RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/183 
7 May 2007  
 
(07-1797) 
Trade Policy Review Body Original: French 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
THE CENTRAL AFRICAN REPUBLIC 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by th e Central African Republic is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
 session of the meeting of the Trade Policy Re view Body on the Central African Republic. The Central African Republic WT/TPR/G/183 
 Page 3 
 
 
CONTENTS 
 
  Page 
INTRODUCTION 5 
I. ECONOMIC ENVIRONMENT 6 
(1) E CONOMIC SITUATION  6 
(2) D EVELOPMENT OF THE PRODUCTIVE SECTORS  7 
(3) B USINESS ENVIRONMENT  7 
II. ECONOMIC REFORM 7 
(1) M ACROECONOMIC REFORM  8 
(2) S ECTORAL REFORM  9 
III. INTERNATIONAL RELATIONS 13 
(1) T HE WTO  AGREEMENTS  13 
(2) R EGIONAL AGREEMENTS  14 
(3) B ILATERAL AGREEMENTS  15 
(4) T ECHNICAL ASSISTANCE NEEDS  15 
 
CONCLUSION 17 
 The Central African Republic WT/TPR/G/183 
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I. INTRODUCTION 
1. Located in the heart of Africa, the Centra l African Republic covers an area of 623,000 km2, 
and has a population of approximately 4.2 m illion, in other words 6.7 inhabitants per km2.  It is 
bounded by Chad in the north, by the Congo and th e Democratic Republic of the Congo in the south, 
by Sudan in the east and by Cameroon in the west.  As a land-locked country with an economy 
essentially based on agriculture, the Central African Republic is still classified among the least developed countries in spite of its enorm ous – albeit under-exploited – potential: 
1. Rich and varied flora and fauna; 
 
2. dense forest cover with a variety of sp ecies, containing different ecosystems;  vast 
virgin areas;  safaris, etc; 
 3. dense and varied mining potential (diamonds , gold, iron, uranium, limestone, copper, 
oil, etc.). 
2. Numerous constraints are still preventing these sectors from being exploited.  In order to 
overcome these constraints, the Central African Re public has launched a number  of reforms aimed at 
creating an environment conducive to the developm ent of economic activity.  The military and 
political crises of the past two decades have put a st rain on the country's industrial and trade fabric, 
undermining all of the efforts undertaken by successive governments. 
3. The Constitution of 27 December 2004, the 7th si nce the country's independence, provides for 
a political regime with a President of the Republic as head of State, elect ed by direct universal 
suffrage in two rounds for a five-y ear term, renewable once;  a Prime Minister as head of government 
appointed by the President of the Republic;  a parlia ment (national assembly);  a constitutional court;  
an economic and social council;  a higher council for communication;  and a national mediation 
council. 
4. The administrative system is decentralized and the country is divided into regions, 
prefectures, sub-prefectures, municipalities and villages.  Only the regions and the municipalities 
constitute decentralized communities. 
5. Since the beginning of 1986, the Central African Republic has been firmly committed to a 
programme of economic liberalization based on with drawal of the State from the production sector 
and promotion of the private sector. 
6. The objective of these reforms is to create a fa vourable environment for the development of 
economic activity in the Central African Republic.  From 1994 to 1998, with the exception of 1996, the growth rate stood at 5 per cent.  However, in the wake of the military and political crisis of the 
past few years and faced with a number of major co nstraints coupled with the limited capacity of the 
public and private sectors, the pace slowed down and the country entered a period of economic and 
financial difficulty.   
7. Real GDP growth for the period 1994-2006 amounted to only 1.9 per cent, which implies a 
real deterioration in per capita income, with on estim ated population growth rate of 2.5 per cent.  Life 
expectancy has fallen from 50 years in the 1990s to 41.8 in 2006. 
8. In the face of this situation, the constitu tionally based Government of 5 December 2005 
developed and implemented a general policy programme whose main objectives include 
macroeconomic and financial stabilization, structural  reform, and rebuilding of basic infrastructure.  WT/TPR/G/183 Trade Policy Review 
Page 6 
 
