WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/143/Add.1 
29 March 2005 
 (05-1262) 
Trade Policy Review Body 
9 and 11 February 2005 Original:  English/ 
                 anglais/                  inglés 
  
TRADE POLICY REVIEW 
SIERRA LEONE 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Mrs. Puangrat Asavapisit (Thailand) 
 This document contains the advance written qu estions, and replies provided by Sierra Leone.1 
__________________________________________________________________________________  
Organe d'examen des politiques commerciales 
9 et 11 février 2005  
EXAMEN DES POLITIQUES COMMERCIALES 
SIERRA LEONE 
Compte rendu de la réunion
 
Addendum  
Présidente:  S.E.  Mme Puangrat Asavapisit (Thaïlande)  
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par la Sierra Leone.1 
__________________________________________________________________________________  
Órgano de Examen de las Políticas Comerciales 
9 y 11 de febrero de 2005 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
SIERRA LEONA 
Acta de la reunión
 
Addendum  
Presidente:  Excma. Sra Puangrat Asavapisit (Tailandia) 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Sierra Leona.1 
                                                      
1 In English and Spanish only/En anglais et espagnol seulement./En inglés y español solamente.     WT/TPR/M/143/Add.1 
   Page 3     
      
 
 
CONTENTS 
    P a g e   
ADVANCE WRITTEN QUESTIONS BY MEMBERS 5 
 RESPONSE FROM SIERRA LEONE 15 
 
 
 
    WT/TPR/M/143/Add.1 
   Page 5     
 
World Trade Organization 
Trade Policy Review of Sierra Leone 
February 9 and 11, 2005 
 
Advance written questions by Members
 
 
KENYA 
 
1. According to the WTO Secretariat Report priva tization is cited as a key element in Sierra 
Leone’s structural reform programme.  As of 2002, the authorities undertook to implement a 
programme drawn up by the National Commission for privatization and which has not been 
concluded to date.  Kenya woul d like to know from the Government of Sierra Leone the reason 
behind the slow progress in the implementation of this programme. 
2. External Debt burden which stood at 169.1% of the GDP in the year 2003 continues to 
constrain the ability of the Government in addressi ng economic and social challenges faced by Sierra 
Leone.  Kenya would like to know the steps being taken by the Governme nt of Sierra Leone to tackle 
its high external debt. 
3. Sierra Leone depends largely on the commodity exports of diamonds and minerals, and to a 
lesser extent coconut, cocoa and coffee for its expor t earnings.  The decline and instability of world 
commodity prices and resulting terms-of-trade lo sses continue to impact negatively on economic 
growth of Sierra Leone.  What steps are being take n by the Government of Sierra Leone to address the 
absence of export diversification? 
  
CANADA  
 
Report by the Secretariat (WT/TPR/S/143)
 
 
II.  Trade and Investment Policy Regime:  Framework and Objectives; (7) Foreign 
Investment Regime; Investment Promotion Act; Paragraph 43: 
1. Paragraph 43 states that Sierra Leone’s Investment Promotion Act , effective from August 
2004, covers all but a few sectors, and that additional special provisions for some sectors are contained in sector-specific Acts.  The report indi cates that “according to the authorities there are no 
restrictive or discriminatory provisions in these regulations”.  
 
 Recognizing that the Investment Protection Act  is readily available on the internet, could 
Sierra Leone confirm that the texts of each of the sector-specific Acts are also publicly  available to 
foreign investors and other interested parties?  
II.  Trade and Investment Policy Regime:  Framework and Objectives; (7) Foreign 
Investment Regime; Export Proces sing Zones; Paragraphs 48-50: 
2. Paragraphs 48-50 detail “e xport processing zones” in Sierra Leone, including the recent 
creation of a trade and industrial zone in connec tion with a joint-venture agreement between the 
Government of Sierra Leone and the Chinese- owned Henan Guoji Group Company.  The report 
indicates that “the zone and the facilities/structures wi ll be available for rent to both Chinese and other 
entrepreneurs, including Sierra Leonean”. 
 
a. Can Sierra Leone confirm that there will be no restrictions on the use of this zone and 
facilities by non-Chinese foreign firms and foreign investors?  WT/TPR/M/143/Add.1 
Page 6  
 
b. Are there any plans in place for the construction of similar zones or facilities at which 
there will be restrictions on foreign participation? 
 
Part III. Trade Policies and Practices by Measure;  (4) Measures affectin g production and trade; 
(iv) Intellectual property rights; Institutiona l issues and enforcement action; Paragraph 90 :  
 
3. Does Sierra Leone plan to provide a more adequate and effective enforcement of its law 
related to measures at the borders?  
Part III. Trade Policies and Practices by Measure;  (4) Measures affectin g production and trade; 
(iv) Intellectual property rights; Industrial Pr operty; Patents and Utility Models; Paragraph 92 :  
 
4. Does Sierra Leone plan to ratify the Harare Protocol?   5. Does the drafted Patents and Industrial Designs Act  cover agricultural and pharmaceutical 
products?  If not, could Sierra Leone explain why? 
 
Part III. Trade Policies and Practices by Measure;  (4) Measures affectin g production and trade; 
(iv) Intellectual property rights; Industrial property; Trademarks; Paragraph 98 :  
 
6. Canada notes that Sierra Leone drafted a ne w legislation on patents and designs, and plans to 
do the same with trademarks.  Could Sierra Leone  indicate when these new legislations are intended 
to come into force?    
Part IV. Trade Policies by Sector; (5) Servic es; (ii) Overall commitments under the General 
Agreement on Trade in Services; Paragraph 68: 
 
7. Canada notes that Sierra Leone has not co mmitted to the basic telecommunications services, 
value-added services and the additional commitments of  the Reference Paper. Canada also notes that 
Sierra Leone intends to carry out an assessment of its comparative advantage in trade in services, and 
any impact liberalization will have on the economy.   
a. Could Sierra Leone please provide Canada with a general update on the assessment of 
its comparative advantage in trade in services? 
b. Does Sierra Leone foresee any major changes to its position with respect to taking 
commitments regarding basic telecommunications services, value-added services and the additional commitments of the Reference Paper? 
 
c. Does Sierra Leone have any inten tion to offer commitments for the 
telecommunications services sector in the current round of GATS negotiations? 
 
Part IV. Trade Policies by Sector; (5) Servic es; (iv) Telecommunications; Paragraph 79: 
 
8. Canada is pleased that Sierra Leone has put Sierratel on the list on entities to be privatized for 
third quarter of 2004. Could Sierra Leone please prov ide Canada with an update on the privatization 
of Sierratel? 
 
Part IV. Trade Policies by Sector; (5) Servic es; (iv) Telecommunications; Paragraph 80: 
 
9. Canada notes that Sierra Leone is currently  working on a Telecoms Bill that will establish a 
regulatory body and provisions on universal servic es obligations (USO). Could Sierra Leone give 
Canada an update on the development of this Telecoms Bill?      WT/TPR/M/143/Add.1 
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JAPAN 
 
<Report by Sierra Leone
 (WT/TPR/ G/143/Rev.1 )> 
I. Economic Performance and Outlook (Page5, para.2) 
 
 Japan sincerely hopes for the recovery and de velopment of Sierra Leone, based on peace. In 
this regard, the Report by Sierra Leone states that Sierra Leone’s development policy, set out in the 
National Recovery Strategy (NRS), is captured in  VISION 2025 with the view of a “United People, 
Progressive Nation, Attractive Country”. 
 
1.  Concerning the recovery and developmen t of Sierra Leone, please indicate the specific 
content and schedules of the National Recovery Strategy (NRS) and VISION 2025, including the 
mining and agricultural sectors, both of which are pa rticularly important for trade and economy, we 
consider.  
2.  Please indicate the specific areas for wh ich Sierra Leone needs assistance from donors, 
including the reasons. 
 
