WORLD TRADE
ORGANIZATIONWT/TPR/M/86
17 September 2001
(01-4350)
Trade Policy Review Body
26 and 28 June 2001
TRADE POLICY REVIEW
GABON
Minutes of Meeting
Chairperson:  H.E. Mr. Pekka Huhtaniemi (Finland)
Page
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON   2
II.. OPENING STATEMENT BY THE REPRESENTATIVE OF GABON   3
III. STATEMENT BY THE DISCUSSANT   6IV. STATEMENTS BY MEMBERS OF THE TRADE POLICY   9
REVIEW BODY
V. REPLIES FROM THE REPRESENTATIVE OF GABON AND  14
ADDITIONAL COMMENTS
VI. CONCLUDING REMARKS BY THE CHAIRPERSON  16
Note: The advance written questions from WTO Members and the replies of the delegation of
Gabon are reproduced in document WT/TPR/M/86/Add.1.WT/TPR/M/86
Page 2
INTRODUCTORY REMARKS BY THE CHAIRPERSON
1. The first Trade Policy Review of Gabon was held on 26 and 28 June 2001.  The Chairperson
welcomed the delegation of Gabon, led by H.E. Mr. Alfred Mabika, Minister for Trade and Industry,
responsible for the promotion of investment and regional integration, and the discussant,
Mr. Philip Musquar (European Communities).  As was customary, the discussant spoke in a personalcapacity.  In accordance with the established procedure, the discussant had made available, in
advance, an outline of the main issues he intended to raise (WT/TPR/D/65).
2. The Chairperson recalled the purpose of the Trade Policy Reviews and the procedures for the
meeting.  The report of the Government of Gabo n was contained in document WT/TPR/G/86, and that
of the WTO Secretariat in document WT/TPR/S/86.  The delegation of Gabon had received copies of
the written questions submitted by the delegations of:  Canada;  Hong Kong, China;  India;  Japan;
European Union;  United States;  and the Republic of Korea (Annex I).  The written responses by thedelegation of Gabon to these questions and others raised during the meeting are reproduced in
Annex II.WT/TPR/M/86
Page 3
II. OPENING STATEMENT BY THE REPRESENTATIVE OF GABON
3. The representative of Gabon emphasized that his country was not like its neighbours
inasmuch as it had a high per capita GDP, estimated at US$4,000, although it was very similar in
other respects, according to its human development index.
4. Gabon was an underdeveloped country:  the electric power enjoyed by the citizens of
Libreville (the capital) contrasted with the absence of street lighting in rural areas:  the State still had
to supply drinking water;  the methods used to combat disease were not particularly up-to-date;  and
the education crises reflected the scope of Gabon's needs.  Gabon was a country where the level of
development of roads, housing and transport was not the result of a deliberate choice but a reflection
of inadequate financial resources.
5. The presence of the Gabonese delegation at the meeting of the Trade Policy Review Body
underlined the determination of the Government of Gabon and its Head of State, H.E. El Hadj OmarBongo, to observe the commitments it had made under the Marrakesh Agreements and, above all, to
work towards Gabon's integration into the multilateral trading system, which Gabon wished to see
fair, equitable and developing gradually but surely.
6. Gabon undertook to respect its commitments, but in return, it expected that its concerns
would be heeded.
7. The Government of Gabon was convinced that the benefits of free trade, as well as the
advantages of trade liberalization and facilitation, would help to strengthen the national economy's
production capacity and thus integrate Gabon still further into the multilateral trading system.  The
new Commercial Code (in preparation) and the other domestic measures taken to modernize the legal
and regulatory structure, together with the reform of the Common External Tariff (CET) and theCustoms Code of the Central African Economic  and Monetary Community (CAEMEC) which the
Government strongly supported, reaffirmed this conviction.  Attention should also be drawn to the
progress being made towards subregional community integration, with a potential market of around
100 million people, in the context of the Economic Community of Central African States (ECCAS).
8. To achieve integration, Gabon's economy must enhance its capacity to produce and sell.  That
was not possible in an economy that was highly dependent on State finance which in turn depended
on oil revenue, whose fluctuations caused upturns or downturns in the economy, a situation that was
hardly favourable to the implantation of sustainable growth.
9. These cycles had an effect on production as a wh ole and did not allow the State to support the
production sector by developing and maintaining the infrastructure, providing ongoing training, and
improving the people's health.  The result was a lack of new activities and problems for existing
enterprises, a situation that was exacerbated by unemployment and the rural exodus.