 
At the same time, the Government aims in the sh ort term to obtain access to the Enhanced Heavily 
Indebted Poor Countries Initiative. 
9. In the tax area, given the cash flow problems, a heavy fiscal burden seems to be the rule.  
However, in connection with the ongoing prepar ation of the Poverty Reduction Strategy Paper 
(PRSP), the Government intends to reorient its different trade policy instruments on the basis of the 
WTO Trade Policy Review and the Integrated Framework Diagnostic Trade Integration Study 
(DTIS). 
10. The Ministry of Commerce, Industry, and Small and Medium Enterprises is the main 
authority in charge of trade policy formulation and implementation;  it is assisted by other Ministries 
and institutions, including the Ministries of the Economy, Planning and Inte rnational Cooperation;  
Finance;  Agriculture;  Mining;  Tourism;  Transport;  and Water and Forests;  the Chamber of Commerce;  and the non-State actors. 
11. The policy relies essentially on the legislative and regulatory framework governing trade 
activities, the CEMAC integration framework, th e Cotonou Agreement, the other regional and 
bilateral agreements, and WTO rules. 
I. ECONOMIC ENVIRONMENT 
(1) E
CONOMIC SITUATION  
12. The considerable deterioration in the socio-po litical environment over the past few years has 
had an adverse effect on economic  performance.  However, since March 2003, efforts have been 
made to improve the country's  overall economic situation. 
(a) Economic growth 
13. Since independence, economic de velopment has depended on the development of the primary 
sector, which alone accounted for more than half of GDP (55 per cent) in 2006, followed by the tertiary sector (32 per cent) and the secondary sector (13 per cent). 
14. In 2005, driven by a recovery of the diamond i ndustry and the tertiary sector (trade, transport 
and telecommunications), economic growth reached 2. 2 per cent, rising to 3.7 per cent in 2006.  For 
the first time since 1999, real per capita inco me grew.  At the same time, 2006 saw a rise in 
inflationary pressure, with average inflation reachi ng 6.5 per cent as opposed to 2.9 per cent in 2005 
and -2.1 per cent in 2004. 
(b) Public finance 
15. State revenue has recovered slightly, rising fro m 7.7 per cent of GDP in 2003 to 8.2 per cent 
in 2005.  Although in terms of the CEMAC converg ence criteria this evolution may be modest, the 
trend is a favourable one and reflects the impact of  the reforms introduced to curb fraud and the sharp 
decline in the quality of public services. 
16. Meanwhile, public expenditure went from 12.3 per cent of GDP in 2003 to 13.5 per cent in 
2004, falling back to 12.8 per cent in 2005.  These figures reflect expenses linked to the general 
elections as well as the burden of the wage bill.   The Central African Republic WT/TPR/G/183 
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(c) Monetary policy 
17. Monetary policy is conducted at the regional level by the Bank of Central African States 
(BEAC), while monetary programming is handled at  the national level.  The M2/GDP ratio has 
decreased steadily over the past few years (from 24.45 per cent in 1996 to 14.22 per cent in 2003), 
reflecting a low level of loans, with liquidities representing a large share of the money supply. 
(2) DEVELOPMENT OF THE PRODUCTIVE SECTORS  
18. Macroeconomic projections target an annual ec onomic growth rate of at least 5 per cent 
starting in 2007.  This is based on a number of  hypotheses which assume an increase in public and 
private investment as a result of domestic and forei gn direct private investment as well as official 
development assistance.   
19. Agriculture remains the dominant economic ac tivity, accounting for 40 per cent of GDP and 
providing employment and income to more than 95 per cent of the rural population. However, it 
accounts for barely 10 per cent of export revenue, and absorbs an average of 10 to 20 per cent of the public investment programme.  In the short term , economic growth will rely on increased dynamism 
in the export and food crop sectors (cotton, coffee, bana nas, plantains, cassava, peanuts, maize, millet, 
sorghum, sesame, oil palm, sugar cane, fruit and vegetables) and in  livestock breeding and industry 
(agrifood, leather tanneries and cotton spinning).  Mining (diamonds and gold), transportation, 
electricity, telecommunications and tourism will also  act as important sources of growth and foreign 
exchange. 
(3) B
USINESS ENVIRONMENT  
20. Aware of the importance of the private sector in the country's economic reconstruction, the 
Government has already taken measures to improve  the business environment in the Central African 
Republic.  These include: 
1. Regulating business in accordance with the OHADA Treaty; 
2. adopting a national investment charter; 3. introducing a mining code and joining th e ETI Initiative and the Kimberly Process; 
4. bringing forestry licensing into conformity with the Forest Code; 
5. creating and implementing a permanent framework for State/private sector 
consultations; 
6. creating a single window to deal with the administrative formalities for setting up 
businesses in order to reduce costs and speed up the process; 
7. establishment of a trade court both in Bangui and in the provinces. 
II. ECONOMIC REFORM 
21. The Central African Republic, with the help of the international community, has firmly 
committed itself to a financial and economic reform  programme aimed, in the medium term, at 
poverty reduction in a context of economic stability.  To that end, the Government adopted a general 
policy paper which was validated by the National Assembly in July 2005.  This paper focuses, inter 
alia, on the following: 
1. Security and the consolidation of peace; 
2. macroeconomic stabilizati on and institutional reform; 
3. rebuilding of basic infrastructure; 4. good governance. WT/TPR/G/183 Trade Policy Review 
Page 8 
 
