RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/158 
10 January 2006  
 
(06-0020) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
ANGOLA 
 
 
  
 
This report, prepared for the  Trade Polic y Review of Angola, has been drawn up 
by the WTO Secretariat on its own res ponsibility.  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 Angola on its trade policies and 
practices. 
 
Any technical questions arising from this report may be addressed to 
Mr. Sergios Stamnas (022.739.5382). 
 
Document WT/TPR/G/158 contains the policy statement submitted by Angola. 
 
 
 
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 Angola. Angola WT/TPR/S/158 
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CONTENTS 
 
    P a g e  
SUMMARY OBSERVATIONS vii 
 (1) E CONOMIC ENVIRONMENT  vii 
 (2) I NSTITUTIONAL FRAMEWORK  vii 
 (3) T RADE POLICY INSTRUMENTS  viii 
 (4) SECTORAL POLICIES  ix 
 (5) O UTLOOK  xi 
I. ECONOMIC ENVIRONMENT 1 
 (1) O VERVIEW  1 
 (2) R ECENT ECONOMIC PERFORMANCE  2 
 (i) Growth, employment, and poverty reduction 2 
 (3) M AIN MACROECONOMIC POLICY DEVELOPMENTS  5 
 (i) Monetary and exchange rate policy:  effects on inflation 5 
 (ii) Fiscal policy 6 
 (iii) Governance 8 
 (4) B ALANCE -OF-PAYMENTS DEVELOPMENTS  9 
 (i) Current and trade accounts, and international reserves 9 
 (ii) External debt 10 
 (5) D EVELOPMENTS IN MERCHANDISE TRADE  11 
 (i) Composition of trade 11  (ii) Direction of trade 11 
 (6) O
UTLOOK  11 
II. TRADE AND INVESTMENT REGIMES:  FRAMEWORK AND OBJECTIVES 14 
 (1) I NSTITUTIONAL FRAMEWORK  14 
 (2) P OLICY FORMULATION AND IMPLEMENTATION  15 
 (3) T RADE POLICY OBJECTIVES  19 
 (4) T RADE AGREEMENTS AND ARRANGEMENTS  19 
 (i) World Trade Organization 19 
 (ii) Other multilateral organizations related to trade 21  (iii) Regional agreements 21 
 (iv) Bilateral agreements and arrangements 24 
 (v) Other agreements and arrangements 24 
 (5) I
NVESTMENT REGIME  25 
 (i) General provisions regarding investment 25 
 (ii) Tax and customs privileges for investors 26 
Annex II.1:  Trade-related Technical Assistance 29 
III. TRADE POLICIES AND PRACTICES BY MEASURE 32 
 (1) OVERVIEW  32 
 (2) C USTOMS REGIME  33 WT/TPR/S/158 Trade Policy Review 
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    Page 
 (3) M EASURES DIRECTLY AFFECTING IMPORTS  34 
 (i) Registration and documentation requirements 34 
 (ii) Preshipment inspection  34  (iii) Customs valuation and rules of origin 35 
 (iv) Tariffs, and other import duties and taxes 36 
 (v) Other levies and charges 41  (vi) Import prohibitions, and licensing 41 
 (vii) Temporary importation and re-export 43 
 (viii) Government procurement 43  (ix) Contingency measures 43 
 (x) Standards and other technical requirements 43 
 (4) M
EASURES DIRECTLY AFFECTING EXPORTS  46 
 (i) Registration, documentation and export value 46 
 (ii) Export taxes, charges, and levies 47 
 (iii) Export prohibitions, re strictions, and licensing 47 
 (iv) Export-processing zones 47 
 (v) Export subsidies and promotion 47 
 (vi) Temporary exportation and re-import 47 
 (5) M EASURES AFFECTING PRODUCTION AND TRADE  48 
 (i) Taxation 48  (ii) State enterprises and privatization 48 
 (iii) Competition policy 52 
 (iv) Subsidies and price controls 52  (v) Intellectual property rights 55 
 (vi) Environmental issues 57 
IV. TRADE POLICIES BY SECTOR 59 
 (1) O
VERVIEW  59 
 (2) A GRICULTURE AND FISHERIES  60 
 (i) Agriculture 60  (ii) Fisheries 63 
 (3) M
INING AND ENERGY  67 
 (i) Mining 67  (ii) Energy 72 
 (4) M
ANUFACTURING  77 
 (i) Features 77  (ii) Tariff regime 78 
 (5) S
ERVICES  78 
 (i) Features 78 
 (ii) Commitments under the GATS 79 
 (iii) Financial services 79  (iv) Post and telecommunications 83 
 (v) Transport 85 
REFERENCES   89 
APPENDIX TABLES  93 
 
