RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/187 
27 August 2007  
 
(07-3512) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
CAMEROON 
 
  
 
This report, prepared for the third Trad e Policy Review of Cameroon, has been 
drawn up by the WTO Secretariat on its own responsibility.  The Secretariat has, 
as required by the Agreement establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), sought clarification from Cameroon on its trade policies and 
practices. 
 
Any technical questions arising from this report may be addressed to 
Ms Ulla Kask (tel.: 022/839 5627) and Mr Jacques Degbelo (tel.: 022/739 5583). 
 
Document WT/TPR/G/187 contains the policy statement submitted by 
Cameroon. 
 
 
 
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 Cameroon. Cameroon WT/TPR/S/187 
 Page iii 
 
 
 
CONTENTS 
 
  Page 
SUMMARY OBSERVATIONS vii 
 
 (1) E CONOMIC ENVIRONMENT  vii 
 (2) T RADE AND INVESTMENT REGIMES  viii 
 (3) T RADE POLICY INSTRUMENTS  ix 
 (4) S ECTORAL POLICIES  x 
 (5) T RADE POLICY AND TRADING PARTNERS  xi 
I. ECONOMIC ENVIRONMENT 1 
 (1) M AIN FEATURES OF THE ECONOMY  1 
 (2) R ECENT ECONOMIC DEVELOPMENTS  4 
 (3) T RADE AND INVESTMENT PERFORMANCE  7 
 (i) Trade in goods and services 7  (ii) Direct investment 9 
 (4) O
UTLOOK  11 
II. TRADE AND INVESTMENT REGIMES 12 
 (1) O VERALL FRAMEWORK  12 
 (2) P OLICY OBJECTIVES  15 
 (3) T RADE AGREEMENTS AND ARRANGEMENTS  16 
 (i) World Trade Organization 16 
 (ii) Regional agreements 17 
(4) I NVESTMENT REGIME  22 
ANNEX II.1:  TRADE-RELATED TECHNICAL ASSISTANCE 26 
 (1) I MPLEMENTATION OF THE AGREEMENTS AND POLICY FORMULATION  26 
 (2) S UPPLY CONSTRAINTS  27 
 (3) I NTEGRATION OF TRADE INTO DEVELOPMENT STRATEGIES  28 
III. TRADE POLICIES AND PRACTICES BY MEASURE 29 
 (1) I NTRODUCTION  29 
 (2) M EASURES DIRECTLY AFFECTING IMPORTS  30 
 (i) Registration and preshipment inspection 30  (ii) Customs procedures 31 
 (iii) Customs levies 33 
 (iv) Rules of origin 42  (v) Import licensing, prohibitions, and other restrictions 42 
 (vi) Contingency measures 43 
 
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Page 
 
 (vii) Standards and technical requirements 44 
 (viii) Other measures 48 
 (3) M EASURES DIRECTLY AFFECTING EXPORTS  49 
 (i) Procedures 49 
 (ii) Export taxes 50 
 (iii) Minimum export prices 51  (iv) Export prohibitions, restrictions, and licensing 51 
 (v) Export subsidies, promotion and assistance 52 
 (vi) Industrial free-zone regime 52 
 (vii) Other provisions 54 
 (4) M
EASURES AFFECTING PRODUCTION AND TRADE  54 
 (i) State trading, State-owned enterprises and privatizations 54 
 (ii) Incentives 57 
 (iii) Competition policy and price regulation 57  (iv) Government procurement 60 
 (v) Intellectual property rights 63 
IV. TRADE POLICY AND PRACTICE BY SECTOR 68 
 (1) I
NTRODUCTION  68 
 (2) A GRICULTURE , LIVESTOCK , FISHERIES AND FORESTRY  68 
 (i) Overview 68  (ii) Agricultural policy 71 
 (iii) Policy by sector 72 
 (3) M
INING , ENERGY AND WATER  80 
 (i) Petroleum and gas products 80 
 (ii) Mining products 83 
 (iii) Electricity 84  (iv) Water 85 
 (4) M
ANUFACTURING SECTOR  85 
 (5) S ERVICES  89 
 (i) Overview 89 
 (ii) Transport 90  (iii) Tourism 96 
 (iv) Telecommunications 98 
 (v) Postal services 100  (vi) Financial services 102 
 (vii) Professional and business services 106 
 REFERENCES 111 
 
