WORLD TRADE
ORGANIZATIONWT/COMTD/IF/13
11 February 1998
(98-0501)
Committee on Trade and Development
Integrated Framework for Trade-RelatedTechnical AssistanceOriginal:  French
TRADE-RELATED TECHNICAL ASSISTANCE NEEDS ASSESSMENT
SUBMITTED BY ANGOLA
Integrated Responses by the World Bank, ITC,
UNCTAD, IMF, WTO AND UNDP
ANGOLA
A. Trade Policy
(a) What are the sectors that you believe have unexploited or underexploited export
potential?
Angola's exports are now almost exclusively petroleum and a certain quantity of diamonds,
despite the considerable and varied export potential that was still being exploited 20 years ago.
Political and military problems, inappropriate economic policies and bad administrative
management in recent years have led to a decline in production of most of the products traditionallyexported.  Before independence, Angola exported a wide variety of products such as coffee, sisal,
cotton, fresh fish, fishmeal, maize, bananas, sugar, oilseeds, together with petroleum, diamonds, iron,
etc., as well as transport services, principally rail transport, because of its geographical position in
relation to neighbouring countries and its infrastructure, which has now been damaged.
The main potentially important sectors that are unexploited or underexploited are the
following:  agriculture, stock farming (cattle), fo restry (woodlands), fishing and fishery products, light
industry, food industry, heavy industry, mining - iron ore, marble, cement - other building materials,
and the services sector (hotels, tourism and transport).
(b) Could you please define your country's pers pective of the reasons for any changes in the
structure and direction of exports and imports?
The perspective outlined by Angola implies that, following the restoration of peace,
application of the macroeconomic stabilization measures and the institutional economic reformcurrently under way, a favourable climate will be created for the implementation of policies aimed at
the following:
1. Expansion and diversification of exports in sectors and products whose potential has
traditionally been recognized.  The aim is to lessen the marked dependence on petroleum and, to a
certain extent, diamonds, to develop natural resources whose exploitation offers a comparativeadvantage, and to increase foreign currency earnings and employment.
2. The substitution of imports by competitive domestic products according to an appropriate
timetable, especially food products, which before independence were produced in large enough
quantities to make Angola virtually self-sufficient, and some processed products, is in most cases only
a matter of rehabilitation;  imports that are indispensable in order to provide the population withWT/COMTD/IF/13
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essential goods will have to continue;  a law recently adopted establishes a special customs regime to
protect domestic production sectors.
3. A gradual change in the direction of import and export policy is mainly envisaged in the
following areas:
(a) Regional integration, principally the Southern Africa Development Community
(SADC) and the Common Market for Eastern and Southern Africa (COMESA);
(b) the definition of international policy and implementation at the domestic level of a
market economy and support for production (to increase supply and create surpluses
for export), in a context of greater liberalization of foreign trade, as well as contacts
with new partners, diversification of products and markets and greater opportunities
to attract foreign investment.
(c) What have been the objectives of trade policy  in the most recent period, compared to,
say, two decades ago?
The overall objectives of trade policy are at present to develop and diversify exports and
substitute imports when this is justified for reasons of comparative advantage, possibly with State
protection during the revitalization and rehabilitation stage, but within the perspective of a non-
protectionist policy in the medium term.
After Angola became independent in 1975 and up until around six years ago, Angola had a
centrally-planned economy with price controls, a nd the Government allocated foreign currency
mainly to public enterprises on the basis of a foreign exchange budget.  The instability caused by the
political and military situation, the difficulty of attracting direct investment, the foreign technology
and technical assistance associated with inappropriate economic and financial policies (monetary,
financial, foreign exchange, incomes and prices, external debt, etc.) made it difficult to redeployproduction and exports on a competitive basis, with a few exceptions.  Petroleum and diamonds were
the main exceptions and their foreign currency ea rnings provided the necessary resources for an
import policy aimed at supplying the population and assisting a largely inefficient industrial sector.
There was virtually no export promotion and import substitution policy.  During this period, Angola
had preferential trade relations with some Eastern European and other countries and found it difficultto obtain access to certain large markets in the West.
The most recent trade policy objectives have been set out in the Government's economic and
social policies programme for 1997.  This is a minimum one-year programme for an economy in
transition, but the Government believes that, as a result of the stabilization of the political, social,
military, economic and financial situation, by the end of the year it will be able to establish more solidbases for a development plan lasting several years, which should be launched in 1998 along the lines
already laid down in National Asse mbly Resolution No. 17 of May 1997.
Within this latest framework, the overall trade policy objectives are gradual development,
diversification of exports and substitution of imports when this is justified by comparative advantages,
together with an increase in supply, possibly protected during the initial or rehabilitation stage but still
within the framework of a liberalizing polic y (non-protectionist in the medium term).
The following sectors are deemed to be strategic for the expansion and diversification of
exports and import substitution:  agriculture (for reasons of food security and maintaining or resettling
people in rural areas), fisheries and processing industries.WT/COMTD/IF/13
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Revival of production in these sectors will take place within the framework of a programme
to privatize public sector enterprises and decrease government investment in this sector, together with
liberalization measures and other incentives to economic activity by businesses (for example, price
liberalization and credit facilities, elimination of bureaucracy, simplification of administrative
procedures, less government interference in the management of businesses), subsidies (fuel subsidies
for fisheries), and support for its modernization and technological development.
Mention should also be made of regional obje ctives, since Angola is a member of SADC,
COMESA and other organizations and this encourages trade liberalization with its partners.
(d) What are the Ministries in charge of trade policy matters, including formulation,
implementation, enforcement and monitoring?  How is coordination made?  What are the
respective roles of the relevant Ministries (give particular attention to tariff policies and other
policies directly affecting exports and imports of goods and services)?
The Ministries in charge of trade policy matters are the Ministry of Planning (coordinator),
Trade, Transport, Finance and Petroleum, and the National Bank of Angola.