  Angola WT/TPR/S/158 
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CHARTS 
 
    P a g e  
I. ECONOMIC ENVIRONMENT 
I.1 Structure of merchandise exports and imports, 2000-04 12 
I.2 Direction of merchandise trade, 2000-04 13 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
III.1 Breakdown of applied MFN duties, 2005 37 
III.2 Tariff escalation by ISIC 2-digit industry, 2005 40 
 
 
TABLES 
I. ECONOMIC ENVIRONMENT 
I.1 Main social and economic indicators 2 
I.2 Economic performance, 2001-04 3 
I.3 Sectoral shares in GDP, 1999-03 4 I.4 Balance of payments, 2000-03 9 
II. TRADE AND INVESTMENT REGIMES: FRAMEWORK AND OBJECTIVES  
II.1 Main trade-related laws, decrees, etc. in force or under revision, October 2005 16 
II.2 Status of WTO notifications, October 2005 20 
II.3 SADC trade-related programmes and projects involving Angola 23 
III. TRADE POLICIES AND PRACTICES BY MEASURE  III.1 Structure of MFN tariffs in Angola, 2004-05 39 
III.2 Prohibited imports 42 
III.3 Goods requiring permission for import into Angola 42 III.4 Prohibited exports and goods under special export regimes, 2005 47 
III.5 State involvement in enterprises, October 2005 49 
III.6 Products subject to maximum trading margin regime 54  
APPENDIX TABLES 
I. ECONOMIC ENVIRONMENT 
AI.1 Merchandise exports, 2000-04 95 
AI.2 Merchandise imports, 2000-04 96 AI.3 Destination of exports, 2000-04 97 
AI.4 Origin of imports, 2000-04 98 
II. TRADE AND INVESTMENT REGIMES: FRAMEWORK AND OBJECTIVES  AII.1 Items covered by customs duty exemptions for the petroleum sector 99 
AII.2 Items covered by customs duty exemptions for the mining sector 100 WT/TPR/S/158 Trade Policy Review 
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    Page 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
AIII.1 Products excluded from preshipment in spection requirement in Angola, 2005 101 
AIII.2 Angola tariff distribution by HS chapter 103 
IV. TRADE POLICIES BY SECTOR  
AIV.1 Applied MFN tariffs, by ISIC Rev.2 category, 2005 108 
 Angola WT/TPR/S/158 
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SUMMARY OBSERVATIONS 
 
