RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/153/Rev.1 
14 December 2005  
 
(05-5928) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
REPUBLIC OF GUINEA 
 
Report by the Secretariat 
 
Revision 
 
 
 
 
This report, prepared for the second review of the trade policy of the Republic of 
Guinea, has been drawn up by the WTO Secretariat on its own responsibility.  
The Secretariat has, as required by th e Agreement establishing the Trade Policy 
Review Mechanism (Annex 3 of the Ma rrakesh Agreement Establishing the 
World Trade Organization), sought clarification from the Republic of Guinea on 
its trade policies and practices. 
 
Any technical questions arising from this report may be addressed to:  Miss Ulla 
Kask (tel:  022.739.56.27) or Mrs Ali ce Enders (tel:  (+44) 1 383 882 754). 
 
Document WT/TPR/G/153 contains the policy statement submitted by the 
Republic of Guinea. 
 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Re view Body on the Republic of Guinea. Republic of Guinea WT/TPR/S/153/Rev.1 
 Page iii 
 
 
CONTENTS 
 
Page 
SUMMARY OBSERVATIONS vii 
 (1) E CONOMIC ENVIRONMENT  vii 
 (2) I NSTITUTIONAL FRAMEWORK  viii 
 (3) T RADE POLICY INSTRUMENTS  ix 
 (4) S ECTORAL POLICIES  x 
I. ECONOMIC ENVIRONMENT 1  
 (1)  OVERVIEW  1 
 (2)  GENERAL BACKGROUND  2  
 (3)  RECENT ECONOMIC DEVELOPMENTS  3  
 (i)  Macroeconomic indicators 3  
 (ii)  Budget policy 5  
 (iii)  Monetary and exchange policy 7  
 (4)  TRENDS IN TRADE  9  
 (5)  OUTLOOK  10 
II. LEGAL AND INSTITUTIONAL FRAMEWORK OF THE FOREIGN TRADE AND 
INVESTMENT REGIMES 11  
 (1)  OVERVIEW  11 
 (2)  CONSTITUTIONAL , LEGAL AND GENERAL INSTITUTIONAL FRAMEWORK  11  
 (3)  TRADE AND INVESTMENT POLICY  13  
 (i)  Main features 13  
 (ii)  Institutional framework 14  
 (iii)  Instruments 15  
 (4)  TRADE POLICY FRAMEWORK AGREEMENTS  20  
 (i)  WTO 20  
 (ii)  Regional economic agreements 22  
ANNEX II.1:  TRADE-RELATED TECHNICAL ASSISTANCE 25  
 (1)  OVERVIEW  25 
 (2)  ACTION CARRIED OUT BY THE WTO  SINCE 1995 25  
 (3)  ACTION PLANNED BY THE WTO  FOR 2005 26  
 (4)  ACTION REQUESTED BY THE AUTHORITIES  26 
III. TRADE POLICY BY MEASURE 27  
 (1)  OVERVIEW  27 
 (i) Import measures 27  (ii) Export measures 28 
 (iii) Internal measures 28 
 (2)  M
EASURES DIRECTLY AFFECTING IMPORTS  29  
 (i) Registration 29 
 (ii) Customs procedures 30 WT/TPR/S/153/Rev.1 Trade Policy Review 
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Page 
 
 (iii) Customs valuation 30 
 (iv) Customs levies 31  (v) Prohibitions, restrictions and import licences 39 
 (vi) Sanitary and phytosanitary measures 40 
 (vii) Technical standards and accreditation procedures 40  (viii) Packaging, marking and labelling requirements 41 
 (ix) Contingency measures 41 
 (x) State trading 41 
 (3)  M
EASURES DIRECTLY AFFECTING EXPORTS  43  
 (i) Registration 43 
 (ii) Customs procedures 44  (iii) Export duties and taxes 44 
 (iv) Prohibitions and products subject to licensing, sanitary and phytosanitary 
measures, and technical standards and regulations 44 
 (v) Export subsidies and promotion 45 
 (vi) State trading 45 
 (4)  I
NTERNAL MEASURES  46  
 (i) Protection of intellectual property rights 46 
 (ii) Competition policy 50  (iii) Subsidies and aid 51 
 (iv) Government procurement 51 
IV. TRADE POLICY BY SECTOR 54  
 (1)  O
VERVIEW  54 
 (2)  PRIMARY SECTOR  55  
 (i) Overview 55  (ii) Basic data 56 
 (iii) Agricultural and fisheries policy 57 
 (3)  S
ECONDARY SECTOR  62  
 (i) Overview 62 
 (ii) Mining 62 
 (iii) Electricity 65  (iv) Water 66 
 (v) Manufacturing 66 
 (vi) Measures concerning trade in non-agricultural products 67 
 (4)  S
ERVICES  69 
 (i) Overview 69 
 (ii) Transport 69 
 (iii) Tourism 72 
 (iv) Telecommunications and post 73  (v) Financial services 74 
REFERENCES 75 
APPENDIX
 TABLES 77 
 Republic of Guinea WT/TPR/S/153/Rev.1 
 Page v 
 