10. In addition, special short-term revenue from oil ha d to be used to service the external debt so
the national economy was deprived of resources it needed to function smoothly, but did not receive
supplementary flows of external investment in exchange.  Between January 2000 and March 2001,
around US$1 billion had been used for reimbursement of the external debt, as against income
estimated at almost US$2 billion over the same pe riod.  Debt servicing took up almost 60 per cent of
the State's resources and had thus become an insupportable burden on the budget.
11. The Government's main objective was to lay down the base for sustainable growth, a
precondition of any poverty-reduction policy.  In order to reach this objective, Gabon based its action
on:   enhancing transparency and good governance so as to improve the State's financial management
and the effectiveness of public spending;  consolidation of public finance through measures designedWT/TPR/M/86
Page 4
to make the best use of tax revenue and reduce public spending;  and also diversification of
production centred on the private sector.
12. The Government therefore continued to withdraw from production activities and to improve
the legal and regulatory framework for private inve stment.  In accordance with those priorities, the
programme for the State's withdrawal focused on key enterprises such as the Post andTelecommunications Office (OPT), AGROGABON (production of vegetable oil), HEVEGAB
(natural rubber), the Gabon Forestry Company (processi ng of timber), the Ports and Harbour Office of
Gabon (port services).
13. Parliament had approved some implementing texts for the Investment Charter, enacted in
1998, for example, the Mining and Forestry Codes.  In addition, an agency to promote private
investment had been set up.  But all those long-awaited reforms, including reform of the civil service,
could only have an impact if the debt burden was alleviated.
14. The Paris Club's traditional solution of rescheduling had not resolved any problems, on the
contrary, it had exacerbated them:  some credits had even been restructured at distinctly higher market
rates than those for the credits they refinanced.  With a drop of 50 per cent in oil production, earnings
in this sector would fall at a time when the major part of the rescheduled debt at compound interest
became due.
15. A solution to the structural problem of the current public debt must be found.  The traditional
method of rescheduling would only help to foster an  extremely costly illusion for future generations.
Consequently, the donors of yesterday, who had beco me the creditors of today, should not object to
any genuinely favourable examination of Gabon's debt as other countries had already received such
treatment and their adjustment efforts were similar to those of Gabon.  Gabon was awaiting a gesturefrom the international community that would decisively change its future and would certainly have an
effect on other countries in the subregion.
16. Trade was based on development, which was not only a physical process but also a process
that should be under man's control.  In order to develop and become fully integrated in the global
trading system, Gabon should strive to obtain effective rights of ownership.  Such a process requiredcapacity building, especially of trained human resources, together with a high level of domestic
saving so as to build up national or regional capital, and it meant choosing the region as the political
and economic arena.  This lengthy process would require support from the WTO and development
partners in order to achieve two objectives:  socialization of globalization and democratization of the
multilateral institutions.
17. Socialization of the economy would allow one  of the marked weaknesses of the economic
world today to be attenuated:  the inequality in the distribution of the world's wealth.Democratization of institutions would ensure that the interests of all countries were taken into account
to a greater extent when rules, measures and strategies were drafted, while at the same time ensuring
correct application of the rules governing multilateral trade.
18. The Government of Gabon was willing to participate in developing multilateral and
international trade, but gradually and surely.  With a view to future negotiations, a joint agreed and
harmonized African position was needed and should lead to:  (i) mechanisms guaranteeing better
access to markets in developed countries for products from the developing countries;  (ii) capacity-
building strategies and programmes for the implementation of the Agreements;  (iii) addressing the
issue of obstacles to development;  (iv) a global WTO/developing countries partnership in order to
promote sustainable development strategies and combat poverty;  and (v) renewed support by theWTO for the European Union's policy in favour of  ACP countries within the framework of the new
ACP-EU partnership.WT/TPR/M/86
Page 5
19. Gabon affirmed that it would make even greater efforts within the WTO and that the progress
already made would be consolidated and pursued, starting with notifications.WT/TPR/M/86
Page 6
III. STATEMENT BY THE DISCUSSANT
20. The discussant drew attention to two major paradoxes in the Gabonese economy.  The first
concerned the debt problem.  Although Gabon exported petroleum, manganese and timber and had
trade surpluses, the public debt had become an insupportable burden on the State's budget.  The
fluctuations in oil revenue, due to the level of production and prices, did not suffice to explain theamplitude of the debt problem.  Excessive and possibly inappropriate public spending was obviously
one of the causes.  Gabon should therefore continue to follow the stringent policies implemented with
the support of the Bretton Woods institutions.
