNICAL ASSISTANCE NEEDS-ASSESSMENT
PRESENTED BY THE MOZAMBIQUE
INTEGRATED RESPONSES BY IMF, ITC, UNCTAD,
UNDP, WORLD BANK AND WTO1
MOZAMBIQUE
                                                     
1Published pursuant to the provisions of paragraph 5 (e) of the Integrated Framework for Trade-Related
Technical Assistance (WT/LDC/HL/1/Rev.1).WT/COMTD/IF/29
Page 2
I. EXECUTIVE SUMMARY
The purpose of this report is to provide a broad assessment of constraints in trade-related
areas affecting Mozambique's efforts in the implementation of the WTO Agreements.
The world market promoted by the WTO regulations calls for countries, products and labour
to be competitive.  But competitiveness requires  technology, communication, information, capital and
credit facilities, foreign direct investment, a literate society, a trained, skilled but cheap work force,technical know-how, management, large consumer markets and efficient government infrastructure.
Mozambique, lacks all these skills and resources.  Its private sector is just emerging and it is fairly
inexperienced.  Moreover, after decades of war, the sectors of industry and manufacturing are only
now beginning to be operational and thus lack exposure and experience in quality control, marketing,
packaging and modern management practices.  For th ese reasons, Mozambique, without sufficient and
real assistance, will not be able to survive the real impact of the WTO Agreements.
Notwithstanding the above, Mozambique has undertaken and successfully implemented wide
ranging economic and trade related reforms to create the conditions necessary for compliance with the
WTO Agreements.
The report is organised as follows:  considering that many of the constraints to trade and
development have their basis in Mozambique's recent history, the report provides a brief outline of the
country's context, economic potential, recent economic reforms and trade policy framework.  The restof the report is organised in accord with the check-list provided by the WTO Secretariat.
II. BACKGROUND
A. Country Context
A decade of war left Mozambique in ruins.  Decimating its productive and social
infrastructure.  Five million people were displaced and over 1.7 million were refugees in neighbouringcountries.  Following the General Peace agreement in 1992, the Government implemented a massive
social reintegration program including the demobilisation of 80,000 soldiers.  In 1996, the country
held its first multi-party election and, the present Government was elected into office.  While peace
and stability are holding in Mozambique, the massive destruction of the country's infrastructure
(schools, health centres, roads, bridges, transmission lines, ports and rail system) continue to influencepublic investment, the pace and direction of economic development.
B. Economic Potential
Mozambique has significant economic potential.  Its relatively untapped natural resources
base provides opportunities in agriculture, forestry and fisheries, energy (natural gas, hydropower and
coal) as well as tourism.  Moreover, the country's location makes it the ideal gateway for products toand from the interior of South Africa, Swaziland, Zimbabwe, Zambia and Malawi.  The Southern
port, the Maputo Corridor, is the shortest link to the sea for South Africa's agricultural region.
Similarly, the Central port, the Beira Corridor, provides the most efficient link to Zimbabwe and
Zambia.  This fact enhances Mozambique and its neighbouring countries' opportunity for cooperation,
trade and mutual development.
Much of Mozambique's potential in agriculture and fisheries remains unrealised.  Agriculture
accounts for 35 per cent of GDP, employ about 70 per cent of the labour force and accounts forWT/COMTD/IF/29
Page 3
80 per cent of exports.  Principle exports are shrimps (50 per cent of total export earnings), cotton,
cashew and sugar.  However, less than 10 per cent of Mozambique's arable land is under cultivation.
C. Government Objectives
The Government's overall development objectives have as their foci the following key
components:
- reconstruction and rehabilitation of infrastructure;
- promotion of agricultural production and associated industries for export;
- human resources development; and
- creation of a favourable environment for growth and investment.
D. Economic Performance
Despite considerable constraints, Mozambique has been implementing a series of wide
ranging economic reforms since 1987.  Progress was slow during the years of war but since the early
1990s and especially, since the present Government took office, considerable progress has been madein the reform process.  GDP growth has averaged at 5 per cent and there has been notable increase in
exports (30 per cent).  Inflation has been reduced from 54 per cent in 1995 to 16 per cent in 1996.
E. Trade Policy and Strategy
The Government's trade policy aims to improve the balance of trade by:- promoting and increasing diversification of exports, especially of those goods and
services that contribute to revenue;
- stimulating production of goods and services to meet domestic and international
market demand;
- guaranteeing the provision of raw material and equipment for the domestic market so
as to stimulate the production of export goods;
- improving competitive capacity by marketing, increasing the supply of quality,
quantity, diversification, delivery and prices;
- supporting regional and international initiatives that contribute to economic
integration and cooperation;  and
- improving the business and regulatory climate for investment.
