Note: Advance written questions by WTO Members and the replies provided by the Central African 
Republic are reproduced in document WT/TPR/M/1 83/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm  WORLD TRADE  
ORGANIZATION  WT/TPR/M/183 
26 July 2007 
 
 (07-3203) 
Trade Policy Review Body 
11 and 13 June 2007  
 
 
 
TRADE POLICY REVIEW 
 
CENTRAL AFRICAN REPUBLIC 
 
Minutes of Meeting  
 
Chairperson:  HE Mr Vesa Himanen (Finland) 
 
 
Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 2  
II. OPENING STATEMENT BY THE REPRESENTATIVE OF THE CENTRAL 
AFRICAN REPUBLIC 3  
III. STATEMENT BY THE DISCUSSANT 5  
IV. STATEMENTS BY MEMBERS 6  
V. REPLIES BY THE REPRESENTATIVE OF THE CENTRAL AFRICAN REPUBLIC AND ADDITIONAL COMMENTS 9
 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 12  
 WT/TPR/M/183 
Page 2  
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. At the opening of the meeting of the first Trade Policy Review of the Central African 
Republic, held on 11 and 13 June 2007, the Ch airperson (HE Mr Vesa Himanen) welcomed the 
delegation led by HE Minister Rosalie Koudougue ret-Mologbama, and the discussant, Mr Mathias 
Bogaert of the Belgian Mission, who as usual woul d speak in his personal capacity.  In accordance 
with the established procedures, the discussant had made  available, in advance, an outline of the main 
issues he intended to raise (document WT/TPR/D/159). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by the Central African Republic was contained in 
document WT/TPR/G/183 and that of the WTO Secr etariat in WT/TPR/S/183.  Questions by the 
delegations of Argentina, the European Union,  Japan, Canada and the United States had been 
forwarded to the delegation of the Central African Republic.  The questions raised before the meeting 
and the replies given by the delegation of the Cent ral African Republic were reproduced in document 
WT/TPR/M/183/Add.1. 
3. The Chairperson had noted the measures taken to  rebuild the Central African economy, which 
had been seriously affected by a succession of military  and political crises.  The efforts of the Central 
African Republic to address macroeconomic imbalances, improve governance and undertake 
structural reforms were supported by the interna tional community.  Finalization of the Poverty 
Reduction Strategy Paper (PRSP) would allow acce ss to multilateral debt reduction initiatives, but 
donor support was still necessary in the medium te rm.  The Central African Republic was a least 
developed, land-locked country with very high trans port costs, and faced major challenges if it was to 
improve its economic performa nce and reduce poverty.   
4. The Central African Republic, a member of the Central African Economic and Monetary 
Community (CEMAC), applied the CEMAC's common external tariff (CET), whose simple average 
rate was 18.2 per cent.  The Central African Republic  also applied other duties and charges on trade, 
minimum values on imports of foodstuffs and other staples, and imposed quotas on imports of coffee 
and sugar.  Domestic charges were  not applied uniformly to imported and local products.  Duties and 
charges levied at the customs border accounted fo r approximately two thirds of State revenue 
(excluding grants).  Bindings cove red some 62 per cent of tariff lines.  Some problems were being 
experienced in the supply of electricity, water and services such as banking services, transport and 
fixed telecommunications.   
5. The Chairperson noted that the absence of a mi ssion in Geneva hampered the Central African 
Republic's capacity to participate fully in the mu ltilateral trading system (MTS).  The review of the 
Central African Republic's trade policy should enable a response to be formulated to its trade-related 
technical assistance needs.  WT/TPR/M/183 
 Page 3 
 