 
CHARTS 
Page 
III. TRADE POLICY BY MEASURE 
 III.1 Breakdown of MFN duties, 2005 34 
III.2 Tariff escalation, 2005 35 
  
TABLES 
I. ECONOMIC ENVIRONMENT  
 
I.1 Basic economic indicators for Guinea, 1998-2004 2 
I.2 Traditional (informal) and modern (formal) activities in Guinea's economy, 2002 3 I.3 Trend in Guinea's real economic growth, 1998-2004 4 
I.4 Guinea's balance of payments, 1999-2004 5 
I.5 Financial operations by the Guinean State, 1999-2004 6 I.6 Guinea's main exports, 2000-2004 10 
II. LEGAL AND INSTITUTIONAL FRAMEWORK OF THE FOREIGN TRADE AND 
INVESTMENT REGIMES 
 
II.1 Investment Code – benefits under privileged regimes 19 II.2 Main WTO documents relating to Guinea, July 2005 21 
III. TRADE POLICY BY MEASURE 
 III.1 Customs taxes on imports, 1998 and 2005 31 
III.2 Structure of MFN duties, 1998 and 2005 32 
III.3 Exemptions from import duty by regime, 1997-2002 39 III.4 List of State-owned enterprises, 2005 42 
III.5 Ratification by Guinea of the inte llectual property protection treaties  
administered by WIPO, 2004 47 
III.6 Subjects and terms of protection under the Bangui Agreement (1977) and its revision (1999) 48 
III.7 Applications for industrial property protection processed by the SPI, 1999-2004 49 
III.8 Government procurement, 1998-2001 53 
IV. TRADE POLICY BY SECTOR  
 
IV.1 Agricultural production, 1999-2003 57 IV.2 Major operators in the mining sector, 2000-2004 63 
IV.3 Production and exports of mining products, 2002-2004 64 
IV.4 Tourism indicators, 1991 and 1999-2003 72 
 
 
APPENDIX TABLES 
III. TRADE POLICY BY MEASURE 
 AIII.1 MFN import duties by HS Chapter, 2005 79 
IV. TRADE POLICY BY SECTOR  
 
AIV.1 Applied MFN tariffs by ISIC category, 2005  82  Republic of Guinea WT/TPR/S/153/Rev.1 
 Page vii 
 
