WORLD TRADE  
ORGANIZATION  WT/TPR/M/209 
9 June 2009 
 (09-2783) 
Trade Policy Review Body 
22 and 24 April 2009  
 
 
 
TRADE POLICY REVIEW 
 
MOZAMBIQUE 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Istvan Major (Hungary) 
 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE RE PRESENTATIVE OF MOZAMBIQUE 4 
III. STATEMENT BY THE DISCUSSANT 6 IV. STATEMENTS BY MEMBERS 10 
V. REPLIES BY THE REPRESENTATIVE OF MOZAMBIQUE AND ADDITIONAL 
COMMENTS  28 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 34 
 
Note:   Advance written questions by WTO Memb ers and the replies provided by Mozambique are 
reproduced in document WT/TPR/M/209/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/209 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The second Trade Policy Review of Mozambique  was held on 22 and 24 April 2009.  The 
Chairperson H.E. Mr. Istvan Major (Hungary) welc omed the delegation of Mozambique, headed by 
Mr. António Fernando, Minister of Industry and Trade and the discussant, Mr. Detlev Brauns (Germany).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The repor t by Mozambique was contained in document 
WT/TPR/G/209 and that of the WTO Secretariat in WT/TPR/S/209. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delega tion of Mozambique:  the European Communities, 
China;  the United States;  Japan;  Canada;  Br azil, and the Republic of Korea..  All advance 
questions, as well as the responses received from th e delegation of Mozambique are reproduced in 
WT/TPR/M/209/Add.1. 
4. The Chairperson said that he had considered  the Secretariat and Government Reports 
prepared for this meeting.  Both reports noted that  the reforms pursued by Mozambique since its first 
Trade Policy Review in 2001, which included th e lowering of maximum tariff rates and the 
simplification of the investment regime, had contri buted to high economic growth.  However, despite 
continuous growth, Mozambique rema ined among the poorest least - developed countries.  This was a 
result of existing supply - side constraints, as we ll as, of administrative hurdles, which inhibit the 
business environment and competitiveness. 
5. The importance of trade for the Mozambi can economy had increased since 2001.  While 
Mozambique had benefited from a large number of WTO activities to support the development of its 
international trade, further capacity building was ne eded.  He noted that Me mbers were keen to know 
more about Mozambique's needs a nd its position in the DDA negotiations. WT/TPR/M/209 
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  II. OPENING STATEMENT BY THE REPR ESENTATIVE OF MOZAMBIQUE 
6. Since its first trade policy review in 2001 , Mozambique has been through a period of 
significant change, in its trade relations. Substantia l increases and diversification in our export base 
have been complemented by major reforms of import tariffs, leading to  a very positive overall 
development in both trade policy and outcomes.  However, many challenges remain ahead, in 
particular to tackle supply-side constraints to allow our exporters to access international markets, 
crucial to international market. 
7. Our Poverty Reduction Strategy Paper revised in 2007, aims at poverty reduction through 
economic growth, with strong emphasis on entrepreneur ial initiative with the private sector playing an 
important role. Since then, our economy witnessed an  average of 8% of growth, doubled GDP per 
capita which today stands around US$460.  
8. In order to attract more foreign and domestic investment the Government introduced several 
measures to improve the business environment. A more simplified mechanism for licensing of small and medium enterprises was introduced as well as simplified mechanisms for taxation. Minimum 
capital and bank requirements to open up a business ha ve been eliminated. We believe that these 
measures will have a positive impact in im proving the overall Doing Business Ranking of 
Mozambique.  
9. Mozambique’s economy depends mainly on the agriculture sector with a large potential still 
to be developed. We need to transform the s ubsistence agriculture sector into a commercial one, 
creating the conditions of access to the opportunities the market provides.  
10. The energy sector is of major and growing impor tance to the economy. In March this year the 
Energy Strategy for 2009-2013 was approved. It aims to increase access to dive rsified energy forms in 
a sustainable manner.  
11. Mineral resources, including natural gas, is an open sector, with both foreign and national 
citizens allowed to prospect and obtain mining concessions. 
12. Our industrial policy seeks to build on Moza mbique’s primary resource base, focusing on 
agro-processing, textile/garment production and metallurgy products where obvious backward 
linkages exist. 
13. Important reforms have supported continued growth in the fi nancial services sector, with an 
open banking sector and a liberal insurance sector. The participation of fo reign companies in both 
sub-sectors has helped increasing competition, and we expect to see the involvement of more foreign 
companies.  
14. The transport sector is also in the process of lib eralisation, including in air transport. The 
telecommunications market has also been opened to foreign entrants.  
15. Tourism is playing an important role in th e development of the country. It is open to 
international investors and already characterised by significant levels of foreign participation. We are 
still working to make GATS commitment in this area. 
16. In terms of its multilateral trade policy, Mozamb ique has been following its obligations under 
the Uruguay Round, and since 2001 has made refo rms going far beyond those commitments. A new 
simplified MFN tariff schedule came into force in 2002 introducing a five-band system (including the 
duty-free band) and this was further adjusted in  2007 to reduce the maximum tariff to 20%. The  WT/TPR/M/209 
 Page 5 
 
 
  average trade-weighted tariff is around 7% reflecting a liberal regime compared to some countries 
with the same level of development. 
17. In 2001, three product categories were subject to  import surtaxes: sugar; cement; and certain 
galvanized steel products. The Government has su spended for two years the surtax on imported 
cement as from December 23, 2008.  
18. Concerning the sugar and certain galvanized st eel products, the removal of surtaxes are still 
being looked at. 
19. Looking forward to the conclusion of the Doha Round, Mozambique pays particular 
importance to a members’ consensus which impr oves market access for developing countries, and 
specifically the commitment in the Hong Kong Decl aration to duty-free, quota-free for all products 
originating from LDCs on the basis of simple, transparent rules of origin.  
20. Since the launch of the Doha Round seven years ago, we regret that no significant 
development has occurred in all major issues due to  the lack of political commitment. The success of 
this round depends on the extent and degree to which our developmental concerns of developing 
countries are taken into account, in particular the Least Developed Countries.  
21. We call for full engagement of all parties for the success of this process so that our countries 
can fully participate in the global economy and have a share of the benefits of the multilateral trading 
system.  
22. The Aid for Trade is the link between impr oved market access and the necessary supply 
capacity. Additional aid should be provided to build  on the success of the Integrated Framework. 
Concerning the Integrated Framework Mozambi que completed successfully the Diagnostic Trade 
Integration Study.  
23. Mozambique foresees substantial further technical  assistance needs to negotiate and further 
implement a number of trade agreements covering a range of complex areas.  
24. We have had several challenges ahead, such as th e reduction of non-tariff barriers to trade, in 
particular the harmonisation of technical requireme nts, and the amendment to domestic law required 
to implement trade in services commitments.  
25. The global economic and financia l crisis is already affecting Mozambique. One of the 
channels through which the crisis is being transm itted is international trade. The disruption of 
economic activity in our target markets has alr eady caused major falls in export prices, putting 
pressure on the current account. The concentration of our export profile on a few key products makes 
Mozambique particularly vulnerable to disruptive events brought by the crisis. 
26. Mozambique over the last 8 years has registered many positive developments as a result of a 
firm determination of its Governme nt in implementing courageous econom ic reforms. The results of it 
are already visible reflected by  major increases in exports and imports. And the Government is 
determined to diversify its exports  base to achieve greater performan ce and increase its share in the 
world trade.  
27. We believe and we are confident that with our determination and help of our trade partners 
we will do it.  WT/TPR/M/209 
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  III. STATEMENT BY THE DISCUSSANT (Mr. Detlev Brauns (Germany)) 
Economic environment 
 
28. Mozambique has emerged from decades of war to  become one of Africa’s best performing  
countries. One of the poorest countries in the worl d at independence, Mozambique’s economy has 
grown at over 8 per cent during the past 10 years, the highest rate among African oil-importers. GDP 
per capita has risen from about 230$ in 2001 to al most 400$ in 2007; millions of people were lifted 
out of poverty, notably in rural areas. Child mort ality has dropped and school enrolment has risen 
substantially. 
29. Despite high growth, Mozambique remains one of the poorest countries in the world. More 
than 50 per cent of the population continue to  live in absolute poverty. UNDP’s 2005 Human 
Development Index ranks the country 172
nd out of 177. Literacy and life expectancy are low; HIV is 
rampant in large parts of the population. The sec ond Poverty Reduction Strategy Paper adopted in 
2007 places economic growth and pove rty reduction at the center of the Government’s policy. It 
would in this regard be inter esting to know how the Government values the relationship between the 
strong growth registered in the last years and the distribution of income in the country. 
30. Under its economic reform programme the Government has observed prudent 
macroeconomic policies. Two years ago Moza mbique was upgraded from the IMF’s Poverty 
Reduction and Growth Facility. This is a major si gn of confidence in the Government’s continuing 
efforts. Main policy priorities remain macroeconom ic stability, budgetary and monetary discipline and 
a second wave of structural reforms. The Governme nt has taken steps to improve tax administration 
and collection and has attracted substantial flows of  Foreign Direct Investment. However, external 
shocks like increased oil and food prices have  thwarted efforts to keep inflation low. 
31. Growth is driven by megaprojects in a limited number of sectors (mainly mineral resources 
and energy). They are financed by foreign direct investment and public spending resulting from foreign aid. More than 50 % per cent of the na tional budget is financed by foreign donors. This 
obviously risks creating dependence. The private sector  plays a modest role, th e informal se ctor seems 
to be growing. I have seen reports estimating empl oyment in formal industrial enterprises at about 1.5 
% of the population only. This raises in my view  two questions: (1) How does the Government assess 
the opportunities to enlarge and diversify its economic  activity in terms of sectors and commodities as 
well as of economic actors and of sources of  financ ing? (2) The economic and financial crisis adds 
another challenge. Could the delegation of Mozambi que tell us which problems it expects and how 
these can be tackled?  
32. The Secretariat’s report notes that services are the leading sector of the economy, but that 
Mozambique’s economic potential remains largely untappe d. This is true in particular for the mining 
sector, which should contribute more to the country’s performance than its actual 1.3 % of GDP. Another sector to be developed is agriculture which employs roughly three quarters of the labour 
force, but remains below its potential and only accounts for 23 % of GDP due to low productivity.  
33. I would like to highlight two points in this resp ect: The first one is the persistence of supply 
side constraints. The Secretariat mentions a lack of  infrastructure: access to credit, insufficient supply 
of water and electricity – which is  a serious shortcoming for a country  relying on one energy intensive 
industry for exports -, insufficient transport and te lecommunications and a shor tage of skilled labour. I 
have read with interest recent articles in the pr ess on regional initiatives for a North-South-Corridor in 
Eastern and Southern Africa.  
34. The second point can be resumed under the heading of “governance”: The economic climate 
and the flourishing of private industry depend on an efficient public sector, a transparent regulatory  WT/TPR/M/209 
 Page 7 
 