 
  II. OPENING STATEMENT BY THE REPR ESENTATIVE OF THE CENTRAL 
AFRICAN REPUBLIC 
6. HE Minister Rosalie Koudougueret-Mologbama  noted the benefits the Central African 
Republic hoped to gain from the review of its trade policy, which would help it to adhere more closely 
to the principles of the WTO;  to make its trade regime more transparent, more credible and more 
predictable;  to create a more favourable environm ent which would help to attract the capital needed 
to exploit the country's enormous potential;  and to  enable the international community to help the 
country in its economic reconstruction efforts by  opening up its market to products and services and 
by responding favourably to its requests for technical assistance. 
7. The economy of the Central African Republic, a vast, land-locked country in the heart of 
Africa, was based principally on agriculture a nd had enormous, albeit under-exploited, potential, 
namely very rich and varied flora and fauna;  dense forest cover containing different ecosystems 
covering vast virgin areas;  and dense and varied mi ning potential.  Numerous constraints were still 
preventing those sectors from being exploited, bu t to overcome them the Central African Republic 
had introduced a number of reforms aimed at crea ting an environment conducive to the development 
of economic activity through the withdrawal of the State from the production sector and the 
promotion of the private sector.  The military and political crises of the past two decades had put a 
strain on the country's industrial and trade fabr ic, undermining all of the efforts undertaken by 
successive governments.  Economic and social indicat ors had deteriorated.  However, the Constitution 
of 27 December 2004 had paved the way for the retu rn to constitutional order and the Government 
which had emerged as a result had developed and implemented a general policy programme whose 
main objectives included macroeconomic and financ ial stabilization, structural reform, and the 
rebuilding of basic infrastructure.  At the same time, the Government aimed in the short term to obtain 
access to the Enhanced Heavily I ndebted Poor Countries Initiative. 
8. In the area of taxation, given the cash flow pr oblems, the fiscal burden remained heavy.  
However, in connection with the preparation of the Poverty Reduction Strategy Paper (PRSP), the 
Government intended to reorient its various trad e policy instruments on the basis of the WTO Trade 
Policy Review and the Integrated Framework Dia gnostic Trade Integration Study (DTIS).  Several 
Ministers, including the Minister of Trade, we re involved.  The policy relied on the national 
legislative and regulatory framework, CEMAC, th e Cotonou Agreement, the other regional and 
bilateral agreements, and WTO rules. 
9. The National Investment Charter aimed at the development and processing of local raw 
materials, the creation of value added and employment, the exporta tion of finished products, and 
advocated freedom of investment, non-discriminat ion and total freedom in the management and 
transferability of profits.  There were plans for ins titutional, human and material capacity building in 
order to improve the monitoring of approved enterpri ses and take better account of trade aspects in the 
Charter when it came up for review.  The Governme nt had undertaken reforms in certain key sectors 
of the economy with a view to establishing transp arent and predictable rules that safeguarded the 
rights of investors while maximizing State revenue.  The reforms placed special emphasis on the processing and exportation of pr oducts in those sectors. 
10. The Central African Republic was participati ng in the multilateral trade negotiations on the 
Doha Development Agenda and supported all of the measures that  sought to favour market access for 
developing countries, in particular the LDCs.  These measures included the elimination of the 
agricultural subsidies granted by the developed count ries;  access to the markets of industrialized 
countries for agricultural and non-agricultural pr oducts from developing countries;  access to 
medicines for HIV/Aids through incentives offered by the developed countries to their institutions and 
enterprises to promote and encourage the transfer of technology to the LDCs in accordance with 
Article 66.2 of the TRIPS Agreement;  low prices for the importation of medicines to ease the public WT/TPR/M/183 
Page 4  
 
  health problems experienced by the Central African Republic;  improvement of special and 
differential treatment;  implementation of an enhanc ed Integrated Framework as one of the elements 
in the promotion of aid for trade;  trade facilitati on;  and the requirement for shared commitments on 
the part of developed countries.   
11. The Central African Republic had trade-related t echnical assistance needs in various areas, in 
particular the implementation of tr ade-related agreements, participati on in the regular activities of the 
WTO, capacity-building for participation in trade ne gotiations and the formulation of trade policy;  
the elimination of supply side constraints;  and th e integration of trade and development policies.  The 
country was determined to implement its commitmen ts as a Member of the WTO.  The review had 
brought into focus the strengths and weaknesses of its  trade policy.  The Central African Republic was 
determined that its trade policy should succeed, a nd was relying on the multifaceted assistance of all 
of the donors and development partners to enable  it to meet the development challenges it faced. 
   WT/TPR/M/183 
 Page 5 
 