21. The second paradox was that the Government of Gabon's firm and unwavering commitment
to the WTO and the multilateral trading system coex isted with significant problems in implementing
the commitments at all levels.  One illustration of this was the tariff sector.  Unlike other countries in
the region, Gabon had bound all its tariff lines, both for agricultural and non-agricultural products.The ceiling rates for this binding, 15 per cent and 60 per cent respectively, were reasonable bearing in
mind Gabon's level of development.  In 2000, however, the rates applied exceeded the bound rates for
approximately 40 per cent of the tariff lines and five products that had been bound were subject to
import bans.
22. This was a serious problem that should not be taken lightly.  Tariff commitments and the
binding of customs duties constituted the historic basis for the GATT and the principles on which it
was based underpinned all the rules and disciplines that now constituted the multilateral trading
system.  Respecting these commitments and the a ccompanying procedures, not exceeding the levels
bound in the certified schedule, were practical proof of one's membership of the system and
confirmed to other Members that one was a reliable trade partner.  Failing to do so, on the other hand,was to be in violation and to be recklessly exposed to criticism at the diplomatic level, as was the case
of Gabon, or to legal contestation, which would obviously be much more discomfiting.  The
discussant therefore noted that the Gabonese authorities had indicated that they were aware of the
problem and intended to remedy it, and he wished to draw their attention to the need for an urgent
solution.
23. The solution meant either lowering the duties a pplied so as to bring them down to the levels
in the schedule or renegotiating the bound duties in order to align them on the levels actually applied.
24. The constraints arising from the introducti on of the CAEMEC Common External Tariff
would appear to prevent Gabon from choosing the first option.  The abolition of the temporary
surcharge would constitute a first step in the right di rection.  This surcharge should have been applied
up to 30 June 2000, but in April 2001, Gabon had still not abolished it.  What was the situation today?
What were the intentions of the Gabonese authorities in this respect?
25. The second option, namely, to renegotiate the duties bound for the tariff lines that gave rise to
problems, would mean following the procedures laid down in Article XXVIII of the GATT 1994.
The Government of Gabon had declared its intention to utilize this provision and to start renegotiating
tariff concessions with France, its major trade partner.  According to Article XXVIII, however,
precise rules had to be observed.  Moreover, as trade policy was part of the Community's competence,Gabon would have to negotiate with the Commission and not with France.  Technical assistance
would be needed for this purpose and the WTO Secretariat had already been contacted in this respect.
26. The geographical distribution of Gabon's international trade showed a very low proportion of
exports to member countries of CAEMEC and other tr ade partners in Africa.  This situation could be
explained, inter alia , by the fact that the economies in question were not really complementary and
also by Gabon's physical and human geography, which did not lend itself to increased trade with its
neighbours.  This economic and trade policy, largely dominated by the goal of regional integration,WT/TPR/M/86
Page 7
had yielded few benefits in terms of creating trade.  Had the Gabonese authorities considered this
aspect and did they question the validity of the approach followed?
27. Gabon's participation in the CAEMEC could faci litate relations with the EU as the former
could serve as the intermediary for the conclusion of a regional economic partnership agreement
within the framework of the Cotonou Agreement.  How did the Gabonese authorities view thispossibility?  In view of the budgetary and financia l difficulties, what did the Government feel about
the prospect of a significant drop in tax revenue as a result of the introduction of reciprocity in the
preferential relationship with the EU?  How did it intend to deal with this problem?
28. Gabon exported raw materials, particularly oil, which accounted for 82 per cent of its exports
in 2000.  In recent years, however, Gabonese production had continued to decline due to ageing of the
major oil fields.  Although the economic effect of the decline varied from year to year according to
price fluctuations, it would appear that this resource would eventually be exhausted thus compellingthe Gabonese Government to undertake a thorough modernization of its economy.  Gabon's success in
diversifying its economy, thus making it less dependent on oil, would also depend on the positive
outcome of its partnership with the EU and its integration into global, regional and subregional trade.
29. A new policy meant developing to the maximum other natural resources.  Gabon was the
second producer of manganese and also had reserves of phosphates, niobium, iron and barite.  Themost promising sectors that could support the economy in the after-oil era appeared to be forestry and
fisheries.  Accelerated development of fisheries and aquaculture had the considerable advantage of
lessening Gabon's food dependency on foreign countries, while at the same time allowing exports to
increase.  Fisheries and forestry also afforded the possibility of industrial value added if on-the-spot
processing was promoted, and that was another priority for the Gabonese Government.