 
  and administrative system giving the right ince ntives and ensuring coherent enforcement, a 
functioning infrastructure and an effective judicial system. The 2009 World Bank study “Doing 
Business” ranks Mozambique 141 out of 181, down from 139 one year ago. The GoM is engaged in 
reforms. The investment regime has been impr oved by the adoption of a new Commercial Code, a 
consolidated Code of Fiscal Benefits and a Labour  Law providing for new labour market flexibility. 
The World Bank study also shows a good ranking for Mozambique in terms of investment protection 
(where the country ranks 33 out of 181). The G overnment should be commended for this. But more 
needs to be done to foster the emergence of a pr ivate sector and reduce bureaucratic obstacles to doing 
business. In its report the Government highlights its  Anti-Corruption Strategy adopted in 2006 as an 
integral part of its Public Sector Reform Strate gy. It would be interesting to know more about 
concrete steps taken to implement this strategy. 
Trade Policy 
35. Trade plays an important role in Mozambique’s economy. According to the Secretariat, trade 
in goods and services amounts to 64 % of GDP. Goods  exports are heavily concentrated in a small 
number of areas, mainly aluminium (62%), fuels (14 %) and some agricultural cash crops, tobacco, 
wood, sugar and cotton. Manufactures only account fo r 1.9 % of exports, reflecting the weakness of 
the private sector and the concentration on megaproj ects (70 % of exports). More than two thirds of 
exports go to the EU under tariff preferences, less th an 20 % remain in the SADC-region. More than 
60 % of imports originate in South Africa and Aust ralia alone. This raises the question as to how the 
GoM sees the prospects of diversification in te rms of products and trading partners.    
36. Compared to the importance of trade to Moza mbique’s economic performance, the country’s 
participation and visibility in the WTO remains mode st, due to limited resources and an abundance of 
events to be covered. While this is to some extent unavoidable for small delegations I would 
nevertheless take up the Secretariat’s point identifyi ng a serious shortcoming as regards notifications. 
It would be in line with the renewed focu s WTO Members are placing on notifications and 
transparency if the GoM could bring about improvements is this respect. 
37. Tariffs have been brought down to comparably  low levels. The average MFN-rate declined 
from 13.8% in 2001 to roughly 10% in 2008. The maximu m tariff stands at 20%. Reductions have as 
a consequence increased the gap between applied and bound tariffs, leaving room for reducing bound 
rates. In contrast, the level of bindings is very  low at only 14.2%. The Doha negotiations are an 
opportunity in point. At the same time, Mozambique  is actively engaged in several negotiations on 
regional trade agreements. How does the GoM ensure  the articulation and coordination between these 
initiatives within and outside the East ern and Southern African region? 
38. After taking over customs management from an entrusted agent in 2005, the authorities are 
still grappling with a number of challenges. A burdensome import and export licensing system has 
remained unchanged for some years. The Secretariat reports that registration requirements for foreign 
establishments are more onerous than for Mozambi can nationals. A trade f acilitation agreement under 
the Doha Development Agenda coul d prove useful and helpful for Mo zambique to implement further 
customs simplification. Where has the Government identified its major needs for technical assistance 
in the field of trade facilitation? 
39. The State remains an important actor in Mozambique. Telling by the number of shareholdings 
held by the Institute responsible for the Management  of State participations, there are still more than 
150 public enterprises partly or wholly owned by the State. As the Secretariat rightly points out, basic 
services in housing, health, education, electricity, wa ter supply, sanitation and transport are of critical 
importance for the country’s development and for the efficient use of public and foreign donors’ 
funds. The Government has to be commended for it s efforts to revise the Government Procurement 
framework. Nevertheless Mozambique’s ranking in Transparency International’s Corruption WT/TPR/M/209 
Page 8  
 
  Perceptions Index has gone down from 97 in 2005 to 126 in 2008. Further restructuring inefficient 
monopolies, strict enforcement of procurement rules and developing a competition policy could 
further improve transparency and efficiency of the public sector.  
Sectoral Policies 
Agriculture 
40. The GoM notes in its policy report that the c ountry has immense agricultural potential. For 
the time being, the sector absorbs about three quarters of the labour force and contributes only about one quarter to Mozambique’s GDP. Therefore th e Government is right to call for a “green 
revolution”. With reference to its new Plan of Action for Food Production it would be interesting to 
know more about concrete measures and how the Government  will strike the balance between 
domestic food security and export orientation? Given that about only 10% of the country’s arable land 
are cultivated, are there possibilities to facilitate  land use through amendments of the legal 
framework?  
41. The agricultural sector has constantly been su ffering from natural disasters, such as flooding 
and droughts. With climate change accelerating, extreme weather phenomena such as storms, heavy 
precipitations or longer dry periods are likely to  increase. Has the Government taken these new 
challenges into account in its agricultural deve lopment policies? Which new regional cooperation 
initiatives could be taken to prepare and harness Ea stern and Southern African agricultural sectors 
against the impact of climate change?  
42. Secretariat and Government agree that another subsector to be developed is fisheries and 
aquaculture. This statement stands however in st riking contrast to Mozambique’s performance in 
fisheries export volumes and values as contained in the Secretariats’s report. How does the GoM 
explain a drop in fisheries exports between 2005 an d 2007 by about 60%? What has it done to remedy 
to this situation?  
Manufacturing, Mining and Energy 
43. With the Government’s policy aiming at improvi ng the agricultural productivity, a part of the 
agricultural labour force will seek employment in manufacturing or other productive sectors like 
mining, energy, electricity or construction. Their economic performance has stagnated since the last 
Review at about 20–25% of GDP but there is consensus that the prospects are good.  
44. Mining is said to have big potential, not least  in coal, but success will depend on the end of 
the economic crisis and world commodity prices to  recover. We have noted with satisfaction 
Mozambique’s efforts to accede to  the Extractive Industry Transparency Initiative. Further developing 
the electricity supply will be vital for all sectors. I have learned from a recent report from the 
Economist’s Intelligence Unit that elec tricity supply problems were one of the main reasons for the 
announcement of Mozal (the country’s biggest  aluminium smelter accounting for 60 % of 
Mozambique’s exports) to lay off almost 10 % of it s work force.  Hydroenergy has certainly a key 
role to play here. Besides, Mozambique is at present exploring a number of new oil and gas projects. 
My question would be if domestic fuel production, th at has been mainly exported, could be used to 
increase domestic electricity security and reduce de pendence from volatile  world market prices for 
imported fuels.  
45. The Government’s Industrial Policy for 2007-2011 has identified food processing and agro-
industries as key manufacturing priorities. This is  coherent with the pla nned strengthening of the 
agricultural sector, but it also reminds us of the necessity to improve the economic environment and 
set the appropriate  policy orientations. Traditio nally, generous incentives have directed foreign  WT/TPR/M/209 
 Page 9 
 
 
  investment into a small number of capital intens ive export oriented industries, however with little 
impact on the labour market. While this has b een successful in generating export revenue and 
stabilising the external balance, incentives ha ve not equally benef ited domestic industrial 
development and the emergence of small and medium sized enterprises. The Government is at present reviewing its incentive schemes to increase fiscal revenue from megaprojects. Targeted assistance 
could be useful to activate domestic manufacturing and processing and to create more labour intensive 
growth. In its report the Government highlight s its strategy to assist the development and 
revitalisation of the industrial sector. It would be  interesting to hear which concrete steps the 
Government’s intends to take in this regard.  
Services 
46. The Government stresses that the country’s service sectors have undergone significant and 
structural reform. This is true particularly in  the transport, financial and insurance sectors.  
Teledensity has grown considerably thanks to mobile phone communication. With its outstanding 
abundance in natural treasures, beaches, mountains and natural parks, Mozambique is one of the most 
attractive tourist destinations in Southern Africa.  
47. Further development is however necessary to en sure the country’s continued growth. As the 
Secretariat underlines, access to affordable fina nce, not least in the agricultural sector, remains 
insufficient. Internet availab ility remains low. Mozambique is  a gateway for its landlocked 
neighbours; this will require a high level of tr ansport infrastructure investment. Tourism would 
benefit from cheaper air fares. Maybe the Government could give us an insight where it sees the main challenges and measures to be taken in this respect. 
48. Mozambique has gone a good part of the way. Some have called it an African success story. 
The Government has shown consid erable engagement and commitmen t to substantial and sometimes 
painful reforms. A lot has been achieved, but more  needs to be done, there is no reason for slowing 
down.  
 WT/TPR/M/209 
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  IV. STATEMENTS BY MEMBERS 
EUROPEAN COMMUNITIES 
49. Before I address Mozambique’s trade policies and practices, I would like to say a few words 
about the current difficult global economic envi ronment as the least developed countries are 
particularly vulnerable to the global crisis due to the structural weaknesses inherent in their 
economies. 
50. Mozambique has witnessed a decade of re markable economic performance (with GDP 
growing on average 8% per year and 6% in per capita  terms). It should be able to advance through the 
crisis as long as sound responses are put in place. A sustained and more diversified economy, as well 
as economic diversification, are badly needed in  Mozambique. Further steps should be taken to 
improve the investment climate for private companies by cutting administrative red tape, 
reinvigorating the reform of the public sector , strengthening banks and investing more in 
infrastructure, particularly in the rural areas. 
51. In the meantime, our immediate task - and I am referring to all major ec onomies - is of course 
to restore global demand, keep our markets open and not to allow setback in the assistance provided 
to the most vulnerable countries. 
52. We pay tribute to Mozambique on the number of  measures it has undertaken to make its trade 
regime more open, transparent and to bring it into conformity with the rules of the WTO.  
53. Apart from the simplified and lower applied tariffs, the EC would first highlight the 
implementation of WTO Agreement on Customs Valu ation and the broader efforts to reform and 
streamline customs. This process is a key aspect of trade facilitation and has already proven to be a 
success story in Mozambique. It improved the business environment and significantly increased 
customs revenues while tariffs were brought down.  
54. We also welcome the progress towards establishing a competition policy and the new 
government procurement legislation. We encourage the government of Mozambique to continue to 
pursue this direction.  
55. I would also like to encourage a persistent engagement in the DDA negotiations in which 
Mozambique - as other LDCs – has much to gain .  A Doha deal promises to secure unprecedented 
new opportunities for agricultural exports. In this rega rd, we continue to support the LDCs in their 
request to substantially reduce distortions in the production and trade of cotton.  
56. As for industrial goods, Mozambique will benefit most from a freeing up of south-south trade 
where the highest tariffs still persist.  We hope th at not only other developed countries but also the 
emerging developing economies will extend to a ll LDCs duty and quota free market access of the 
kind the EC has already given under our Everything But Arms scheme.  
57. As an LDC, Mozambique will be exempt fro m any tariffs reductions under the DDA and we 
are fully behind this agreement. Nevertheless, Mo zambique has only very few non-agricultural tariff 
lines bound also the applied rates have been brought  down to relatively low levels. We invite 
Mozambique to extend the scope of  bindings on industrial products.  
58. The EC has a track record of successful bila teral cooperation with Mozambique that has 
provided Mozambique with continuously improved acces s to our market. As a result, the EU is the 
destination of about two thirds of Mozambique's exports in recent years.   WT/TPR/M/209 
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  59. The latest groundbreaking step was the initia lling of the interim Economic Partnership 
Agreement in November 2007 as part of a region-to -region agreement between the EC and a group of 
countries within the SADC (Southern African De velopment Community). This agreement already 
includes a fully fledged development cooperation chapter, as well as chapters on SPS, TBT, trade 
facilitation and a protocol on Rules of origin. We are fully committed to continue negotiations 
towards a full EPA that will cover not only trad e in goods but also services and investment.  
60. The EC has been accompanying the EPA in th e negotiation and implementation stages with 
increased trade-related assistance to  the region, based on their needs and priorities. Substantial support 
is being provided, for example, to strengthen capacity for implementation and compliance with 
technical standards and sanitary and phytosanitary measures. 
61. Additionally, under the 10th European Development Fund Mozambique has been allocated 
622 million Euros notably for transport infrastructure,  agriculture and rural development, and regional 
integration.  This extensive support and the EPA should be instrumental to Mozambique’s deeper 
economic integration with its SACU  and SADC neighbours. This should finally lead to Mozambique's 
greater and more diversified participation in global trade and investment flows.  
62. Finally, while Mozambique indeed faces a number of short- and long-term challenges, there is 
no shortage of potential – in agriculture, mineral and energy resources, transport and tourism to 
mention just a few. Trade can unleash this potential as long as Mozambique continues to do its part in 
creating favourable conditions for private sector development. 
63. Along this path Mozambique can count on our strongest support. We value the constructive 
partnership established with Mozambique in the tr ade and development area and we look forward to 
continue working together towards our shared objectives of sustainable development and poverty 
eradication.  
CHINA 
64. China and Mozambique enjoy friendly relations . Mutual high-level visits are frequent. In 
November 2006, President Guebuza attended th e Beijing Summit of the Forum on China-African 
Cooperation where eight measures were promulgate d to strengthen economic and trade ties between 
China and Africa. In February 2007, President Hu Jintao paid a state visit to Mozambique, during which, leaders from the two sides reached broad agreements on implementing the results of the 
FOCAC Beijing Summit. 
65. Trade between China and Mozambique has been  developing fast. In 2008, bilateral trade 
amounted to 423 million US dollars, which is an increase of 48.7% over 2007. China mainly exports 
mechanical, electrical, metal and textile products  while imports lumber products, minerals and 
sesame. In order to increase the imports from LD Cs including Mozambique, China has provided duty-
free-quota-free treatment to 466 products origina ting from these countries. And we are working on 
extending this treatment to over 95% of all products. 
66. As of the end of 2008, direct investment of China in Mozambique reached 34.64 million US 
dollars. Chinese enterprises also signed labor ser vice contracts of 1.13 billion US dollars in 
Mozambique with the accomplished tu rnover of 630 million US dollars. 
67. Since 1974, China has provided economic and technical assistance to Mozambique worth 
2.4 billion RMB yuan. Under the framework of  China-African Cooperation Forum, China has 
discharged Mozambique from debt of 300 million RM B yuan. During the 2007 visit of President Hu, 
China committed to provide preferential loans of  1.2 billion RMB yuan to Mozambique. Now five 
projects have been confirmed under this arrangement. China takes note  of Mozambique’s position that 
Aid for Trade should be additional and non-cond itional. And we fully share this position. WT/TPR/M/209 
Page 12  
 