 
  III. STATEMENT BY THE DISCUSSANT 
12. The discussant  noted first that the end of the military and political crisis had allowed the 
Central African Republic to return  to economic growth, supported by  the macroeconomic stabilization 
programme and structural reforms carried out in cooperation with the IMF and the World Bank.  He 
had noted the initiatives taken to improve the business environment, in particular the recent adoption 
of the National Investment Charter.  As the PRSP w as in the course of being finalized, he wished to 
know how the country's trading priorities would be  integrated into the document and whether the 
private sector would be involved in that exercise.  The absence of a Central African Republic Mission 
at the WTO was a barrier to its involvement in the WTO's regular activities;  he wished to know 
whether it was planned to open a mission.  As a la nd-locked country, the Central African Republic 
would derive particular benefit from participating in negotiations on trade facilitation.  As far as 
regional integration was concerned, the absence of a single entry point system was a genuine barrier 
to the free movement of goods within the CEMAC, a nd he wished to know whether its members were 
planning remedial action.  Intra-regional trade wa s low and he asked whether the Central African 
Republic was contemplating launching any trading strategies aimed at the regional market.  He 
wished to know whether the Central African Repub lic was in a position to use systems of trading 
preferences such as the European Unio n's "Everything but Arms" initiative. 
13. On the subject of trade policy instruments he had noted that customs procedures were lengthy 
and complex and that simplification of them w ould be welcome.  The application of the WTO 
Agreement on Customs Valuation posed some di fficulties and importers were required to pay 
preshipment expenses through the agency BIVAC, a f actor which increased the cost of the imports 
concerned.  The level of tariff protection under the CEMAC's CET was relatively high and the rates 
applied went as high as 30 per cent.  The tariff stru cture, which showed mixed escalation, was posing 
problems for the development of manufacturing industr y.  The rate applied to bicycles exceeded the 
bound rate.  The application of other duties and ch arges posed a particular problem in relation to 
products for which those duties and charges were bound at zero per cent.  National treatment was not 
complied with in the application of VAT and ther e were quantitative import restrictions on coffee and 
sugar.  He asked whether the Government intende d to eliminate those practices, which were WTO-
inconsistent.  Other concerns were the absence of a framework for standardization, and the updating 
of the government procurement and copyright regimes.   
14. With regard to sectoral policies, he aske d why the country had placed emphasis on the 
promotion of cash crops, relegating food products to second position.  Regarding timber, one of the 
country's principal export products, he encouraged  expansion of areas covered by sustainable 
management criteria and wished to know the effect of the policy aimed at slowing the export of logs and promoting the processing of timber on the spot.  The mining sector was undergoing rapid expansion, supported by th e new Mining Code;  he asked what meas ures had been taken to restrict the 
illegal export of diamonds, which was the subject of strong fiscal pressure.  The country's inadequate 
electricity supply was a barrier to investment wh ich the government was intending to overcome by 
constructing ten small hydro plants .  Manufacturing industry was almost non-existent, principally 
because of supply-side constraints;  he encouraged  the Government to overcome these by making full 
use of the findings of the current trade policy re view.  The State was involved in the supply of 
numerous services, and further commitments under the GATS could increase the country's 
attractiveness to investors and contribute to development.   
15. To conclude, the discussant emphasized the Centra l African Republic's considerable resources 
and its Government's intention to  undertake reform.  Nonetheless, the challenges facing the country 
were enormous and increased, sustained assistance from the international community was crucial to support sustainable development in the Central African Republic. WT/TPR/M/183 
Page 6  
 
