WORLD TRADE  
ORGANIZATION  WT/TPR/G/169/Rev.1 
16 November 2006 
 (06-5533) 
Trade Policy Review Body Original:   French 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
REPUBLIC OF THE CONGO 
 
Revision 
 
 
 
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by the Republic of the Congo is attached. 
 
 
 
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 the Congo.   Republic of the Congo WT/TPR/G/169/Rev.1 
 Page 3 
 
 
  CONTENTS 
 
 
  Page 
INTRODUCTION 5 
I. SOME  CURRENT  ECONOMIC  DATA 5  
(a) Agriculture and livestock 6  
(b) Forestry 7 
(c) Industry 7 
(d) Mining and energy 8  
(e) Services 8 
(f) Social sector 9 
II. CURRENT  TRADE  POLICY 9  
II.1 ASPECTS OF DOMESTIC TRADE POLICY 10  
II.2 ASPECTS OF FOREIGN TRADE POLICY 12  
III. ONGOING  REFORMS 15  
IV. OUTLOOK 20 
V. CONCLUSION 20 
 
 Republic of the Congo WT/TPR/G/169/Rev.1 
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  INTRODUCTION 
1. Since the late 1990s, the Government of the Re public of the Congo has been implementing an 
economic and social development policy based on free-market principles and aimed at promoting the country's private sector. 
2. This is a lengthy process that focuses on ph asing out the old macroeconomic management 
mechanisms inherited from many years of essentially State-controlled practices. 
3. The main goal is to create a social and economic environment free of all the burdens that 
hamper the expansion of business in the Congo. 
4. In view of the political system's involvement in the choice of economic strategies to be 
adopted, the Government has simultaneously been  introducing reforms that have led to the 
establishment of democratic institutions, deem ed to be a guarantor of good governance. 
5. To back up all these actions at the domestic le vel, the Republic of the Congo is playing an 
active role in consolidating subregional integr ation through the adoption of measures on the free 
movement of persons and goods and, in the long term, the creation of common markets within the 
African Union, the Economic Community of Centra l African States (ECCAS) and the Central African 
Economic and Monetary Community (CAEMC). 
6. All these efforts should contribute to: 
- Strengthening domestic production capacity; 
- diversifying the Congolese economy; 
- enhancing the competitiveness of businesses; 
- the inflow of foreign direct investment, etc. 
7. As regards investment, the Congo has adopted  a regulatory framework that is extremely 
favourable to foreign investors and protects their rights. 
8. It should be noted in this connection that today the Congo is an important magnet for 
investment because of its immense and as yet untapped economic potential. 
I. SOME CURRENT ECONOMIC DATA 
9. The Republic of the Congo, a Central African St ate, straddles the equator and covers an area 
of 342,000 km
2.  It has a coastline of 170 km. 
10. The territory of the Congo is bounded by Came roon and the Central African Republic to the 
north;  the River Congo to the east;  the Democratic  Republic of the Congo and Angola to the south;  
the Atlantic Ocean to the south-west and Gabon to the west. 
11. The relief is fairly flat;  the climate is hot and humid and average rainfall is 1,500 mm.  
Temperatures are of the order of 25o.  The Congo has a highly diverse hydrographic network, 
comprising a number of rivers. WT/TPR/G/169/Rev.1 Trade Policy Review 
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12. The Congo's population is currently estimated to be 3.7 million, most of whom live in the 
following cities:  Brazzaville (the capital);  Pointe-Noire;  Dolisie;  Nkayi;  and Ouesso. 
13. Per capita GDP is around US$1,300.  Life expect ancy is estimated to be 53 years, and the 
fertility rate is 6.07 births per woman. 
14. As mentioned in the introduction, in addition to  its oil reserves, the Republic of the Congo has 
abundant natural resources, including many species of timber, large expanses of arable land, an 
extensive hydrographic network, and inestimable fisheries, plant and animal resources. 
15. The following picture emerges from an analys is of the economic situation by sector of 
activity: 
(a) Agriculture and livestock 
16. During the 1960s, 80 per cent of the population earned a living from agriculture, compared 