The Ministry of Trade plays a leading role in formulating trade policy and monitoring it
through authorizations, undertaking activities and foreign transactions and overseeing the
implementation of international trade decisions and agreements.  Other Ministries and authorities have
limited responsibilities, for example, the Ministry of Agriculture and Rural Development andFisheries, and the State Secretariat for Coffee for products in their respective sectors.
The Ministry of Finance is responsible for tax and customs policy that affects the foreign and
domestic activities of businesses.  The National Directorate of Customs under the Ministry is at
present replacing the 1950 Brussels provisions by the Harmonized Commodity Description and
Coding System (HS), which has already been approved by the Government.
The Ministry of Finance is also responsible for formulating and monitoring budgetary and
financial policy (including insurance and reinsurance) and prices.
A foreign exchange budget is drawn up each year under the coordination of the Ministry of
Planning, with the participation of the Ministry of Finance and Petroleum (petroleum is the major
source of export earnings, taxes and customs duties in the State's overall budget), as well as theNational Bank of Angola, which is responsible for managing Angola's foreign exchange reserves.
The economic commissions in the National Assembly (which adopts legislation) and the
Council of Ministers (which issues decrees) ar e responsible for coordinating policy formulation.
A foreign exchange budget for the financial year 1997 was approved by the Council of
Ministers, fixing the priorities and establishing a programme for the administrative allocation offoreign currency.  The reforms being implemented, however, which include the adoption of a policy
to reduce drastically State intervention and replace it with market mechanisms for the allocation of
resources and the liberalization of business activities and prices, have made this foreign exchange
budget virtually unworkable as a way of allocating scarce foreign currency resources.  The regular
public sale of foreign currency to commercial banks by the Central Bank in the course of "fixing"
sessions, and only giving import authorizations to businesses which have obtained foreign exchange
facilities from banks in advance, has increasingly diminished the importance of the foreign exchangebudget.WT/COMTD/IF/13
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(e) How are the private sector and academic in stitutions associated with the formulation
and conduct of trade policy?
The private sector is still reaffirming and strengthening its role in Angola's economic
development and only participates to a minor degree.  Economic associations have nevertheless on
several occasions requested the Government to adopt a more open position so as to allow businesses
to play a greater role in formulating economic policies.  The creation of a National Trade Council istherefore proposed to act as an advisory body of the Ministry of Trade and, in addition to government
institutions, the private sector will be represented by business associations.
Academic institutions are still in the early stages and consequently their role is virtually
negligible.
(f) What are the institutions in your country th at can play a role in implementation of a
trade-related project at the local level?   State their respective roles.
In addition to the local authorities, a number of institutions in Angola, both public and
private, can play a role in implementing a trade-re lated project at the local level, in particular:
- The Foreign Investment Institute, associated with the Ministry of Finance, examines
proposals for foreign investment to create enterprises;
- the National Coffee Institute implements policies to expand the production and export
of coffee, of which Angola was once one of the leading African exporters;
- the Agronomic Development Institute, which proposes strategies and helps to
implement projects in this sector;
- the Forestry Development Institute, which carries out policies to develop, exploit and
market forestry resources;
- the National Industrial Development Institute;- the Chamber of Commerce and Industry and private or socio-professional economic
associations which defend the interests of the private companies or entities they
represent, some of which participate in the Government's advisory bodies;
- the National Bank of Angola and commercial banks have a direct impact on
development of the trade sector through their policies on granting credit and sellingforeign currency, interest and exchange rates;
- various funds administered by the State subsidize the interest costs of enterprises, for
example, the Small and Medium Enterprises Support Fund (INAPEM), the National
Enterprises Support Fund (FAEN), the Fisheries Development Support Fund
(FADEPA), etc.WT/COMTD/IF/13
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(g) What are the main laws and regulations de aling with trade policy - on exports and
imports?  Please provide a short description of each.
Ministry of Trade
- Decree 12/89 of 29 April establishing the obligation to obtain a prior licence for
external, re-export and import operations.
- Decree 5/97 of 7 February laying down the basic rules for authorization, operation
and positioning of importers in Angola (which repeals Decree 1/92).
- Order 49/96 of 9 May prohibiting the import of meat of English origin.
- Decree 13/96 of 1 June prohibiting imports necessitating capital in foreign currency.
- Decree 16/96 of 24 July authorizing the import of intermediate and capital goods
necessitating capital for use in the production sector.
- Decree 72/96 of 5 July providing that all imports of goods in Luanda province subject
to the fixed price regime require an authorization from the GEPE of the Ministry ofTrade.
- Order 111/96 of 6 September providing that all goods for shipment must undergo
inspection before loading in the country of origin or shipping.
Ministry of Industry
- Order 14/96 of 9 May abolishing the exploitation and export of copper and
aluminium wire.
Ministry of Finance
- Decree 17/94 of 24 August exempting essential goods for public consumption and
raw materials for industry from customs duties.
- Customs regulations.
Ministry of Fisheries
- Law 20/92 of 14 August, Fisheries Law, Chapter IV, on the quality of exports of
fisheries products.
- Decree 24/96 of 30 August setting standards for the preparation and distribution of
salt for human consumption.
- Ministerial Decree 78/93 of 28 July on the export of fisheries products and salt by
non-producing companies.
- Executive Decree 2/93 of 11 August on the export of fisheries products and salt by
producing enterprises.WT/COMTD/IF/13
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(h) What are the main instruments of trade policy - on exports and imports?  Please
elaborate (e.g. on import restrictions, the ques tions might be:  on what products are there any
import bans;  on what products are there quantitative import restrictions;  licensing
requirements, etc.;  what is the highest tariff ra te currently in use;  are there any excise taxes,
other "domestic" taxes that are applied differenti ally to imported goods, or to goods of a type
that are principally imported?).