  IV. STATEMENTS BY MEMBERS 
16. The representative of the European Union
 noted the importance of maintaining political 
stability to ensure economic recovery in the Cent ral African Republic.  However, there were also 
supply-side constraints.  Her delegation wished to  know what measures were advocated in the PRSP 
to rationalize trade and investment policies and improve governance.  Aid could not replace trade and 
investment as the engine for growth.  Regional inte gration appeared a promising way forward.  She  
recalled the close ties between the European Union and the Central African Republic, whose 
economic operators were encouraged to make better use of the preferences granted under the 
"Everything but Arms" (EBA) initiative.  Those ti es would be strengthened by the conclusion of the 
Economic Partnership Agreement (EPA).  She sought  clarification as to the measures envisaged to 
remedy the double taxation of goods and the faili ngs of customs, and to implement the WTO 
Agreement on Customs Valuation.  Her delegation w as also interested in the operation of the single 
window for transit in Douala.  Other areas of specifi c concern were the establishment of a regulatory 
framework for standardization, competition (especi ally the framework established by the CEMAC for 
that purpose) and the protection of industrial property. 
17. The representative of Japan  referred to the resumption of aid from his country to the Central 
African Republic and its enhancem ent in March 2007.  Japan was al so proposing free access to its 
market for LDCs, covering 98 per cent of its tari ff lines.  His delegation wished to know what 
measures were advocated by the Central African  Republic to address illegal logging and enforce 
compliance with the regulatory fra mework for the management of its national resources.  Japan 
encouraged the integration of the findings of th e Central African Republic's TPR into its PRSP.   
18. The representative of Canada  emphasized the breadth of interests of the economic operators 
from her country in exploiting the mineral resour ces of the Central African Republic, something 
which would develop further as the country and its neighbours became increasingly secure.  The new 
mining framework made mining a key aspect of th e country's economic recovery.  Her delegation was 
also concerned with issues such as governance, secu rity, the mining sector, improving the framework 
for foreign investment, protection of intellectual property and improvement in customs procedures. 
19. The representative of the United States  noted that his country acknowledged the special 
circumstances of the Central African Republic as a land-locked LDC.  US concerns related particularly to the measures to be taken to facilita te trade and reduce the a dditional costs associated 
with the fact that the country was land-locked.  Th e United States was also in terested in measures to 
promote good governance and the rule of law and to  reduce the barriers to trade and investment, 
especially those associated w ith State-owned enterprises. 
20. The representative of Benin
 welcomed the beginnings of an economic upturn in the Central 
African Republic upon its emergence from the milita ry and political crisis which had shaken the 
country.  Benin was of the view that significant reforms had taken place through the adoption of the 
National Investment Charter in 2001, the new Mini ng Code in 2004 and the launching of the process 
to privatize SOCATEL in the fixed telecommunicati ons sub-sector, the reorganization of customs and 
the advanced stage reached in the process of draf ting the PRSP.  The international community was 
duty bound to support those reforms by granting the Central African Republic the technical and financial assistance necessary to achieve the objectives set by that country.   
21. The representative of Nigeria
 noted the close trading links that had developed between his 
country and the Central African Republic since the signing of their bilateral agreement of 1999.  The 
two countries were also engaged in the liberalization of maritime services at the Maritime 
Organization for West and Central Africa (MOW CA).  The volume of trade between African 
countries was low, but regional integration offered a promising means of increasing that trade and thereby contributing to the continent's economic development.  The Central African Republic's  WT/TPR/M/183 
 Page 7 
 