 
MEXICO 
 
IV.  POLÍTICAS COMERCIALES, POR SECTOR ES / 5) SERVICIOS / iii) Servicios 
Financieros/ a) Bancos y finanzas  
 
1. Párrafo 73 señala que a partir  de 2003 el Banco de Sie rra Leona estableció bancos 
comunitarios para mejorar el sistema financ iero, proporcionando apoyo al programa de micro-
financiamiento del Gobierno. ¿México tiene interés de conocer en qué consis te el programa de micro 
financiamiento, cómo ha funcionado y si ha res pondido a las expectativas originales. Lo anterior, 
debido a que se menciona que el sector financ iero ha padecido severas ineficiencias que han 
provocado altos costos de los intermediarios financieros y han limitado la viabilidad del 
financiamiento para la inversión en las pequeñas y medianas empresas. (Párrafo 75)  IV.  POLÍTICAS COMERCIALES, POR SECTOR ES / 5) SERVICIOS / iii) Servicios 
Financieros/ b) Seguros  
 
2. Párrafo 77 relativo a los seguros, en 2000 se creó el marco legal de este sector a través de la 
“Acta de Seguros”, así como de la “Comisión de Seguros”, sin embargo, no mencionan cómo se ha 
desarrollado el sector y si han funcionado est os mecanismos. ¿Podrían proporcionar mayor 
información sobre seguros?  
IV. POLÍTICAS COMERCIALES, POR SE CTORES / 5) SERVICIOS / iv) 
Telecomunicaciones  
 3. En el párrafo 79 se indica que dentro del pro ceso de privatización se encuentran la empresa 
Sierratel que monopoliza el mercado de las tel ecomunicaciones con excepción del servicio de 
telefonía celular.  Podrían describir el grado de apertura actual del sector telecomunicaciones? Se estimó que para finales de 2004 se privatizaría la em presa Sierratel. ¿Se llevó a cabo la privatización y 
de qué manera se reestructurará la empresa? 
 
  
 WT/TPR/M/143/Add.1 
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IV.  POLÍTICAS COMERCIALES, POR SECTORES  / 5) SERVICIOS / v) Transporte a) 
Transporte  Marítimo 
 
4. El transporte marítimo es controlado por las firm as extranjeras de barcos y por lo tanto Sierra 
Leona no cuenta con una flota naci onal de barcos, con excepción del servicio de ferry. ¿Sierra Leona 
ha considerado solicitar asesoría técnica para la construcción de barc os a los organismos 
multilaterales o a nivel bilateral, a fin de contar  con una flota de barcos  propia que facilite la 
exportación de diamantes y minerales? 
  
UNITED STATES OF AMERICA 
 
 TRADE AND INVESTMENT POLICY REGIME:  FRAMEWORK AND 
OBJECTIVES 
  Overview
 
 1.   According to paragraph 2, page 16 of the Secretariat report, Sierra Leone was the first least-
developed country to benefit from a new trade facility, the Trade Policy Clinics.  
Please describe Sierra Leone’s experience with the Trade Policy Clinic. 
 
 Trade Laws and Regulations
 
 2.   Paragraph 16 on page 20 of the Secretariat Report states that Sierra Leone “authorities are of 
the view that ECOWAS provisions supersede WTO oblig ations; however, an atte mpt is being made to 
ensure that there is no inherent conflict between ECOWAS and WTO provisions...”   
    Please elaborate on the view of the authorities concerning the relationship between ECOWAS 
provisions and WTO obligations. 
 3.   According to paragraph 16 on page 20 of th e Secretariat report, Sierra Leone did not provide 
copies of its legislation implementing WTO provisions  to the WTO Secretariat prior to this review. 
 
A)  What legislation has Sierra Leone enacted to implement WTO provisions? 
 B)  Has Sierra Leone needed to enact legislation to implement ECOWAS membership requirements? 
 
C)  Is ECOWAS developing, on a regional le vel, any of the implementing regulations for 
WTO agreements that are automatically incor porated into Sierra Leone’s domestic law? 
  Foreign Investment Regime – Investment Promotion Act
 
 
4.   According to Paragraph 45 on page 26 of  the Secretariat Report, the revised list of fiscal 
incentives to be annexed to the 2004 Investment Pr omotion Act had not been passed by Parliament.  
 
A)  Was the revised list of fiscal incentives passed by Parliament subsequent to the 
preparation of the Secretariat report?  
 B) Please describe the fiscal incentives that were  approved or are under consideration by the 
Parliament.  
    WT/TPR/M/143/Add.1 
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 TRADE POLICIES AND PRACTICES BY MEASURE 
 
 Measures Directly Affecting Imports – Pre-Shipment Inspection and Customs Valuation –
 
Pre-Shipment Inspection  
 5.   Paragraphs 11-14 on pages 33 and 34 of the Secretariat report describe Sierra Leone’s 
mandatory pre-shipment inspection regime for a ll goods with a minimum value of U.S. $2000 fob, 
with certain exceptions.  There is a 1.10 percent ad  valorem inspection charge payable by the importer 
for most products and a 0.25 percent ad valorem ch arge for rice.  Of this amount, 0.10 percent is 
transferred to the Consolidated Revenue Fund of  the Government of Sierra Leone.  GATT Article 
VIII provides that all fees and charges imposed in connection with importation or exportation shall be 
limited in amount to the approximate cost of th e services rendered and shall not represent taxation of 
imports or exports for fiscal purposes.  
Please explain the basis for establishing an ad valorem charge. 
 
 Measures Directly Affecting Imports – Pre-Shipment Inspection and Customs Valuation –
 
Customs Valuation  
 
6.   According to paragraph 15 on page 35 of the Secretariat Report, Sierra Leone is applying the 
Brussels Definition of Value and is using minimum and/or reference values for rice, flour, sugar, 
cement, plastic slippers, used clothing and used clothing accessories.   While it appears from the Secretariat report that a considerable amount of te chnical assistance has already been provided, there 
has been no customs valuation notification nor was a date of implementation or implementation action 
plan available as of the time of the preparation of the Secretariat Re port.  Since 29 March 2004, Sierra 
Leone’s PSI contractor has been expected to assi st the Customs & Excise department in acquiring 
basic knowledge and equipment to facilitate the implementation of the WTO Customs Valuation 
Agreement.    
A) Please summarize the progress Sierra Leone h as made to date towards implementing the 
Customs Valuation Agreement. 
  B) How has the technical assistance affected progress towards implementation? 
 
C) Does the assistance from the PSI service provider include development of  an action plan 
for the provision of training and equipment to facilitate implementation of the WTO Customs Valuation Agreement?  If so, please describe. 
  Measures Directly Affecting Imports – Tariffs and Other Duties and Taxes on Imports –
 
Other Duties  
 7.   The Secretariat Report summarized in para graph 31 on pages 41 and 42 Sierra Leone’s 
imposition of excise taxes on a variety of importe d goods to protect “local industries producing the 
same or similar products.”  Excise taxes are generally considered inte rnal taxes, which are subject to 
the national treatment requirement of GATT Article III .2.  However, we also note that in paragraph 27 
of page 39 of the Secretariat report, Sierra Leone has included a 30 percent excise tax in its bindings 
for duties and other charges.  
A) Please clarify whether the excise tax is an internal tax or an “other duty charge.”  
 
B)  Please identify any imported goods, other th an those identified in paragraph 31 of the 
Secretariat report, that are subject to the excise tax. 
  WT/TPR/M/143/Add.1 
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  Measures Directly Affecting Imports – Sta ndards and Other Technical Requirements –
 
Sanitary and Phytosanitary Measures  
 8.   Paragraphs 60-63 on page 50 of the Secret ariat Report provides some background on Sierra 
Leone’s SPS regime.  However, Sierra Leone has not yet notified the WTO of its sanitary and 
phytosanitary legislation.   At the earliest possible date, please provide copies of relevant SPS legislation to the SPS Committee. 
 
