RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/169 
23 August 2006  
 
(06-3910) 
Trade Policy Review Body Original: French 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
REPUBLIC OF THE CONGO 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by the Republic of the Congo is attached. 
 
 
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 Re view Body on the Republic of the Congo. Republic of the Congo WT/TPR/G/169 
 Page 3 
 
 
CONTENTS 
 
 
  Page 
 
I. INTRODUCTION 5  
II. SOME CURRENT ECONOMIC DATA 5  
II.1 General 5  
II.2 Activities in various sectors 7  
(a) Agriculture and livestock 7  
(b) Forestry 8  
(c) Industry 8  
(d) Mining and energy 9  
(e) Services 9  
(f) Social sector 10  
III. REFORMS UNDER WAY 10  
IV. OUTLOOK 14  Republic of the Congo WT/TPR/G/169 
 Page 5 
 
 
 
I. INTRODUCTION 
1. Since the late 1990s, the Government of the Re public of the Congo has been implementing an 
economic and social development policy based on market economies and promotion of the Congolese 
private sector. 
2. This is a long process that focuses on phasing out the old macroeconomic management 
mechanisms inherited from many years of essentially State-controlled practices. 
3. The main aim is to cr eate a social and economic environm ent freed of the dead weight 
inimical to the creation of businesses in the Congo. 
4. In view of the political system's involvement in the choice of the economic strategies to be 
adopted, the Government, in parallel, has introduced  reforms that have led to the establishment of 
democratic institutions, deemed to be a guarantor of good governance. 
5. To back up all these domestic actions, the Republic  of the Congo is playing an active role in 
consolidating subregional integr ation through the adoption of measures on the free movement of 
persons and goods and, in the long term, the creation of common mark ets within the African Union, 
the Economic Community of Central African Stat es (CEEAC) and the Central African Economic and 
Monetary Community (CEMAC). 
6. All these efforts should contribute to: 
- Building domestic production capacity; 
- diversifying the Congolese economy; 
- enhancing the competitiveness of businesses;  and 
- the inflow of foreign direct investment, etc. 
7. As regards investment, the Congo has adopted a regulatory framework that is extremely 
favourable to foreign investors and protects their rights.  It should be noted in this connection that the Congo is an important magnet for investment beca use of its immense and as yet untapped economic 
potential. 
II. SOME CURRENT ECONOMIC DATA 
II.1 General
 
8. The Republic of the Congo, a Central African St ate, straddles the equator and covers an area 
of 342,000 km2.  It has a coastline of 170 km. 
9. The territory of the Congo is bounded by Came roon and the Central African Republic to the 
north;  the River Congo to the east;  the Democratic  Republic of the Congo and Angola to the south;  
the Atlantic Ocean to the south-west and Gabon to the south. 
10. The relief is fairly flat;  the climate is hot  and humid and average rainfall is 1,500 mm.  
Temperatures are of the order of 25o.  The Congo has a highly diverse hydrographic network, 
comprising a number of rivers. WT/TPR/G/169 Trade Policy Review 
Page 6 
 
 
11. The Congo's population is currently estimated to be 3.7 million, most of whom live in the 
following cities:  Brazzaville (the capital);  Pointe-Noire;  Dolisie;  Nkayi;  and Ouesso. 
12. Per capita GDP is around US$1,300.  Life expect ancy is estimated to be 53 years, and the 
fertility rate is 6.07 births per woman. 
13. As mentioned in the introduction, in addition to  its oil reserves, the Republic of the Congo has 
abundant natural resources, including many species of timber, large expanses of arable land, an 
extensive hydrographic network, fisheries resources, and inestimable plant and animal resources. 
14. Despite all these resources, the Government is  still unable to create a viable economic base 
capable of boosting the development and well-being of the population. 
15. The numerous efforts made by the Government since the Congo became independent have 
come up against many internal obstacles, mainly in the form of social conflict but also the negative 
international economic environment. 
16. Today, the majority of Congolese citizens still live in extreme poverty.  Drinking water, 
primary health care and basic services are desperatel y lacking in towns and rural areas.  In some 
places, young people find it difficult to obtain a ccess to education and unemployment is rising 
inexorably. 
17. This dramatic situation has not, however, damp ened the enthusiasm of the Congolese people, 
determined as they are to confront the challe nges of developing their economy and achieving well-
being for all. 
18. For this purpose, the Congo is undertaking inte rnal reforms in all sectors of the domestic 
economy so as to create a new catalyst for development. 
19. Abroad, the Congo is reactivating and strengt hening its cooperation with bilateral and 
multilateral partners. 
20. The following should be mentioned in this connection: 
- The reactivation or signature of trade agre ements with partners in Africa, Europe, 
Asia and the Americas;  and 
- active Congolese participation in negotiati ons at the World Trade Organization and 
with the European Union in connection with implementation of the Cotonou Agreement. 
21. The Congo is also one of the eligible countries under the African Growth and Opportunity 
Act (AGOA) and therefore regularly participates in the various ministerial conferences organized 
within this framework. 
22. As far as regional integration is concerned, the Congo contributes to the formulation of 
policies to strengthen the economic integration of member countries of the African Union (AU), the CEEAC and the CEMAC. 
23. The Congo is currently a member of the CEMAC Customs Union and the free-trade area of 
the CEEAC member States. Republic of the Congo WT/TPR/G/169 
 Page 7 
 
