WORLD TRADE  
ORGANIZATION  WT/TPR/M/143 
29 March 2005 
 (05-1261) 
Trade Policy Review Body 
  
 
TRADE POLICY REVIEW 
 
SIERRA LEONE 
 
Minutes of Meeting  
 
Chairperson:  H.E. Mrs. Puangrat Asavapisit (Thailand) 
 
 
Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3  
II. OPENING STATEMENT BY THE REPRESENTATIVE OF SIERRA LEONE 4  
III. STATEMENT BY THE DISCUSSANT 5  
IV. STATEMENTS BY MEMBERS 7  
V. REPLIES BY THE REPRESENTATIVE OF SIERRA LEONE AND  
 ADDITIONAL COMMENTS 10  
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 16  
 
 
Note:   Advance written questions by WTO Member s and the replies provided by Sierra Leone are 
reproduced in document WT/TPR/M/143/A dd.1 and will be available online  
at:  http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/143 
 Page 3 
 
 
 I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The first Trade Policy Review of Sierra Leone  was held on 9 and 11 February 2005.  The 
Chairperson welcomed the delegation of Sierra Leon e, headed by H.E Dr. Kadi Sesay, Minister of 
Trade and Industry, and the discussant Dr. Johannes Smeets (Netherlands).  As usual, the discussant 
would speak in his personal capacity and not as a representative of his Government.  In accordance 
with the established procedures, he had made availa ble in advance an outline of the main issues he 
intended to raise (document WT/TPR/D/119). 
2. The Chairperson recalled the purpose of the Trad e Policy Review and the main elements of 
the procedures of the meeting.  The Policy Statem ent by Sierra Leone was contained in document 
WT/TPR/G/143/Rev.1 and that of the WTO Secretariat in document WT/TPR/S/143.  Copies of 
advance written questions, submitted by Kenya, Canada, Japan, Mexico, the United States, the 
European Communities, and Brazil, had been transm itted to the delegation of Sierra Leone.  If full 
replies could not be provided during the meeting, additional written replies could be provided at a 
later date.  
3. Since the end of its civil unrest in 2002,  Si erra Leone had continue d its programme of  
macroeconomic, structural, law and trade reform, lead ing to vibrant growth.  Sierra Leone's economic 
recovery and development depended on the hea lthy performance and prospects of the dominant 
agriculture and mining sectors, largely dependent on diamonds, minerals and few primary products 
(cocoa, coffee), as well as the political and economic de velopments within the country and subregion.  
Private sector development was a key facet of Vi sion 2025, the country's national recovery strategy, 
and efforts were being made to attract investor s.  Sierra Leone considered trade policy as an 
instrument for poverty reduction and peace, while seeking a balance betwee n internal needs and 
external obligation.  Sierra Leone was taking action to ensure better policy coordination on trade and  
related matters while envisaging strengthened in volvement in and commitment to subregional 
integration initiatives.  
4. Sierra Leone had requested to be the first WTO Member to benefit from the Trade Policy 
Clinics facility, which had led to the preparation of  its first Trade Policy Review.  Sierra Leone had 
met difficulties in participating fully in the WTO an d implementation of certain commitments, due to 
the period of civil unrest, capacity constraints, and the lack of a representation in Geneva.  Training 
and technical assistance would underpin further integration within the world economy.  WT/TPR/M/143 
Page 4  
 
