WORLD TRADE
ORGANIZATIONWT/COMTD/IF/27
2 April 1998
(98-1327)
Committee on Trade and Development
Integrated Framework for Trade-Related
Technical AssistanceOriginal:  French
TRADE-RELATED TECHNICAL ASSISTANCE NEEDS-ASSESSMENT
PRESENTED BY GUINEA-BISSAU
INTEGRATED RESPONSES BY IMF, ITC, UNCTAD,
UNDP, WORLD BANK AND WTO*
GUINEA-BISSAU
                                                     
*Published pursuant to the provisions of paragraph 5(e) of the Integrated Framework for Trade-Related
Technical Assistance (WT/LDC/HL/1/Rev.1).WT/COMTD/IF/27
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TRADE-RELATED TECHNICAL ASSISTANCE NEEDS-ASSESSMENT
PRESENTED BY GUINEA-BISSAU
A. Trade Policy
Guinea-Bissau achieved independence in 1973, was decolonized in 1974, and for 10 years its
economic and trade policy consisted of a State monopoly which channelled all foreign and domestic
trade through two trading companies, a Central Bank and an insurance company.
This policy resulted in an uncontrollable foreign debt, annual inflation of more than
70 per cent, and a black market in foreign currency and commodities in excess of the official market.
In the light of this catastrophic situation, the Government with the assistance and intervention
of the international community (IMF and World Bank) reformulated its macroeconomic policy in
1986, opting for a free trade and economic policy and thus creating simpler regulations and laws
allowing an embryonic private sector to become established in the economic life of Guinea-Bissau.
It was therefore necessary to abolish some rest rictions on international trade, in particular
imports and exports, such as price-fixing by the State, to reduce the bureaucratization of services.
In this context of economic and trade liberalization, the Government has been creating legal
mechanisms to facilitate access for private sector agents to domestic and foreign markets.  Despite
this positive aspect of the Government's policy, ther e still exist obstacles to the development of trade
which will be tackled by our delegation as the work proceeds and which we would very much likeyou to consider and to make part of the recommendations emerging from this meeting.
Our answers to the points dealt with in the "Check-list" are as follows:
As stated before, several errors have been committed owing to our lack of governmental
experience, which is normal for a country which has just achieved independence through armed
struggle and has no experience of public administration.
We had thus set out to achieve an economy based on import and export trade and large
industrial companies, ignoring the key sector of agriculture, despite the fact that 90 per cent of the
active population is involved in this sector.  At the moment, we think that the country should commit
itself to developing and promoting agricultural products, setting up small processing units with a view
to reducing imports (as a contribution to stabilizing the balance of trade), developing our potential intourism and crafts, which is currently underexploited, and in insurance and banking services.
The objectives of the trade policy can be summarized as market economy consolidation, in
order to maintain the real growth of the economy and private sector development, and adoption of an
investment code to attract external resources.
In relation to paragraph (b), we can state the following:
Exports
Cashew nuts (approximately 40,000 tonnes/year)
Fish
WoodWT/COMTD/IF/27
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Imports
Rice
Fuel
The economic policy measures which must be taken to rectify our balance of trade deficit are
as follows:
- Increasing cashew nut exports;- improving export prices and diversifying markets;
- creating small processing units for cashew nuts and other products, to achieve added
value;
- increasing fish exports;
- improving export prices and diversifying markets;
- improving control and supervision of the fishing zones;
- giving incentives to increase local rice production;- introducing new dietary habits;
- defining an import policy for primary products;  and
- diversifying cereal production.
The Ministry for the Economy and Finances, Secretariat of State for Trade, Industry, Tourism
and Crafts, is the government body in charge of defining, coordinating and implementing trade policyafter consultation with the Chamber of Trade, Industr y and Agriculture (which brings together private
sector economic associations).
In order to eliminate tariff and non-tariff barriers and bureaucracy, the Government has
decided to group together under a single Ministry (the Ministry for the Economy and Finances) all
services related to trade and industry in general and the economy in particular.  It is thus the Ministryfor the Economy and Finances which defines tariff policies and all other policies related directly to
exports and imports.