 
  eligibility for the United States Africa Growth and Op portunity Act (AGOA) had to be re-established.  
He recognized that the absence of a mission in Gene va was a barrier to the Central African Republic's 
participation in the WTO. 
22. The representative of the Pe ople's Republic of China  emphasized the rapid increase in the 
volume of bilateral trade between his country a nd the Central African Republic, which had reached 
US$10.3 million in 2006, four times the 2001 level.  His country proposed to extend the coverage of 
products imported from LDCs which enjoyed free acces s to its market.  The lifting of supply-side 
constraints in the Central African Republic would be facilitated by his country's action in the areas of 
direct investment, technical assistance, construction of infrastructures and debt reduction. 
23. The representative of Chad  welcomed the efforts made by the Central African Republic to 
implement the WTO agreements to promote trade and development and combat poverty.  They had 
produced encouraging results, in particular the ec onomic upturn of 2006.  He noted the close trading 
links between his country and the Central Africa n Republic within the CEMAC.  He urged the 
international community to support the effo rts made by the Central African Republic. 
24. The representative of the Separate Customs Te rritory of Taiwan, Penghu, Kinmen and Matsu  
emphasized the potential benefits to the Central Af rican Republic of enhanced internal security and 
the dismantling of the remaining monopolies in basi c telecommunications services, water, electricity 
and some transport services.  His country wished to  increase the volume of bilateral trade with the 
Central African Republic, which had averaged  only US$800,000 over the period 2001-2006.   
25. The representative of Cameroon  noted the close trading links between his country and the 
Central African Republic as member s of the CEMAC and also because of the importance of the trade 
corridor between Douala, in Cameroon, and Bangui.  The renewed political stability of recent years 
had made it possible to deepen reforms in many sect ors.  The continuation of those reforms despite 
the enormous economic and infrastructure-related constraints on the country remained the real 
challenge for the Central African Government.  He  therefore wished to know what measures were 
planned by the Government to improve regional tr ade relations and what support measures on the part 
of the international community would help bolst er the liberalization under way and truly set the 
country's development in motion. 
26. The representative of Mali  noted that his country, which was also land-locked, shared many 
of the Central African Republic's concerns.  The integration of trade into the PRSP was desirable 
because trade was a powerful potential lever to pr omote optimum and dynamic exploitation of the 
country's enormous potential, particularly in agri culture, mining and forestry.  However, the extreme 
weakness of its infrastructures was discouraging inv estment and repairing them  should be a priority 
for the international community.  Without such ai d, it would be difficult for the Central African 
Republic to achieve its development objectives. 
27. The representative of India  noted the importance of agriculture in the Central African 
economy;  agriculture accounted for about half of GDP.  India proposed to offer technical assistance 
in that sector for the training of Central African staff in India and to send a mission to the Central 
African Republic to assess its needs. 
28. The representative of Côte d'Ivoire  pointed out that South-South cooperation could help the 
Central African Republic to cope with some of th e challenges it faced in the fields of education, 
electricity, water, energy, services and customs. 
29. The representative of Colombia  emphasized the importance of the Central African Republic's 
resources in the areas of agricultu re and tourism;  the country c ould exploit them despite its land-WT/TPR/M/183 
Page 8  
 
  locked status.  He recalled the African proverb that although the road ahead was not clear, it was 
important to remember the road already travelled. 
30. The representative of Brazil
 pointed out that the competitiv eness of goods produced in the 
Central African Republic was inhibited by the poor condition of the country's infrastructures.  Where 
cotton was concerned, the Central African Republic  enjoyed free access to developed markets but had 
to compete with subsidized cotton. 
31. The representative of the Republic of the Congo  noted the close trading links between his 
country and the Central African Republic as member s of the CEMAC.  His country would derive 
great benefit from the economic upturn observed in 2006 and from the intention to reconstruct and 
rebuild the Central African Republic. 
32. The representative of Madagascar  noted the positive results of the reforms undertaken by the 
Central African Republic and encouraged their c ontinuation so as to establish a better climate for 
foreign direct investment.   
33. The representative of the Democratic Republic of the Congo  noted the close ties between the 
populations of his country and the Central African  Republic as neighbouring countries.  His country 
supported the emergence of the Central African Repub lic from military and political crisis and urged 
the development partners to come to its aid. 
   WT/TPR/M/183 
 Page 9 
 
 
  V. REPLIES BY THE REPRESENTATIVE OF THE CENTRAL AFRICAN REPUBLIC 
AND ADDITIONAL COMMENTS 
34. After expressing her thanks, the represe ntative of the Central African Republic  replied to the 
questions raised by the Members. 
(i) Economic environment 
 
