RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/S/233 
10 August 2010  
 
(10-4152) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
THE GAMBIA 
 
 
  
This report, prepared for the second Trade Policy Review of The Gambia, has been drawn up by the WTO Secretariat on its own responsibility.  The Secretariat 
has, as required by the Agreement establishing the Trade Policy Review 
Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from The Gambia on its trade policies and practices.  
Any technical questions arising from this report may be addressed to 
Mr. Peter Tulloch (tel: 022/739 5497) and Mr. Usman Ali Khilji (tel: 022/739 6936).  Document WT/TPR/G/233 contains the policy statement submitted by 
The Gambia. 
 
 
 
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 Review Body on The Gambia. The Gambia WT/TPR/S/233 
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 CONTENTS 
    Page 
SUMMARY   vii 
(1) E CONOMIC ENVIRONMENT  vii 
(2) T RADE AND INVESTMENT REGIMES  vii 
(3) T RADE POLICY INSTRUMENTS  viii 
(4) S ECTORAL POLICIES  ix 
(5) G ENERAL OBSERVATIONS  xi 
I. ECONOMIC ENVIRONMENT 1  
(1) MAIN FEATURES OF THE ECONOMY  1  
(2) MACROECONOMIC POLICIES  4  
(3) BALANCE OF PAYMENTS  4  
(4) DEVELOPMENTS IN TRADE  5  
(i) Composition of trade 6  
(ii) Direction of trade 6  
(5) FOREIGN DIRECT INVESTMENT  9  
II. TRADE AND INVESTMENT POLICY FRAMEWORK 10 
(1) I NSTITUTIONAL AND LEGAL FRAMEWORK  10 
(i) General 10 
(ii) Laws relating to trade and investment 11 
(2) T RADE POLICY FORMULATION AND IMPLEMENTATION  16 
(3) P ARTICIPATION IN THE WORLD TRADE ORGANIZATION AND OTHER MULTILATERAL 
BODIES   20 
(4) P REFERENTIAL TRADE AGREEMENTS AND ARRANGEMENTS  21 
(i) Regional agreements 21 
(ii) Bilateral agreements and arrangements 22 
(iii) Non-reciprocal pref erential arrangements 22 
(5) I NVESTMENT AGREEMENTS AND ARRANGEMENTS  24 
III. TRADE POLICIES AND PRACTICES BY MEASURE 25 
(1) M EASURES DIRECTLY AFFECTING IMPORTS  25 
(i) Customs procedures and documentation 25 
(ii) Customs valuation 25 
(iii) Rules of origin 26 (iv) Tariffs 27 
(v) Other charges affecting imports 32 
(vi) Contingency measures 32 (vii) Import prohibitions, licensing, and restrictions 33 
(viii) Technical regulations and standards 34 
(ix) Sanitary and phytosanitary measures 36 
(2) M
EASURES DIRECTLY AFFECTING EXPORTS  38 
(i) Customs procedures and documentation 38 WT/TPR/S/233 Trade Policy Review 
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    Page 
(ii) Export duties 39 
(iii) Prohibitions, restrictions, and licensing 39 
(iv) Fiscal measures and official support 39 
(v) Finance, insurance, and guarantees 40 
(vi) Promotion and marketing assistance 40 
(3) M EASURES AFFECTING PRODUCTION AND TRADE  40 
(i) Incentives 40 
(ii) State enterprises and privatization 41 
(iii) Competition policy and price controls 42 (iv) Intellectual property 44 
IV. TRADE POLICIES BY SECTOR 46 
(1) A
GRICULTURE  46 
(i) Introduction 46 
(ii) Plans for agricultural development 46 
(iii) Patterns of imports and exports 47 (iv) Import policy 48 
(v) Promotion of agricultural development and exports 49 
(vi) Specific products 49 
(2) F
ISHERIES  53 
(i) Status of the sector:  resources, production, and exports 53 (ii) Industrial fishing sector 54 
(iii) Artisanal fishing sector 54 
(iv) Trade policy for fisheries 55 (v) International agreements by The Gambia on fisheries 55 