with 40 per cent today.  Congolese agriculture em ploys some 300,000 people, 70 per cent of them 
women.  The sector produces a number of food crops for export, including coffee, cocoa and cane sugar exported to Europe under the Sugar Protocol  (13,000 tonnes annually), with 7,280 tonnes going 
to the United States. 
17. The agricultural sector's contribution to economic development has declined, from 27.1 per 
cent of GDP in 1960 to 6.7 per cent at present. 
18. The agricultural sector faces the following constraints: 
- Deterioration of communications and energy infrastructure in rural areas; 
- low level of investment; 
- lack of organization among producers; 
- absence of storage and processing structures;  and 
- competition from subsidized imports. 
19. As far as subsidized imports are concerned, th e Congo has already suffered the adverse effects 
of agricultural subsidies, notably the closure of poultry farms in 1975 and 1980 and, more recently, the 
abandonment of groundnut planta tions and palm groves, which face strong competition from lower-
cost vegetable oil imports. 
20. In addition, the agro-industrial sector, previously  dominated by five products, i.e. tobacco, oil 
palms, groundnuts, maize and sugar cane, now  only produces a single product (sugar cane). 
21. Today, Congolese agriculture is threatened by another problem stemming from the impact of 
the European Union's new sugar regime. 
22. The measures taken by the European Union to lower ACP sugar prices will undoubtedly 
prove detrimental to the industries of developing countries party to the Sugar Protocol, such as the 
Congo. 
 Republic of the Congo WT/TPR/G/169/Rev.1 
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  23. Because of all these problems, the Congo's producti on of food crops falls far short of domestic 
demand, thus encouraging a high volume of imports. 
24. It should be noted in this connection that th e annual volume of Congolese food imports stands 
at CFAF 100 billion, out of a total of CFAF 600 billion for all imported goods. 
(b) Forestry 
25. The forestry sector was the engine of the national economy during the 1950s, 1960s and 
1970s, accounting for 85 per cent of export earnings and over 10 per cent of the GDP. 
26. This sector has now been largely overtaken by petroleum, which accounts for 47 per cent of 
GDP formation compared to 2 per cent for timber. 
27. The Congo's forests comprise some 20 million hectares of natural forest (60 per cent of 
Congolese territory) and 90,000 hectares of plantations. 
28. In the case of natural forest, 13 million hectares  are exploitable and 7 million hectares are in 
flooded areas.  Although some mountainous areas are s howing signs of depletion, the natural forest 
can yield 2 million cubic metres of timber annually. 
29. The most common species are:  okoumé, limba, sap eli, moabi, bilinga, kambala, wengué, etc. 
(c) Industry 
30. In recent years, the industrial sector has seen its share of GDP decline from 14.9 per cent in 
1979 to 8 per cent today. 
31. The sector is composed of the following industries: 
- Food industry :  mainly producing cane sugar, be er and non-alcoholic beverages, 
bakery and dairy products, mi neral water and wheat flour. 
- Timber industry :  composed of some sawmills and veneer plants. 
- Building materials industry :  the major enterprise is the Société nouvelle des ciments 
du Congo  – SONOCC (Congolese New Cement Company). 
- Chemical industry :  with an oil refinery ( Congolaise de Raffinage de Pétrole  – 
CORAF (Congolese Oil Refining Company)), a plant manufacturing lubricants and 
industrial gas, small factories maki ng paints, plastic foam and soap. 
- Metal processing and engineering industries :  comprising different types of plant 
producing, for example, corrugated sheets, na ils and kitchen utens ils, and galvanized 
tubes and pipes. 
- Other industries :  the development of other industries, for example, cigarette 
manufacturing, faces a number of constraints such as the constricted domestic market, 
the high cost of production factors, the lack of urban and rural communications infrastructure, and the scarcity of electric power, etc. WT/TPR/G/169/Rev.1 Trade Policy Review 
Page 8 
 