35. The many military and political crises experi enced by the Central African Republic had 
seriously damaged its socio-economic  environment, but the return of political stability meant that the 
macroeconomic and structural reforms necessary to  relaunch the country's economy could be carried 
out.  The reforms relied on:  the consolidati on of peace and strengthening of security;  good 
governance;  implementation of forward-looking stud ies on development issues and sectoral strategies 
in keeping with the poverty reduction programme;  th e supply of statistical data on a regular basis;  
improving the business environment with a view, inter alia , to strengthening the private sector;  
improving the legal and regulatory framework for the private sector , the creation of a permanent 
framework for consultations to foster dialogue betw een the State and the private sector and the easing 
of procedures for creating enterprises;  an industr ial development policy, the preparation of an 
investors' guide, the development of international industrial cooperation, the strengthening of local 
production and processing capacity;  the establishment of a standards and quality control system;  
fiscal consolidation;  the reform of the tax and customs administrations;  sectoral reforms 
(agricultural, forestry, mining, tourism sectors, etc. );  and continuation of the privatization programme 
launched in 1996. 
36. With the support of the international community , her country had undertaken to draw up its 
PRSP using a participative approach based on th e Millennium Development Goals (MDG).  Her 
Government was aware of the importance of trade in  the PRSP, which her Ministry had been actively 
involved in drawing up.  The third pillar of the PRSP,  namely the "recovery and diversification of the 
economy", took into account the development of  the private sector, improving the business 
environment and the findings of the Diagnostic  Trade Integration Study (DTIS) under way. 
37. As a Member of the WTO, her country was duty bound to implement the WTO agreements 
and to participate in the Doha Development Agenda .  However, her country's participation in the 
MTS came up against a number of constraints.  National capacities needed to be strengthened, 
particularly in the following areas:  notifications;  harmonization of its nati onal laws and regulations 
with WTO principles and rules;  the strengthening of human and institutional capacities in the trade 
sphere;  and the formulation of policies to enha nce the benefits and minimize the potential costs 
associated with implementation of the Agreements.  Trade-related technical assistance needs were 
also evident in sectors of production such as tourism, agriculture and transport. 
38. As a member of the CEMAC, the Central Afri can Republic was involve d in EPA negotiations 
with the European Union.  Major constraints were  holding up the development of trade within the 
CEMAC because of the considerable delay in th e effective implementation of its reforms (double 
taxation, the issue of Community origin, failure  to observe the intra-Community compensation 
mechanism and the infringement of pro-CET multila teral commitments).  Use of the preferences 
awarded to LDCs by various WTO Members was hindered by technical barriers to trade, the 
application of sanitary and phytosanitary measures and lack of supervision of procedures.  With 
respect to the United States AGOA Programme, her c ountry had ceased to be on the list of eligible 
African States as of 1 March 2003. WT/TPR/M/183 
Page 10  
 