 II. OPENING STATEMENT BY THE RE PRESENTATIVE OF SIERRA LEONE 
5. The representative of Sierra Leone
 stressed that since the end of hostilities in 2002, and the 
resumption of the democratic process, peace and social order had been consolidated through the 
implementation of the Disarmament, Demobilisation and Reintegration Programme.  The priorities of 
the post conflict phase had been on the social s ector, namely health, nutrition and sanitation, and 
education and training.  At the same time Si erra Leone had focused on the establishment of 
macroeconomic stability, structural and legal reform, and social progress.   
6. Sierra Leone aimed to put in place an effective system of policies and programmes that would 
enable the country to produce competitive products  that would lead to meaningful market access for 
Sierra Leonean goods and services.  It believed that  export-led growth woul d help to reduce poverty 
because it would concentrate income directly in  the hands of the poor, thereby creating new 
opportunities  for employment and wealth creation. 
7. Sierra Leone aimed to improve the business environment, to foster economic and social 
development and to facilitate the integration of its  economy into the multilateral trading system.  In 
order to take greater advantage of the multilateral trading system, Sierra Leone needed assistance on a 
range of issues, in particular:  to build the cap acity of customs and ports officials for improved 
customs valuation and port management;  for produc ers, to develop supply capacity and improve the 
quality and standard of products and services, an d increase competitiveness, particularly in agri-
processing, supply chain management and other value added manufacturing.  Help was also needed in 
efforts towards legal and regulatory reform,  and especially in developing negotiating capacity to 
engage effectively in the Doha process.  
8. Regarding future prospects and orientations, she indicated that:  (i) the Poverty Reduction 
Strategy Paper (PRSP) had been finalized, with tr ade as a major element of the strategic framework; 
(ii) the Investment Promotion Act 2004 was enacted, inter alia providing for the creation of a one-
stop shop within the Sierra Leone Export Developm ent and Investment Corporation (SLEDIC) and an 
one-stop clearance within the Ports Authority;  ( iii) legislative reforms were on-going (e.g. companies 
act, bankruptcy act, and partnership act were being considered);  (iv) working groups on intellectual 
property rights and competition policy were being esta blished to develop new legislation, and a study 
to review all commercial laws and policies, as well as a capacity-building programme on 
administrative barriers to investment and trad e were being funded by the UK Department for 
International Development (DFID);  (v) capacity building among the private sector was being supported by the DFID, UNDP, and the UNIDO Inte grated Programme of Support to Small and 
Medium Enterprises (SMEs);  and (vi) the three-y ear implementation programme on privatization was 
progressing gradually. 
9. Sierra Leone was participating in the Ec onomic Community of West African States 
(ECOWAS) trade liberalization scheme and was gra dually adjusting its tariffs towards an agreed 
common external tariff.  Progress had also been made  on the convergence criteria of the West African 
Monetary Zone (WAMZ).  Sierra Leone was beginni ng to take advantage of  market openings under 
the EC's Everything but Arms initiative and the U. S. African Growth and Opportunity Act (AGOA). 
Support from development partners, including the EC, the Chinese Government, the Commonwealth 
Secretariat, DFID, UNDP, the Centre for Development of Enterprises, ITC, World Bank, and the Foreign Investment Advisory Service, would ensure  Sierra Leone's path towards a more sustainable 
future.   
  WT/TPR/M/143 
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 III. STATEMENT BY THE DISCUSSANT 
10. The discussant  noted Sierra Leone's progress since the end of the civil war and the adoption 
of important policy measures such as the new customs valuation programme and new government 
procurement procedures. 
11. With regard to the macroeconomic policy, secu rity, good governance, and poverty reduction 
were the main official policy goals of Sierra  Leone, and macroeconomic stabilization was a key 
instrument to achieve those goals.  But the ec onomy also needed to recover from the wartime 
destruction and grow rapidly in order to reduce the unacceptable levels of poverty.  International 
financial institutions and donors had made impo rtant commitments to Sierra Leone, and the 
Government had set up programmes to increase dom estic revenue collection.  Total domestic 
revenues in Sierra Leone were 12.4% of GDP in 2004 compared with an average of 19.7% for sub-
Saharan Africa.  Domestic borrowing by the Govern ment would push up real interest rates, which 
were already prohibitively high for private sector development:  therefore the discussant asked why the Government had not intensif ied domestic revenue collection instead of increasing official 
domestic borrowing in 2004, and whether this woul d continue in 2005.  He also asked about the 
outlook for domestic revenue, now that tax c oncessions were to be given to investors.  
12. In the debt sustainability analysis of the IM F and the World Bank for the Heavily Indebted 
Poor Countries Initiative (HIPC) Decision Point in 2002,  real GDP was expected to grow 5.3% a year 
in the period till 2010.  Given that GDP had grown by 26% in 2002, 9% in 2003, and 7% in 2004,  
fulfilment of the triggers of the HIPC Floating Co mpletion Point should be achievable.  One of these 
triggers was the implementation for at least one year of a full poverty reduction strategy paper 
(PRSP).  The discussant asked why the completion of a full PRSP had been delayed and when it was 
expected to be adopted. 
13. With regard to rising inflation trends, he wondered why the Central Bank could not control 
inflation more effectively;  since the poor were th e least able to protect themselves from inflation, 
poverty would probably deepen. 
14. With regard to trade policy, the single entry po int for imports into Sierra Leone had resulted 
in a reduction of the average processing time for import transactions, which had greatly facilitated 
trade (including transit to neighbouring countries).  However, domestic expor ters were faced with 
complicated procedures, which hampered private se ctor development.  The discussant asked whether 
there were plans to streamline export procedures.  
15. With regard to the obligatory preshipment insp ection regime, he stated that the costs were 
unreasonably high for small importe rs, and wondered whether presh ipment inspection should be 
maintained for all goods.   
16. As an LDC with all tariff lines bound, Sierra Leone would be probably exempt from making 
tariff concessions in the Doha Round.  However,  other, non-LDC members of ECOWAS were in a 
different negotiating situation, and ECOWAS meas ures apparently, had legal precedence in Sierra 
Leone over WTO agreements.  The discussant asked whether the ECOWAS CET would be adapted as 
a result of market access improvements by n on-LDC ECOWAS members in the Doha Round. 
17. On sectoral issues, he noted that food produc tion was of utmost importance for the reduction 
of poverty in rural areas.  Free distribution of good quality seedlings from other countries in the region was an important instrument  to expand both the quantity and qua lity of agricultural production.  
Until domestic food production had been build up suffi ciently, Sierra Leone would remain a net food 
importer and receiver of food aid.  The discussant asked how it would be possible to keep food aid 
from disrupting and discouraging further developm ent in domestic agricultural production.  He WT/TPR/M/143 
Page 6  
 
