WORLD TRADE  
ORGANIZATION  WT/TPR/M/129 
1 November 2004 
 (04-4643) 
Trade Policy Review Body 
28 and 30 September 2004  
 
 
 
TRADE POLICY REVIEW 
 
RWANDA 
 
Minutes of Meeting  
 
Chairperson:  H.E. Mrs. Puangrat Asavapisit (Thailand)  
 
 
Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3  
II. OPENING STATEMENT BY THE REPRESENTATIVE OF RWANDA 4  
III. STATEMENT BY THE DISCUSSANT 6  
IV. STATEMENTS BY MEMBERS 8  
V. REPLIES BY THE REPRESENTATIVE OF RWANDA AND ADDITIONAL 
COMMENTS 14  
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 17  
 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Rwanda are 
reproduced in document WT/TPR/M/129/Ad d.1 and will be available online at 
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.   WT/TPR/M/129 
 Page 3 
 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The first Trade Policy Review of Rwanda was held on 28 and 30 September 2004  The 
Chairperson (H.E. Mrs. Puangrat Asavapisit) welcomed the delegation of Rwanda, headed by 
Professor Nshuti, and the discussant Mr. Neil McMilla n (United Kingdom).  As usual, the discussant 
would speak in his personal capacity and, in accordance with established procedures, had made 
available in advance a broad outline of the them es he intended to raise (document WT/TPR/D/112). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures of the meeting.  The Report by the Government of Rwanda w as contained in document 
WT/TPR/G/129 and that of the Secretariat in doc ument WT/TPR/S/129.  Copies of advance written 
questions, submitted by:  the United States, Cana da, Japan, Kenya, Brazil, and the European 
Communities, had been transmitted to the delegati on of Rwanda.  These questions and the replies 
provided by the delegation of Rwanda are reproduced in WT/TPR/M/129/Add.1. 
3. The reports highlighted the reconstruction and liberalization efforts made by Rwanda since 
the 1994 genocide.  The liberalization of Rwanda's trade regime, through the reduction of its border 
taxes, had aligned its customs tariff on the planne d common external tariff of the Common Market for 
Eastern and Southern Africa (COMESA);  Rwanda had been participating in the COMESA free-trade 
area since January 2004.  Nevertheless, steps ne eded to be taken to eliminate the remaining 
impediments to economic developm ent, generated or aggravated by the genocide, and to reduce 
poverty.  Continued macroeconomic and struct ural reforms should improve competitiveness and 
business environment for diversification purposes.  Th e international community was invited to help 
by providing appropriate technical assistance unde r the Integrated Framework in which Rwanda 
participated.  Rwanda also needed such assist ance to improve compliance with its multilateral 
commitments.  WT/TPR/M/129 
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II. OPENING STATEMENT BY THE REPRESENTATIVE OF RWANDA 
4. The representative of Rwanda
 thanked the Chairperson for her introduction, the WTO 
Secretariat for its assistance during the whole pr ocess, and the discussant for agreeing to lead the 
discussion.   
5. Rwanda believed that transparency, which was promoted in the trade policy review (TPR) 
process, played a key role in good governance and tr ade.  Rwanda was implementing the Africa Peer 
Review Mechanism and was the first volunteer to be  reviewed.  This TPR would enable Rwanda to 
examine its domestic policies in light of its need to  fully integrate into the multilateral trading system 
with WTO Members' support. 
6. Rwanda had experienced a tragic genocide in 1994, and continued to suffer from its social 
and economic consequences.  The resulting economy wa s deficient, poor, and highly indebted;  and it 
faced human resource problems (through loss of  productive labour force), as well as financial 
problems (keeping in prisons and bringing to tria l hundreds of thousands of genocide suspects). 
7. The 1994 genocide coincided with the conclusi on of the Uruguay Round and partly explained 
why implementation of some of Rw anda's multilateral commitments had been delayed.  Priority was 
given to rebuilding and reconstructing the ec onomy;  ensuring security, stability, and a clear 
separation of powers;  building basic infrastruct ure;  setting up institutions;  and uniting and 
reconciling the population.  The first democratic  constitution had been enacted, and democratic 
parliamentary and presidential elec tions were held under it in 2003. 
8. Rwanda believed that well-planned trade help ed to reduce poverty.  Its trade policy was 
aimed mainly at contributing to its social and ec onomic developments as reflected in "Rwanda Vision 
2020", the Poverty Reduction Strategy, and the National Investment Strategy. 
9. Rwanda had been adopting structural reforms to create a macroeconomic environment 
suitable for trade and investment, as well as to prom ote its competitiveness.  Rwanda was engaged in 
a process of liberalization and privatization to enhance economic growth and structural 
transformation:  the private sector was empowered  as an engine of growth, the Government was 
creating the requisite environment, and the public-p rivate sector partnership was being strengthened. 
10. The level of corruption was low in Rwanda due to the establishment of the necessary 
institutional framework:  the Office of the Auditor General of State Finances;  the Rwanda Revenue 
Authority;  the National Tender Board;  the O ffice of the Ombudsman;  and the upcoming Anti-
corruption Commission.  Several private sector suppor t institutions had also been established such as, 
the Rwanda Investment and Export Promotion Agen cy, the Rwanda Bureau of Standards, and the 
Centre for the Support of the small and medium-si zed enterprises.  The Privatization Secretariat 
oversaw the privatization process aimed at increasi ng efficiency.  Rwanda had and continued to 
develop various commercial laws and sectoral polic ies.  It understood the importance of harmonizing 
domestic legislation with interna tional obligations;  its Constitution therefore established the primacy 
of international law instruments over domestic legislation. 
11. Rwanda's first democratic Constitution was a dopted by referendum in May 2003;  free and 
fair parliamentary and presidential elections were he ld.  Good governance and security, at the national 
and regional levels, remained at the forefront of  the national agenda.  Institutional and regulatory 
reforms were aimed at improving transparency and the rule of law, which facilitated trade at the 
national and international levels. 
12. Rwanda's efforts had produced tangible results:  GDP grew at 6% in 2000, 6.7% in 2001, 
9.4% in 2002, and 3.5% in 2003;  the inflation rate was reduced from 12% in 1997 to 2.5% in 2002.  
Investment growth was modest (US$49 million be tween 2000 and 2003) but was expected to grow  WT/TPR/M/129 
 Page 5 
 