30. The recent adoption of a new Forestry Code represented a step towards sustainable
management of renewable resources, which sh ould be complemented by investment.  The
introduction of an overall framework favourable to investment was one of the main reasons for
Gabon's membership of the WTO.  In addition to tariff protection and transparent and predictable
customs regulations, the liberalization of basic services (for example, transport, telecommunicationsand financial services), the effective protection of intellectual property rights, the introduction of a
proper competition policy as an indispensable complement to a sustained privatization process, were
all elements that could help to make Gabon an attractive destination for international investment and
could catalyse economic activity.  Gabon's strong support for the WTO's activities underlined its
determination to continue along this path.  In order to be truly successful, however, Gabon should not
neglect the political and human aspects of such a process.
31. The Report by the WTO Secretariat quite rightly mentioned problems of governance in
general and corruption in particular affecting Gabon.  This factor, which did not affect Gabon alone,
was continually cited by international investors as an insurmountable obstacle to the establishment of
healthy and mutually fruitful business relations.  The Gabonese Government had undertaken to submit
a draft law on this question before the end of 2000.  What was the current situation?  What practical
measures had been taken or were envisaged in this respect?
32. Another concern was the fact that social indicators (health, education) showed that Gabon
lagged far behind in comparison with its income level.  It only occupied the 124
th place (out of 174) in
the UNDP's Human Development Index.  Although the public debt and the new budgetary austerity
policy severely restricted the Government's ability to act, the population's well-being and covering its
essential needs should remain both the ultimate objective and an essential tool of any economic policyworthy of the name.WT/TPR/M/86
Page 8
33. In conclusion, the discussant proposed that the review of Gabon's trade policy should serve as
a catalyst at three levels.  Firstly, at the level of the Gabonese authorities themselves, which should
use the opportunity afforded by the review to take  stock of all their obligations under the multilateral
trading system, as well as the many and real opportunities it offered.  Secondly, at the level of other
Members of the WTO present at the meeting, which should also be aware of the significant problemsfaced by Gabon in integrating into the international economy in some way other than through
declining sales of oil, and they should also give Gabon their full support during this delicate transition
period.  Thirdly, at the level of all Members of the Organization, which, on the eve of a new WTO
Ministerial Conference, would be well advised to take  inspiration not only from the review of Gabon's
trade policy but from all the reviews of the trade policies of a number of developing and least-
developed countries in their endeavours to reform the multilateral trading system and ensure that it
moved forward in a direction that would truly bene fit these countries and allow them to become fully
integrated in the globalized modern economy.WT/TPR/M/86
Page 9
IV. STATEMENTS BY MEMBERS OF THE TRADE POLICY REVIEW BODY
34. The representative of Canada welcomed the efforts made by Gabon to reform its economy
and combat corruption.
35. The customs tariffs applied by Gabon exceeded the levels bound for 40 per cent of tariff lines.
Gabon should act in conformity with its obligations in the WTO.
36.  Canada intended to deal with intellectual property matters in the context of the process
established by the TRIPS Council for the implementation of the TRIPS Agreement.
37. The representative of Hong Kong, China ac knowledged the difficulties encountered by
developing countries in implementing the WTO Ag reements:  technical assistance was needed to
improve their capacity to fulfil their WTO obligations.  For this purpose, Hong Kong, China had
recently contributed Sw F 1 million to finance the WTO's technical assistance activities in favour of
developing countries.  Hong Kong, China considered that any new WTO negotiations should take intoaccount the needs of developing countries and serve the interests of all Members.
38. Hong Kong, China encouraged Gabon to:  (i)  further simplify its tariff regime by abolishing
the temporary surcharge so as to bring down the rates applied that exceeded the bound rates;  and
(ii) to give national treatment to imported products as regarded the application of excise duties and
value added tax (VAT).  The reduction in the dutiable value of locally-produced products did notapply to imports.  In the case of VAT, certain local transactions and products were charged a lower
rate.  Those measures appeared to be inconsistent with the principle of national treatment laid down in
the GATT 1994.  Hong Kong, China encouraged the Government of Gabon to take action to rectify
the situation.
39. Regarding services, Hong Kong China, noted that Gabon's schedule of specific commitments
under the GATS was confined to four sectors:  financ ial services, hotel and restaurant services, certain
business services, and certain construction and related engineering services.  Hong Kong, China
called on Gabon to make commitments in other sectors in the course of the negotiations on services.
40. The representative of India noted that, as a result of the increase in oil prices, Gabon's
economic situation had improved.  Gabon had long been confronted with the problem of the external
debt.  The reduction in oil revenue had also worsened the unemployment problem and complicated
debt management.  The authorities should speed up the diversification process.  India wished to hear
Gabon's views and know what measures were envisa ged in order to encourage the growth of the
private sector and expedite diversification of the economy.