 
SUMMARY OBSERVATIONS 
 
(1) E CONOMIC ENVIRONMENT  
1. For 2005, the main objective of the 
Guinean authorities is to emerge from the 
economic crisis into which the country has gradually sunk since the first review of Guinea's trade policy in 1999.  The authorities are endeavouring to meet the conditions for 
resuming cooperation with donors, suspended 
since 2003.  This recovery is also a prerequisite for reducing Guinea’s external debt, which amounted to 99.8 per cent of GDP in 2004. 
2. Guinea, a "least developed country 
(LDC)", was unable to achieve the objectives 
set in January 2002 in its Poverty Reduction Strategy Paper (PRSP).  The average annual rate of growth of GDP in real terms over the period 1999-2004 was 3.1 per cent, the same 
as the rate of demographic growth;  therefore, 
per capita GDP could not be increased. According to the UNDP, Guinea is 160th (out of 177 countries) in the 2004 human development index.  
3. Guinea has considerable advantages 
that favour diversified agriculture, as well as a 
coastline and mineral wealth.  Bauxite is Guinea’s principal mineral resource and it has 30 per cent of the world’s known reserves.  Value added to bauxite on the spot remains 
modest.  
4. Economic activity is mostly informal 
(subsistence agriculture,  trade and small-scale 
mining).  The "modern" sector encompasses mining on an industrial scale, agri-food 
enterprises, electricity and water, construction 
and public works, and financial services.  Manufacturing is little developed (3.5 per cent of GDP in 2004).  
5. With the exception of the mining 
sector, there is little interest on the part of 
foreign investors.  The Diagnostic Trade 
Integration Study (DTIS) conducted in the context of the Integrated Framework (IF) identified numerous constraints on development of the non-mining private sector.  
These include the legal and regulatory framework for private transactions, which remains unstable, not very clear and thus of 
little incentive; the poor quality of public 
services;  and insufficient investment in infrastructure (transport, water, electricity). In general, good gover nance is still a major 
challenge.  
6. In 2004, the official rate of inflation 
was 17.5 per cent (annual average), an increase in comparison with 12.9 per cent in 2003 and 3 per cent in 2002.  This inflationary trend is the result of budgetary slippage, as well as failure to manage the money supply 
because of the importance of the informal 
sector.  The budget deficit (on the basis of commitments and excluding grants) rose from 5.3 per cent of GDP in 1999 to 7.5 per cent in 2004.  
7. The tax base is extremely limited, 
firstly because of the importance of the informal economy and also because the mining sector’s contribution to the State’s revenue is low (1.9 per cent of GDP  in 2004 compared to 
10.6 per cent in 1990).  This low figure can be 
explained by the decrease in global prices for 
bauxite, as well as the extent of the tax incentives negotiated by each mining enterprise in the relevant agreement, the details of which are confidential.  Approved 
enterprises also have their own exchange 
regime, whereas non-mini ng enterprises are in 
principle obliged to repatriate their export earnings.  
8. According to the World Bank, 
exemptions from import duties and taxes given 
to mining companies and to certain large 
importers, inter alia , gave rise to a loss of 
customs revenue amounting to 2.1 per cent of 
GDP in 2002, i.e. a loss of some 50 per cent of potential customs revenue.  In October 2004, 
the authorities decided to abolish illegal 
exemptions and only retain those granted under the Investment Code or mining agreements, as well as the exemptions given to diplomatic missions, NGOs, etc.  WT/TPR/S/153/Rev.1 Trade Policy Review 
Page viii 
 
 
9. In March 2005, the Banque centrale 
de la République de Guinée  – BCRG (Central 
Bank of the Republic of Guinea) adopted a 
policy of exchange rate liberalization, ending 
the practice of multiple exchange rates. 
Nevertheless, the lack of foreign currency on the official market remains a major obstacle.  On the official market, th e average rate for the 
Guinean franc to the United States dollar rose 
from 1,387 at the end of 1999 to 2,467 at the 
end of 2004 and 3,467 at the end of April 2005.  
10. There have been few changes 
concerning the value and structure of trade.  
Three quarters of exports are composed of 
mining products (bauxite, alumina, gold and 
diamonds).  The trade balance surplus is insufficient to offset the deficit in the services account, so in 2004 there was a current account deficit of 1.9 per cent of GDP.  The 
United States and the European Union (EU) 
are still Guinea’s leading trade partners.  
(2) I NSTITUTIONAL FRAMEWORK  
11. The presidential elections in 2003 
resulted in the re-election of the President in power since 1984, after a revision of the 
Constitution had done away  with the provision 
restricting the President’s mandate to two consecutive terms of office.  The Ministry of Trade, Industry and SMEs (MCIPME) is responsible for the Government’s trade and 
industrial policy.  The Comité national des 
négociations internationales - CNNCI 
(National Committee for International 
Negotiations) has been the interministerial structure for Guinea’s participation in the 
WTO since 2003.  It is also responsible for 
following up the trade components of the ECOWAS and ACP-EU agreements.  Building the capacity of its members is one of the authorities’ priorities for trade-related technical assistance to be provided by the 
WTO.  
12. Guinea’s trade policy is aimed at 
diversifying and boosting exports, especially those of the agricultural, fisheries and non- mining sectors, and handicrafts and tourism.  
The majority of Guinea’s trade laws have remained unchanged since the first trade policy review (TPR).  Some important 
exceptions include the adoption of the eight 
uniform acts of the OHADA Treaty in 2000, the 2005 tariff reform, and ratification of the revised Bangui Agreement in 2001. 
13. Guinea became a founding member of 
the WTO on 25  October 1995.  It has not 
signed any of the plurilateral agreements.  It 
grants at least MFN treatment to all its trading partners.  
14. Guinea takes an active part in the 
WTO ministerial conferences and generally 
supports the joint positions of the 
ACP countries, LDCs and the African Union. As a cotton-producing country, it is particularly interested in the sectoral initiative on cotton at the WTO.  It faces problems 
regarding notifications, as well as 
implementation of the WTO Agreement on customs valuation.  The authorities indicate that implementation depends on the upgrading of the customs computer system and especially the purchase of ASYCUDA++, for which they 
hope to receive material support from the 
international community .  The preshipment 
inspection regime was abolished at the end of 2004.  
15. Taking into account the tariff 
commitments made by France on behalf of 
French West Africa (A.O.F.) during the colonial era, as well as those made by Guinea in the Uruguay Round, bindings affect 41 per cent of tariff lines (2005 tariff) and include all 
agricultural products.  The applied tariffs 
exceed the bound rates for 627 tariff lines (26.8 per cent of bound lines).  
16. Guinea’s Schedule of Specific 
Commitments under the GATS (GATS/SC/102) concerns the supply of certain professional 
services through the presence of natural 
persons, as well as some tourism services.  Guinea has not signed the Fourth and Fifth Protocols to the GATS.  Republic of Guinea WT/TPR/S/153/Rev.1 
 Page ix 
 
