99-0722 MOREPRESS RELEASE
EMBARGO:  NOT FOR PUBLICATION UNTIL
1300 GMT 26 FEBRUARY 1999
PRESS/TPRB/104
23 February 1999
GUINEA SHOULD CONTINUE ITS REFORMS AND IMPROVE
ITS INFRASTUCTURE TO ATTRACT MORE INVESTMENT
Reforms introduced since 1985 have led to a significantly more liberal economy and trade
regime in Guinea, with annual GDP growth of over 2 per cent since 1989. A new WTO report on
Guinea's trade policies and practices notes that the country's trade balance is improving, but that
Guinea should continue to implement reforms and privatization programmes so that it can fully
exploit its economic potential.
The WTO Secretariat report and a policy statement by the government of Guinea, will serve
as the basis for two days of discussion at the WTO's Trade Policy Review Body  on 25 and
26 February 1999.
The report notes that Guinea's economy is highly dependent on the exploitation of mineral
resources - mostly bauxite -  and that minerals account for over 90 per cent of earnings frommerchandise exports. In 1996, the European Union and the United States absorbed more than 70 per
cent of Guinean exports, with alumina going mostly to the United States and diamonds and gold to
Europe. Guinea's main suppliers are the European Union – chiefly France – the United States, Côte
d'Ivoire, Japan and the Economic Community of West African States (ECOWAS).
The report notes that Guinea's import duties average 16.4 per cent and range from a low of
2 per cent to a high of 32 per cent. There is little variation among products and the rates show a
generally negative escalation from unprocessed products to finished goods. The most protected goods
are foodstuffs. The least taxed goods are non-electrical machinery and transport equipment. Guinea
also applies other duties and charges such as preshipment inspection fees, which significantly increasethe import duty. A consumption surcharge of up to 70% is also collected on both imports and locally
produced goods. Like other WTO members, Guinea bound its tariffs on agricultural products in the
Uruguay Round. Import duties and taxes on almo st all other products have not been bound.PRESS/TPRB/104
Page 2/3
MOREThe mining sector benefits from the highest nominal tariff protection. Currently, the main
objective of Guinea's mining policy is to promote locally processed exports of its vast mineral
resources.
The report notes that Guinea has considerable potential for developing its rural activities.
Reforms in the agricultural sector have led to the abolition of the marketing boards, the liquidation orprivatization of most of the State enterprises and to the elimination of price controls.
Manufacturing activity in Guinea, already poorly developed, has fallen further following
cessation of activities of certain State enterprises. Current constraints have failed to awaken the
enthusiasm of private investors. Development is hampered by the high cost of finance and inputs, the
difficulties of obtaining access to credit, the lack of infrastructure, power cuts and the structure of
import duties.
The services sector, dominated by informal trade, is expanding and accounts for more than
50 per cent of real GDP. The report notes that while efforts have been made to liberalize the sector,
the government's commitments under the General Agreement on Trade in Services (GATS) are
limited. Informal activities, spread across all economic sectors, reportedly account for 60 per cent ofGDP and supply 90 per cent of non-agricultural jobs outside the civil services.
Guinea is a signatory of the Economic Community  of West African States (ECOWAS) which
provides for the establishment of a customs union, free trade in services and free movement of capital
and persons by 2005. However, the report notes that the timetable for the implementation of thoseprovisions, including the establishment of the customs union is not being respected.
As a signatory to the Fourth Lomé Convention, Guinea receives aid from the European Union
(EU) and a large number of Guinean products receive  non-reciprocal preferential treatment upon entry
to the EU. Similarly, Guinean products are granted non-reciprocal preferential access to the marketsof developed countries other than the EU in the framework of the Generalized System of Preferences
(GSP). The report notes however that the scope of these different non-reciprocal preferential
treatments is limited, particularly by the small number of products exported by Guinea, i.e. raw
materials generally subject to zero or very low most-favoured-nation (MFN) import duties in the
importing countries.
Intellectual property rights in Guinea are protected by a copyright law of August 1980 and its
implementing decree and the Bangui Agreement on Intellectual Property signed by some 15 African
countries which established the African Intellectual Property Organization (AIPO). Work is under
way in AIPO to bring the provisions of the Bangui  Agreement into conformity with the obligations of
WTO Members under the Agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS). In the field of intellectual property, the most common infringement in Guinea is thecounterfeiting of trade marks.
The report concludes that by pursuing its reforms, including privatization, and by redirecting
public investment towards basic infrastructure, Guinea should be able to improve the international
competitiveness of its products by reducing production costs and attracting more private capital.PRESS/TPRB/104
Page 4
MORENotes to Editors
The WTO's Secretariat report, together with a policy statement prepared by Guinea, will be
discussed by the WTO Trade Policy Review Body (TPRB) on 25 and 26 February 1999. The WTO's
TPRB conducts a collective evaluation of the full range of trade policies and practices of each WTO
member at regular intervals and monitors significant trends and developments which may have an
impact on the global trading system. The Secretariat report covers the development of all aspects ofeach of Guinea's trade policies, including domestic laws and regulations, the institutional framework,
trade policies by measure and by sector. Since the WTO came into force, the areas of services and
trade-related aspects of intellectual property rights are also covered.
To this press release are attached the summary observations from the Secretariat report and a
summary of the government report. The full Secretariat and government reports are available for
journalists from WTO Secretariat on request (call 41 22 739 5019). They are also available for the
press in the newsroom of the WTO internet site (www.wto.org). The Secretariat report, together with
the government policy statement, a report of the TPRB's discussion and the Chairman's summing up,
will be published in hardback in due course and will be available from the WTO Secretariat, Centre
William Rappard, 154 rue de Lausanne, 1211 Geneva 21.