 wondered whether at a certain point, food aid should only be allowed in the form of free distribution 
of seedlings.  
18. Sierra Leone had made quite comprehensive co mmitments under the GATS.  Nevertheless, in 
some services activities there were 100% government-own ed companies, which were to be privatized.  
If privatization contracts were to contain protection clauses, the desired improvements in market 
processes, leading to lower operational/production co sts for certain sectors (e.g., banking, transport), 
might not be realized.  He asked what measures woul d be taken to avoid privatization deals that did 
not improve market processes and might not be co mpatible with Sierra Leone's GATS commitments. 
19. Regarding the EC import ban on Si erra Leone’s fish and fish pr oducts, which came into effect 
in 2000 without being notified formally to the author ities, he noted that the Sierra Leone’s Standards 
Bureau was developing standards and codes of conduct in compliance with the relevant EC directives, 
and that in 2002 a request was made to the EC fo r technical assistance.  The discussant asked whether 
this request had been included in the cooperation pr ogramme between Sierra Leone and the EC for the 
subsequent years.  WT/TPR/M/143 
 Page 7 
 
 
 IV. STATEMENTS BY MEMBERS 
20. Members were aware of the economic difficulties faced by LDCs like Sierra Leone.  They 
congratulated Sierra Leone for the macroeconomic , structural, and commercial reforms undertaken 
since the end of the civil unrest.  They recogni zed that these reforms had helped to accelerate 
economic growth and reduce poverty.  Members encourag ed Sierra Leone to continue on the path of 
reform in order to tackle the obstacles to co mpetitiveness and diversification, including its 
dependence on diamonds exports.  Many members s upported the technical assistance programmes in 
favour of Sierra Leone.  
21. The representative of the United States  commended Sierra Leone's efforts to reduce poverty 
and maintain peace since the end of the civil unrest.  Sierra Leone had made efforts to promote the 
market economy, to expand investment and trade, st imulate growth, and facilita te its integration into 
the world economy.  The enactment of the Investme nt Promotion Act and the creation of the Sierra 
Leone Economic Development and I nvestment Corporation (SLEDIC) demonstrated Sierra Leone's 
commitment to enhancing its investment climate.   The United States encouraged Sierra Leone to 
improve its infrastructure in order to attract more investment. 
22. The United States gave substantial preferen tial access to traditional and non-traditional 
exports from Sierra Leone, in particular through the AGOA. 
23. She commended the Government of Sierra Leone on the very important step taken in creating 
a National Coordinating Committee on Trade, whic h would improve coordination on trade and 
economic issues, and provide strate gic direction for participation in  the regional and international 
process.  She noted the participation of Sie rra Leone in the Kimberley Process for diamond 
certification and other steps being taken to reduce diamond smuggling.  She welcomed Sierra Leone's 
statement on implementation of the TBT Agreement.  
24. The United States was concerned that Sierra Leone's export procedures were lengthy and 
complicated.  The representative sought informati on on plans to implement the WTO Agreement on 
Customs Valuation and intentions to reduce bound tari ff levels, in the Doha ne gotiations,  to minimize 
the  difference between applied and bound rates. 
25. Sierra Leone was drafting new patent and trade mark laws.  The United States would continue 
to support efforts for the protection of intellectua l property rights, and offer technical assistance, 
where required, for drafting legislation on and implem enting the IPRs protection prior to the expiry of 
the transition period for LDCs.  She sought cl arification on whether ECOWAS requirements 
superseded WTO commitments. 
26. The representative of Kenya  noted Sierra Leone's substantial efforts to restructure its 
economy since the end of the conflict.  The Sierra Leonean authorities were encouraged to continue 
the efforts to stabilize the economy, seek sustaina ble growth, reduce poverty levels, and consolidate 
the peace process.  The support of donors and the international community were required to 
complement the Government's efforts.  She underlin ed the need for technical assistance in order to 
remove constraints in implementing WTO obligations  and participating in negotiations, as well as to 
facilitate integration in the multilateral trading system. 
27. The representative of Zambia, speaking on behalf of the LDCs , underlined the common 
policy features between Sierra Leone and countries belonging to the same group.  He noted the 
problems that Sierra Leone encountered in order to pa rticipate in WTO activities, such as  the lack of 
a permanent mission in Geneva, as well as the non-enactment of laws for the implementation of 
various WTO Agreements.  Additional technical assistance was needed to  build the legal and 
institutional framework for implementing those Agreements. WT/TPR/M/143 
Page 8  
 