(3) E
XTRACTIVE INDUSTRIES  56 
(4) M ANUFACTURING  57 
(5) S ERVICES  57 
(i) WTO bindings 57 
(ii) Financial services 58 (iii) Telecommunications and postal services 61 
(iv) Transport 62 
(v) Tourism 65 
V. AID FOR TRADE 67 
(1) O
VERVIEW  67 
(2) M AINSTREAMING TRADE INTO THE NATIONAL DEVELOPMENT FRAMEWORK  67 
(i) Mainstreaming at the policy level 67 
(ii) Enhanced Integrated Framework 68 
(iii) Mainstreaming at the government-donor partnership level 69 
(iv) Aid for trade needs 69 
(v) Trade-related technical assistance needs 71 
(3) A ID FOR TRADE SUPPORT TO THE GAMBIA  72 
REFERENCES   75 
APPENDIX TABLES   79 The Gambia WT/TPR/S/233 
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 CHARTS 
    P a g e  
I. ECONOMIC ENVIRONMENT 
I.1 Composition of merchandise trade, 2003 and 2008 7 
I.2 Direction of merchandise trade, 2003 and 2008 8 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Breakdown of applied MFN tariff rates, 2010 28 
III.2 Tariff escalation by ISIC 2-digit industry, 2010 30 
TABLES 
I. ECONOMIC ENVIRONMENT 
I.1  Selected macroecono mic indicators, 2003-09 1 
I.2 Basic economic and soci al indicators, 2003-09 2 
I.3 Balance of payments, 2003-09 5 
II. TRADE AND INVESTMENT POLICY FRAMEWORK 
II.1 List of ministries, as at June 2010 10 
II.2 Main trade-related laws and regulations, 2010 11 II.3 Notifications by, or on behalf of, The Gambia to the WTO since 2004, as at March 2010 20 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 Structure of MFN tariffs, 2007 and 2010 27 
III.2 Summary analysis of MFN tariff, 2010 29 
III.3 Roadmap for establishment of the Gambian Bureau of Standards, 2010 34 III.4 Membership of GNEC, 2010 36 
III.5 National Nutrition Agency and related bodies, including ministerial responsibilities, 2010 37 
III.6 Main intellectual property legislation, 2010 44 
IV. TRADE POLICIES BY SECTOR 
IV.1 Main food product imports, 2007-09 48 
IV.2 Major agricultural exports,  including re-exports, 2007 48 
IV.3 Banks and similar financial institutions, June 2010 58 
IV.4 Banjul Port, cargo throughput, 2003-09 63 
IV.5 Charges and dues at Banjul Port, 2009/10 64 IV.6 Passenger and cargo traffic through Banjul International Airport, 2003-08 65 
IV.7 Tourism indicators, 2004-09 66 
V. AID FOR TRADE V.1 Aid for Trade support, 2002-08 72 WT/TPR/S/233 Trade Policy Review 
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 APPENDIX TABLES 
    P a g e  
I. ECONOMIC ENVIRONMENT 
AI.1 Structure of imports, 2003-08 81 
AI.2 Structure of exports, 2003-08 82 
AI.3 Origin of imports, 2003-08 83 
AI.4 Destination of exports, 2003-08 84 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
AIII.1 Applied MFN tariff averages by HS2, 2010 85 
AIII.2 Rates of excise tax, 2010 89 
IV. TRADE POLICIES BY SECTOR 
AIV.1 Gambian agriculture tariff items with rates below 20%, 2010 90 
AIV.2 Applied MFN tariffs, by ISIC Rev.2 category, 2010 93 
 The Gambia WT/TPR/S/233 
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 SUMMARY 
(1) ECONOMIC ENVIRONMENT  
1. The Gambia is a small, least 
developed economy, with a very narrow 
economic base.  The external sector is heavily 
dependent on re-expor ts, tourism, and 
remittances from overseas.  Import and export procedures are relatively simple and efficient compared with many other developing 
countries.  The first Trade Policy Review of 
The Gambia was held in 2004. 