  68. As a long time friend, China notes with pleasure that quite a few economic indicators of 
Mozambique over the past years have been positive, as mentioned by our discussant in his 
intervention. Economic growth rate has averaged 8 percent over the last five years with inflation 
significantly reduced. GDP per capita has register ed a significant increase from 230 US dollars in 
2001 to 466 US dollars in 2008. It is worth mentioning that still a least developed country, 
Mozambique has established a National Strategy  for Sustainable Development to integrate 
environmental consideration into its economic polic ies and poverty alleviation programs. This is 
highly commendable. 
69. With a relatively small mission in Geneva, Mozambique has managed to remain as active as 
possible in the WTO.  Her Excellency Ambassador Fr ances Rodrigues has played an important role in 
the G33 to defend the rights of developing Members in  the agriculture negotiations for the use of SP 
and SSM. China is ready to work with Mozamb ique and other Members in pushing the Doha 
negotiations to an early conclusion, which is mo re needed against the background of the current 
global financial and economic crisis. 
70. Finally, we thank the delegation of Mozambi que for providing responses to our advance 
questions, especially on the impact of  the financial and economic crisis. 
UNITED STATES 
71. The United States enjoys a growing bilateral trade relationship with Mozambique as well as a 
vibrant dialogue with the Mozambican government a nd private sector on trade and investment issues.  
Two-way United States-Mozambique goods trade to talled $229 million in 20 08, nearly double our 
total bilateral trade in 2007.  Substantially all Mozambican imports enter the United States duty-free 
under the African Growth and Opportunity Act (AG OA), the Generalized System of Preferences, or 
zero-duty most-favoured-nation provisions.  Mozambi que is also one of 11 sub-Saharan African 
countries and regional organizations with which the United States has a Trade and Investment 
Framework Agreement, or “TIFA”.  U.S. Trade Representative Ron Kirk and Mozambican Minister of Commerce and Industry Antonio Fernando participated in the most recent meeting of the U.S.-
Mozambique TIFA Council, on March 24 in Washin gton, DC.  The meeting included discussions on 
U.S.-Mozambican trade, implementation of AGOA, the Doha negotiations, trade capacity building 
activities, and measures to improve the environment for U.S.-Mozambican trade. 
72. The United States is committed to helping Mozambique use trade to advance its economic 
development.  Toward this end, we are providi ng substantial trade capacity building assistance to 
Mozambique, most prominently through a $506. 9 million Millennium Challenge Corporation 
compact.  Nearly half of the compact’s funding is ta rgeted for trade-related projects, including road 
rehabilitation, trade policy reforms, efforts to dive rsify agricultural exports, and improvements to the 
business environment.  The U.S. Agency for Intern ational Development (USAID) also has an active 
program in Mozambique focused on economic grow th.  In addition, the U.S.-supported Southern 
Africa Global Competitiveness Hub is working with the Mozambican Government and private sector 
to help them maximize trade opportunities under AGOA.  Mozambique has been an AGOA 
beneficiary from the outset of the program in 2000. 
73. Mozambique has made significant progress in reforming its trade policy regime since its first 
TPR in 2001.  It has adopted a new Commercial Code, implemented the WTO Customs Valuation 
Agreement, revised its intellectual property righ ts regime, lowered its maximum tariff rates, 
simplified licensing for commercial activities, and – just a few months ago – eliminated minimal 
capital requirements for investors.  These actions have resulted in significant improvements to 
Mozambique’s trade and investment environment and have encouraged more direct investment and trade.  WT/TPR/M/209 
 Page 13 
 
 
  74. As the government of Mozambique moves forw ard with the economic reforms identified in 
its TPR report, we encourage it to continue to gi ve special attention to measures to improve the 
business climate and to enhance its internationa l competitiveness.  We would also encourage 
Mozambique to listen closely to specific concerns  that foreign and local companies raise about 
conducting business in the country.  The World Ba nk’s “Doing Business 2009” report, for example, 
cites several areas in which the business envir onment is not conducive to investment and 
entrepreneurial activity, including the time and numb er of procedures required to start a business and 
obtain construction permits, and the difficulty of hiring and firing workers.  On the other hand, we 
note that the World Bank report cited Mozambique as one of the most highly rated countries in sub-
Saharan Africa for protecting investors.  USAID is working with the Mozambican government to help 
it address some of these and other factors covered in the “Doing Business” report. 
75. The United States would like to draw attention to the observation in the Secretariat’s report 
that Mozambique has yet to meet its notificatio n obligations to the WTO.  We encourage the 
government of Mozambique to increase its effort s to meet these requirements for the sake of 
transparency, a key component of open global trade and a core tenet for the smooth operation of the 
multilateral trading system. 
76. The United States also submitted questions on a few topics described in the Secretariat’s 
report.  In particular, we have several questi ons about Mozambique’s pre-shipment inspection 
practices.  While we understand that Mozambique ha s scaled back the use of pre-shipment inspection 
in recent years, the practice adds significant time and expense to the movement and importation of 
goods.  We also have a few questions on customs duties, sanitary and phytosanitary measures, the 
industrial free zone regime, and intellectual prop erty rights.  We look forward to reviewing 
Mozambique’s responses carefully, providing comments, and requesting clarifications as necessary during the course of this TPR. 
JAPAN 
 77. Japan would like to welcome steady economic gr owth in Mozambique since the late 1990’s 
with the progress of the peace after civil war. De spite a series of flood disasters since the year 2000, 
Mozambique has regained upward momentum mainly due  to foreign direct investment and projects of 
repairing infrastructure. As discussant has pointed out, the average growth rate is 8.7% and 7.1%, 
between 2001 and 2007 and in the first half of 2008 r espectively. Japan notes that increasing foreign 
direct investment has promoted large-scale projec ts such as aluminium smelting, the Maputo Corridor 
project, and the Beira Corridor project. In this context, Japan hopes that the Government of 
Mozambique continues its economic reforms, as  well as takes necessary measures to sustain its 
economic growth and stabilize its macro economy. The steady implementation of the "Program of 
Macroeconomic Stabilization and Structural Re form" should be one of the good examples.  
78. As for development policy of Mozambique, Japan  notes that despite an effort aimed at 
poverty reduction through "Action Plan for the Reduction of Absolute Poverty" (PARPA II), as 
discussant has pointed out, "human development inde x" of the UNDP puts Mozambique in the lower 
rank. In this regard, Mozambique is expected to further improve the aforementioned situation. Japan 
has supported the efforts taken by Mozambique th rough grant aid, yen loans, technical cooperation 
and grant aid to local culture. Taking this opportu nity, we are pleased to further strengthen our 
support and cooperation through the TICAD process, Tokyo International Conference on African 
Development. 
79. Having said that, Japan needs to refer to some  concerns about the environment of foreign 
investment in Mozambique. Let me touch upon two specific examples. With respect to prospecting 
rights and mining rights on mineral resources, Japa n is reported that the Ministry of Mineral 
Resources sometime indicates a revocation of issued certificates on the ground that majority of the WT/TPR/M/209 
Page 14  
 
  companies have not started their business. Japan, however, is of the view that legitimacy of such 
revocation and the procedure of re-issuing certificat es are not necessarily clear. As for labour policy, 
the Secretariat report states, ‘the new Labour Law continues to restrict the hiring of foreign staff, 
providing for maximum quotas according to the number  of employees’ and also explains, ‘hiring of 
foreign staff in excess of these quotas must be appr oved by the Ministry of Labour, and foreign staff 
may only be employed if there are no Mozambicans qualified for the job, or if there are not enough 
with the required skills’. Bearing these examples  in mind, the Government of Mozambique is 
expected to be mindful to avoid adverse effect of its policy on foreign investment to Mozambique.  
80. I very much appreciate the delegation of Moza mbique for providing its detail answers to all 
advance written questions from Japan this morning. 
81. In conclusion, Japan would like to reiterate  its hope that Mozambique will continue to 
promote trade liberalization and structural reform as well as to further participate in the WTO, in 
order to benefit from the multilateral trading system.  Japan sincerely hopes that useful discussion and 
oral and written responses today and on Friday  will help Members understand the Mozambique's 
needs for its sustainable economic development through trade.  
CANADA 
82. Canada attaches importance to its trade links w ith Mozambique:  in 2008, bilateral trade in 
goods amounted to some US$12.4 million.  Even though bilateral trade and inv estment are currently 
modest, there is a vast potential for strong growth .  An increasing number of Canadian companies and 
institutions are showing an interest in Mozambique , organizing visits there and investing, a trend 
which, we hope, will continue. 
83. Canada congratulates Mozambique on its st rong overall economic performance since 2001, 
and on the ambitious strategic targets it has set.  Rapid economic growth, gr adual liberalization of 
trade, political stability, control of inflation and positive macroeconomic reforms are all factors that 
have increased Mozambique's trade attraction.  Canada  welcomes the fact that, for the period 2008 to 
2010, Mozambique has decided to pursue a macro economic stabilization and structural reform 
programme, with the aim of enhancing the business climate and establishing conditions favourable to 
private investment.  Canada also welcomes with satisfaction Mozambique's strategy to combat 
corruption, which will help to enhance transparency in the country and, more particularly, certainty 
and predictability for im porters and exporters. 
84. From 2001 to 2007, Mozambique had an impressive rate of economic growth, averaging 8 per 
cent annually, and it is expected that it will remain  well above the real growth rate in the world in 
2009 and 2010.  Nevertheless, despite this progress and its economic development, Mozambique is 
still a least developed country with an economy de pendent upon natural resour ces and it is suffering 
from the impact of the global financial and economi c crisis.  Mozambique is also still reliant on 
international aid. 
85. Canada’s international aid c ontribution to Mozambique was worth CAD$70 million, roughly 
equivalent to US$56 million, in fiscal year 2008-09 . Canada will contribute the same amount in 2009-
2010. Mozambique is one of the five most important  partners for Canada in  terms of development 
cooperation, and our two countries have already est ablished a solid foundation for dialogue through 
their annual bilateral consultations. We praise Mo zambique’s commitment to poverty reduction and 
note the importance placed by Mozambique on integrati ng trade priorities into its development policy. 
86. Canada is pleased with Mozambique’s overall commitment to the WTO, and notes that 
Mozambique has made real progress in its support fo r trade liberalization, notably with respect to 
customs valuation and the protection of intellectua l property rights. Canada encourages Mozambique  WT/TPR/M/209 
 Page 15 
 