Since December 1989, the following reports have been completed: Argentina (1992 & 1998),
Australia (1989, 1994 & 1998), Austria (1992), Bang ladesh (1992), Benin (1997), Bolivia (1993),
Botswana (1998), Brazil (1992 & 1996), Burkina Faso (1998), Cameroon (1995), Canada (1990,
1992, 1994, 1996 & 1998), Chile (1991 & 1997), Colombia (1990 & 1996), Costa Rica (1995), Côte
d'Ivoire (1995), Cyprus (1997), the Czech Republi c (1996), the Dominican Republic (1996), Egypt
(1992), El Salvador (1996), the European Communities (1991, 1993, 1995 & 1997), Fiji (1997),
Finland (1992), Ghana (1992), Hong Kong ( 1990, 1994 & 1998), Hungary (1991 & 1998), Iceland
(1994), India (1993 & 1998), Indonesia (1991, 1994 & 1998), Israel (1994), Jamaica (1998), Japan
(1990, 1992, 1995 & 1998), Kenya (1993), Korea, Rep. of (1992 & 1996), Lesotho (1998), Macau
(1994), Malaysia (1993 & 1997), Mali (1998), Mauritius (1995), Mexico (1993 & 1997), Morocco(1989 & 1996), New Zealand (1990 & 1996), Namibi a (1998), Nigeria (1991 & 1998), Norway (1991
& 1996), Pakistan (1995), Paraguay (1997), Peru (1994), the Philippines (1993), Poland (1993),
Romania (1992), Senegal (1994), Singapore (1992 & 1996), Slovak Republic (1995), the Solomon
Islands (1998), South Africa (1993 & 1998), Sri La nka (1995), Swaziland (1998), Sweden (1990 &
1994), Switzerland (1991 & 1996), Thailand (1991 & 1995), Togo (1999), Trinidad and Tobago(1998), Tunisia (1994), Turkey (1994 & 1998), the United States (1989, 1992, 1994 & 1996), Uganda
(1995), Uruguay (1992 & 1998), Venezuela (19 96), Zambia (1996) and Zimbabwe (1994).PRESS/TPRB/104
Page 5
MORETRADE POLICY REVIEW BODY
GUINEA
Report by the Secretariat – Summary Observations
Economic environment
Located on the west coast of Africa, Guinea is a least-developed country (LDC), independent
since 28 September 1958.  Upon achieving independence, Guinea opted for a socialist regime that
allowed the State to intervene in most economic activities.  This State intervention discouraged
private initiative, and, with the starting up of mining activities in 1975, encouraged the economy to
become dependent on bauxite mining.  Guinea left the franc zone in 1960 and created its own Central
Bank with a national currency, the Guinean franc.
The economic growth sustained by mining was slowed by the second oil shock in 1979-80
and the fall of bauxite prices.  In response to the economic difficulties resulting from this situation, the
first reform measures were taken by the Government at the beginning of the 1980s.  The change in the
political regime in 1984 favoured a certain radicalization of reforms in the direction of economic
liberalization.  An Economic and Financial Reform  Programme (PREF) was adopted in 1985 with the
support of the International Monetary Fund (IMF) and the World Bank, with a view to restoring
macroeconomic and financial balances, reviving growth and improving the living conditions of the
Guinean population.
Social disturbances, increases in salaries and family allowances, and decreases in alumina
prices sporadically frustrated the implementation of  reforms.  In 1996, in response to the persisting
macroeconomic imbalances, a long-term development strategy (Guinea, Vision 2010) based on
exploitation of the country's potential by private operators was adopted.  A second three-year
Enhanced Structural Adjustment Facility (ESAF) was approved by the IMF for Guinea in
January 1997.
With the exception of the 2.4 per cent and 2.9 per cent growth rates recorded for 1991 and
1992 respectively, the various reforms have led to an annual increase in real GDP of at least 4 per cent
since 1989.  Inflation has been contained and its level has fallen from 19.4 per cent in 1990 to 1.9 per
cent in 1997.  The trade balance, which is in perpetual deficit, is improving steadily;  it could show a
slight surplus in 1998 as a result of increased bauxite exports.  However, compared with otherexternal balances, the results of the reforms remain  modest.  The deficit in Guinea's current balance,
which can be attributed to the services balance, incl uding interest on external debt, is the main reason
for the unfavourable overall balance:  Guinea's net services imports have generally exceeded net
capital flows in its favour.
The Guinean economy remains dependent on the exploitation of mineral resources with
which the Guinean subsoil abounds.  Bauxite (the main mineral resource), gold and diamonds arecurrently mined on an industrial scale.  These resources undergo little local processing, but still
account for over 90 per cent of the goods export revenue.  Their contribution to real GDP, however is
falling.  Guinea also has considerable potential for the development of rural activities.  Manufacturing
activity, already poorly developed, has fallen following the winding up or cessation of the activities of
certain State enterprises, as current constraints on the sector have failed to awaken the enthusiasm ofprivate investors.  The services sector, dominated by informal trade, is progressing, and accounts for
more than 50 per cent of real GDP.  Informal activities, which are a feature of all sectors, reportedly
account for 60 per cent of GDP and supply 90 per ce nt of non-agricultural jobs outside the civil
service.  They range from retail trade (50 per cent of informal jobs) to vehicle repair (30 per cent of
informal jobs), including exchange activities.PRESS/TPRB/104
Page 6
MOREIn 1996, the European Union and the United States absorbed more than 70 per cent of
Guinean exports.  Canada has also proved an important outlet for Guinean products over the pastyears.  On the other hand, for several years Guinean exports to the Commonwealth of Independent
States have been on the decrease, reflecting the end of the socialist era in Guinea, with the progressive
maturing of the last counter-trade contracts.  Alum ina is exported mainly to the United States and
Spain, and diamonds and gold to Europe.  Guinea's main suppliers are the European Union (chiefly
France), the United States, Côte d'Ivoire and Japan.  China's share of the Guinean market fell fromover 10 per cent in 1993 to 2.4 per cent in 1996 ow ing to the redirection of Guinea's trade towards
non-socialist countries following the economic open ing up of the country.  The ECOWAS countries
supply around 20 per cent of Guinean  imports.
Institutional framework
Under the Constitution of December 1990, the Republic of Guinea is a pluralist democracy.
The President of the Republic is the Head of State, elected by direct universal suffrage for a term of
five years, renewable only once.  Executive power is vested in the President, who lays down the main
lines of State policy and appoints the Prime Minist er and other members of the Government.  The
Government defines and implements national policy.  The National Assembly exercises legislative
power, and votes the laws.  The Economic and Social Council must be consulted on draft laws, plansand programmes of an economic nature.