 
17. Guinea is a member of the Economic 
Community of West African States (ECOWAS), whose customs union is planned for 2007, in accordance with the timetable for an 
Economic Partnership Agreement with the EU.  
Guinea’s customs tariff is aligned with the Common External Tariff (CET) of the West African Economic and Monetary Union (WAEMU).  The starting date for the West 
African Monetary Zone (WAMZ) has been 
deferred until 1 December 2009, in view of the poor performance by member States, including Guinea, as regards convergence.  
18. At the bilateral level, only the 
agreement between Guinea and Morocco is 
reciprocally preferential.  Guinea is eligible 
for non-reciprocal trade preferences under the GSP and/or LDC schemes of several WTO Members, pursuant to the Cotonou Agreement concluded with the EU and the United States 
African Growth and Opportunity Act.  These 
benefits are under-utilized. 
(3) TRADE POLICY INSTRUMENTS  
19. Since its 1999 TPR, Guinea has in 
general enhanced its trade regime.  The 2005 tariff reform combined the import customs 
duty (DDE) and the fiscal import duty (DFE) 
into one single fiscal import duty (DFI).  DFIs 
are, without exception, ad valorem. 
20. Guinea still imposes an ECOWAS 
community levy (0.5 per cent), a clearance fee 
(2 per cent) and the additional centime 
(usually 0.25 per cent).  In 2005, a degressive protection tax (TDP) was introduced for fruit 
juices, furniture, paints and varnishes, inter 
alia, in principle until the end of 2009.  The 
authorities are considering imposing a special import tax (TCI) on certain primary products.  
21. The tariff reform has only slightly 
lowered the level of Guinea’s tariff protection.  The simple average of duties actually applied (including other duties and taxes) has fallen 
from 16.65 per cent in 1998 to 14.9 per cent in 
2005. 22. Imported goods are subject to VAT of 
18 per cent;  some products (for example, alcoholic beverages and cigarettes) are also subject to "consolidated excise duty" (AC) 
ranging from 5 to 45 per cent.  Petroleum 
products are subject to a special tax.  The principle of national treatment is respected except in the case of AC on alcoholic beverages. 
23. A descriptive export application 
(DDE) or a descriptive import application (DDI) is required for any transaction amounting to at least US$2,000.  DDIs are issued automatically, except for onions, potatoes and cigarettes; DDEs are also issued 
automatically.  Guinea takes part in the 
Kimberley process as far as trade in rough diamonds is concerned.  
24. Petroleum products are still subject to 
an import monopoly.  However, the authorities 
indicate that there is a de facto  monopoly on 
imports of rice, sugar, flour and medicines, 
inter alia . 
25. Most of Guinea’s 200 standards are 
voluntary.  Those that are compulsory apply to coffee, cement, wood, paints and varnishes, 
and roofing sheets.  In practice, only cement is 
subject to conformity assessment.  No notification has been made to the WTO in this regard and technical barriers to trade, as well as sanitary and phytosanitary measures, are 
some of the areas for which Guinea is seeking 
technical assistance from the WTO.  
26. Since the first TPR, there have been 
few changes in Guinea's export regime.  Some enterprises receive tax benefits under the 
Investment Code.  
27. The revised Bangui Agreement 
provides for convergence between the intellectual property protection regimes of its members and the commitments arising out of the WTO TRIPS Agreement.  The Guinean 
copyright and related rights regime, dating 
from 1980, has not yet however been revised.  WT/TPR/S/153/Rev.1 Trade Policy Review 
Page x 
 