The private sector has had a very important role in the definition of economic policies.  As
regards trade, the private sector participates actively and directly in the preparation of the economic
policies to be adopted through its organized affiliates, namely the Chamber of Commerce, Industryand Agriculture, the National Association of Farmers, the Women's Association for Economic
Activity, the Association of Small Traders, and national and foreign NGOs.  It is these organizations
which are the spokespersons for any project related to trade at the local level.  As spokespersons for
the entrepreneurial class in Guinea-Bissau, these organizations have the task of liaising between the
enterprises and the Government, between domestic enterprises and foreign enterprises and between
national enterprises and development partners.WT/COMTD/IF/27
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Trade policy is regulated by the following Decree-Laws and/or Decrees:
- Decree-Law No. 22/86 of 13 Augu st 1986 - Market liberalization;
- Decree No. 29/94 of 1 June 1994 - Defines the pricing system for goods and services
transacted on the domestic market;
- Decree No. 30/94 of 1 June 1994 - Regulates the National Register of Traders;
- Decree No. 35/94 of 1 June 1994 - Institutes the opening of fixed, permanent 
commercial units, defined as shops, warehouses and offices;
- Decree relating to competition:  a preliminary plan is under discussion by civil
associations and private sector organizations;
The trade laws in force in Guinea-Bissau do not offer any obstacles to or quantitative
restrictions on imports and exports, except for military equipment and drugs.
The highest duties levied on imports and exports are:
Imports
Light motor vehicles and textiles 51%
Four-star petrol 151%
Wine, beer and cigarettes 47%
Hunting weapons 57%
Luxury motor vehicles 96%Perfumes 65%
Exports
Cashew nuts 14%
All the Decree-Laws referred to above will be submitted during our meeting.
Guinea-Bissau is a Member of the WTO and participated in its creation in Marrakesh.All the provisions resulting from the WTO conference have been complied with by the
Government.
The WTO is not a well-known organization in Gu inea-Bissau either at governmental level or
at the private sector level, because:
1. It is an organization created recently to replace GATT.2. Like GATT, the WTO does not have representation in its Member countries and is
represented by other United Nations bodies which do not always manage to pass on
WTO messages routinely.
3. It is difficult for Guinea-Bissau to participate in international events organized by the
WTO.WT/COMTD/IF/27
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As regards technical assistance, we believe that the first step in this direction would be a visit
by WTO experts to Guinea-Bissau so that together we can carry out an evaluation of real cooperation
and assistance needs in the following fields:
(a) Institutional organization;
(b) training national staff locally and abroad;
(c) refresher course for senior management;(d) creation of an export promotion unit;
(e) infrastructural and logistic support;
(f) creation of a WTO focal point in Guinea-Bissau;  and
(g) access to specialized literature on questions relating to the WTO and to trade in
general.
In this connection, we would also like to emphasize the need for more direct and continuous
relations with the WTO, so that the Ministry for the Economy and Finances, Secretariat of State forTrade, Industry, Tourism and Crafts, is provided promptly with information and the necessary
documentation to be able to participate productively in major decisions taken by the WTO.
Specifically as regards the WTO Agreements, we need technical assistance particularly in the
fields of:
(a) Market access;(b) anti-dumping measures;
(c) competition;
(d) rules of origin;
(e) the Generalized System of Preferences;
(f) legal assistance for the adaptation of industrial property laws to the provisions of the
TRIPS Agreement;
(g) review of legislation governing the Tourism Fund;  and
(i) updating and implementation of the master plan for tourism.
In terms of trade analysis and negotiating capacities, our experience is fairly limited since we
did not participate in either the multilateral or the bilateral negotiations in areas covered by the WTOAgreements, owing to lack of financial means and specialized human resources.
We should like to point out that in the area of competition there is a draft bill in existence
which is currently under discussion by civil society and the private sector organizations before being
submitted to the People's National Assembly.WT/COMTD/IF/27
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As regards the environment, this is a new issue for Guinea-Bissau, since it was first addressed
in 1994, and we are therefore relying on WTO support to provide us with all the relevant information.