2. In the past six years, real GDP growth 
averaged nearly 6%, driven mainly by tourism-related services, communications, and construction.  Affected by the global economic 
crisis, real GDP decelerated to 4.6% growth in 
2009 as tourist arrivals and remittances declined.  These falls were partly offset by increased agricultural production.  GDP growth is projected to pick up slightly in 2010 
to 5%. 
3. The Gambia's fiscal balance has 
become less dependent on external taxes during the period;  trade-related taxes fell from 40% of Government revenue in 2003 to 24% in 2009, as other indirect taxes, such as sales 
tax, assumed greater importance. 
4. Inflation peaked at 7% in 
February 2009, but declined to 2.6% in December, rising to around 4% in April 2010 as the Central Bank eased its previously tight 
monetary stance.  The exchange rate is a 
managed float against the U.S. dollar. 
5. Between 2003 and 2009, The 
Gambia's competitive advantage was eroded by ECOWAS tariff harmonization, increased 
relative efficiency of other regional ports, and 
real effective exchange rate appreciation.  These factors impacted both formal and informal trade, with merchandise trade falling 
from over 70% of GDP in 2003 to under 50% in 2009. 6. With a growing trade imbalance, 
stemming from higher oil prices and the collapse of groundnut exports, and declines in tourist arrivals and remittances, the current 
account deficit rose from 5% of GDP in 2003 
to over 17% in 2009.  The capital and financial account remains in surplus, helped by an HIPC debt write-off in 2007.  At end 2009, The Gambia's foreign exchange reserves covered 
more than six months of imports. 
(2) T
RADE AND INVESTMENT REGIMES  
7. "The Gambia Incorporated:  Vision 
2020", adopted in 1996, remains the Government's overall guiding development 
policy document.  It calls for the 
transformation of The Gambia into "a dynamic 
middle income country" by 2020. 
8. The Ministry for Trade, Regional 
Integration and Employment (MOTIE) has overall responsibility for trade and competition 
policies, and takes the lead role in trade 
negotiations in collaboration with the Ministry of Foreign Affairs.  Tariffs are set by the Ministry of Finance and administered by the Gambia Revenue Authority.  A large number of other ministries and agencies, in 
coordination with NGOs and the private 
sector, are also involved in trade-related policy formulation through the National Committee on Trade.  At present, The Gambia does not have a mission in Geneva, but MOTIE keeps 
close touch, directly and through the Gambian 
Embassy in Brussels, with developments in the WTO and other trade-related agencies. 
9. A Member of the WTO since 
October 1996, The Gambia applies at least 
MFN treatment to all trading partners.  The 
Gambia's WTO goods schedule is contained in Schedule CX and its services schedule in document GATS/SC/112.  The Gambia is neither a signatory nor an observer to any of the WTO's plurilateral agreements.  The 
Gambia has made notifications to the WTO on 
export subsidies and domestic support in agriculture;  import licensing procedures under the Medicines Act;  and its Food Safety and WT/TPR/S/233 Trade Policy Review 
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 Quality Bill, published in 2010.  It has also 
supplied its most up-to-date tariff schedule and Customs legislation for this Review.  It has yet to notify state trading enterprises and recent 
changes in intellectual property legislation. 
10. The Gambia is a member of 
ECOWAS, whose Common External Tariff and Trade Liberalization Scheme it has adopted, and of the West African Monetary 
Zone. 
11. The Gambia is a member of the ACP 
Group of States.  It benefits from preferential duty-free access to the EU under the "Everything but Arms" scheme for LDCs, and, as a member of ECOWAS, is involved in 
ongoing negotiations with the EU for the 
establishment of an Economic Partnership Agreement (EPA).  It also benefits from duty-free access to the United States under AGOA, although no exports have so far been 
recorded.  India and Korea extend duty-free 
access to The Gambia under the GSTP. 