 
(d) Mining and energy 
32. The mining and energy sector is dominated by petroleum.  The latter's share of the GDP was 
less than 2 per cent up to 1971, but since 1973, with the commissioning up of the first offshore well in 
1972 and the oil price shock in 1973- 1974, it has seen unprecedented growth. 
33. Annual output of crude oil has risen from 2 million tonnes in 1974, 5.6 million tonnes in 
1986, 10 million tonnes in 1996, to some 13 million tonnes at present. 
34. Oil plays a vital role in the Congo's economy.  The sector's earnings are crucially important in 
that they account for around 66 per cent of gove rnment revenue, over 47 per cent of the GDP and 
close to 90 per cent of export earnings. 
(e) Services 
35. Despite the boom in the petroleum sector, sin ce the 1970s the services sector has become one 
of the most important in the Congo from the point of  view of both its contribution to the GDP and the 
take-up of labour. 
36. The services sector's share of GDP formation is  unquestionably smaller than in the 1970s 
(59 per cent), but still remains high (31 per cent) co mpared to the agricultural and industrial sectors. 
37. The following are the various ty pes of service supplied locally: 
- Telecommunications :  The telecommunications sector was the monopoly of a State-
owned enterprise, the Office National des Postes et Télécommunications  – ONPT 
(National Posts and Telecommunications Offi ce) for more than 30 years.  The Congo 
has a very low density of fixed telephone lin es, less than one line per 100 inhabitants. 
- Since 1995, opening up to competition has le d to the emergence of two new private 
mobile telephone operators, whic h serve large urban centres. 
- Despite an increase in the number of sub scribers between 1999 and 2000, the sector is 
still rundown and offers only lim ited and unbalanced coverage  of national territory.  
Furthermore, the technical telecommuni cations equipment is antiquated and 
inadequate (particularly in rural areas). 
- Transport  comprises: 
- Road transport, with a road network of some 17,289 km, of which 1,264 km, or 
7.3 per cent, are paved. 
- Rail transport, with the 512 km Congo-Océan Railway (CFCO) and the old 285 km 
line linking the Congo to Gabon. 
- River transport along the River Congo. 
- Maritime transport, which handles 85 per cen t of the Congo's exports and imports out 
of the city of Pointe-Noire. 
- Air transport, with four international ai rports (Brazzaville, Pointe-Noire, Impfondo 
and Dolisie) and 20 secondary airfields. Republic of the Congo WT/TPR/G/169/Rev.1 
 Page 9 
 
 
  - In general, the transport infrastructure is  very rundown because of the destruction 
caused by civil war and lack of maintenan ce.  This situation has jeopardized the 
Congo's previously recognized role as a country of transit. 
- Tourism :  The Government has promoted the establishment of hotels needed to 
receive business travellers to the detrimen t of leisure facilities for holidaymakers, 
even though there are important classified sites throughout the Congo, the most famous of which are the River Congo, the Nwabalé-ndoki reserve, the Diosso Gorges, 
etc.  All categories combined, there are 452 hotels, some of which are State-owned and currently undergoing privatization. 
- Electricity :  the Congo has vast hydroelectric potential, estimated at over 2,500 Mw, 
but only the Moukoukoulou (74 Mw) and Djoué  (15 Mw) hydroelectric facilities are 
in operation.  There are also some small stations generating 100 to 1,000 KVA in the 
departmental capitals.  Total installed cap acity is 94 Mw.  Given the scale of the 
needs, there is an undeniable shortage of electric power. 
- Water resources :  All urban communities have a dr inking water supply network that 
is more or less operational.  The tota l installed storage capacity is 26,050 m
3 whereas 
production is only 6,067 m3. 
- Of the estimated demand for 100 million m3 of water, only 36 million m3 is supplied 
to the population, corresponding to 36 per cent coverage.  The Société Nationale de 
Distribution d'Eau  – SNDE (National Water Supply Company), a State-owned 
enterprise, is the subject of a rehabilitation and privatization programme. 
- Financial services :  The breakdown of the State banking system in 1974 prompted 
the State to introduce reforms that have le d to the creation of four privately owned 
banks, all of them deposit banks. 
- As regards insurance, the unsatisfact ory performance of the only State-owned 
company ( Assurance et Réassurance du Congo  (Congolese Insurance and 
Reinsurance)) has led the Govern ment to liberalize the sector. 
(f) Social sector 
38. At the social level, the main feature is the deterioration in health and educational services, 
cultural and sports activities, as a result of  the numerous conflicts in the Congo. 
II. CURRENT TRADE POLICY 
39. The Congo has resolved to make the trade sector a genuine engine for growth and the 
cornerstone of its national economic and social development strategy. 
40. Every effort is being made to strengthen the business environment all over the country and to 
establish all the conditions required to boost enterpri ses, without which efforts to curb unemployment 
and alleviate poverty would be pointless. 
41. Various measures are being taken to that e nd at both national and international level. WT/TPR/G/169/Rev.1 Trade Policy Review 
Page 10 
 