 
further as a result of the political and economic st ability, and the increasingly attractive investment 
programme.  Rwanda's inv estment policy was aimed, inter alia , at promoting exports through a free-
trade zone that would be operational in early 2005.  The board members of the Bretton Woods 
institutions had agreed, in 2000, that the ec onomic and financial programmes implemented by 
Rwanda qualified it as a Highly Indebted P oor Country eligible for debt relief. 
13. Rwanda had been operating substa ntive trade initiatives, including the binding of all its tariffs 
at the conclusion of the Uruguay Round, and progre ssive tariff reduction.  Rwanda was a member of 
the COMESA free-trade area and applied tariff rate s corresponding to the level of reduction of the 
exporting member state through the principle of reciprocity.  For non-COMESA goods, the national tariff classification was 0% for capital goods, 5% fo r raw materials, 15% for intermediate goods, and 
30% for finished goods. 
14. Rwanda's competitiveness in the internationa l market was greatly compromised by the 
continuous decline in the price of commodities th at constituted its main exports (tea, coffee, and 
coltan);  the insufficient export diversification st ructure;  limited capacity to produce and process 
goods;  unfair trade practices;  non-tariff barriers to tr ade;  and inadequate FDI inflow.  Thus, Rwanda 
could not fully benefit from various duty-free and qu ota-free initiatives available to LDCs, such as the 
EU's Everything but Arms, AGOA, the Canadian and the Japanese initiatives, and other bilateral 
initiatives.  Rwanda appreciated the efforts of those countries, but stressed that preferences, although 
important for the LDCs, were not an end in themselv es, and the other structural constraints needed to 
be addressed effectively.   
15. Rwanda recognized that trade was essential for poverty reduction.  Its challenge was to 
achieve and stabilize economic growth between 7% and 8% over the following 15 years.  Rwanda 
welcomed the Integrated Framework (IF) approach to  integrate trade into the PRSP.  Rwanda believed 
that, by the time the IF was concluded, the nationa l trade strategy would be the driving force of its 
economic growth.  The Rwanda DTIS process w ould be launched in November 2004 and was 
expected to be completed in early 2005.  Devel opment partners were urge d to contribute to the 
funding of projects identified by the DTIS.  Rwanda was fully committed to the ownership of the 
process and was confident that their join t efforts would make the IF a success. 
16. The IF was timely and consistent with "Rwanda  Vision 2020", aimed at raising Rwanda to a 
middle-income status over a period of 20 years.  To  diversify its production and to benefit fully from 
various initiatives to address supply-side constraint s, Rwanda planned to enhance sound political and 
economic governance, transform the rural economy, develop services, industry, and human resources, 
promote the private sector, and regional and inte rnational economic integr ation.  Rwanda was 
committed to promoting exports of non-traditiona l products, and to add value to the existing 
traditional primary products (coffee and tea).  Between 1997 and 2002, exports of goods accounted 
for 4% to 5% of GDP, and imports for 12.4% to  14%.  Rwanda suffered from a balance-of-trade 
deficit and was determined to diversify its expor t production both horizontally and vertically. 
17. Rwanda would continue to support WTO efforts and recognized the positive role an equitable 
and rule-based multilateral trading system could pl ay in promoting global economic growth and 
development.  It would continue to engage ac tively in the WTO negotiations so that the Doha 
Development Agenda (DDA) could have the much -desired balanced results, especially for poor 
countries. 
 WT/TPR/M/129 
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III. STATEMENT BY THE DISCUSSANT 
18. The discussant structured his comments under th ree headings:  (i) economic environment;  
(ii) trade policies;  and (iii) sectoral policies.   
(i) Economic environment 
19. The discussant underlined that Rwanda was a landlocked, and the most densely populated 
country in Africa, with a very low GDP (US$200 per capita.).  Rwanda was still clearly marked by the 
1994 genocide and destruction.  The liberalizati on of the economy had resulted into impressive 
growth rates.  Nevertheless, grow th had started from a very low b ase and it had taken Rwanda ten 
years to get back to its 1990 GDP level.  Growth projection for 2004-05 was 6%, and inflation projection of 3% was also quite good.   
20. The new tax system and the removal of foreign exchange controls should help attract more 
foreign investment, and already had in some cases.  Nevertheless, FDI was still at a very low level and 
might not be enough (below US$6 per capita in 2003).   Infrastructure and transport were continuing 
problems for Rwanda's economy.  The discussant thought that from a public expenditure standpoint Rwanda's military involvement in Democratic Re public of Congo had slowed down its reconstruction 
efforts.   
21. Aid accounted for 9.2% of Rwanda's GDP, and the high external debt, which amounted to 
US$114 billion in 2002, worked out at almost thre e quarters of GDP per capita.  A reduction of 71% 
of Rwanda's debt under the HIPC arrangement had been agreed.  But more effort seemed to be needed 
to reduce that debt further.  
22. The decline in imports was matched by a 28% d ecline in export revenue, and the trade deficit 
grew to US$127 million in 2003.  Rwanda's main e xports were tea, coffee, coltan, and pyrethrum.  
Both the coffee and coltan exports had been affected  by a decline in world commodity prices.  To 
reduce both the exposure to commodity prices fluctu ations and the uncertainties of the weather in 
terms of produced crops, Rwanda's economy clearly needed to be diversified;  the manufacturing 
sector accounted for less than 2% of the work fo rce and for 8.6% of GDP.  The supply-side needed 
urgent aid from bilateral and multilate ral aid donators to be built up.   
23. The discussant was pleased that Rwanda was eligib le for a diagnostic study under the IF and 
supported Rwanda's request for the study to be co mpleted as quickly as possible.  This should help 
identify areas where intensified technical assistance would be most helpful.  
24. The "Rwanda Vision 2020", a very important national growth strategy, aimed to bring 
Rwanda up to a middle-income level within 16 year s, with emphasis on trade as a driver of growth.  
But Rwanda suffered from a lack of skilled official s to bring about some of those changes and to 
negotiate on Rwanda's behalf in international fora.   
(ii) Trade policies 
25. The discussant welcomed the change, since January 2004, to the transaction method for 
customs valuation, although Rwanda clearly needed more technical assistance to fully implement it.  
He noted that the tariff levels were based on the four-band COMESA Common External Tariff.  
Applied tariffs went up to 30%;  there was a 25% surcharge on sugar imports;  and some 241 tariff 
lines were still applied above the bindings Rwa nda undertook before the Uruguay Round, which had 
to be rectified if possible.   
26. Some positive steps included the abolition of ex port taxes in 1999;  the establishment of the 
Rwanda Bureau of Standards, and Rwanda's memb ership of the All Inter-African Phytosanitary  WT/TPR/M/129 
 Page 7 
 
