WORLD TRADE
ORGANIZATIONWT/COMTD/IF/16
18 February 1998
(98-0572)
Committee on Trade and Development
Integrated Framework for
Trade Related Technical AssistanceOriginal:  French
TRADE-RELATED TECHNICAL ASSISTANCE NEEDS ASSESSMENT
PREPARED BY THE CENTRAL AFRICAN REPUBLIC
INTEGRATED RESPONSES BY THE WORLD BANK,
ITC, UNCTAD, IMF, WTO, AND UNDP1
CENTRAL AFRICAN REPUBLIC
                                                     
1 Published according to the provisions of paragr aph 5(e) of the Integrated Framework for Trade
Related Technical Assistance (WT/LDC/HL/1/Rev.1).WT/COMTD/IF/16
Page 2
TRADE-RELATED TECHNICAL ASSISTANCE NEEDS ASSESSMENT
PREPARED BY THE CENTRAL AFRICAN REPUBLIC
CENTRAL AFRICAN REPUBLIC
Economic situation
Like most least-developed African countries, the Central African Republic, a land-locked
country whose economy is fundamentally based on agriculture, has suffered from the 1970s onwardsfrom  fundamental macroeconomic imbalances which have jeopardized economic growth and reduced
the population's life expectancy.
The main features of these imbalances include:
- Chronic trade and balance-of-payments deficits;
- excessive and growing debt burden;
- progressive reduction in official development assistance;
- steady reduction in GDP.At one time the Central African Republic enjoyed high earnings as a result of the generalized
rise in raw material prices, which concealed certain imbalances set off during the same period.
In the long term however, the following difficulties came to light:
- Deterioration of roads;
- shortcomings of marketing and distribution policy which caused a drop in production;- reduction or even disappearance of trade and the generalization of self-consumption.
This situation was exacerbated by the deterioration of agricultural production and by the onset
of a decline in world prices of raw materials.
There were also structural constraints of the Central African economy attributable to its land-
locked position and to the rise in costs of production and external supply.
It should also be mentioned that in the current context of liberalization of trade and
globalization of markets and economies, the Central African Republic is again faced with a steady
worsening of the terms of trade, which undermines the efforts made to bring about sustainable growth.
However, the country's authorities have, for several years, been carrying out important
economic reforms such as the Structural Adjustment Plans to stabilize public finance and createfavourable endogenous conditions for sustained economic growth.
These efforts are aimed, among other things, at promoting and developing industry and trade
(Adoption of Law No. 96.019 of 13 May 1996 containing the Investment Code of the Central African
Republic).WT/COMTD/IF/16
Page 3
- Decree No. 96.283 of 11 October 1996 implementing the above-mentioned Law.
- Administrative Order No. 29/96/MICTA laying down the approval procedure for the
Investment Code.
- Carrying out this action, specifically in the trade and industry sectors, requires
considerable financial, material and human resources.  Additionally, both national
and international authorities need to be mobilized by a real political will andeconomic agents need a heightened awareness.
With an export base limited to such agricultural products as coffee, cotton, tobacco and other
natural resources such as wood and beeswax, as well as mined products such as diamonds and gold,
the country is heavily dependent on these products.
As far as market access for these products is concerned, in view of the reduction in MFN
tariffs, the Central African Republic is not really able to take advantage of the trade openings offered
by other types of products and thus benefit from the Uruguay Round Agreements.
Therefore, the global overview of the Central African Republic's needs in trade-related
technical cooperation and in strengthening human a nd institutional resources, shows that the identified
needs that can be fulfilled in the short and medium term are as follows:
I. TECHNICAL ASSISTANCE NEEDS RELATED TO  INSTITUTIONAL CAPACITY-
BUILDING
In this area, Law No. 96.019 of 13 May 1996 cont aining the Investment Code provided for
the setting up of a National Investment Committee and Single Window to facilitate and streamline the
procedure for establishing enterprises in different sectors.
(a) Request for technical assistance addressed to the International Trade Centre (ITC) to
develop a legal framework for the proper functioning of the structures to beestablished which will be responsible for overseeing trading and provision of services
(Commercial Code or Business Code).
(b) Request for technical assistance from the ITC to establish and implement the Central
African Foreign Trade Centre to promote the country's foreign trade.