F. Capacity
A trained, skilled and adaptable workforce is essential for the management of a changing
economy.  Capacity constraints in Mozambique are severe.  In 1992, there were only 4,000 university
graduates and less than 200 with post-graduate qualifications.  Critical skill shortages are felt in
engineering (especially, roads engineer), law, information technology and management andadministration.  Although the skills profile in the labour market is gradually improving through on the
job-training, short-term specific training courses and increased enrolment at the National University
(currently enrolment stands at just under 5,000 students), capacity building is and will remain central
to the Government's development objectives.WT/COMTD/IF/29
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TRADE-RELATED TECHNICAL ASSISTANCE
NEEDS-ASSESSMENT PRESENTED BY THE MOZAMBIQUE
A. Trade policy
(a) What are the sectors that you believe have unexploited or underexploited export
potential?
As mentioned previously, Mozambique has significant economic potential and much of this
potential is yet to be realised.  The sectors with export potential which are under-exploited are:
- agriculture and fisheries:  including agro-industry, especially sugar, textile and food-
stuff;
-f o r e s t r y ;
- mineral resources;  and
- energy and gas.
(b) Could you please define your country's pers pective of the reasons for any changes in the
structure and direction of exports and imports?
The Government's perspective on the structure and direction of exports and imports is guided
by its overall macro-economic policy with a key trade objective of export diversification in a range of
products, targeted at new markets.  This objective is complemented by a promotional strategy to
establish activities in support of exports.  With reference to imports, there is a need to change theactual structure with a view to give a higher priority to imports of capital goods and raw materials.
(c) What have been the objectives of trade po licy in the most recent period, compared to,
say, two decades ago?
There is considerable difference between the objectives of the current trade policy relative to
that of two decades ago.  Two decades ago Mozambique was a newly independent country adheringto a centrally planned economy.  In 1986, restrictions on international trade were prevalent.  All
imports were subject to licensing with import licenses being subject to a central plan.  The availability
of foreign exchange was strictly controlled.  In 1987, the government commenced its economic
reform program and has progressively re-oriented the overall management and macro-economic
framework.  In this context and since 1987, enterprises have been allowed to import and exportdirectly, thus reducing the control of state trading monopolies.  Since 1990, the Government's trade
liberalisation effort can be summarised as follows:
- 1990 a system of non-administrative allocation of foreign exchange for key imported
inputs for selected industries was approved;
- in 1991, a second foreign exchange market became operational and the system of
import licences was streamlined;
- in 1991, the tariff structure was simplified from 34 rates to one with 5 rates ranging
from 5 to 35 per cent;
- in 1993, the tariffs on imported industrial inputs were reduced from 18 per cent to
11 per cent;  and
- while import and export licenses continue to be required, these do not act as non-tariff
barriers.  All significant non-tariff barriers have been lifted.WT/COMTD/IF/29
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(d) What are the Ministries in charge of trade policy matters, including formulation,
implementation, enforcement and monitoring?  How is coordination made?  What are the
respective roles of the relevant Ministries (give particular attention to tariff policies and other
policies directly affecting exports and imports of goods and services)?
The Ministry of Industry, Trade and Tourism has the primary responsibility for trade policy
formulation, implementation, enforcement and monitoring.  In undertaking these tasks however, theMinistry coordinates closely with the Ministry of Agriculture and Fisheries.  Tariff policies and duties
on imported goods are determined by the Ministry of Planning and Finance in coordination with the
Customs Department.
(e) How are the private sector and academic in stitutions associated with the formulation
and conduct of trade policy?
Policy dialogue with non-government organisations including the private sector, academic
institutions and unions, takes the form of on-going informal consultation which informs the policyformulation phase.  Draft policy documents are widely circulated for comment to these bodies.
Comments on policy are also sought from other stakeholders in the public sector prior to the
finalisation and submission of policy to Cabinet for approval.
(f) What are the institutions in your country th at can play a role in implementation of a
trade-related project at the local level?  State their respective roles.
There are a number of institutions that can play an implementation role of trade related
projects at the local level.  These include:
- the Institute of Export promotion (IPEX) which was established for the promotion
and export diversification.  It organises and ensures Mozambique's participation in
International Trade commercial missions.  It also manages a small export promotionfund.  IPEX reports to the Ministry of Industry, Trade and Tourism;
- Institute for the Development of Local Industry (IDIL) was established to promote
the development of small and medium scale enterprises (SMEs).  Through its various
support and training programmes, IDIL directs SME towards export markets.
Institutionally, IDIL is within the Ministry of Industry, Trade and Tourism;
- Mozambique Cereal Institute (ICM) has a mandate to perform the tasks normally
undertaken by grain marketing boards.  Principally, it purchases surplus grain for
export.  Institutionally, IDIL is within the Ministry of Industry, Trade and Tourism;
- National Institute of Standardisation and quality (INNOQ), a department within the
Ministry of Industry, Trade and Tourism;
- Investment Promotion Centre (CPI) which, as its name suggests, has as its primary
responsibility the promotion of foreign direct investment into Mozambique.  CPI
reports to the Ministry of Planning and Finance.