 
  to continue to support trade liberalization by  taking a stronger approach to promoting good 
governance and transparency, by meeting its notifi cation obligations, and by placing more emphasis 
on capacity-building opportunities. 
87. Finally, Canada would like to emphasize that  the overall, long term economic outlook for 
Mozambique remains solid. We encourage Mozambi que to focus on enhancing the transparency and 
predictability of its trade regime, as well as its de termination to press ahead with the reforms that are 
needed to accelerate economic growth, p overty reduction, and social progress.  
88. Canada looks forward to having a construc tive exchange of views on all aspects of 
Mozambique’s trade policy. We have submitted a num ber of questions and look forward to receiving 
Mozambique’s responses. 
BRAZIL 
89. Let me start by congratulating Mozambique fo r the remarkable progress the country has been 
enjoying since 1992, when the internal conflict ended. The political stabilization created an 
environment conducive to development and  conti nued growth of the GDP. Sharing common culture 
and heritage with Mozambique, Brazil is deeply co mmitted to strengthen bilateral ties and deepen its 
relationship with Mozambique, thus, cont ributing to the country’s development. 
90. Our bilateral commerce has increased approxima tely 40% in the last five years, having 
reached US$ 32,4 million in 2008.  Although the tr ade balance has traditionally shown Mozambique’s 
deficit, it is important to notice  that Brazil’s imports from Mozambique have been showing a steady 
and rapid increase, giving us hope that we are on the way to revert prevailing imbalances. In the few 
months in 2009, Brazil already imported US$ 2 million, a sizeable increase in relation to last year’s 
figure. Brazil’s main exports to Mozambique ar e poultry and manufactured products, whereas Brazil 
has imported essentially tobacco. Bearing in mind the high growth rate of the country, we are hopeful that our trade relationship will expand markedly in the coming years. 
91. Brazil is a major foreign investor in Mozambi que, especially in the areas of mining and infra-
structure. Vale do Rio Doce, a leading mining comp any in Brazil, has initiated a coal project in 
Moatize with an estimated cost of US$2 billion. As  pointed out in the Secretariat’s Report, mining 
resources in Mozambique have not fully develope d their potential, as they are not as yet fully 
explored.  Coupled with the Moatize project, Vale do Rio Doce also intends to build a thermoelectric 
plant to be fueled by non-exportable coal. This will mean additional investments in the order of 
US$ 2,5 billion. Other Brazilian construction comp anies, such as Camargo Correa and Norberto 
Odebrect have projects in Mozambique ai med at developing local infra-structure. 
92. Also, in the area of health, , one of the most  renowned Latin-American institutions in science 
and technology associated with the production of dr ugs, Fiocruz, established last year in Maputo its 
first foreign branch. 
93. In the field of technical cooperation, Mozambi que constitutes one of Brazil’s main partners, 
with 10 projects in place, according to the needs identified by the Mozambican side. Our projects 
portfolio comprises agriculture, fo restry, health (nutrition and technology transfer for the production 
of drugs to fight HIV/AIDS), education, sports and urban development, th e financial resources being 
estimated at US$7,7 million. 
94. Debt relief remains high in the bilateral agenda, as in 2004, the two countries signed 
an agreement which cancelled 95% of Mozambican ’s debt. With that Mozambique could save 
US$280 million and redirect those resources to investme nts in the areas of health, education and infra-
structure. WT/TPR/M/209 
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  95. Brazil notes with satisfaction Mozambique’s effort s to participate in the multilateral trading 
system. Tariffs reduction during the period of revi ew is a clear evidence of the willingness of a 
country with limited resources to contribute to the liberalization of world trade. Unfortunately such 
efforts have not been met by reciprocal measures in te rms of elimination of dist ortions and restrictions 
in developed countries, technical barriers to trade, sanitary and phytosanitary measures and 
complicated rules of origin. Such measures would greatly assist Mozambican agricultural exports and 
allow for a larger participation of the country in world trade. 
96. Brazil deserves praise for the efforts it is deploy ing to achieve closer conformity with WTO 
rules. Brazil is in agreement with the Secretariat’ s report concerning the role of trading partners in 
ensuring that their markets should be fully open to goods and services of interests to Mozambique, 
and by providing more technical assistance. We  do believe that the country will achieve full 
conformity with WTO rules when those conditions are met. 
97. It is also important to point out Mozambique’s active participati on in regional and preferential 
trade agreements. Brazil supports the idea of regional  integration, as we are deeply involved in such 
processes in South America. We believe that such efforts should be anchored in an open regionalism, 
leading to a better insertion in the global trading system.    
REPUBLIC OF KOREA 
98. Korea is pleased to participate in the 2
nd trade policy review of Mozambique, a nation that has 
made great strides in economic development overc oming much adversity since independence. Korea 
notes and extends its appreciations to Mozambique  for introducing a number of important reform 
measures since 1997 which contributed to the high economic growth achieved during the years 2001 
through 2007. In particular, this delegation is of the view that Mozambique’s reform measures in the 
areas of monetary policy, fiscal policy, and tax collection and administration, as well as its “Anti-corruption Strategy” implemented as an integral pa rt of the “Public Sector Reform Strategy” has 
served to lay the foundations for a more transparent,  efficient, and sustainable Mozambican economy.  
99. In light of the success witnessed thus far, and taking into account the observations and 
recommendations of the Secretariat, Korea would lik e to encourage Mozambique to press forward in 
introducing further reform measures in areas relati ng to the overall business environment. Experiences 
of most WTO members suggest that the removal of administrative hurdles and administrative red-tape is a necessary condition for promoting entrepreneur ship; which in turn further promotes economic 
development.  
100. The bilateral relationship between  Mozambique and Korea are in its infancy with official 
diplomatic relations being established just in th e early 1990s. However, in light of the economic 
potential of Mozambique and the will of the Mo zambican people for progress, coupled with the 
complementary nature of the economic structure of the two countries, we foresee much greater 
progress in the Korea-Mozambique relations in the years to come. In fact, as a fellow developing 
country that has had to start its development process  after a devastating war that destroyed the entire 
agricultural and industrial base some six decad es ago, we understand and sympathize with the 
difficulty and adversity faced by our colleagues from Mozambique. In this context, my delegation looks forward to closer economic and social c ooperation so that we may share our development 
experiences in the future.  
101. Prior to the 2 week deadline, my delegati on submitted a number of advanced written 
questions to Mozambique. Through the written ques tions my delegation wanted to better understand 
the foreign investment regime of Mozambique, a nd whether there were plans to improve their FDI 
regime in the near future. Furthermore, we requ ested information on MOZAL. This was to get better  WT/TPR/M/209 
 Page 17 
 
 
  acquainted with the mega-project, and find out whet her there are any lessons to be learned from the 
MOZAL success story that could be relevant for other similar endeavours in the future. 
102. Taking this opportunity, we would like to express our appreciation to the Mozambican 
delegation for the answers provided this morning. We  will certainly review the answers provided, and 
revert on Friday if necessary.  
HONDURAS 
103. We have noted with satisfaction from the Secret ariat's Report that the reforms undertaken in 
Mozambique have contributed to the high rate of economic growth in the country.  This has been 
triggered by mega projects, especially in the area of mining, financed through foreign direct 
investment and government spending wi th funds coming from external aid. 
104. It is a particular source of satisfaction to note that Mozambique respects its commitment to 
implement prudent fiscal and monetary policies and that it has made significant efforts to lower its public deficit, even though these have been affect ed by external factors, among which we could 
mention the increase in oil and cereal prices. 
105. The leading sector in the economy is services, followed by agriculture and manufacturing.  
Even though the services sector accounts for 55 per ce nt of GDP, the agricultural sector is essential to 
achieving the poverty reduction objectives as it is the sector which employs three quarters of the population, who are engaged in subsistence farming. 
106. Mozambique's multilateral trade record began t ogether with the WTO as it was an original 
Member and grants at least MFN treatment to all its  trade partners.  It supports the positions of the 
LDCs and the African Group, as well as the ACP co untries and the Group of 77 developing countries, 
with regard to multilateral issues and technical assistance. 
107. We note with satisfaction that it has made progress in implementing the rules of the WTO, 
particularly as regards customs valuation and the protection of intellectual property rights.  We are 
also pleased to note that Mozambique has bene fited from activities carried out within the WTO 
framework in support of the development of its in ternational trade, in particular, those under the 
Integrated Framework and the Joint Integrated Technical Assistance Programme, even though its 
participation in these and other activities needs to  continue so as to build up national capacity. 
108. With regard to its trade policy instruments, we note with satisfaction that during the period 
under review Mozambique lowered its tariffs on two occasions, applied the WTO Customs Valuation 
Agreement, revised its regime to protect intellect ual property rights and enacted a general policy on 
competition. 
EGYPT ON BEHALF OF THE AFRICAN GROUP 
 
109. The African Group would like to extend its full and continuous support to Mozambique 
during its second Trade Policy Review.  The African Group commends the reforms pursued by Mozambique since its first Trade Policy Review in  2001, which have contributed, according to the 
Secretariat Report, to economic growth of 8.7% on average per year during 2001-07. 
110. Since its first TPR, trade has become more important to Mozambique's economy.  The 
Secretariat's Report indicates that the ratio of tr ade in goods and non-factor services to GDP increased 
from 54.1% in 2001 to 64.4% in 2007, and that Mozambique has made some progress on the implementation of WTO rules since then. WT/TPR/M/209 
Page 18  
 
  111. But despite continuous economic growth, a nd the increasing importance of trade in its 
economy, Mozambique remains among the least devel oped countries, and its participation in the 
multilateral trading system remains modest. 
112. This entails support of all the WTO Member s to help Mozambique further develop its 
economy through trade.  This could be done by gr anting preferential trade arrangements to imports 
from LDCs, and by ending Trade Distorting subsidies, especially those granted by developed 
countries to cotton producers, which is of vita l importance to Mozambique and other African 
countries. 
113. This kind of support is of more urgency du ring the current Global Economic and Financial 
crisis, which will have a double effect on Africa n economies, through the im pact of individual 
responses of countries, particularly developed ones,  in the form of stimulus packages and bailout 
plans, which will have a long term negative eff ect on the competitiveness of the African economies. 
DOMINICAN REPUBLIC 
 
114. The Dominican Republic would like to draw at tention to some elements emerging from the 
Secretariat's Report on this second Review of Mozambique, for example, its continued 
implementation of reforms that have led to better management of its fiscal spending and improved the 
system for administering and collecting taxes, as well as its commitment to implement prudent fiscal and monetary policies, which allow it to pursue stable economic growth. 
115. Mozambique, as a least developed country (LDC), has made efforts to apply the 
WTO Agreements and although it does not have suffici ent resources to participate to a greater extent 
in these forums it has been very active in suppor ting the positions of the ACP Group, the African 
Group, and the LDCs, inter alia .  We would, however, urge it to identify its technical assistance 
requirements so as to continue to build and strengthe n capacity to allow it to notify its progress in the 
area of trade in a timely and appropriate manner and thus be given greater opportunities in these areas. 
116. We call on Mozambique to maintain this vi sion of reform, focusing on the public sector, 
promotion and development of the business envi ronment, the security of natural resources 
administered transparently and last, but not least, those reforms intended to develop human resources.  These are also a guarantee of attracting and retaini ng greater and better benefits from foreign direct 
investment (FDI), as well as the creation of poverty reduction programmes, and are a considerable boost to strategies such as those included in the Ac tion Plan for the Reduction of Absolute Poverty, 
which is equally important for progress in trade policy. 
ANGOLA 
117. Mozambique must be congratulated for the progr ess made over the past years in the political, 
economic and social fields since the end of the co nflict, thanks to the strong commitment of its 
political leadership. 
118. We welcome the reforms undertaken by the G overnment of Mozambique in the areas of 
infrastructure and mega projects funded by foreign direct investment and levels of public spending 
financed largely by foreign aid;  we would also  like to welcome the monetary and fiscal policies 
undertaken by the Government of Mozambique that contributed to the economic growth that Mozambique has witnessed over the p ast years, the average of 8.7%. 
119. Despite its continued growth the economic potential of Mozambique is largely under-
exploited because of several factors.   WT/TPR/M/209 
 Page 19 
 
