RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/169 
23 August 2006  
 
(06-3911) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
REPUBLIC OF THE CONGO 
 
  
 
This report, prepared for the first Trade Policy Review of the Republic of the 
Congo, has been drawn up by the WTO Secretariat on its own responsibility.  
The Secretariat has, as required by th e Agreement establishing the Trade Policy 
Review Mechanism (Annex 3 of the Ma rrakesh Agreement Establishing the 
World Trade Organization), sought clarification from the Republic of the Congo 
on its trade policies and practices. 
 
Any technical questions arising from this report may be addressed to Mr Jacques 
Degbelo (022 739 5583). 
 
Document WT/TPR/G/169 contains the policy statement submitted by the 
Republic of the Congo. 
 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Revi ew Body on the Republic of the Congo. Republic of the Congo WT/TPR/S/169 
 Page iii 
 
 
CONTENTS 
 
 
  Page 
SUMMARY OBSERVATIONS vii 
 (1) E CONOMIC ENVIRONMENT  vii 
 (2) T RADE AND INVESTMENT REGIMES  vii 
 (3) T RADE POLICY INSTRUMENTS  viii 
 (4) S ECTORAL POLICIES  ix 
 (5) T RADE POLICY AND TRADING PARTNERS  x 
 I. ECONOMIC ENVIRONMENT 1 
 (1) M
AIN FEATURES OF THE ECONOMY  1 
 (2) R ECENT ECONOMIC TRENDS  3 
 (3) T RADE AND INVESTMENT TRENDS  6 
 (4) O UTLOOK  7 
 II. TRADE AND INVESTMENT REGIME 11 
 (1) G
ENERAL CONTEXT  11 
 (2) P OLICY OBJECTIVES  14 
 (3) T RADE AGREEMENTS AND ARRANGEMENTS  15 
 (i) The WTO 15 
 (ii) Regional Agreements 16 
 (4) I NVESTMENT  20 
 ANNEX II.1:  TRADE-RELATED TECHNICAL ASSISTANCE 23 
 (1) I MPLEMENTATION OF AGREEMENTS AND POLICY FORMULATION  23 
 (2) S UPPLY -SIDE CONSTRAINTS  24 
 (3) I NTEGRATION OF TRADE INTO DEVELOPMENT STRATEGIES  24 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 26 
 (1) I NTRODUCTION  26 
 (2) M EASURES DIRECTLY AFFECTING IMPORTS  26 
 (i) Registration 26 
 (ii) Customs procedures 27  (iii) Rules of origin 28 
 (iv) Customs levies 29 
 (v) Prohibitions, quantitative restrictions and licences 35  (vi) Sanitary and phytosanitary (SPS) measures 36 
 (vii) Standardization, accreditation and certification 37 
 (viii) Rules on packaging, marking and labelling 37  (ix) Contingency measures 37 
 (x) Other measures 37 WT/TPR/S/169 Trade Policy Review 
Page iv 
 
 
Page 
 (3) M EASURES DIRECTLY AFFECTING EXPORTS  38 
 (i) Customs procedures 38 
 (ii) Export duties and taxes 38  (iii) Export prohibitions, restri ctions, controls and licences 39 
 (iv) Export subsidies, promotion and assistance 39 
 (4) M
EASURES AFFECTING PRODUCTION AND TRADE  40 
 (i) Protection of intellectual property rights 40 
 (ii) Competition policy 44 
 (iii) Incentives 45  (iv) State trading, State-owned enterprises and privatization 45 
 (v) Government procurement 46 
 IV. TRADE POLICY AND PRACTICE BY SECTOR 47 
 (1) I
NTRODUCTION  47 
 (2) A GRICULTURE , LIVESTOCK , FISHING AND FORESTRY  47 
 (i) Overview 47 
 (ii) Agricultural policy 48 
 (iii) Policy by subsector 50 
 (3) M INING , ENERGY AND WATER  55 
 (i) Mining products 55  (ii) Petroleum products and natural gas 56 
 (iii) Electricity 60 
 (iv) Water 61 
 (4) M
ANUFACTURING  61 
 (5) S ERVICES  62 
 (i) Overview 62  (ii) Transport 62 
 (iii) Tourism 65 
 (iv) Telecommunications and posts 65  (v) Financial services 67 
 