 28. The "July Package" now recognized that impr oved access should be provided for LDCs in the 
markets of developed countries by extending pref erential duty-free and quota-free access for their 
exports.  LDCs should not be expected to reduce thei r tariffs;  they should agree only to bind tariffs on 
industrial items, if necessary, at levels higher than  the applied rates.  Almost all LDCs had been 
unable to table offers in the services negotiations because they had not been able to assess the impact 
of further liberalization.  LDCs should be enc ouraged to liberalized gradually because further 
commitments would reverse past lib eralization efforts, and credit should be obtained for autonomous 
liberalization measures. 
29. The absence of many LDCs representatives at the meeting was due to the number of meetings 
held/scheduled at the WTO at the same time. 
30. The representative of Canada
 noted  the efforts made by Sierra Leone to update and liberalize 
its foreign investment regime, and the developm ent of a vibrant and innovative services sector.  
Canada had made a substantial fina ncial commitment in order to help countries, such as Sierra Leone, 
participate fully and efficiently in the current roun d of negotiations.  Sierra Leone also benefited from 
the initiative of access to Canadian markets for LDCs, which gave dut y-free and quota-free access to 
all imports from LDCs, with the exception of  dairy products, poultry, and eggs.   
31. The Government of Sierra Leone had made effort s to liberalize its foreign investment regime, 
and had introduced the Investment Promotion Act in  2004.  He congratulated Sierra Leone for having 
adopted a fully bound customs tariff, but was c oncerned about the gap be tween bound and applied 
tariff rates.  Canada encouraged Sierra Leone to implement the WTO Agreement on Customs Valuation.   
32. Canada encouraged Sierra Leone's efforts to  promote policies to develop SMEs.  In the 
current round of GATS negotiations, Ca nada had paid particular atten tion to the requests and concerns 
raised by developing countries and LDCs, and woul d not be requesting further services liberalization 
commitments from the LDCs. 
33. Canada was pleased that Sierra Leone had rec ognized the importance of mainstreaming trade 
into its development plans and integrating into the multilateral trading system, and congratulated 
Sierra Leone for its efforts to secure its inclusion in the Integrated Framework (IF) initiative, to which 
Canada remained committed. 
34. The representative of Japan
 recalled the forms of assistance provided by his country to Sierra 
Leone and the entire continent.  He underlined th e key features of Japan's New Medium-Term Policy 
on Official Development Assistance.  Japan's In itiative for Co-operation with Africa through the 
Tokyo International Conference on African Developm ent (TICAD) contained four key concepts to 
promote trade and investment in Africa: formulati on of an appropriate policy, product development, 
empowerment of small and medium-size local enterprises, and promotion of a social contribution by private enterprises.  A TICAD-NEPAD Joint Policy Framework for the Promotion of Trade and Investment between Africa and Asia had been signed. 
35. The representative of the European Communities
 recalled that Sierra Leone had built a 
partnership with the EC on the basis of political  cooperation, development programmes, and trade 
arrangements. The recent enactment of the Investme nt Code would improve the environment for the 
private sector, and the planned legislative reform would support further trade liberalization.  She 
encouraged Sierra Leone to continue work to ad just its tariffs towards the agreed ECOWAS CET. 
36. The EC noted the importance in continuing the work to strengthen Sierra Leone's policies on 
competition, government procurement, trade fac ilitation, and its markets for goods and services.  WT/TPR/M/143 
 Page 9 
 
 
 37. No matter how much aid was given, it could not replace trade as the main engine for 
development.  A strong comprehensive national de velopment strategy should always have trade as 
one of its main pillars.  In this context she stressed  the importance of building solid infrastructures, as 
well as financial services, telecommunica tions, transport, and port management. 
38. Sierra Leone was encouraged to implement the ECOWAS agreement, in particular the Trade 
Liberalization Schedule.  Regional and bilateral a rrangements were complementary to and could not 
replace those at the multilateral level.  She underlin ed the benefits derived from the strengthening of 
rules and opening of markets at the multilateral leve l, on the basis of a comprehensive approach, and 
addressing the interests of all members of the trading system.  
39. The representative of Brazil  noted Sierra Leone's progress in stabilizing its economy, 
reducing poverty, and consolidating peace.  He encour aged Sierra Leone to further promote structural 
reforms with a view to improving efficiency gain s in the public services and fostering development of 
the private sector.  He commended effort s to reinforce institutional capacity. 
40. Brazil was aware of the challenges that faced developing countries, in particular LDCs in 
their endeavours to achieve greater integration in to the world economy.  The WTO could play a key 
role in ensuring that multilateral rules were supportive of development, particularly by contributing to 
the opening of markets and the removal of barriers on exports of interest to LDCs.   
41. Since many of the serious economic problems of  Sierra Leone were common to many LDCs 
(e.g. supply-side constraints, weak productive b asis, export concentration on a few commodities, 
excessive reliance on concessional preferential schemes) , Brazil invited Sierra Leone to consider 
acceding to the Global System of Trade Preferences (GSTP). 
42. The representative of Tanzania  congratulated Sierra Leone's efforts in reconstructing its 
economy since the end of the conflict.  Like his co untry, Sierra Leone had adopted liberal and open 
economic and trade policies that included private secto r development in almost all areas  Sierra Leone 
like other LDCs was very much disadvantaged in te rms of its participation in global production and 
trade.  He supported the policy strategy that Sie rra Leone was taking in the present negotiations within 
the WTO, in particular in agriculture, non- agricultural market access (NAMA), and services. WT/TPR/M/143 
Page 10  
 