 
II.1 ASPECTS OF DOMESTIC TRADE POLICY 
Trade liberalization 
 
- Effective opening up of trade activity to an y natural or legal person of Congolese or 
other nationality (pursuant to Law No. 19-2005 of 24 November 2005); 
- gradual phasing out of State involvement in the production and marketing of goods 
and services (activities formerly in the ha nds of government departments and State-
owned enterprises ); 
- abolition of monopolies;  only sugar and utilities such as water and electricity remain 
monopolies, pending the implementation of m easures to ensure better management of 
the impact of liberalization within these sectors. 
Competition 
 
42. Current legislation prohibits the formation of  cartels, abuse of dominant position and other 
impediments to fair competition.  Measures in this  regard are still not effective, however, in the 
absence of implementing regulations. 
Consumer price system 
 
43. The prices of all goods and services in the Republic of the Congo are subject to the free price 
system. 
44. However, there are exceptional regimes concerni ng certification and taxation in particular that 
apply to basic necessities, so  as to combat speculation. 
Trade control 
 
45. Trade control is exercised by applying regul ations and ensures compliance with the rules 
governing competition and the protectio n of consumer and State rights. 
Market supply system 
 
- Sources of supply:  Goods and services sold on the domestic market come from the 
following two sources:  (1) Imports of food products and capital goods in particular;  
(2) domestic production, comprising mainly foodstuffs (local (unprocessed) products) 
and some handicrafts products. 
- Sales facilities:  Current legislation author izes various sales facilities (chain stores, 
shops, stalls or display retail trading). 
- Street vending, sales exhibitions at fairs, auctions, etc. are also authorized. 
- Forms of sale:  In order to promote the selling of products throughout the domestic 
market and access to all categories of persons, wholesale and retail trade and the 
corresponding trading margins are also provided for. Republic of the Congo WT/TPR/G/169/Rev.1 
 Page 11 
 
 
  - Trade standards:  A project with a view to  the adoption of standards for instruments 
used for sales purposes (weights and measures)  and quality certification of products to 
be placed on the market is currently under consideration. 
Protection of consumer rights 
 46. The measures currently provided for under Law No. 6-94 of 1 June 1994 are restricted to 
matters relating to price advertising and market transparency.  The work now in progress should 
extend these measures to include aspects concerning th e quality of products released for consumption. 
Organization of fairs and exhibitions 
 47. The Government regularly organizes fairs and ot her specialized events to promote business 
within the Congo and the exchange of information with foreign partners. 
Support for retail trading 
 
48. Multifaceted projects for small traders in worki ng-class districts are being implemented to set 
up storage facilities, improve sales areas a nd strengthen supply financing capability.  
49. Special emphasis is placed on the shift from the informal to the structured sector, so as to 
make better provision for the operators involved. 
Easement of formalities to set up commercial establishments 
 
50. The creation of the Centre de formalités des entreprises  – CFE (business formalities centre) in 
1995 has helped improve the investment climate in the Congo. 
51. Today, except for the formalities associated with th e preparation of articles of incorporation, a 
company can be set up in 72 hours. 
Trade promotion 
 
52. Measures to facilitate financing for small-  and medium-sized enterprises are being 
implemented in conjunction with the ba nks and other microfinance facilities. 
53. Training and information is also being provide d for small and medium-sized enterprises and 
craftsmen. 
54. This mainly takes the form of seminars and other training activities run by government 
services and the consular chambers. 
55. Such activities are designed to provide economi c operators with information on domestic 
trade legislation and foreign market data. 
Protection of local industry 
 
56. In order to boost local industry and expand th e supply capacity of local economic operators, 
the Government is adopting measures to establish quotas for imports of certain products, mainly those 
in competition with domestic production. WT/TPR/G/169/Rev.1 Trade Policy Review 
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57. Baking flour is one example.  An ongoing study is considering similar measures for paints, 
bathroom tissue and foam mattresses. 
Institutional framework 
 