B. Obstacles to Trade Expansion
The principal obstacles to the development of trade, particularly the export of products, are:1. Lack of markets and reliable partners for our principal export products;
2. Lack of information on foreign markets, for both exports and imports;3. Lack of infrastructure, namely a road network connecting production areas and
consumption centres;
4. Inadequacy and high costs of telecommunications services;
5. High port dues;
6. Lack of financial resources, since there are currently serious medium- and long-term
finance problems for the private sector, with only two private banks which also have
cash flow problems;
7. There is a great need for the creation of a centre for export promotion and support,
with a view to eliminating the bottlenecks which operators encounter in the following
areas:
- Development partners;
- accessible markets for our products;  and- the communication of adequate statistical and trade information;  and
8. Creation of a focal point for harmonization of Guinea-Bissau with the world trade
sector organizations.
C. Technical Assistance
1. We believe that we should leave suggestions regarding technical assistance to a later date, in
order to allow a rigorous, joint evaluation of the needs of the trade sector and to support it.
2. Our country has the technological capacity and human resources to make use of the new
information technologies, such as CD-ROM and the Internet.  We are, therefore, asking the WTO for
financial support for Internet installation and training.
Promotion of trade and service exchanges
Small- and medium-sized enterprises have considerable difficulties in promoting their
products, largely for the following reasons:
- Lack of credit facilities;
- lack of knowledge of foreign markets and of international trade procedures;  and
- the absence of a trade information centre.WT/COMTD/IF/27
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INTEGRATED RESPONSES
BY IMF, ITC, UNCTAD, UNDP, WORLD BANK AND WTO
GUINEA-BISSAU
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(k) :
Technical assistance requirements with
regard to compliance with the WTO
Agreements
A WTO mission to evaluate the needs in
the following areas:
(a) Institutional organization
(b) Training of trade officials (locally and
abroad)
(c) Senior management refresher course
(d) Creation of an export promotion unit
(e) Infrastructural and logistic support
(f) Creation of a WTO focal point
(g) Access to specialized literature on
questions relating to WTO and trade
in generalWTO With respect to strengthening human
resources, the following will be undertaken
by the WTO:
National seminar on the multilateral
trading system in February/March 1998.
Regional specialized workshops on
specific WTO agreements will be
organized for French-speaking African
Least-Developed countries in 1998 and
1999. These specialized seminars will be
respectively on market access, including
agriculture/textiles, legal and institutionalmatters, and environmental issues.
A three-week trade policy course for
French-speaking Least-Developed
countries (including Guinea-Bissau) willbe held in 1998 and 1999.
An evaluation mission will be sent at the
beginning of 1998.
A more direct and continuous relationship
between the Ministries concerned and the
WTO to allow the Ministries to receive up-to-date information and documentation and
to enhance the possibilities of Guinea-
Bissau participating productively in theWTO.UNDP Through the newly designed project to
support the integration of the country in
the WAMU, UNDP could address part ofthis request.  Additional funding will beneeded.WT/COMTD/IF/27
Page 8
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(l) :
Technical assistance needs with regard to
specific areas of the WTO Agreements
Market access WTO See reply to question A(k).
Anti-dumping practices and other
competition-related issuesWorld Bank The Bank (FIAS) is reviewing a draft
competition law with comments to be
provided during February 1998.
WTO Will assess this request further during its
next mission scheduled for March 1998.
UNCTAD/World Bank/WTOStand ready to coordinate their action to
provide further assistance.
Rules of origin WTO See reply to question A(k).
Generalized System of Preferences (GSP) UNCTAD An advisory mission on the effective use
of the GSP rules and the Lomé
Convention, as well as on preferential rulesof origin can be undertaken.
*
Legal assistance to adopt industrialproperty right lawsUNDP
(WIPO)Through its regional programme on
capacity-building for trade development in
Africa, UNDP will organize, in
conjunction with WIPO, a regionalworkshop on this issue in which
representatives from Guinea-Bissau will be
invited to participate.
WTO Assistance will be extended to Guinea-
Bissau in accordance with the Cooperation
Agreement between WIPO and WTOproviding for WIPO legal-technical
assistance relating to the TRIPS
Agreement.
Review of legislation on the "TourismFund"World Bank To be covered by the Private Sector
Capacity-Building Project as a component
of a review of the legal and regulatoryframework of the tourism sector.