Since 1992, Guinea has been implementing numerous reforms of a regulatory nature
(publication of a code of economic activities) and of an institutional nature (reform of justice) aimed
at ensuring a business environment more favourable to the development of economic and financialactivities.  The Investment Code, introduced in 1987 modified in 1995 and recently amended, aims at
encouraging national and foreign economic operators to invest in Guinea and to contribute in this way
to the achievement of the Government's objectives, namely the creation of a suitable environment for
the development of the private sector in all areas.  The Investment Code guarantees the same rights
and obligations to private and public enterprises, whether national or foreign.  It guarantees freedomto transfer capital, income and salaries for foreign natural and legal persons.  However, in order to
qualify for the benefits offered by the Code, enterprises must belong to the priority sectors of activity
and must be approved.  Among other things they must give priority to Guinean citizens as regards
jobs, and maintain the quality and level of their investments.  Like the Investment Code, the 1995
Mining Code provides that any national or foreign, public or private natural or legal person comingunder Guinean law and possessing the necessary technical and financial capacity may exploit mineral
substances or quarries in Guinea.  However, the semi-industrial and small-scale  mining of precious
substances and the marketing of diamonds and other gems is authorized only for Guinean natural or
legal persons.  Moreover, the exploitation of mines and quarries qualifies for tax relief.
Guinea became a Member of the WTO on 25 October 1995 after having applied the GATT de
facto from 24 June 1994.  Guinea grants at least most-favoured-nation treatment to all of its tradingpartners.  Like other WTO Members, Guinea has adopted all the results of the Uruguay Round and
has accepted commitments in the form of tariff bindings and measures relating to the modes of supply
of certain services.  It has benefited from the treatment granted to the LDCs, notably in the form of
exemptions or delayed implementation of certain provisions, and it should benefit in particular from
the strengthening of rules and disciplines in the mu ltilateral trading system.  The concern in Guinea is
to achieve diversification (horizontal and vertical) of production and exports, i.e. an increase in supply
which will enable it to make better use of its potential and existing opportunities, as well as those
which should result from continued liberalization at the multilateral level.  Guinea hopes that the
technical assistance provided for under the integrated technical assistance programme launched by the
WTO and other organizations at the High-Level Meeting held in Geneva in October 1997 will help itto increase and diversify its production and exports while improving their quality, to make the WTO
agreement more generally known and to increase the number of its trading partners.PRESS/TPRB/104
Page 7
MOREGuinea is a member of the Economic Commun ity of West African States (ECOWAS) for
which the treaty was signed on 28 May 1975.  The 1993 amendment to the Treaty provides, inter alia,
for free trade in services and the free movement of capital and persons within the Community at the
end of the five-year period following the establishment of the customs union scheduled for the year
2000.  However, the timetable for the implementation of this union is not being respected.  Guinea has
also been a member of the Mano River Union (M RU) since 1979.  The Declaration of 3 October 1973
establishing the MRU provided for the gradual introduction of a customs union and the promotion of
community development projects in all sectors, including services.  However, the MRU is
encountering a number of difficulties in setting itself up, and trade between the three countries is
therefore marginal.
As a signatory to the Fourth Lomé Convention, Guinea receives aid from the
European Union.  A large number of Guinean products receive non-reciprocal preferential treatmentupon entry to the EU.  Similarly, Guinean products are granted non-reciprocal preferential access to
the markets of developing countries other than thos e of the European Union in the framework of the
Generalized System of Preferences.  The scope of these different non-reciprocal preferential
treatments is limited, particularly by the small number of products exported by Guinea, i.e. raw
materials generally subject to zero or very low MFN import duties in the importing countries.
As of September 1998, Guinea had not been involved in any dispute settlement procedure
within the GATT, the WTO or any other trade agreement to which it is a signatory.
Trade policy features
Trade policy instruments and their impact
The reforms carried out by Guinea since 1985 have enabled it to significantly liberalize its
economy and its trade.  Quantitative restrictions were abolished on most products, with the exception
of potatoes, whose import is prohibited from February to June each year in order to allow localproduction to be sold.  Other restrictions are also maintained for health, security or moral reasons or
under international conventions to which Guinea is a signatory.  Moreover, under the Programme for
the Security of Customs Revenue, the implementation of which was entrusted in June 1996 to the
Société générale de surveillance (SGS), all impor ts whose f.o.b. value is at least US$2,000 must be
covered by a descriptive import application (DDI);  preshipment inspection is required if the f.o.b.value is at least US$5,000.
The following duties and taxes are levied on imports in Guinea:  an import customs duty
(DDE) of 2 per cent or 7 per cent;  a fiscal import duty (DFE) of 6 per cent, 8 per cent, 22 per cent or
23 per cent;  a clearance fee (RTL) at a single rate of 2 per cent;  a community levy (PC) of 0.5 per
cent on all imports from countries outside ECOWAS;  and an "additional centime" (CA) of 25 per
cent paid to the Chamber of Commerce.  Import duties are ad valorem;  however, there is a minimumlevy of GF 400 per litre for wines.  The simple arithmetic mean of these import duties (excluding the
PC and CA) is 16.4 per cent, with a minimum rate of 2 per cent and a maximum of 32 per cent.  There
is little variation among products (the modal rate is 17 per cent) and the rates show a generally
negative escalation from unprocessed products to finished goods:  subject to exemptions, unprocessed
products benefit from the strongest nominal tariff protection, followed by semi-finished goods.  Thisshould be reflected in nominal rates higher than the effective production rates.
The most protected goods are foodstuffs, and the least taxed goods are non-electrical
machinery and transport equipment. Preshipment inspection fees, borne directly by the importers, can
add up to about six additional percentage points to the tariff protection level (in the absence ofinspection).  Special taxes (which cannot be cumulated with other import duties and taxes) are levied
on imports under certain particular customs regimes:  a registration tax (TE) of 0.5 per cent is leviedPRESS/TPRB/104
Page 8
MOREon imports carried out by enterprises approved under the Investment Code;  a storage tax (TEN) of
1 per cent is levied on goods placed in storage;  and a transit duty (DT) of 3 per cent is levied on thegoods concerned.
A consumption surcharge has also been levied  on "luxury products" since 1986.  On imports,
the surcharge is ad valorem and comprises eight rates, from 5 per cent to 70 per cent.  It is also levied
on locally manufactured products, such as beer and cigarettes.  However, the method of taxing local
products differs from that for imports of identical products:  for example, beer produced locally is
subject to a surcharge (specific) of GF 20 per bottle of 50 centilitres or less, while imported beers are
taxed at 70 per cent.  This difference in taxation generally observed provides additional protection for
local products.  The Special Tax on Petroleum Products (TSPP) is a domestic tax levied on imports of
petroleum products in addition to the DDE of 7 per cent , the DFE of 8 per cent and the RTL of 2 per
cent.  It amounts to GF 355 per litre for petrol, GF 245 per litre for diesel, GF 160 per litre for
petroleum spirit and GF 135 per litre for kerosene.  Since 1 June 1996, a value added tax (VAT) of18 per cent has been levied on imports of local products.  An additional flat-rate levy of 3 per cent is
applied to all imports carried out by natural or legal persons not registered for VAT.  The levy is
charged against the tax on industrial and commercial profits and corporation tax on behalf of the
National Tax Directorate.
