WT/TPR/S/87 Trade Policy Review
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II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES
(1) GENERAL LEGAL AND INSTITUTIONAL FRAMEWORK
1. Under the 1972 Constitution, last amended in January 1996, the Republic of Cameroon is a
decentralized and unitary State.1  The President is elected through universal, direct, equal and secret
suffrage for a period of seven years.2  The legislature is a unicameral body composed of the National
Assembly;  following the last constitutional amendment, a Senate was to be established, but it is notyet in place.  The judicial power is exercized by the Supreme Court, the Appeals Court and District
Courts.  Local administration is based on ten provinces, each with a Governor appointed by the
President.  Local administrations are not empower ed to change measures adopted by the Central
Government and do not have competence on foreign trade issues.  The 1996 amendments provided for
the establishment of a Constitutional Council and the creation of Regional Councils to promote the
development of regions.  To date, these institutions have not been established.
2. The Constitution has precedence over all other legal instruments.  Treaties and international
agreements falling within the area of competence of the legislative power shall be submitted to
Parliament for authorization before their ratification.  Duly approved or ratified treaties and
international agreements shall, following their publication and reciprocal implementation, override
national laws and thus require no implementing legislation.
3. The Constitutional Council is to be composed of 11 members (serving a non-renewable nine-
year term) and of former Presidents (serving for life ).  It is to rule on the constitutionality of laws,
international treaties, internal regulation, and jurisdiction conflicts between the States' institutions. Its
decisions, which are not subject to recourse, are to be binding on all public, administrative, military
and judicial authorities, as well as on all natural persons and corporate bodies.  Until the
Constitutional Council is established, the related functions are entrusted to the Supreme Court.
(i) Executive and legislative branches of Government
4. Cameroon's Constitution provides for strong executive authority, which extends to control
over the judicial system.  The President, as the Head of State, has executive responsibility for the
conduct of Cameroon's affairs, the negotiation and ratification of international treaties and
agreements, and the promulgation and enforcement of laws.  Most significant decisions for thecountry are made at the presidential level.  The President appoints the Prime Minister and, on the
recommendation of the latter, the ministers and secretaries of state;  and may terminate their
appointments.  The President also has the power to appoint members of the Supreme Court, the legal
service, and one third of the Senate members.  The President presides over the Council of Ministers,
and the Prime Minister over the Cabinet Council.  Draft laws on trade, as on other matters, aretypically submitted to the legislature by the President, after preparation by the relevant branch of
Government and discussion in the Cabinet.
5. Legislative authority is still effectively vested in the National Assembly, a unicameral body of
180 elected members serving five-year terms. Following the 1996 constitutional reform, a Senate,
composed of 100 members, should have been instituted.  One third of the Senators are to be appointedby the President, while the remainder is to be chosen by indirect elections.  Areas reserved to the
National Assembly, and in which the President needs its approval before negotiating and ratifying
treaties, include: fundamental rights; the property ownership system; the political, administrative, and
                                                     
1 Law N° 96/06 of 18 January 1996 amending the Constitution of 1972.
2 The presidential period was extended in 1996 (from five years), and re-election was limited to one
time.Cameroon WT/TPR/S/87
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judicial organization; the budget; and the education system.  The National Assembly may empower
the President of the Republic to legislate by ordinance under special circumstances.  Laws are passed
by a simple majority unless, at the request of the President, a bill is read a second time, in which case
it requires an absolute majority of the Assembly membership.  The President shall enact laws within
15 days of receiving them from the Assembly, unless a second reading is requested or the matter is
referred to the Constitutional Council. Matters not reserved to the legislature come under thejurisdiction of the authority empowered to issue statutory rules and orders.
6. The main ministries involved in trade or trade-related policy formulation and implementation
have not changed greatly since the previous Tr ade Policy Review of Cameroon in February 1995.
They are the Ministry of Industrial and Commercial Development and the Ministry of Economy and
Finance.  Other ministries concerned with trade-related matters include those of Agriculture;Livestock, Fisheries and Animal Industries; Tr ansport; Posts and Telecommunications, Foreign
Affairs; Tourism; and Mines, Water and Energy.  The Ministry of Economy and Finance has final
responsibility for setting tariff policy and duty levels.  The Customs Directorate, which is under this
Ministry, is responsible for the collection of imports duties as well as the implementation of customs
procedures and controls.  A number of other sector-specific statutory authorities and governmentagencies provide trade-related functions, such as the recently established Government Procurement
Regulatory Agency  (Agence de Régulation des Marchés Publics), the Industrial Development
Directorate (for standards), and the National Office for Industrial Free Zones.
3  Monetary policy is
formulated at the regional level by the Banque des Etats de l'Afrique Centrale (BEAC).
(ii) Advisory and consultative bodies
7. Cameroon has no independent statutory body to review or advise the Government on
economic and trade policies, including the provision of government assistance to specific sectors.  Inthe formulation of trade policy, the Government receives advice from the Economic and Social
Council, the Constitutional Council and the Cham ber of Commerce, Industry and Mines.  The
Economic and Social Council was established under the Constitution to advise the Government on
social and economic issues, including those related to foreign trade.  The Council comprises
85 members appointed by the President, who has sole responsibility for determining its workprogramme.