 
24. Lastly, since the late 1990s, the Congo has held substantive negotiations with the IMF and the 
World Bank with a view to obtaining the support it needs to revive its economy. 
25. These negotiations concern a programme to re duce the public external debt, currently 
considered a real bottleneck because of its size. 
26. All these actions will only be able to deliver th eir full potential if they receive vital support 
from the international community. 
27. The following picture emerges from an obser vation of the various sectors of activity: 
II.2 Activities in various sectors  
(a) Agriculture and livestock 
28. During the 1960s, 80 per cent of the population earned a living from agriculture, compared 
with 40 per cent today.  Congolese agriculture employs some 300,000 people, 70 per cent of them are women.  The sector produces a number of food crops for export, including coffee, cocoa and cane sugar exported to Europe under th e Sugar Protocol (13,000 tonnes annually), with 7,280 tonnes going 
to the United States of America. 
29. The agricultural sector's contribution to ec onomic development has declined, from 27.1 per 
cent of GDP in 1960 to 6.7 per cent at present. 
30. The agricultural sector is faci ng the following constraints: 
- Degradation of the communications and energy infrastructures in rural areas; 
- low level of investment; 
- lack of organization among producers; 
- absence of storage and processing structures;  and 
- competition from subsidized imports. 
31. As far as the latter are concerned, the Congo h as already suffered the effects of agricultural 
subsidies, notably the closure of poultry farms in 1975 and 1980 and, more recently, the abandonment 
of groundnut plantations and palm  groves, which face strong comp etition from lower-cost vegetable 
oil imports. 
32. In addition, the agro-industrial sector, previously  dominated by five products, i.e. tobacco, oil 
palms, groundnuts, maize and sugar cane, now  only produces a single product (sugar cane). 
33. Congolese agriculture is today threatened by anot her problem, this time related to the impact 
of the European Union's new sugar regime. 
34. The measures taken by the European Union to  lower ACP sugar prices will undoubtedly harm 
the industries of developing country parties to the Sugar Protocol, such as the Congo. 
35. Because of all these problems, the Congo's pr oduction of food crops falls far short of 
domestic demand, thus encouraging a high volume of imports. WT/TPR/G/169 Trade Policy Review 
Page 8 
 
 
36. It should be noted in this connection that the annual volume of Congolese food imports stands 
at CFAF 100 billion, out of a total of CFAF 600 billion for all imported goods. 
(b) Forestry 
37. The forestry sector was the engine of the national economy during the 1950s, 1960s and 
1970s, accounting for 85 per cent of export earnings and over 10 per cent of the GDP. 
38. This sector has now been largely overtaken by oil, which accounts for 47 per cent of 
GDP formation compared to 2 per cent for timber. 
39. The Congo's forests comprise some 20 million hectares of natural forest (60 per cent of 
Congolese territory) and 90,000 hectares of plantations. 
40. In the case of natural forest, 13 million hectares  are exploitable and 7 million hectares are in 
flooded areas.  Although some mountainous areas are show ing signs of depletion, the natural forest 
can yield 2 million cubic metres of timber annually. 
41. The most common species are:  okoumé, limba, sap eli, moabi, bilinga, kambala, wengué, etc. 
(c) Industry 
42. In recent years, the industrial sector has seen its  share of GDP decline, from 14.9 per cent in 
1979 to 8 per cent at present. 
43. The sector is composed of the following industries: 
- Food industry :  mainly producing cane sugar, b eer and non-alcoholic beverages, 
bakery and dairy products, mi neral water and wheat flour. 
- Timber industry :  composed of some sawmills and veneer plants. 
- Building materials industry :  the major enterprise is the Société nouvelle des ciments 
du Congo  – SONOCC (Congolese New Cement Company). 
- Chemical industry :  with an oil refinery ( Congolaise de Raffinage de Pétrole  – 
CORAF (Congolese Oil Refining Company)), a plant manufacturing lubricants and industrial gas, small factories maki ng paints, plastic foam and soap. 
- Metal processing and engineering industries
:  comprising different types of plant 
producing, for example, corrugated sheets, nails and kitchen utensils, galvanized 
tubes and pipes. 
- Other industries :  the development of other industries, for example, cigarette 
manufacturing, faces a number of constraints such as the constricted domestic market, the high cost of production factors, the lack of urban and rural communications 
infrastructures, and the scarcity of electric power, etc. Republic of the Congo WT/TPR/G/169 
 Page 9 
 