Under the Uruguay Round, Guinea has bound its tariffs applicable to imports of agricultural
products (like the other Members of the WTO).  For this purpose, it adopted rates of:  40 per cent for
the import customs duty (DDE), 8 pe r cent for the fiscal import duty (DFE) and 2 per cent for the
clearance fee (RTL).  However, DFE rates of 22 per cent and 23 per cent are applied to products such
as rice, flour and vegetable oil.  Apart from Chapters 45 (cork and articles of cork), 47 (pulp and othercellulosic materials), 66 (umbrellas, walking sticks, etc.) and 86 (railway/tramway locomotives,
rolling stock, etc.) of the Harmonized System, import duties and taxes on other products have not
been bound.  The DDE rates have been bound at 40, 20, 30 and 25 per cent respectively for the
products in these Chapters.  The DFE, TLR and TCA have been bound at rates of 8, 2, and 13 per cent
respectively for those products.  Thus, the bindings cover a limited number of products and moreover,they leave Guinea a certain latitude owing to th e wide gap between the bound duty rates and those
applied.  However, these bindings do not concern products previously included in Guinea's Schedule
CXXXVI, i.e. those for which the rates were bound when Guinea was a colony.
For exports, a fiscal export duty (DFS) of 2 per cent is levied on all products with the
exception of mineral products and derivatives, and coffee.  The DFS is 3 per cent for gold and
diamonds produced on a small scale (or 2 per cent if such gold is exported by the Central Bank) and
GF 25,000 per tonne of scrap.  A tax of US$13 is levied per tonne of coffee.  A 2 per cent tax is levied
on all re-exported products.  Taxes are also collected by the Central Bank on exports of bauxite and
alumina and paid into a special account as an ad vance payment on the various taxes payable by the
Guinea Bauxite Company (Compagnie de Bauxite  de Guinée - CBG) and FRIGUIA (which produces
alumina).  These advance payments are from US$8 to 9 per tonne of bauxite (they vary according tothe world price for bauxite) and amount to US$1.75 pe r tonne of alumina.  The tax (advance payment)
on alumina is actually collected at a rate of US$0.5 per tonne of bauxite consumed in producing it.
Exports are subject to Descriptive Export Applications (DDE), which replace the export
licences abolished in 1986.  The formalities for obta ining a DDE take not more than three working
days.  Exports of gold and diamonds produced on a small scale are carried out by the BCRG.  For the
purpose of promoting exports, tax and customs advantages are granted by the different codes in the
form of suspension of duties and taxes;  temporary admission;  exemption from the tax on industrial
and commercial profits for five years (in proportion to the export turnover); and reimbursement of
VAT credits on inputs and factors of production used to manufacture the exported goods (for thepurpose, exports are zero-rated for VAT).  Moreover, in addition to the privileges common to the
various regimes under the Investment Code, further advantages are granted to enterprises (whetherPRESS/TPRB/104
Page 9
MOREexporters or not) which make use of Guinean products representing over 50 per cent of their
intermediate consumption during the fiscal year.
Since 1986, price controls have been progressively streamlined in Guinea.  In practice, only
petroleum products are regulated.  These prices, set by an interministerial technical council and kept
identical throughout the country thanks to an equalization system, are approved for one year.  The
scale of charges taken into account in forecourt prices is revised monthly.  Moreover, thanks to thereform of State enterprises in the framework of the Structural Adjustment Programme, it has been
possible to substantially reduce State involvement in economic activities.  However, the
implementation of these reforms has been slowed down over the past five years by the lack of
purchasers for certain companies.
In Guinea, intellectual property rights are protected by the Bangui Agreement on Intellectual
Property signed by some 15 African countries and establishing the African Intellectual PropertyOrganization (AIPO), as well as a copyright law of August 1980 and its implementing decree.  Work
is under way in the AIPO to bring the provisions of the Bangui Agreement into conformity with the
obligations of WTO Members under the Agreement on Trade-Related Aspects of Intellectual Property
Rights.  In Guinea, the Industrial Property Service (SPI) is the national structure for liaison with the
AIPO.  In the field of intellectual property, the most common infringement in Guinea is thecounterfeiting of trade marks.  Penalties have consisted in seizure of the products concerned, the fate
of which is decided by the plaintiffs (right holders).  The Guinea Copyright Office has had problems
enforcing these rights among the main users of the works concerned.
Policies by sector
The economic reforms embarked upon by Guinea under the structural adjustment
programmes in place since 1985 have affected the different sectors of activity to varying degrees.  In
the agricultural sector, these reforms have enabled the agricultural produce marketing bodies to be
abolished, most of the State enterprises operating in the sector to be liquidated or privatized and theprice controls which applied to the main agricultural products to be lifted.  However, the objectives of
the agricultural policy currently being implemented, namely food self-sufficiency and increased
agricultural exports, have made it possible to prohibit imports of potatoes from February to June of
each year and to apply flat-rate values to others (notably rice and certain beverages).  The average
import duty on agricultural products (16.6 per cent) is slightly above the average for all imports(16.4 per cent).  Relief from duties and taxes is also  granted to inputs used in agricultural production;
agricultural income is not taxable.  The State has maintained its presence in two branches:  cotton,
which is still not very developed, via a project structure supervised by the Compagnie française pour
le développement des textiles, and in the oil palm and rubber tree branch, through a State enterprise
created in 1987.
Mining is the sector which benefits from the highest nominal tariff protection.  However, the
liquidation and privatization of State enterprises have reduced Government intervention in the
activities of this sector.  At present, the Société des bauxites de Kindia is the only State enterprise
whose privatization is not being considered.  The main objective of mining policy is currently to
promote exports of Guinea's vast mineral resources, after they have been processed locally.  With that
in mind, a system of taxation in stages (mining tax of zero to 10 per cent) has been introduced, withthe highest rates being applied to exports of unprocessed mineral products.  Furthermore, export
duties of 2 or 3 per cent are levied on products su ch as gold, diamonds and other gemstones;  these
duties amount to GNF 25,000/tonne on ferrous scrap and US$8 to 9/tonne on bauxite, compared with
US$1.75/tonne on alumina.  Tax and customs advantages are also provided for under the Mining
Code in favour of investment in this sector.  Agreed rates (reduced rates) for the specific tax onpetroleum products are likewise applied.PRESS/TPRB/104
Page 10
MOREThe manufacturing sector remains poorly developed, despite the Government's
disengagement from certain activities.  Private sector reluctance to take over the privatized industriescan be explained by the problems experienced in the sector.  Indeed, development is hampered by the
high cost of finance and inputs, the difficulties of obtaining access to credit, the lack of infrastructure,
and the power cuts as well as the structure of import duties (negative escalation from unprocessed
products to finished goods).  These different factors push up the cost of certain inputs and basic
services, which generally cost more in Guinea than in other countries of the West African subregion,thereby limiting the international competiveness of Guinean manufactured products.