8. The Chamber of Commerce, Industry and Mines serves as liaison between the private
business community and public authorities in many economic areas, including international trade. The
Chamber undertakes export promotion activities, and supports the creation of companies;  it is
financed by fiscal charges collected by the Government.
9. Other bodies with which the Government may consult on trade-related matters include the
National Cocoa and Coffee Board, the Union of Cameroon Industrialists, the Cocoa and Coffee
Exporters Council, the Grouping of Cameroon Industrialists, and the National Federation of Small and
Medium-size Enterprises.  In recent years, numerous frameworks for consultation have been
established to stimulate the partnership between the Government and civil society and fosterconcerted economic management.
4
                                                     
3 The Government Procurement Regulatory Agency was established under Decree No. 2001/048 of
23 February 2001.
4 Among the groups established are the Committee to Facilitate External Trade Transactions (Comité
de facilitation des opérations du commerce extérieur), formed in 1997, and the Interministerial and PrivateSector Committee (Comité inter-ministériel élargi au sect eur privé), which brings together government officials,
economic operators, labour unions, and trade organizations.WT/TPR/S/87 Trade Policy Review
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(iii) Main trade laws and regulations
10. Most trade policy legislation in Cameroon is introduced by Presidential decrees or ordinances,
decrees of the Prime Minister, orders of the minister responsible for the matter in question, or by
circulars of the Administration.  Laws take precedence over other legal instruments, followed (in this
order) by ordinances, decrees, orders, and circulars. Two laws and one implementing decree are at the
centre of Cameroon's trade-related legislation.5  All laws and regulations are published in the
Government Gazette  in French and English.
11. International agreements ratified by Cameroon, including the WTO, take precedence over
internal laws, but not over the Constitution.  Trade-related international agreements enter into effect
when they are ratified;  no implementing legislation is required.
12. Cameroon's trade policy legislation results mainly from related legislation of the Central
African Customs and Economic Union (UDEAC , currently under the CEMAC framework, see
below).  These include, for example, the UDEAC Customs Code6, the Common External Tariff, and
the generalized preferential tariff (which was abolished on 31 December 1997).  Provisions
concerning the customs regime in Cameroon take into consideration the treaties, conventions or
arrangements between the Member States of CEMAC and third countries, and are implemented
through acts of CEMAC's management committee.7  Cameroon's tax legislation is contained in the
General Code on Taxes and Law No. 98/009 of 1 July 1998, establishing the VAT.  Government
procurement rules are contained in Decree No. 95 /101 of 9 June 1995, and Decree No. 2000/155 of
30 June 2000; anti-dumping and countervailing legislation is contained in Law 98/012 of
14 July 1998.  Legislation governing investment in Cameroon is contained in the Investment Code of
1990, as amended in 1994, the General Code on Taxes, various financial laws, and sectoral codes
(such as the Petroleum Code and a Mining Code, which was to be adopted in April 2001)(Table AII.1).  The CEMAC Community Investment Ch arter is to be ratified before the end of 2001.
Competition legislation was enacted in July 1998 (Law No. 98/13 of 14 July 1998).
13. Trade legislation related to the services sector is embodied at two levels:  supra-national
regulation, resulting from regional integration; and national regulation, covering issues not subject to
common rules.  For example, Cameroon's banking sector is subject to the Convention establishing theCentral African Banking Commission (Commission Ba ncaire de l'Afrique Centrale, COBAC), which
oversees the national implementation of common banking rules. Transportation and
telecommunication services are also under the CEMAC's common regulation.  Insurance is governed
by regulations resulting from the Insurance Code  of the Inter-African Conference on Insurance
Markets (Conférence Interafricaine  des Marchés d'Assurance, CIMA).
14. Cameroon's international obligations concerning intellectual property rights are governed by
the Bangui Agreement (signed on 2 March 1977, and revised in February 1999), which is
administered by the African Intellectual Property Organization (Organisation Africaine de la Propriété
Intellectuelle, OAPI) (Chapter III(4)(ii)).  The revised Bangui Agreement was ratified by Cameroon in
                                                     
5 Law N° 89/011 of 28 July 1989 on the establishment of a market economy; Law N° 90/031 of
10 August 1990 governing trade activities;  and th e latter's implementing Decree N° 93/720/PM of
22 November 1993.  Other trade-related legislation includes ordinances on imports and exports (GATT, 1995).
6 Act No. 2/97-UDEAC-603-CD-60, modified in January 1998 by Act No. 2/98-UDEAC-603-CD-60
concerning customs valuation in the Union.
7 The acts and decisions of the Council of Heads of State and the management committee of the
UDEAC are operative ipso facto  in the Member States a day after the arrival of the Union's Official Journal  in
the States' capitals (Article 7 of the UDEAC Customs Code).Cameroon WT/TPR/S/87
Page 15
July 2000 (Presidential Decree No. 2000/216).  Renewed efforts have been observed in bringing this
agreement into line with the different elements of the WTO TRIPS Agreement.
15. The business legal system in Cameroon is related to the activities of the Organization for
Business Harmonization in Africa (Organisation pour l'Harmonisation en Afrique du Droit des
Affaire s, OHADA). The OHADA Member States adopted a series of legislative texts in April 1997,
establishing the foundation of a harmonized business law common to the West African Economic andMonetary Union (UEMOA) and the Central African Economic and Monetary Community (CEMAC).