 Measures Directly Affecting Exports – Registration and Documentation
 
 9.   Both the Secretariat Report and the Gove rnment Report detail Sierra Leone’s growing trade 
balance deficit and Sierra Leone’s desire to a ttract export-oriented investment.  For instance, 
paragraph 55 on page 17 of th e Government Report mentions the establishment of the Sierra Leone 
Export Development and Investment Corporation (SLEDI C) to provide a one-stop shop for investors.   
However, the Secretariat Report states in paragrap h 64 on page 50 “all goods exports are subject to 
lengthy, complicated procedures.”  Table III.5 on page 51 summarizes Sierra Leone’s export 
registration and documentation requirements.  
A) Does SLEDIC facilitate expor t registration and documentation requirements?  If so, how 
effective has it been in reducing the time n ecessary to obtain necessary export registration and 
documentation for investors? 
 
B) Is Sierra Leone considering the reducti on of its export registration and documentation 
requirements?  
  Measures Affecting Production and Trade – Production Assistance
 
 10.   According to paragraph 83 on page 53 of  the Secretariat Report, Sierra Leone provides tax 
incentives to agri-businesses that meet a 60% local input or value-added requirement. 
 
 Please explain the rationale for the use of this  measure in light of the requirements of the 
Agreement on Trade-Related Investment Measures and the SCM Agreement (Article 3.1(b).   Measures Affecting Production and Trade – Intellectual Property Rights
 
 
11.   The United States appreciates Sierra Le one’s commitment to deve lop policy and laws on 
intellectual property rights, in order to be TRIPS co mpliant by 2006.  Sierra Leone’s copyright law is 
almost forty year old and is in need of revision, particularly to protect computer programs as literary works under the Berne Convention.  
 Please describe Sierra Leone’s action plan fo r bringing its copyright legislation into 
conformity with TRIPS by next year.  12.   Paragraph 90, page 54, of the Secretaria t Report states that “IPR rules on border measures 
were drawn up and included in the Copyright Act, 1965,” but that “due to a lack of means, there is no 
effective enforcement of this law.” 
 What strategies are being considered to enfo rce the law with the limited means available? 
  
    WT/TPR/M/143/Add.1 
   Page 11     
 
EUROPEAN COMMUNITIES 
 
Doing away with unnecessary external as well as in ternal impediments to trade is vital for the 
promotion of trade and development itself. To this end, the EC should like to pose the following questions to Sierra Leone. 
1. 
 TRADE IN GOODS  
 
 In the report prepared by the WTO Secretariat it is written on page 59 that the authorities of Sierra Leone aim to secure the delivery of basic f ood for the entire population by 2007. This should be 
achieved through the following policy objectiv es: increasing and diversifying domestic food 
production, increasing agriculture productiv ity, rural income and employment. 
 
−  What actions have been taken to implement these policy objectives? 
−  Could Sierra Leone please indicate what sectors would be considered for in the process of 
diversifying food production, and inform about the status of efforts to increase manufacturing of goods? 
−  In what way can Sierra Leone secure su stainable development when increasing the 
manufacturing of goods, i.e. how can Sierra Leone en sure adequate protection of the environment, 
while maximizing foreign exchange earnings from the agricultural sector? 
2.
  T RADE IN SERVICES  
 
 The EC notes the recent growth in the servi ces sector as a share of GDP and welcomes the 
priority attached to developing this sector in Sierra Leone’s trade policy.   
 Given the increasing importance of the services sector the EC would appreciate further 
information on sectors such as financial services, transport, telecoms and tourism. 
 Financial Services  
 
−  Could Sierra Leone describe the regulatory and supervisory arrangements currently in place, 
or planned, in respect of banking and insurance? 
−  Is direct branching by foreign banks and insurance companies allowed in Sierra Leone? 
 Telecoms  
 
−  Could Sierra Leone describe the current or  planned regulatory system for Telecoms? 
−  Does Sierra Leone plan to adopt the “Telecommunications Services Reference Paper”? 
 Tourism  
 
−  Is tourism likely to be a priority in the development of the services sector in Sierra Leone?   
−  Does Sierra Leone’s past experience in th is sector offer any insights for its future 
development?   
−  Does Sierra Leone have views on the relati onship between tourism and other services (eg 
construction, transport, computer services)? WT/TPR/M/143/Add.1 
Page 12  
 
−  Does Sierra Leone have views on the relations hip between tourism and public policy in such 
areas as security, culture, the environment and public services? 
−  Could Sierra Leone provide information on an y legislation applicable to tour managers 
(professionals accompanying groups) and tourist guides?  
 Distribution services
 
 
−  Could Sierra Leone provide in formation about any restrictions  on foreign service suppliers in 
the distribution sector? 
−  Could Sierra Leone provide information about existing legislation in this sector? 
 Transport  
 
−  Does Sierra Leone have any international ag reements on maritime cargo-sharing with other 
countries?  Does Sierra Leone have any other types of cargo reservation that be nefit national suppliers 
of maritime transport? 
 Investment Promotion Act  
 
−  The EC welcomes the new Investment Promotion Ac t of 2004. Is it now in force? What is the 
timescale for the implementation of its various provisions? 
3.  G OVERNMENT PROCUREMENT  
 
Referring to page 44, paragraph 41 in the report prepared by the WTO secretariat. 
−  Does Sierra Leone envisage becoming an observer of the WTO Plurilateral Agreement on 
Government Procurement? 
 On page 46, in the report prepared by the WTO Secretariat,  paragraph  49 states that there are 
5 procurement methods available for awarding cont racts for goods and public works and 2 methods 
for services contracts (all described in table III,4). 
 As regards International competitive bidding, th e estimated value indicated for thresholds of 
goods contracts is very high, as compared with in ternational standards (130.000 SDR in average for 
GPA members, i.e. 175.000$).  
−  Has the Sierra Leone government considered re ducing the threshold value when interim rules 
and regulations give way to the new compre hensive National Public Procurement Law?  
−  How much time is envisaged when it is stat ed that "the notification should offer bidders 
sufficient time to respond”? 
−  Concerning National competitive bidding, how lo w should the contract value be in order to 
trigger this procedure?  
−  Will the notification clearly state that inte rnational bidders may nevertheless compete?  
−  Regarding the advertisement of the notifica tion done on the internet, could Sierra Leone 
government provide some information: is it a centra lized Internet site?  Does it already exist and if 
yes, at which website? Is it in Spanish only?    WT/TPR/M/143/Add.1 
   Page 13     
−  Concerning Shopping bidding of goods and services,  how low should the contract value be to 
trigger this procedure?  
− Would the Sierra Leone government be willing to consider aggregating th is procurement method 
with the Limited competitive bidding, as they are very similar in nature? 
4.
  I NTELLECTUAL PROPERTY RIGHTS  
 
 According to the WTO Secretariat report page 54, Sierra Leone has been given an extended 
period of time for the full implementation of the Agreement on Trade-Related Aspects of Intellectual 
Property Rights (TPIPs). Further to this Sierra  Leone has recently requested assistance for the 
legislative reform process on protection of intellect ual property rights.  The EC fully supports the 
endeavours to enact legislation complying with th e Agreement on Trade Related Intellectual Property 
Rights (TRIPs), and should like to ask the following questions.  
−  Could Sierra Leone please clarify and give more  information on the state of play concerning 
this legislation?  Which actions have been taken so far, and which actions are foreseen? 
−  What timeframe is Sierra Leone looking at for the implementation of such legislation? 
5.
  T RADE POLICY STRATEGY  
 