APPENDIX TABLES 117 Cameroon WT/TPR/S/187 
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CHARTS 
 
Page 
I. ECONOMIC ENVIRONMENT 
 I.1 Structure of trade in goods, 1995-2005 3 
I.2 Direction of trade in goods, 1995-2005 10 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
III.1 Tariff escalation, 2007 38 
 
IV. TRADE POLICY AND PRACTICE BY SECTOR  
IV.1 Indices of world wood, cocoa and coffee prices, 1993/2002 and 2001-2006 71 
IV.2 Average customs duties for the main ISIC Rev.2 groups, 2006 87 IV.3 Traffic in the Autonomous Port of Douala, 2001-2006 95 
 
TABLES  
 
I. ECONOMIC ENVIRONMENT 
 I.1 Cameroon in figures, 1995-2006 1 
I.2 Main economic and financial indicators, 1999/2001 and 2001-2006 4 
I.3 Balance of payments, 2000-2005 8  
II. TRADE AND INVESTMENT REGIMES 
 II.1 Principal trade- and investment-related le gislative text in force, June 2007  14 
II.2 General company taxation, 2007 25 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 III.1 Key components of government revenues, 2002-2006 34 
III.2 Structure of customs duties, 2007 36 
III.3 Summary analysis of MFN tariff, 2007 36 III.4 Some of the benefits provided under the Industrial Free Zone Regime (ZFI) 53 
III.5 Privatizations under way, May 2007 56 
III.6 Enterprises with public capital, July 2006 56 III.7 Status of Cameroon with regard to  certain intellectual property protection 
treaties administered by WIPO and UPOV, May 2007 63 
III.8 Subjects and terms of protection under the Bangui Agreement (1977) and 
its revision (1999) 64 
III.9 Fines and prison sentences under the Bangui Agreement (1977) and its revision (1999) 67 
 IV. TRADE POLICY AND PRACTICE BY SECTOR 
 
IV.1 Main agricultural products, 2000-2005 69 IV.2 Wood exports, 2001-2005 78 
IV.3 Taxes on tourist activities, 2003 96 
IV.4 Indicators of telecommunication services, 2000-2006 98 
IV.5  Leading banks and credit institutions, July 2007 102 
IV.6 Premiums issued and profitability by type of insurance, 2003-2005 105 
 
 
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APPENDIX TABLES 
 
Page 
 
I. ECONOMIC  ENVIRONMENT 
 
AI.1 Structure of exports, 1995-2005 119 
AI.2 Structure of imports, 1995-2005 120 AI.3 Destination of exports, 1995-2005 121 
AI.4 Origin of imports, 1995-2005 122 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 AIII.1 Semi-public corporations, July 2006 123 
 