41. India supported the Government's initiatives to stimulate food production.  A reduction in the
food import bill would allow foreign currency to be used to import the items required to build up the
industrial base and promote the country's economic development.
42. Gabon had invaluable assets in financial services, telecommunications and engineering.  The
current negotiations on services would help Gabon to exploit its comparative advantage in the tourism
sector.  India would like to know what were the objectives of the Government's policy on services.
43. India supported the request for technical assistance to implement the Agreements on
Technical Barriers to Trade (TBT), the Application of Sanitary and Phytosanitary Measures (SPS),Agriculture and the TRIPS Agreement.WT/TPR/M/86
Page 10
44. The representative of Japan welcomed the measures taken to diversify the economy and
Gabon's commitment to the multilateral trading system.  Japan had already provided assistance in the
areas of agriculture and development of human resources and intended to continue supporting
Gabon's efforts.
45. Gabon had bound its customs duties for all tariff lines during the Uruguay Round.
Nevertheless, in 2000, the rates applied exceeded the levels bound for approximately 40 per cent of
the lines.  Japan would like to know how th e Government intended to remedy this.
46. With regard to excise duties, a certain number of locally-produced products such as beer,
wine, mineral water and tobacco could sometimes be subject to treatment that was different to that
granted to imported products, and this was not consistent with the principle of national treatment.
47. Gabon was a member of the African Intellectu al Property Organization which, in 1999, had
revised the Bangui Agreement so as to bring it into  line with the TRIPS Agreement.  Japan would like
to know what measures had been taken to implement the Agreement after ratification.  Japan expected
that the relevant notifications would be made before the TRIPS Council reviewed the question in
November 2001.
48. The rural exodus had led to an increase in food demand in urban areas, although the
production capacity of Gabonese farmers was limited by their low level of productivity.  Japan wouldlike to know about the horizontal measures introduced, which were targeted at specific products and
took the place of traditional subsidy measures.
49. The representative of the European Union r ecalled that, under the ACP-EU partnership
agreement, Gabon benefited from a non-reciprocal duty-free regime for industrial products and
processed agricultural products.   A regional economic partnership agreement between the EU and theCAEMEC or a bilateral agreement could also be envisaged.
50. In addition, Gabon would apply the Common External Tariff of the CAEMEC to third
countries and abolish tariffs for member countries of the CAEMEC, while at the same time
implementing the CAEMEC's competition policy.
51. The EU supported Gabon's request for technical assistance and called on it to assess its needs.
It also requested explanations regarding the tariff level applied, which was above the bound level, and
on the practical measures envisaged in order to remedy this.
52. The EU enquired:  (i) when did Gabon intend to abolish the temporary surcharge applicable to
a list of imported products erga omnes ;  (ii) whether Gabon envisaged anti-dumping protection and
countervailing measures;  and (iii) whether the authorities wished to make more substantial
commitments under the GATS and Protocols IV and V thereto?  Lastly, the EU encouraged Gabon to
support the new round of multilateral trade negotiations.
53. The representative of the Republic of Korea encouraged Gabon to pursue its efforts to
diversify its economy, and drew attention to the technical assistance activities financed by Korea.  He
expressed his hope that trade relations betw een the two countries would develop further.
54. Certain measures currently in place appeared to discourage foreign investment in Gabon.  For
example, the high tax levels resulting from a combination of VAT, customs duties and excise duties,hampered the activities of foreign companies.  Korea requested the Gabonese authorities to resolve
this matter so as to facilitate foreign investment in Gabon.WT/TPR/M/86
Page 11
55. Korea and Gabon had initiated negotiations on an investment guarantee agreement and Korea
would like to know the opinion of the Gabonese Government on the subject.
56. The representative of the United States drew attention to Gabon's contribution to political
stability in the subregion, the work of the Peace Corps, cooperation in the context of the Central
African Regional Programme for the Environment, as well as the volume of trade between the twocountries.  The United States supported Gabon's action to liberalize and diversify its economy.
57. Under the law entitled the "Afr ican Growth and Opportunity Act", Gabon could export a wide
range of products to the United States free of duty.  In 2000, a bilateral agreement with the Overseas
Private Investment Corporation had been signed and should help to increase United States investment
in Gabon.
58. The United States welcomed the active participation of Gabon and the African Group in the
GATS negotiations:  trade in services was important for Africa.  The United States also consideredthat Gabon's specific commitments on financial services and tourism were important steps towards
expanding its economic growth and would like to see the commitments extended to the
telecommunications and other sectors.