−  How is the issue of trade being dealt within  Sierra Leone’s national strategies? Are the 
strategies based on the possibilities for advancing th e country’s development objectives in the context 
of increasing globalization through trade?  
−  As trade policy is integrated in the broade r context of the Poverty Reduction Strategy, how 
can trade issues be mainstreamed in development cooperation?  
−  The EC considers that the WTO and multilatera l liberalization is the most certain way for 
small countries to promote their interests. How do es Sierra Leone judge the relative importance and 
weight of bilateral/FTA policies and further deve lopment of the WTO system in terms of its own 
trade and development needs? 
−  A comprehensive reform and development plan could assist Sierra Leone in the upgrading of 
the capacity of the Government of Sierra Leone to  undertake it’s obligations in international trade 
related matters. Have any steps been taken to come up with such a plan, which could attract 
coordinated donor involvement? 
•  Currently both the Bank of Sierra Leone and Mi nistry of Finance are providing data trade but 
 their results are contradictory. Are measure s being taken to improve the availability of 
 reliable data on trade issues? 
•  How is the coordination between the Mini stry of Development and Economic Planning 
 responsible for ECOWAS and the Ministry of Trade and Industry responsible for WTO 
 matters ensured? Is the National Coordi nation Committee on Trade (NCCT) mechanism 
 working on a satisfactory way? 
−  As a member of ECOWAS, Sierra Leone is to implement the ECOWAS-free trade agreement 
in 2004, a CET in 2008 and a number of other provisions. What is the actual situation in this respect, what measures are to be adopted and what ar e the difficulties encountered by Sierra Leone? 
−  In the context of the EPA negotiations betw een the EU and ECOWAS, is there a National 
Committee in place in Sierra Leone? Are there any im pact studies, what are their main conclusions 
and recommendations? WT/TPR/M/143/Add.1 
Page 14  
 
−  According to the WTO Secretariat Report (pag e 71), Sierra Leone is seeking assistance from 
the EC’s PMU for the ACP States for an impact st udy on trade in services, before submitting any 
proposals in the Services negotiations.  Could Sierra  Leone please clarify and give more information 
on this?  Furthermore, are there areas related to trade where development cooperation should be 
improved and/or reinforced? 
BRAZIL
 
 
1.  According to the Secretariat Report, "depe ndence on increasingly expensive oil imports for, 
inter alia , electricity production and transportation c onstitutes, to some extent, a developmental 
constraint. A state monopoly is responsible for elect ricity generation, transmission and distribution". 
Moreover, "electricity tariff differentials penali ze industrial consumers, who are charged up to 30% 
higher rates than other consumers". To which extent  does the Sierra Leone's Government consider the 
privatization of the sector as a means to solve the pr oblems related to electricity? Is this penalization 
to the industrial sector preventing its development and, consequently, causing serious injury to the 
country’s development?  2.  Also according to the Secretariat Report, "sta te participation in certain activities continues, for 
example, in electricity, telecommunications and trans port, although privatization is considered a key 
element in Sierra Leone's structural reform programme ". It is also stated that there is no specified 
implementation dates for privatization. Does the Sier ra Leone's Government c onsider the privatization 
as an urgent matter?  3.  It is stated in the Secretariat Report that "complicated and lengthy procedures affect exports". 
How does the Government intend to simplify these procedures?    WT/TPR/M/143/Add.1 
   Page 15     
Response from Sierra Leone 
 Madam Chairperson, I would like to thank you as Chair, and the WTO Secretariat’s Trade Policy 
Review Division for your valuable assistance during Sierra Leone’s first trade policy review. May I 
also once again thank our discussant Dr Johannes Smeet s for his insight and contribution to the clarity 
of our report.  
 
Sierra Leone is heartened by the words of encour agement and support from delegations present at this 
meeting. We thank our colleagues for their comment s and questions. We take on board the valuable 
advice given to us that will enable us to successfu lly pursue efforts at the reform of our economy to 
support sustainable development.  
 
A number of questions have been addressed to us which we have carefully answered. Those questions 
which require further consultation w ith other national institutions will be responded to within a month 
of this TPRB meeting.   
Our responses to the questions from delegations  have been grouped under the following three 
headings:  
1. Economic Environment 
2. Trade Policies and Measures 
3. Sectoral Policies 
 
I. ECONOMIC ENVIRONMENT  
1. Macroeconomic policy developments 
(a) The National Recovery Strategy and the Vision 2025  
National Recovery Strategy 
The National Recovery Strategy (NRS) was prepared  in November 2002 to provide a national strategy 
for the recovery of the country at a time when th e resettlement of internally displaced persons (IDPs) 
and returnees was still on-going.  It was presented at  the Consultative Group meeting in Paris. The 
NRS contains four primary areas of intervention, while acknowledging important cross-cutting issues such as HIV/AIDS and preventive health care; youth; gender; and the environment. The four priority 
areas are: 
 
• Restoration of state authority 
• Rebuilding communities 
• Peace building and human rights 
• Restoration of the economy  
 Agriculture and mining are featured prominently in  the NRS because of the role they play in the 
contribution to the country’s economy and in trade.   
1. The primary objective of the government’s cu rrent agricultural strategy is to attain food self 
sufficiency, generate tradable surpluses a nd create employment to raise incomes.  
 Several strategies have been outlined to pursue these policy goals including: 
 
• Cropping intensification, by shifting away from low-yield upland farming to the development 
of irrigated double cropping and lowland cu ltivation (developed swamps, mangroves and 
boliland)  
 WT/TPR/M/143/Add.1 
Page 16  
 
• Cropping diversification, through the increased  cultivation of poor soil tolerant root and 
tubers, vegetables and pulses 
 
• Cash crop rehabilitation and expansi on of economically viable crops 
 
• Supply of appropriate inputs, such as improved seeds and other planting materials of local 
origin, agro chemicals, fertilisers and tools 
 
• Reduction of post harvest losses, through rehabilitation of destroyed infrastructure and 
promotion of practices supporting traditional storage preferences to store individually rather than communally  
 
• Livestock and poultry restocking, multiplication and breeding programme. Establishment of 
an effective animal health and extension service and rehabilitation of local food processing 
plants 
 
• Fisheries development (both coastal and riveri ne), through providing access to boats, fishing 
equipment, fish processing (smoking ovens) and cold storage facilities (on a cost recovery 
basis) and enforce protection of artisanal fishing zones 
 
• Agro-processing, through provision of processi ng equipment ( on a cost recovery basis) 
 
• Strengthening the Ministry of Agriculture, Fo restry and Food Security extension services, 
through technical refresher training of staff and rehabilitation and re-e quipping of extension 
posts 
 
• Rural financing schemes accessible to small farmers  
 
• Feeder road and riverine/maritime jetty  rehabilitation to increase access to markets 
 
• Support to agricultural association rather than i ndividual farmers and provision of agricultural 
training in the communities (e.g. through Farmer Field Schools)  
 
• Conservation of remaining forest reserves and planting of trees and forest crops 
 2. The main objective of the country’s mining policy is to progressively increase production, income, tax revenues and employment opportunities generated by the mining sector (both artisanal and 
industrial) and reduce illegal mining. 
 Government’s mining strategy focuses on:  
• Maintaining civil order in mining areas through the re-establishment and consolidation of its 
authority 
 
• Establishing a sound regulatory frame work for mining and marketing 
 The current priorities are to:  
• Ensure reduction in the number of illegal miners  
 
• Finalise and adopt a revised mining policy, prepared in close collaboration and with 
assistance from the World Bank, DFID and USAID. The strategy will include the establishment of an operational framework, wh ich promotes formal artisanal diamond mining    WT/TPR/M/143/Add.1 
   Page 17     
activity and creates an enabling environment to  attract private investment for medium and 
large scale mining 
 
• Support the immediate reactivation of current mining leases, including reactivation of rutile 
and bauxite mines, encourage investors to engage in small-scale artisanal diamond mining 
projects in partnership with local commun ities and facilitate investors operations by 
simplifying the licensing procedures, sensitisation of communities and recommend the waiver 
of customs duties on the importation of mining equipment.  
 