  (ii) Trade policies 
 
39. To facilitate and simplify customs procedures a single window had been set up in Douala and 
others were in the course of being established.   The window brought together all the authorities 
involved in the customs clearance process for goods sent to her country.  With the support of 
UNCTAD, computerized processing of declara tions was made possible through ASYCUDA++.  
However, her country would encounter some difficulties in implementing the WTO Agreement on Customs Valuation.  In order to deal with the problems associated with under-valuation of imported 
goods, the consequence of which was considerable ec onomic loss for the public finances, her country 
was forced to apply benchmark values but hoped to fully implement the Agreement on Customs 
Valuation within a reasonable time-scale.  Her count ry had also established pre-shipment inspection, a 
task for which BIVAC was responsible, for impor ts of goods and exports of timber and coffee. 
40. The Central African Republic applied the CE MAC's CET, but tariff bindings at the WTO 
were established by each of its Members individually.  Her country intended to make an application to 
the CEMAC Commission to harmonize the bound rates a pplied to bicycles.  As a member of various 
subregional organizations, her count ry applied other duties and charges on imports, the objective of 
which was to provide funding for those organizations .  In principle, VAT was supposed to be applied 
to all products, whether local or imported, but local  products were produced and sold by operators in 
the informal economy, which made collection of the tax difficult.  The Government nonetheless intended to harmonize the application of excise duty at 10 per cent on non-alcoholic beverages.  Tax 
and customs exemptions were granted under the Inv estment Charter, as were other exemptions under 
specific sectoral regimes (tourism, mining and forestry operations). 
41. In 2003 the Central African Republic had adopt ed a protective measure to restrict the 
importation of sugar for a five-year period and allow its fledgling sugar industry to develop.  For 
social reasons and to contain inflation, price-m onitoring measures applied to 19 categories of mass-
consumption and staple products.  Those products  were subject to an advance price-approval 
procedure prior to their being placed on the market .  Her country was experiencing some difficulties 
in implementing technical rules at national level, but intended to refer to  the international rules 
established for that purpose in  accordance with its WTO commitments.  The Government 
Procurement Code being drawn up would ensure transparency in the procedures for the award, 
performance and monitoring of government procuremen t contracts;  foreign suppliers were free to 
respond to invitations to tender made by the Central African Republic.  The Revised Bangui 
Agreement, which her country had ratified, cont ained provisions on the protection of intellectual 
property rights, and the CEMAC Customs Code au thorized the seizure of counterfeit products. 
(iii) Sectoral policies 
 
42. The Central African Republic had decided to support a revival in cash crops such as coffee 
and cotton in order to increase peasant farmers' in comes and because of the spin-off effects on food 
crops.  Her Government intended to resolve the issue of arrears owed to cotton farmers;  increase the capacities of support and research structures;  and make inputs and equipment available for maize, 
peanuts and sesame.  Her Government had taken measu res to ensure the sustainable management of 
its forestry resources;  these included measures to  prevent illegal logging and prohibit the award of 
forestry permits in fragile ecosystems, as well as the preshipment inspection programme entrusted to 
BIVAC.  The review of the Central African Forest ry Code of 1990 would allo w better account to be 
taken of environmental concerns and good forestry  management.  With a view to sustainable 
management, 80 per cent of the productive forest area in the south-west of the country was subject to 
a "management and operating permit" (PEA) which had regard to the pr incipal criteria or indicators of 
the African Timber Organization (ATO) and the Inte rnational Tropical Timber Organization (ITTO).  
The requirement to process 80 per cent of logs  should make for more intensive processing of 
secondary timbers as well as increasing value added.    WT/TPR/M/183 
 Page 11 
 
 
  43. To support investment in mining operations, a promising area, the Central African Republic 
had adopted its new Mining Code in 2004.  Mining  rights were awarded following the examination of 
a case file by a committee with responsibility for conser vation in the mining sector rather than on the 
haphazard basis used in the past .  One incentive offered under the new Code was exemption from 
taxes on prospecting equipment imported by a mining company at the prospecting stage.  The entry 
into force of the Code had sparked a revival in ne w foreign investors' interest and prospecting had 
produced positive results for gold and uranium with the strong possibility of mining commencing by the year 2009.  The gold reserves in the areas prospect ed were estimated at over 1.4 million ounces.   
44. Various military and political events had caused e normous damage to the fledgling and fragile 
industrial fabric and resulted in the near-disappear ance of industrial units in the cotton, tobacco, 
textiles, chemicals and agrifood sectors.  That difficulty was compounded by the high costs of factors 
of production such as inputs, almost all of which we re imported subject to fairly high customs duties, 
to which supply-side constraints and access to fundi ng had to be added.  As regards the supply of 
services, her Government intended to define sect oral policy, the regulatory framework and the 
approval of supply tariffs in accordance with  the commitments made under the GATS or by 
independent liberalization.  As regards electricity , the implementation of sectoral policy, as defined 
through a legislative and regulatory framework, was monitored by the Government, which also approved service charges.  Her country, as a me mber of the Central African Power Pool ( Pool 
énergétique de l'Afrique centrale - PEAC), was committed to a partnership with the private sector for 
the marketing of electricity.  Plans for small hydro-electric dams (Kembé, Boali and Palambo Falls) offered investment opportunities to increase elec tricity production in the country.  In the 
telecommunications sector, only fixed telephony c ontinued to be run by a State-owned company 
(SOCATEL);  mobile telephony was fully liberalized .  Banking services were the responsibility of 
COBAC (Banking Commission of Central Africa) a nd BEAC (Bank of Central African States) and 
microcredit was being developed with the support of the United Nations Capital Development Fund 
(UNCDF) and the United Nations Developm ent Programme (UNDP).  The 2001 Regulatory 
Framework for Tourism defined "tourism" and "tourist" as well as giving definitions for 
establishments providing accommodation and catering services and other bodies in the travel sector, such as tour operators, and travel and tourism agencies and offices. WT/TPR/M/183 
Page 12  
 