Efforts have been made to liberalize the servic es sector, largely dominated by informal trade.
However, they have been followed up by little in  the way of commitments at the multilateral level,
which means that the irreversibility of the reforms is not guaranteed.  Guinea's bindings are limited to
measures concerning modes of supply of certain services in the field of transport, hotel services,
veterinary medicine and social services.  Moreover, the monopolies enjoyed by certain private ormixed enterprises have been sanctioned in the supply of certain services, either de facto (because of
the small size of the market) or as a transitional step towards future full liberalization.  Thus, the
Société de télécommunications de Guinée (SOTELGUI), which is currently 60 per cent owned by
Telecom Malaysia Berhard and 40 per cent owned by the Guinean Government, has a monopoly over
the supply of basic telecommunication services.  The autonomous port and the airport of Conakry aremanaged by public or semi-private enterprises, where the Government is a majority shareholder.
Trade policies and trading partners
As can be seen from the growth rate of the economy and the GDP per capita for almost a
decade, the reforms introduced with a view to lib eralizing the Guinean economy have begun to bear
fruit.  However, it will be some time before Guinea will be able to fully exploit its enormous potential.
This is due to the lack of infrastructure, one of the main reasons for the relatively high cost of inputs
and basic services.  By pursuing its reforms, including privatization, and by redirecting public
investment towards basic infrastructure, Guinea should be able to improve the internationalcompetitiveness of its products by reducing production costs, and to attract private capital.  By
strengthening its competition policy, Guinea would be able to ensure that the reform of State
enterprises did not result in the transfer of monopolies originally held by those enterprises to private
companies.  This threat, which is favoured, inter alia, by the limited size of the market, appears to be
taking concrete form in certain branches of activity.
Like the other developing countries, Guinea would like the results of the Uruguay Round to
be more widely known.  According to the authorities, this is particularly necessary and urgent owing
to the fact that, not having directly participated in the negotiations, certain aspects of these results and
the scope of certain commitments are not very well understood.  This is true, for example, for
Guinea's commitments in the form of tariff bind ings.  Thus, Guinea would appreciate technical
assistance in this respect.PRESS/TPRB/104
Page 11
MORETRADE POLICY REVIEW BODY
GUINEA
Report by the Government – Parts I and II
I. INTRODUCTION
1. The Republic of Guinea is situated on the west coast of Africa.  It covers an area of
approximately 245,000 km2
 and has a population of 7.1 million (most recent census of 1997), i.e. an
average density of 17 inhabitants per km2.
2. Annual per capita income in Guinea is US$513, which places it in the category of the world's
least-developed countries (LDCs).
3. With respect to the economic situation in Guin ea, it should be noted that the change in
political regime of 3 April 1984 marked the birth of a new system for managing the country.  From
the political standpoint, the cornerstone of the system is pluralist democracy, while from the economic
standpoint it is the encouragement of private initiative and free enterprise.
4. Until 1984, the Guinean economy, which at the time was highly centralized, was in a difficult
situation, with a negative growth rate, an overvalued currency and a GDP of less than US$300.
5. In 1986, Guinea firmly opted for a liberal economy.  With the help of two of its main
development partners, the IMF and the World Bank, it launched a structural adjustment programme.
6. This programme essentially aimed at re-establishing macroeconomic balances with a view to
creating the necessary conditions for sustainable economic growth in the country.
7. Specifically, the programme involved:
(i) Complete restructuring of the country's banking system, with the creation of six
private commercial banks;
(ii) change of currency, readjustment and libera lization of the exchange rate against the
main foreign currencies;
(iii) privatization of all State enterprises;
(iv) reduction in civil service personnel.
8. Following these reform measures, GDP growth rate  in real terms rose to an average of 4.4 per
cent during the period 1987-1990.
9. The inflation rate fell from 71.9 per cent in 1987 to 3 per cent in 1996, and the current
balance-of-payments deficit dropped from 13.4 per cent of GDP in 1988 to 8.9 per cent in 1995.
10. In 1996, the new Guinean authorities brought in following the restructuring of the
Government in July of that year, with the appointment of the Prime Minister, set as the main targets of
Guinea's current economic policy:
(i) To achieve economic growth in real terms of about 4.9 per cent of GDP per year
(5 per cent on average for the rural sector);
(ii) to reduce the inflation rate;PRESS/TPRB/104
Page 12
MORE(iii) to reduce the external current account deficit in order to rebuild official reserves in a
significant way;
(iv) to reduce the budget deficit;
(v) to increase primary savings;
(vi) to reduce the deficit in the current account of the balance of payments;
(vii) to consolidate and improve the legal and institutional framework;
(viii) to strengthen primary education and improve the quality of educational services;
(ix) to develop human resources.
11. To that end, the Guinean Government took certain concrete steps while at the same time
seeking to promote and attract foreign direct investment by redirecting its resources towards priority
and high value-added sectors:
(i) Adoption of a programme for ensuring the security of customs revenue in cooperation
with an independent surveillance company;
(ii) improvement of the collection of fishing fees;
(iii) increase in revenue from the special tax on petroleum products;
(iv) control and reduction of exemptions;
(v) reduction of State expenditure by more than 30 per cent.
II. TRADE POLICIES AND PRACTICE
A. GENERAL TRADE POLICY OBJECTIVES
12. The liberalization of Guinea's economic activities has found concrete expression in the trade
area through:
(i) Transfer to the private sector of all commercial functions formerly exercised by the
State;
(ii) creation of structures for private sector support and promotion;
(iii) continued implementation of the programme to build up export facilitation
infrastructures;
(iv) integration of trade into the production process with active private sector
participation;
(v) determination and improvement of trade regulations;
(vi) adaptation of Guinean laws and regulations to bring them into line with the new
requirements of the multilateral trading system resulting from the WTO Agreements.PRESS/TPRB/104
Page 13
MORE13. Generally speaking, the main objective of Guinea's trade policy is to develop the trade sector
in the country in order to make it a leading instrument of support for the production sector (industry,agriculture, crafts, etc.) and to enable it to play its full role as an engine of growth and economic
development.