 V. REPLIES BY THE REPRESENTATIVE OF SIERRA LEONE AND ADDITIONAL 
COMMENTS 
43. The replies by the representative of Sierra Le one were divided into three main themes:  
(i) economic environment;  (ii) trade policy by measure;  (iii) and sectoral issues.  Sierra Leone undertook to provide supplementary written replies at a later date.  
(i) Economic environment 
44. The representative of Sierra Leone
 stated that the November 2002 National Recovery 
Strategy (NRS), which was presented at the Consu ltative Group meeting in Paris, contained four 
primary areas of intervention, while acknowledging important cross-cutting issues such as HIV/AIDS 
and preventive health care;  youth;  gender;  a nd the environment.  Agriculture and mining were 
featured prominently;  the primary objectives of the Government’s current agricultural strategy were 
to attain food self-sufficiency, generate tradeable su rpluses, and create employment to raise incomes.  
Several strategies had been outlined to pursue the policy. 
45. The main objectives of the mining policy, were to progressively increase production, income, 
tax revenues, and employment opportunities genera ted by the mining sector (both artisanal and 
industrial), and reduce illegal mining.  The mining st rategy focused on:  maintaining civil order in 
mining areas through the re-establishment and cons olidation of the Government's authority;  and 
establishing a sound regulatory framework for mining and marketing.  The current priorities were to: 
(i) ensure reduction in the number of illegal miners ;  (ii) finalise and adopt a revised mining policy, 
prepared in close collaboration and with assistan ce from the World Bank, the DFID and USAID.  
46. The national vision was presented in Vision 2025,  which provided a long-term development 
strategy for the country as well as a unique collective opportunity to think about correcting past 
mistakes and building a better future.  The key stra tegic issues for the attainment of Sierra Leone’s 
vision were:  (i) how to attain a competitive private sector-led economy with effective indigenous participation;  (ii) how to create a high quality of life for all Sierra Leoneans;  (iii) how to build a well 
educated and enlightened society;  (iv) how to create a tolerant, stable, secure and well-managed 
society based on democratic values;  (v) how to  ensure sustainable exploitation and effective 
utilisation of our natural resources, while maintaini ng a healthy environment;  and (vi) how to become 
a science and technology driven nation.  Speci fic actions were attached to each issue. 
47. Sierra Leone’s external debt was addressed with in the HIPC initiative.  Sierra Leone was 
receiving debt relief from key creditors including the IMF, African Development Bank, the World 
Bank, the European Investment Bank, and the EC.  Sierra Leone was fully meeting its debt service 
obligations.  In order to reduce the weight of de bt, Sierra Leone was looking for concessions when 
contracting new loans.  In the Poverty Reduction Growth Facility, there was a grant element of 35% 
and above.  Sierra Leone was avoiding contracting s hort term loans.  All the loans taken on by the 
Government of Sierra Leone were geared towa rds alleviating poverty.  Indebtedness towards 
commercial creditors would be addressed at the end of the completion point. 
48. The Bank of Sierra Leone was doing its best to control inflation.  Inflationary pressures had 
recently resurfaced around the world due to higher o il prices.  Some other factors that produced 
inflationary effects outside the control of the cen tral bank included increased international shipping 
charges, reduced budgetary support, and depreciati on of the U.S. dollar against major currencies.  
49. Sierra Leone considered the privatization pr ocess to be a key aspect of its development 
strategies and it was now closely linked with the implementation of the PRSP.  Another important 
element was the establishment of appropriate re gulatory frameworks and competition policies to 
enable privatization to proceed efficiently.  The Strategic Action Plan on Priv atisation had not receive  WT/TPR/M/143 
 Page 11 
 
 
 sufficient funds from donors and a revised programme had been drawn up with an extended timescale 
of December 2010.  Sierra Leone was negotiating with donors including DFID, the World Bank, and 
UNDP on the resources to be earmarked for the im plementation of this revised programme, which 
would be published by the end of the first quarter  of 2005.  The process for the privatization of 
companies such as the telecommunications company (Sierratel) and the National Power Authority 
(NPA), was contained in Sierra Leone's written responses (WT/TPR/M143/Add.1). 
50. The Investment Promotion Act 2004 would soon be available at the internet.  As Sierra 
Leone’s technological infrastructure was improving, more sector-specific Acts would also be made publicly available either on the government website or on the CD-ROM, The Sierra Leone 
Encyclopaedia .  All Acts of Parliament were available to the public from the respective sectoral 
Ministries or for purchase at the Government Bookshop. 
51. The package of incentives attached to the Inv estment Promotion Act 2004 was being finalized 
and would soon be enacted.  The implementation of  some provisions in the Act (e.g. the one-stop 
customs clearance mechanism, one-stop shop for business registration) had started.  The Ministry of Trade had commissioned a study on administrativ e barriers to investment in Sierra Leone  
52. Measures were being put in place to broaden th e tax base, for instance the creation of non-tax 
revenue, and the incentives in the Investment Prom otion Act would likely attract new investments. 
53. Sierra Leone was keen to diversify its e xports and reduce its dependency on a single 
commodity (diamond exports).  There was vast potentia l in agri-processing, fisheries, and tourism, in 
particular. A number of initiatives were expected to bear fruit for domestic producers in the near 
future for the development of SMEs.  
54. Sierra Leone was encouraging the diversifica tion of food crop production for example cereals, 
vegetables, and tubers, thr ough various support measures. 
55. The discussant
 sought additional information on the steps taken by the authorities to 
implement the goals included in the PRSP, as well as the ways to achieve the completion point of the 
Heavily Indebted Poor Countries initiative (HIPC).   
56. The representative of the United States  requested additional information on the objectives of 
Vision 2025.  Considering the gravity of some of th e challenges facing Sierra Leone, this plan was not 
offering short-term solutions.  He wondered whet her Sierra Leone had de veloped an action plan 
setting more immediately achievable results. 
57. The representative of Sierra Leone   replied that the PRSP incorporated components of the 
Vision 2025 into its medium-term strategies.  Tho se strategies were prioritized in action plans 
achievable in the next three years, wh ich was the time-frame for the PRSP.  
(ii) Trade policy by measure   
58. The representative of Sierra Leone  noted that her country was still in the process of 
developing its trade policy and strategy within the context of its domestic needs, and its regional and 
international obligations.  Sierra  Leone should benefit from the ad vantages of globalization through 
trade.  This trade policy review made a major contribution to the process of reviewing and updating 
Sierra leone's trade policies. 
59. Trade liberalization and private sector devel opment were key facets of the growth and 
economic development of Sierra Leone.  The PRSP contained a sub-pillar on trade liberalization and WT/TPR/M/143 
Page 12  
 