- The main instruments of foreign trade policy concern the obligation to obtain a
commercial licence, controlled access to foreign currency, and the customs
regulations;  in the case of domestic trade, the regulations concern consumer and
production taxes;
- the highest rate for exports is 80 per cent;
- service taxes, consumer taxes, taxes for the supply of services and stamp duties are
levied on imports in addition to customs duties;
- import bans are in effect for the goods included in Table III of the customs
regulations on imports;
- in the fisheries sector, only enterprises involved in fishing may export and foreign
currency is earned for their own sector;
- all customs duties are  ad valorem ;
- the recent legislation by the Government discourages quantitative import restrictions
and defines the license priorities to be fixed solely for domestic supply needs
(Decree 5/97 of 7 February);
- the need for direct State intervention in foreign trade in order to meet the unsatisfied
needs of the population for consumer goods is the main justification for the creationof the Angolan import and export company (SOCIANG), Decree 177/97 of
27 March;
- domestic taxes, for example consumer tax, apply to both locally produced and
imported goods.
(i) In case you are a WTO Member or are in the process of acceding, how is your country
preparing itself to comply  with the WTO Agreements?
Angola formally became a Member of the WTO in November 1996.  It had previously
negotiated its schedules of concessions and specific commitments in the context of a policy ofopenness, integration into the global economy and the creation of conditions to attract foreign
investment as a requirement for sustainable development.  As regards customs regulations at thedomestic level, the Harmonized System has been approved and is being implemented.
In order to allow Angola to benefit from increased access to international markets by
promoting its exports and overcoming its vulnerability as an importer of foodstuffs, it is at present
implementing a series of policy measures to regulate the situation (monetary, budgetary, foreignexchange, income, price and other complementary measures to combat inflation), structural policy
measures (to revive production, mobilize foreign investment, restructure and privatize enterprises),
and institutional reorganization policies, which apply to the Government and the financial mediation
system.
The effective implementation of these policies will help to liberalize the economy and bring
Angola's regulations into line with the WTO Agreements.WT/COMTD/IF/13
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It is proposed to set up a National Technical Secretariat for the WTO, coordinated by the
Ministry of Trade but administratively independent, which will include a multisectoral advisory
committee.  This will require financial and technical assistance and the Secretariat will be responsible
for monitoring and coordinating all action related to the implementation of the WTO Agreements.  It
could also become responsible for training activities.
As a least-developed country, Angola is considering a series of exemptions from certain
clauses in the Agreements, which will be submitted to the WTO.
(j) What is the state of familiarity with the WTO framework:
- Among government and government-related agencies?
- in the private sector?
Among government and government-related agencies and the private sector, familiarity with
the WTO is very limited.  This situation is due not only to the fact that Angola was neither involved
nor took part in the Uruguay Round multilateral trade negotiations and only became a contractingparty to the GATT 1947 in April 1974 and a Member of the WTO in November 1996, but also to the
need to inform and educate public and private entities in the business world.  It is hoped that the
creation of the National Technical Secretariat for the WTO will provide an effective response to this
need.
Certain factors in the economic crisis have been a disincentive to production and export,
especially because of the role of petroleum in the Angolan economy and also the fact that the private
sector is only now starting to make itself felt in the economy.  There is no awareness of the threats,
challenges and opportunities arising from the Agreements, which will affect Angola's economy when
it has emerged from the stabilization stage and starts to perceive the growth and diversification of its
economy in the context of fuller integration in the global economy, which will only be possiblethrough the effective implementation of the WTO Agreements.
The gradual stabilization and liberalization of the economy nevertheless open up new
prospects for Angola's integration in the global economy and lead to effective implementation of
international agreements as a means of developing the country.
(k) What are your technical assistance require ments with regard to your compliance with
the WTO Agreements?
Support is needed in several areas, notably in professional training so as to revise Angola's
legislation in line with the Agreements, international trade and amendment of domestic legislation
(market access, sanitary and phytosanitary measures, quality control, etc.), the creation of
documentation and information centres and databases, market surveys (for example for fisheries andagricultural and livestock products), technical, financial and institutional support (services, equipment
and technicians for training and disseminating the Agreements).
(l) In which specific areas of the WTO Agreements do you have technical assistance needs
(e.g. market access, agriculture, rules (anti-dumpin g, subsidies, import licensing, rules of origin,
safeguards, etc.), TBT and SPS, services, TRIPS)?
In all the areas cited in the question, but particularly in the following:
- Market access for the export of fisheries, agricultural and industrial products;WT/COMTD/IF/13
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- drafting of anti-dumping laws providing for restrictive measures;
- rules of origin;
- revision of legislation on quality control, sanitary and phytosanitary measures, rules
of origin, import licensing, trade in services;
- support for the national school of commerce and the trade information centre.
(m) What is your assessment of your existing trade analysis and negotiating capacities, both
multilateral and bilateral, in areas already co vered by the WTO Agreements and other trade-
related areas, e.g. competition policy and trade and environment?
Although we have experience in trade analysis and negotiation both at the multilateral and
bilateral levels, our knowledge of the Agreements is very limited because of the lack of training and
limited participation in WTO activities (particularly in the various Committees and other specialized
institutions).  Furthermore, because Angola did not participate in the Uruguay Round negotiations
which led to the WTO Agreements, it has additional difficulties in interpreting and implementing theAgreements.
B. Obstacles to Trade Expansion
Obstacles to trade encompassing problems in export markets, infrastructure, human
capacities, institutional bottlenecks, trade financing problems and gaps in trade information can
inhibit a least-developed country from taking full advantage of trading opportunities.
Supply constraints, including institutional bottlenecks
(a) What are the main bottlenecks inhibiting the development of sustained export  capacity
of goods and services (e.g. customs facilitation, freight charges, quality management,
elimination of cumbersome legal and administrative procedures, paucity of human skills, access
at international prices to imported inputs, or inadequate telecommunication, port and transportfacilities, etc.)?
- Landlocked countries may face additional problems, such as having to ship
using costly or unreliable transport and ports systems.  In case this applies to
your country, please indicate such problems.  What kind of technical assistance
would help you work out these problems?
1. Constraints due to inadequate supplies
One particular feature of Angola is that it has endured many years of war.  The development
of adequate capacity for the export of goods and services during the present critical period is
hampered by a fundamental difficulty:  the lack of domestic supply.