 
(d) Mining and energy 
44. The mining and energy sector is dominated by petroleum.  The latter's share of the GDP was 
less than 2 per cent up to 1971, but since 1973, with th e commissioning up of the first offshore well in 
1972 and the oil price shock in 1973- 1974, it has seen unprecedented growth. 
45. Annual output of crude oil has risen from 2 million tonnes in 1974, 5.6 million tonnes in 
1986, 10 million tonnes in 1996, to some 13 million tonnes at present. 
46. Oil plays a vital role in the Congo's economy.  This sector's earnings are crucially important 
as they account for 66 per cent of government revenue, over 47 per cent of the GDP and close to 90 per cent of export earnings. 
(e) Services 
47. Despite the boom in the petroleum sector, sinc e the 1970s the services sector has become one 
of the most important in the Congo from the point of  view of both its contribution to the GDP and the 
take-up of labour. 
48. The services sector's share of GDP formation is undoubtedly smaller than in the 1970s (59 per 
cent), but still remains high (31 per cent) compar ed to the agricultural and industrial sectors. 
49. The following are the various ty pes of service supplied locally: 
- Telecommunications :  for over three decades the telecommunications sector was the 
monopoly of a State-owned enterprise, the Office National des Postes et 
Télécommunications  – ONPT (National Posts and Telecommunications Office).  The 
Congo has a very low density of fixed telephone lines, less than one line per 
100 inhabitants. 
- Since 1995, opening up to competition has led to the emergence of three new private 
mobile telephone operators, whic h serve large urban centres. 
- Despite an increase in the number of sub scribers between 1999 and 2000, the sector is 
still rundown and offers only limited and unbala nced coverage of national territory.  
Furthermore, the technical telecommuni cations equipment is antiquated and 
inadequate (particularly in rural areas). 
- Transport :  this comprises: 
- Road transport, with some 17,289 km. of roads, of which 1,264 km., or 7.3 per cent, 
are paved. 
- Rail transport, with the 512 km. Congo-O céan Railway (CFCO) and the old 285 km. 
line linking the Congo to Gabon. 
- River transport along the River Congo. - Maritime transport, which handles 85 per cent of the Congo's exports and imports out 
of the city of Pointe-Noire. WT/TPR/G/169 Trade Policy Review 
Page 10 
 
 
- Air transport, with two international airports (Brazzaville and Pointe-Noire) and 
22 secondary airfields. 
50. In general, the transport infrastructure is ve ry rundown because of the destruction caused by 
the civil wars and lack of maintenance.  This  situation has jeopardized the Congo's previously 
recognized role as a country of transit. 
- Tourism :  the Government has promoted the es tablishment of hotels needed to  
receive business travellers to the detrimen t of leisure facilities for holidaymakers, 
even though there are important classifi ed sites throughout the Congo, the most 
famous of which are the River Congo, the Nwabale-ndoki reserve, the Diosso Gorges, 
etc. 
51. All categories combined, there are 452 hotels, so me of which are State-owned and currently 
undergoing privatization. 
- Electricity :  the Congo has vast hydroelectric potential, estimated at over 2,500 Mw., 
but only the Moukoukoulou (74 Mw.) and Djoué  (15 Mw.) hydroelectric facilities are 
in operation.  There are also some small stations generating 100 to 1,000 KVA in the 
departmental capitals.  Total installed capacity is 94 Mw.  Given the scale of the 
needs, there is an undeniable shortage of electric power. 
- Water resources :  All urban communities have a dr inking water supply network that 
is more or less operational.  The tota l installed storage capacity is 26,050 m3 whereas 
production is only 6,067 m3. 
- Of the estimated demand for 100 million m3 of water, only 36 million m3 is supplied 
to the population, corresponding to 36 per cent coverage.  The Société Nationale de 
Distribution d'Eau  – SNDE (National Water Supply Company), a State-owned 
enterprise, is the subject of a rehabilitation and privatization programme. 
- Financial services :  The breakdown of the State banking system in 1974 prompted 
the State to introduce reforms that have led to the creation of four privately owned 
banks. 
52. As regards insurance, the unsatisfactory performance of the only State-owned company 
(Assurance et Réassurance du Congo  (Congolese Insurance and Re insurance)) has led the 
Government to liberalize the sector. 
(f) Social sector 
53. At the social level, the main feature is the deterioration in health and educational services, 
cultural and sports activities, as a result of  the numerous conflicts in the Congo. 
III. REFORMS UNDER WAY 
54. Confronted with this unsatisfactory situation,  the Government has taken several steps to 
accelerate economic development and improve the population's well-being.  These include the 
following: 
- Rehabilitation and continued establishment of basic infrastructures; Republic of the Congo WT/TPR/G/169 
 Page 11 
 