 
According to the Guinean Copyright Office, 
Guinea is facing a serious problem of illegal and massive imports of pirated works, but lacks the means to combat this phenomenon 
effectively.  
28. Administrative price controls apply to 
cement (on the basis of a price negotiated between the principal enterprise concerned 
and the State), petroleum products, water and 
electricity.  
29. Since its first TPR, Guinea has 
introduced government procurement reforms in order to enhance governance.  The regime includes a policy of preference for Guinean enterprises and encourages the employment of 
Guinean labour.  
(4) S ECTORAL POLICIES  
30. Development of the rural sector is the 
key to poverty reduction;  farmers make up 62 per cent of Guinea’s population and 81 per 
cent of the poor.  The priority focus of 
agricultural policy is on food security, especially increased coverage of domestic demand for rice, the basic foodstuff;  in 2003, 24 per cent of Guinea’s demand was met by imports.  Rice enjoys tariff protection of 20 per 
cent (for bags weighing less than 5 kg), which 
is the maximum rate; th is rate may increase in 
2005 if the TCI is introduced.  Reorganization of the cotton subsector since the first TPR of Guinea has provided producers with better 
support and helped to double production between 1999 and 2002.  The Société 
guinéenne de coton (Guinean Cotton 
Company) still has a de facto monopoly of 
cotton exports.  
31. The State prefers to find private 
managers to be granted concessions for State-owned enterprises.  In the mining sector, the State has handed over management of the Alumina Company of Guinea (AGC), as well 
as that of the Société des Bauxites de Kindia 
(Kindia Bauxite Company).  The State has a minority holding  in the Compagnie des Bauxites de Guinée  – 
CBG (Guinean Bauxite Company), which 
produces around three quarters of the bauxite in Guinea.  
32. The major part of the industrial fabric 
is made up of enterprises manufacturing for the domestic market (tobacco, beverages, edible oils, milling, cement, paints and varnishes) and is protected through various 
tariff and non-tariff measures.  For example, 
cement enjoys maximum tariff protection of 20 per cent and is subject to a minimum price as well as a number of mandatory standards that are the subject of conformity assessment.  
33. The electricity sector is in a critical 
situation. Électricité de Guinée  – EDG 
(Guinea Electric Company), whose management was taken over by the State following the termination of the contract with the manager, is facing numerous problems:  a 
high level of indebtedness, difficulties in 
collecting unpaid bills (especially those owed by the State), and obsolete facilities.  In view of Guinea’s total dependence on imports of petroleum, whose price has increased sharply since 2004, there should be an administrative 
review of prices of derivative products, but this 
does not systematically appear to be the case;  in September 2004, there was, however, an increase of 74 per cent in electricity tariffs, the first since 1996.  
34. Transport is one of the sectors in 
which Guinea has undertaken specific commitments under the GATS, as is tourism, where the level of development remains low, except in the area of business travel.  
35. The boom in mobile telephony has 
enabled Conakry’s teledensity to improve, but basic services are still unsatisfactory. Telekom Malaysia, the strategic partner of the incumbent operator, SOTELGUI, has withdrawn and the authorities are seeking a 
new partner.  The monopoly on basic services 
could then be extended beyond 23 December 2005.  Republic of Guinea WT/TPR/S/153/Rev.1 
 Page xi 
 
 
36. Guinea’s banking sector is little 
involved in financing the country’s economic activity, with the exception of trade.  The BCRG reviews the regulatory framework for 
banking and insurance in order to improve the 
financial situation of the operators in these sectors.  The BCRG also intends to establish a framework for microfinance with a view to strengthening the important role which this 
type of activity can play in developing rural 
areas.