1. Since the end of the 30-year civil war 
in 2002,  Angola, a large, resource-rich, least 
developed country, has made significant 
progress in fostering growth and stabilizing its economy, particularly macroeconomic balances.  Angola has considerable agricultural, fisheries and manufacturing 
potential;  however, poverty and inequality are 
deeply entrenched, and problems of competitiveness and governance persist.  Angola’s economic outlook depends both on continuing healthy performance in the petroleum and diamonds industries and on 
progress in redeveloping other sectors, 
landmine clearance and the resettlement of displaced people.  Angola has considerably liberalized its trade regime in recent years, but still maintains an escalating tariff, implying 
higher effective protection.  Externally, Angola 
faces a complex and multi-layered policy environment, combining the need to integrate into the multilateral trading system, reconcile membership of the Southern African Development Community (SADC) and other 
African regional groupings, and negotiate 
(with other SADC members) new terms with the European Communities for an economic partnership agreement.   
(1) E
CONOMIC ENVIRONMENT  
2. Angola's macroeconomic performance 
has greatly improved in recent years.  GDP growth, spurred by increasing oil prices, has been rapid, while inflation has been reduced from over 300% in 2002 to an expected 15% 
in 2005.  It is forecast that real GDP may 
increase overall by as much as 18% in the period 2005-07.  The challenge for the authorities is to translate this rapid, oil-based growth into meaningful development benefiting the population as a whole. 
3. After independence in 1975, Angola’s 
economy was run on largely Marxist lines for many years.  At present, State-owned capital dominates the economy, with both oil and diamonds production in the hands of State 
enterprises that control access to natural resources and maintain production-sharing 
agreements or partnerships with international companies.  Other sectors, including services, are being opened gradually to local and 
international investment.  
4. Angola’s export trade is dominated by 
oil exports to China and the United States;  these two destinations accounted for 80% of exports in 2004.  Sources of imports are more 
diversified, with Brazil, European countries 
and South Africa, the major suppliers. 
(2) I
NSTITUTIONAL FRAMEWORK  
5. Economic policy is managed by the 
Economic Cabinet, chaired by the Minister Adjunct to the Prime Minister.  The Ministries 
of Planning and Finance, and the National 
Bank have principal responsibility for the longer-term and macroeconomic aspects of economic policy.  The Ministry of Commerce is responsible for operational aspects of both 
external and internal trade conditions.  The 
Ministry of Finance is responsible for the management of tax policy, including tariffs.  Several sectoral ministries  are also involved in 
trade policy development and implementation. 
6. In recent years, Angola has passed a 
large number of new laws redefining its trade 
and investment framework.  The customs tariff structure was revised in 2005, and a new Customs Code is about to be adopted.  New foreign investment legislation was introduced 
in 2003, as well as new laws on the petroleum 
and diamonds sectors.  Revision of many areas of legislation is still ongoing;  the aim is to revise the whole of Angola’s trade and investment legislation before elections planned 
for 2006.  The capacity of the Government and 
economic operation to implement such a large number and variety of new, much-needed laws and regulations is a challenge and an area in which Angola could benefit from WTO technical assistance. 
7. Angola is an original member of the 
WTO, and a founding member of the African Union, the Southern African Development Community (SADC), and the Economic WT/TPR/S/158 Trade Policy Review 
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Community of Central African States 
(ECCAS);  it is a member of the New Partnership for Africa’s Development (NEPAD), the African, Caribbean and Pacific 
group of States (ACP), and of the Community 
of Portuguese-Language Countries (CPLP).  It has accepted the SADC Trade Protocol, but not yet made any commitments under it.  Within SADC, Angola is responsible for 
agriculture and fisheries in negotiations for an 
economic partnership agreement (EPA) between a number of SADC members and the European Communities.  
8. At present, Angola gives MFN 
treatment to imports from all sources.  
9. Angola’s entire customs tariff is bound 
at ceiling ad valorem rates under GATT 1994; applied tariffs – with a maximum of 30% – are considerably below the bound levels of 55%, 60% and 80%.  Angola's GATS schedule 
contains specific commitm ents in three areas:  
banking and money-lending; hotel and restaurant;  and recreational and sporting services.  Angola maintains MFN exemptions in the areas of coastal and long-distance shipping.  Angola is not a member of any 
plurilateral trade agreement under the WTO, 
nor of the Information Technology Agreement. 
10. Angola held a Trade Policy Clinic 
under WTO auspices in 2004, when technical assistance needs were id entified.  The present 
Review is one of the first outcomes of the 
Clinic.  Angola is a beneficiary of the Integrated Framework for Trade-Related Technical Assistance and is in the early stages of the process.    
11. As a least developed country, Angola 
benefits from duty-free preferential terms in developed markets, including under the EC’s "Everything but Arms" (EBA) declaration and the United States’ African Growth and Opportunity Act (AGOA).  Trade with the 