14. To that end, the Guinean Government will pursue its efforts to:
(i) Guarantee and preserve complete liberalization of the trade professions;
(ii) ensure the maintenance of a policy of free prices and competition;
(iii) streamline the formalities for setting up enterprises;
(iv) promote crafts and tourism;
(v) broaden the foundations of the structure permitting permanent consultations with the
private sector.
B. S
ECTORAL TRADE POLICY OBJECTIVES OF GUINEA
1. Agriculture
15. The principal objective of the Guinean Government's policy in the field of agriculture is to
rapidly ensure food security for all of the country's populations and to supply foreign markets with
export goods that are competitive from the point of view of quality, quantity and price.
16. To that end, the Guinean Government launched, in 1986, a vast programme for the
development and modernization of agriculture with the active participation of the private sector and
the support of its main bilateral and multilateral development partners.
17. This programme, which is still under way, essentially aims at:
- Improving production methods in rural areas to increase the output of farmers;
- introducing systems for financing agriculture in rural areas;
- improving agricultural sector output by creating and managing pilot plantations and
nursery production, with subsidization of the purchase of selected seedlings by
farmers;
- restoring and extending the rural dirt road network;- promoting the use of agricultural inputs.
2. Energy
18. The policy of the Guinean Government in this sector targets at comprehensive coverage of
energy demand throughout the country in the best possible conditions.
19. To that end, the following measures are planned:
- Rehabilitation of existing production, transport and distribution facilities and creation
of new units, while at the same time ensuring a regular supply of spare parts;PRESS/TPRB/104
Page 14
MORE- updating of studies under the Production and Transport Master Plan with a view to
revising the national investment programme in that sector;
- improvement of technical, commercial and financial management in the sector;- improvement of the current institutional framework by establishing the necessary
legal and financial conditions for introducing the different types of private energyproduction;
- development of a rural electrification programme;- continuation of the campaign to promote new and renewable forms of energy.
3. Industry
20. The Government's objectives in this sector focus mainly on reviving its programme for the
industrialization of the country, beginning with support for private operators.
21. This policy will involve:
- Helping certain industrial units that have already been privatized or that are currently
being privatized to revive their activities;
- streamlining of the formalities for setting up new enterprises;- creating serviced industrial zones in the main regions of the country;
- creating a framework for establishing relations between Guinean and foreign
operators.
4. Mining
22. The mining sector has long been the driving force of the Guinean economy, accounting alone
for more than one third of the country's GDP.  In view of its potential and the prospects for exploiting
that potential, this sector will be called upon to play an increasingly important role in the country's
economy.
23. The Government's objectives in this area include:
- The strengthening and restructuring of existing enterprises such as the Compagnie des
Bauxites de Guinée (CBG), the Société Friguia, the Société des Bauxites de Kindia
(SBK), the Société aurifaire de Guinée (SAG), and the Projet diamants
kimberlitiques;
- the adoption of a more favourable institutional, legal and financial framework
(Mining Code, creation of a single window for mining investors, the Centre de
Promotions et de Développment Minier (CPDM);
- the medium- and long-term implementation of major mining projects such as:
- an integrated aluminium factory project with a capacity of 200,000 T/year;
- the Dian Dian alumina and bauxite complex with a capacity of
1,000,000 T/year;PRESS/TPRB/104
Page 15
MORE- the Nimba Simandou project and the Transguinean Railway with a deep-
water port at Conakry, capacity 50,000,000 T/year.
24. It must be pointed out that the above-mentioned projects require considerable capital
mobilization involving several hundreds of millions of US dollars, and that this, in itself, is one of the
major objectives of the Guinean Government in its effort to achieve sustainable development for thecountry.
5. Fishing and livestock production
25. Here, the objective is to maximize the economic and social benefits for the country of
exploiting its fisheries and pastures.  This takes account of the need to safeguard the balance of the
ecosystem and the sustainability of the exploitation of resources while seeking to increase the
contribution of fishing and livestock to food security, job creation, improving the income of fishermen
and breeders and boosting the State revenue.
26. Accordingly, the Government is seeking to:
- Introduce an efficient system for the planning and rational management of resources
by strengthening the monitoring and protection of fishing zones and by conducting
research;
- step up its combat against epizootics and develop a livestock food supply base;
- strengthen basic infrastructures and improve the value added of fishing and livestock
products;
- support the export of fishing and livestock products and the investments made in that
respect, and improve the value added of fishing products;
- encourage the emergence of economic operators in the areas of small-scale fishing,
industrial fishing, aquaculture and breeding;
- decentralize and improve the monitoring and surveillance of Guinean territorial
waters.
6. Services
(a) Banks
27. The reorganization of the Guinean banking system was among the Government's priorities in
launching the major economic reforms in 1986.
28. In the context of these reforms, banking activities were liberalized, the national banks were
closed and the BCRG restructured and restored to its status of bank of issue, responsible for
controlling and monitoring the entire Guinean banking system.
29. Since then, six private commercial banks have been set up and are currently operating in
Guinea.
30. The main objectives of the Government in this area remain:PRESS/TPRB/104
Page 16
MORE- Further consolidation of the country's banking and financial system;
- deployment of the banking system towards th e interior of the country with a view to
introducing more secure means of payment (cheques, transfers, cards, etc.)
throughout the national territory;
- more comprehensive supervision of the banking and financial system, including
mutual and rural credit networks;
- assistance with the introduction of mechanisms to facilitate investment and provide
the necessary financing;
- creation of a financial market as a tool for providing enterprises with long-term
savings.
(b) Transport, communications and telecommunications
31. The Government's objectives in this area ar e to ensure infrastructure maintenance and
rehabilitation, and access to efficient transport, communication and telecommunication networks.
32. The reaction of the private sector to the complete liberalization of activities in these areas has
been very encouraging.  Private road transport throughout the country has developed considerably.
33. The general objectives are the following:
Air transport:
- Rehabilitation of the main airports of the country's interior by the installation of new
airport facilities;
- restructuring of the national airline, Air Guinée, with the privatization of part of its
capital;
- development of the activities of the Conakry International Airport through the
implementation of its master plan aimed at doubling traffic to and from Conakry by
the year 2000.