59. Regarding the implementation of the Customs Va luation Agreement, the United States noted
that it had been delayed and urged Gabon to take the necessary measures.
60. The United States welcomed the establishment of a National Supervisory Committee to
monitor the WTO Agreements and urged the Government of Gabon to increase its efforts to improve
interministerial coordination and interaction with technical and private-sector institutions so as to
increase the number of timely notifications.
61. The United States was concerned by:  (i) the fact that 40 per cent of tariff lines exceeded
Gabon's commitments and it urged the Government of Gabon to take the necessary mesures in this
regard;  (ii) the temporary surcharge, which should have been abolished on 30 June 2000 and was yet
still in place;  and (iii) protection of copyright, which was still hindered by the timid role of the
customs and economic police and by the fact that the Agence Nationale de Promotion Artistique et
Culturelle  was not yet in operation.
62. Gabon had taken measures to improve customs clearance procedures, but there were delays
and inconsistencies in their implementation.  Overly bureaucratic and expensive customs clearance
could be a strong deterrent to trade.  The United States therefore urged Gabon to take steps to address
the problem.
63. Investment was hampered, inter alia , by high costs and by various non-tariff barriers to trade.
Telecommunications, air transport, the ports and oil refining were managed by inefficient para-statals
and had been targeted for privatization.  The United States called on Gabon to speed up theprivatization process and reaffirmed its willingness to help Gabon both at the bilateral and multilateral
levels.
64. The representative of Nigeria welcomed the efforts made by Gabon to observe its
commitments in the WTO, despite the difficulties encountered.
65. The representative of Mauritius recalled the phases in the reform process initiated by Gabon
in order to diversify its economy, which included the adoption of a new Investment Charter, the
updating of sectoral codes and, in particular, the Mining and Tourism Codes.  The economy could not
be diversified without the necessary technological and technical support and without secure access for
certain products.  Mauritius urged Gabon to increase its agricultural production by developing theWT/TPR/M/86
Page 12
fisheries sector in order to overcome its food security problems.  Mauritius understood Gabon's non-
trade concerns relating to its agricultural policy.  Giving farmers access to finance could help to
develop more productive agriculture.  Developing the services sector by raising the
telecommunications density, promoting tourism and developing industrial activities were also
important.  Mauritius hoped that Gabon would receive the necessary international support in order topursue its development successfully.
66. The representative of Madagascar, which was a friend to Gabon and a fellow member of the
OAU and the ACP Group, said that he shared Gabon's concerns and encouraged it to continue with
the reforms already initiated.
67. The representative of Morocco noted that the reforms undertaken in several key sectors of the
Gabonese economy underlined Gabon's determination to become integrated in the global economy
and to observe the Marrakesh Agreements.  Morocco shared Gabon's concerns regardingimplementation, particularly in relation to customs valuation, and hoped that technical assistance
would be made available in this respect.  Gabon had played an important role at the meeting of
African Ministers of Trade, whose declaration would constitute a point of reference for a joint African
position on the eve of the Doha conference.
68. The representative of Senegal welcomed the opening up in Gabon and the latter's economic
dynamism.  He enquired which products were affected by the rates that exceeded those bound,
whether there had been any retaliatory measures on the part of Gabon's trade partners, and how Gabon
intended to remedy this situation?
69. The representative of Congo drew attention to the concerns common to both countries.  The
determination to reduce food imports explained why young people were being encouraged to return to
the land, and also the great efforts being made to transport goods between th e two countries.  Congo
expressed its gratitude for the efforts made by the President of Gabon in favour of peace.
70. The representative of Barbados commended Gabon on its efforts to diversify its economy and
encouraged it to persevere with a view to becomi ng fully integrated into the multilateral trading
system.
71. The representative of Malaysia drew attention to the challenges faced by Gabon in
diversifying its economy, liberalizing trade and improving investment legislation.  Malaysia was one
of Gabon's partners and was ready to increase trade with Gabon.  It also recognized that technical
assistance was needed in support of Gabon's efforts to implement the WTO Agreements.
72. The representative of Brazil applauded the efforts made by Gabon to modernize its economy
and political system.  Brazil would like to know what were Gabon's expectations in relation to foreign
investment and what impact that could have in reducing dependence on oil?  Brazil also wished toraise certain questions concerning the ratification of the CAEMEC Treaty and the benefits Gabon
derived from it.
73. The representative of Egypt expressed his support for the request for technical assistance in
the area of capacity-building.