United States has increased rapidly. 
12. General and sector-based investment 
laws provide widespread, significant tax and duty incentives for investors in priority zones and sectors, including duty-free access for 
most inputs and capital goods.  Investment applications must pass through relevant general or sectoral Ministries;  approval can 
take considerable time. 
(3) T
RADE POLICY INSTRUMENTS  
13. Angola views trade liberalization as a 
means to secure the foundations for sustainable economic growth and to support 
the ongoing reform programme aimed, inter 
alia, at poverty reduction.  However, the authorities regard import s ubstitution, at least 
in the short to medium term, as a necessary stage in promoting reconstruction of its agriculture and industry.  Angola has urged 
all WTO Member States, especially the 
developed economies, to engage in constructive commitments so that the Doha negotiations can make an effective contribution to development. 
14. The customs tariff is Angola's main 
trade policy instrument.  A revised tariff, introduced in February 2005, reduced the maximum applied rate to 30%, with six levels ranging from 2%, and the simple average MFN rate from 8.8% to 7.4%.  All imports are 
subject to a consumption tax of between 2% 
and 30%, and other charges. 
15. A new Customs Code is about to 
replace outdated legislation, and bring the provisions of the WTO Agreement on Customs 
Valuation into Angolan law.  Angola has 
sought technical assistance in building capacity and educating staff in the operation of the Customs Valuation Agreement.  
16. Angola has applied preshipment 
inspection (PSI) since 1980.  The regime was 
revised in 2002; the present PSI contract runs until the end of 2005.  A range of goods are exempted from PSI, which applies above defined levels.  Inspection fees are paid by the Government, but the seller pays the cost of 
presenting the goods for inspection.  The 
authorities intend to phase out PSI with the introduction of the new Customs Code. Angola WT/TPR/S/158 
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17.  Angola has one simple set of rules of 
origin for imports from all sources.  However, rules of origin are li kely to become more 
complex as Angola implements the SADC 
Trade Protocol, and with the conclusion of any 
EPA with the EC. 
18. Angola is not a signatory to the 
Plurilateral Agreement on Government Procurement.  The WTO Secretariat has no 
firm information on procurement legislation 
and procedures by Government agencies or parastatal enterprises. 
19. Angola is taking steps to apply 
international or regional (SADC) standards to some manufactures and food products, 
although human and technical capacity for 
implementation is lacking.  A specialized agency (Codex Angola) has been established to set food standards.  Packaging and labelling recommendations apply to foods, 
pharmaceuticals, cosmetics, and chemicals. 
20. Export taxes of 20% and 10% are 
levied on exports of hides and skins, and un-worked ivory, respectively.  There are also various export bans and licensing procedures, including the “Kimberley” certification 
process for diamonds.  Angola does not ban 
exports or imports of endangered species. 
21. Angola has over 50 State-owned 
enterprises deployed  in several economic 
sectors.  A gradual privatization and 
commercialization process is under way, but 
key sectors, such as oil and diamonds, remain under State control. 
22. Subsidies and price controls apply to 
many consumption goods and services, 
including fuel and electricity.  The authorities 
state that the policy is under review. 
23. New legislation on industrial property 
protection and authors’ rights is in preparation to bring Angola’s intellectual property legislation up to date and into line 
with current international agreements, 
including the TRIPS Agreement.   (4) S
ECTORAL POLICIES  
24. At independence, Angola was a major 
agricultural producer, self-sufficient in food, and a substantial exporter of bananas, coffee, 
cotton, maize, meat, and sisal.  The civil war 
reduced Angola to a major net importer of food and agricultural products and recipient of food aid.  The continuing prevalence of landmines in certain areas of Angola is a 
major impediment to the rehabilitation of rural 
areas.  Most agricultural production is subsistence or small-scale, using manual or low technologies and with low productivity.  
25.  Redevelopment of the agricultural 
sector faces other challenges, including the 
high level, and low prices, of imported food;  
domestic price and profit margin controls;  seriously damaged road and rail links and limited rural infrastructure;  the need to restore storage capacity;  and the need to 
build up adequate financial and credit systems 
for rural production and commerce. 
26. Imports of animals, plants, and by-
products from areas affected by diseases, and genetically modified or transgenic seeds or grains, are banned.  Genetically modified 
organisms (GMOs) supplied for food aid 
purposes must have prior permission before importation, and grains and seeds entering as food aid must be milled on arrival. 
27. Fisheries and fish processing are 
potentially major exports.  New legislation 
establishes a comprehensive system for managing and monitoring fisheries in Angola’s waters.  The industry is based mainly on joint-venture operations between Angolan 
and foreign investors, with majority Angolan 
ownership.  A satellite-ba sed system has been 