REFERENCES 69 
 
APPENDIX TABLES 73 
 Republic of the Congo WT/TPR/S/169 
 Page v 
 
 
CHARTS 
 
Page 
I. ECONOMIC ENVIRONMENT 
 I.1 Structure of trade in goods, 1995-2004 8 
I.2 Destination and origin of trade in goods, 1995-2004 9 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
III.1 Distribution of applied MFN duties, 2006 32 III.2 Escalation of applied MFN tariff rates, 2006 33 
 
IV. TRADE POLICY AND PRACTICE BY SECTOR  
IV.1 Exports of logs by principal species, 2003 54 
IV.2 Exports of sawn wood by principal species, 2003 55 
 
 
TABLES 
 
I. ECONOMIC ENVIRONMENT 
 
I.1 The Republic of the Congo in figures, 1998-2005 2 I.2 Main economic indicators, 1998-2005 3 
I.3 Balance of payments, 1998-2005 6 
 II. TRADE AND INVESTMENT REGIME 
 
II.1 The Congo's principal trade-related laws and regulations, May 2006 12 II.2 Investment Charter – advantages under the preferential regimes 21 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
III.1 Revenue from the taxation of international trade, 2000-2004 29 
III.2 MFN tariff structure, 2006 30 III.3 Customs tariff according to degree of processing, 2006 32 
III.4 Exemptions from various duties and taxes, 2000-2005 35 
III.5 Fines and terms of imprisonment under the Bangui Agreement (1977) 
 and its revision (1999) 41 
III.6 Subjects and terms of protection under the Bangui Agreement (1977)  and its revision (1999) 42 
III.7 Congo and the intellectual property prot ection treaties administered by WIPO, 2006 43 
 IV. TRADE POLICY AND PRACTICE BY SECTOR 
 
IV.1 Fisheries production, 1999-2004 51 IV.2 Trend in production of forest woods, 1999-2005 54 
IV.3 Structure of the oil industry, 2004 56 
IV.4 Trend in oil production, 2001-2006 58 WT/TPR/S/169 Trade Policy Review 
Page vi 
 
 
Page 
 
IV.5 Basic telecommunications indicators, 2002-2005 66 
IV.6 Micro-finance indicators, 2002-2004 67 
IV.7 Turnover in the insuran ce services market, 2000-2005 68 
 
 
APPENDIX TABLES 
 
I. ECONOMIC ENVIRONMENT 
 
AI.1 Structure of exports, 1995-2004 75 AI.2 Destination of exports, 1995-2004 77 
AI.3 Structure of imports, 1995-2004 78 
AI.4 Origin of imports, 1995-2004 80  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 AIII.1 Import duties by HS chapter, 2006 81 
AIII.2 Excise duties (ED) on imported products, 2006 84 
AIII.3 Products not subject to supplementary exit duty ( droit accessoire de sortie  – DAS), 2006 87 
 
IV. TRADE POLICY AND PRACTICE BY SECTOR 
 AIV.1 Applied MFN tariffs by ISIC Rev.2 branch of activity, 2006 90 
 Republic of the Congo WT/TPR/S/169 
 Page vii 
 