A successful programme to revive production is an essential precondition for expanding and
diversifying exports.  The success of the current programme depends on achieving political and
military stability in Angola and implementing economic stabilization measures within the framework
of monetary, budgetary, foreign exchange and othe r complementary policies to combat inflation and
control incomes and prices, as envisaged in the Government's economic policy programme for 1997.
The success of the programme to revive production also depends on rehabilitating the
economic infrastructure damaged by war or now obsolete (particularly communication routes andWT/COMTD/IF/13
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water and electricity supplies) and the adoption of economic, financial, institutional and
administrative measures also contained in the Government's programmes and policies for 1997.
Lastly, the revival of production and diversification of exports depends on appropriate
implementation of the policy for the restructuring and privatization of the public sector and the ability
to mobilize foreign investment.
2. Constraints due to bottlenecks in the supply of products for export
Serious weaknesses in all the areas mentioned by way of example in the question can be
perceived fairly clearly and unless improvements are made immediately major bottlenecks will
certainly occur when there is a revival of exports.  The following are the main bottlenecks:
Ports, transport and communications
- Need to simplify port formalities by setting up a national "facilitation" committee,
training some of those involved in the transport sector, and strengthening information
and communications networks;
- modernization of ports, their infrastructure  and equipment, and repair of railways and
roads;
- at the legislative level, ratification of various international conventions of the
Customs Cooperation Council, for example FAL 1965 and FAL 1973, the United
Nations Convention on the Law of the Sea (1982), United Nations Convention onInternational Multimodal Transport of Goods (1980), Convention on the Carriage of
Goods by Sea (1978) and the United Nations Convention on the Liability of
Operators of Transport Terminals in International Trade (1991);
- application of international standards and recommended practices concerning the
"facilitation" of trade and transport.
Trade information
- Deficiency of the specialized trade information structures, making it necessary to
provide technical and financial assistance to restructure the trade information centres
of the Ministry of Trade and the Chamber of Commerce and Industry;
- low capacity of the telecommunications network.Cumbersome administrative procedures
- The existence of prior import licensing procedures in order to obtain the import
registration certificate.WT/COMTD/IF/13
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(b) Are there any institutional bottlenecks, wh ich may impede the efficient conduct of your
country's trade policies?  Provide details.  For example, what are the problems perceived by the
different actors, e.g. exporters, producers, service providers (banks, insurance companies,
quality control, transporters, etc.), profession al associations and ministries?  Are problems
mainly perceived in the area of:
(i) Human resources
There is a small entrepreneurial sector, with few qualifications and little experience;  the
country's general instability, largely as a result of the war and bad economic and financial
management, has meant a drastic reduction in purchasing power, particularly in the government
sector, with direct consequences on the number of jobs, overall labour productivity and the training of
managers.
(ii) Institutional management
State enterprises still play an important role and the public sector is top-heavy.  The
privatization of State enterprises is encountering difficulties of a short term and institutional nature.
Like government services, a large number of producers, exporters and suppliers of services are State
entities with inefficient management and they need to be reorganized (notably in human resource
terms), and their structures and working methods must be simplified and rationalized.  There are still
excessively bureaucratic networks that are not very transparent, both as regards internal relationswithin the bodies and among government services, the business sector and consumers.
(iii) Financial and material resources
Almost all the businesses in Angola are SMEs or even micro-enterprises and there is a large
informal sector.  Many SMEs, and some large companies, utilize out-of-date methods and lack capital
due to the state of the domestic capital market.  Banking intermediaries - which could be of help - arethemselves underdeveloped and the conditions offered to foreign investment are not very attractive,
for economic, financial, legal and institutional reasons.  In addition, although there are government
funds to support enterprises, their resources are limited and not only do some public enterprises have
large deficits due to bad management, but there are also delays in payment by the State of large debts
to companies.  The current economic and financial stabilization measures are improving this situation.
(iv) Communication
(c) What are the main bottlenecks to export diversification?
The major impediments to export diversification have already been mentioned in the reply to
question B(a) and are due to the difficulties of reviving production under competitive conditions in the
agricultural and industrial fisheries sectors and transport to ports for shipping, as well as theinefficiency of the various actors in organizing effective ways of managing exportable surpluses, as
we indicated in section B(b).
(d) If investment in the production of goods a nd services is inadequate, what are the main
reasons?  Please elaborate them (e.g. structural co nstraints, difficulties in attracting foreign
investment, limited enterprise development, fi nancing, lack of appropriate technology, etc.).
- Investment in the production of goods and services is inadequate for the following
reasons:  creation of a favourable environment, following the successful peaceprocess and the stabilization programme under way, already mentioned in the repliesWT/COMTD/IF/13
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to this questionnaire, which can promote savings (eroded by inflation), banking
intermediation, and, in general, development of the capital market;
- structural obstacles:  restructuring of State institutions and completion of the
privatization process for state enterprises;
- rehabilitation of the basic economic infrastructure (transport and communications,
water and electricity networks);
- inadequate restructuring of the financial sector:  establishment of banks, other
financing institutions and government funds in support of enterprises;
- slow progress in revising legislation on urban and rural property, industrial zones and
property rights;
- difficulty of attracting foreign investment, which could provide considerable support
for the transfer of technology and know-how, and other resources which enterprises
need for their development.
(e) Is there a national policy to encourage export-related investment opportunities?  Please
elaborate.  What arrangements are in place fo r reviewing, drafting and negotiating contractual
arrangements with foreign investors?
According to the Government policy programme for 1997, revival of production must be
based on development of agriculture, stock-rearing and fisheries and integration with industry, mainlythrough small and medium enterprises.  The types of industry to be developed should be those that are
labour intensive, use easily assimilated technologies, have modest capital needs, and produce
consumer goods which can replace imports and are based on local natural resources, giving preference
to non-mineral industries.
Import substitution is a necessary tool because:- It uses existing production capacity to better advantage (installations, equipment,
labour force);
- it allows the labour force to be retrained thereby preventing the technical level of
workers from deteriorating;
- it lessens dependence on outside sources;- is saves foreign exchange;
- it protects domestic industry, with a positive impact on production upstream and
downstream, without falling prey to exaggerated and permanent protectionism;
- it strengthens small-scale industry and the production of working tools.