The OHADA Treaty is aimed at implementing a harmonized legal framework in the area of business
laws (Chapter III(4)(i)), to restore the legal and judi cial security of economic activities, and thus re-
establish investors' confidence and facilitate trade between Member States. In addition, the Treaty
aims at: putting at the disposal of each State common rules that are simple and adapted to theeconomic situation; promoting arbitration as a speedy and discreet instrument for settling commercial
disputes; improving the training of judges and auxiliary officers of justice; and encouraging the
setting up of an African Economic Community.  The main means of achieving the objectives laid
down in the Treaty consist in the elaboration of legislative texts termed "Uniform Acts" directly
applicable and mandatory in the Member States.
16. The Government is making efforts to increase the transparency of trade-related legislation.
The 1994 General Trade Schedule, providing guidelines on Cameroon's main trade policy
instruments, was replaced in 1998 by a Trader's Guide ( Guide du Commerçant ).  This document is
aimed at providing information to the general public on current procedures and requirements, as well
as all relevant trade rules and legislation governing the distribution, import, and export of goods.
(iv) Transparency and governance
17. Corruption is reported to be a serious problem in Cameroon.  While the existing legal
framework for trade and investment appears to be  clear, there have been complaints regarding
inefficient implementation of laws.  Moreover, a dysfunctional judicial system severely hampers the
development of Cameroon's economy and society. The Government launched several public
campaigns in 1998 to combat corruption and promote good governance.  An anti-corruption
observatory has been set up under the Prime Minister's Office and is now operational.
8  Corruption at
Customs reportedly diminished after February 1996, when a private inspection company (SGS) was
given an exclusive contract to verify and assess customs duties.  Trade and economic liberalization
has also helped to address corruption concerns;  in general, liberalization reforms have served to
eliminate the rigidities of economic management, reduce the power of government bodies by
discontinuing various prior authorizations and licences, and decrease transaction costs.
18. Senior officials, including the Prime Minister, have publicly pledged that the Government
would step up its anti-corruption efforts in 200 0/01.  For example, it was acknowledged by the
Government that much remained to be done in order to:  (i) improve the management of public
affairs;  (ii) intensify anti-corruption efforts and achieve greater transparency in the management of
public affairs;  and (iii) establish a nation truly governed by the rule of law that guarantees easy accessto justice for all citizens and a safe business environment.
9
19. In addition to efforts to enhance public expenditure management and the privatization of
public enterprises, the Government has prepared a comprehensive strategy to improve governance and
                                                     
8 The Government has opened a direct dialogue with Transparency International, a non-governmental
organization widely recognized in the field of prevention and elimination of corruption.
9 Efforts are also being made under the framework of the IMF's Poverty Alleviation and Growth
Facility Programme.WT/TPR/S/87 Trade Policy Review
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reduce corruption based on the National Governance Programme, which was developed with
assistance from the UNDP.  The programme, approv ed by the President in June 2000, has a number of
strategic objectives aimed primarily at:  supporting growth and sustainable development;  alleviating
poverty and social exclusion;  upgrading the capacities of the principal stakeholders; promoting
State/private sector/civil society partnership;  strengthening the rule of law in order to protect human
rights and institute judicial reform;  promoting a true culture of accountability in the management ofpublic affairs;  and increasing the transparency of government operations and making every effort to
stem corruption by punishing improper behaviour in accordance with existing laws and regulations.
10
20. To achieve these objectives the programme is to be implemented gradually through a series of
action plans based on studies and targeted sector programmes.  The Government intends to launch
several initiatives to significantly improve governance in the short term.  Specific measures have beentargeted in various areas in order to introduce a new system for managing public affairs.  Emphasis is
to be placed on reforms in the following areas:  improvement of the expenditure system; improved
management of the social sectors; comprehensive reform of the public sector procurement system;
reforms in the area of justice (to strengthen the rule of law and increase the legal security of
investments);  improved citizen information on public affairs;  intensification of anti-corruptionefforts;  and identification and implementation of grassroots pilot projects at the level of local
communities.
21. It appears that citizens do not have easy access to information on public affairs, which
hampers the transparency of public management.  The Government is, however, committed to taking
appropriate measures to make available to users and the public the outcomes of studies, surveys and
audits, and the resultant strategies to achieve greater transparency.  Such documents are to be
disseminated via all modern means of communication.
(2) T
RADE POLICY OBJECTIVES
(i) General trade policy objectives
22. Cameroon's general trade policy objectives have not changed significantly since its last Trade
Policy Review in February 1995.  The Government has continued to undertake measures aimed at
further liberalizing its trade policy regime, fosterin g the development of the private sector to become
the engine of economic growth, improving nationa l competitiveness, and promoting investment. To
achieve these objectives, Cameroon has begun implementing an important programme of privatization
of state-owned enterprises (Chapter III(2)(ix) ).  The Government enacted a competition law in
July 1998, to ensure fair competition in the domestic market.  With a view to securing and promoting
foreign and domestic investment, the Government established the Investment Code in 1990, and hasfurther reduced external tariffs through the implementation of the CEMAC arrangements, simplified
foreign trade procedures, and created a regionally harmonized business law.  For example, to simplify
trade procedures a Single Window for Foreign Trad e Operations (Guichet Unique des Opérations du
Commerce Extérieur) became operational on 25 August 2000.