 
SUMMARY OBSERVATIONS 
 (1) E
CONOMIC ENVIRONMENT  
1. Since its political stabilization in 2002 
following a decade of civil war, the Republic 
of the Congo has begun its reconstruction with the support of the international community.  Under the presidential pl an for society entitled 
"La Nouvelle Espérance", the Congo is 
pursuing its macroeconomic stabilization and 
structural reform programme.  This programme, coupled with the surge in world prices and domestic production of hydrocarbons, paved the way for a return to growth, with real GDP increasing at an 
average annual rate of 4.2 per cent during the 
period 2002-2005.  The restrictive monetary policy of the Bank of Central African States (BEAC) helped to contain inflation, despite recent pressures due to the price of petroleum 
products at the pump and of foodstuffs.  
Thanks to the spectacu lar increase in State 
revenue from oil, the financial balance on the basis of commitments (excluding grants) achieved a surplus of 16 per cent of GDP in 2005.  A number of initiatives were taken to 
enhance transparency in the management of 
financial resources earned from petroleum activities, and progress was made towards joining the "Extractive Industries Transparency Initiative" (EITI). 
2. The Congo benefited from a first 
reduction of its external debt in 2004 under the auspices of the Paris Club, and in March 2006 it was able to reach the decision point under the enhanced Heavily Indebted 
Poor Countries (HIPC) initiative.  It could 
possibly be granted a reduction of some 20 per cent of its external debt of US$9 billion (118 per cent of its GDP in 2005).  The authorities therefore plan to finalize the Poverty Reduction Strategy Paper (PRSP), 
which is currently in its  interim version.  This 
paper is particularly important in that although the Congo is rich in natural resources, approximately half of its population lives below the poverty line.   According to the 
UNDP, in 2003 the Congo ranked 142nd (out of 177 countries) in the human development 
index. 
3. The economy relies essentially on 
offshore oil exploitation, which accounted for 
more than half of GDP in 2005 and for 90 per 
cent of export revenue in 2004.  Services, including trade and transportation, accounted for approximately 28 per cent of the country's GDP in 2005.  In spite of the Congo's 
potential for agricultural production, the 
sector represented only 5 per cent of GDP in 2005.  Manufacturing remains embryonic as well, accounting for approximately 6 per cent of GDP in 2005.  One of the main objectives of the country's poverty reduction strategy is to 
diversify the economic base by stimulating 
agriculture, mining and processing. 
4. The ratio of 118 per cent (in 2004) of 
trade in goods to the GDP underlines the importance of trade for the Congo's economy, 
particularly in view of oil exports and the 
country's dependence on imports to cover a large portion of its food and equipment needs.  Oil exports have traditionally accounted for a surplus in the Congo's trade balance, with wood ranking second, far behind 
hydrocarbons.  The main destinations of the 
country's exports are China;  the United States;  and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.  Imports consist of machinery and transport equipment 
as well as medicines and food products.  The 
European Union (EU) is the Congo's main supplier.  The share of African countries in Congo's total trade remains small. 
(2) T
RADE AND INVESTMENT REGIMES  
5. In the Congo, the ministry in charge of 
trade is responsible for formulating trade policy with the assistance of an inter-ministerial administrative structure in which the private sector is formally involved.  Customs matters as well as matters relating to 
investment and government procurement come 
under the purview of the Ministry of the Economy, Finance and Budget (MEFB). WT/TPR/S/169 Trade Policy Review 
Page viii 
 
 
6. The Congo took over the status of 
GATT contracting party on 3 May 1963, and became a Member of the WTO on 27 March 1997.  It has signed neither the 
plurilateral agreements concluded within the 
WTO, nor the agreements reached since the end of the Uruguay Round.  It grants most-favoured-nation (MFN) treatment as a minimum to all of its trading partners.  The 
Congo participates in the WTO ministerial 
meetings, and generally supports the positions 
expressed by the developing countries and the 
African Group. 
7. The Congo's participation in the 
multilateral trading system remains limited.  It has been able to submit only one notification to the WTO, in 2001.  Among the priority 
areas where further t echnical assistance has 
been requested is capacity-building to enhance understanding of the WTO Agreements;  notifications;  trade policy formulation and integration thereof in its development strategy;  
dismantling of supply-side constraints;  and participation in trade negotiations, inter alia in 
the context of the Doha Development Agenda.  
The Congo does not have access to the Integrated Framework, since it is not among 
the least developed countries, and it does not 
participate in JITAP. 
8. The Congo and its neighbours have a 
long common history of regional integration.  The Congo is a member of the Central African Economic and Monetary Community 
(CEMAC), whose common currency is pegged 
to the Euro.  Having adopted a common external tariff (CET) in 1993, CEMAC members are currently establishing a customs union.  CEMAC and associated countries (Sao 
Tome and Principe, Angola, and the 
Democratic Republic of the Congo) are negotiating an Economic Partnership Agreement (EPA) with the European Union which is set for implementation in January 2008.  The implementation of the CET 
adopted by the Economic Community of 
Central African States (CEEAC), which covers a larger area than CEMAC and to which the Congo also belongs, has not yet begun. 9. The Congo's new Investment Charter 
entered into force in 2004, and seeks to promote various activities, in particular manufacturing.  About half of the projects 
agreed in 2004 involved wood processing, a 
key objective of the Forestry Code adopted in 2000. 
(3) T
RADE POLICY INSTRUMENTS  
10. The Congo applies the acts of the 
CEMAC with regard to the CET, the general 
preferential tariff (GPT), and internal taxes.  The simple average applied MFN tariff is 18.7 per cent, and the tariff protection for agricultural products (WTO definition) is considerably higher (23 per cent).  The tariff 
displays mixed escalation owing to the fairly 
high degree of protection afforded to unprocessed agricultural products.  The Congo allows local (unprocessed) and handicrafts products, as well as manufactures 
that have received the necessary approval and 
originate in CEMAC member countries, to enter completely free of duty. 
11. During the Uruguay Round, the 
Congo bound its tariffs  on all agricultural 
products (like the other Members) at the 
ceiling rate of 30 per cent, and on some one 
hundred non-agricultural tariff lines, generally at their applied rates.  However, the 30 per cent rate applied to imports of cool boxes is above the bound rate of 10 per cent.  
Moreover, other duties and taxes are applied 
to imports even though  the Congo has bound 
them at zero.  These include:  the automation fee of 2 per cent;  the CEMAC Community integration tax or levy of 1 per cent;  the 
statistical tax of 0.2 per cent;  the OHADA 
levy of 0.05 per cent;  and the Community integration contribution of 0.04 per cent for CEEAC.  These different charges bring the simple average rate of import duties and charges (including customs duties) to 
approximately 22 per cent.  The Congo has 
never resorted to contingency measures. 
12. Internal taxes, such as the value added 
tax (VAT) of 18 per cent and the excise duty 
(on certain products, including alcoholic Republic of the Congo WT/TPR/S/169 
 Page ix 
 