A law sets out the procedures for restructuring and privatizing economic activity, which has
lately been centrally administered by the Govern ment.  Law 10/94 of 31 August prescribes the
methods for transforming state enterprises into commercial companies and the terms for sale and
rental of the government property to be used for trade, hotels, industry, agriculture, building and the
professions.  State intervention through an enterpri se restructuring office (CARE) ensures the properWT/COMTD/IF/13
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distribution of private investment opportunities in  the economic sector (recently dominated by the
State), evaluation of the economy and property of enterprises, compliance with the Law, the
preparation of contract terms and consideration of proposals, as well as the negotiation of contracts
and putting them out to tender.  The Law provides that, when property is sold, the public will be given
preference, but the State keeps back part of the capital with a view to future sales in a democratic and
dispersed manner;  shares in private enterprises are sold to the public by commercial banks.
A project to develop the restructuring and privatization process has been submitted by
UNIDO/UNDP, but has not yet obtained financing;  there is also a pilot technical assistance projectunder the programme to strengthen economic management (PREGE), to be financed by the
World Bank.
The foreign investment law provides a suitable framework for encouraging both domestic and
foreign private investment in various economic sectors, including trade.  The Foreign InvestmentInstitute is a government body which monitors proper implementation of this Law and applies and/or
approves foreign investment procedures.
There are also certain special investment programmes, directly supported by the State,
relating to import substitution, support for rural trade and the reorganization of the urban tradenetwork.
There is a need to train managers in trade, customs and investment policy and in the area of
technical assistance for the computerization of regular services such as the customs, ports and airports
(sydonia and eurotrace programmes).
(f) What are the main obstacles to the transfer, development and acquisition of technology?
Is there any national policy/strategy in this area?  Please elaborate.
The acquisition of modern technology implies large financial resources that are not available
in Angola and difficult to attract from outside.  The labour force has few qualifications to master
techniques for the handling and maintenance of high tech equipment.  This has led to the gradual
obsolescence of equipment and technology, which is why certain sectors such as the fisheries sector
have adopted equipment that utilizes an intermediate level of technology easy for Angolan users tolearn.  In certain instances, however, the creation of  joint or combined enterprises has attenuated this
problem.
In general, the main obstacles to the transfer of technology are the following:
- Unsatisfactory foreign investment negotiations which do not oblige the investor to
transfer technology;
- utilization of obsolescent technology due to lack of information;
- the investor's ignorance of the existence of patent protection and industrial
information institutions in Angola;
- absence of a database on technologies in countries with the same characteristics as
Angola, although the WIPC and UNIDO have collaborated in the creation of a patentand industrial promotion technology bank.
(g) What are your technical assistance or oth er assistance needs with respect to supply
constraints?
Technical assistance is needed for the following:WT/COMTD/IF/13
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- Assessment of the agricultural and livestock raising resources capable of being
revived so as to increase and diversify domestic supply and develop exports;
- identification of industries able to use local raw materials and appropriate
technologies;
- development of viable production projects and external arrangements for their
financing;
- development of business management techniques, production incentives, quality
control and export promotion.
Need for financial assistance so as to set up production and transport infrastructures and
obtain the necessary technology.
Trade promotion and trade support services
Trade promotion comprises an integrated set of technical and financial services to enhance the
global competitiveness of enterprises and thus facilitate their entry and increasing participation ininternational trade.
(h) Do your enterprises, especially small and medium enterprises, experience difficulties in
expanding their exports?  What are these problems in the major export sectors?
In general, the efficiency of enterprises both in domestic and foreign markets is diminished by
the distorted functioning of various markets, especially the financial, foreign exchange and labourmarkets, as well as by the weakness of infrastructures and the legal and administrative systems.
The main difficulties in expanding exports are the following:
- The low level of production, which does not even cover domestic needs (Angola is a
large importer of foodstuffs, for example);
- the low level of mechanization and maintenance and the use of obsolescent
technology, which does not permit production that is competitive from the
quality/price aspect;
- the internal financing system is little developed and does not guarantee the granting
of credit facilities, interest rate facilities and credit insurance;
- in important traditional production and export sectors such as fisheries, enterprises do
not adequately master the techniques of international trade and have no information
support services on international markets for goods.
(h) What are the problems for your enterprises in obtaining reliable and up-to-date
information on export/import business opportunities?
The majority of enterprises involved in the export sector are small, newly created or recently
privatized and do not have the financial capacity to equip themselves with communications and
telecommunications media that would allow them to set up an efficient marketing and information
system.
The few bodies that do have trade information centres to support enterprises, such as the
Ministry of Trade and the Angolan Chamber of Commerce and Industry, lack equipment and trained
personnel.WT/COMTD/IF/13
Page 14
It should also be emphasized that the national telecommunications enterprise does not have
sufficient capacity to support this service at the national and international levels.
(j) Can your enterprises offer products of in ternationally acceptable design, quality and
packaging to foreign buyers?  If not, what are the problems?
The majority of enterprises, particularly in the processing industry, encounter problems in
obtaining proper equipment and in manufacturing or purchasing packaging that could ensure productshave internationally acceptable quality.
The issue of certificates by the quality control services of the Ministry of Trade is a guarantee
of a minimum level of quality, particularly for the sensitive products of the fisheries sector.  The
Ministry has its own laboratory to carry out this task.
Under the direction of the Ministry of Industry, a quality standardization institute was set up
and has already started to do positive work in identifying, studying and applying solutions to these
problems.  It is expected that in certain important sectors, through small-scale investment in rawmaterials, the purchase of laboratory instruments and up-to-date technology, it will be possible to
overcome the present difficulties.
(k) What problems, other than in terms of trade policy, do you anticipate in developing the
export of services (e.g. computer software, tourism)?
Tourism
- Development of the hotel industry;
- free movement of persons and goods in the whole of Angola as a result of the peace
process.
Financial services
- Development and privatization of the banking system as a complement to the
economic and financial stabilization process under way;
- development of the financial market.