 
22. A Poverty Reduction Strategy Paper (PRSP), begun in 2000 with the help of the IMF and the 
UNDP, is currently being completed (mid 2007). 
(1) MACROECONOMIC REFORM  
a. Good governance 
23. In the area of good governance, the Gove rnment has taken the following measures: 
1. Effective establishment of the National Fi nancial Investigation Agency (ANIF) within 
the Ministry of Finance and Budget; 
2. ongoing reform of the trade courts:  the Organic Law was adopted and the 
implementing decree is currently being pr epared.  Two commercial judges will 
represent the private sector in order to b oost the confidence of economic operators; 
3. adoption of the laws authorizing ratifica tion of the United Nations Convention against 
Corruption and the African Union Convention on Preventing and Combating Corruption, and incorporation of these conven tions in the country's planned new Code 
of Criminal Procedure. 
b. The Ministry of the Economy  launched an ambitious reform plan for the period 2006-2008 
aimed at improving the country's economic performance.   The Ministry will be restructured to make it 
possible, among other things, to conduct prospec tive studies on development issues and sectoral 
strategies in keeping with the poverty reduction pr ogramme, to supply reliable statistical data on a 
regular basis with the creation of the Central Afri can Institute of Statistics and Economic and Social 
Studies, and to mobilize and better manage the im plementation of the debt forgiveness process. 
c. The Ministry of Commerce, Industry and Small and Medium Enterprises  implemented 
an action plan aimed at improving the business environment with a view, inter alia , to strengthening 
the private sector and improving the legal and re gulatory framework.  There are plans, in this 
connection, to study the possibility of setting up industrial estates in Bangui and in the provinces. 
24. The Government has been focussing on the promotion of the manufacturing industries.  Its 
objective is to draw up an industrial development m aster plan, to prepare an investors' guide, to 
develop international industrial cooperation, to strengthen local production and processing capacity, 
and to set up a standards and quality control system. 
d. Regarding public finance , fiscal consolidation is an important component of the 
Government's structural reform programme  and its efforts to promote good governance. 
25. The ongoing reform of the tax and customs ad ministrations, the broadening of the tax base 
and the improvement of tax payers' compliance will help to improve State revenue.  The Government 
felt that administrative reforms should be introduced  to intensify revenue mobilization and to bring 
public expenditure under control. 
26. Other measures are also being taken, particularly to build the capacity of customs officials, to 
combat evasion and corruption, to streamline cu stoms clearance procedures and to substantially 
improve customs revenue. The Central African Republic WT/TPR/G/183 
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27. The ASYCUDA++ system, which was recently introduced as a pilot project, will be fully 
installed as of June 2007.  This will make it possibl e to establish customs value and limit discretionary 
authority in this area (transaction value system). 
e. Government procurement 
28. A committee has been set up by the Ministry of Finance and Budget to review the 
government procurement system and to draw up a ne w government procurement code in keeping with 
international standards. 
(2) SECTORAL REFORM  
29. The Government has begun to reform certain key sectors of the economy with a view to 
establishing transparent and predictable rules that saf eguard the rights of investors while maximizing 
State revenue.  Special emphasis will have to be placed on the processing and exportation of products 
in those sectors. 
(a) The agricultural and livestock sector 
Agriculture 
30. Agriculture dominates the country's economy and provides more than half of the sector's 
value added.  It has a good biophysical base, and revolves around two branches:  cash crops (cotton, 
coffee, tobacco) and food crops (including cassava, ma ize, rice, peanuts, sesame, pumpkins, etc).  Of 
a total of 15 million hectares of arable land, only 600,000 to 700,000 hectares are cultivated each year, 
i.e. approximately 1 per cent of the national territory. 
Livestock 
31. The country has natural resources conducive to  the development and intensification of 
livestock breeding.  With only nine million of an es timated total of 16 million hectares of pasture and 
grazing land exploited, there is still considerable unt apped potential.  Farms were generating close to 
five billion CFAF a few years ago as compared to three billion today, and the livestock population is 
estimated at ten million. 
32. Cash crops, in particular coffee and cotton, are currently undergoing a crisis following the fall 
in world prices and the socio-political disturbances that have destroyed the country's productive 
capital. 
33. Reforms and projections target the recovery of the sector through: 
- The forthcoming organization of a ge neral stakeholders' meeting on rural 
development; 
- preparation and adoption of a master plan for agriculture; 
- establishment of a partnership to revive the cotton sector; 
- increase in productivity through operatio nal capacity building of farmers; 
- diversification and pro cessing of export products; WT/TPR/G/183 Trade Policy Review 
Page 10 
 