 
Council.  Government procurement ne eded more attention.  It was still subject to outdated legislation, 
although a draft law had been put forward and was app lied in part.  Rwanda's IPR laws dated back to 
1963;  a draft law was under preparation and the discu ssant urged Rwanda to quickly bring it forward. 
(iii) Sectoral policies 
27. Around 90% of the population was engaged in agriculture, and it accounted for 44% of GDP.  
Agricultural productivity seemed to be declining, in  part through the over-farming of a very dense 
populated landscape.  Tea from Rwanda was of hi gh quality and made up 25% of exported goods.  
But transport, and the distance to both the ports to send the teas through, and to the destination 
markets hampered some of the sal es efforts.  Coffee, the second largest export, was conducted mainly 
by small holders;  its quality was declining due to soil degradation and to problems in the processing 
and quality control.  Rwanda was working to solve these problems. 
28. Pyrethrum exports, which had been suspended until the 1990s, amounted about US$3 million.  
Mining exports (mainly coltan) accounted for 35% of goods exports, but for only 0.2% of GDP.  
There was major potential for natural gas extractio n from Lake Kivu, which would also help in 
addressing energy shortages.   
29. Tourism was still badly affected by past instab ility, and was well below its 1994 level.  Under 
the GATS, Rwanda had committed to no restricti ons on hotels and other tourist facilities.  
30. There was already some competition in telecomm unications, and there were plans to privatize 
the fixed telecom operator (Rwandatel) .  Teledensity was one of the lowest in the world, while mobile 
telephony was growing rapidly.  
31. Road transport suffered from bad infrastruct ure and damage from 1994.  This affected 
Rwanda's ability to export by adding US$160 per tonne in terms of costs for freight being transported. 
32. The discussant believed that Rwanda's policy direction was extremely good, and Rwanda 
deserved success in attracting further FDI.   
33. He thought that the perceived instability of th e Great Lakes region was still holding Rwanda 
back, and also disrupting access to some traditi onal regional links.  Popul ation density and over-
farming had created environmental, social, a nd economic problems that affected agricultural 
productivity.  In terms of industrial capacity, Rwanda welcomed preferences given by a number of countries, and these were very important, but not e nough in themselves.  If a developing country had 
supply-side and production constraints to take adva ntage of these preferences they were not as much 
use as they would be in a more benign economic envi ronment.  The lack of industrial capacity left 
Rwanda vulnerable to commodity fluctuations a nd it needed more value-added goods.  The discussant 
hoped that developed-world donors would look at supply-side capacity, and trade officials  would 
look at areas where tariff escalation was perhaps acting as a deterrent to Rwanda's diversification.   
34. The discussant thought that European consumers could help by targeting their purchasing to 
Fair Trade tea and coffee products.  He urged the acceleration and completion of the IF diagnostic 
study, and conversion its recommenda tion in technical assistance targeted  to the most urgently needed 
areas.  The discussant urged Rwanda to implement various legislative changes (in particular IPR and 
public procurement).  He hoped that those ve ry important areas of reform, along with pro-
liberalization and opening of the market, would bring Rwanda deserved success.  WT/TPR/M/129 
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IV. STATEMENTS BY MEMBERS 
35. The representative of the United States
 expressed her delegation's appreciation for Minister 
Nshuti's substantial effort in help ing to move forward the DDA, and his role, as chair of the African 
Union’s Trade Group, in the consultations th at led to the July Framework Agreement. 
36. Rwanda was still suffering from the social and economic consequences of its genocide but it 
had made progress in liberalizing foreign exchange and interest rates, eliminating export taxes, 
lowering tariffs, and planning the priv atization of key sectors.  In 2000 , real GDP had returned to its 
1990 level;  and recent economic growth rates had b een impressive.  The United States urged Rwanda 
to continue to pursue macroeconomic and structur al reforms, in cooperation with the IMF.  
37. This Review had provided an opportunity for Rwanda to re-examine its trade policies and 
their effects on economic growth and development, a nd to rededicate itself to reforms to attract new 
investment and diversify the economy.  The Unite d States noted Rwanda's intent to establish a 
National Committee on WTO, which, along with the a dvisory Foreign Trade Board that is to be set 
up, should help Rwanda to analyse its international trade policy, better represent its national interests 
in the WTO, and participate more effectively in the multilateral trading system. 
38. Rwanda had joined the COMESA free-trade area in 2004;  it was also member of several 
other trade-related regional organiza tions, and had indicated its intention to apply for membership in 
the Southern African Development Community and the East African Community.  Rwanda would 
need to consider the challenges and complexity of active involvement in several overlapping trade 
regimes, and set its priorities accordingly.   
39. The United States welcomed and encouraged Rwanda's ongoing work to update its IPR 
legislation, with technical assistance from WIPO;  it  was willing to review th e pending legislation to 
help ensure it was consistent with TRIPS obliga tions.  Cooperation with Rw anda on enforcement of a 
recent trade mark infringement case in East A frica involving counterfe it shoe polish had been 
appreciated. 
40. Two-way trade with Rwanda was modest (US$10.5 million in 2003) but would rise as 
Rwanda instituted the necessary customs procedures  to qualify for AGOA's apparel benefits.  There 
was also potential for new and non-traditional ag ricultural exports from Rwanda under AGOA. 
41. The United States noted Rwanda's technical assist ance needs.  It was pleased that Rwanda 
was being reviewed under the IF programme and supported its call for a DTIS to be completed 
quickly.  The United States had provided over US$7 million in technical assistance to Rwanda in 
2002-03.  It was also providing assistance via the USAID-funded East and Central Africa Global 
Competitiveness Hub and was considering ways to help  Rwanda to analyse its interests in trade in 
services, and to participate more effectiv ely in the ongoing GATS negotiations.   
42. The representative of Canada  stressed that his country closely followed Rwanda's 
development, as reflected by its US$18 million assist ance to Rwanda in 2001-02.  Canada hoped that 
the limited trade with Rwanda woul d be developed further.  It welc omed the establishment of Rwanda 
Vision 2020, an economic and trade programme aime d at reducing poverty.  Canada encouraged 
Rwanda to keep in mind the objective of democrac y and good governance for growth and prosperity.  
Broader macroeconomic and structural reforms would enable Rwanda to benefit fully from the global 
trading system.  In particular its farming strategy  aimed to turn subsistence farming into market 
farming.  In this regard, the tea sector was of pa rticular importance and Canada encouraged Rwanda 
to continue its privatization efforts.  With regard  to coffee, the elimination of the export tax was 
creditable as were efforts to incite investment to modernize the industry.  Canada believed that 
privatization of REDEMI and revision of the mini ng code could encourage investment in the mining  WT/TPR/M/129 
 Page 9 
 