IV. TRADE POLICY AND PRACTICE BY SECTOR  
AIV.1 Applied tariffs by ISIC Rev.2 category, 2007 125 
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SUMMARY OBSERVATIONS 
(1) ECONOMIC ENVIRONMENT  
1. From 2001 to 2006, Cameroon's 
economy experienced sustained growth, with 
an average annual growth rate of 3.6 per cent.  
This was higher than the population growth rate, thus providing the means to alleviate poverty.  Various structural reforms, including the liberalization of mobile telephone services 
and the privatization or putting out to 
concession of enterprises in sectors such as electricity, agribusiness, port services and rail transport, have contributed to this growth.  This performance has allowed Cameroon to become a middle-income country with a per 
capita gross domestic product (GDP) 
estimated at US$1,077 in 2006 (compared to US$621.5 in 2001).  In October 2005, a new agreement was signed under the Poverty Reduction and Growth Facility (PRGF) 
framework for the period 2005-2008.  The 
economic and social targets of the PRGF are consistent with the priorities of the Poverty Reduction Strategy Paper (PRSP) adopted in 2003. 
2. The globally restrictive monetary 
policy of the Bank of Central African States 
(BEAC) has made it possible to control inflation.  The resumption of growth in Cameroon in 2005 was, however, accompanied by a resurgence of inflationary 
pressures as a result of the automatic 
adjustment of the price of petroleum products at the pump.  Consequently, in 2006, inflation reached its highest level (5.4 per cent) during the period under review.  Public finances have 
benefited from the rise in oil prices, with fiscal 
revenue increasing from 17.7 per cent of GDP in 2001 to 19.2 per cent in 2006.  Nevertheless, public finances also face a number of structural problems, such as the dependence of income on oil revenues, even 
though the wells in operation are gradually 
being exhausted, or the narrowness of the tax base, which is mainly due to the size of the informal sector. Moreover, current expenditure accounts for a large proportion of budget outlays, with staff costs alone absorbing over 
one quarter of total budgetary expenditure. 
3. Measures taken to improve the 
transparency and management of the tax 
system, and governance finally made it possible for Cameroon to reach the completion point of the Heavily Indebted Poor Countries Initiative (HIPC) in April 2006, after having 
missed the 2004 deadline.  This should allow 
the country to reduce the net present value of its debt by 27 per cent.  Other creditors are also expected to write off slightly over CFAF 100 billion.  According to the forecast for 2006, the stock of the external debt should 
reach 32.4 per cent of the GDP and external 
debt servicing should fall from 6.7 per cent of total exports (of goods and services) in 2005 to 0.1 per cent in 2007.  Despite its legislative efforts, Cameroon still finds it difficult to 
attract foreign direct investment (FDI).  In 
2005, investment inflows were estimated at US$18 million, i.e. only 0.4 per cent of FDI in Central Africa. 
4. Cameroon's economy has a number of 
assets, including favourable conditions for 
agriculture, forestry resources, and petroleum.  
Services dominate the economy, contributing around 50 per cent of GDP, followed (in descending order) by agriculture, manufacturing and mining.  Agriculture 
(including fishing and forestry) plays a central 
role, employing just over 60 per cent of the labour force.  The manufacturing sector is largely based on local inputs, hence the low level of imported products and the relatively 
strong degree of sectoral integration.  The 
informal sector continues to be very important in Cameroon (accounting for around 50 per cent of GDP).  The strength of the informal sector and the relatively high level of sectoral integration partly explain the moderate 
average ratio of trade in goods and non-factor 
services to nominal GDP of around 44.3 per cent during the period 2001-2006. 
5. Petroleum exports have kept the trade 
balance in surplus; food products (particularly  
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cocoa) and timber occupy second and third 
place.  Nevertheless, with the exception of 2003, the current account balance has remained negative due to the deficit in the 
balance of services, of which Cameroon is 
traditionally a net importer.  The main destination for Cameroon's exports is the European Union (particularly Spain, Italy and France).  Imports, on the other hand, are much 
more diversified in product terms, even though 
petroleum, here again, is the market leader.  The principal sources of imports are the European Union (mainly France), Nigeria and China. Trade with other CEMAC members remains marginal (around 3.4 per cent of 
trade). These figures do not, however, take 
into account informal regional trade. 
(2) T
RADE AND INVESTMENT REGIMES  
6. The Ministry of Trade is responsible 
for formulating, implementing and monitoring 
Cameroon's trade policy.  To this end, it 
receives ad hoc opinions from the Chamber of Commerce, Industry and Mines, which acts as a liaison body with private business circles.  The Ministry of the Economy and Finance handles fiscal matters, including those relating 
to customs.  Investment-related matters are 
handled by various ministries, in particular the Ministry of Industry, Mines and Technological Development and the Ministry of the Economy and Finance. 
7. Cameroon is a founding Member of 
the WTO and participates in its ministerial meetings.  It gives at least most-favoured-nation (MFN) treatment to all its trading partners. It has not signed any of the 
plurilateral agreements negotiated within the 
WTO framework; it does, however, have observer status in the Committee on the Agreement on Government Procurement.  Under the WTO Dispute Settlement Mechanism, in December 2006, Cameroon 
requested to join the consultations relating to 
the dispute concerning the European Community's regime for the importation, sale and distribution of bananas from ACP countries. 8. Nevertheless, Cameroon's parti-