23. The Government intends to initiate a programme of second-generation reforms focusing
mainly on poverty reduction and the promotion of good governance, while maintaining a sound
macroeconomic framework conducive to strong and sustainable growth.  To achieve strong and
sustainable growth, the Government's objectives ar e to:  (i) promote good governance, transparency,
and accountability in order to create an environment conducive to private investment;  (ii) accelerate
trade liberalization and deepen subregional and regional integration; and (iii) promote exports and job
creation.
                                                     
10 Republic of Cameroon (2000).Cameroon WT/TPR/S/87
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24. Government policy is also aimed at enhancing economic integration in the region.  To this
end, Cameroon participates in regional initiatives, including the Central African Economic and
Monetary Community (CEMAC), and the Economic Community of Central African States
(ECCAS/CEEAC).11
(ii) Sectoral trade policy objectives
25. The Government's sectoral approach is mainly aimed at promoting export development, in
particular the diversification of exports in terms of products and markets.  Export markets for cash
crops continue to be the main target of government promotion assistance.
26. Policy objectives in agriculture focus on:  (i) increased agricultural production and income, to
ensure food security, by strengthening technical support services provided to rural farmers,
professionalization of agricultural instruction, improved access to agricultural inputs, organization ofproduction networks, and revival of some sectors (such as coffee, cocoa, palm oil, cotton, and rice);
(ii) improvement of the agricultural incentive system through reform of taxation, management of land
resources, infrastructure, and communications;  and (iii) modernization of the institutional framework
in the sector.
27. In the area of livestock farming, fisheries, and animal industries, government policies are
aimed at:  (i) increasing animal production and breeders' income;  (ii) promoting private sector
participation;  (iii) improving concerted management of rural areas in a sustainable manner;  and (iv)
strengthening technical capabilities, as well as organizing producers and professionals in livestock
farming and fisheries.  The focus for forestry is primarily on:  (i) implementation of the Yaoundé
Declaration on the sustainable conservation and management of tropical forests;  (ii) monitoring of
forest management plans and supervision of forest development operations;  (iii) preservation and
stability of forest ecosystems;  and (iv) establishment of an industrialization policy focusing on highvalue added (Chapter IV(2)(ii)).
28. Under Cameroon's Poverty Reduction Strategy, the Government intends to support private
initiatives in the most promising areas, such as foodstuffs, the processing of agri-foodstuffs,
small-scale livestock farming, and off-season crops.  Small and medium-sized enterprises are to be
encouraged to position themselves in market segm ents with strong value added, such as industrial
processing of natural resources.
29. To achieve strong and sustainable GDP growth, the Government supports the development of
the non-oil sector, especially exports.  The Government is elaborating a new export promotion policy.
It plans to pave the way for a rapid expansion of the agri-industrial sector following the privatization
of large public entities.  Export promotion is to be fostered through increased competitiveness,regional integration, and diversification of production (agriculture, forestry, manufacturing, and
aluminium) and markets.  In the industrial sector, the envisaged doubling of production capacity for
aluminium may spur a substantial increase in activity; thus, investment in the sector will also be
promoted.
(3) T
RADE AGREEMENTS AND ARRANGEMENTS
(i) World Trade Organization
30. Cameroon is a founding Member of the WTO and grants at least MFN treatment to all its
trading partners. The Marrakesh Agreement establishing the WTO was ratified through
                                                     
11 WTO document WT/REG/W/41, 11 October 2000.WT/TPR/S/87 Trade Policy Review
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Decree No. 95/194 of 26 September 1995.  In accordance with current legislation, the Agreement
overrides national laws, and no implementing texts were required.  WTO rules and obligations can be
invoked in relevant matters before national courts;  however, no such cases have arisen so far.
Cameroon holds observer status to the Agreement on Trade in Civil Aircraft and the Agreement on
Government Procurement (which was to be officially approved in mid 2001).  Cameroon has
established a National Technical Committee to follow up the WTO Agreements.  The Committee is incharge of putting in place a permanent follow-up system to the WTO Agreements; evaluating the
impact of WTO Agreements on the national economy; identifying implementation problems; and
proposing to the Government ways to define a national position on trade matters.
31.  Cameroon's tariff binding commitments in the WTO cover around 15% of total tariff lines.
All agricultural products are bound at a ceiling rate of 80% (and "other duties and charges" at 230%);binding commitments for non-agricultural pr oducts are minimal (Chapter III(2)(iii)).
12  Cameroon's
Schedule of commitments also contains non-tariff concessions.13  Under the GATS, Cameroon made
specific commitments covering some sub sectors of business services and tourism, and trade-related
services.  It has listed MFN exemptions concerning maritime transport (Chapter IV(5)(iv)).
Cameroon did not participate in the WTO negotiations on basic telecommunications, nor on financialservices.
32. As a developing country, Cameroon benefited from transition periods to implement a number
of commitments under various WTO Agreements.  With respect to the Agreement on Customs
Valuation, Cameroon requested a waiver from its obligations until 1 July 2001.  Under the
Agreement's provisions for special and differential treatment, Cameroon notified further exemptions
on calculation methods for customs valuation (Chapter III(2)(ii)).  By virtue of its membership in
UDEAC, the latter's new instruments on customs valuation (based on transaction value) have to beapplied in Cameroon;  according to the authorities, this will be implemented on 1 July 2001.