 private sector development.  It was important that  development cooperation activities ensured that the 
strategies contained in the PRSP were implemented by the earliest possible date.  
60. Sierra Leone had yet to fully benefit from trade liberalization due to its lack of resources and 
its inherent supply side constraints.  Trade and development needs required a much more systematic 
analysis and strategies.  It was important for Si erra Leone to engage much more closely with 
ECOWAS at the same time as it embarked on furthe r liberalization.  Sierra Leone was committed to 
the multilateral trading system.  
61. Regarding the developing proposals for the im plementation of a comprehensive reform and 
development plan,  the British Government thro ugh DFID was committed to provide technical 
assistance to the Ministry of Trade.  Terms of refe rence were being prepared.  At the same time, a 
comprehensive package of trade related techni cal assistance was envisaged from development 
partners under the IF through the Diagnostic Trad e Integration Study (DTIS) and Action Matrix.  
62. With regard to institutional coordination, the unreliability of trade data from different 
agencies was a pressing problem.  The Ministry’s Po licy Planning and Research Division was liaising 
with Statistics Sierra Leone, which gathered data from all agencies, and various coordination efforts 
were under way.   
63. The industrial zone established jointly by th e Government of Sierra Leone and the Hennan 
Guoji company provided space for twenty business outle ts;  and there were plans for the construction 
of similar zones. 
64. With regard to Sierra Leone's position on its  membership of ECOWAS and the WTO, it 
considered itself bound by its contractual obliga tions to the WTO ‘Single Undertaking’.  WTO 
obligations recognized the right of Members to be  part of regional groupi ngs, and Sierra Leone 
exercised this right, under the enabling clause and GATT Article XXIV, in its membership of 
ECOWAS.  Sierra Leone together with other ECOWAS countries would seek to complete the notification process for the recognition of ECOWAS by the WTO.  
65. Sierra Leone had ratified 34 out of 38 ECOW AS protocols and conventions through an 
instrument of ratification.  It had not needed to enact specific legislation to implement ECOWAS 
obligations.  However, Sierra Leone was yet to fu lly implement the provisions of the ECOWAS trade 
liberalisation scheme:  the main difficulties were  related to revenue c oncerns and supply-side 
constraints.  Its manufacturing base was very small compared to its key trade partners.  ECOWAS was not yet developing any implementing regulatio ns for WTO agreements, though it was considering 
anti-dumping issues.  
66. A recent study had recommended that Sierra Leone should fully  implement the CET by 
2008, with the first of three phases commencing in  January 2005.  The adoption of the CET from 
January 2005 would increase the import duty rates of  75 commodity types from zero to 5%, and of six 
commodity types from 5% to 10%.  However, 17 co mmodity types would have their rates decreased 
from 20% to 15% and seven commodity types from 30% to 20%.  There would also be a reduction in 
the simple average tariff from 17.5% to a bout 12%.  The estimated revenue loss from the 
implementation of the CET in the first year woul d be about Le4.0 billion.  The ECOWAS CET was 
not static and would be negotiated on a continuo us basis among ECOWAS members;  it was likely to 
be influenced by developments in the Doha Round.  
67. With regard to the Trade Policy Clinic, in August 2003, a combined Inter-Agency Mission 
visited Sierra Leone to undertake a needs assessme nt in respect of Sierra Leone’s trade policy 
capacity.  During that mission, it was agreed that Sierra Leone would undergo its first trade policy  WT/TPR/M/143 
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 review in the WTO.  In October 2003, the WTO Refe rence Centre was established at the Ministry of 
Trade,  and had been very useful in the provision  of information on the multilateral trading system.   
68. Sierra Leone needed trade related technical assistance for:  (i) customs valuation and port 
management;  (ii) sanitary and health st andards;  (iii) domestic producers, to, inter alia,  improve the 
quality and standards of products and services;  (i v) training in enterprise development and business 
skills for SMEs;  (v) legal and regulatory reform fo r trade facilitation;  (vi) training for trade policy 
makers, negotiators, and pr ofessionals in specific trade issues including intellectual property, services, 
SPS and TBT;  and (vii) establishment of a mission in Geneva.  
69. Regarding ad valorem charges/PSI fees, the 1.10% ad valorem  inspection charge was 
included in the tender proposal by Intertek;  Si erra Leone had accepted these terms, and the charge 
would remain until the expiry of the contract, within two years. 
70. Sierra Leone was committed to implementi ng the WTO Customs Valuation Agreement;  a 
draft Customs Bill was to be enacted within three months.   
71. Sierra Leone’s excise taxes applied to certa in products, whether domestically produced or 
imported, to limit or discourage their consumption;  for instance, alcohol, tobacco (for social reasons), 
and petroleum (for environmental reasons). 
72. Sierra Leone currently had no legislation on sanitary and phytosanitary measures, but was 
seeking assistance to develop such legislation.  
73. With regard to the ban on fish exports to the European Communities, the EC and Sierra Leone 