12. Policy on foreign direct investment is 
governed by the Gambia Investment and Export Promotion (GIEPA) Act of 2010, which replaces earlier legislation from 2001.  
The Gambia is open to foreign direct 
investment from all sources.  The Government may hold all shares in "strategic" industries and, in practice, a government-held company is the sole importer of oil products;  similarly, 
conditions are applied to investments in 
mining, quarrying, and petroleum extraction.  Under the Act, substantial duty and tax incentives are extended to FDI of US$250,000 or over, under Special Investment Certificates, 
and to export-oriented production in export 
processing zones. 
(3) T
RADE POLICY INSTRUMENTS  
13. All tax administration, including 
Customs, is in the hands of the Gambia Revenue Authority (GRA), under the Ministry 
of Finance.  Since 2006, The Gambia has 
applied the ECOWAS common external tariff, with four ad valorem  bands:  zero rated, 5%, 10%, and 20%, corresponding to basic social 
goods;  raw materials, capital equipment, and specific inputs;  intermediate goods;  and final consumer goods.  In addition to the tariff, The 
Gambia applies a 1.55% processing fee and a 
0.5% ECOWAS levy on all imports. 
14. Adoption of the ECOWAS tariff has 
brought about significant changes in the tariff compared with 2007.  Overall, the arithmetic 
mean rate has fallen from 19% to 14%;  the 
number of duty-free lines has increased substantially, from under 1% to 15% of the total;  the share of rates exceeding 15% has fallen from 92% to 57% of the total;  and the spread of the tariff, as measured by the 
standard deviation from the mean, has more 
than doubled.  There appears to be no clear pattern of tariff escalation. 
15. The Gambia, with other ECOWAS 
member states, is negotiating the introduction 
of a fifth tariff band, at 35%, based on 
harmonization of nationa l lists submitted by 
members, and of national exceptions to the ECOWAS common tariff.  These changes, if adopted, are likely to provide a sharper pattern of escalation, and hence higher effective than 
nominal protection, to goods classed as 
"consumer goods" and "economic development goods", while maintaining lower rates of duty on some basic foods. 
16. The Gambia's WTO bindings currently 
cover only agricultural goods, at rates ranging 
from 20% to 110%.  In practice, the ECOWAS tariff, once fully in force, will effectively define the real "bound" rates of duty for The Gambia, contained in an international legal 
commitment. 
17.  The new Customs and Excise Act, 
2010, incorporates the provisions of the WTO Customs Valuation Agreement, bringing The Gambia into line with other ECOWAS member states.  The Act also contains 
WTO-related provisions for anti-dumping and 
countervailing measures, based on reference prices, and for safeguards.  The GRA has The Gambia WT/TPR/S/233 
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 applied the ASYCUDA++ system of customs 
declaration management from mid-2010. 
18. There are various schedules of 
exemptions and remissions, including at 
Ministerial discretion;  in addition, goods 
imported for use in investment projects under SIC or for processing in EPZs are exempted from duty. 
19. Excise duties and excise taxes are 
levied on a number of goods;  excise duties at 
ad valorem  rates and excise taxes at specific 
rates.  Sales tax is generally applied at 15% on goods and services.  Temporary import duties are levied on onions and potatoes in the harvesting season.  Export duties are provided 
for in the Act, but are currently applied only to 
precious metal waste and scrap. 
20. The Gambia maintains no MFN rules 
of origin.  ECOWAS rules are used to identify good importable from other member states 
under the ECOWAS Trade Liberalization 
Scheme.  In May 2010, Gambian and Senegalese customs authorities agreed on a six-month trial project to ease transit procedures between the two countries. 
21. The Gambia maintains published lists 
of import and export prohibitions and 
conditional restrictions, but no specific import or export quotas.  It is a member of, and applies import prohibitions under, the Rotterdam and Stockholm conventions on 
pesticides and industrial chemicals, and on 
persistent organic pollutants. 