Vision 2025 
The national vision that is presented in Vision 202 5 portrays a realistic, achievable and desirable 
future that should become the basis for nationa l development. The vision provides a long term 
development strategy for the country. It also gi ves stakeholders a unique collective opportunity to 
think about correcting past mistakes and building a better future. The key strategic issues for the 
attainment of Sierra Leone’s vision are:  
• How to attain a competitive private secto r-led economy with effective indigenous 
participation 
• How to create a high quality of life for all Sierra Leoneans 
• How to build a well educated  and enlightened society 
• How to create a tolerant, stable, secure and we ll-managed society based on democratic values 
• How to ensure sustainable exploitation and eff ective utilisation of our natural resources, while 
maintaining a healthy environment 
• How to become a science and technology driven nation 
 Each of the six strategic issues has specific actions attached to it.  
 
a) How to attain a competitive private secto r-led economy with effective indigenous 
participation 
 
• Develop socio-economic infrastructure (energ y, water and sanitation, roads network) 
• Improve the economic environment  
• Reform the financial sector 
• Encourage indigenous ownership of business 
• Improve internal and external trade 
• Develop a strong industrial base a nd strengthen production linkages 
• Stimulate regional integration 
 
b) How to create a high quality of life for all Sierra Leoneans 
 
• promote a healthy society 
• attain food security and adequate nutrition 
• provision of decent and affordable housing 
• promote gender equality and mainstreaming 
• 
provide support and equal opportunities to th e disabled and other vulnerable groups 
• create employment opportunities 
 
c) How to build a well educated  and enlightened society 
 
• support basic education in the formal and non-formal sub-sectors 
• train educational sector personnel 
• strengthen administration and management of the educational system 
• construction and rehabilitation of schools WT/TPR/M/143/Add.1 
Page 18  
 
 
d) How to create a tolerant, stable, secure and we ll-managed society based on democratic values 
 
• promote good governance a nd national reconciliation 
 
e) How to ensure sustainable exploitation and e ffective utilisation of natural resources while 
maintaining a quality environment  
 
• promote sustainable natural resource exploitation and utilisation 
• promote effective town and country planning 
• promote tourism, cultural heritage and recreation 
 
f) How to develop a science and technology driven nation 
 
• encourage and improve the teaching of science and technology at all levels of 
education 
• improve science and technology to increase productivity in all sectors of the 
economy, including the informal sector 
• improve the use of science and technology to  facilitate decision making at all levels 
of society  
 (b) Sierra Leone’s External Debt 
All external debt is addressed in Sierra Leone w ithin the HIPC initiative. Sierra Leone is receiving 
debt relief from key creditors including the IMF,  African Development Bank, the World Bank, the 
European Investment Bank and the European Union. Sierra Leone is fully meeting its debt service 
obligations. In order to reduce the weight of debt, the Government of Sierra Leone in contracting new 
loans is looking as much as possible for concessions . In the Poverty Reduction and Growth Facility, 
there is a grant element of 35% and above. The G overnment of Sierra Leone is also avoiding 
contracting short term loans; instead it seeks to contract loans of 10 years or more with concessions. All the loans taken on by the Government of Sier ra Leone are geared towards alleviating poverty. 
Indebtedness towards commercial creditors will be  addressed at the end of the completion point. 
 
(c) Inflation 
The Bank of Sierra Leone does its best to contro l inflation. Inflationary pressures have recently 
resurfaced around the world after being contained at low levels in mid 2003. This has mainly been 
due to higher oil prices. Some other factors that pr oduce inflationary effects which tend to be outside 
the control of the central bank include, increased international shipping charges, reduced budgetary 
support, and depreciation of the US dollar against major currencies.  
 
2. Sierra Leone’s Privatisation Programme  
The Government of Sierra Leone considers the privatisation process to be a key aspect of its 
development strategies. Another important elemen t is the establishment of appropriate regulatory 
frameworks and competition policies to enable priv atisation to proceed efficiently. The Strategic 
Action Plan on Privatisation did not receive suffici ent funds from donors to enable the Government of 
Sierra Leone to implement the programme as schedul ed in its timetable. A revised programme has 
been drawn up with an extended timescale of Decem ber 2010. The Government of Sierra Leone is 
negotiating with donors including DFID, the Worl d Bank and UNDP about the resources to be 
earmarked for the implementation of the progra mme. The revised programme will be published and 
available to the public by the end of the first quart er of 2005. The following enterprises are slated for 
privatisation in 2005: the Sierra Leone Produce Marketing Board, government shares in Rokel    WT/TPR/M/143/Add.1 
   Page 19     
Commercial Bank; the National Development Bank; a nd management contracts will be developed for 
both the Sierra Leone Road Transport Cor poration and the National Power Authority. 
 The process for the privatisation of the Sierra  Leone Telecommunications company (Sierratel) 
involves the development of a strategy and legisla tion from 2004 to 2005, the determination of private 
sector options between 2005 and 200 6, the selection of preferred investors from 2006 to 2007, the 
establishment of a regulator between 2004 and 2006 a nd the elaboration of a regulatory regime from 
2005 to 2010.   Our privatisation process is now closely linked with  the implementation of the PRSP. In the case of 
our utilities, such as the National Power Authority, we recognise that privatisation could solve some 
of the problems in the sector, assuming the nece ssary regulatory and competitive frameworks are in 
place. The NPA will be privatised through a manage ment contract; the out-sourcing of management 
control we hope will provide a more internati onally competitive approach, and the necessary 
investment in vital infrastructure to enable improved service delivery.   3. Investment Promotion/Foreign Investment Regime 
The Investment Promotion Act 2004 will soon be publis hed on the internet. It is intended that as 
Sierra Leone’s technological infrastructure improves,  most of the sector-specific acts will also be 
publicly available either on the government website or on the CD-ROM, The Sierra Leone 
Encyclopaedia  which is published annually jointly by th e Sierra Leone Information Service and the 
UN. All Acts of Parliament are available to the public from the respective sectoral Ministries or by 
purchase at the Government Bookshop. 
 The package of incentives a ttached to the Investment Promotion Act 2004 is being finalised by the 
government and will soon be enacted by Parliament. Implementation of some provisions in the Act 
has started. For instance the establishment of the one stop customs clearance mechanism which allows 
for clearance of goods within one day. The one stop-shop for business registration in SLEDIC now 
guarantees registration within 7 days. The Ministry of Trade has commissioned a study on administrative barriers to investment in Sierra Leone and as part of this study an institutional 
restructuring plan for SLEDIC will be developed. It is planned that by the end of 2005 a restructured 
SLEDIC will be better placed to act as a one-stop-shop and also promote investment.  
The government is putting measures in place to broade n the tax base, for instance the creation of non-
tax revenue (e.g. fees for immigration, marine resources, etc). Moreover, the incentives in the 
Investment Promotion Act will likely attract in the medium term new investments which will add to government’s revenue base, in the form of  capital gains tax, income tax, etc.  
 4. Economic Diversification  
Sierra Leone is keen to diversify its exports  and reduce its dependency on a single commodity 
(diamond exports). We recognise that a robust and vibr ant private sector is the key to lifting Sierra 
Leone out of poverty and into sustainable economic development. We see great potential in the agro-
processing, fisheries, and tourism sectors, in par ticular.  Already there are a number of initiatives 
which we believe will bear fruit for our producers in the near future.  
 
• With the help of UNIDO we have commenced the implementation of a 3-year integrated 
programme for the development of SMEs thr ough the establishment of growth and production 
centres in each district, that will open up tr ade and investment for rural communities  
 
• With help from UNDP and DFID, small and medium  enterprises will be trained in a variety of 
skills, so they can take advantage of market ope nings in the US under the African Growth and 
Opportunity Act, in the EU under the Everyt hing but Arms initiative and in the ECOWAS WT/TPR/M/143/Add.1 
Page 20  
 
sub-region. One reputable Sierra Leone textile and garment company is already in advanced 
discussions with a US based firm to enter into  a joint venture for the production of garments 
in Sierra Leone for export to the US and other markets. 
 
• The Centre for the Development of Enterpri se is assisting small producers in secondary 
processing of fruits and vegetables, fish and fish  products and meat a nd meat products.  We 
have embarked on a nation-wide sensitization programme for the cultivation of cashew nuts 
in the country for export. The Ministry of Trade and Industry, and the Ministry of Agriculture, Forestry and Food Security and the Ministry  of Development and Economic Planning are 
seeking support from the Commonwealth Secretariat, FAO, IFAD, UNIDO, EU and WFP for nationwide propagation/cultivation of cashew, and to secure technical assistance for training, 
provision of light equipment and machinery as well as a technical adviser for the agro-
processing project.  
 