 
  120. We welcome the implementation of the Action Pl an for the Reduction of Absolute Poverty 
adopted in 2006, which aims to reduce poverty indi cators from 54% to 45%.  The services remain the 
dominant sector of the economy in Mozambique followed by agriculture and the manufacturing 
sector.  However, the agricultural sector employs about three quarters of the population and thus plays a central role in the achievement of poverty reduction set in the program. 
121. We encourage the Government of Mozambique  for the implementation of incentives under 
the system of industrial free zone (EPZ), as a part of  mega projects that have contributed to the surge 
in exports and imports recorded  between 2001 and 2007 and increase its share of trade in goods and 
non-factor services in GDP from 54.1% to 64.4% in less than six years. 
122. On the trade regime and investment, we welcome the amendments and modifications made in 
the constitution for decentralization and improving th e functioning of the judiciary and the business 
environment and investment.  We welcome as well, the adoption of a new commercial code and other 
codes specifically reserved for the unified tax for mi ning and oil under the EPZ  regime which allowed 
to attract the high volume of FDI from the first revi ew and are being reviewed and a new labor law. 
123. As regards trade policy instruments, we note w ith satisfaction that it has lowered its rates 
twice:  from 20 to 25% in 2002 and from 25 to 20% in  2007.  This in spite of the commitments under 
the Doha Round which does not oblige Mozambique  to be submit under the regime of tariffs. 
124. Mozambique has established since 2007, a general competition policy and adopted a 
regulatory framework, but also a new public procur ement legislation, adopted in 2005, which is 
intended to improve market transpar ency and procedures of auction. 
125. Its system of protection of intellectual propert y has been revised and enacted new laws to 
bring it into lime with WTO rules, to ensure  respect for human rights and suppress piracy and 
counterfeiting. 
126. We welcome the liberalization of downstream oil activities, at the level of detail. 
127. Mozambique has established an infrastruct ure of multi-modal transport through the 
rehabilitation of ports, roads and railways, which allows  it to integrate this infrastructure to those of 
the SADC and its landlocked neig hbours, for which the Mozambican ports are an important access 
road, we are of the opinion that this developmen t must be pursued in the sense of moving towards 
greater integration with other existing deve lopment corridors in the southern region. 
128. Mozambique is a member of the SADC and as well a member of the Community of 
Portuguese Speaking Countries which maintains a very good relations with countries part of these 
organizations.   
MAURITIUS 
129. Mauritius and Mozambique share in many ways a common history.  Mauritius has ancestral 
links with Mozambique, which is considered as one of the "pays de peuplement" of Mauritius.  Our 
common appurtenance to SADC and COMESA locks us into a shared destiny.  We are also Members 
of the ACP and are undergoing similar adjustment ch allenges in the context of the EPA arrangements 
with the EU. 
130. At the bilateral level, our relation is further strengthened by our cooperation in sectors such as 
tourism, fisheries, education, security and public or der, arts and culture, as well as air links and airport 
handling services.  A Memorandum of Understanding on cooperation in agriculture between our two 
countries was signed in July 2002, followed by a General Framework Agreem ent in May 2004, thus WT/TPR/M/209 
Page 20  
 
  paving the way for partnership in several sectors.   Agreements have also  been signed on Double 
Taxation Agreement and Investment Pr omotion and Protection.  In term s of foreign direct investment, 
Mauritius has invested nearly US$53.5 million from 2004-200 7.  We believe that this trend is set to be 
on the rise. 
131. Mozambique and Mauritius are also explorin g new ventures to better tap our collective 
resources.  In this regard, we would also like to express our appreciation to the Government of 
Mozambique for the release of land resources to a Mauritian consortium for the cultivation of staple 
food, which is particularly relevant in the context of the international food crisis.  We hope that this 
results in a win-win situation for both of our countries. 
132. As illustrated by the two reports, since its last Trade Policy Review, Mozambique has 
embarked on a path of economic reforms through, inter alia , the PARPA Action Plan, which has 
helped it sustain an average economic growth of 8. 7% from 2001-2007.  This is indeed an impressive 
performance. 
133. These steps combined with political stability have led to improvement in the country's growth 
profile.  Reforms in the taxation system, by way of fi scal consolidation, have helped to expand the tax 
base and increase revenue collection.  The government  is also pursuing prudent monetary policy aims 
at stabilising the local currency.  Inflation rate was kept at bay between 2002-2007.  Investment has 
been relatively stable over the period 2001-2008, mainly due to significant flows of FDI.  In the financial sector, the Government is determined to  modernize the system and promote the entrance of 
new institutions.  The development and promotion of  SMEs is a great boost indeed for the informal 
sector as well as for the empowerment of women.   Mauritius encourages Mozambique in its 
endeavours. 
134. Through the adoption of the "Green Revolutio n Strategy" and the Plan of Action for Food 
Production, Mozambique is developing appropriat e strategies to become more competitive in the 
international market and also to counter the effects of food crisis.  On the services front, Mozambique 
is taking measures to further liberalise this sector, wh ich is a leading one of the economy.  Here too, 
Mauritius commends Mozambique for the forw ard-looking development strategies. 
135. As the two reports reveal, despite the impressive strides in improving its trade regime and in 
promoting growth, Mozambique is yet to demonstr ate the full effectiveness of its macroeconomic 
policies in combating poverty and achieving the MDGs.  The economic potential remains largely 
untapped as a result of mainly supply side constrai nts, including through the plans to enhance the 
development of the private sector.  We should be  grateful to have further insights from the 
Mozambique delegation on these measures. 
136. Like in many countries, there are also exogenous factors, which are beyond the control of 
Mozambique and which inhibit its growth poten tial.  The recent hike in oil and food prices 
compounded with a series of natural calamities have  had some dampening effects on the economy, 
thus deteriorating the balance of trade.  As a country frequently visited by cyclones, Mauritius can 
fully understand how such exogenous factors entail ne w challenges.  Both of our countries may have 
to learn together from best practices in terms of disaster management system. 
137. Another major concern for Mozambique is  the environmental degradation through 
deforestation and desertification.  Here again, it is  gratifying that the Government has come forward 
with a National Strategy for Sustainable Devel opment, which provides for an integration of 
environmental considerations into economic policies.   We would be happy to learn more of this 
strategy.  WT/TPR/M/209 
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  138. Notwithstanding the efforts made by Mozamb ique, for which it has to be commended, 
Mozambique is yet to exploit its full economic potentia l.  Supply side constraints, infrastructural gaps 
and limited diversification remain some of the majo r impediments.  We are, however, confident that 
with the support of the international commun ity, including to the Air for Trade initiative, 
Mozambique will successfully meet its challenge s and turn into a vibrant economy.  Mauritius, 
therefore, joins other in calling for such a support. 
139. In this regard, Annex II of the Secretariat Re port on trade related technical assistance provides 
a good synopsis of the critical areas  where the effective support of the international community is 
required to assist Mozambique.  These include:  its participation in the multilateral trading system;  
implementation of the WTO agreements;  and addressing its supply-side constraints. 
140. Although all these areas deserve attention on their own, my delegation will insist on the third 
aspect, that is addressing supply-side constraints.  It is observed that one of the major hindrances 
affecting expansion of Mozambique's trade in goods and services is lack of proper transport 
infrastructure.  The Mozambican Government is in this regard deploying its efforts for the 
development of multimodal transport infrastructure to  improve the operation of the supply chain.  We 
would urge the enhanced support of  the development partners to complement those efforts by the 
Mozambican Government. 
141. Another area that deserves particular attenti on is with regard to the development of the 
agricultural sector.  With the vast amount of arable  land, Mozambique has huge agricultural potential, 
yet the contribution of the agricultural sector to th e country's GDP is relatively low.  While the 
Government of Mozambique has taken laudable initi atives, such as the "Green Revolution Strategy" 
to boost productivity in the agricultural sector, Mauritius calls for additional support from the donor 
community to bring the much desired results.  In this regard, greater consideration should also be 
given to value added activities through processing and expanding the range of high-value exports to 
developed countries' markets. 
142. Last but not least, as revealed by the Secretaria t's report, the efforts undertaken by the State in 
support of the Mozambican enterprises, in particular, the small, medium enterprises are proving to be 
particularly challenging.  Therefore, in this context, Mauritius encourages for the continued and 
effective support of the international community, main ly in terms of access to credit, to provide the 
necessary impetus to Mozambican enterprises. 
143. In conclusion, Mauritius strongly believes in a prosperous, forward-looking and peaceful 
Mozambique and as a key player within the COMESA and SADC regions. 
SENEGAL 
144. As the Report emphasizes, Mozambique has had a highly positive economic performance 
over the past ten years, even though its economy is not very diversifie d and depends mainly on 
agriculture. 
145. This positive performance can be seen in the increase in annual per capita income, which rose 
from US$362 in 2006 to US$466 in 2008.  Such a su ccess was made possible by the determined 
policies carried out by the Moza mbican Government to promote political stability and economic 
reforms, and to attract flows of foreign investment .  Moreover, Mozambique's  integration in regional 
and subregional markets and continued support fro m donors have helped to create an environment 
favourable to such an economic performance. 
146. My delegation would like to congratulate th e Mozambican Government on its achievements 
and encourage it to pursue its efforts.  It would also like to thank development partners for their WT/TPR/M/209 
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  support to this country, which is a friend of Senegal,  and urge them to continue to assist Mozambique 
in its development efforts. 
147. Like Senegal, Mozambique is an LDC, which is the most vulnerable group in our 
Organization.  This is why, taking the opportunity of this second Review of this friendly country's 
trade policy, my delegation wishes to express its full solidarity with Mozambique and wish it every 
success. 
INDIA 
148. Mozambique is indeed one of Africa's success st ories. After a cruel civil war that lasted 
nearly two decades (1975-1992).  It is a tribute to the resilient nation and its people that Mozambique turned the tide in early 1990’s,  the country or ganised multi-party general elections, took a careful 
approach to economic and financial reforms, a nd ensuring political and economic stability, steadily 
attracted foreign investments. Since then Mozambi que has made impressive strides in consolidating 
democracy, economic reforms, and significant progress in social sector indicators. Our discussant has 
also mentioned increase in school enrolment. This is  a great achievement as it has been reported that 
Mozambique expects its illiteracy rate to drop from 55 % to 43 % this year, a move which will make 
the country meet the United Nations Millennium De velopment Goal on Education by 2015. It may be 
recalled at independence in 1975; only 7% of the country’s population was literate.  
149. Averaging an over 7% growth rate in the last 7 years, which is highest for any non-oil 
exporting country in sub-Saharan region, Mozambican  economic recovery has become a role model 
for this region.  Even when the country was hit by global financial crisis in 2008, it registered a 
growth of 6.5% as against set target of 7%. 
150. Mozambique is blessed enough cultivable land, wate r, coal and natural gas resources, fishery, 
forests, minerals, etc.  Despite continuous gr owth, ironically Mozambique remains an Least 
Developed Countries (LDCs), with GDP per cap ita of US$460 in 2008. Mozambique's economic 
potential remains largely untapped, due mainly to supply-side constraints including poor access to and 
high costs of utilities. 
151. Minister mentioned this morning important role played by tourism. This is another sign of 
return of normalcy in tourism sector. The revenue  from foreign tourists visiting Mozambique rose 
from 129 million dollars in 2005 to 18 5 million in 2008. The number of fo reign visitors has more than 
doubled, rising from 711,000 in 200 4 to over 1.5 million in 2008. 
152. Mozambique’s own report has emphasised the need for improving infrastructure to promote 
trade competitiveness, market access and reduce produc tion and transactional co sts. This aspect is 
further recognised and stressed, in the Secretariat’ s Report stating that Mozambique's Aid for Trade 
needs is substantial and focus on tackling supply-si de constraints, including infrastructure bottle-
necks. My delegation takes this opportunity to fu lly support and urge Mozambique’s development and 
trade partners to favourably consider Mozambique’s  aid for trade needs for enabling the country to 
enhance its participation in global trade. The positive news on this front will significantly help 
Mozambique in achieving its objectives of promoting growth and poverty reduction. 
153. We have noted that Mozambique is yet to m eet its notification obligations.  Its multilateral 
commitments on goods and services do not reflect its actual regimes. Therefor e, continued reforms 
through extension of their scope as well as efforts to meet notification requirements, would help to 
enhance the transparency and predictability of  Mozambique's trade regime. We hope that 
Mozambique will take follow-up action in this regard.   WT/TPR/M/209 
 Page 23 
 