Although these institutional mechanisms are in-pl ace, their effectiveness is limited due to lack
of sufficiently qualified and experienced staff and financial resources to implement planned
programmes.WT/COMTD/IF/29
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(g) What are the main laws and regulations de aling with trade policy - on exports and
imports?  Please provide a short description of each.
The legal framework for regulating of policy on exports and imports are the following:
- Export regulation - Ministerial Diploma 91/93, of 29/9, requires exporters to register
with the Ministry of Industry, Commerce and Tourism.  It also defines the operational
procedures to be observed by exporters.
 - Import regulation - Ministerial Diploma 21/91 of 28/2, requires importers to register
with the Ministry of Industry, Trade and Tourism and defines all import procedural
requirements.
(h) What are the main instruments of trade policy - on exports and imports?  Please
elaborate (e.g. on import restrictions, the questions might be:  on what products are there any
import bans; on what products are there quantitative import restrictions; licensing
requirements, etc.; what is the highest tariff ra te currently in use; are there any excise taxes,
other "domestic" taxes that are applied differenti ally to imported goods, or to goods of a type
that are principally imported?).
The main instruments of trade policy on export and imports are regulated by:
- Decree number 17/96, of 15/10, defines the approved Custom Guidelines;
- the Decree 17/91, of 19/6, provides for the Harmonised System for Designation and
Codification of goods;  and
- these Guidelines, aggregate goods in seven classes:  consumer goods, essential goods,
intermediate goods, capital goods, raw-materials, fuels and energy.
The applicable import duties are progressive and as follows:
1996/8 1999 2000 2001
1. Raw materials 2,5% 3,5% 4,5% 5%
2. Intermediate goods 7,5% 8,5% 9,5% 10%
Exports do not pay any duties.
- prohibited goods are those that cause damage to public health and those that are
nationally legislated or those which are listed in the treaties that Mozambique has
ratified.  A special import regime covers those goods that may require veterinary
authorization from the Ministry of Health.
(i) In case you are a WTO Member or are in the process of acceding, how is your country
preparing itself to comply  with the WTO Agreements?
Mozambique is a member of WTO and participated in the negotiations of the Uruguay
Round.  To comply with WTO Agreements, Mozambique as an economy in transition, has focused on
a range of priority issue including:
- sound macro-economic policy;
- a program of trade liberalisation;
- price liberalisation on commodities.  All minium producer prices have been replaced
by a reference price except on two commodities;WT/COMTD/IF/29
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- financial sector reform (from state dominated financial sector to a diversified and
competitive system);
- a comprehensive privatisation program;
- improved and streamlined customs management and administration;  and
- a revised Investment Code.
(j) What is the state of familiarity with the WTO framework:
- among government and government-related agencies?
- in the private sector?
The familiarity level with WTO framework is ge nerally limited to the confines of the Trade
Department of the Ministry of Industry, Trade and Tourism.  There is a general appreciation of its
overall importance but specific information and understanding of WTO Agreements and their impact
on a range of sectors is negligible at both the public and local private sector levels.
(k) What are your technical assistance require ments with regard to your compliance with
the WTO Agreements?
Technical assistance requirements with regard to compliance with WTO Agreements should
in the first instance include a series of practical, well organised and focused seminars/workshops on
specific themes for representatives of both the private and public sectors.  Following such a seminar,
better dissemination of WTO rules and regulations as well as a provision of the WTO procedures is
imperative.
(l) In which specific areas of the WTO Agreements do you have technical assistance needs
(e.g. market access, agriculture, rules (anti-dumping , subsidies, import licensing, rules of origin,
safeguards etc.), TBT and SPS, Services, TRIPs)?
Mozambique requires technical assistance in the following specific areas of WTO
agreements:
- assistance with the management aspects of production, packaging and marketing of
goods in accordance with international standards;
- agricultural and textile Agreements;
- development of a strategy to attract trade related investment (TRIMS);- dispute settlement and WTO rules on anti-dumping;
- subsidies, rules of origin and nullification process to WTO;  and
 - TRIPS and negotiation under WTO rules.
(m) What is your assessment of your existing trade analysis and negotiating capacities, both
multilateral and bilateral, in areas already covered by the WTO Agreements and other trade-
related areas, e.g. competition policy and trade and environment?
Mozambique's existing trade analysis and negotiation capacity at both multilateral and
bilateral levels is severely limited due to:
- lack of highly skilled personnel to undertake trade analysis, limited capacity to access
available data, and capacity to systematically collect and collate data and resources
(information technology) to undertake such analysis;
- a deficit of qualified personnel in commercial and contract law, competition policy,
trade and environment.WT/COMTD/IF/29
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B. Obstacles to trade expansion
Obstacles to trade encompassing problems in export markets, infrastructure, human
capacities, institutional bottlenecks, trade financing problems and gaps in trade information can
inhibit a least-developed country from taking full advantage of trading opportunities.
Supply constraints, including institutional bottlenecks
(a) What are the main bottlenecks inhibiting the development of sustained export capacity
of goods and services (e.g. customs facilitation, freight charges, quality management,
elimination of cumbersome legal and administrative procedures, paucity of human skills, access
at international prices to imported inputs, or inadequate telecommunication, port and transport
facilities etc.)?