authorities were working to resolv e the issue of compliance with European sanitary requirements.   
74. Sierra Leone planned to comprehensively review  and update its laws and regulations on all 
intellectual property rights (IPRs) in 2005.  It had to comply with the TRIPS Agreement by 
1 January 2006, except in relation to patents fo r pharmaceutical products, which had to be in 
conformity with the Agreement by 1 January 2016.  
75. The Ministry of Trade was currently seeking f unds to support the development of legislation 
on intellectual property rights.  In the event of delays in receipt of the necessary assistance, Sierra 
Leone would seek an extension from the TRIPs Counc il at the earliest opportunity in order to comply 
with the TRIPs Agreement.  
76. With regard to export registration and documentation procedures,  there were no general 
export licences except for specific goods and for sp ecific reasons.  The Government intended to 
shorten and simplify procedures by implementing th e recommendations of an on-going administrative 
barriers study.  
77. Sierra Leone had recently enacted the Public  Procurement Act 2004, which contained new 
threshold levels.  Sierra Leone would cons ider acceding to the Agreement on Government 
Procurement after it had fully assessed the balance of its commitments under the Single Undertaking, 
its resource capacities to effectively participate in  the WTO, and the approach of other LDCs to 
accession. 
78. The requirement in Sierra Leone’s Investment Promotion Act for 60% local material input in 
agri-processing industries was to enco urage the expansion of sustainable agri-based industries.  Firms 
often needed particular incentives to go beyond seco ndary processing, such as packaging and drying 
of raw materials.  Industries that did not comply with the minimum value-added requirement were not WT/TPR/M/143 
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 able to benefit from those incentiv es.  These facts should be taken into account in considering the 
compatibility of this incentive with the provisions of the TRIMs Agreement. 
79. The discussant
 requested additional information on tec hnical assistance issues, such as the 
support required for the establishment of a mission in Geneva, and the internet connectivity for the 
WTO Reference Centre in Freetown.  He sought comments on the situation on land ownership, which 
was a serious consideration for entrepreneurs. 
80. The representative of the European Communities  added that a Programme to strengthen 
health conditions for fishery products in ACP countries was launched in December 2002.  This 
programme had a total budget of € 44.5 million.  Fo r Sierra Leone, a two- to three-year technical 
assistance programme, comprising training, equipmen t, and other support, would begin in March 
2005. 
81. The representative of the United States  reiterated that the United States would welcome any 
request for assistance in drafting legislation and implementing the required TRIPS protection, prior to 
the expiry of the transition period for LDCs.  He asked on whether the excise tax was applied to both 
domestic and imported goods, a nd how it was levied on domestically produced goods.  
82. The representative of the Sierra Leone  replied that land ownership w as a very important issue.  
A draft bill was about to be sent to Cabinet of Mini sters to address issues raised by various investors 
requiring a land.  In addition, a section in the study on administrative barriers to investment was on the issue of land ownership, and there was alrea dy a mandate from the Cabinet of Ministers to 
implement the recommendations of the study. 
83. Concerning the discussant's question on technical assistance needs, a request had been made 
to the Swiss Government for the opening of a mi ssion in Geneva.  The Reference Centre needed 
broadband Internet connectivity and a genera tor to ensure continuous power supply. 
84. The excise tax was levied at the point of sal e, and was applicable to both domestic and 
imported goods.  
(iii)  Sectoral issues  
85. The representative of Sierra Leone
 indicated that her country  was seeking assistance from 
development partners for an impact study on liberalization of various services sectors. 
86. Various factors constrained the development of power supply in Sierra Leone. Among the 
efforts to address these constraints was the Bumbuna  hydro-electric dam, which was to be completed 
in early 2006, and should assure unrestricted supply. 
87. Micro-finance, one of the instruments for poverty reduction of the PSRP, was provided by 
both the State and individual NGOs.  The government  programme involved micro-credit in the form 
given to disadvantaged women and young people at a comparatively low interest rate.  The average recovery rate of the loans was over 60%.  In 200 4, the Government had developed a national micro-
finance policy, to be supervised by  the Central Bank of Sierra Leone. 
88. The insurance industry in Sierra Leone was sm all and vibrant (seven private companies and 
three public companies).  The Insurance Act 2000 a nd the establishment of the Insurance Commission 
had helped to improve efficiency in this subsector.   
89. Regarding telecommunications, Sierratel would be privatized under a programme spanning 
2005 to 2010.  A telecommunications bill was be ing drafted and would soon be enacted.  The  WT/TPR/M/143 
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 legislation would provide for the licensing of teleco ms operators and for the promotion of universal 
basic telecoms services; as well as for fair competition.  