• The International Trade Centre is assisting gi nger farmers in the cultivation and processing of 
ginger. 
 
• A Sierra Leone company is completing the setting up in Freetown of a large scale industry in 
the production of vegetable oil for the domestic and export markets. 
 
• The new Industrial Zone established under a joint venture with a Chinese company will house 
about twenty domestic and foreign businesses engaged in production and export of value-
added products for regional a nd international markets.  
 
• The recent search for deep sea oil in the ex clusive economic zone of Sierra Leone has 
indicated very good prospects. To this end, th e Government is inviting credible companies to 
participate in the bid process for exploration and exploitation.  
 
• The Government of Sierra Leone has signe d a lease agreement with a Chinese private 
company for the establishment of a factory to  assemble tractors and other agricultural 
equipment for both the local and regional markets. 
 
• In addition, under the Investment Code, there is  a package of measures that will seek to build 
capacity among local entrepreneurs so they can develop quality products that will compete in the domestic, regional and international markets.  
 Taken together with the policy framework that we  anticipate will be in place by the end of 2005/mid 
2006, we believe that these measures will contribute to export diversificati on and help balance the 
Sierra Leone economy in favour of mo re value-added goods and services.  
 
The Government of Sierra Leone is encouraging the production of other food crops such as cereals, 
vegetables, tubers including cassava, potatoes and yams. Food production is be ing diversified through 
the following measures:  
• Establishment of the Right to Food Secretaria t which works closely with the Ministry of 
Agriculture, Forestry and Food Security 
 
• A national sensitisation programme on the need for increasing food production 
 
• Purchase and distribution of a number of tractor s to organised farming communities in rural 
areas  
    WT/TPR/M/143/Add.1 
   Page 21     
• Hire purchase schemes through which large scal e farmers and cooperative societies can 
acquire their own tractors 
 
• Solicitation of funding for the nationwide pr opagation and cultivation of cashew nuts and 
ginger which have a huge export potential 
 
• Encouragement of research into the production of  improved varieties of food crops, e.g. the 
Nerica variety of rice 
 
II. TRADE POLICY FRAMEWORK AND MEASURES 
1. Trade Policy and Strategy  
Sierra Leone is still in the process of developing its trade policy and strategy within the context of its 
domestic needs, and its regional a nd international obligations. The government is keen that Sierra 
Leone should benefit from the advantages of globali zation through trade. It is important that the 
process of developing our trade policy framework is a considered one. We believe this trade policy 
review makes a major contribution to the pro cess of reviewing and updating our trade policies. 
 (a) Trade and Development  
The government of Sierra Leone considers trade liber alisation and private sector development to be 
key facets of the growth and economic development of Sierra Leone. The PRSP, the main document 
for tackling poverty in the country and assuring a su stainable future for the citizens of Sierra Leone, 
contains a sub-pillar on trade liberalisation and priv ate sector development. As much as possible, 
trade is mainstreamed into the developmen t agenda through the PRSP. The PRSP will be 
implemented by the government of Sierra Leone in partnership with its deve lopment partners. It is 
important that development coopera tion activities ensure that the strategies contained in the PRSP for 
private sector development are implemented by the earliest possible date. The Government of Sierra Leone in collaboration with devel opment partners intends to hold a private sector forum at the next 
Consultative Group meeting.    Sierra Leone has yet to fully benefit from trade liberalisation due to its lack of resources and its 
inherent supply side constraints. Our trade and development needs require a much more systematic 
analysis, and strategies that foster competitiveness a nd private investment. It is very important that 
Sierra Leone engages much more closely within ECOW AS and is able to deal decisively with supply 
side constraints at the same time as it embarks on further liberalisation. Sierra Leone is committed to a multilateral trading system which operates within a rules-based structure that is equitable and 
predictable.  
 
The Government of Sierra Leone is still de veloping proposals for the implementation of a 
comprehensive reform and development plan. The British Government through DFID is committed to 
providing technical assistance to the Ministry of  Trade to develop a private sector development 
strategy and programmes that will include trade relate d issues. A technical expert within the Ministry 
is developing terms of reference for preparation of this comprehensive PSD strategy. At the same 
time, Sierra Leone has been deemed eligible to  participate in the Integrated Framework which 
envisages the elaboration of a comprehensive package of trade related technical assistance from development partners through the Diagnostic Trad e Integration Study (DTIS) and Action Matrix.  
 
(b) Institutional Coordination  
The unreliability of trade data from different agencies is viewed by the Ministry as a pressing 
problem, which hinders the ability to plan and im plement programmes and projects. The Ministry’s 
Policy Planning and Research Divisi on is now liaising with the Fore ign Trade Statistics Section of WT/TPR/M/143/Add.1 
Page 22  
 
Statistics Sierra Leone which gathers data from all agencies. The computerisation of the Customs Department of the National Revenue Authority (NRA) and the adoption of the ASYCUDA system 
will greatly improve the reliability of trade data. The Ministry of Trade is currently seeking funds to establish its own trade information data base in orde r to enhance its coordina tion with other agencies 
on trade data.  
 
The Ministry has established the National Coordi nating Committee on Trade (NCCT), which requires 
support to enable it to play its intended role. The Ministry has establis hed a desk for ECOWAS 
matters and a sub-committee within the NCCT has been  established to deal with the negotiation of the 
Economic Partnership Agreement (EPA) and ECOWAS trade issues.  A national committee has also 
been put in place for the EPA negotiations. There is  also a team of EPA Chief Negotiators selected 
from the representatives of the  Ministry of Trade, the Ministry of Development and the Ministry of 
Foreign Affairs. An impact study of the EPA on Sierra  Leone is due to be conducted this year with the 
support of the EU. The terms of reference have alre ady been prepared and th e Government is awaiting 
final approval from the Programme Management Unit in Brussels. 
 
2. Export processing zones 
The industrial zone established th rough the joint venture between the Government of Sierra Leone 
and the Hennan Guoji company provides space for tw enty business outlets on a first-come-first-served 
basis. The industrial zone is open on the same term s to both domestic and foreign investors. There are 
no restrictions on the use of the industrial zone by any other non-Chinese firms or foreign investors.  
 There are plans for the construction of similar export processing zones or facilities and they will be open to all investors both foreign and domestic on the same terms. 
 3. The Economic Community of West African States (ECOWAS)  
(a) ECOWAS/WTO 
Sierra Leone wishes to clarify its position on its  membership of ECOWAS and the WTO. Sierra 
Leone considers itself bound by its contractual ob ligations to the package of WTO Agreements 
known as the ‘Single Undertaking’. Sierra Leone co mplies with its WTO obligations which recognise 
the right of WTO Members to be members of regional groupings. It is this right under the enabling 
clause and GATT Article 24, which Sierra Leone exercises in its membership of ECOWAS. Sierra Leone together with other ECOWAS countries will s eek to complete the notification process for the 
recognition of ECOWAS by the WTO.   (b) Implementation of ECOWAS law  
Sierra Leone has ratified 34 out of 38 ECOWAS Prot ocols and Conventions through an instrument of 
ratification. Sierra Leone has not needed to enact specific legislation to implement ECOWAS 
obligations. However, Sierra Leone is yet to fu lly implement the provisions of the ECOWAS Trade 
Liberalisation scheme. The main difficulty for Sie rra Leone is revenue concerns and supply side 
constraints. The manufacturing base in the country is very small compared to its key trade partners.  
 