 
sector.  Exports of coltan from uncertain origin was of concern, and Canada encouraged Rwanda to 
introduce measures to document the trade of this mineral.   
43. Canada was heavily engaged in helping countri es like Rwanda to participate fully in the 
current multilateral negotiations.  It had allo cated, between 2001 and 2004, over US$74 million in 
technical assistance and in capacity building in Afri ca, and US$2 million had been allocated to the IF 
technical assistance programme.  Rwanda was eligib le for the Canadian ma rket access initiative that 
granted duty- and quota-free access to all imports (except dairy products, poultry, and eggs) from 
48 LDCs.  Canada appreciated th at Rwanda's favourable acknowle dgement of this initiative, and 
encouraged other Members to offer such access to LD Cs.  Canada was pleased that the text retained 
by WTO Members in July 2004 reiterated that devel opment was at the heart of the Doha Round.   
44. The representative of Japan  expressed appreciation for Rwanda's and Minister Nshuti's 
coordination of the African Members, and, as ch air country of the African Union, its active 
participation in the negotiations that led to th e July Package.  Japan hoped that Rwanda would 
continue to participate, cooperate and contribute to the enhancement of the DDA and the multilateral 
trading system.  Through the TICAD process, Ja pan supported Africa's ec onomic development by 
promoting trade and investment.  
45. Japan appreciated that Rwanda's economy w as recovering by maintaining relatively high 
GDP growth despite the serious damage in 1994.  Japan welcomed that Rwanda's economic policy 
was focusing on poverty reduction.  Rwanda relie d on exports of food products (tea and coffee), 
which left it vulnerable to external shocks.  Ja pan welcomed "Rwanda Vision 2020", which aimed to 
move from subsistence farming to market-driven agriculture and to reduce the number of people 
working in the sector from 90% to 50% over 20 years.   Japan hoped that this would go hand in hand 
with the successful reconstruction of peaceful society.   
46. The representative of Kenya  said that economic reforms in Rwanda had led to a steady 
recovery, although the genocide con sequences continued to affect its economic performance.  Exports 
continued to lag far behind imports, affecting the balance of payment, and lack of diversification kept 
Rwanda vulnerable to market shocks.  Transp ort costs remained high because Rwanda was 
landlocked.  Kenya had availed the port of Momb asa to Rwanda and the Northern Corridor Transit 
Transport Coordination Authority had been establishe d to improve the flow of goods traffic from 
Mombasa to the region's landlocked countries, and to reduce transport costs.  The manufacturing 
sector was further affected by power fluctuations and the high cost of energy. 
47. Kenya noted that limited resources and debt bur den continued to constraint Rwanda's ability 
to tackle the challenges of "Rwanda Vision 2020".  Kenya supported Rwanda's appeal to donors for 
assistance in implementing its development strategies.   Rwanda was commodity dependent and highly 
vulnerable to the continued decline and instabilit y of commodity prices, which had affected its 
economic growth and increased poverty and indebtedness.  Rwanda's efforts to restructure, diversify, 
and strengthen the competitiveness of its commodity sectors needed to be supported by development 
partners.  
48. Rwanda needed technical assistance and cap acity building to address its difficulties in 
fulfilling its WTO obligations, and to ensure full benefits from the multilateral trading system.  The current negotiations should ensure that Rwanda was accorded the necessary flexibility to address its 
development needs and concerns.  
49. Kenya encouraged Rwanda's efforts towards regi onal and international in tegration in order to 
promote its products in external markets.  As a member of the COMESA free-trade area, Rwanda 
could obtain raw materials and other inputs from the region at lower costs and enjoy broader market 
access.  Rwanda participated in the negotiations for a new trading arrangement between the Eastern 
and Southern African Countries and the EU.  Kenya looked forward to Rwanda's accession to the East WT/TPR/M/129 
Page 10  
 