22. The Gambia is a member of ISO and 
an affiliate member of IEC, and maintains an active national Codex Committee.  A 
road-map has been developed for the creation 
of a Gambia Bureau of Standards, a national electrotechnical committee has been set up with state, private sector, and NGO participation, and The Gambia is increasingly applying IEC international standards, as well 
as recognizing imports of equipment certified 
in exporting countries.  The National Nutrition Agency and National Codex Sanitary and Phyto-Sanitary Committee are working to 
improve SPS conditions for food and plants, with assistance from FAO, UNIDO, and WHO.  All imported animal, plant, and food 
products must be correctly certified. 
23. State-owned monopolies control the 
port, civil aviation, water, and electricity, as well as fixed-line telecommunications and imports of petroleum products.  Petroleum 
prices were previously regulated, but are 
currently linked to world market prices.  The Public Utilities Regulatory Authority (PURA) regulates water and electricity prices and oversees conditions of competition among cellphone operators. 
(4) S
ECTORAL POLICIES  
24. Agriculture accounts for one quarter 
of GDP and employs three quarters of the workforce.  Most production is devoted to the domestic market, either for subsistence 
consumption, sales on local markets, or sales 
to the hotel trade;  groundnuts remain the main export crop, although cashews (partly as re-exports) and horticultural products are also traded. 
25. Duties on agricultural products are 
generally fixed at 20%, the highest level of 
duty in the ECOWAS tariff.  The simple average rate on Agriculture (WTO definition) is 16.5%.  All imports of animals, marine life, plants, their products, and processed foods of 
plant or animal origin, must be accompanied 
by appropriate import certificates issued in accordance with Codex Alimentarius quality control requirements.  Imports of cereals, pulses or legumes, including rice, require 
phytosanitary certificates issued by the 
national plant protection service of the country of origin, and fumigation certificates issued by the exporting company or an approved company. 
26. The Gambia has drawn up ambitious 
plans for agricultural development with FAO 
and IFAD assistance, including water, forestry and fisheries management, improvement of WT/TPR/S/233 Trade Policy Review 
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 food processing chains, development of 
livestock and horticulture , and expansion of 
regional and inter-regional trade.  The objective is to complete these plans by 2015. 
27. The Gambia continues to face severe 
difficulties in meeting export quality requirements for food-grade groundnuts.  Structural problems also persist in the domestic trading mechanism.  Recently, a 
Quality Assurance Framework for groundnuts 
has been proposed, which, if followed, could assist greatly in bringing the trade up to required SPS standards. 
28. Rice is a staple of the Gambian diet 
and a major import.  Improvement of domestic 
production and hence lower reliance on 
imports is a major element in Government plans, including through the New Rice for Africa (Nerica) scheme. 
29. Infrastructure, including road (both 
main and feeder) development, will play a 
major role in the revitalization of agriculture.  The Gambia has made great progress in improving its main road network and is working on an ambitious feeder road programme, with external assistance.  Less 
attention has so far been paid to 
redevelopment of river transport, which has been identified as vital to reviving groundnut trade. 
30. Fisheries are of major importance to 
the Gambian economy.  However, the value of 
exports by industrial fisheries is believed to be severely underestimated, as most such fish is caught and either transhipped at sea or landed in foreign countries.  A new deep-water 
fishing port for landing and processing 
industrially caught fish is due for completion by end 2010.  The artisanal subsector faces different issues, in that it struggles to meet quality requirements for export markets, particularly in the EU.  Recognizing this, the 
new Gambian fisheries policy emphasizes 
post-harvest quality control and the achievement of internationally acceptable standards on SPS and quality assurance. 31. None of The Gambia's tariffs on fish 
or fish products are bound in the WTO.  All tariffs, except for sardines, are set at 20%;  the simple average rate for the sector is 19.7%.  
The Gambia's tariff allows for duty exemption 
on fishing vessels, and appears to do so on other plant and equipment used in the industry, if provided in regula tions and approved by 
MOTIE, but not on refrigerated transport 
trucks, which could be of major assistance to 
the fishing sector. 