cipation in the multilateral trading system remains limited.  It has submitted only five WTO notifications since 2001.  The areas in 
which technical assistance is requested, apart 
from notifications, include the following: implementation of the WTO Agreements; customs valuation; sanitary and phytosanitary measures (SPS); harmonization of national 
laws and regulations with the WTO's 
principles and rules; formulation of policies to enhance the benefits and minimize the potential costs of implementing the Agreements; capacity-building with a view to participating in the WTO's regular activities 
and in trade negotiations; supply constraints; 
and integration of trade policies into development strategies.  It is vitally important to improve competitiveness and upgrade infrastructure (including electricity, roads, 
water resources, laboratories, and metrology 
instruments). 
9. Cameroon and its neighbours have a 
long common history of regional integration.  Cameroon is a member of the Central African Economic and Monetary Community 
(CEMAC), whose common currency is pegged 
to the euro.  Having adopted a common external tariff (CET) in 1993, CEMAC members are currently setting up a customs union.  The CEMAC and associated countries 
are negotiating an Economic Partnership 
Agreement (EPA) with the EU, which is scheduled to enter into force in January 2008.  The implementation of the CET adopted by the Economic Community of Central African 
States (ECCAS/CEEAC), an economic area 
larger than the CEMAC, but which includes the CEMAC, has not yet begun. 
10. A new Investment Charter was 
adopted in 2002 to define a more attractive regulatory framework for investment.  The 
Charter allows for a period of five years (from 
its enactment) for the adoption of sectoral codes and regulations on the operation of the institutions envisaged. According to the authorities, this period has been extended by  
 Cameroon WT/TPR/S/187 
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two years. During this period, the regimes 
already existing under the repealed legislation remain in place. 
(3) T
RADE POLICY INSTRUMENTS  
11. Cameroon generally applies CEMAC 
decisions with regard to customs.  Barring a few exceptions, its customs tariffs are based on the CEMAC CET;  all the rates are ad 
valorem .  The simple average tariff is 19.1 per 
cent.  Agricultural products (WTO definition) 
are subject to higher taxation (simple average of 22.6 per cent) than non-agricultural products (simple average of 18.6 per cent).  Overall, the tariff shows mixed escalation, which does not encourage the setting up of 
certain industries or favour the 
competitiveness of certain locally manufactured products on international markets.  Moreover, the strong positive escalation of duties in a number of industries 
conceals a relatively high level of actual 
protection, which does not encourage the international competitiveness of the local products concerned.  Cameroon grants duty-free entry for products from other CEMAC countries, provided that the rules of origin are 
respected. 
12. During the Uruguay Round, 
Cameroon bound its tariffs at a ceiling rate of 80 per cent for all agricultural products and 50 per cent for three non-agricultural products.  
Consequently, only 14.0 per cent of its tariff 
lines are bound, with an average bound rate of 79.9 per cent.  Other duties and taxes are bound at 80, 150 or 230 per cent according to product category and are applied at 
substantially lower rates – 1 per cent for the 
community integration tax (TCI) and 0.05 per cent for the OHADA tax, both of which are applied to imports from outside the CEMAC, and 0.45 per cent for the computer fee, which is levied on imports irrespective of origin.  The 
average level of protection at the border (all 
duties and taxes) is therefore 20.6 per cent.  During the period under review, Cameroon did not make use of any contingency measures. 13. Domestic taxes, such as VAT 
(17.5 per cent) and excise duties, are levied on imports and local products.  A communal tax, the "additional centime", equivalent to 10 per 
cent of VAT, is also levied, bringing the 
overall VAT plus tax rate  to 19.25 per cent.  
However, unlike local goods, the taxable base for VAT on imports also includes excise duties, which poses a problem of consistency 
in respect of the principle of national 
treatment.  Excise duties are 25 per cent for the following (imported and local) products:  beverages (including certain non-alcoholic drinks), tobacco products, foie gras, caviar and its substitutes, salmon, precious stones and 
metals, and jewellery.  A reduced rate of 
12.5 per cent was introduced in 2006 for private one-cylinder motor vehicles. 
14. The Single Window for Foreign Trade 
Operations (GUCE) has been operational since 
December 2000. In 2002, Cameroon decided 
gradually to replace the semi-computerized customs operations management system (PAGODE) with the Automated Customs System (ASYCUDA ++) which came on stream in January 2007 in the Autonomous 
Port of Douala (PAD) and in other customs 
offices.  Imports of CFAF 2 million or more are subject to the programme of enhanced security for customs revenue, and as such must be inspected by the Société Générale de 
Surveillance  before shipment.  However, the 
inspection fees paid by the importer may, in practice, increase beyond the standard rate of 0.95 per cent of the c.i.f. value of imports because of the flat rate of taxation.  For some 
products, including those from Asia, 
Cameroon uses minimum values, which shows that it has difficulties in implementing the WTO Customs Valuation Agreement. 
15. Cameroon has no import licensing 
regimes.  For reasons of health or security, 
imports of a number of products are subject to 
various forms of authorization.  Cameroon has not notified any sanitary or phytosanitary measures, or technical regulations to the WTO.  Some products and services are still subject to  
 