 
  154. India and Mozambique are joined by the Indian  Ocean and enjoy close, friendly relations built 
upon traditional links dating back to pre-colonial period.   Traders and merchants from the Indian sub-
continent landed on the Mozambican  shores centuries back, even befo re Vasco da Gama set his sails 
for Africa and India. In 1975, India was among th e first countries to recognize and open its Embassy 
in Maputo. The Indian Community in Mozambique  is around 21,000 and hail from Gujarat, Goa, 
Daman and Diu; majority of them are engaged in trading. 
155. India and Mozambique have established institu tional mechanisms to explore and enhance 
bilateral cooperation in several fields. Agreem ent on establishment of Inter-Governmental Joint 
Commission was signed in Maputo in 1999.  The second meeting of the Joint Commission was held in February 2009 in New Delhi. 
156. A Trade Agreement signed between the two count ries in 1982 was overtaken by the latest 
global developments and the need to negotiate a new trade agreement has been mutually recognized. 
In February this year, India handed over the revised  draft Trade Agreement to the Mozambican side 
for their consideration. We hope to receive Mo zambique’s comments on the draft to finalize the 
Agreement. An Agreement on Bilateral Promotion a nd Reciprocal Protection of Investment (BIPA) 
was signed during in February, 2009. A Doubl e Taxation Avoidance Agreement (DTAA) was 
finalized and initialled earlier this year. Several MO Us have been signed between the two countries in 
the areas including cooperation in Agriculture, Scie nce & Technology and Coal.  An agreement on 
cooperation in Health sector was signed in New De lhi during the visit of the Mozambican Health 
Minister in February 2004. First meeting of Join t Working Group on Cooperation in Health was held 
in November 2006 in Maputo. 
157. India – Mozambique trade has been steadily increasing. India is among top 10 trading 
partners of Mozambique. India’s exports to Moza mbique in 2007 were US$ 136 million compared to 
US$ 54 million in 2002.  The main items of India’s exports to Mozambique are: Medicines Bulk, rice, 
Bicycles and motor cycles, Special vehicles, Primary and semi-finished iron and metal. Mozambique’s export to India in 2007 were US$17 million compared to US$14 million in 2002.  The 
main items of Mozambique’s exports to India are:  Aluminium ingots, Raw and waste cotton, Timber 
logs, Oil Seeds, raw cashew nuts. 
158. We are pleased to inform that Mozambique has signed the letter of intent to join the Duty 
Free Tariff Preference Scheme of India and necessar y customs notification has also been issued by 
India, thus making the Scheme operational for Mozambique. 
159. We are optimistic on long term future of Mo zambican economy and consider that there are 
opportunities for investment by Indian companies in  development of the country’s transportation, 
telecommunications, energy sector, coal and mining sectors, mineral resources, agro-industries, SMEs in food processing, coconut and cashew processing. 
160. Recently Tata Steel has entered into a joint ve nture with Australian company Riversdale with 
42% stake in coal licenses covering 25000 hectar es concession in Moatize Basin in Tete province. 
Coal India has been awarded two coal blocks in Mo atize, Tete Province in an open bid floated by the 
Mozambican Government. Coal India is likely to start exploration within six months. Recently two 
Indian companies Bharat Petroleum and Videocon Industries have entered Mozambique’s oil sector 
by acquiring a stake in energy exploration in Rovuma Basin in Cabo Delgado. 
161. Mozambique has adopted a National Policy and Strategy for Biofuels. The new initiative, 
launched last month, establishes guidelines for both th e public and private sector to better participate 
in the biofuels industry. Rusni Bio-fuels India and Petromoc have agreed to set up a US$30 million 
project to produce Ethanol from sweet sorghum.  WT/TPR/M/209 
Page 24  
 
  162. India is also actively engaged in infrastruct ure development in Mozambique. Renovation of 
Mozambique's $200 million Sena railw ay line, partly funded by the World Bank, is on track due to 
open to general traffic in January 2010. Beira Ra il Company (CCFB) consortium, consisting of state 
railway company CFM, which holds a 49 percent shar eholding, and Indian firm Rites and Ircon, with 
51 percent are executing and part funding this projec t. The Dondo-Marromeu branch of the Sena Line 
has been completed and inaugurated for traffic in N ovember 2008. Work on Sena Line is likely to be 
completed by September 2009. The Sena  line will be crucial to get the co al to the international market 
and develop Mozambique's economy. It is also th e lifeline of the region and will have tremendous 
impact on agricultural production from the Zambez i valley and restoration of the households and 
population affected during the years of civil war in Mozambique. 
163. India has been extending Lines of Credit to Mozambique since its independence. Under the 
HIPC initiative, India has written off Rs. 180 millions  of dues owed by Moza mbique.  Recently, India 
has provided five Lines of Credit (LOC) totali ng US$115 million.  The financing from these LOCs 
are allotted for rural electrification in Zambezia province, Gaza Province, water management, coir project, water supply projects in Nampula and Za mbezia provinces, Information Technology Park, 
rural electrification projects in the provinces of Gaza, Inhambane, Zambezia and Nampula.  
164. India has also been assisting Mozambique in specific projects and in disaster management. 
165. A rice project has alr eady been executed by Indian rice e xperts under the tripartite agreement 
between India, Mozambique and FAO. India provi ded assistance to Mozambique in setting up of a 
Cashew Processing Plant. It is learnt that th e plant has reached Mozambique and is awaiting 
installation, due to non-availability of infrastruct ure facilities for its erection. We hope Mozambique 
will take urgent steps for enabling this project to commence work as soon as possible which provide 
employment, value addition and revenues.   
166. India is also involved in Mozambique’s human resource development. Since 2008-09, 
training slots for Mozambican nationals has been increased from 20 to 30. In addition, 15 General 
Cultural Scholarship Scheme annually are granted to the Mozambican students. 
167. We have noted Mozambique’s broad technical  assistance needs in the area of technical 
regulations, sanitary and phytosanitary requirement s, implementation and de velopment of domestic 
legal framework. We would be happy to get specific details for Mozambique’s needs to formulate our 
response.  
168. My delegation has not posed any question to Mo zambique. We would just like to raise one 
issue that is to urge Mozambique to reduce dela ys in importation of medicines by streamlining its 
registration process.  
DEMOCRATIC REPUBLIC OF CONGO 
 
169. The Government of Mozambique has seen its ec onomic environment transformed despite its 
dependence on agriculture, which may become its o il in the future, if courageous reforms are 
undertaken. 
170. Mozambique faces a formidable challenge, na mely, that of combating corruption in the 
government sector and in international trade practic es so as to create an environment favourable to 
importers and exporters. 
171. The poverty reduction action plan adopted in  2001 should receive the support of the 
international community and donors, despite th e international crisis in the world today.  WT/TPR/M/209 
 Page 25 
 
 
  172. In order to diversify its agriculture and mi ning sector, Mozambique needs the support of 
donors and, above all, of international organizations , so that it can achieve its trade policy objective, 
the engine of development, 
173. Mozambique is a member of the Southern African Development Community, an economic 
and political cooperation organization composed of 15 member States all fr om the southern and 
central African region.  Its trade could be develope d if the reduction in intraregional tariff barriers set 
in motion in 2000 is speeded up. 
174. Mozambique needs technical assistance to impr ove its infrastructure in order to encourage 
trade competition and market access both at the regional level and for exports.  Aid for Trade is needed to allow it to foster growth, alle viate poverty and, above all, overcome the 
infrastructure-related obstacles.  This would allo w it to implement national strategies to combat 
poverty and to achieve its regional integration. 
NIGERIA 
175. As indicated in the Secretariat Report, since the last review in 2001, Mozambique has pursued 
reforms that have contributed to high economic growth of 8.7% on average per year during 2001-
2007, driven mainly by megaprojects financed by  foreign direct investment and public spending 
largely financed by foreign aid.  It also indi cates that Mozambique remains committed to pursuing 
prudent fiscal and monetary policies and has also made efforts to reduce its public deficit through 
improved expenditure management and tax administ ration and collection.  We believe that these 
measures if sustained would ensure increased employment opportunities for the people of 
Mozambique. 
176. The report further indicates that Mozambique's  economic potential remains largely untapped, 
due mainly to supply-side constraints including poor access to and high costs of utilities, e.g. water, 
electricity, transport, telecommunication, and financia l services.  To that end, my delegation would be 
interested to know the measures taken by the Government of Mozambique to address these 
constraints. 
177. The Report further indicates that the Governme nt of Mozambique's Action Plan for the 
Reduction of Absolute Poverty (PARPA II), adopted in 2006, is aimed at reducing the incidence of 
poverty from 54% in 2003 to 45% in 2009.  My de legation would be interested to hear from the 
delegation of Mozambique, whether there is a me chanism of review in the plan to ensure 
sustainability of the programme and also to addr ess difficulties experienced in the course of the 
execution of the Action Plan. 
178. Since its last review, Mozambique has revised its regime on intellectual property protection 
and enacted new laws to bring it into conformity w ith WTO rules.  Procedures to obtain intellectual 
property rights have been streamlin ed.  Procedures to obtain intellectual property rights have been 
streamlined.  Efforts to ensure r espect for intellectual property rights,  and in particular to combat 
piracy and counterfeiting, are continuing.  In 2006, Mozambique introduced fines for the first time to 
deter infringement of industrial property rights (i ncluding through counterfeiting).  Concerned with 
piracy and counterfeiting of Nigerian films, we w ould like to know whether similar measures are in 
place in the area of copyright. 
179. The prevalence of HIV/AIDS among the populatio n aged 15-49 was estimated at 16.2% in 
2004 and HIV/AIDS was declared a national emerge ncy in the year.  My delegation would like to 
know the measures taken by the Government of Mozambique to address the problem. WT/TPR/M/209 
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  180. Nigeria is happy to note that Mozambique, as an  important Member of the WTO, has played 
an active role in the Doha Development Agenda (D DA) negotiations.  My delegation looks forward to 
further collaboration with the delegatio n of Mozambique in the negotiations. 
ZIMBABWE 
181. Zimbabwe attaches great importa nce to the strong political and economic relations with 
Mozambique which have been progressively expandi ng over the years.  Mozambique is an important 
gateway providing the most economic route to the east for landlocked Zimbabwe's exports and 
imports.  Together with Zimbabwe, Mozambique is  a member of the Southern African Development 
Community (SADC) where we share common interests.  We therefore note with appreciation, Mozambique's achievements in attaining a high growth rate averaging 8.7% over the period 2001-
2007 due to a combination of factors, among them  economic reforms, gradual integration into 
regional markets, political stability and continued international donor support.  Despite its low 
economic diversity, Mozambique has achieved remark able progress as evidenced by the high growth 
rate and a 102% rise in per capita income from $230.80 in 2001 to 466.70 in 2008. 
182. The trade policy objectives pursued by Mozambi que have enabled the country to integrate 
into the international trading system.  Nearer home, the trade policy objectives have enabled the 
signing of the Zimbabwe-Mozambique preferential tr ade agreement in 2004 aimed at improving trade 
relations between our two countries. 
183. We note that Mozambique has a substantial need  for aid for trade targeted at addressing the 
supply-side constraints, including infrastructur e bottlenecks.  We hope the necessary technical 
assistance continues to be availed to Mozambique to help the country meet these needs, as well as 
other challenges in trade negotiation capacity  and implementation of WTO obligations. 
TANZANIA 
184. Tanzania is specially happy to participate in  the second trade policy review of Mozambique 
because of our bilateral economic and trad e partnership and cooperation since 1975 when 
Mozambique gained its political independence.  The participation of Mozambique in Tanzania in the 
Southern African Development Community (SADC) is particularly significant for the promotion of 
economic development, trade, peace and security in the region, which is also intended to strengthen 
the participation of the Member countries in the multilateral trading system.   
185. We thank the WTO Secretariat for its Report wh ich provides a detailed review of strides and 
challenges in Mozambique's economic and trade development efforts.  We commend Mozambique's 
tremendous successes in its outward looking trade poli cies and transparency as portrayed in the report. 
186. Furthermore, we would like to note with appreci ation that Mozambique continues to maintain 
a trend of construction and the maintenance of  policies for trade and development along with 
commitments to the novel objectives of the WTO along with its active participation in the negotiations in various areas such as agriculture, NAMA, trade in services, trade facilitation, TRIPS 
and in the public health.  Tanzania would like to  specially applaud Mozambique for being a strong 
advocate and a supporter of the shared inter est that a successful outcome of the DDA should 
encompass the desired development content that w ould facilitate economic growth and a minimum for 
integration into the global economy of de veloping countries, particularly LDCs. 
187. Tanzania has greatly enjoyed expanded and the growing bilateral development initiatives 
covering both productive in the social sector incl uding trade and infrastructure.  We are committed 
that this trend would be maintained and more so lidified.  We wish to encourage Mozambique to 
continue and intensify its developmen t and efforts in the spirit of "a luta continua" towards its further  WT/TPR/M/209 
 Page 27 
 