32. The authorities have introduced new 
fishery legislation and regulations governing gear, fish size, and net size, and introducing new surveillance provisions.  Assistance has 
been provided to the Gambian Navy in this 
regard through provision of new patrol vessels.  The bilateral fisheries agreement with Senegal gives mutual fishing rights with defined parameters and contains provisions for 
cooperation in research, surveillance, and 
training. 
33. Historically, The Gambia had no 
significant extractive industries;  however, since 2006, mineral sands have been exported to China.  The Mines and Quarries Act of 2005 
vests ownership of all mineral resources in the 
State.  Generally, tariffs on mineral products are set at either 5% or 10%.  Offshore oil exploration has been encouraged since 2004;  the Petroleum (Exploration and Production) 
Act established a new Ministry of Petroleum 
under Presidential control and declared the Gambia National Petroleum Corporation (GAMPETROL) as the sole importer of oil products. 
34. Manufacturing is limited to the 
domestic market.  Genera lly, consistently with 
the structure laid down by ECOWAS, fertilizers and pesticides, specialized machinery and equipment, industrial chemicals, and drugs and medicines bear 
among the lowest average rates of duty, while 
consumer goods bear the maximum rate of 20%.  However, the specialized schedules in The Gambia's domestic tariff allow for substantial tariff concessions and exceptions. The Gambia WT/TPR/S/233 
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 35. A recent study of the medium- and 
small-scale enterprise sector by MOTIE identified many legal, fiscal, and infrastructural constraints to the development 
of MSMEs and made proposals to encourage 
the development of industry.  However, without more effective regional integration, the small scale of the Gambian market will remain the most significant constraint. 
36. Finance, telecommunications, and 
tourism-related business form the principal service sectors.  The banking sector has expanded rapidly, with a recent influx of firms, particularly from Nigeria.  Minimum capital requirements for banks have been more 
than doubled, and are to be raised again in 
2010.  Despite the rapid banking expansion, lending rates have not come down significantly, nor does there seem to be a significant increase in lending to productive 
sectors of the economy.  Money-laundering 
legislation is in place and training assistance is being extended to the Central Bank to reinforce its capacity to deal with money laundering and similar offences. 
37. As in most other developing countries, 
mobile telephone use (a competitive market) 
has expanded rapidly in recent years, while fixed-line telecommunications (a State monopoly) have stagnated.  The cellphone market is open to foreign investment.  Internet 
use is growing rapidly and 3G facilities are 
developing.  Interconnection rates are supervised by PURA, which has also introduced a "truth in advertising" code for the industry. 
38. Tourism development in 2008/09 was 
affected by the international economic crisis, but is now believed to be recovering.  Although relatively few international airlines provide long-haul flights to Banjul, the serviceis improving, and many charter providers 
continue to serve the country, mainly from Europe.  Efforts are being made to expand the tourist season to the European summer and to 
improve the offer of "eco-tourism" and 
"responsible tourism" facilities 
(5) G
ENERAL OBSERVATIONS  
39. Since the previous review, the 
authorities have taken serious steps to 
modernize The Gambia's trade and investment 
regime.  A comprehensive Trade Policy Action Programme has been drafted and is in the process of adoption.  New or amended laws or plans have been introduced in many fields, including customs and excise;  
investment incentives;  intellectual property;  
standards/SPS;  food health;  competition;  agriculture;  fisheries;  banking;  telecommunications;  and tourism. 
40. These efforts have been encouraged 
and assisted by many international agencies, 
including via the Integrated Framework, where the Diagnostic Trade Integration Study, conducted in 2007, spurred many of the ongoing policy developments. 
41. A plethora of new legislation has been 
passed, not all of which is yet supported by 
implementing regulations, and which also requires constant contact with international organizations to ensure that it remains up-to-date.  The small administration's skilled 
human resources are necessarily limited, and 
consistency in policy formulation and implementation is handi capped by frequent 
reorganizations of ministries, ministers, and senior officials.  A challenge for The Gambia 
will be to fulfil effectively the demands of the 
increasingly complex international trading system, both at multilateral and at regional levels.