58. In order to ensure effectiveness of the above measures, the Government has reorganized the 
institutional framework as follows: 
- Restructuring of the Congo's central administration:  Two principal bodies have been 
established;  one is responsible for in itiating and implementing trade and supply 
policy, while the other is in charge of monitoring commercial activities and of fraud 
control. 
- Restructuring of support services: 
(1) Reorientation of the mandate of the Centre congolais du commerce extérieur  
– CCCE (Congolese foreign trade centre) with a view to effectively promoting Congolese products abroad.  The CCCE is also responsible for disseminating trade information among Congolese operators. 
(2) Restructuring of the chambers of commerce began in 1995 and is now 
nearing completion.  Four consular chambers (in Brazzaville, Pointe-Noire, Dolisie and Ouesso) are already in operation;  the setting up of consular delegations in the other departments is under way. 
II.2 ASPECTS OF FOREIGN TRADE POLICY 
Bilateral trade agreements 
 
59. In recent years, the Congo has reviewed all th e trade agreements signed with its various 
foreign partners in the light of developments  in its domestic economic policy and external 
commitments linked to the WTO Agreements and subregional integration (CAEMC and ECCAS). 
60. These agreements are essentially aimed at st rengthening trade cooperation between the Congo 
and various other countries. 
Multilateral trade agreements 
 
61. These are the WTO Agreements to which th e Congo is party.  The Congo still faces a 
considerable number of difficulties – as indeed ot her developing countries do – in implementing these 
instruments.  The difficulties include, inter alia , insufficient technical assistance;  short deadlines for 
States to implement the Agreements;  inadequacy of  the special and differential treatment provisions;  
the developed countries' refusal to abolish agricultura l subsidies;  stringency of  liberalization measures 
concerning trade in services;  and in adequacy of tariff reduction measures. 
Negotiations concerning the ACP-EU Economic Partnership Agreements (EPA) 
 
62. Pursuant to the Cotonou Agreement, the Congo is  taking part in the negotiations concerning 
EPAs within the CAEMC, plus São Tome and Prin cipe and the Democratic Republic of the Congo 
(DRC). Republic of the Congo WT/TPR/G/169/Rev.1 
 Page 13 
 
 
  63. The aim of these negotiations is to conclude an  agreement designed to govern trade between 
the European Union and the Central A frican subregion as of the year 2008. 
Implementation of the United States African Growth and Opportunity Act (AGOA) 
 64. The Congo has been eligible under the AGOA si nce 2001 and has consequently received the 
visa necessary for its products to  access the United States market. 
65. Regulatory provisions in keeping with the procedure required by the United States 
Government were adopted recently so as to pe rmit exports from the Congo to the United States. 
Sugar market in the CAEMC subregion 
 66. Along with the other CAEMC countries, the Congo has passed an act establishing the 
CAEMC's sugar common market organization ( OCM sucre-CEMAC ). 
67. This organization is part of th e move to establish a CAEMC common market in due course.  It 
is responsible for regulating the marketing of suga r produced by subregional industries within the 
CAEMC system. 
The Congo's sugar quotas 
 
68. The Congolese Government has quotas for sugar exports to the European and US markets. 
69. The quotas amount to some 13,000 tonnes for the European market and a little over 
7,000 tonnes for the US market. 
70. The exports in question are duty free. 
Subregional trade 
 
71. As regards trade with other countries forming part of the CAEMC Customs Union, the Congo 
enjoys duty-free and out-of-quota treatment. 
72. It must, however, comply with the rules of origin criteria in force. 
73. A free trade agreement with the E CCAS has been in effect since July 2004.  It provides for a 
preferential tariff involving the gradual phasing out of customs duties in the member States, according 
to the following timetable: 
- 50 per cent in 2004; 
- 70 per cent in 2005; 
- 90 per cent in 2006; 
- 100 per cent in 2007. WT/TPR/G/169/Rev.1 Trade Policy Review 
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Import requirements for goods 
 