- Land-locked countries may face addition al problems, such as having to ship
using costly or unreliable transport and ports systems.  In case this applies to
your country, please indicate such problems.  What kind of technical assistancewould help you work out these problems?
Sustained export capacity is inhibited by:
- at factory level low quality of products compounded by lack of financial resources for
capital investment in appropriate technology and lack of foreign exchange to import
inputs;
- lack of management skills at firm and production levels;
- costly and inadequate telecommunication services;
- paucity of skilled labour force to meet the demand of a growing and changing
economy.  Budgetary constraints preclude public expenditure on vast training and
education programmes;
- cumbersome legal and administrative procedures (although administrative barriers are
progressively being streamlined);  and
- although Mozambique is not a landlocked-country, internal transport cost are high
due to the complete destruction of the road network during the war.
(b) Are there any institutional bottlenecks, wh ich may impede the efficient conduct of your
country's trade policies?  Provide details. For example, what are the problems perceived by the
different actors, e.g. exporters, producers, service providers (banks, insurance companies,
quality control, transporters etc), professional associations and Ministries?  Are problems
mainly perceived in the area of:
(i) human resources(ii) management of the institution
(iii) financial and material resources
(iv) communication
Institutional bottlenecks impeding efficient conduct of trade policies include:
- poorly educated and skilled human resources base.  In the public sector, acute skills
shortages are in the areas of analytical skills, technical skills, modern managementWT/COMTD/IF/29
Page 9
and administrative procedures;  lack of experience and exposure to internationally
accepted notions of best practice;
- lack of funds to finance staff development programmes;  and
- other stake holders (in the private sector) perceive these problems mainly in the areas
of human resources, financial and materials resources and management of
institutions.
(c) What are the main bottlenecks to export diversification?
Key bottlenecks to export diversification are:
- lack of resources (financial and human) for research and product development;
- lack of capacity to undertake strategic market studies and to plan accordingly;
- low capital, skills and technical know-how to  exploit available natural resources;  and
 - weak manufacturing sector which lacks appropriate technology and limited capacity
to raise financing.
(d) If investment in the production of goods a nd services is inadequate, what are the main
reasons?  Please elaborate them (e.g. structural co nstraints, difficulties in attracting foreign
investment, limited enterprise development, financing, lack of appropriate technology, etc)
Investment in the production of goods and services is weak due to:
- difficulties in attracting foreign investment;
- limited enterprise development;
- financing (high interest rates);
- lack of capital for investment in appropriate technology;
- low starting base (Mozambique is just coming out of war).
(e) Is there a national policy to encourage export-related investment opportunities?  Please
elaborate.  What arrangements are in place fo r reviewing, drafting and negotiating contractual
arrangements with foreign investors?
A national policy to encourage and promote export related investment opportunities is in-
place.  An Export Promotion Fund was established to stimulate export activities.  The fund supports
local business in the following activities:
- technical support;
- promotional support;
- financial support;
- support "joint-ventures" initiatives;  and
- participation to International Trade and commercial missions.
In addition, an Export Free Zone has been es tablished complete with competitive incentive
structure for exporters and foreign investors.  A range of incentives are on offer to investors briefly
these include retention of 100 per cent of foreign exchange earning arising from investment;
guarantee to re-export funds royalties, profits and exportable foreign capital.
Mozambique lacks however, the capacity to monitor and develop a comprehensive
mechanism for reviewing, monitoring, drafting contracts and to negotiate these effectively with
foreign investors. Present arrangements fall short of being satisfactory.WT/COMTD/IF/29
Page 10
(f) What are the main obstacles to the transfer, development and acquisition of technology?
Is there any national policy/strategy in this area?  Please elaborate.
There is as yet no national policy and strategy for transfer, development and acquisition of
technology.  However, the Government has recently approved the establishment of the Centre for the
Transfer of Technology.  The development of and implementation of a strategy needs to be accorded
high priority, if Mozambican produced goods and serves are to become competitive.
(g) What are your technical assistance or oth er assistance needs with respect to supply
constraints?
Globalisation as stipulated by WTO/GATT trading arrangements, will expose the
manufacturing sector of poor countries, especial ly those just coming out of war, to greater
competition since these countries will have to operate under conditions of minimum protection.
Moreover, rapid technological changes call for the manufacturing sector to use the best available
technology and modern management tools so as to produce quality products, at competitive prices.Such burden can not be borne by poor economies in transition, with poorly educated and skilled work
force.  The efforts of poor countries to liberalise and reform their economies, under considerable
hardship, should therefore be safeguarded by not only the provision of technical assistance, and the
maintenance of trade preferences but, importantly, through broader access to markets.
Trade Promotion and Trade Support Services
Trade promotion comprises an integrated set of technical and financial services to enhance the
global competitiveness of enterprises and thus facilitate their entry and increasing participation in
international trade.