  VI. CONCLUDING REMARKS BY THE CHAIRPERSON  
45. This first Trade Policy Review of the Cent ral African Republic has fostered a better 
understanding of the challenges it faces in integra ting the multilateral trading system.  Our discussions 
benefited from the engagement of the delegati on of the Central African Republic, led by Her 
Excellency Mrs Rosalie Koudougueret-Mologbama, Mi nister of Trade, Industry and Small and 
Medium-Sized Enterprises, the excellent contributio ns of the discussant, Mr Mathias Bogaert, and 
interventions by Members.  
46. Members noted the economic recovery that ha d occurred in 2006, although the post-conflict 
Human Development Indicators of the Central A frican Republic remained low and socio-political 
stability remained a concern.  Measures to improve the business environment, in particular to promote 
governance, intellectual property protection and transparency in government procurement, would help 
attract investment.  Trade policy formulation could take greater account of private sector concerns. 
Members were interested in the commercial rela tions of the Central African Republic within the 
Central African Economic and Monetary Community, as well as the status of its negotiations with the 
European Communities on an Economic Partnership Agreement and the use of preferences under non-
reciprocal agreements.  They emphasized the signifi cance of transport costs as a barrier to trade for 
the land-locked Central African Republic.  
47. Members enquired about the technical assistan ce needs of the Central African Republic. 
Members encouraged the computerization of cu stoms procedures, the elimination of the double-
taxation of imports when transiting through neighb ouring countries, the elimination of minimum 
import values and quantitative restrictions on sugar and coffee imports, and the full implementation of 
the WTO Agreement on Customs Valuation.  They noted that the fees for pre-shipment inspection 
paid by importers further increased the cost of impor ts already subject to relatively high tariffs.  The 
Central African Republic also imposed "other du ties and taxes" on all imports, including those for 
which these were bound at zero;  the tariff on bicy cles exceeded the bound level.  Concerns were 
expressed about departures from national treatment in the application of value-added and excise taxes.  
48. Members encouraged the Central African Repub lic to improve its multilateral commitments 
on services, so far limited to tourism, and to liberalize telecommunication services, including by 
privatizing incumbent SOCATEL.  Such liberalizati on, together with increased production of cash 
crops and forest products, and the opportunities u nder the new mining regime, should help sustain 
growth and reduce poverty.  In the leading export sect ors of mining and forestry, trade could be linked 
to sustainable development.  Members also encourag ed reform of the power sector.  Other issues of 
interest to Members included the establishment of  a mission to the WTO by the Central African 
Republic;  notifications;  and sta ndards and technical regulations.  
49. Members appreciated the responses provided by the delegation of the Central African 
Republic.  
50. In conclusion, the Central African Republic is engaged upon a programme of reforms that 
could benefit from fuller implementation of the WT O Agreements and improvement of its multilateral 
commitments on goods and services.  This would help to attract the foreign direct investment needed 
to rebuild the economy.  Members encouraged the Central African Republic to integrate the findings 
of this TPR exercise and of its DTIS into its P overty Reduction Strategy Paper.  I urge both the WTO 
Membership and the Secretariat to be receptive to its assistance needs. 
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