II. TECHNICAL ASSISTANCE NEEDS RELATED TO ESTABLISHING AND BUILDING
COMPETITIVE EXPORT CAPACITY
Request for technical assistance and financial support addressed to UNCTAD for the
formulation of a national trade development and promotion policy for the Central African Republic as
a land-locked country.
III. TECHNICAL ASSISTANCE NEEDS RELATED TO DEVELOPING AND
STRENGTHENING HUMAN AND PROFESSIONAL RESOURCES
In the context of the constant quest for performance, competence and efficiency, addressed to
the WTO.
The Central African Republic no longer benefits from access to training or technical
assistance as it is classed in category IV of so-called "inactive" Member countries.  It should be notedWT/COMTD/IF/16
Page 4
that successive mutinies caused by a fringe group of the Central African Republic's army have kept
the country from being able to pay off enough of its arrears of contributions to allow it to have access
to the various types of training organized by the WTO.
The following is a comprehensive table of the main concerns of the Central African
Republic's Department of Industry and Trade:
Global Assessment of the Central African Republic's Technical Assistance Needs
Identification of area Description of need Activities/implementation Organizations
approached
1. Trade
(a) Promoting the Central 
African Republic's 
foreign tradeFormulation of a medium and long
term operating strategy. Establishingand implementing foreign trade
support services.
Creation of a computerized trade
information database service in the
context of capacity-building activities
to support export promotion anddevelopment.Study to be carried out on the
country's supply and exportpotential.
Strengthening of national
capacity in trade promotion.UNCTAD
2. Developing trade and
exportsCreation of the necessary bases for
national capacity-building toimplement the Central African
Republic plan of action for the
development of the trade sector.
Areas concerned:
- Trade strategy;
- Trade support service;- Trade-related human resource
development;
- Strengthening the role of  women
in trade activity.Study to be carried out to
identify exportable productswith a high added value.
- Defining export potential.
- Identifying and evaluating
needs relating to
management of
procurement abroad andinternational supplies.ITC
3. Expanding and 
diversifying trade 
activitiesCapacity-building of human resources
responsible for trade and investment
promotion in the Ministry of Industry
and Trade and SMEs and SMIs, whichis the body primarily responsible forpromoting export-oriented
investments.Training of managers from the
Department of Industry and
Commerce through various
training courses, seminars,conferences, workshops etc.UNCTAD/
ITC/WTOWT/COMTD/IF/16
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Identification of area Description of need Activities/implementation Organizations
approached
4. Marketing National capacity-building for the
dissemination of reliable information
about the country's huge potential.Training of managers and
teams capable of promoting
the country's wealth by meansof various marketingtechniques:  advertising,
brochures, films, trade fairs
and exhibitions etc.ITC
5. Developing and
promoting exports of
craft products- Development of exports of wood
craft products.
- Creating jobs and substantial
sources of income for craftspeople,
hence assistance needs relating to
product design and finishing,quality control, improvement oftools and development of theworkplace and marketing.Creation of training centres
for craftspeople, pilot centresfor the design of craftproducts.UNCTADWT/COMTD/IF/16
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INTEGRATED RESPONSES BY THE WORLD BANK,
ITC, UNCTAD, IMF, WTO AND UNDP
CENTRAL AFRICAN REPUBLIC
Technical assistance needs identified in the
questionnaireOrganization Response
Technical assistance needs related to institutional
capacity-building
1. Request for technical assistance addressed to
the International Trade Centre (ITC) todevelop a legal framework for the properfunctioning of the structures to be established
which will be responsible for overseeing
trading and provision of services (Commercialor Business Codes.ITC Following a request in November 1997 a fact-
finding and progra mming mission will be
organized in early 1998 on the institutionalsystem to be set up for promoting exports.
*
2. Request for technical assistance from ITC to
establish and implement structures for the
Central African Foreign Trade Centre, topromote the country's foreign trade.ITC See above.
Technical assistance related to establishing and
building competitive export capacity
Request for technical assistance and financial
support addressed to UNCTAD for drawing up a
national trade development and promotion policy
for the Central African Republic, as a land-lockedcountry.UNCTAD UNCTAD  will assist in this area.  An
evaluation including the elements set out in
paragraph C(b) will be required.