(h) Do your enterprises, especially small and medium enterprises, experience difficulties in
expanding their exports?  What are these problems in the major export sectors?
Mozambique's small and medium enterprises experience difficulties in expanding and
entering into export markets for the following reasons:
- small enterprises lack broadly based basic education and lack skills in basic business
principles:  pricing, budgeting, costing and marketing;
 - lack of capacity to access markets;- lack of capital to develop products for specific markets;  and
- lack of resources and "know-how" to proactively seek buyers for products and to
finance promotional activities.
(i) What are the problems for your enterprises in obtaining reliable and up-to-date
information on export/import business opportunities?
Generally, enterprises, especially SMEs can not readily access up-to-date information on
export/import business opportunities because of:
- lack of general business education and technical infrastructure that would enable
them to access such information and put it to effective use;  and
- a body of information (on export/import business opportunities) available in English
is not accessible since English is not a widely spoken language (although gradually
changing).WT/COMTD/IF/29
Page 11
(j) Can your enterprises offer products of in ternationally acceptable design, quality and
packaging to foreign buyers?  If not, what are the problems?
The majority of enterprises are not as yet able to offer products of internationally acceptable
design, quality and packaging because of the paucity of skills in these areas, especially design and
packaging.  SMEs lack extensive knowledge about quality bench marks and standards as well as
information about the products/firms they are competing with.  SMEs also lack the capacity toposition their products with optimal use of their comparative advantages.
(k) What problems, other than in terms of trade policy, do you anticipate in developing the
export of services (e.g. computer software, tourism)?
Beyond getting the policy setting on the right track, the development of export services would
require:
- active promotion of Mozambique as a problem-free tourist destination;
- a promotion drive of the industrial free zone and its benefits;- an efficient system of road, port and railway network, connecting production,
manufacturing and marketing centres;
- an efficient telecommunications system;  and
- financing.
(l) What are the technical/professional problems encountered by trade support institutions
(e.g. trade promotion council, chamber of commerce, exporters association, etc) in your country
in providing their services to export/import enterprises?
In providing their services, trade support institutions, of which there are a few, face the
following problems:
- lack of full appreciation of the concept of "providing a service" due to lack of long
established business culture especially, in delivery of services;
- poorly qualified staff;
- cumbersome bureaucracy;  and
- a public sector with limited skills profile.
(m) What problems and deficiencies are experi enced by enterprises in  their international
purchasing and inventory management?
Deficiencies faced by enterprises in their international purchasing and inventory management
are:
- purchasing power, lack of foreign exchange;
- lack of skills in stock control and inventory management;- a general lack of business skills ranging from capacity to negotiate through to
meeting tight deadlines;  and
- lack of knowledge of what is available in the market;  technical specifications,
storage in harbours, planing and stock control.WT/COMTD/IF/29
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(n) What are the present availability and arrangements for trade finance facilities (e.g.
export credit guarantees, etc)?  Are there any perceived deficiencies in this area?
Deficiencies in the present availability and arrangements for trade finance facilities include:
- lack of range and access to export credit facilities;  and
- high cost of credit.
(o) What are the main problems in the way of  improving export/import management skills
of your business enterprises?  Do you have trai ning programmes in the country?  What are the
deficiencies?
Requirements for improving export/import management skills for business enterprises is a
massive training (there are no specific training programs in the country to address these requirements)
program in the following areas:
- Negotiation, contracting and contract management;  planning;  marketing;  export
management, import promotion;  evaluation of import and export processes,budgeting, pricing and costing.
(p) Does your trade representation service actively promote your trade?  What are the
weaknesses?
Trade representatives do not actively promote trade as they often lack accurate information,
lack trade promotional tools and funds to undertake such activities, in particular representationalactivities:
- Trade representatives also need training and upgrading, especially in the areas of
promotional activities, representational;  skills, and lobbying.
(q) Briefly describe your technical assistance needs in the area of trade promotion and
support services.
Technical assistance needs in the area of trade promotion and support services are as follows:
- support in designing strategies for export promotion;
- studies and research of markets and product development;  and
- access to international market network.
Market access
(r) What are your main market access problems?
Mozambique's main market access problems include:
- marketing skills including;  lack of basic knowledge of how markets work and how
markets are developed;
- lack of knowledge/capacity to undertake a qualitative and quantitative market
analysis;  and
- lack of capacity to develop a coherent strategy for selected target markets.WT/COMTD/IF/29
Page 13
(s) What specific problems or barriers, and in which countries, are most troublesome for your
exporters?
Specific barriers and countries troublesome to Mozambican exporters are industrialized countries,
especially for finished industrial products for ex ample agricultural products, textile and food stuff.
(t) Regional and sub-regional trading arrangem ents (RTAs): please list RTAs to which your
country belongs.  Are you satisfied with the performance with these RTAs?  Please state the
problems of each.  Do you have suggestions on how to solve these?