                                                     
* Financing to be requested.WT/COMTD/IF/27
Page 9
Technical assistance needs identified in the
questionnaireOrganization Response
Question A(l) (cont'd):
Updating and implementing the master
plan for tourismWorld Bank A report “Prospects for Tourism
Development: Bijagos Archipelago
Biosphere Reserve”, was issued on
10 July 1997, with IFC support.
Consultations on follow-up are ongoing.WT/COMTD/IF/27
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Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(m):
Assessment of the existing trade analysis
and negotiating capacities
Although no needs were identified in this section, the
activities mentioned below by the agencies have been
identified through consultations with the Government and
respond to needs expressed by the Government during
those consultations.
WTO The three-week trade-policy course (See
A(k)) will reinforce capacity-building.
During such a trade-policy coursenegotiating capacities will be addressed
and training for a better participation in
multilateral trade negotiations will beundertaken.
UNCTAD/UNDP/World BankImprovement of the timeliness and
reliability of the foreign trade data,generated by SYDONIA, is being
undertaken by the World Bank with
technical assistance financed by theEconomic Management Project.
Further assistance is envisaged in a
coordinated fashion by UNCTAD, UNDPand the World Bank in this area.  This
assistance envisages preparing compliance
with the Common External Tariff asagreed among WAEMU countries.
World Bank Review of formal and informal barriers to
trade to be carried out under the PrivateSector Capacity-Building Project.WT/COMTD/IF/27
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Technical assistance needs identified in the
questionnaireOrganization Response
Question A(m) (cont'd): ITC/
UNCTAD/UNDPIn the period 1997-2000, Guinea-Bissau
will benefit from the regional Capacity-
Building Programme for Trade and
Development aimed at strengthening the
capacity of institutions in charge of
formulating trade policies, includingnational and subregional sectoral studies
(agriculture, textiles, clothing and natural
resources) to enhance government capacityfor analysis and formulation.
Under the same programme, training of
trainers will strengthen enabling
institutions designed to support
government officials and privateentrepreneurs in their trade negotiationsand efforts to penetrate foreign markets.WT/COMTD/IF/27
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Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(g):
Technical assistance needs with respect to
supply constraints
Although no needs were identified in this section, the
activities mentioned below by the agencies have been
identified through consultations with the Government and
respond to needs expressed by the Government during
those consultations.
ITC See reply to question B(q).
World Bank The Transport and Urban Infrastructure
Project and the Water and Energy Project
will assist in addressing constraints posedby the inadequate basic infrastructure.
World Bank The Private Sector Capacity-Building
Project will support the Government’s
efforts to create an enabling environment
for private sector development namely by
helping to remove legal and regulatoryobstacles, stepping up public enterprise
reforms, moving towards private provision
of public services, and liberalizingtelecommunication and port services.
In reply to question B(q) :
Technical assistance needs in the area of
trade promotion and support services
Although no needs were identified in this section, the
activities mentioned below by the agencies have been
identified through consultations with the Government and
respond to needs expressed by the Government duringthose consultations.
ITC ITC is at present discussing details for
fielding a programming mission to assistthe Government in finalizing the needs
assessment and to develop a corresponding
operational programme in trade promotion.
ITC will coordinate its activities with other
development partners, in particular theWorld Bank.WT/COMTD/IF/27
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Technical assistance needs identified in the
questionnaireOrganization Response
Question B(q) (cont'd): UNCTAD/
UNDP/World BankSee the reply to question A(m).
World Bank The Private Sector Capacity-Building
Project will support development of
private sector capacity in this field, with
particular emphasis on agribusiness.  Seeunder "ITC" above.WT/COMTD/IF/27
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Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(v) :
Technical assistance needs with respect to
market access
Although no needs were identified in this section, the
activities mentioned below by the agencies have been
identified through consultations with the Government andrespond to needs expressed by the Government duringthose consultations.
ITC See the reply to question B(q).WT/COMTD/IF/27
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Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question C(d) :
Technical assistance needs in the area of
information technology including training
of human resources
Financial support from the WTO to install
the Internet and training in its use.WTO One computer, a printer, a modem and
other accessories will be provided to the
Trade Ministry. This includes a link to the
Internet in 1998.
Training on access and use of Internet
resources and CD-Roms will also beprovided in 1998.
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