 
  success and a transformation in several sectors incl uding agriculture, industry, services, fisheries, 
tourism and administration. 
188. Finally, like Tanzania and other LDCs Mozambi que is just a poor country despite of the 
enormous potential.  We therefore, wish to thank the Members for the support to Mozambique.  
However, given the vast potentia l that remains untapped and the challenges that still faces we would 
like to make an appeal for increase the support to en able higher actualization of its vast potential for 
development in the poverty alleviation. 
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
 
189. It is encouraging to see that since its first Review in 2001, Mozambique’s economic reforms 
has contributed to high economic growth of 8.7% on average per year during 2001-07.  And the Government has adopted an Action Plan aiming to  reduce the incidence of poverty from 54% of the 
population in 2003 to 45% in 2009.  
190. It seems clear to us that the medium-term outlook for Mozambique’s  economy is positive. 
Real GDP growth of 7% is expected for 2009 and 2010.  Exports are expected to continue to increase 
by 15% over 2007-11. Imports are forecast to rise by 28%, widening the trade deficit. 
191. We are happy to learn that Mozambique deve loped a competition policy in 2007, and the 
regulatory framework for its implem entation is under consideration by  the Assembly. We believe the 
early adoption of its competition policy will ensure the efficient functioning of the market and work 
better for efficient distribution of its resources.  
192. We also recognize that in the area of SPS,  customs reform and capacity-building, 
Mozambique continues to require technical assistance to help establish the relevant institutions and to 
improve compliance with WTO rules and systems. Thus Aid for Trade initiative is important to 
encourage WTO members to offer their assistance and support. 
193. Given that Mozambique has not made specifi c commitments under the GATS, I would just 
like to take this opportunity to mention that  service plays an “enabling role” in economic 
development. Liberation in service will facilitate the development of  other industrial and agriculture 
sectors. In this regard, we are looking forward to Mozambique to continue its efforts to further 
improve its market access, in particular Mode 4 for professionals.  As mentioned by Mr. Brauns and 
previous speakers, Mozambique needs also to impr ove its infrastructure by encouraging more foreign 
companies to participate its infrastructure developmen t, so as to encourage foreign investment, and to 
foster economic development. WT/TPR/M/209 
Page 28  
 
  V. REPLIES BY THE REPRESENTATIVE OF MOZAMBIQUE AND ADDITIONAL 
COMMENTS 
194. Because we have submitted written responses to your questions, I will here dwell on the 
fundamentals of our Trade Policy. 
195. As we said, our country emerged from a severe war which destroyed almost all the basic 
infrastructure, displaced millions of Mozambican s and put the economy to the grassroots. At the 
aftermath of the war the government had to develop in to two directions of governance: maintain peace 
and stability and promote economic developm ent through strong private participation. 
196. A variety of measures were put in place to promote and maintain peace and stability which 
we are enjoying as of today. Concerning economic development trade was identified to be a key 
player. Through trade, imports at a good price incr ease the purchasing power of our people. Through 
trade, exports of value added products to competitive markets, bring wealth to the country. For this to 
happens, Government worked in two pillar s: business environment and infrastructure. 
Business Environment 
197. A commission, comprised of ministers, led by the Prime Minister was established to look 
after reforms in the public sector aimed at creati ng transparent and efficient public sector. Measures 
aimed at reducing the paper work were introduced. The ICT Strategy and Policy was approved and is 
being implemented. A Ministry for the Public Sector was created. 
198. As far as to measures concerned with the private sector let me indicate some:  establishment 
of a more simplified licensing mechanism for small and medium enterprises. In Mozambique, a small company can be opened at the hour;  elimination of  minimum capital and bank deposit requirements 
to open a business;  extension of the financial services to the rural areas;  reinforcement of the judicial 
system through the recruitment of new judges and pr osecutors;  extension of the judicial network 
through the establishment of commercial courts;  est ablishment of mediation and arbitration center for 
commercial conflicts with an altern ative and expedite conflicts reso lution process;  establishment of 
the Investment Promotion Center geared towards attracting investment;  establishment of one stop 
shops throughout the provincial capitals;  electronic publication of the incorporation of companies;  
and consistent public-private dial ogue involving the Prime Minister and the President of the Republic 
annually. 
Infrastructure 
199. One cannot have a good business environment if the basic infrastructure is not there. In this 
regard, with the valuable support of the partners  our Government is putting in place the necessary 
infrastructure to support trade, of which I will name some: 
Roads 
200. Extensive work was done throughout the country. Of the 29,324 km of our road network, in 
2001 only 63% were transitable. Today more than 90%  of the road network is in good conditions all 
the year. 
Bridges 
201. A bridge connecting Mozambique to Tanzan ia through the Rovuma river is being built. 
People and goods will move freely between the two sister countries. Rovuma is the name of the  WT/TPR/M/209 
 Page 29 
 
 
  bridge. By September this year, the north and the so uth will be connected through the Caia bridge an 
infrastructure of overwhelming importance to the country and the region. 
Electricity 
202. The Cahora Bassa Hydropower Dam has finally reversed to Mozambique. Plans to build 
Cahora Bassa North, and Mpanda Nkua Hydropower Dam are being implemented. These projects will 
put Mozambique in a position of seller of electricity to the region. Our Government cares also with its 
national entrepreneurs. That is why the rural electrification is a reality. From the 128 districts, 86 are already electrified. 
Water 
203. In 2001 the water coverage was of 27% for ur ban areas and 34% for rural. In 2008 it moved 
to 50% for urban and 52% for rural. 
Telecoms 
204. According to ITU the use of ICTs in trade brings  wealth to their participants. In fact a peasant 
in Milange, Nhamatanda, Zumbo or Alto Molocue, just to mention four examples, using a cell phone 
trades its maize at a good price. This is so, be cause, our government through courageous policies 
opened the telecoms sector, allowing private particip ation. Two mobile operators are in place, and the 
fixed monopoly was broken. As a result the telede nsity has risen from 0.5% in 2001 to 21% today. 
Tourism 
205. Visas can be obtained at the airport. Apart from that, visas were abolished with all the 
neighboring countries. Anchor projects, hotels, resorts, game reserves, are being implemented. Basically the government defined the standards to be  achieved in each locati on and the private sector 
is invited to invest. A program for the 2010 Football Cup is in place. 
Doing Business Report 
206. Some of you asked, on Wednesday, why the ranking of Mozambique had declined in the 
World Bank Doing Business Report, this year. The answer is simple. First, the report did not take into account reforms which we did, but in practice they were only in force after September last year. For 
example the Labor Law Reform and the simplified licensing process were not incorporated. Second, 
the report is done through inquiries. Because our dissemination process is still weak the majority of those who answered are not aware of the reforms.  Hence the incorrect answers which penalized us. 
Anyway, in 2007, Mozambique was awarded by the IFC a prize as one of the best reformers in Africa. 
MEGAPROJECTS VERSUS DIVERSIFICATION OF EXPORTS 
207. Some speakers expressed also the view that Mo zambique should diversify its export base, not 
relying only on mega-projects.  We do share the sa me view. That is why we approved a Strategy for 
the Promotion of Small and Medium Enterprises, we created the Institute for the Promotion of Small 
and Medium Enterprises. New Investment Code was approved. For instance, for someone investing in 
textile/garment sector, enjoys a zero corporate tax for 10 years, 25% for the following 5 years and 50% for the following 5 years. Our Export Promoti on Institute is working on the non- traditional 
products, identifying the constraints to supply and mark et access. This exercise , combined with other 
measures, will put on stage other sectors of our economy and diversify the export base. WT/TPR/M/209 
Page 30  
 