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price approval.  In two cases, approval only 
applies to imported products.  New temporary price control measures were also introduced in 2006.  The National Commission on 
Competition (CNC), which was originally due 
to be founded in 1998, finally became operational in 2007.  The Cameroon Oil Storage Company (SCDP) has a de facto monopoly on imports of oil products.  The 
privatization programme is stagnating, with 
only one company privatized since 2001. 
16. Export duties are levied on exports of 
all products.  Exports of cocoa and coffee are also subject to various fees.  Prohibitions apply to exports of logs of certain species for 
economic reasons.  With a view to 
encouraging exports, different regimes allow importation with suspension of duties and taxes.  Tax benefits for exports are granted under the Industrial Free Zone (ZFI) regime.  
However, according to  the new Investment 
Charter, the ZFI regime should be terminated by the end of 2009 at the latest. 
17. The Cameroonian intellectual property 
regime was harmonized with the TRIPS Agreement when the revised Bangui 
Agreement came into force in 2002.  Several 
new copyright collective management societies were set up in 2003.  However, various products are of ten counterfeited.  A 
new Government Procurement Regulatory 
Agency was set up in 2001 and a new 
Government Procurement Code adopted in 2004.  National preference margins of 10 per cent for works procurement and 15 per cent for supplies procurement are provided for in the 
new legislation. 
(4) S
ECTORAL POLICIES  
18. Cameroonian agriculture has a number 
of natural assets such as the richness of its soil, a favourable climate and crop diversity.  Cameroon is one of the few African countries 
approaching food security.  Agriculture is the 
most important sector in the poverty reduction strategy, because of its contribution to employment and its role in supplying inputs to local industries.  The Government intends to attract private investment, particularly through 
privatizations, with the aim of doubling production in order to raise rural incomes between now and 2015.  The average tariff in 
the agricultural sector (according to the ISIC 
Rev.2 definition) is 25.2 per cent.  Poultry imports are currently subject to authorization and quantitative restrictions; temporary price control measures are applied to local and 
imported poultry.  Various support measures 
and reforms have recently been implemented to stabilize the coffee and cocoa sectors. 
19. The main manufacturing segments are 
foodstuffs, petroleum products, beverages and forestry products.  The principal trade 
measures applied in the sector are relatively 
high tariff rates (on average 18.6 per cent); some of the major branches operate with 30 per cent tariff protection levels.  The tariff structure does nothing to encourage 
investment in certain industries or to improve 
competitiveness in others.  As a fillip to the wood processing industry, a number of restrictions in the form of prohibitions or taxes and surcharges are applied to exports of unprocessed logs. 
20. Cameroon has several types of mineral 
resources, including energy resources.  Petroleum products are an essential element of the economy and government resources, accounting for almost 60 per cent of export 
revenue in 2005.  Oil production, in decline as 
deposits become depleted, has picked up thanks to a number of new oilfields which have recently come on stream.  The adoption of the Petroleum Code in 1999, and accession 
to the Extractive Industries Transparency 
Initiative (EITI) in 2005 are among the actions undertaken to attract new investors to the sector.  Following the liberalization of trade in petroleum products in Cameroon in 2002, sales prices have been regulated by the 
Hydrocarbon Price Stabilization Fund (CSPH), 
but are still subject to automatic adjustment.  Cameroonian gas remains unexploited mainly for reasons of profitability.  The delay in exploiting bauxite reserve s is mainly explained 
by the geographic location of the deposits and 
a lack of interest among partners;  the first Cameroon WT/TPR/S/187 
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company to file a request for a bauxite 
exploitation permit has only recently done so.  An ad valorem  duty is levied on the taxable 
value of products ready for exploitation at the 
pithead.  The average tariff in the mining 
sector is 11.3 per cent. 
21. The electric power operator AES 
SONEL, which is of mixed public-private ownership, has been operating since July 2001 