(l) What are the technical/professional problems encountered by trade support institutions
(e.g. trade promotion council, chamber of commerce, exporters' association, etc.)   in your
country in providing their services to export/import enterprises?
Angola has a Chamber of Commerce and Industr y which at the moment has few financial
resources to obtain equipment and develop proper technical training programmes for professionals in
the business sector.  The same problems are faced by private economic associations and, to an even
greater degree, by State institutions involved in the production and export of specific products, for
example, the National Coffee Institute, the National Cereals Institute, the Industrial DevelopmentInstitute (IDIA), etc.  Angola needs an export promotion office within the Ministry of Trade.WT/COMTD/IF/13
Page 15
(m) What problems and deficiencies are experi enced by enterprises in the international
purchasing and inventory management?
At the domestic level, the problems are due to the lack of expertise among workers who have
no basic training or experience.  Some of these enterprises have undergone, or are in the process of
undergoing, privatization and the resulting problems have an effect on their organization and
activities.
At the external level, the most common problem facing enterprises is the difficulty of finding
technical and material supplies, either on the domestic market (lack of supplies and difficulty of
moving persons and goods within Angola), or on the external market (difficulty of obtaining foreign
currency and international financing).
(n) What are the present availability and arrangements for trade finance facilities (e.g.
export credit guarantees, etc.)?  Are there any perceived deficiencies in this area?
Angola's financial system still has certain deficiencies.  Although there is a basic legal
framework for development of the banking sector, supplementary legislation to direct and promote the
establishment of certain specialized institutions is l acking.  In addition, there is as yet no framework
law in the insurance sector and this, in practic e, remains an activity reserved to the State.
Development of the internal financial market and the subsequent introduction of new
financial instruments depends on the effective implementation of the current stabilization programme.
For certain sectors such as the fisheries sector the fact that exports go through the foreign
companies involved in production allows these problems to be avoided.  Such problems do not of
course arise as far as the export of petroleum and diamonds is concerned.
(o) What are the main problems in the way of  improving export/import management skills
of your business enterprises?  Do you have any training programmes in the country?  What are
the deficiencies?
There is a lack of trained personnel familiar with external trade management techniques and
the training programmes are inadequate.  Some institutions such as the Ministry of Trade and the
Angolan Chamber of Commerce and Industry have vocational training centres, but find it difficult to
obtain finance to restore and equip these centres and also have difficulty in finding the technical andfinancial assistance needed to train trainers and improve the content of the curriculum.
(p) Does your trade representation service actively promote your trade?  What are the
weaknesses?
There is little activity by trade missions aboard.  They lack training and professional
experience.  They must improve their methods of selection and their relations with the Ministry ofTrade, and better define the content of their work programmes.
(q) Briefly describe your technical assistance needs in the area of trade promotion and
support services.
- International market surveys and analysis for exports;
- education in standards and techniques of international trade in exports;
- communications, telecommunications, and information centres;WT/COMTD/IF/13
Page 16
- techniques and strategies for marketing exports;
- establishment of training and retraining centres for workers and regular information
and publication services;
- insurance and reinsurance, banking services and financial instruments.
Market access
(r) What are your main market access problems?
Access to the domestic market
Domestic control systems are still deficient and lead to an abundant supply of imported
products without any guarantee or with a poor qu ality-price ratio on the domestic market.  Moreover,
the absence of any anti-dumping legislation or safeguard measures makes it difficult to protect the
domestic market from unfair competition by other countries.
Access to foreign markets
Before starting to expand and diversify exports, Angola must revive domestic production in
order to make good the marked deficiencies in domestic supplies of essential goods, substitute imports
and create surpluses for foreign markets.  Once there has been a revival in the export of products
which previously occupied an important place on international markets (coffee, maize, cotton,
bananas, etc.), Angola will be able to deal with certain access problems which it already has to try to
prevent.
Angola's market access experience is mainly limited to petroleum and diamonds, which have
guaranteed outlets, and exports resulting from domestic activities carried out jointly with associated
foreign partners, for example fisheries.  Because such exports go through the foreign partners, Angola
has little experience of foreign markets, their mechanisms and potential.
Some of Angola's exports, notably petroleum, are covered by external financing agreements
in which they play the role of security.
(s) What specific problems or barriers, and in which countries, are most troublesome for
your exporters?
For the moment we do not yet have any major problems because of our low capacity to
expand and diversify production for export and also because our exports are often directed by foreignpartners, so our experience of market surveys is limited.
(t) Regional and subregional trading arrangemen t s  ( R T A s ) :   p l e a s e  l i s t  R T A s  t o  w h i c h
your country belongs.  Are you satisfied with th e performance with these RTAs?  Please state
the problems of each.  Do you have suggestions on how to solve these?
In 1980, Angola joined the Lagos Action Plan, which calls for the integration of African
economies in a common market, and in 1982 it has also signed the ABUJA Treaty, which has the
same aims.
At the subregional level, Angola is a member of COMESA and SADC.
Within the framework of SADC, Angola is contributing towards the elimination of tariff and
non-tariff barriers in the energy sector so as to develop subregional trade.  Although the majority ofWT/COMTD/IF/13
Page 17
member countries have already signed a protocol on trade with the aim of strengthening, liberalizing
and diversifying interregional trade, Angola is awaiting a better opportunity to sign this protocol
taking into account the developments in the peace process and economic stabilization.
COMESA lays down priorities for effective cooperation in the areas of agriculture, industry,
transport and communications, energy, natural resources, and environmental management, as well as
mechanisms for relations with the private sector.
These organizations aim to play an important role in promoting the development and
diversification of interregional and subregional foreign trade, which will be facilitated by the effective
stabilization of the political situation in all countries of the subregion.
(u) Are there any problems in utilizing the exis ting market access preferences, such as GSP,
GSTP?  Please state the nature of problems relating to each of these.
There are problems due to the limited number of products exported under this regime
(petroleum by-products) because of obstacles to export and other internal difficulties alreadymentioned in sections B(a), (b) and (c).  It should be noted in particular that the weakness of the water
and power supply infrastructure, for example, prevents the emergence of a competitive export
industry.