ECOWAS is not yet developing any implementi ng regulations for WTO agreements. However, 
ECOWAS is considering issues such as anti dumping in the context of WTO obligations.   (c) ECOWAS Common External Tariff (CET) 
A study on the impact of the CET has been conduc ted, which recommended that Sierra Leone should 
implement the CET by 2008. The adjustment of tari ffs to the CET will therefore be implemented in 
three phases with the first phase commencing in January 2005. The adoption of the CET from January    WT/TPR/M/143/Add.1 
   Page 23     
2005 will result in an increase in the import duty ra tes of 75 commodity types from zero percent to 
5%, including the raw materials of qualifying industries using market share; and of six commodity types from 5% to 10%. However, 17 commodity typ es will have their rates decreased from 20% to 
15% and 7 commodity types from 30% to 20%. The adoption of the CET will also result in a reduction in the simple average tariff from 17½ pe rcent to about 12 percent. The estimated revenue 
loss from the implementation of the CET in the first year is about Le4.0 billion.  
 
The ECOWAS CET is not static; it can be revi ewed and will be negotia ted on a continuous basis 
among ECOWAS members. It is likely that it may be influenced by developments in the Doha round.  
 
4. Capacity Building 
(a) Trade Policy Clinic  
In August 2003, a combined Inter-Agency Mission comprising officials from the WTO, ITC, UNIDO, 
and the Commonwealth Secretariat visited Sierra Leone  to undertake a needs assessment in respect of 
Sierra Leone’s trade policy capacity. High Level mee tings were held with public and private sector 
institutions. During that mission, it was agreed that Sierra Leone would under go its first trade policy 
review in the WTO. 
 In October 2003, the WTO Reference Centre was es tablished at the Ministry of Trade which was 
followed by a training workshop for public and priv ate sector officials on accessing and use of 
information on WTO in the Centre. The Reference Ce ntre has been very useful in the provision  of 
information on the multilateral trading system. It s main users have been the private sector, 
government officials, university professors and students.  
 Information accessed from the Centre is an important tool for decision making by business people. It is crucial that this information is available to th em on a regular basis. In order to improve access by 
the private sector the following action may be necessary:  
 
• A nation-wide sensitisation workshop on the role of the multilateral trading system in Sierra 
Leone’s development agenda  
 
• Reliable and more regular internet connectivity for the Centre to ensure easier access to 
information  
 (b) Technical Assistance  
Sierra Leone needs trade related techni cal assistance in the following areas:  
 
i) Customs valuation and port management – capacity building for our customs and ports 
officials for improvements in efficiency of procedures, and trade facilitation.  
ii) Sanitary and health standards – capacity bu ilding for our Standards Bureau so it can 
develop a competent volume of technical staff and enforce appropriate health, safety and 
other standards.  
iii) Technical assistance to our producers so they  can develop their supply capacity in order 
to improve the quality and standards of products and services, to increase their 
competitiveness particularly in agro-processing, supply chain management, and other value added manufacturing  
iv) Training in enterprise development and business skills for our small and medium 
enterprises; business incubator programmes fo r small scale investors – to enable them 
develop their businesses  WT/TPR/M/143/Add.1 
Page 24  
 
v) Legal and regulatory reform for trade facilitati on – to ensure that laws supportive of trade 
and investment are developed and implemente d in line with our domestic needs and our 
international and regional commitments  
vi) Training for trade policy makers and professionals in specific trade issues including 
intellectual property, services, SPS and TBT, a nd in developing their negotiating capacity 
vii) Establishment of a mission in Geneva to enable  Sierra Leone to effectively engage in the 
Doha process through better representation.  
 
5. Ad Valorem Charges/PSI Fees 
The charge of 1.10 percent ad valorem inspecti on charge was included in the tender proposal by 
Intertek (the PSI company which eventually won the bid). The Government of Sierra Leone accepted 
these terms as part of the contract with Intertek, and thus the charge remain ed, and will continue until 
the agreement ends within the next 2 years.   The ad valorem charge is not meant to represent taxation of imports. However, the Government of 
Sierra Leone will now consider whether the 0.10 pe rcent which is transferre d to the Consolidated 
Fund should now be transferred to the NRA to cover costs to the organisation of surveillance of the 
PSI inspection services and other quality inspection services.    
6. Pre-shipment Inspection and Customs Valuation 
The Government of Sierra Leone is committe d to implementing the WTO Customs Valuation 
Agreement. The provisions mandating introduction of the CVA are included in a draft Customs Bill, 
which will be enacted within 3 months. Once the Customs Act is in force, Sierra Leone will seek 
funding for training, IT infrastructure and simplifi cation of procedures and documentation in order to 
implement the CVA. The Commonwealth has funded st udies aimed at assisting Sierra Leone in the 
migration from the Brussels definition to the CVA. Further assistance is now needed to complete the 
process of migration.  
 A percentage of the fees charged for PSI go into an  escrow account for the modernisation of the NRA. 
NRA and Intertek have carried out a needs assessm ent of training and capacity building for the NRA. 
An action plan for training and skills development will be developed out of this needs assessment.  
 7. Excise Taxes  
Sierra Leone’s excise taxes were historically inte rnal taxes, applied to all domestically produced 
goods. The function of the excise tax has now change d to limiting or discouraging consumption of a 
particular product, and its applica tion is now restricted to certain pr oducts irrespective of whether they 
are domestically produced or imported. For inst ance, alcohol, tobacco (for social reasons), and 
petroleum (for environmental reasons). These product s are the only categories of goods that attract 
excise taxes.   
8. Sanitary and Phytosanitary measures 
Sierra Leone currently has no legislation on sanita ry and phytosanitary measures. However it seeks 
assistance to develop such legislation.  
 
(a) Fish Exports to the European Union 
The EU and Sierra Leone authorities are working to  resolve the issue of compliance with European 
sanitary requirements for fish products. The EU h as launched a regional project, whereby a team of 
consultants has been appointed to undertake a missi on to some West African countries covering Sierra 
Leone, Ghana, Gambia and Guinea. The team will conduct a study on national SPS regulations with a    WT/TPR/M/143/Add.1 
   Page 25     
view to ensuring compliance with EU regulations, the status of factories and production facilities.  
The team will also set up laboratories for testing,  and establish certification processes for fish and fish 
products in each country. Work will start as soon as AID CO releases the funds to the company that 
won the contract.   
9. Intellectual Property Rights  
As part of its process of domestic law reform, Sier ra Leone has plans this year to comprehensively 
review and update its laws and re gulations on all intellectual propert y rights (IPRs). Sierra Leone’s 
laws on IPRs date back to colonial times and are inadequate or inappropriate for the needs of the 
business community. Moreover, Sierra Leone must comply with the TRIPs Agreement by 1
st January 
2006, except in relation to the obligations which the Agreement imposes n relation to patents for 
pharmaceutical products. As a least de veloped country, it is required to  bring the provisions in relation 
to these products in conformity with th e TRIPs Agreement only by 1 January 2016.  
 Sierra Leone is a member of WIPO and the African Regional Industrial Property Organisation 
(ARIPO). Sierra Leone is signatory to 3 out of the 21 treaties administered by WIPO. Sierra Leone 
has not ratified either the Harare Protocol or the Banjul Protocol (for patents and trademarks 
respectively). In 1998, WIPO had produced mode l legislation on patents and trademarks for 
adaptation by Sierra Leone into a national law. The drafts were submitted to the Law Officers’ 
Department but this legislation has never been developed.   
 The Ministry of Trade is currently seeking funds to support the developm ent of legislation on 
intellectual property rights and as a first step h as established a multidisciplinary Working Group on 
Intellectual Property Rights that will steer the process of legislative reform in this area. The Working 
Group, once convened, will commission case studies and analysis on the appropriate framework of 
rules and administration (especially enforcement me asures) for Sierra Leone including its compliance 
with regional and international obligations. The pr ogramme of legislative reform on IPRs includes 
meetings of the Working Group, consultancy services of a technical  expert, a legal clinic in 
collaboration with a US not-for-profit organisa tion, a stakeholder workshop and a validation 
workshop. It is envisaged that this process woul d start in February 2005 and end in October 2005, 
with a submission of draft legislation on IPRs to the Law Officers’ department  
 The timetable for the development of legislation is subject to the receipt of technical assistance to 
support the process. In the event of delays in recei pt of the necessary assistance, Sierra Leone would 
seek an extension from the TRIPs Council at the ear liest opportunity in order to comply with the 
TRIPs Agreement.   
10. Export Registration and Documentation Procedures  
There are no general export licences required in Sierra Leone except for specific goods and for 
specific reasons. Export documentation requires the service of the following institutions: 
 