  208. Concerning megaprojects the government will carry  on its role of attracting more. Why not? 
They will enable us to trigger our vast resource s. Today one of the biggest mining company in the 
world, Companhia do Vale do Rio Doce is in Mozambique to explore coal mines. Apart from the exploration Thermal Power Generati on through coal will be establishe d to serve the country and the 
region. Shouldn’t we accept this project? By the way, it is a mega-project! What we consider 
important is the need of adding value to our pr oducts to avoid exporting them as raw commodities. 
209. For our point of view, the megaprojects bring the small and medium enterprises into the stage. 
The Mozal example is paradigmatic . Thousands of jobs were create d in the construction companies, 
but also a different range of companies emerged working for Mozal.  Furthermore, a new village 
around the project was built, creating a variety of job opportunities to our citizens.  
AGRICULTURE  
210. As pointed by some of you, agriculture has an important role to trigger our economy, 
especially if commercial farming is introduced . We already have projects being implemented 
following this model. The Chiquita one in Nampul a for banana production, the corn baby production 
in Vanduzi, aimed at UK market are some exampl es. But, more important than this, is the 
participation of our people in th e Green Revolution. We want to increase the levels of productivity 
through mechanization, use of improved seeds and other new technologies. A capacity of 18.000 tons 
of silos for storage of grains is being installed th is year. This process will enhance more gains to our 
peasants, for they will receive good prices. 
211. We do not see the privatization of land as a pres sing issue for the development of agriculture 
because entrepreneurs can lease land for about 50 year s renewable, and to date none of the investors 
did complain. 
DESERTIFICATION 
212. As far as to desertification and climatic chang es let me tell you the following: every child in 
Mozambique is encouraged to plant one tree a nnually. Each tree holds the name of a child. A 
community leader has to plant a forest. Five million trees were planted to date. 
DOHA DEVELOPMENT ROUND 
213. We share the position of the LDCs group. In fact  it is urgent the conclusion of the Round for 
the benefit of our countries. Much has been  said. Let us move from words to deeds. 
SADC CUSTOMS UNION NEGOTIATIONS 
214. We are clear that the SADC negotiations toward s the creation of a Customs Union have to be 
conducted under the WTO framework, as well the negotiations of the Economic Partnership 
Agreement with EU. Mozambique is very active in these processes because it believes that their 
conclusions will benefits its citizens. 
AID FOR TRADE  
215. We would like that Aid for Trade contributes to improve the production capacity for the 
developing countries to guarantee their participation in  the world market. That is why we insist on the 
additionality and not the swapping of funds from one source to other.  
  WT/TPR/M/209 
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  FINANCIAL CRISIS 
216. Mozal, emblematic project in the sense it signaled the country as a good investment   spot has 
already cut 80 jobs due to the financial crisis, not because of electricity shortage. Another company 
producing iron has shut its doors. Pescamar, the bi ggest fishing company is facing difficulties to 
export to Europe. This means that the financial cr isis has begun to hit severely our economy. To face 
this challenge the Government has established a group of minist ers of economic portfolio which 
overlooks the development of our economy and pr oposes measures for each situation. For export 
companies we are looking for new markets. 
217. But our effort will be not enough to face this ch allenge. The participation of our partners and 
the collaboration of International Organizations as WTO are crucial. 
218. By now, rest the assurance that we will work to maintain the same levels of growth. We will 
work with you, shoulder by shoulder, to follow your advice and fulfill our obligations, under the 
WTO. We will work to improve, day by day, the business environment and hence facilitate trade. We 
will do this, because we have the firm belief that our children deserve a better world, a world where 
the sun is for everybody. 
219. In fact as some of you said very kindly, a Luta Continua and Juntos Venceremos a Pobreza, 
what means the struggle continues and together we will defeat poverty.  
DISCUSSANT 
220. Let me make a couple of remarks on my assessm ent of our discussion.  I agree with the 
Minister that we have had a very positive and very constructive and friendly discussion in 
Wednesday's and today's meeting.  I was impressed by the amount of praise and support that your 
delegation has received from everybody who has participated  in this exercise.  Let me say that I find it 
fully justified that you have been praised and th at you have been supported, taking into account the 
difficult situation that your country was in after the civil war and still is in to some extent. 
221. The praise and the support is justified also taking into account the remarkable results that your 
efforts in terms of growth and GDP-development have  shown, as well as in macroeconomic reforms.  
I think that you deserve this praise as you deserve it fo r all the reforms that you have engaged in.  You 
have done a lot and you have give n us an extensive list of exam ples to improve the investments 
regime, to take the necessary trade measures, to add fl exibility to the labour markets, to attract FDI, to 
appropriately protect IP, simplify licensing and government procurement and competition policies. 
222. Let me add a third point to this list, which h as been highlighted I think by the delegation of 
China on Wednesday, and this is the existence of a sustainable development strategy.  I would pay 
tribute to this.  It is actually a very important element for any development strategy and I think that 
every country can only start as early as possible to integrate environmental concerns into its policies, 
and I would like to congratulate and to commend you for this. 
223. At the same time, we have also seen that ther e remain a couple of challenges ahead for you.  
It has been highlighted by delegations and by mysel f, that more efforts are necessary if Mozambique 
wants to fully exploit its potential a nd to continue on its growth path. 
224. Let me just mention three.  The first one is s upply side constraints, that have been mentioned 
by others too, related to infrastructure, financial services, human resources, and water and electricity.  
The second challenge has been the issue of business  climate including the reduction of red tape and 
the improvement of conditions of doing business.  I thi nk and I maintain that this is a pre-requisite for  
diversifying the economic activities, which is nece ssary as the Government has recognized and also WT/TPR/M/209 
Page 32  
 
  for achieving your own objectives in terms of cr eating new business activity in agro-industries and 
food processing.  All this will not work  without a better business climate. 
225. And the third point which I would like to men tion in this respect was the question of WTO 
notifications.  This is also something that the Government should and certainly can work on in the 
future. 
226. Another point that I have taken from the discussion is the need for Mozambique for the 
continued assistance from other Members, for ex ample, in terms of market access, where 
Mozambique could benefit from improved market access in other countries, for example duty-free, 
quota-free not only from developed countries, but al so from developing countries in a position to do 
so.  This could be very beneficial for Mozambique .  Moreover, a simplification of rules of origin  
could certainly benefit you.  Continued assistance is also necessary in terms of Aid for Trade and this 
is a very important point as we think of supply side constraints, infrastructure, but also when it comes to Mozambique's capacity to respect and implemen t standards in trade (Sanitary and Phytosanitary 
standards and technical regulations).  I think that th ere is a responsibility also on the part of the WTO 
Members to assist Mozambique by granting it assistance in this field. 
227. To conclude, from the Government's answers I see that you are aware not just of the praise 
that you have gotten and of all the support but also of the challenges ahead; I find this very encouraging and this fills me with optimism.  I see th at this policy review is achieving its objective,  it 
is giving you feedback from other countries on wh at you have achieved, on what has been good and 
also shows where there is space for improvement. I wish Mozambique all the best for its future 
development. 
UNITED STATES 
 
228. I would like to raise a few more questions, all of which relate to PSI regime.  We noted in the 
answer given on customs procedures that certain goods  are subject to mandatory PSI.  First introduced 
in 1998 its provide exclusively by Intertek under a contract that expires in 2009.  Since 2003 the PSI 
applies to a positive list of products that the Gove rnment is reducing progressively.  Does the PSI 
prevent goods coming from countries other than thos e in which Intertek does not have a commercial 
presence?  If the goods are in the positive list a nd Intertek is not present in your country are you 
prevented from shipping goods to Mozambique? 
229. The second questions relates to whether or not Mozambique intends to renew its contract 
which expires in 2009 with Intertek. 
230. We note that one of the components of the contract is to build national capacity inside 
Mozambique customs service so that the inspections  can be performed by the customs service.  Could 
Mozambique please elaborate on the types of capacity bui lding that it is being given?  Is Intertek the 
only provider of the capacity building assistance?  An d, when can we expect Mozambique to inspect 
goods locally without having to use Intertek?  Will th is occur locally by the time that the contract 
expires in 2009? 
231. The Intertek webside identified in the Secret ariat Report states that customs valuation and 
price verification undertaken by Intertek seeks to  determine whether the price being charged as 
declared in the pro-forma invoice corresponds within  reasonable limits with export prices generally 
prevailing in the country of supply.  We ask how this process compli es with Mozambique's 
obligations under the Va luation Agreement.   
232. We note that Article 7 of the Valuation Agreemen t prohibits the use of the price of goods on a 
domestic market of the country of exportation and the price of goods for export to a country other  WT/TPR/M/209 
 Page 33 
 
 
  than the country of importation.  We request furt her explanation on Intertek's use of prices in the 
country of supply and how the practice is c onsistent with the Valuation Agreement. 
EUROPEAN COMMUNITIES 
 
233. The EC have a couple of additional questions not ably on the requirements for establishing an 
industrial free zone.  Second, concerning strategi es for increasing agricultural production, and thirdly 
policies to reduce the barriers to imports of key i nputs.  We will submit these questions in writing.  
234. We would like to underline again the support of  the EC to Mozambique in achieving its 
development and economic objectives, as WTO provid es the essential framework in this regard and 
with the EPA between us complementing it and building on it. 
CANADA 
235. Canada as well has some technical questions that  we would like to pose to the delegation.  
Following on the foot steps of the EC we have provi ded them in writing to the Secretariat and we look 
forward to receiving responses in the near future to  these questions that relate to trade policies and 
practices in the mining sector. 
MOZAMBIQUE 
236. We are committed to take your advice because we  do believe that trade is a tool to eradicate 
poverty.  Before the war we had a GDP per capita  of US$80, we moved to US$200 and now we are 
around US$460.00.  It may seem a great achievement but in fact we do have in Mozambique people who are suffering.  So we have to change things, and trade is indeed a tool for that because if we 
facilitate trade it means that we can receive goods at  a good price, but also if we can export to good 
markets our people would get more.   
237. In terms of the questions that were raised t oday, in the same vein as we did on Wednesday, 
we would like to give written responses because we wa nt to be quite frank on th is, and to give all the 
details.  
MAURITIUS 
238. I think that this exercise indeed provided some  good transparency in terms of the trade policy 
regime of Mozambique, and also some very good and valuable recommendations have been made.  I 
think that all these recommendations, if put into pr actice, will really guide and provide some good 
results to Mozambique in its future endeavors to improve its economy.   
239. I would like to emphazise that my delegation is very interested to know a bit about the 
strategy that has been adopted by Mozambique in  integrating the environmental concerns into its 
economic policies.  Because we learnt that there is a national strategy for sustainable development 
that has been devised to take into account the environmental concerns such like deforestation, 
desertification, and others aspects of these environmental issues.   
 WT/TPR/M/209 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
240. This second Trade Policy Review of Mozambi que has provided us with a much better 
understanding of its trade and trade-related polici es and of the challenges it faces.  Our dialogue has 
been thorough and comprehensive, stimulated by  the full and open engagement of his Excellency 
António Fernando, Minister of Industry and Trad e, and his delegation, as well as the insightful 
comments made by the discussant, and the per tinent interventions by many Members.   
241. Members congratulated Mozambique on its pos itive economic performance since its last 
Review in 2001, which has been supported by its re forms.  Nevertheless, Members noted that despite 
its continuous economic growth and potential, Mozambique remained among the poorest least-
developed countries (LDCs), due mainly to supply- side constraints including poor access and high 
costs of utilities.  In this regard, Members highli ghted the measures taken by Mozambique to simplify 
its investment regime, but noted that the existing administrative hurdles still inhibit the business environment and competitiveness.  The same Memb ers urged Mozambique to continue its reform 
process with a view to enhancing the development of the private sector and improving the functioning of the public sector. 
242. While noting that Mozambique had made some progress on the implementation of its WTO 
commitments, some delegations raised concerns a bout the absence of notifications in several areas. 
243. Members commended Mozambique for its efforts to improve its customs procedures and for 
the unilateral reduction of its tariff.  They were c oncerned about the low level of bindings, especially 
in regard to non-agricultural goods and the gap between bound and applied MFN tariff rates, both of 
which impart a degree of unpredictability to the tariff.  Members urged Mozambique to make 
improvements in this area, and to ensure that its re gional trade agreements were complementary to the 
multilateral trading system. 
244. Some Members acknowledged the common problem s faced by LDCs, such as institutional 
capacity constraints which do not always allow them to exploit trade opportunities.  They noted that although trade had become more important in Mozam bique, it remained concentrated both in terms of 
its composition and direction, with a high percen tage of exports under preferential agreements.  
Members enquired about the prospects of trade di versification by Mozambique, and underlined the 
importance of Aid for Trade and other technical co operation initiatives.  Some Members reiterated 
their commitment to continuing to provide trade-re lated assistance to Mozambique.  Other issues of 
interest to Members include PSI, SPS, custom s valuation, and sustainable development. 
245. Members appreciated the comprehensive responses by the delegation of Mozambique, and 
looked forward to receiving  written replies to any unanswered questions within one month. 
246. In conclusion, Members congratulated Mozamb ique on the positive economic results it had 
achieved during the last years.  They encourag ed Mozambique to pursue the planned reforms, 
including of its trade regime, and to improve its  multilateral commitments and meet its notification 
obligations, with a view to enhancing the transparen cy and predictability of its regime, and adherence 
to WTO principles.  Members could help by keep ing their markets open for products and services of 
interest to Mozambique. 
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