under a 20-year concession contract with the 
State. Although the sector has been liberalized, AES SONEL holds a de facto monopoly on the production, transportation and distribution of electricity. The insufficient supply of electric energy (and gas) caused a major crisis 
between 2001 and 2003; new investments in 
electricity generation, transmission and distribution have allowed for an improvement in the subsector's performance, particularly in terms of fewer power cuts, and for improved 
transparency within th e pricing structure, 
which, once established by AES SONEL, must be approved by ARSEL. 
22. The services sector's share of GDP has 
grown steadily since 1999, thus indicating a degree of the buoyancy in this sector.  
Restrictions on foreign trade in services 
mainly affect activities that are still State monopolies such as water distribution, fixed telephony, and certain postal services.  Telecommunications services in Cameroon 
have developed considerably since the 
liberalization of the sector and the growth of mobile telephony, bringing benefits to the economy as a whole.  However, the provision of certain services, such as transport, access to 
credit, and electricity, handicap the 
performance of the rest of the economy.  In fact, the delay in the implementation of the transport sector programme, the relatively high cost of road transport, the restrictions on the provision of road transport services between 
Cameroon and Chad or the Central African 
Republic, the port fees levied at Douala and transit times all have a negative impact on the competitiveness of goods and certain services, including tourism.  The country's enormous 
tourism potential remains underexploited, 
despite the preparation of a tourism strategy. 23. The banking subsector remains 
concentrated, with the three leading banks in terms of deposits accounting for some two thirds of lending to the economy and private 
deposits.  Over 80 per cent of funds concern 
short-term operations (customer deposits and 
savings).  Banks only lend to a small number of highly creditworthy customers, which is a key factor constraining the development 
particularly of small and medium-sized 
businesses.  The Cameroon insurance market, characterized by low coverage of industrial risks, low household coverage, and a life insurance sector that is still underdeveloped, has experienced strong growth, despite 
restrictions on the provision of services by 
non-residents.  Within the GATS framework, Cameroon has only made specific commitments in a small number of services sectors, i.e. certain business services and 
tourism and travel. 
(5) T
RADE POLICY AND TRADING 
PARTNERS  
24. The structural reforms implemented 
by Cameroon have allowed the country to reduce its debt and achieve sustained 
economic growth.  This, together with growing 
oil revenue, provides Cameroon with the means to tackle some of its main problems.  However, the economic growth experienced so far is not enough to ensure the total fulfilment 
of the Millennium Development Goals by 
2015.  To this end, continued reform (including structural reform) is necessary in order to improve the business environment, in particular infrastructure, access to credit, and 
governance.  Despite the discovery of new oil 
deposits, it is vital to further the diversification of the economy, particularly by enhancing the competitiveness of export sectors (reducing the costs of trade transactions and distortion through trade reforms, including tariff reforms, 
at the CEMAC level). 
25. The CEMAC CET rates are higher 
than those of other countries in the region, which does not encourage investment or enable the member countries to exploit their 
comparative advantages fully.  Cameroon WT/TPR/S/187 Trade Policy Review 
Page xii 
 
 
could use its position as a natural leader within 
the CEMAC to push the Community to liberalize its trade regime, thus stimulating growth throughout the region.  By improving 
its multilateral commitments, through the 
extension of its tariff bindings to more non-agricultural products, the reduction of bound rates and the strengthening of its commitments under the GATS, Cameroon would make its trade regime more transparent, more credible 
and more predictable.  This, in turn, would help the country to attract the capital needed to exploit its vast potential and to profit more 
fully from its participation in the multilateral 
trading system. The international community could do more to help Cameroon in its reform efforts by responding favourably to its requests for technical assistance.