74. The representative of Côte d'Ivoire encouraged Gabon to continue the economic reform
process with a view to integration into the multilateral trading system.WT/TPR/M/86
Page 13
75. The representative of Gabon thanked the United States, Canada and Japan for their support,
and noted that at the time the WTO Secretariat had drafted its report Gabon had not yet notified a
certain number of measures, but since then progress had been made.  Gabon had also set up a National
Supervisory Committee to monitor the WTO Agreements and negotiations with the EU.  Gabon relied
on the EU and friendly countries to assist its training of human resources.
76. Gabon saw the region as the economic area for the future, but what would be the sense of
diversifying the economy, exploiting the mines, and developing agriculture, if one could not sell?
The economies of neighbouring countries were not sufficiently diversified, which was the reason for
the low tariff rates.  Why not envisage close cooperation among the CAEMEC and ECOWAS
countries?  Why should there not also be close cooperation on capacity-building among India,
Malaysia and the CAEMEC countries?
77. As to the disparity between the bound rates and the rates applied, Gabon intended to have
recourse to Article XXVIII and to renegotiate its rates with the EU.  It had also undertaken to make
good the disparities between the commitments under taken within the CAEMEC and the WTO, and to
harmonize the rates in categories 3 and 4 of the Common External Tariff.
78. Regarding the temporary surcharge, the competent ministries had already begun consultations
with the companies concerned.  Gabon would notify the WTO in this respect.WT/TPR/M/86
Page 14
V. REPLIES FROM THE REPRESENTATIVE OF GABON AND ADDITIONAL
COMMENTS
79. The Chairperson invited the representative of Gabon to focus his responses on three main
themes:  (i) economic environment;  (ii) trade measures;  and (iii) sectoral policies.
(i) Economic environment80. The representative of Gabon referred to the written responses (Annex II).
81. The Chairperson asked Gabon which organization it wished to carry out the study on the
impact of customs duties on Government revenue?
82. The representative of Gabon said that his country was ready to cooperate with the WTO and
other international organizations for the purpose of conducting the aforementioned study.
83. The discussant noted that land use planning was a challenge and asked what was Gabon's
policy in that respect?  He also referred to the reform and rationalization of the civil service.
Regarding the role played by oil in Gabon's economy, he asked what was the situation regarding the
granting of licences for offshore exploitation in deep water?  He suggested that the report on the trade
policy review of Norway should be consulted be cause there were similarities between the two
countries.  The management and regulation of the exploitation of forestry resources were also
priorities.  A seminar on trade facilitation had been held and he suggested that the documentation onthe seminar also be consulted.  He then urged Gabon to look into the EU's tr ade facilitati on measures.
84. The representative of India thanked the representative of Gabon for his responses.
85. The representative of the United States also thanked the representative of Gabon for his
responses.
86. The representative of the European Union asked what was Gabon's position on the launching
of a new round of trade negotiations?
87. The representative of Gabon pointed out that land use planning was an essential element in
diversifying the economy.  In collaboration with the UNDP, the Government was working on a draft
law on land use planning.  In addition, offshore exploitation in deep water was already under way and
Gabon hoped to develop it with the help of foreign investors.  He also emphasized that the certificatesof origin were necessary in order to protect consumers.
88. Eco-tourism, development of mining, cattle breeding, and banking services were the
development axes identified by the Government.  Gabon was aware of the similarities with Norway
but noted that, unlike Norway, part of the profits from oil in Gabon were used to reimburse the debt.
In collaboration with the World Bank, a project on the sustainable management of resources had also
been initiated.  Regarding the new round of negotiations, dialogue taking into account all the different
points of view was needed.
(ii) Trade measures
89. The representative of Gabon referred to the written responses (Annex II).
90. The discussant pointed out that, although certificates of origin were an important element in
protecting consumers, it was also necessary to respect the principle of least-trade restrictive practices
laid down in the Kyoto Convention.WT/TPR/M/86
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(iii) Sectoral policies
91. The representative of Gabon referred to the written responses (Annex II).
92. The Chairperson considered that, in order to facilitate understanding of questions related to
land use planning, especially in developing countries, it would be useful if a map of the country was
provided during reviews of trade policy.
93. The representative of the International Monetary Fund (IMF), speaking as an observer,
recalled that in 1999 the IMF had carried out a study1 on the impact of liberalization on income
generation and this could be useful to Gabon.
                                                     
1 Occasional Paper 99/180.WT/TPR/M/86
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VI. CONCLUDING REMARKS BY THE CHAIRPERSON
94. I noticed a warm atmosphere and a spirit of support for Gabon among the delegations present
during the country's first Trade Policy Review, which I consider to have been particularly successful.