 
- building up investment capacity in social sectors (health, education, social welfare); 
- creating jobs for young people (by boosting agriculture and promoting investment in 
industry and services);  and 
- institutional and legal reforms. 
55. The strategy adopted by the Government is set out in two programmes: 
- The Programme intérimaire post-conflit  – PIPC (Post-conflict interim programme) 
2000-2002;  and 
- preparation of the Poverty Reduction Strategy Paper (PRSP). 
56. Concerning these reforms, the Government is cu rrently endeavouring to create an attractive 
economic environment, with focal points in the following sectors: 
Trade  
57. In this sector, the reforms relate to: 
- Enactment of Law No. 19-2005 of 24 Novemb er 2005 regulating the exercise of the 
profession of trader in the Republic of the Congo. 
- The main provisions of this Law include: 
- Reaffirmation of the freedom accorded to any Congolese or foreign natural or 
legal person to engage in business; 
- introduction of some restrictions, for example, concerning import and 
wholesale distribution activities, henceforward reserved to legal persons engaged in trade;  and 
- ban on import and export trade by transit companies. 
58. The law on imports and exports has been revi sed to take account of WTO principles and 
Agreements, the economic reforms undertaken w ithin the CEMAC, and recent domestic economic 
policy decisions. 
59. The purpose is also to protect the domestic economy from certain external factors such as 
smuggling, counterfeiting and inflation. 
60. The new law on imports, exports and re-exports in the Republic of the Congo provides for 
two (2) trade regimes: 
- The import declaration regime, which establis hes the principle of freedom to import 
goods and services without any quantitative restrictions;  and 
- the special import authorization regime, which, where applicable, concerns certain 
goods and services subject to temporary restrictions. 
61. The import licensing regime provided for in earlier legislation has been abolished. WT/TPR/G/169 Trade Policy Review 
Page 12 
 
 
62. The other reforms relating to trade and business come under laws still being prepared, such as 
the laws regulating competition and consumer protection. 
63. As to preshipment inspection, a contract for the verification of imports and exports was 
signed with the company COTECNA on 22 March 2006. 
Negotiations on the WTO Agreements  
64. The Congo takes an active part in the negotia tions on the Doha Agenda and, within this 
framework, supports all measures di rected towards objectives pursued  by developing countries as a 
whole.  These include the following: 
- Elimination of the agricultural subsid ies granted by developed countries; 
- "measured" lowering of customs tariffs taking into account the interests of poor 
countries; 
- free access to the markets of industria lized countries for developing countries' 
manufactures and/or agricultural products; 
- enhanced technical assistance; 
- access to essential medicines for those who most need them; 
- enhanced special and differential treatment; 
- promotion of aid for trade;  and 
- trade facilitation. 
Negotiations on the ACP-EU Partnership Agreements  
65. The Congo belongs to the Central African geographical formation th at is to sign an EPA with 
the European Union. 
66. This formation is composed of the six CEMA C States plus São Tome and Principe and the 
Democratic Republic of the Congo (DRC). 
67. A road map for the negotiations has been signe d jointly by the two parties and is being 
followed more or less normally. 
68. A number of stages in the current negotiations have already been completed, for example: 
- Several impact studies have been conducted; 
- information and training seminars for negotiators have been held;  and 
- some measures to strengthen subregional in tegration and supply capacity have been 
defined. 
69. As regards building supply capacity, some probl ems still have to be overcome in relation to 
the upgrading of the subregional economies. Republic of the Congo WT/TPR/G/169 
 Page 13 
 
 
Investment  
70. The relevant law reaffirms the freedom to enga ge in business, guarantees the repatriation of 
profits made by foreign companies and prohibits any discriminatory practices that hamper free competition. 
71. In addition, the process of privatizing State-owned ente rprises and strengthening the 
institutional framework for business is going ahead steadily. 
Agriculture and forestry
 