African Community.  Rwanda was one of Kenya's im portant trading partners, and a major destination 
for Kenya's FDI.  Kenya was ready to work with Rw anda to address the imbalance in their trade and 
in the regional context to ensure equitable distri bution of benefits from trade and investments. 
50. The representative of Brazil
 recognized Rwanda's economic and trade reform efforts.  Brazil 
was aware of the social and economic consequences of the tragic events of 1994, and the challenges 
that faced Rwanda to achieve greater integrati on into the world economy and the multilateral trading 
system.  Brazil believed that the WTO could have a key role in ensuring that the multilateral rules 
supported development by opening markets and rem oving barriers on exports of interests to LDCs. 
Technical assistance could contribute to improved pa rticipation and integrati on of Rwanda into the 
multilateral trading system. 
51. Brazil commended Rwanda for its economic grow th since 2000, and supported its efforts for 
continued macroeconomic and structural reforms.  It encouraged Rwanda to pursue its social 
development and poverty reduction. 
52. The representative of the European Communities  (EC) noted Rwanda's economic recovery  
since the 1994 genocide and its achievement of a cer tain macroeconomic stability.  However, Rwanda 
was still one of the poorest countries in the world and faced considerable challenges in promoting 
exports and furthering economic growth .  Rwanda's efforts to diversify its structure of production, to 
enhance efficiency in its traditional sectors, and to reduce supply-side constraints would together with 
a continued efforts for democracy be crucial in  increasing economic prosperity and alleviating 
poverty. 
53. The promotion of institutional capacity buildin g and the reinforcement of decentralized 
structures were essential elements for the poverty re duction strategy, as was a taxation system that 
allowed Rwanda to reduce its depe ndency on revenue from duties.  This would allow Rwanda to use 
foreign competition to promote and increase growth and prosperity.  Preferential trade agreements 
with its neighbouring countries, the global trading system, and the results that could be harvested from 
the ongoing DDA were of importance for Rwanda. 
54. Rwanda was participating in the EU-ACP cooperation, and benefited from the Cotonou 
Agreement preferences.  It was also part of the Eastern African Group, which had recently been 
negotiations of an Economic Partnership Agreemen t with the EU.  Rwanda enjoyed duty- and quota-
free market access to the EU through the Everythi ng-but-Arms – GSP regime.  The EC was a major 
donor towards the development of Rwanda's rural economy, as well as transport and water supply in 
rural areas. 
55. At the national level, the IF should guarantee the mainstreaming of trade into the overall 
country policy, and integration in the context of COMESA and EAC could be a step towards 
integration into the global economy.  The EC would continue to support Rwanda's efforts and invited 
other countries to do so. 
56. The representative of Mauritania  noted Rwanda's widespread reforms, and the progress 
achieved.  The tax system had been revised;  a r estrictive monetary policy imposed and measures to 
increase public revenue had been put into place in order to reduce inflation.  Nevertheless, the share of 
manufactured goods remained very low.  Rwanda  had reorganized its institutional framework by 
adopting its fifth Constitution in May 2003.  It was a member of several regional organizations and 
benefited from non-reciprocal preferential access to th e EU and U.S. markets.  Rwanda's agricultural 
policy focused primarily on food security.  Alt hough Rwanda's agriculture mainly comprised 
subsistence farming, it played a major role in the economy.   
57. Mauritania congratulated Rwanda for its effort s to speed up economic growth, and to ensure 
food security and reduce poverty.  However, as an LDC, it faced structural difficulties, and the  WT/TPR/M/129 
 Page 11 
 
 
international community should give Rwanda ev ery support and grant it appropriate technical 
assistance.  Rwanda's participation in the IF shoul d help it to benefit fully from all the possibilities 
open to it, and to be further integrated into the world trading system.  
58. The representative of Benin  welcomed Rwanda's efforts to fight poverty and the imbalance 
between urban and rural development.  Agriculture  contributed to 41.6% of GDP and provided 80% 
of export revenue.  Taxes on exports had been abolished and cu stoms duties had been diminished.  
However, the industrial sector was still not fully developed.  Rwanda hoped to develop its services 
sector, and to increase sub-regional integration.  Rwanda had been a member of the COMESA free-
trade area since January 2004.  Benin welcomed WTO support to Rwanda, and expected a greater 
commitment from the international community in order to help development in Rwanda. 
59. The representative of Senegal  said that his country had long-standing friendly and fraternal 
relations with Rwanda.  After a harro wing past, Rwanda had been enable to initiate real recovery in its 
economy.  It had reached its 1990 GDP level in 2000,  and inflation was at a reasonable level.   
60. Despite its constraints as an LDC, Rwanda had joined the world economy as a means to 
create wealth and to improve the living conditions of its population.  Senegal appreciated Rwanda's 
participation in the regional and multilateral economic integration process, and its efforts to liberalize 
its economy.  Rwanda had reduced duties and taxes, implemented the WTO Customs Valuation Agreement, bound all its duties, and adopted ad valorem  tariffs.   However, it faced problems in 
implementing WTO rules and establishing appropriate legislation in important areas (e.g. competition and government procurement).  Rwanda needed to diversify its economy, particularly exports, which 
were based on agricultural products (coffee and t ea) that had suffered from a drop in commodity 
prices.  Rwanda had been admitted to the IF, a nd the process should be speeded up, as requested, to 
provide Rwanda with technical and financial as sistance as soon as possibl e.  The representative 
reiterated Senegal's support of Rwanda  and hoped that it could participate further in world trade.   
61. The representative of Nigeria
 said that Rwanda had undertaken  important reforms to open up 
its economy and trade in order to improve standa rds of living, as well as to overcome the economic 
and social consequences of the 1994 genocide. 
62. "Rwanda Vision 2020", which had been launc hed by the Government, dealt with sound 
political and economic governance, transformation of rural economy, human resources and services development, promotion of the private sector, and regional and international economic integration.  
Nigeria supported this programme as well as Rwanda 's measures to encourag e investment, through 
the Rwanda Investment Promotion Agency, by promoting investment opportunities, facilitating 
smooth operation of investment projects, business de velopment, and export-oriented reforms.   
63. Rwanda had taken measures to de velop and modernize the agriculture sector to provide food 
and achieve food security;  to develop the manufactur ing, mining, energy, and services sectors, and to 
promote tourism.  Nigeria was committed to assisting Rwanda and urged WTO Members and the 
international community to do so.  Nigeria s upported Rwanda's reconcilia tion and reconstruction 
programme and wished it success. 
64. Rwanda was committed to the principles and objectives of the multilateral trading system and 
to WTO.  As an LDC and landlocked country with  problems to solve, Rwanda needed technical 
assistance and capacity building.  On behalf of the African Group, he expressed appreciation for 
Rwanda's positive and constructive role in the work  of the Group, and looked forward to working 
more closely with Rwanda so that the Group could make more impact in the post-July phase of the 
DDA negotiations. 
65. The representative of Thailand
 commended Rwanda for its significant progress towards 
greater trade liberalization, and effective participa tion in the multilateral trading system.  Despite the WT/TPR/M/129 
Page 12  
 