14
Cameroon also notified its decision to delay for a period of two years the application of provisions onautomatic import licensing of the Agreement on Import Licensing Procedures (Chapter III(2)(v)).
15
33. Most of Cameroon's annual notification requirements under the WTO Agreements are yet to
be fulfilled.  As of April 2001, few notifications had been received (concerning the implementation ofArticle VII of the GATT 1994, dealing with customs valuation, and the Agreement on Subsidies and
Countervailing Measures).
16
34. Cameroon has been involved in only one case under the WTO dispute settlement mechanism,
and then only as a third party to the dispute on the European Communities' regime for the importation,
sale, and distribution of bananas from ACP countries.17
35. The authorities have expressed concerns about the implementation of WTO Agreements.
Many of the problems experienced by Cameroon in the context of implementation of the different
                                                     
12 Tariff bindings on non-agricultural products cover only three items:  the tariff on raw jute is bound at
a ceiling rate of 50% ("other duties and charges" at 80%), and that on single and multiple yarn of jute at aceiling rate of 60% ("other duties and charges" at 150%).
13 These are explained in GATT (1995).
14 Acts 2/98, 3/98, and 4/98 of 21 January 1998 amending Articles 132 and 140 of the Customs Code of
UDEAC and adopting regulations on customs valuation.  This legislation was notified to the WTO by the
Republic of Gabon (WTO document G/VAL/N/1/GAB/1).
15 WTO document WT/LET/41 of 20 November 1995.
16 WTO documents G/VAL/W/80 of 11 January 2001, WT/LET/41 of 20 November 1995, and
G/SCM/N/3/CMR and 16/CMR of 29 November 1996.
17 WTO documents WT/DS27/18, 31 August 1998, and WT/DS27/29, 1 October 1998.Cameroon WT/TPR/S/87
Page 19
Agreements appear to stem from a lack of information and training.  In particular, the Government
acknowledged being inadequately informed a bout WTO issues and lacking the resources to
implement many of the Agreements;  the authoritie s have requested the WTO Secretariat to provide
training and technical assistance in areas such as SPS (including risk analysis, transparency, and
mutual recognition).18  In this context, Cameroon expressed the view that developing countries should
be able, on the basis of the precautionary principle, to take protective measures with respect to theimport of foodstuffs declared elsewhere in the world to be a presumed risk to human, animal and plant
health, without first being obliged to conduct a risk analysis.  These measures would apply until the
exporting country produced formal evidence that the risk had been entirely eliminated.
19
36. Cameroon believes that it is imperative to addr ess the following issues in future multilateral
trade negotiations:  extension of the transition period for the implementation of Agreements and otherlegal instruments in force, with special reference to the Agreement on Trade-Related Aspects of
Intellectual Property Rights and the Agreement on Customs Valuation; increasing and budgeting
funds earmarked for technical assistance to developing countries; implementing the Marrakesh
Decision on the Possible Negative Effects of the Reform Programme on Net Food-importing Least-
Developed and Developing Countries; greater consistency and synergy between international tradeand financial policies, so that developing countries do not have to face cross-conditionality with
significant economic ramifications; and greater transparency in the working methods of the WTO in
order to guarantee the right to information and the effective participation of all Members in the
organization's activities.
20
(ii) Regional agreements
The Central African Economic and Monetary Community (CEMAC)
37. The Treaty establishing the Communauté Économique et Monétaire de l'Afrique Centrale
(CEMAC) was signed on 16 March 1994 by the re presentatives of Cameroon, the Central African
Republic, Congo, Chad, Equatorial Guinea, and Gabon.21  It has, so far, been ratified by Cameroon,
Chad, and Equatorial Guinea.  CEMAC is open to the participation of any other African country.
CEMAC started operations on 1 January 1998.
38. The Treaty represents an important further step for the Members of the Union Douanière et
Économique de l'Afrique Centrale (UDEAC) towards the goal of an integrated economy under the
joint framework of monetary and economic union.22  The Heads of State of CEMAC countries
announced the "end of UDEAC and the birth of CEMAC" on 5 February 1998.23  UDEAC's
objectives were the establishment of a common foreign trade policy, and the free movement of
merchandise within the Union;  these objectives were pursued through a Common External Tariff
                                                     
18 Under the framework of the Three-Year Plan (2001-03) for the WTO Programme for Technical
Cooperation, Cameroon requested assistance for the establishment of a WTO Reference Center, the holding ofseminars on WTO Agreements, and the setting up of a training center.  Its request also covers the study of the
impact of WTO Agreements on the economy of Cameroon, and the adaptation of national legislation and
regulations to international standards and quality control (WTO document WT/COMTD/W/79,24 October 2000).
19 WTO document G/SPS/GEN/192, 5 July 2000.
20 WTO document WT/MIN(99)/ST/88, 2 December 1999.
21 The Treaty was notified to the WTO in document WT/COMTD/24, 29 September 2000.
22 UDEAC was created by the 1964 Brazzaville Treaty signed by Cameroon, Gabon, the Central
African Republic, Congo, Chad, and Equatorial Guinea.  The aim of the Union was the creation of an integrated
market and the coordination of Member States' development programmes. A more detailed treatment ofUDEAC is given in GATT (1995).