Maritime, river and land transport:
- Improvement in the organization of road traffic in the city of Conakry (road signs,
marking out of stops, safety);
- development of the road network by restoring the dirt and paved roads and asphalting
the trunk roads;
- construction of bridges on the Fatala and the Niger;
- restructuring and privatization of the Société générale de transport guinéens
(SOGETRAG);
- computerization of the management of the country's vehicle fleet and the system for
the delivery of transport documents (driving licences, registration documents,
transport authorizations, etc.) as well as the management of statistical data on road
accidents;PRESS/TPRB/104
Page 17
MORE- construction of new bus stations at Conakry and in the interior of the country;
- organization of cross-border road transport with a view to subregional integration;- rehabilitation of the first 36 kilometres of the Conakry-Niger railroad with a view to
constructing a dry port in the outskirts of Conakry at mileage point PK 36/38, andrestoring a passenger train on that segment;
- maintenance in working order of the 662 kilometres of railroad between Conakry and
Kankan (second largest town) and extension of that line up to the Nimba and
Simandou mountains (Transguinean Railway) with a view to combining passenger
and freight transport with heavy mineral transport.
Telecommunications:
34. The liberalization of the telecommunications sector in Guinea has brought about significant
progress with the rapid and dynamic take-over by the private sector of activities freed by the State, for
example:
- Setting up of the Société des télécomm unications de Guinée (SOTELGUI) (60 per
cent private and 40 per cent State) and the Office de la poste guinéenne (OPG);
- granting of operating licences for value added services (cellular) to three other private
operators, TELECEL, SPACETEL and WIRELESS.
35. The objectives are:
- The installation of a short-wave radio emission centre for national and international
coverage and a maritime radio station;
- installation (coastal station) of a frequency management centre and an official
network for the administration;
- installation of 500,000 telephone lines by the year 2010;- resumption of postal financial services (savings bank, national and international
payment orders);
- development and improvement of postal services.
(c) Tourism
36. In addition to its considerable potential in the fields of mining, energy and agriculture, Guinea
also has much to offer in the field of tourism.   Nonetheless, tourism remains one of the least
developed activities in Guinea.
37. Thus, the development of tourism is one of the Government's priorities.  Its main objectives in
this area are:
- To lay the foundations for a proper takeoff of the Guinean tourist industry by
developing an integrated tourist package with an improved image of Guinea as aPRESS/TPRB/104
Page 18
MOREdestination, encouraging professionals in the sector to invest in Guinea, training
human resources and developing a tourist code;
- encouraging and facilitating the private-sector development of tourist sites and access
roads throughout the country.
(d) Crafts
38. The Government's promotional activities in this area consist in:
- Encouraging initiatives for the creation of trades chambers;- developing and implementing a handicrafts code;
- implementing a policy aimed at encouraging the creation of craft villages;
- organizing sales exhibitions of Guinean crafts both at home and abroad.
C. G
ENERAL DESCRIPTION OF THE IMPORT AND EXPORT REGIME
39. With the State's withdrawal from all economic activities, trade has been completely
liberalized.  Import and export operations have been facilitated and transferred to the private sector.
1. Imports
40. The import licences required during the State trading period were abandoned in 1986 and
replaced by Descriptive Import Applications (Demandes descriptives d'importations – DDI).
41. DDIs are required for the import of goods with an f.o.b. value of at least US$2,000.  Goods
whose f.o.b. value exceeds US$5,000 are subject in a ddition to preshipment inspection of quantity,
quality and price.
42. Goods whose value is less than US$2,000 ar e not subject to DDIs, but to an Import
Description (Descriptif d'importation – DI) and are not subject to preshipment inspection.
43. As in all other countries, the import into Guinea of products that are hazardous to human
health is prohibited.  The import of strategic goods linked to State security is subject to a special
authorization (firearms, ammunition, explosives, etc.).
(ii) Exports
44. As in the case of imports, export licences, which had been mandatory, have been abandoned
and replaced by Descriptive Export Applications (Demandes descriptives d'exportation – DDE).
Thus, all Guinean goods exports, whatever the destination, have been liberalized since the beginning
of the major reforms in 1986.
D. LEGAL AND REGULATORY TRADE POLICY FRAMEWORK
1. Domestic laws and regulations governing the implementation of trade policy
45. Before 1985, Guinean trade was essentially conducted by the State through state trading
enterprises and through a barter system for imports and exports with its former Eastern European
partners.PRESS/TPRB/104
Page 19
MORE46. In 1986, Guinea's new trade policy based on complete liberalization of trading activities in the
country was defined in a keynote address by the Head of State.
47. The Constitution is the supreme law in Guinea.  Legislative power is vested with the National
Assembly which votes on the laws.  The President of the Republic promulgates and ratifies the laws,
and is also vested with the authority to negotiate and conclude international agreements.  He may
delegate that authority to a minister or to any other member of the Executive.
48. Where there is a need to amend legislation in order to bring it into conformity with the
provisions of an agreement, it is the National Assembly that votes on the law authorizing such an
amendment.
49. In Guinea, as in a number of other countries, trade policy is implemented by several
institutions and executive bodies of the Government.
50. It is the Minister for the Promotion of the Private Sector, Industry and Trade, as the main
person in charge of Guinea's trade policy, who submits, where necessary, bills pertaining to trade.
The laws governing trade are:
- Law on the Control of Goods;
- Law on Free Competition and Pricing Policy;
- Law on Weights and Measures;
- Law on the Code of Economic Activities;
- Law on Tourism.
2. Formulation and review of trade policies
51. The Ministry for the Promotion of the Private Sector, Industry and Trade is in charge of the
planning, formulation, implementation and administ ration of Guinea's trade policy.  Trade laws
drafted by the Ministry (in cooperation with other ministries) are submitted to the Legislative for
consideration and a vote.
52. It is the Ministry for the Promotion of the Private Sector, Industry and Trade that prepares
trade policy measures in consultation with:
- The private sector as represented by its different support and promotion bodies
(Chamber of Commerce, Industry and Crafts of Guinea, Guinean National Council of
Employers, Guinean Traders' Association, Guinean Foreign Investors' Club, National
Union of Guinean Industrialists, etc.);  and
- the other competent institutions:  Ministry of the Economy and Finance (National
Customs Directorate), Ministry  of Planning and Cooperation, Ministry of Agriculture,
Water and Forests.
53. In Guinea, private sector participation in the development of trade policy takes place through
structures created with the State for consultations on various aspects of the national economy
(Advisory Committee on Prices, for example).PRESS/TPRB/104
Page 20
MORE(iii) Bilateral, multilateral regional and preferential trade agreements
54. Having opted for a liberal economy, Guinea has long been seeking to create the necessary
conditions for harmonious integration into the world economy by developing its trade relations and
diversifying its trading partners.