(1) Import regimes  
The Congo uses the import licensing regime fo r a dozen basic necessities (essentially 
foodstuffs) and the import declaration regime for all other goods. 
The import licensing regime is due to be abolished under the new foreign trade law 
currently being enacted. 
(2) Import taxes  
In addition to port charges and other administrative costs, all goods imported into the 
Republic of the Congo are subject to the following import taxes: 
- Customs duty (common external tariff (CET)):  The amount varies according 
to the nature of the goods; 
- VAT:  18 per cent of the customs value; 
- community integration tax (CAEMC):  1 per cent 
- community integration contribution (ECCAS):  0.4 per cent; 
- statistical tax:  0.2 per cent; 
- OHADA levy:  0.5 per cent; 
- automation fee:  2 per cent. 
Tax/customs regulations in effect in th e CAEMC subregion provide for exemption 
from the CET and VAT in certain cases. 
(3) Other import requirements  
Specific import control provisions are applie d by different government departments, 
particularly as regards sanitary and phytosan itary control, preshipment inspection, etc. 
Export requirements for goods 
 
74. Congolese legislation remains highly flexible as regards goods export requirements.  This 
policy is designed to promote the presence of Congolese products in foreign markets. 
75. However, timber, petroleum and other mining products are subject to specific taxes. 
The table below provides a few data con cerning Congolese foreign trade between 1998 and 
2002, in billions of CFAF. Republic of the Congo WT/TPR/G/169/Rev.1 
 Page 15 
 
 
  (US$1 = approximately CFAF 508) 
 1998 1999 2000 2001 2002 
Imports 354 256 369 463 479 
Exports 831 792 1,537 964 1,820 
Source : Congolese Customs. 
76. Congolese trade rose sharply (by 61 per cent) in  2002, owing in particular to a twofold 
increase in exports resulting from the rise in crude oil prices. 
77. The Congo exports mainly petroleum (93 per cent) and timber (5 per cent). 
78. The leading import item is electrical and mech anical machinery (27 per cent), followed by 
food products (20 per cent). 
79. France has traditionally been the lead supplier, followed by Italy, the United States and the 
Netherlands. 
80. Chinese Taipei is the main recipient of Congolese petroleum, followed by North Korea and 
the United States. 
81. There is little trade with the rest of Africa. 
III. ONGOING REFORMS 
82. As part of the general reorganization of th e institutional framework, the Government has 
undertaken the following domestic reforms: 
Trade 
 
83. In the trade sector, reforms consisted of the following: 
- Enactment of Law No. 19-2005 of 24 November 2005 regulating the exercise of the 
profession of trader in the Republic of the Congo. 
84. The main provisions of this Law include: 
- Reaffirmation of the freedom accorded to any Congolese or foreign natural or legal 
person to engage in business; 
- introduction of some restrictions, for example, concerning import and wholesale 
distribution activities, henceforth reserved fo r legal persons engaged in trade;  and 
- ban on import and export trade by transit companies. 
85. The law on imports and exports has been revi sed to take account of WTO principles and 
Agreements, the economic reforms undertaken w ithin the CAEMC, and recent domestic economic 
policy decisions. WT/TPR/G/169/Rev.1 Trade Policy Review 
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86. The purpose is also to protect the domestic economy from external phenomena such as 
smuggling, counterfeiting, dumping and any other fact ors of risk to the health and safety of the 
Congolese population.  Such concerns have led to the signing of a contract for preshipment inspection 
and verification of imports by a well-known private company. 
87. The new law on imports, exports and re-exports in the Republic of the Congo provides for the 
following two trade regimes: 
- The import declaration regime, which estab lishes the principle of freedom to import 
goods and services without any quantitative restrictions;  and 
- the special import authorization regime, which, where applicable, concerns certain 
goods and services subject to temporary restrictions. 
88. The import licensing regime provided for in earlier legislation has been abolished. 
89. The other reforms relating to trade and business come under laws still being prepared, such as 
the laws regulating competition and consumer protection. 
90. In order to facilitate trade in the Congo, furthe r reforms have been carried out in the following 
sectors: 
Investment 
 
- As part of its investment promotion efforts and in accordance with the CAEMC's 
investment charter, the Government is pursuing the implementation of Law 
No. 6-2003 of 18 January 2003 establis hing the national investment code. 
- This law reaffirms the freedom to engage  in business, guarantees the protection of 
investments and the repatriation of profits made by foreign companies.  It also 
prohibits any discriminatory practices that hamper free competition. 
- The process of privatizing State-owned ente rprises and strengthening the institutional 
framework for business is going ahead steadily. 
Agriculture 
 