Mozambique has Regional and Sub-regional Trade Arrangements:
- Regional:  Mozambique is a member of African Economic Community; Lome
Convention;  and ACP
- Sub-regional:  Mozambique is a member of the Southern Africa Development
Community (SADC) and a signatory of its Trade Protocol.  Mozambique is fairly
satisfied by its RTA with SADC.
(u) Are there any problems in utilizing the existi ng market access preferences, such as GSP,
GSTP?  Please state the nature of problems relating to each of these.
Problems with regard to Mozambique's effective use of GSP and GSTP steam from poor
familiarisation and knowledge of the real advantages of these schemes.  It would be beneficial to provide
short-term training courses on the benefits of these schemes.  This should be augmented by the provision
of information on the actual mechanics and benefits of these schemes.
(v) What are your technical assistance needs with respect to market access?
Summary of technical assistance n eeds in respect of Market Access:
- training assistance in market developmen t, marketing skills and product development;
- training in strategic planning for targeted markets and products;- resources (information technology) to in crease capacity to undertake qualitative and
quantitative market analysis;  and
- preferential status for some products in industrialised countries.
C. Technical assistance
Technical assistance is normally provided to developing and least-developed countries to build or
enhance their human resources and institutional capacities, provide trade information and trade-related
legal support, as well as improve their supply capabilities in order to make them more active players in thefield of multilateral trade.
(a) To the extent this kind of information is easily available, could you please briefly describe
what trade-related assistance you  have received over the past five years from bilateral and
multilateral sources and what projects/programmes are presently under consideration in this area?
Over the past five years, Mozambique was a recipient of the following trade-related training
assistance:
- ICEP: training in international trade and TA (funded by Portugal);
- CBI: traineeship (funded by The Netherlands);WT/COMTD/IF/29
Page 14
- Norimpod: traineeship and trade fairs;
- PRODEC: short training courses (funded by Finland);
- ITC: seminars in Mozambique and abroad;
- UNCTAD: seminars in Mozambique and abroad;
- WTO: seminars in Mozambique and abroad;
- SADC: seminars in Mozambique and abroad.
During the period 1986-1992, Mozambique benefited from training projects in import and
export financed by the swedish International Development Agency (SIDA), UNDP and ITC.
(b) Please summarize your technical assistance needs as well as other needs as reflected in
this check-list.  Please rank them in terms of priority.
Summary of Technical Assistance needs in order of priority:
- training;  and
- information technology equipment and training of and for the Department of Trade.
Specially as follows:
(i) Training
- Training in negotiation, contracting and contract management;  planning;
marketing;  export management, import promotion;  evaluation of import and export
processes;
- a series of practical , well organised and focused seminars/workshops on
specific themes of aspects of WTO Agreements for representatives of both the private
and the public sectors.  Following such a seminar, better dissemination of WTO rules
and regulations.  Other specific areas are:
- multilateral trade systems on WTO issues;
- seminars on the mechanism of WTO Agreements;
- assistance with the formulation of an export promotion strategy;
- provision of trade information;
- training in market studies and market development;
- assistance with the management aspects of production, packaging
and marketing of goods in accord with international standards;
- agricultural and textile WTO Agreements;
- development of a strategy to attract trade related investment
(TRIMS);
- dispute settlement and WTO rules on anti-dumping;- subsidies, rules of origin and nullification process to WTO;  and
- TRIPS and negotiation under WTO rules.
(ii) Information Technology
- Information/communication technology equipment for the Department of
Trade;
- provision of training to middle and senior managers of the Department of
Trade.WT/COMTD/IF/29
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(c) In the light of the information you have been able to provide so far in response to the
questions in this check-list, what types of information are, in your view, still missing or could be
improved upon?  In order to assist you in providing this missing information, would you need
technical assistance?
- Short-term technical assistance would be required to verify technical assistance
requirements, systematise these requirements and design the technical cooperationprogram envisaged in this report.
(d) Does your country have the technological ca pacity and human resources to make use of
the new information/communication technology to ols such as CD-Rom, the Internet etc.?  What
assistance would you need to enable your country to use these tools in the context of training
and, more generally, in the context of trade development?
Mozambique has human capacity capable of learning how to make use of the new
information/communication technology tools (CD-Rom,  internet).  Mozambique lacks however the
following:
- capacity to finance and fully equip the trade department with the new information
technology;
- assistance needed to enable use of such tools in the context of training and more
generally, in the context of trade;
- information/communication technology equipment for the Department of Trade;
- provision of training to middle and senior  managers of the Department of Trade.WT/COMTD/IF/29
Page 16
INTEGRATED RESPONSES BY IMF, ITC, UNCTAD,
UNDP, WORLD BANK AND WTO
MOZAMBIQUE
Technical assistance needs identified in
the questionnaireOrganization Response
In reply to question A(k):
Technical assistance requirements as
regards compliance with WTO
Agreements
A series of practical, well organised and
focused seminars/workshops on specificthemes for representatives of both the
private and public sectors.  Following such
seminars, better dissemination of
information on WTO rules and regulations
and on WTO procedures is imperative.WTO A national seminar will be held in 1998.