(v) What are your technical assistance needs with respect to market access?
The formulation of anti-dumping laws and the definition of safeguard measures;  technical
assistance in marketing.
C. Technical Assistance
Technical assistance is normally provided to developing and least-developed countries to
build or enhance their human resources and institutional capacities, provide trade information and
trade-related legal support, as well as improve their supply capabilities in order to make them moreactive players in the field of multilateral trade.
(a) To the extent this kind of information is easily available, could you please briefly
describe what trade-related assistance you have received over the past five years from bilateral
and multilateral sources and what projects/programmes are presently under consideration in
this area.
There is no technical assistance for trade and exports in sectors such as fisheries.  The same is
true for the coffee sector, although technical assistance for drawing up projects to increase production
is envisaged.
In recent years, the Chamber of Commerce and Industry has received regular visits from an
International Trade Centre consultant in order to draw up a project to strengthen institutional capacity,although this has not yet materialized.
Under a World Bank-financed project to strengthen economic management capacity
(PREGE), the Ministry of Trade has benefited from technical assistance to carry out an analysis on
liberalization of the economy.WT/COMTD/IF/13
Page 18
(b) Please summarize your technical assistance needs as well as other needs as reflected in
this checklist.  Please rank them in terms of priority.
Agriculture
- Drafting and application of phytosanitary measures;
- animal health assistance;
- rehabilitation of agricultural infrastructures;- strengthening of institutional capacity;
- training managers;
- advanced training in the area of agricultural information.
Ministry of Trade and Chamber of Commerce and Industry
- Strengthening of institutional capacity;- training of managers;
- trade information;- legal support;
- supply capacity.
Coffee
- Preparation of projects;- training in the area of trade information;- infrastructure of local markets;
- futures markets;
- Internet.
Fisheries
- Market access;
- management capacity in export enterprises;
- sanitary measures and quality control;
- financing of projects for fish-processing industries and the corresponding know-how;
- assistance in communications, telecommunications and trade information.WT/COMTD/IF/13
Page 19
Transport and communications
- Training of mangers;
- application of international agreements.
Industry and processing
Assistance in all light industrial sectors (foodstuffs and beverages, textiles and clothing, etc.),
promotion of industrial development, standard ization and quality, industrial property, etc.
(c) In the light of the information you have been able to provide so far in response to the
questions in this checklist, what types of information are, in your view, still missing or could be
improved upon?  In order to assist you in providing this missing information, would you need
technical assistance?
Technical assistance for the elaboration and coordination of Angola's trade policy.
(d) Does your country have the technological capacity and human resources to make use of
the new information/communication technology to ols such as CD-Rom, the Internet, etc?  What
assistance would you need to enable your country  to use these tools in the context of training
and, more generally, in the context of trade development?
These new information/communication technolo gy tools are gradually being introduced into
Angola by enterprises with expertise in supplying services to install the equipment and train local
personnel.  The system is not yet in general use, however, so it is necessary to find out what factorsare hindering its installation.
N.B. The translation into French of the questions and replies to this questionnaire was made on the
basis of the Portuguese language version.WT/COMTD/IF/13
Page 20
Integrated Response by World Bank, ITC, UNCTAD,
IMF, WTO AND UNDP
ANGOLA
Technical assistance needs identified in
the questionnaireOrganization Response
In response to question A(k):
Technical assistance for compliance
with the WTO Agreements
Support is needed in several areas,
notably in vocational training so as to
revise Angola's legislation in line withthe Agreements, international trade and
amendment of domestic legislation
(market access, sanitary and
phytosanitary measures, quality
control, etc.), the creation ofdocumentation and information centres
and databases, market surveys (for
example, for fisheries and agricultural
and livestock products), and technical,
financial and institutional support
(services, equipment and technicians
for training and disseminating theAgreements).ITC The TOPS database on business
opportunities for ECOWAS member
countries and the JURIS database on thelegal aspects of international trade will
be made available to the Government.
UNCTAD - UNCTAD will organize a seminar
for the public and private sectorson the multilateral framework of
international trade.
*
- UNCTAD will continue to supply
the elements of the trade analysis
and information system (TRAINS)on CD-Rom.
World Bank The project to build up economic
management capacities will be aimed atsolving several of the problems
mentioned (Credit 2274 approved on
19 June 1991)
WTO Specialized regional seminars for
French-speaking least-developed
countries will be organized in 1998 and
1999.
- A national seminar in March 1998.
                                                     
*Financing to be requested.WT/COMTD/IF/13
Page 21
Technical assistance needs identified in
the questionnaireOrganization Response
Question A(k) (cont'd): - A three-week trade policy training
course will be organized for
French-speaking least-developed
countries in 1998 and 1999.
- The WTO will also provide
specific assistance to enable the
WTO Agreements to be better
implemented in 1998-2000.
This assistance will consist in helping
the country to formulate/revise its trade
legislation and establish its notifications
procedures.
World Bank/
WTOPossible installation of a
World Bank/WTO joint Web site.WT/COMTD/IF/13
Page 22
Technical assistance needs identified in
the questionnaireOrganization Response
In response to A(l):
Technical assistance in the specific
areas of the WTO Agreements
In all the areas mentioned in the
question, but especially:
- Access to export markets for
fishery, agricultural and industrial
productsWTO See A(k).
World Bank/
WTORegional seminar on the WTO and its
impact on trade policy in Africa in 1998.
- drafting of anti-dumping laws
providing for restrictive measuresWTO See A(k).
- rules of origin WTO See A(k).
- revision of legislation in trade in
servicesITC A seminar on standards and quality
control and packaging will be organized
in 1998, after consultation with the
Government.
WTO See A(k).