*
* Financing to be requested.WT/COMTD/IF/16
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Technical assistance needs identified in the
questionnaireOrganization Response
Technical assistance needs related to developing
and building human and professional resources
In the context of the constant quest for performance,
competence and efficiency addressed to the WTO.
The Central African Republic no longer benefits
from training or technical assistance as it is classed
in category IV of so-called "inactive" Membercountries. It should be noted that su ccessive
mutinies caused by a fringe group of the CentralAfrican Republic's army have kept the country from
being able to pay off enough of its arrears of
contributions to allow it to have access to thevarious types of training organized by the WTO.WTO The Central African authorities requested
technical assistance during the High-LevelMeeting on 27 and 28 October 1997, inparticular a national seminar for increasing
awareness among government officials and in
the private sector about the WTO and theUruguay Agreements. An assistance needs-assessment mission concerning implementationof the Agreements will be carried out in
conjunction with the national seminar.
Other activities:
- Central African representatives to
participate in special seminars in 1998 and1999 for French- speaking LDCs.
- A three week training course on trade
policy will be organized in 1998 and 1999
for French-speaking LDCs
World Bank/WTO
(CACEU)Regional seminar on the WTO and its impact
on trade policy in Central Africa (June 1998)WT/COMTD/IF/16
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Technical assistance needs identified in the
questionnaireOrganization Response
In response to question C(b):
Summary of technical needs ranked according to
priority
1. Trade:  Foreign trade promotion
- Formulation of a medium and long-term
operating strategy.
- Creation and implementation of foreign trade
support services.
- Establishment of a computerized trade
information database service in the context ofcapacity-building activities supporting trade.
- Promotion and development of export products.ITC Following the request mentioned above, a fact-
finding and progra mming mission will be
organized in early 1998 on the institutionalsystem to be set up for promoting exports and
formulating an export development strategy.
*
World Bank These activities can be financed under the
"Enterprise Rehabilitation and Development
Project" (Credit 2254 approved 30 May 1991).
2. Trade and export development
Creation of the necessary bases for establishing
national capacity to implement a Central AfricanRepublic plan of action for developing the tradesector.
Areas involved:
- Trade strategy;
- Trade Support Service;
- Trade-related human resources development;- Strengthening the role of women in trade
activities.ITC See above
World Bank This support will be  provided under the Project
on the social dimension of adjustment (Credit
2275 approved  20 June 1991).
* Financing to be requested.WT/COMTD/IF/16
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Technical assistance needs identified in the
questionnaireOrganization Response
3. Expansion and diversification of trade
activities.
Capacity-building for human resources responsible
for investment and trade promotion in the Ministry
of Industry, Trade and SMEs and SMIs as the body
primarily responsible for export-oriented investmentpromotion.UNDP Through the CAF/97/020 project, UNDP will
give the Government technical assistance in
formulating a strategy for developing theprivate sector.
This project should also make proposals to the
Government on setting up a support structurefor SMEs as well as a mechanism forcoordinating action in favour of SMEs.
ITC/UNCTAD/UNDPMoreover, in the framework of a regional
project ("Capacity-building for trade anddevelopment in Africa", RAF/96/001/) UNDP
will pay for two or three officials from the
Central African Republic to participate in theregional seminars.
4. Marketing
Strengthening of the national capacity to
disseminate reliable information about the country'shuge potential.
5. Development and promotion of handicraft
exports:
- Development of wooden handicraft exports
Intended objective:
- Increasing exports;- Creating jobs and substantial sources of income
for craftspeople, hence assistance needs relating
to product design and finishing, quality control,
tool improvement and development ofinstallations and marketing.ITC See C(b)1WT/COMTD/IF/16
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Technical assistance needs identified in the
questionnaireOrganization Response
In response to question C(d):
Technical capacity and human resources necessary
for using the new information technology tools
UNDP Although the Governme nt has not formulated
any requests in this area, UNDP points out thatthe Central African Republic could, if need be,benefit from the activities of regional project
RAF/97/021 for defining its Internet policy.
WTO The WTO can provide a computer and laser
printer for the Ministry of Trade.  The WTOwill also be able to install the necessaryInternet connections at the focal point, and
provide CD- ROMS, including one on the
results of the Uruguay Round and another onthe multilateral trading system.
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