A three-week trade policy course for
African English speaking least-developed
countries will be held in 1998 and 1999.
Specialized regional seminars and/or
workshops on WTO provisions will be
organized in 1998 or 1999 for English-
speaking LDCs.
UNDP Through an umbrella project which is now
being designed with the Ministry of
Industry, Trade and Tourism, UNDP could
also address part of this request.WT/COMTD/IF/29
Page 17
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(l):
Technical assistance needs as regards
specific WTO Agreements
Assistance with the management aspects of
production, packaging and marketing of
goods in accordance with internationalstandards.
Agricultural and Textile Agreements UNCTAD A dvice and training on the impact of the
WTO Agreements and in preparation of
future negotiations under built-in agendacan be provided.
*
WTO See A(k).
Development of a strategy to attract trade-related investment (TRIMS)UNDP UNDP will finan ce an international seminar
in June 1998 on Foreign Direct Investmentin Mozambique.
UNCTAD Advice can be provided on the development
of an investment promotion strategy to
complement any World Bank activities inthis area.
*
World Bank The ongoing Industrial Enterprise
Restructuring Project supports the Centrefor Promotion of Investment and the Export
Promotion Institute.
Dispute settlement and rules on
anti-dumpingWTO See A(k).
Subsidies, rules of origin and notification
proceduresWTO See A(k).
TRIPS and negotiations under WTO rules WTO See A(k).
                                                     
*Funds are requested.WT/COMTD/IF/29
Page 18
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(m):
Assessment of the existing trade analysis
and negotiating capacities
Mozambique's existing trade analysis and
negotiation capacity at both multilateral
and bilateral levels is severely limited dueto:
- lack of highly skilled personnel to
undertake trade analysis, limited capacity
to access available data, and capacity tosystematically collect and collate data andresources (information technology).IMF Information technology assistance with
respect to customs administration and
computerization to improve revenuecollection. (Agreement in principle
1998/99)
WTO The three week Trade policy course (See
A(k)) will reinforce capacity building.
During such a Trade policy course
negotiating capacities will be addressed anda training for a better participation in
multilateral trade negotiations will be
undertaken.
World Bank Trade policy issues are being addressed
with Government in the context of the
on-going adjustment credit (the ThirdEconomic Recovery credit) and the next
one, (the Fourth Economic Recovery
Credit).
Work on effective protection will be carried
out with Government in the context of next
Economic Sector Work (Growth ProspectsStudy).
Trade facilitation, including customs reform
and review of regulations, is being financedthrough the First Roads and Coastal
Shipping project.
The Statistics Strengthening Project
provides financing to the National Statistics
Institute with the result that customs data on
imports and exports are now recorded in atimely manner.WT/COMTD/IF/29
Page 19
Technical assistance needs identified in the
questionnaireOrganization Response
Question A(m) (cont'd.):
ITC/
UNCTAD/UNDPThrough the Capacity Building for Trade
and Development Project (RAF/96/001),support in improving trade negotiating
capabilities and training of trainers will be
provided to strengthen the capacity of the
Government to formulate trade policies and
to assist the business community in relatedefforts to penetrating foreign target markets.
- a deficit of qualified personnel incommercial and contract law, competitionpolicy, as well as for issues related to tradeand environmental regulations.UNCTAD An initial mission on competition policy is
foreseen to be undertaken in 1998.
Advice and training on competition policy
and environmental regulations can beprovided.
*
World Bank The Industrial Enterprise Development
Project finances the revision of the business
laws.  The Legal and Public Sector
Capacity Building project has a component
to strengthen the judicial system.
Environmental regulations related to tradecould be addressed in the framework of the
Global Environmental Facility managed by
the World Bank subject to a request by theMinistry of Environment.
                                                     
*Funds are requested.WT/COMTD/IF/29
Page 20
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(g):
Technical assistance needs as regards
supply constraints
Securing broader access to export markets ITC See ITC replies under B(q).
World Bank The ongoing Industrial Enterprise
Restructuring Project supports the Institutefor Export Promotion.
(See A(l)).WT/COMTD/IF/29
Page 21
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(q):
Technical assistance needs in the area of
trade promotion and support services
Support in designing strategies for export
promotion.World Bank The ongoing Industrial Enterprise
Restructuring Project supports the Institute
for Export Promotion. Its follow up, theEnterprise Development Project, which is
under preparation, will continue to support
the Institute for Export Promotion and willinclude export financing facilities.
ITC/UNDPThe Integrated Trade Development Support
Programme (ITDSP) based on the ITCmission to Mozambique of December 1997
includes the formulation of an export
promotion strategy encompassing selected
high-export potential products.
*
Consultations are ongoing with the World
Bank.
Studies and research of markets andproduct development.World Bank The Enterprise Restructuring Project will
include a matching grants component tosupport research and technological change.