23 Decision No. 6/98-UDEAC-CEMAC-CE-33 of 5 February 1997.WT/TPR/S/87 Trade Policy Review
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(CET) for trade outside the Union, a Generalized Pref erential tariff (GPT) for trade inside the Union
(which was gradually liberalized and achieved full duty-free treatment in January 1998), and an
agreement on internal taxation.  UDEAC Secretariat, based in Bangui (Central African Republic), has
become CEMAC Secretariat.
39. CEMAC is based on the Central African Economic Union (Union Économique de l'Afrique
Centrale, UEAC), and the Central African Monetary  Union (Union Monétaire de l'Afrique Centrale,
UMAC).  It also provides for the establishment of a Community Parliament, and a bicameral
Community Court of Justice.  Each institution is endowed with its own convention, ratified between
July and September 1996.  The Parliament, charged with upholding the democratic principles of
CEMAC (its convention is to be adopted by 2003), is to have legislative powers by way of Directives.
The Judicial Chamber of the Court of Justice is responsible for the interpretation and application ofthe community law, and the Court of Auditors controls and oversees the finances of the Union.
40. The main objectives of the Economic Union (UEAC) are:  to promote the convergence of
economic performance and policies;  to foster competitiveness and the harmonization of the
regulatory framework;  to create an integrated market through the free movement of goods, services,
capital, and persons;  and to achieve the coordination of national sectoral policies (agriculture,livestock, fishing, industry, commerce, tourism, transport, telecommunications, energy, environment,
research, and education).  The UEAC thus inherits from UDEAC all matters relating to trade,
including jurisdiction of other measures affecting trade, such as mutual recognition of technical
regulations and conformity assessment procedures, and competition policy.
41. These objectives are to be achieved in three steps:  (i) until 2002 Members will prepare the
ground for the free movement of goods, services, capital, and persons;  (ii) from 2002 until 2007,
Members will implement the measures resulting from the first stage;  and (iii) starting in 2008,Members will coordinate their sectoral policies.
42. UMAC establishes a monetary union between the Member States.  Its guiding principle is that
of price stability without prejudice to other economic priorities.  It thus plays a central role in defining
the convergence of the budgetary, monetary, financial, and banking policies of the Member States.
The Bank of Central African States (Banque des États de l'Afrique Centrale, BEAC) is at the heart ofthe monetary union;  the BEAC is in charge of ensuring exchange rate stability, it has the exclusive
right to issue currency in the Member States, serves as a lender of last resort, monitors the supply of
credit, and plays a regulatory role in monetary affairs in the Union.
24  The financial services sector is
subject to common regulation and is under the supervision of the Banking Commission of Central
Africa (Commission Bancaire de l'Afrique Centrale, COBAC).
43. Recent developments in CEMAC show the progress made towards economic and monetary
union.  As regards the free movement of goods, efforts are under way for the harmonization of VAT
and excise duties.  On the free movement of persons, Members have agreed to grant national
treatment to students from partner countries, as well as to recognize diplomas for accountants and
financial advisors.  In the area of free movement of capital, an Investment Charter was adopted in1999, and is to be ratified before the end of 2001.  As regards the free circulation of services, efforts
are underway to further integrate the telecommunications and transport (road and air) services sectors
of Member States.  On another front, Member States are enhancing the coordination of
macroeconomic polices underpinning the monetary union.
                                                     
24 A more detailed description of BEAC is provided in GATT (1995).Cameroon WT/TPR/S/87
Page 21
(iii) Other trade agreements or arrangements
(a) The ACP-EC Partnership Agreement (Cotonou Agreement)
44. Cameroon is a party to the ACP-EC Partnership Agreement (successor to the Lomé
Convention) between the European Union and 71 coun tries in Africa, the Caribbean and the Pacific
signed in Cotonou (Benin) on 23 June 2000. Focusing on poverty reduction as its principal objective,
to be achieved through political dialogue, development aid and closer economic and tradecooperation, this Agreement grants Cameroon non-reciprocal duty-free access to the EU market for
industrial products and for agricultural commodities not covered by the EU's Common Agricultural
Policy.  For other agricultural products, the ACP countries receive more favourable treatment than
that accorded by the EU to MFN suppliers.
25  The Cotonou Agreement also provides for technical
cooperation and a European Development Fund of around € 13.5 billion covering the Agreement'sfirst five years, to help ACP members create a balanced macroeconomic context, expand the private
sector, and improve both the quality and coverage of social services.
45. The ACP-EC Partnership Agreement provides a comprehensive framework for trade
cooperation and aid development.  The EU and the ACP States have agreed on a process to establish
new trading arrangements that will pursue trade liberalization between the parties and formulateprovisions in trade-related matters. The system of trade preferences, which the EU had previously
granted ACP countries will gradually be replaced by a series of new economic partnership agreements
based on progressive and reciprocal removal of trade barriers.
26  The objectives of economic and trade
cooperation are to promote a smooth and gradual integration of ACP economies into the world
economy; to enhance production, supply, and trading capacities; to create new trade dynamics and
foster investment; and to ensure full conformity with WTO provisions.27  Cameroon has not yet
ratified the Agreement;  the Cameroonian authorities have indicated that the Agreement would beratified in the next Parliamentary sessions.