 
beverages and tobacco) are levied on imports 
and local products.  However, unlike imports, local products, such as mineral water (produced by the private company PLASCO – 
Mayo) and wheat flour (produced by the 
private company MINOCO) are exempted from VAT.  At the same time, unlike for local products, the tax base for VAT on imports also includes the excise duty. 
13. Customs procedures for the great 
majority of imports have been computerized.  Pre-shipment inspection by the company COTECNA is required for most imports of at least CFAF 3 million - the fee (0.9 per cent of the f.o.b. value) is charged to the importer.  
The Congo applies the WTO Agreement on 
Customs Valuation, but is experiencing difficulties in that respect. 
14. The Congo has an import licensing 
regime for ten food products for mass 
consumption, whose prices are also subject to 
approval on the basis of margins established by regulation.  The aim is to control the volume and price of the products concerned on the domestic market.  The importation of wheat flour is subject to quotas at 
12,000 tonnes per quarter.  As part of its effort 
to combat avian influenza, the Congo has a general prohibition on the importation of live animals of avian species and all products deriving therefrom. 
15. The Congo has launched an ambitious 
privatization progra mme which has led, inter 
alia, to the opening up of its activities 
downstream of the hydrocarbon subsector 
(distribution and marketing) to competition.  
Most of the hotels, the banks, and the various 
manufacturing enterprises have also been privatized.  However, electricity and water supply and fixed telecommunications, which are still the monopoly of State enterprises, remain inefficient.  There is also a monopoly 
on sugar.  Intellectual property is protected, inter alia  by the revised Bangui Agreement.  
Domestic legislation on copyright and related 
rights is obsolete, and needs to be brought up to date.  The same applies to competition 
legislation.  The Congo does not have any regulatory framework for standardization, 
although it needs one in order to improve the quality of its products.  The government procurement regime is being revised. 
(4) S
ECTORAL POLICIES  
16. The Congolese economy is dominated 
by petroleum exploita tion, service activities 
and forestry.  Among its mining products, only petroleum is exploited on an industrial scale 
under the Hydrocarbons Code of 1994.  The 
Congo has proven reserves of 1.5 billion barrels and is the fifth largest oil producer in sub-Saharan Africa.  With the start-up of new oil fields, total production averaged 250,000 barrels per day in 2006, up by 
approximately 14 per cent in comparison to 2005.  The Société nationale des pétroles du 
Congo  – SNPC (Congolese National Oil 
Company) manages the share of hydrocarbons 
production accruing to the State 
(approximately one third) under production-
sharing agreements.  Domestic petroleum product prices at the pump are occasionally adjusted to take account of the evolution of world prices.  The new Mining Code of 2005 was introduced with a view to promoting 
exploration and prospecting for mineral 
substances, and possibly their exploitation.  
The Congo is involved in trading, inter alia re-
exporting precious materials - including raw 
diamonds, despite its suspension from the 
Kimberly Process. 
17. The forestry subsector is still the non-
petroleum activity favoured by foreign investors.  Timber and its products are subject to a number of taxes levied either on exports 
or on imports.  Under the Forestry Code of 
2000, companies are expected to process 85 per cent of their logging output.  Companies that fail to attain that quota are subjected to a 15 per cent surcharge on their exports of logs above the quota.  As an 
indication of the limitations of this policy, an 
average of approximately 15 per cent of the volume of exported timber is processed.  According to the International Tropical Timber Organization (ITTO) the Congo is 
among the first countries in the world to WT/TPR/S/169 Trade Policy Review 
Page x 
 