- Because of its economic importance and considerable potential, agriculture is deemed 
a key sector for revitalizing growth and reducing poverty. 
The Government intends to develop the sector along three lines: - Diversification and processing of domestic products; 
- renewal of a special mechanism to finance rural activities;  and 
- promotion of income-generating non-agricultural activities, including 
handicrafts and ecotourism. Republic of the Congo WT/TPR/G/169/Rev.1 
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  Forestry 
 
- The Government wishes to ensure sustainabl e management of forest ecosystems that 
contribute to development, together with conservation of biological diversity and 
stability of the country's environment as a whole. 
- This policy is set out in Law No. 16/ 2000 of 20 November 2000 containing the 
Republic of the Congo's Forest Code. 
- The following initiatives and prog rammes have been undertaken: 
- Sustainable management of forestry concessions and promotion of forest 
certification; 
- development and diversification of th e forestry industry, through a legal 
requirement to process 85 per cent of logging output; 
- grouping of small-scale forestry permits in order to establish large-scale 
forestry concessions; 
- liberalization of the timber trade and increased control through the creation of 
a unit responsible for controlling forestry products for export; 
- development of the country's national parks; - fauna protection and management in forestry concessions; - revised approach to support for the promotion of private and village 
plantations, underpinned by the establishment of semi-industrial and 
departmental nurseries. 
- In addition, the Government has taken steps to enhance receipts from forestry 
operations by applying a felling tax, a tax on the export of forestry products, a surface 
area tax, a deforestation tax and an export surcharge. 
- A programme for the preparation of forest ry management plans was introduced in 
2000. 
Industry 
 
- With support from the United Nations Industrial Development Organization 
(UNIDO), the Government has undertaken the following reforms: 
1. Preparation of a draft law on the organization of industrial activity  
The object of this draft law is to ensure safety and compliance with industrial 
standards and to prevent any risk r esulting from the installation and operation 
of industrial activities. 
It aims primarily to: WT/TPR/G/169/Rev.1 Trade Policy Review 
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- Harmonize a number of concepts used  for better management of industrial 
information; 
- clarify the tasks of the State and the role of industrial operators; 
- organize the industrial environm ent and industrial activity; 
- define actions in support of industrial development. 
2. Formulation of a strategic industrial development plan  
The strategic industrial development plan, adopted on 21 August 2006 as a 
result of countrywide consultation, was initiated as part of the implementation 
of the poverty reduction strategy com ponent involving consolidation of the 
macroeconomic framework and re vitalization of key sectors. 
It proposes an approach designed to induce harmonious and sustainable 
socioeconomic development at both sectora l and spatial levels of the national 
economy, based on increased industrial performance, the creation of wealth 
and value added, employment genera tion, satisfaction of the population's 
needs, and poverty reduction. 
3. Formulation of an industrial development matrix  
The industrial development matrix currently being formulated is the 
operational component of the country's  industrial policy and will serve to 
implement the strategic industrial development plan. 
It is geared towards integrated devel opment of industrial activities all over the 
Congo, through the consolidation of existing potential around a cluster of 
industrial growth activities and the expa nsion of new activities on the basis of 
each location's comparative advantages. 
4. Cost analysis of production factors and regular publication of a note on 
the Congo's industrial climate  
Analysis of the situation of the indu strial sector in terms of information 
resources and services in the technical, technological, economic, financial, 
trade, legal and other fields reveals not only the partitioning, dispersion and limits of such resources and services, but also pressing and growing demand for this kind of information and for value added services on the part of users, particularly investors, government services and private management, and 
development partners. 
A study of the costs of production factors and regular publication of a note on 
the Congo's industrial climate have been  initiated in order to remedy the 
weaknesses and shortcomings that have  long plagued the industrial sector and 
to provide those engaged in economic development in general and industrial 
development in particular with the decision-making and management tools 
needed for this sector. Republic of the Congo WT/TPR/G/169/Rev.1 
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  Petroleum 
 
The reforms carried out in this sector concern the following, inter alia : 
- Division of downstream petroleum activities into eight branches:  refining, storage 
and transport, storage at sea, fuelling of ai rcraft, lubricants, gas, distribution, and 
imports; 
- creation of the Société nationale des pétroles du Congo  – SNPC (Congolese National 
Oil Company), responsible for marketing the Congolese State's share of crude oil under production-sharing agreements;  and  
- exclusion of CORAF from the privatization programme so that it can be restructured 
and reorganized beforehand. 
Water and electricity 
 