55. The Government's main objective in this respect is to create an environment favourable to the
development of Guinea's participation in international trade while ensuring increased market
opportunities for Guinean products abroad.
56. To that end, Guinea has concluded the following agreements:
- Agreement Establishing the WTO;
- the Lomé Convention between the ACP and the EU;- the ECOWAS Treaty;
- the Mano River Union.
57. Guinea is a signatory to the Fourth Lomé Convention between the European Union and the
ACP countries, under which it exports goods to the Community market free from customs duty and
other charges on a non-reciprocal basis.
58. As an original Member of the WTO, Guinea attaches to its Membership the importance it
deserves.  Guinea hopes that the WTO Agreements will serve as a basis for increasing the share of
developing countries in general and LDAs in particular in world trade, in the framework of a new
rules-based multilateral trading system.
59. The Guinean economy depends largely on its expo rts of mining products.  Guinea sincerely
hopes that the rules deriving from the Uruguay Round Negotiations will benefit its economy and that
the downward trend in the benefits linked to th e Generalized System of Preferences (GSP) will be
reversed.
60. As one of the LDCs and a beneficiary of the GSP, Guinea hopes that all its exports, including
mining products, will continue to benefit from the tariff concessions (duty-free status or considerablyreduced duty) in the developed and developing countries.
61. Guinea is also a founding member of the Economic Community of Western African States
(ECOWAS).  However, this Organization is currently  suffering from an unstable geographical context
in the subregion.  Accordingly, its vocation as an integration body is overshadowed by the concern for
stability and the maintenance of peace in the area.  The same is true for the Mano River Union.  In theface of these realities, Guinea's objective is to ensure that economic priorities urgently resume their
place at the forefront of subregional concerns.  To that end, Guinea has sought to revive the political
will needed to restore the raison d'être  of these two groupings and their vocation as economic
integration bodies.
62. It should also be noted that Guinea has concluded standard bilateral trade agreements with a
certain number of countries.  These agreements provide for most-favoured-nation treatment and do
not grant any particular tariff preferences.  The countries in question are Guinea-Bissau, China,Tunisia, Egypt, Turkey, Côte d'Ivoire, Mali and Ukraine.PRESS/TPRB/104
Page 21
MORE63. In April 1997, Guinea concluded a trade and tariff convention with Morocco providing for
total exemption from tariffs and taxes with equivalent effect for certain Guinean and Moroccanproducts traded between the two countries, taken from Schedules 1 and 2.  The products covered by
this convention are those originating entirely in one of the two countries or having undergone a degree
of processing of 40 per cent or less.
64. Guinea was also among the first countries to accede to the Global System of Trade
Preferences (GSTP) and also signed the Agreement Establishing the Common Fund for Commoditiesas well as the International Coffee Agreement.
(5) I
MPLEMENTATION OF TRADE POLICY
3. Trade policy measures applied by Guinea
(a) Customs duties
65. A few years ago, in order to meet the requirements of a liberal economy, Guinea embarked on
a thorough reorganization of its customs system and its tariffs.
66. The import duties and taxes currently in force are:
- The import customs duty (droit de douane d' entrée - DDE) at a normal rate of 7 per
cent and a reduced rate of 2 per cent;
- the fiscal import duty (droit fiscal d'entrée - DFE) at a rate of 8 per cent (except on
rice, for which there is a flat rate of  GF 58,752 per tonne, and flour and vegetable oilfor which the normal rate is 23 per cent and the reduced rate is 6 per cent);
- the clearance fee (redevance pour traitement de liquidation - RTL) of 2 per cent;- the surcharge for the consumption of certain so-called luxury items, at rates of 20 per
cent, 30 per cent, 40 per cent, 60 per cent and 70 per cent according to the nature of
the product.
67. Apart from the above duties and taxes, Guinea also levies the internal taxes listed below on
certain products.  Some of these taxes are also levied on national production.  They are:
- Value added tax (VAT) at a rate of 18 per cent;
- Special Tax on Petroleum Products (TSPP) of  GF 355 per litre of petrol, GF 245 per
litre of diesel and GF 160 per litre of oil;
- Registration Tax (TE) at a rate of 0.5 per cent (investment code regime);
- Storage Tax (TEN) at a rate of 1 per cent;- Transit Duty (DT) at a rate of 3 per cent;- Additional Centime (CA) for the Chamber of Commerce at a rate of 0.25 per cent;- ECOWAS Community Levy (PC) at a rate of 0.5 per cent.PRESS/TPRB/104
Page 22
68. The documents required for customs transactions are the Tax Statement (BDT) delivered by
the government supervisory body, the SGS, the purchasin g invoice, the bill of lading or airway bill,
the DDI, the certificate of origin and, where applicable, the phytosanitary certificate.
(b) Customs valuation and preshipment inspection
69. The customs valuation procedure currently in force in Guinea is based on the Brussels
Definition of Value i.e. the normal price of the g oods or the price which they would fetch at the time
of registration of the detailed declaration and at the place of introduction into the customs territory.
70. In June 1996, Guinea signed a contract with the Société générale de surveillance (SGS) for
the preshipment inspection of all goods imported in  the framework of the operation known as the
Programme for the Security of Customs Revenue (Programme de sécurisation des recettes douanières
– PSRD).  The SGS controls the quantity, quality and price of the goods and determines the customs
value and tariff heading, monitors the settlement and recovery of duties and taxes, and handles the
documentary and physical follow up of the suspensive arrangements and of customs duty exemptions.
4. Current trade liberalization programme
71. One of the first measures taken by the Government in 1986, the year of the great economic
reforms in Guinea, was to liberalize trade.  All of  the state trading enterprises (131 at the time) were
closed down, import and export licences eliminated, all trading functions transferred to the private
sector, the State banks closed, import and export restrictions removed, and structures for the supportand promotion of the private sector introduced (C hamber of Commerce, Employers' Federation, trades
associations, etc.).  At the same time, steps were taken to rationalize tariffs with a view to facilitating
import and export activities.  The complete computerization of customs services as well as port
services at Conakry and the liberalization of the exchange rate of the Guinean Franc against foreign
currencies also contributed to facilitating trade activities.
72. In order to strengthen its trade liberalization efforts, the Guinean Government promulgated a
law on competition and freedom of prices.  This la w aims to monitor any infringements of free trade
practices, such as agreements, mergers, take-overs, withholding of stocks, monopolies and
oligopolies.
END