All of us are considerably enlightened as to the situation in Gabon, the country's potential and the
challenges lying ahead.  We have had a very fruitful dialogue concerning the economic reform thatGabon has launched and the role of trade policy in that reform.  The process was facilitated by the
presence of a large and multidisciplinary delegation, skilfully led by Gabon's Trade Minister,
Mr. Mabika.
95. In particular, we were able to appreciate the measures taken by the Government of Gabon to
improve its integration into the multilateral trading system.  The creation of a National Committee to
oversee WTO matters from the capital was a decisive step.  Many speakers acknowledged Gabon's
action on behalf of the WTO in Africa as host for the Trade Ministers at the Libreville Conference lastNovember.
96. We all agree that the health of the Gabonese economy depends heavily on the income from
dwindling oil resources, and that diversification is therefore a must.  Many of the questions raised by
delegations concerned the strategy adopted by the authorities in the face of this challenge, notably in
the areas of privatization and investment, in which Gabon had made progress.  Many statements alsoraised the issue of the Government's support measures for its industrial development policy, including
disciplined management of public finance, reform of the civil service, and continuation of the fight
against corruption, supported by the Bretton Woods institutions.  In this context, incentives, subsidies,
and domestic tax reductions or exemptions for enterprises might lead to problems of consistency with
Gabon's WTO commitments.
97. On the subject of the application of Gabon's trade policy instruments, which depend for the
most part on the Economic and Monetary Community  of Central Africa (CAEMEC), I pointed out the
importance attributed by delegations to ensuring coherence between the regional and multilateral
dimensions of that policy.  One delegation expressed concern that the rates applied were above the
bound rates in Gabon's schedule for 40 per cent of the tariff lines.  Mr. Mabika assured us that hisGovernment was aware of the problem and that the Gabonese authorities intended to find a rapid
solution through negotiations under Article XXVIII of  the GATT 1994, in full conformity with the
relevant rules.  Once the authorities have dealt with this problem, we will all be able to congratulate
Gabon for its commitment, exceptional among the African countries, to the binding of all of its tariff
lines at ceiling rates.
98. Other questions were also raised by certain delegations with respect to the implementation of
the WTO Agreements, including the continued application of a surcharge initially scheduled to beeliminated half way through 2000.  The Minister informed us of his firm intention to propose to the
Government the abolition of this surcharge.  Concerns were also expressed regarding VAT and excise
tax reductions for locally-produced goods, as well as the implementation of the provisions of the
Customs Valuation Agreement, the Anti-Dumping Agreement, the Agreement on Subsidies and
Countervailing Measures, and the Agreement on Safeguards.  The implementation of the TRIPSAgreement, which was delayed in Gabon pending the collective ratification of the Bangui Agreement,
revised by members of the AIPO, was also a source of concern.  I understood from Mr. Mabika's
comments that the necessary ratifications were imminent and that the Bangui Agreement should enter
into force within two months.
99. Regarding Gabon's sectoral policies, delegations focused above all on the problem of food
security, the need for sustainable management of non-renewable natural resources (in particular
fishery and forest resources) and the strengthening of competitiveness with a more efficient services
sector, in which connection I understood that Gabon was urged to deepen its commitments under theWT/TPR/M/86
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GATS, particularly in the areas of telecommunications and financial services, as well as transport, in
the context of the ongoing negotiations.
100. Mr. Mabika gave precise answers to these ques tions, and I would like to thank him for his
cooperation.   These answers, together with his statements, also address the question which, I would
venture to say, underlies all others:  how can a developing country like Gabon envisage fullparticipation in the WTO multilateral trading system?  Mr. Mabika spoke of an urgent need to deal
with Gabon's enormous debt bur den, a concern which, while not within the competence of the WTO,
would undoubtedly be transmitted by the delegations pr esent to their authorities.  He also spoke of the
urgent need in his country to build up the capacity of its human resources through technical
assistance, an essential element in ensuring that the Gabonese were masters of their own development
process.
101. Fortunately, as recognized by a number of speakers, technical assistance is an area in which
WTO Member countries can act.  These speakers urged Gabon to specify its needs in a programme
which might then be adopted, which Mr. Mabika has done in full.  Indeed, WTO Members shared
Gabon's goal of integration into the global economy and the multilateral system, and were ready to
provide concrete and significant support.  It is here that there was a true convergence of views
between the delegation of Gabon, the discussant, the Secretariat, and all Members present here today.I congratulate you and thank you for your participation.
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