46. The Agreement also foresees cooperation in trade-related areas such as: trade in services;
competition policy; protection of intellectual property rights; standardization and certification;
sanitary and phytosanitary measures; trade and environment; trade and labour standards; and
consumer policy and protection of consumer health.
47. Cameroon, together with the other Parties to the Agreement, has requested a waiver from the
provisions of paragraph 1 of Article I of the Ge neral Agreement (GATT 1994) to the extent necessary
to permit the European Union to provide preferenti al treatment for products originating in Cameroon,
as required by the relevant provisions of the EC-ACP Partnership Agreement.
28
                                                     
25 Lomé Convention Protocols on rum and bananas were suspended, while those on sugar, beef and
veal were maintained.  Cameroon was a beneficiary of the banana protocol.  Current preferences for Cameroon's
exports of bananas result from Article 1 of Annex V of the Partnership Agreement within the framework of thenew EU common market organization for bananas.
26 According to the authorities, Cameroon has greatly benefited from trade preferences under the Lomé
Convention, in particular to promote export diversification.
27 WTO document G/C/W/187.  The full text of the new ACP-EC Partnership Agreement was
communicated to WTO Members in document G/C/W/187/Add.3, 14 April 2000.
28 WTO document G/C/W/187, 2 March 2000.  WTO Members have not yet taken a decisions
regarding the waiver request.WT/TPR/S/87 Trade Policy Review
Page 22
(b) Other agreements or arrangements
48. Cameroon has concluded a number of trade-related agreements generally concerning the
method of payment, treatment of goods, and dispute settlement.29 Only the agreement with Senegal
provides for tariff preferences (Chapter III(2)(iii)(d) ).  According to the auth orities, this agreement is
currently being re-negotiated.
49. Cameroon is eligible for trade benefits under the Generalized System of Preferences (GSP)
schemes of industrialized countries.  No information was available on the extent of GSP use by
Cameroonian exporters.  Cameroon is also a sign atory to the Agreement on the Global System of
Trade Preferences (GSTP) among developing countries.30
(4) FOREIGN INVESTMENT REGIME
50. The Government's policy is to attract and promote foreign investment with a view to
stimulating the country's economic growth and development.  Cameroon has taken various initiatives
to attract foreign investors, including the simplification of administrative procedures, price
liberalization, implementation of competition legislation, judicial reform, privatization, and the
National Governance Programme.  Cameroon's investment policy appears to contain all the basic
elements necessary to provide an open liberal investment climate.  However, while Cameroon'sinvestment and business laws are transparent, it appears that their implementation could be
improved.
31  Under the current judicial system, local and foreign investors have found it complicated
and costly to enforce contract rights, protect property rights, obtain a fair and expeditious hearing, or
to defend themselves against frivolous lawsuits.  However, the recently implemented OHADA Treaty
will contribute to improving the judicial system for business.
51. FDI flow data, disaggregated by country, are not available, and there are no statistics on
Cameroon's direct investment abroad.  Accord ing to IMF data, FDI was around CFAF 53 billion
(US$90 million) in fiscal year 1996/97, about 1% of GDP.32  It appears that France is overwhelmingly
the most important foreign investor in terms of total capital in domestic enterprises and percent of the
total stock of foreign investment.  Fixed capital formation in the public sector was oriented towards
maintenance of the transport network, the port of  Douala, and the hospital infrastructure, and the
establishment of rural water management projects and education facilities.  In the private sector(excluding oil production), the bulk of the fixed capital formation was directed towards the agriculture
sector, wood processing, some commercial and indust rial activities, as well as the improvement of the
hotel infrastructure.
(i) Regulatory framework
52. Foreign and domestic private investment in Cameroon is still regulated by the Investment
Code of 1990, as amended in 1994.
33  The Code simplified investment procedures, established
financial incentives in exchange for minimal eligibility/performance requirements, and provided
investors guarantees against sovereign risk as well as a number of fiscal incentives.  Special
                                                     
29 The agreements were described in detail in GATT 1995.
30 Under this system, Cameroon has an agreement with Romania not to raise customs duties on certain
products (GATT, 1995).
31 It is reported that Cameroon's legal system is prone to favouritism and corruption, and that tax
authorities can hinder investment by creating obstructions (USTR, 2000).
32 This figure has probably increased in recent years due to the privatization programme.
33 Ordinances N° 90/007 of 8 November 1990 and N° 94/003 of 24 January 1994.  Special sectoral
codes, such as the Petroleum and Mining Codes, are to govern investment in the sectors.Cameroon WT/TPR/S/87
Page 23
encouragement is given to export activities, job creation, and adding value to natural resources,
through the provision of 14 basic guarantees to investors.34 The Code's main principles, applicable to
all forms of investment, include: the equal treatment of foreign and national investors; a "bill of
rights" elaborating ownership, the free transfer of capital and income, compensation in the event of
expropriation, the free movement of investor s within Cameroon, and the protection from non-
commercial risks;  and the promotion of processe d exports through exemptions from certain taxes
(exit, transport, and insurance).   General benefits of the Investment Code are available to all new and
existing enterprises that process goods for export or use inputs from the local or regional (CEMAC)
markets.