72. Because of its economic importance and consider able potential, agriculture is deemed a key 
sector for growth and poverty reduction. 
73. The Government intends to develop the sector along three lines: 
- Diversification and processing of domestic products; 
- renewal of a special mechanism to finance rural activities;  and 
- promotion of income-generating non-agricultu ral activities, including handicrafts and 
eco-tourism. 
74. The Government wishes to ensure sustaina ble management of forest ecosystems that 
contribute to development, together with conservati on of biological diversity and the stability of the 
national environment as a whole. 
75. This policy is set out in Law 16/2000 of 20 November 2000 containing the Republic of the 
Congo's Forest Code. 
76. In addition, the Government has taken steps to  enhance receipts from forestry operations by 
applying a felling tax, a tax on the export of forestry products, a surface area tax, a deforestation tax 
and an export surcharge. 
77. A programme for the preparation of forestry  management plans was introduced in 2000. 
Petroleum  
78. The reforms carried out in this sector concern the following, inter alia : 
- Division of downstream petroleum activities into eight branches:  refining, storage 
and transport, storage at sea, fuelling of aircraft, lubricants, gas, distribution, and 
imports; 
- creation of the Société nationale des pétroles du Congo  – SNPC (Congolese National 
Oil Company), responsible for marketing the Congolese State's share of crude oil under production-sharing agreements;  and  
- exclusion of CORAF from the privatization programme so that it can be restructured 
and reorganized beforehand. WT/TPR/G/169 Trade Policy Review 
Page 14 
 
 
Water and electricity  
79. The Société Nationale d'Electricité  - SNE (National Electricity Company) and the SNDE 
belong to the first group of companies to be privatized. 
80. The tendering procedure initiated in July 2001 w ith a view to granting concessions for these 
companies was unsuccessfu l because of the amount of the investment required to upgrade their 
industrial infrastructures.  Consequently, two essential measures were taken, namely: 
- Preparation of the programme for the re habilitation of the water and electricity 
infrastructures with the World Bank;  and 
- launching of the emergency programme for reorganizing the management of the SNE 
and the SNDE. 
Transport  
81. Reforms in this area concern: 
- The CFCO, concerning which the tendering pr ocedure for the grant of a concession 
was declared unsuccessful on 27 August 200 4.  The continuation of the process 
depends on the outcome of the option adopted by the Government, namely, to 
negotiate directly with the last  two candidates that made bids; 
- the river ports of the former Agence Transcongolaise de communication  – ATC 
(Transcongolese Communications Agency), which are being appropriately restructured; 
- the autonomous maritime port of Pointe-N oire, which has been the subject of a 
priority financing programme; 
- the autonomous river port of Brazzaville, which is still seeking financing for its 
redevelopment programme;  and 
- river transport, for which the only bid, by the private company NBTL, is under 
consideration. 
Posts and telecommunications
 
82. The telecommunications sector has been liberalized, but the Société des postes et d'épargne 
du Congo  – SOPECO (Congolese Posts and Savings Compan y) is still a State-owned entity and will 
be restructured, with the help of the World Bank. 
IV. OUTLOOK 
83. An overall evaluation of economic activities shows that considerable efforts are still required 
in order to create the conditions needed fo r genuine development of the Congo's economy. 
84. In order to do this, the Government is propos ing in the short and medium terms to continue 
implementing the commitments contained in the dom estic policy programme adopted five years ago.  
These include the following: Republic of the Congo WT/TPR/G/169 
 Page 15 
 
 
- Transforming economic insecurity and instability into steady economic growth by 
diversifying and modernizing the production base; 
- supporting the creation and devel opment of private enterprises; 
- promoting the Congolese economy's integration into the subregional and international 
economic system; 
- developing and modernizing the agri cultural sector by building the necessary 
infrastructure; 
- creating a genuine domestic industry based on the development of local resources; 
- developing the Congo's tourism assets thr ough eco-tourism in reserves and natural 
parks, cruise ship tourism on the River Congo and its tributaries, adventure tourism 
throughout the Congo and beach tourism on the Atlantic coast; 
- creating free zones capable of attracting foreign investors; 
- providing the country as a whole with viable infrastructures; 
- in-depth reform of the State through good governance, restoration of the State's 
authority and transparency in the management of public affairs; 
- introduction of administrative decentralization; 
- continued reorganization and diversification of the financial system; 
- developing trade and economic cooperation w ith other countries in the world;  and  
- pursuing negotiations on the WTO Agreements with the other members of the G90 in 
order to exert an influence on the final decisions concerning the conclusion of the 
Doha Agenda. 
 
__________