high cost of inputs, vulnerability to external shocks (due to a lack of diversification of its production 
and export structure), and the economic consequences  of the genocide, Rwanda had undertaken major 
reforms, including:  liberalizing its economy by revising the tax system and reducing its customs 
duties and taxes;  joining the COMESA free-trade area;  privatization;  and strengthening public-
private sector partnership.  Rwanda had performed  relatively well in terms of economic growth, and 
its continued efforts would contribute to its social  and economic development, to reduce poverty, to 
further strengthen its economy, and to  more effective participation in the multilateral trading system.   
66. The applied MFN tariff comprised only ad valorem  duties corresponding to the four rates of 
the COMESA common external tariff.  However, relatively higher protection was applied for the non-
agriculture sector.  On average, bound rates for majo r sectors were more than five times higher than 
the applied MFN rates in 2003.  Thailand was con cerned that applied rates were higher than the bound 
rates for 241 tariff lines.  Thailand was interested in hearing Rwanda's views on narrowing the gap 
between bound and applied rates, and whether Rwa nda had considered removing the anomaly of 
applied customs duties exceeding bound levels for those 241 items. 
67. Thailand noted Rwanda's progress in strengtheni ng the privatization process.  It welcomed 
Rwanda's effort to implement its international commitments, and urged Rwanda to continue its 
macroeconomic and structural reform s to consolidate and ensure long- term growth and development.  
Thailand was helpful that, with the reform progra mmes and more effective a nd full participation in 
the multilateral system, boosted by technical and financial assistance, and coupled with assistance in its reconstruction effort and guar anteeing broader, more stable and meaningful access to partner 
countries' markets, Rwanda should overcome economic  difficulties, achieve sustainable growth, and 
address its problems of debt and poverty. 
68. The representative of India
 said that Rwanda had faced a deep socio-political crisis that had 
hampered its development.  A reconstruction and reform process had been launched and impressive 
economic growth had been achieve d between 2000 and 2003.  However, insecurity in the region had 
affected investment inflow.  India hoped that th e ongoing reform process would impart strength and 
stability to Rwanda's economic and social structures. 
69. Rwanda was an original WTO Member.  It a ssigned an important role to trade policy for 
achieving social and economic development and re ducing poverty.  However its manufacturing base 
was weak and 80% of its exports were of three co mmodities (coffee, tea, and coltan).  Rwanda had 
taken steps to bring laws and regulations into co nformity with WTO rules.  India noted Rwanda's 
need for technical assistance to discharge its multilateral obligations.  India sympathized with 
Rwanda's inability to implement tariff bindings , assumed during its pre- independence period. 
70. India and Rwanda enjoyed a valuable relations hip.  India had been offering training and 
technical assistance to Rwanda in  various fields, and was coopera ting in Rwanda's reconstruction 
process by establishing joint ventures in various infrastructural fields.  India was among the leading investors in Rwanda and was confident that its b ilateral interaction with Rwanda would widen and 
deepen.  
71. The representative of Egypt
 said that one of the impediments to Rwanda's development was 
its landlocked position, and, in th is regard, negotiations in the D oha Round could be important for 
Rwanda in terms of facilitation of trade.  Ta riff escalation impeded industry development and 
production of manufactured goods.  Egypt hoped that  the negotiations would enable Rwanda to 
become a net exporter of farming products.  The IF diagnostic study and the technical assistance 
identified would help Rwanda to fully benefit from WTO rules.   
72. The representative of Uganda  said that there was a lot in common between Uganda and 
Rwanda, in that they both belonged to COMESA , were LDCs, and shared the same route to 
Mombasa.  Instability was still a problem in the re gion and this hampered investment, tourism, and  WT/TPR/M/129 
 Page 13 
 
 
stabilized trade.  Rwanda's high population densit y negatively affected agriculture, on which 80% of 
the population depended.  Since Rwanda's eco nomy was commodity-dependent, volatility and 
negative fluctuation in prices contributed to a nega tive balance of payments.  Land and environmental 
degradation from high population growth eroded ga ins from agriculture.  A stable Rwanda would 
extend cross-border trade into Uganda, which woul d be welcomed.  Uganda would gain, albeit 
indirectly, from donor support for Rwanda, sin ce a rich Rwanda would consume goods from its 
neighbours as well as the developed world.  Uganda  therefore called upon donors to support Rwanda. 
73. The representative of Rwanda  said that his country had started again from zero in 1994.  
Rwanda had put in place institutions that achieved stable micro and macroeconomic policies with a 
8% growth.  Rwanda was proud of its zero rate in corruption.  Becoming a member of the 
international community would help Rwanda to ove rcome a hostile environment for trade.  Rwanda 
was a member of the COMESA free-trade zone and of the Intra-African Community, and was joining 
SADAC in order to boost trade with its neighbouring countries, and to speed up its participation in the 
multilateral trading system.  Rwanda was an or iginal WTO Member and was committed to its 
membership and to the IF.  Rwanda believed in fa irness in trade for all countries.  Trade was one of 
the best way to eradicate poverty;  it should sh ame the Western world to see poverty was still existing 
in Africa in the 21st Century.  Rwanda expected its partners  in development to create a basis to end 
poverty.  The representative assured Members that Rwa nda would contribute to fair world trade.   WT/TPR/M/129 
Page 14  
 