• Commercial banks 
• The National Revenue Authority 
• The Chamber of Commerce 
• The Ports Authority 
• Shipping Agents 
• Standards Bureau/Ministry of Health/Ministry of  Agriculture (depending on the product to be 
exported) 
 
Government intends to reduce the lengthy and complicated documentation procedures by 
implementing the recommendations that will emerge  from the on-going administrative barriers study, WT/TPR/M/143/Add.1 
Page 26  
 
which inter alia  is investigating business operating pro cedures including export registration and 
documentation.   
11. Government Procurement  
Sierra Leone has recently enacted new legisl ation on government procurement: the Public 
Procurement Act 2004. In the legislation, the Fi rst Schedule on Thresholds outlines three types for 
lower levels for International Competitive Biddi ng.  The limit for goods is Le 600 million (approx. 
$222,200); for works is Le 900 million (approx. $ 333,300) and for services is Le 600 million (approx. 
$222,200).  
According to Article 40(3) (c) of the Act at least si x (6) weeks shall be allowed for submission of bids 
in International Competitive Bids while the timescale is set at four (4) weeks for National Competitive 
Bids.  Article 24 of the Act provides that the procuring ent ity shall set the applications for prequalification 
for a bid and, more particularly, Article 40 (3) (d) provides that technical specifications shall, to the 
extent compatible with national requirements, be ba sed on international standa rds or standards widely 
used in international trade.  Article 40(3) (b) provides that advertisements fo r bids shall be placed in newspapers possessing a 
circulation sufficient to attract foreign bids.  All of Sierra Leone’s publications are made in the official 
language of the nation, which is English. 
 The First Schedule on Thresholds in the Public Pr ocurement Act outlines three different lower levels 
for Shopping Bidding.  The limit for goods is Le  60 million (approx. $22,200); for works is Le 150 
million (approx. $55,500) and for services is Le 60 million (approx. $22,200). 
 
Article 41(1) (b) provides that when time and cost considerations are prohibitive, restrictive bidding 
may be held.  In this case, at least five (5) bidders should be invited, if possible.  Sierra Leone will seriously cons ider acceding to the Agreement on Government Procurement (GPA) 
after it has fully assessed the balance of its comm itments under the Single Undertaking, its resource 
capacities to effectively participat e in the WTO, and the approach which other LDCs are taking on 
accession to the GPA.   
12. Production Assistance 
The requirement in Sierra Leone’s Investment Prom otion Act for 60% local material input in agro-
processing industries is to encourage the expansion of sustainable agro-based industries. Experience 
has shown that firms often need particular in centives to go beyond secondary processing such as 
packaging and drying of raw materials. The incen tives are available to both domestic and foreign 
producers who comply with the requirement. Industr ies which do not comply with the minimum value 
added requirement are not prohibited from undertaki ng production in the country. They, however, 
would not be able to benefit from those incentiv es. These facts should be taken into account in 
considering the compatibility of this incentive in the Investment Promotion Act with the provisions of 
the TRIMs Agreement.   
III. SECTORAL POLICIES 
1. Service Sector Liberalisation  
Sierra Leone is seeking assistance from development pa rtners for an impact study on liberalisation of 
various services sectors. The study should also assess Sierra Leone’s comparative advantage in    WT/TPR/M/143/Add.1 
   Page 27     
services including tourism and movement of natura l persons. Once the study is carried out, Sierra 
Leone will be more equipped to decide on its pos ition in the GATS negotiations. Consideration must 
be given to the structural and regulatory framewo rks that must necessarily be in place to enable 
efficient service delivery once the sect or is eventually liberalised.  
 
2. Energy  
Various factors constrain the development of the powe r sector in Sierra Leone. Efforts are being made 
by the government to address these constraints.  The Bumbuna hydro-electric dam will be completed 
in early 2006, which will assure the unrestricted  supply of electricity in Sierra Leone.  
 
3. Financial Services  
(a) Micro-finance 
Micro-finance in Sierra Leone is provided by both government as well as individual NGOs. The 
government programme involves micro-credit in the fo rm of a revolving loan given to disadvantaged 
women and young people at a comparatively lower in terest rate. The revolving loan is available to 
every chiefdom, in which Micro-Credit Coordina ting Committees are established. The Committees, 
which are selected by the communities themselves, have  oversight of the recovery of the loans. The 
average recovery rate of the loans to date is over 60%.   In 2004 government developed the national micro-fi nance policy to be supervised by the Central 
Bank of Sierra Leone.  Within the PRSP, micro- finance is one of the instruments for poverty 
reduction.  
 
(b) Insurance  
The insurance industry in Sierra Leone is a small vibrant industry. There are seven private companies 
and three public companies providing general insu rance services. The Insurance Act 2000 and the 
establishment of the Insurance Commission have contri buted to improvements in efficiency in this 
service sector.   
 
4. Telecommunications 
Sierratel will be privatised under a programme spa nning 2005 to 2010. A Te lecommunications Bill is 
being drafted and will soon be enacted by Parliame nt. The legislation will provide for the licensing of 
telecoms operators and for the promotion of univer sal basic telecoms services; and provide for fair 
competition for the benefit of investors and users of telecoms services in order to improve the 
integration of Sierra Leone in national, re gional and international telecoms markets.  
 
5. Transport 
Sierra Leone will consider the merits of investing (in the medium to long term) in its own shipping 
fleet in order to facilitate exports of commodities. In the government’s view, this is a potential area for 
entry by the private sector.   
6. Tourism 
Tourism is identified in the PRSP as one of the pilla rs for poverty reduction in Sierra Leone. It is a 
priority sector in the development of the service sector in sierra Leone. The vision of the Ministry of 
Tourism is to encourage a de-centralised, well coor dinated, competitive industry. The Government of 
Sierra Leone also sees tourism as an important sector  through which the provision of job opportunities over a wide range of skill leve ls can be achieved. This will entail: 
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• Alleviating poverty among poor and marginalised local communities 
• Promotion of local community entrepreneurship 
• Enhancement of economic diversification and cultural revitalisation, heritage 
preservation and social stability 
 There is therefore a clear link between tourism and other services like construction, transport and computer services, and also for the development of culture. 
 
The tourism industry before the war was one of th e most vibrant sectors in the economy, with tour 
operators bringing in tourists from Europe and ot her parts of the world. Because of our past 
experience in this sector, and the benefits derived from this sector before the war, Sierra Leone now 
views this sector as a priority area for poverty reduction. The Ministry of Tourism and Culture has, since the end of the war, developed policy document s for the development of tourism and culture and 
has adopted a range of measures aimed at improvi ng the competitiveness of the industry, and is 
therefore encouraging both local and interna tional investors in the tourism sector.  
  
7. Distribution services  
There are no restrictions on foreign service suppliers in the distribution sector. There is no legislation 
in Sierra Leone governing dist ribution services in the country. 
 
Concluding remarks 
 Over the past couple of days my delegation and I ha ve had the privilege to meet with representatives 
of various development partners  and delegations in Geneva. We  are encouraged by the warm 
welcome our delegation has been shown, and the le vel of support indicated by our partners for the 
future development of our economy. We strongly beli eve in the partnerships we have forged over the 
past few years, and we look forward to making ne w partners as we continue on the path of our 
development. We remind our develo pment partners that we will be seeking substantial assistance to 
enable us to fill the gaps identified in our trade a nd investment policies, so that our next trade policy 
review in the WTO will clearly demonstrate adva ncement in our economy for the benefit of our 
citizens.   Once again, we thank you for your continued su pport in Sierra Leone’s development process.  
 
 
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