ITC/UNDPUnder the Integrated Trade Development
Support Programme (ITDSP) a number of
market surveys will be carried out and
product adaptation and development
activities for the benefit of export-orientedenterprises will be conducted in closecollaboration with IPEX.
*
In addition, the participation of selectedenterprises in pan-African buyers-sellers
meetings will be secured under the ongoing
ITC programmes aiming at intra-Africantrade development.
Access to international market networks. World Bank Envisaged under the Planned Enterprise
Development Project.
                                                     
*Funds are requested.WT/COMTD/IF/29
Page 22
Technical assistance needs identified in the
questionnaireOrganization Response
Question B(q) (cont'd.):
ITC/
UNDPAs part of the COMESA programme, trade
information networking under Trade
Information Network (TINET) will be
strengthened, along with other trade support
functions in the field of trade information ofthe Ministry of Trade, the Chamber ofCommerce and IPEX.WT/COMTD/IF/29
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Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(v):
Technical assistance as regards market
access
Training in market development, marketing
skills and product development.ITC/
UNDPUnder the Integrated Trade Development
Support Programme (ITDSP) specific
training modules in export marketing andbusiness development for managers of
export-oriented enterprises will be
developed.  Direct training as well astraining of trainers will be provided.
World Bank Envisaged under the Planned Enterprise
Development Project.
Training in strategic planning for targetedmarkets and products.ITC/
UNDPSee above.
Resources (information technology) to
increase capacity to undertake qualitative
and quantitative market analysis.UNCTAD TRAINS CD-Rom will continue to be
provided.
Preferential status for some products in
industrialised countries.UNCTAD An advisory mission on the effective use of
the GSP rules and the Lomé Convention is
foreseen in 1998.WT/COMTD/IF/29
Page 24
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question C(b):
Summary of technical assistance needs
according to priority
Training
Training in negotiation, contracting and
contract management, planning, marketing,
export management, import promotion,evaluation of import and export processes.ITC See A(m) and B(v).
UNCTAD See A(l) and A(m).
UNDP See A(l) and A(m).
WTO See A(k), A(l) and A(m).
A series of practical, well organised and
focused seminars/workshops on specific
themes of aspects of the WTO Agreements
for representatives of both the private and
public sectors.  Following such a seminar,better dissemination of WTO rules and
regulations.WTO See A(k), A(l) and A(m).
Seminars on the mechanics of WTO
Agreements.WTO See A(k), A(l) and A(m).
Assistance with the formulation of an
export promotion strategy.ITC See B(q).
World Bank See A(m).
Provision of trade information. ITC See B(q).
 UNCTAD See B(v).
World Bank First Roads and Costal Shipping Project
finances customs reform, including thesetting up of a new (modern) software
system to register export and import flows.
See A(m).
Training in market studies and marketdevelopmentITC See B(v).WT/COMTD/IF/29
Page 25
Technical assistance needs identified in the
questionnaireOrganization Response
Question C(b) (cont'd.):
Assistance with the management aspects of
production, packaging and marketing of
goods in accord with international
standards
WTO Agricultural and Textile Agreements UNCTAD See A(l).
WTO See A(k), A(l) and A(m).
Development of a strategy to attract traderelated investment (TRIMS)UNCTAD See A(l).
UNDP See A(l).
World Bank See A(l).
Dispute settlement and WTO rules on anti-
dumpingWTO See A(k), A(l) and A(m).
Subsidies, rules of origin and notification
proceduresWTO See A(k), A(l) and A(m).
TRIPS and negotiations under WTO rules WTO See A(k), A(l) and A(m).
Information technology
Information/communication technology
equipment for the department of tradeWTO See C(d).
ITC See B(q).
Provision of training to middle and senior
managers of the Department of Trade.ITC Under the Integrated Trade Development
Support Programme (ITDSP), direct
training of IPEX and Ministry of Trade
staff will be provided on issues ofinternational marketing.  Ways and means
to provide effective trade support services
to the business community will also beanalyzed.
WTO See C(d).WT/COMTD/IF/29
Page 26
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question C(c):
Additional information
Short-term technical assistance would be
required to verify technical assistance
requirements, systematise these
requirements and design the technicalcooperation program envisaged in
Mozambique's needs assessment.UNDP Could finance short-term mission in order
to help formulate technical assistance
requirements within the context of the
Integrated Framework.WT/COMTD/IF/29
Page 27
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question C(d):
Technical assistance needs in the area of
information technology including training
of human resources
Information/communication equipment for
the Department of TradeWTO One computer will be provided to the
Department of Trade Industry &Employment. This will include a link to the
Internet.
Assistance to enable use of such tools in
the context of trainingWTO Training on access and use of Internet
resources and CD-Roms will also beprovided.
UNDP The regional Program on Internet
(RAF/96/021) will organize workshops inthe subregion where two or three
representatives of Mozambique will be
invited to participate.
Training of middle and senior managers ofthe Department of TradeITC See C(b).
WTO Training on access and use of Internet
resources and CD-Roms will also beprovided.
__________