 The Société Nationale d'Electricité  – SNE (National Electricity Company) and the SNDE are 
among the first group of companies to be privatized. 
The tendering procedure initiated in July 2001 with a view to granting concessions for these 
companies was unsuccessful because of the amount  of the investment required to upgrade 
their industrial infrastructures.  Consequent ly, two essential measures were taken, namely: 
- Preparation of the programme for the re habilitation of the water and electricity 
infrastructure with the World Bank;  and 
- launching of the emergency programme for th e reorganization of the management of 
the SNE and the SNDE. 
Transport 
 
Reforms in this area concern: 
- The CFCO, for which the tendering procedur e for the granting of a concession was 
declared unsuccessful on 27 August 2004.  The continuation of the process depends 
on the outcome of the option adopted by the Government, namely, to negotiate directly with the last two candidates that made bids; 
- the river ports of the former Agence Transcongolaise de Communication  – ATC 
(Transcongolese Communications Agency), which are being appropriately 
restructured; 
- the autonomous maritime port of Pointe-Noire, which has been the subject of a 
priority financing programme; 
- the autonomous river port of Brazzaville, which is still seeking funding for its 
rehabilitation programme;  and 
- river transport, for which the only bid, by the private company NBTL, is under 
consideration. WT/TPR/G/169/Rev.1 Trade Policy Review 
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Posts and telecommunications 
 
The telecommunications sector has been liberalized, but the Société des postes et d'épargne 
du Congo  – SOPECO (Congolese Posts and Savings Compan y) is still a State-owned entity and will 
be restructured, with the help of the World Bank. 
IV. OUTLOOK 
91. An overall evaluation of economic activity shows th at considerable efforts are still required to 
create the conditions necessary for genuine development of the Congolese economy. 
92. This will involve, inter alia : 
- Strengthening domestic fiscal policy thro ugh effective measures to combat tax 
evasion; 
- strengthening trade legislation through the adoption of measures pertaining to 
competition policy and consumer protection; 
- adjusting investment policy according to n eeds associated with consolidation of the 
domestic economic environment; 
- re-adjusting employment policy; 
- reconciling environmental policy w ith trade-related constraints; 
- adopting trade facilitation measures; 
- improving trade information disseminati on networks throughout the country; 
- promoting diversification of the economy in order to break the Congo's dependency 
on petroleum. 
93. A programme to provide institutional and ope rational support for the development of non-
traditional exports is being implemented with the help of the International Trade Centre (ITC). 
94. The programme comprises the following three modules: 
(1) Preparation of export strategies; 
(2) building of institutional infrastructure for foreign trade;  and 
(3) formulation of pilot programmes for export-led poverty reduction. 
95. The United Nations Development Programme (U NDP) has undertaken to organize a round 
table with the donors due to support the C ongo in implementing this important project. 
V. CONCLUSION 
96. The Congo's trade policy as outlined above offe rs genuine prospects for development. Republic of the Congo WT/TPR/G/169/Rev.1 
 Page 21 
 
 
  97. To achieve this goal, the Government needs to continue with the reforms already under way, 
taking into consideration the comments of  its bilateral and multilateral partners. 
98. The reforms to be pursued involve: 
- Supporting the creation and development of private enterprises; 
- promoting the Congolese economy's integration into the subregional and international 
economic system; 
- developing and modernizing the agricultural sector by building the necessary 
infrastructure; 
- creating a genuine domestic industry based on the development of local resources; 
- developing the Congo's tourism assets thro ugh ecotourism in reserves and natural 
parks, cruise ship tourism on the River Congo and its tributaries, adventure tourism throughout the Congo and beach tourism on the Atlantic coast; 
- creating free zones capable of attracting foreign investors; 
- implementing the national land-use management  strategy adopted by the Government, 
which will provide viable infrastructure for the entire country; 
- in-depth reform of the State through good governance, restoration of the State's 
authority and transparency in the management of public affairs; 
- introduction of administrative decentralization; 
- continued reorganization a nd diversification of the financial system;  and 
- development of trade and economic c ooperation with other countries around the 
world. 
99. As regards the negotiations relating to th e WTO Agreements, the Congo will pursue its 
cooperation with the other members of the G90 in or der to exert an influence on the final decisions 
regarding the Doha Agenda. 
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