installed for monitoring catches.  Angola has signed the SADC Fisheries Protocol, and maintains a bilateral agreement with Namibia.  An earlier agreement with the EC has expired. 
28. Peak tariffs of 30% apply to some 
products of animal origin;  coffee;  certain edible preparations;  and wood products, while fresh fish is taxed at 20%. WT/TPR/S/158 Trade Policy Review 
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29. Oil production and diamond mining 
are currently the main  productive sectors of 
the Angolan economy.  Both are State controlled, with State-owned corporations 
acting as resource managers and 
concessionaires, as well as producers.  
30. In the oil sector, joint ventures and 
partnership agreements between the State corporation, SONANGOL, and multinational 
oil companies are the general rule.  Following 
international criticism of  lack of transparency 
in managing oil funds, Angola has published the recommendations of a study by the KPMG consultancy, and has established a reserve fund in the National Bank of Angola to absorb 
windfall gains from increasing oil prices. 
31. ENDIAMA, the State diamond 
company, markets diamonds through a joint-venture subsidiary, SODIAM.  De Beers has recently resumed operations in Angola.  
Angola has been a major moving force in the 
“Kimberley process” to prevent trade in conflict diamonds, and has introduced a successful export certification system.  Nevertheless, illegal mining persists. 
32. The nominal average tariff on "mining 
and quarrying" (ISIC 2) is 13.7%, with rates 
from 5% to 30%.  The peak rate is levied on road building and other construction products, 
and precious or semi-precious stones;  duties on oil products range up to 20%.  
33. Oil production and diamond mining 
benefit from a wide range of duty-free concessions on inputs and capital equipment, which increase effective protection of final output considerably over nominal rates.  
34. Currently, manufacturing accounts for 
less than 4% of Angola’s GDP.  A reindustrialization strategy, formulated in 2002, is based on im port substitution and 
export promotion, with four pillars: development of industries with links to the 
primary sector;  redevelopment of import-
substituting industrial sectors;  promotion of industries producing exportable goods;  and development of large-scale, technology-
intensive projects based on petroleum. 
35. Tariffs on manufactures escalate 
selectively, with 30% duties increasing 
effective protection on certain food, beverages, 
tobacco, and wood products;  chemicals;  stone- and cement-based construction materials;  structural metal products;  miscellaneous machinery and equipment; and 
jewellery.  Investors in priority sectors and 
zones benefit from duty-free access for inputs and capital goods. 
36. Banking legislation dates from the late 
1990s.  The sector is open to foreign investment; however, foreign investors need 
authorization from the Council of Ministers to 
hold over 20% of the capital of a bank or lending institution.  The authorities are currently working on adoption and implementation of the "Basel II" capital 
adequacy standards of the Bank for 
International Settlements (BIS ). 
37. Under new legislation, dating to 2004, 
the insurance and pension funds sectors have been opened to competition, and four insurance companies, including with foreign 
participation, now operate  in Angola. 
38. The postal service is to be opened to 
greater competition by 2012.  Telephone services, particularly mobile telephony, have already been opened to competition with the 
State-owned Angola Telecom;  such 
competition needs to meet with the universal service obligation stipulated in the 2001 telecommunications law. 
39. In marine transport, Angola applies 
the 40-40-20 principle of the UNCTAD 
Convention on Liner Conferences. The National Council of Carriers is the regulatory body for shipping to and from Angola;  all shipments to and from Angola must be registered with the Council.  In 2004, Angola 
introduced fixed tariffs and compulsory 
inspections on vessels calling at all its ports.  The fees depend on the type of vessel, with Angola WT/TPR/S/158 
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liquid natural gas (LNG) carriers facing the 
highest fees of US$760. 
40. Angola and its neighbours are taking 
steps, partly with external assistance, to 
restore road and rail links, in particular with 
Zambia via the Benguela railway and with Namibia by road and rail.  These steps, if successful, should help to re-establish trade and production within Angola, as well as 
transit trade from Zambia and Congo. 
(5) O
UTLOOK  
41. The macroeconomic outlook for 
Angola is optimistic if oil prices remain high.  GDP growth is expected to continue to be rapid, and inflation is being reduced to 
manageable levels.   
42. Diversification of production and 
trade, rehabilitation of the domestic  43. infrastructure, and spreading of the 
benefits of growth to encourage wider development, are the major structural economic challenges facing Angola. 
Angola has concluded a large volume of new 
trade- and investment-related legislation in recent years, and is about to adopt the WTO customs valuation methods.  Implementation of all these new provisions is likely to be a major 
challenge as human and technical resources 
are scarce.  
44. Angola has asked various 
international organizations, including the WTO, for technical assistance in a number of precisely defined areas, and is a participant in 
the Integrated Framework;  it is important to 
the authorities that appropriate assistance be provided without delay.