53. In addition to these general benefits, the Investment Code provides for special regimes
granting other incentives, albeit under more specific requirements (Table AII.2).  Firms may qualifyfor one of five special investment regimes: basic regime; small and medium-size enterprise regime;
strategic enterprise regime;  reinvestment regime; and free-zone regime.  The Code sets out in detail
the specific criteria a firm must meet to qualify for each regime as well as the benefits accorded
thereunder.
35  For example, special clauses apply to enterprises in the free zones and industrial free
points (Chapter III(3)(vi)):  firms under this regime enjoy a wide variety of incentives, provided thattheir production is predominantly (at least 80%) destined to export markets, such as exemption from
all customs duties and from a variety of taxes, a liberalized labour code, and  other benefits (e.g.
promotional energy prices and preferential port charges).  Under the small and medium-size enterprise
regime, at least 35% Cameroonian equity ownership is required.
54. An Investment Code Management Unit (ICMU), within the Ministry for Industrial and
Commercial Development (MINDIC), serves as a " one-stop-shop" for the provision of public services
to investors.
36  Currently the Unit is responsible for authorizations to carry out industrial activities,
import and warehousing documents, visas for expatriate personnel, waivers provided by law,  and
access to public services required to carry out the investment programme. Efforts to further streamline
the process and to transform the ICMU into a virtual investment promotion agency are now under
way.
55. Foreign investment is not screened, and foreign equity ownership is subject to limitation only
in the small and medium-size enterprise regime (Table AII.2). Programmes financed jointly by
international financial institutions and the Government are open to unrestricted competition.37
Cameroon's Investment Code provides for dispute resolution.  At the time of incorporation orapplication for investment benefits, a firm may opt for one of the various procedures to settle future
conflicts.
38
56. FDI in Cameroon (including those made by companies in Cameroon that are directly or
indirectly under foreign control and those made by branches or subsidiaries of foreign companies) is
subject to prior declaration to the Ministry of Economy and Finance, unless it takes the form of a
capital increase resulting from re-investment of undistributed profits.  The Ministry has a period of
                                                     
34 See GATT (1995), Chapter III for details on the investment regime.
35 Benefits vary in duration from three to twelve years depending on the regime and on whether the
investment is classified "start-up" or "operational".
36 See GATT (1995), Chapter III, for details on the Cellule de Gestion du Code des Investissements
(CGCI).
37Cameroon currently grants public-sector monopolies for petroleum, energy, water,
telecommunications, aluminum, and cotton.  All monopolies, except that for aluminum, were scheduled to beprivatized before the end of 2000.
38 Some foreign investors have noted that it is difficult to obtain enforcement of their legal rights,
including contract and property claims, through the Cameroonian legal system.WT/TPR/S/87 Trade Policy Review
Page 24
two months from receipt of the declaration during  which it may request postponement.  Cameroonian
direct investments abroad (including those made through foreign companies that are directly or
indirectly controlled by persons in Cameroon and those made by branches or subsidiaries abroad of
companies in Cameroon) are subject to prior approval by the Ministry of Economy and Finance,
unless they take the form of a capital increase resulting from the re-investment of undistributed
profits, or do not exceed 20% of the market value of the company being purchased.
57. Harmonization efforts within CEMAC have recently given thrust to a new initiative on an
integrated framework for investment within th e region. As a member of the CEMAC, Cameroon
signed the Community's Investment Charter in December 1999 and must implement its provisions
within five years.39 The Charter is aimed at promoting better conditions for economic development
and diversification by requiring member countries to fully apply the fiscal and customs reformestablished under CEMAC, and to create a favorable judicial environment based on the OHADA
Treaty and its institutions.  According to the author ities, the Community's Investment Charter is to be
ratified before the end of 2001.
58. Member States are committed through the Charter to ensuring the smooth functioning of the
economic system by enhancing their infrastructures and by the similar application of rules and, inparticular, the principle of national treatment.  The Charter also encourages the States' interaction and
partnership with the private sector by simplifying administrative procedures as well as by the
dissemination of information to investors. In addition, the Charter recognizes the importance of a
favourable business environment concomitant with an independent private sector, thus encouraging
the implementation of competition and transparency rules, patent protection, standardization of
products to international norms, the further development of the educational system, and other
measures leading to increased productivity.
(ii) International investment agreements
59. Cameroon accepts binding international arbitration of investment disputes between foreign
investors and the State.  It is a member of the International Centre for the Settlement of Investment
Disputes (ICSID), and is a signatory to the Convention on the Recognition and Enforcement of
Foreign Arbitral Awards.  In May 1997, the Groupement Inter-Patronal du Cameroun (GICAM), anassociation of 140 enterprises and 15 professional associations representing 70% of the formal sector
business activity in the country, voted to constitute its own Arbitration Centre to which business cases
can be submitted.
60. Bilateral investment treaties have been signed by Cameroon with Germany (1962),
Switzerland (1963), the Netherlands (1965), th e Belgium-Luxembourg Economic Union (1980),
Romania (1980), the United Kingdom (1982), th e United States (1986), China (1997), and
Egypt (2000).
                                                     
39 Charte Communautaire de l'Investissement, Regulation N°17/99/CEMAC-020-CM-03, of
17 December 1999.