- support for the national school of
commerce and the trade
information centreWTO See A(k).WT/COMTD/IF/13
Page 23
Technical assistance needs identified in
the questionnaireOrganization Response
In response to question A(m):
Assessment of trade analysis and
negotiating capacities
Although we have experience in trade
analysis and negotiation both at the
multilateral and bilateral levels, our
knowledge of the Agreements is very
limited because of the lack of training
and opportunities for participation inWTO activities (particularly in the
various committees and other
specialized institutions).  Furthermore,
because Angola did not participate in
the Uruguay Round negotiations whichled to the WTO Agreements, it has had
additional difficulties in interpreting
and implementing the Agreements.World Bank See A(k).
WTO See A(k).
UNCTAD/
UNDPThrough the RAF/96/001 project UNDP
will organize seminars in the subregion
to help countries of the subregion to
improve their negotiating capacity.
Angola will be invited to nominate one
or two participants in these regionalseminars.
Technical assistance with theformulation and coordination of
national trade policy
UNDP The local office of the UNDP intends to
formulate a wide-ranging programme to
strengthen capacities in the field of
economic management (ANG/98/001)covering the period 1998-2000 and part
of this programme will be devoted to
trade and the economic integration of
the SADC countries.  Under this
programme, the Government will be
given technical assistance with the
formulation and coordination of tradepolicy.
World Bank See A(k).WT/COMTD/IF/13
Page 24
Technical assistance needs identified in
the questionnaireOrganization Response
In response to question B(g):
Technical assistance needs with respect
to supply constraints
Assessment of the agricultural and
livestock raising resources capable ofbeing revived so as to increase and
diversify domestic supply and develop
exports.UNDP/
UNCTADUnder the ANG/97/020 project, the
Government is being provided withassistance to encourage private
investment in the coffee and palm oil
sector.  This assistance will continue to
be provided up to the year 2000.
Identification of industries able to use
local raw materials and appropriate
technologies.
Development of viable productionprojects and external arrangements for
their financing.
Development of business management,
production incentive, quality control and
export promotion techniques.ITC See A(l).
Need for financial assistance to set up
production and transport infrastructures
and obtain the necessary technology.WT/COMTD/IF/13
Page 25
Technical assistance needs identified in
the questionnaireOrganization Response
In response to question B(q):
Technical assistance needs in the areas
of trade promotion and support
services
ITC The ITC will organize a needs
identification mission in 1998.  After
that, a technical cooperation project will
be formulated in the areas identified.*
International market surveys and
analysis for exports.ITC See above.
Education and standards and
techniques of international trade in
exports.ITC See above and A(l).
Communications, telecommunications,
and information centres.ITC See A(k).
Techniques and strategies for
marketing exports.ITC See above.
Establishment of training and
retraining centres for workers and
regular information and publication
services.
Question B(q) (cont'd):
Insurance and reinsurance, banking
and financial instruments services.World Bank The Government will be able to obtain
assistance in this area under the
financial institution modernizationproject (Credit 2421 approved
3 September 1992).
                                                     
*Financing to be requested.WT/COMTD/IF/13
Page 26
Technical assistance needs identified in
the questionnaireOrganization Response
In response to question B(v):
Technical assistance needs with respect
to market access
Formulation of anti-dumping laws and
definition of safeguard measures;
technical assistance in marketing.WTO See A(k).WT/COMTD/IF/13
Page 27
Technical assistance needs identified in
the questionnaireOrganization Response
In response to question C(b):
Summary of technical assistance needs
in terms of priority
AGRICULTURE
- Drafting and application of
phytosanitary measures
- Animal health assistance
- Rehabilitation of agricultural
infrastructures
- Strengthening of institutional
capacityITC See B(q).
- Training managers ITC See B(q).
WTO See A(k).
- Advanced training in the area of
agricultural information-
MINISTRY OF TRADE AND
CHAMBER OF COMMERCE AND
INDUSTRY
- Strengthening of institutional
capacityIMF Since 1995, the Fund has been
providing technical assistance in
customs administration and legislation
in order to improve the efficiency of
the customs administration.  Thisassistance, which is to be continued in
1998, should encourage trade by
minimizing the costs incurred by
importers in complying with the
customs legislation in force.
ITC See B(q).
UNDP See A(m).
- Training of managers ITC See B(q).
WTO See A(k).
- Trade information ITC See B(q) and A(k).
- Legal support ITC See B(q) and A(k).
WTO See A(k).
- Supply capacityWT/COMTD/IF/13
Page 28
Technical assistance needs identified in
the questionnaireOrganization Response
Question C(b) (cont'd):
COFFEE
- Preparation of projectsUNDP/
UNCTADSee B(g).
- Training in the area of trade
informationITC See B(q) and A(k).
- Infrastructure of local markets
- Future markets
- Internet UNDP The project RAF/97/021 could provide
training in this field for a few Angolan
managers.
World Bank/
WTOProposed installation of joint World
Bank/WTO Web site.
FISHERIES
- Market access
- Management capacity in export
enterprisesITC See B(q).
- Sanitary measures and quality
controlITC See A(l).
- Financing of projects for fish-
processing industries and the
corresponding know-how
- Assistance in communications,
telecommunications and tradeinformationITC See B(q) and A(k).
TRANSPORT AND
COMMUNICATIONS
- Training of managersWTO See A(k).
- Application of international
agreementsWTO See A(k).
INDUSTRY AND PROCESSING
- Assistance in all light industrial
sectors (foodstuffs and beverages,
textiles and clothing, etc.),
promotion of industrial
development, standardization and
quality, industrial property, etc.ITC See B(q).WT/COMTD/IF/13
Page 29
Technical assistance needs identified in
the questionnaireOrganization Response
In response to question C(d):
Technological capacity and human
resources to make use of the new
information technology tools
These new information/communication
technology tools are gradually being
introduced into Angola by enterprises
with expertise in supplying services to
install the equipment and train local
§personnel.  The system is not yet ingeneral use, however, so it is necessary
to find out what factors are hindering
its installation.WTO In 1998, the WTO will be able to make
the necessary link-up of the focal point
with Internet and provide CD-Roms,
one on the results of the Uruguay
Round and another on the multilateraltrading system.  This could be done in
parallel with the National Seminar
planned for March 1998.
World Bank/
WTOSee C(b) COFFEE, Internet.
__________