V. REPLIES BY THE REPRESENTATIVE OF RWANDA AND ADDITIONAL 
COMMENTS 
(i) Economic environment 
74. The representative of Rwanda
 said that his country had made tremendous efforts to address its 
economic shortcomings.  Rwanda, as a landlocked country, participated actively in regional and 
multilateral integration.  It was committed to WTO a nd to the multilateral trading system and asked its 
trading partners to help it to better integrate into that system;  Rwanda welcomed the IF initiative.  It 
had put in place measures to ensure that its trade po licy were in harmony with the needs of its people, 
its economy, and its regional partners in trade.  
75. The representative commented on two issues raised  by some delegations.  The first concerned 
security and its importance for trade and investment .  Rwanda was the most secure country in the 
region but was influenced by external factors mainly from neighbouring countries (instability in 
Democratic Republic of Congo).  Rwanda was highl y committed to maintaining security inside its 
borders within international norms , and believed that the international community has obligations in 
this regard.  Regarding coltan, the representative c onfirmed that Rwanda was one of the few countries 
with high reserves of high-quality coltan.  
(ii) Trade policy 
76. Rwanda was a member of the COMESA free-tr ade area and applied ta riff rates corresponding 
to the level of reduction of the exporting member state through the principle of reciprocity.  For non-
COMESA goods, the national tariff classification wa s 0% for capital goods, 5% for raw material, 15% 
for intermediate goods, and 30% for finished goods. 
77. Since 2004, Rwanda had been using the transac tion value method for valuation in conformity 
with the WTO Agreement on Customs Valuation, and had abolished its preshipment inspection 
requirement.  Rwanda applied COM ESA rules of origin for preferential purposes to member states.  A 
draft customs code that provided for the adoptio n of rules of origin was before Parliament. 
78. Internal taxation included VAT, income taxes, a nd local excise duties.  The tax administration 
reforms, since the creation of the Rwanda Revenue  Authority in 1997, had enabled smooth collection 
of taxes, and revenue from taxes had increased.  Prices were determined by the market.  Law No. 15/2001 required price tags to be attached on products. 
79. Rwanda bound all its tariffs at the conclusion of the Uruguay Round;  they comprised only  ad 
valorem  rates, ranging from zero to 100%.  However, Rwanda faced difficulties in implementing the 
bound rates because they were below COMESA rat es.  Rwanda intended to initiate rebinding 
negotiations and called for WTO Members support.   Some bound tariff lines had not yet been 
transposed into the Harmonised System but this was under way, and Rwanda welcomed any technical 
assistance in this matter.  All other duties and ch arges were bound at zero which Rwanda did not 
apply. 
80. Fiscal law reforms and the new Investment Code contained transparent investment incentives;  
additional incentives were provided to investors in the export-processing zone, which would be 
operational in early 2005. 
81. The Rwanda Bureau of Standards had been est ablished and 40 standards developed.  It was 
also an observer-member of ISO.  Rwanda was developing a national system for certification and accreditation, and quality and enviro nmental management systems.  A law on certification was under 
preparation.  WT/TPR/M/129 
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82. The Government Procurement Law was implemen ted by the Rwanda National Tender Board;  
a new law, which would increase accountability, tran sparency, and efficiency had been approved and 
was before Parliament. 
83. Protection of IPRs was a important part of Rw anda's trade policy, and new draft intellectual 
property laws, prepared with WIPO, were  before Cabinet for consideration. 
84. Competition issues were covered by Law No. 15/ 2001 on organisation of domestic trade, but 
specific legislation on competition was planned.  Rwa nda was also involved in the preparation of the 
COMESA competition policy. 
(iii) Sectoral policies  
85. In Rwanda, agriculture played a dominant role as it employed about 90% of the work force.  
The main crops – tea and coffee – provided more than  half of export revenue.  Agriculture policy was 
targeting food security by shifting from subsistenc e farming to market-driven agriculture, and by 
reducing the number of people working in the sector.  Liberalization in the sector began in 1998.  A 
new agriculture policy, aimed at increasing productivi ty and adding value to the traditional crops, was 
in place to promote exports. 
86. Rwanda's manufacturing sector was still under-d eveloped.  In its poverty reduction strategy, 
Rwanda intended to give it a leading role by cha nnelling investments into light industry, and through 
the establishment of free-trade zones, to promote lo cal processing of certain goods prior to export.  
Special attention was given to new products such as,  skins, leather, flour, and handicraft, to achieve 
both horizontal and vertical diversification. 
87. Performance in mining sector, which declined after the 1994 genocide, was increasing 
progressively.  It contributed 35.5% of total exports of goods in 2002. 
88. Rwanda suffered from insufficient energy supply , which had negatively affected productivity 
by increasing production costs.  Various measures had been taken to eradicate the power shortage:  a 
project to exploit methane gas from Lake Kivu would start very soon;  thermal generators had been 
bought and were being installed; and all duties on generators had been suspended to encourage the 
business community to import.   
89. Rwanda was a net importer of services.  Two companies were registered in the 
telecommunications sector:  one private, Rwandacell,  and the other public, Rwandatel, which was at 
advanced stage of privatization.  The transpor t sector was still poor but presented great investment 
opportunities.  Tourism, computer, and financial ser vices were potential engines for economic growth.  
Rwanda's commitments under GATS were limited to certain professional services, such as adult 
education, hotel and restaurant services, recr eational, and cultural and sporting services. 
90. Rwanda was fully committed to internati onal trade, and urged WTO Members and 
development partners to provide bot h financial and technical assistance to enable it to achieve its 
objective of promoting the welfare of its population and the whole world through equitable and rules-based multilateral trade. 
91. The discussant
 stated that all delegates had recogni zed that Rwanda had adopted a forward-
looking and open policy on trade.  It was doing the right things economically to point itself towards a better economic future.  The number of interventions has demonstrated the good will and interest in 
Rwanda's recovery and future de velopment shared by many WTO Members.  The tributes to Minister 
Nshuti's role in helping bring forward the DDA showed how a small and a comparatively poor 
country could play an important role in bringing forward world trade issues in the WTO.  Rwanda's 
policies were recognized as a very good basis for poverty reduction.  Despite a good growth rate, WT/TPR/M/129 
Page 16  
 