 
establish a regulatory framework that provides 
a basis for sustainable forestry management.  Thus, at the end of 2005, a concession of 280,000 hectares was granted eco-
certification by the NGO Forest Stewardship 
Council (FSC). 
18. In spite of the considerable amounts of 
arable (unexploited) land and the moderate density of its population, it will be difficult for 
the Congo to achieve the objectives of its fairly 
protectionist agricultural policy.  The cost of importing staple foods is pushed upwards by 
tariff barriers (about 24 per cent on average) and non-tariff barriers (prohibitions, quotas, licensing and price controls).  Where there is 
sufficient local production, lack of adequate 
transport infrastructure hampers the shipment of the protected produce from the countryside to the cities where there is a strong demand.  Consequently, food prices are very low in the 
countryside at harvest time, and fairly high 
during the gap periods owing to a lack of storage capacity.  Fo r all of these different 
reasons, the price of these products is generally quite high in the cities.  In the circumstances, this kind of policy can only 
aggravate poverty. 
19. High protection in the agricultural 
sector is not conducive to the development of the agri-food industries, since the current policy pushes up production costs.  In addition 
to the tariff structure, the high prices and 
shortages of basic inputs stand in the way of the development of the manufacturing sector, which is still confined to producing basic products for the local market or (more rarely) 
for countries with a similar policy.  Tariff 
protection in the sector averages about 18 per cent. 
20. Owing to the poor state of its land 
transport infrastructure, the Congo is unable to draw maximum advantage from its role as a 
transit country for its neighbours by fully 
exploiting its major asset, the Pointe-Noire Autonomous Port (PAPN), a State enterprise and the only deep-water port in the subregion.  The deficiencies in the transport network, 
particularly land transport, also hamper the development of tourism, an area in which the 
Congo has considerable potential and the only services category in which it has made commitments under the GATS.  Teledensity 
has progressed considerably in the Congo 
since the introduction of mobile telephony in 1999.  However, the availability, quality, and cost of basic fixed telecommunications services (including Internet access and 
international communications) remain 
unsatisfactory.  The privatization of the 
historical operator, the Société de 
télécommunications du Congo  – SOTELCO 
(Congolese telecommunications company), 
which still has a monopoly  on basic services, 
is currently under consideration. 
21. Banking and microfinance activities in 
the Congo are subject to the common banking regulations of the CEMAC.  The banking 
institutions handle, inter alia , import and 
export transactions including the purchase of vehicles, but their involvement in financing production activities is very limited.  Some of the financing needs of craftsmen, farmers and small businessmen are covered by microcredit, which has considerably expanded thanks to 
the introduction of a subregional regulatory 
framework in 2002.  Insurance services are not very developed, with the exception of compulsory insurance for imports and motor vehicles. 
(5) T
RADE POLICY AND TRADING 
PARTNERS  
22. The Congo's reconstruction efforts 
with the support of the international community have been facilitated to a certain 
extent by the surge in prices and domestic 
production of hydrocarbon s (the backbone of 
the economy).  Aware of the risks involved in 
this heavy dependence, the authorities are seeking to diversify their economy and create jobs in the ultimate aim of reducing poverty.  
Clearly, however, the success of this strategy 
will depend first and foremost on the initiatives taken by the Congo to dismantle its numerous supply-side constraints on the domestic front.  Continued reform, in 
particular structural reform, should contribute Republic of the Congo WT/TPR/S/169 
 Page xi 
 
 
to this effect by bringing down the costs of 
inputs. 
23. The Congo needs major investment to 
build or improve its transport network, in 
particular land transport. 
The expected debt relief could free up 
resources for that purpose as well as for other components of its poverty reduction strategy, for which the paper is currently being 
finalized.  This report for the Congo's first 
Trade Policy Review should help to identify the role that trade policy could play in that strategy.  With that in mind, the Congo would do well to improve the implementation of its commitments under the WTO agreements, and 
to strengthen its commitments in the area of 
trade in goods and services. 24. These efforts should help the Congo to 
adhere more closely to th e principles of the 
WTO, to create a more business-friendly environment, and to make its trade regime 
more transparent, more credible and more 
predictable in order to profit more fully from its participation in the multilateral trading system and better exploit the trade preferences it has been granted.  The international 
community could do more to help the Congo in 
its reconstruction and economic diversification efforts by opening up its markets, on a stable basis, to products and services of interest to the Congo, and by responding favourably to its requests for 
technical assistance, particularly in the area 
of capacity-building.