90. Sierra Leone would consider the merits of i nvesting (in the medium-to long-term) in its own 
shipping fleet in order to facilitate exports of co mmodities; this was a potential area for entry by the 
private sector.  
91. The vision of the Ministry of Tourism was to  encourage a decentralized, well coordinated, 
competitive industry. Tourism was important for providing job opportunities over a wide range of 
skill levels.  A range of measures had been adopt ed, to improve the competitiveness of the industry 
and encourage both local and international investors in the tourism sector.  
92. There was no legislation on distribution services, and no restrictions on foreign service 
suppliers in the subsector.  WT/TPR/M/143 
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 VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
93. This first Trade Policy Review of Sierra Leone  has provided us with a better understanding of 
Sierra Leone's trade and related policies and of the challenges it faces.  Our dialogue has been 
thorough and comprehensive, stimulated by the fu ll and open engagement of the high-level Sierra 
Leonean delegation, as well as the insightful comme nts made by the discussant, and the thoughtful 
interventions by Members. 
94. Members commended Sierra Leone for its economic  stabilization and structural reforms since 
the end of civil unrest in 2002.  They noted that  the consolidation of peace, sustainable economic 
development and poverty alleviation remained form idable challenges, as did elements of governance 
and certain structural disadvantages.   
95. Members emphasized the importance of trade as a tool for development and underlined the 
importance of the Integrated Framework and othe r cooperation initiatives.  Sierra Leone does not 
benefit fully from its WTO Membership as the poli tical situation and its own institutional capacity 
constraints does not always allow it to identif y and/or exploit opportunities.  Several Members 
indicated that despite their direct or indirect c ontribution in providing technical assistance to, and 
promoting trade with, Sierra Leone, progress in its in tegration into the multilateral trading system has 
been slow.  Many Members underlined their commi tment to continuing to provide trade-related 
technical assistance to Sierra Leone. 
96. Members acknowledged Sierra Leone's efforts to simplify its  customs tariff structure and 
harmonize it with that of other ECOWAS members that now apply the West African Economic and 
Monetary Union's (WAEMU) Common External Tari ff.  Members noted that an ECOWAS Common 
External Tariff was expected to be in place as of 1
 January 2008.  Clarification was sought on the 
legal status of ECOWAS provisions vis-à-vi s WTO provisions in Sierra Leone's regulatory 
framework.  Members expressed appreciation that a ll tariff lines are bound.  They noted the use of 
additional levies and charges, as well as refere nce values, for customs valuation purposes.  
97. In the light of its recent economic performance, Sierra Leone was encouraged to move ahead 
in implementing structural reforms, including privat ization, to increase infrastructure- and health-
related budgetary expenditures as well as to alleviate poverty. 
98. Members noted Sierra Leone's dependence on diamonds and agricultural commodities.  
Members acknowledged the adoption of a new Inv estment Promotion Act and interim rules and 
regulations for government procurement.  Th ey commended the introduction of a mandatory 
certificate of origin (Kimberley process) for diamond exports. 
99. Members sought further clarification on: 
• macroeconomic policy issues; 
• investment incentives; 
• national standards; 
• inter-regional integration process; 
• ECOWAS-related matters; 
• customs valuation and preshipment inspection; 
• technical barriers to trade; 
• protection of intellectual property rights; 
• privatization plans; 
• diamond sector reforms; 
• GATS commitments and services sector liberalization;  WT/TPR/M/143 
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 • issues in financial, telecoms, energy, transport and tourism services;  and 
• technical assistance needs and Trade Policy Clinics experience. 
100. Members appreciated the replies provided by the delegation of Sierra Leone, and looked 
forward to further responses and clarifications. 
101. In conclusion, I believe that through this Review we have come to a fuller and better 
appreciation of the progress made by Sierra Leone in  recent years, and of the development challenges 
that lie ahead.  The number of advance questions, the active discussion, and the level of attendance 
indicate the importance attached by Members to this Trade Policy Review, which allowed both Sierra Leone and participating Members to improve their understanding on certain policy issues.  I 
encourage Sierra Leone to pursue the implementa tion of its reform programme, with a view to 
enhancing the transparency, predictability, and cred ibility of its trade regime, and adherence to the 
WTO principles.  But let me put this into context.  Sierra Leone faces real constraints:  thus, technical 
assistance from the WTO and other relevant organizati ons is essential;  Sierra Leone's needs in this 
regard have been well identified in the Secretariat Report and we should endeavour to meet them.  In 
addition, trading partners can help by ensuring th at their markets are open to products from Sierra 
Leone, and by further exploring opportunities to assist it in fulf illing its development objectives. 
 
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