much needed to be done to make up for the d estruction in 1994.  The discussant hoped the IF 
diagnostic study would be completed very quickly  and would identify where specific help and 
technical assistance was needed.  
92. The representative of Burkina Faso
 said that Rwanda had made great efforts in addressing its 
socio and economic issues.  Like Burkina Faso , Rwanda was a landlocked country, which was a 
tremendous handicap. Rwanda was in a region wher e political stability was not guaranteed, and it was 
not easy to implement policies.  The genocide it e xperienced had been a terrible blow.  The progress 
made in recent years was very encouraging.  Burkina Faso and Rwanda had very good bilateral 
relations.  Burkina Faso supported Rwanda's requ est for support from WTO and the international 
community.  
93. The representative of Kenya  commended Rwanda for its efforts to jump-start an economy that 
had come to a complete standstill in 1994.  Regarding trade, Rwanda had fully embraced its international obligations.  The representative paid trib ute to Minister Nshuti's effective participation in 
the July 2004 General Council Meeting.  Rwanda  had become a full and effective WTO Member.  
Kenya supported Rwanda's appeal for support in technical and capacity building assistance, direct 
investment, and cooperation.  Rwanda was a CO MESA member, and was jo ining the East-African 
Community.  
94. The discussant
 stressed Rwanda's strong need for diversification, building up the supply side, 
and adding value to its products.  It would clearly need more help from the international community 
to achieve this. 
95. Steps needed to be taken to encourage FDI, a nd improve infrastructure.  The privatization of 
Rwandatel and introduction of comp etition in the cellular market also  needed to be encouraged, and 
should increase teledensity, which was very low.  He urged Rwanda to implement its very forward-
looking reform programme.  Rwanda  was paying attention to governme nt procurement and IPR in its 
implementation and legislation progr amme, and it was looking at its pre-Uruguay round tariffs to try 
to bring them into line.  The setting up of the tr ade policy forum should help Rwanda to identify its 
economic and national interests in a mo re efficient and wide-ranging way.  
96. The discussant hoped that insecurity in Rwanda 's surrounding area would improve and would 
lead to Rwanda being rewarded with success in addressing its problems and fulfilling its vision of a 
middle-income country by 2020.   
97. The representative of Rwanda  thanked the discussant and all delegations for their helpful and 
supportive comments.  Rwanda was making huge efforts to integrate a planned trade strategy into its 
economy, and having achieved macroeconomic stabilit y, Rwanda's priority was to improve living 
conditions for its people.  Rwa nda believed that trade and pove rty reduction were linked, and 
development aspects were more important than net trade benefits.  Rwanda assured Members that 
with the support of the WTO membership, it would try to honour its obligations.  Clearly, however, Rwanda needed to receive technical assistance as  well as foreign investment.  This Review had 
revealed the foundations that Rwanda had laid, the tr ansparency of its market, the reforms it had been 
adopting to guarantee security for investment, and its integration into regional structures.  
 
   
  WT/TPR/M/129 
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VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
98. The present Review has allowed Members to co me to a better understanding of Rwanda's 
economic situation, its reconstruction efforts sin ce the 1994 genocide, the enormous challenges it still 
faces and its reform agenda.  For this, we have been  greatly helped by Rwanda's delegation, led by 
Prof. Paul Manasseh Nshuti, Minister of Commerce, Industry, Investment Promotion, Tourism and 
Cooperatives, and by the discussant, Mr. Neil McMillan.   
99. Members commended Rwanda on its macroeconomic reform effort s, which have resulted in 
its economic growth during the past ten years. They noted Rwanda's dependence on tea and coffee, 
and stressed that its high production costs, due to  poor infrastructure, energy shortages and high 
transport costs related to its landlocked geographical situation, needed to be addressed to improve its 
supply-side capacity and diversify its economy.  To  this end, Members welcomed the Government's 
economic programme "Rwanda Vision 2020".  Debt  relief under the HIPC initiative and increased 
foreign direct investment should also help. 
100. Members commended Rwanda on the role it played in helping to move forward the Doha 
Development Agenda, and were s upportive of its intent to establish a national committee on the WTO 
issues.  Members congratulated Rwanda for its pa rticipation in the free-trade area of COMESA and 
welcomed the increase in its trade with the other members.  However, Members warned against the 
challenges and complexity of active involvement in  several overlapping trade regimes.  They also 
noted the potential gains for Rwanda from improve ments in market access that would arise from 
completion of negotiations under the Doha Deve lopment Agenda, especially in agriculture.   Some 
concerns were raised, however, about the difficulti es faced by Rwanda in fulfilling its obligations. 
101. Members stressed that further macroeconomic a nd structural reforms would allow Rwanda to 
increase its benefits from the multilateral trading sy stem, and invited Rwanda to further improve the 
transparency and predictability of its trade regime .  Members were pleased that Rwanda was 
participating in the Integrated Framework (IF) a nd supported the Government's call for the Diagnostic 
Trade Integration Study (DTIS) to be completed as  soon as possible.  They considered that the IF 
could help to meet priority technical assistance ne eds, and integrate trade reforms into Rwanda’s 
overall poverty-reduction strategy.   
102. Some clarification was sought on:  the inform al sector;  the enactment of the new public 
procurement law;  existing legisl ation on intellectual property rights;  institutional framework;  
judiciary reform; investment regime;  export promoti on strategy;  privatization;  competition policy;  
services;  sanitary and phyto-sanitary measures;  ot her duties and charges;  and price controls.   
103. Members appreciated the responses provided by the Rwandan delegation.   
104. I think that this meeting has allowed a profoun d reflection on assistance needed by Rwanda in 
the reconstruction of its economy.  It has drawn atte ntion to Rwanda's determin ation to continue with 
economic reforms, as well as to areas in which policy reforms could be further enhanced.  I trust that 
the main considerations of this  Review will be included into the Integrated Framework process in 
order to reinforce the linkages between trade polic y and poverty-reduction strategy.  I urge all 
Members to support Rwanda in its efforts to tackle the challenges it faces, and to be attentive to its 
request for technical assistance. 
__________