 
- fundraising for the rehabilitation of agricultural support structures; 
- restructuring of the Chamber of Agriculture. 
(b) The forestry sector 
34. The revival and development of the forestry sect or is one of the Government's medium term 
priorities.  Indeed, after the rural sector the timber sect or is one of the pillars of its strategy of poverty 
reduction through sustainable growth. 
35. A rise in production and export of timber and revival of hunting activities will contribute not 
only to increasing the national wealth , tax revenue and foreign exchange  earnings, but will also act as 
an important starting point for poverty reduction in fo rest areas, which will be achieved by improving 
the income of the populations and boosting investme nt in the basic social areas (education, health) 
and in transport infrastructure.  Such a rise will only be possible if the following fundamental steps 
are taken: 
1. Promotion of an environment conducive to  the establishment of efficient enterprises 
with a high capacity to create jobs; 
2. promotion of good governance,  particularly transparency and increased control in the 
management of natural resources; 
3. mobilization and organization of the grassroots communities and increased 
participation of those communities in the management of the sector's resources. 
36. The forestry sector is faced with the following problems: 
1. Poor governance; 
2. poor management of forestry resources; 
3. haphazard granting of permits. 
37. Forestry permits were granted on a haphazard basis from 1998 to 2002.  The stakeholders' 
meetings on water and forests held in 2003 identif ied a number of problems relating to regulatory 
texts that had lapsed.  This led to the revision of the legal and regulatory framework with a view to 
consolidating sustainable management practices,  increasing value added, and adopting competitive 
and transparent criteria for granting operating and development permits so as to ensure that all 
revenue from forestry taxes was distributed between  the treasury and the ear marked accounts for the 
development of forestry and tourism. 
(c) The mining sector 
38. The Central African Republic has considerable  potential in the mining sector.  For the 
moment, only diamonds and gold are exploited, but w ith constraints such as the small scale of mining 
operations, fraud and smuggling that is difficult to control owing to the permeability of the country's 
borders, their contribution to GDP remains modest (3.5 per cent). 
39. In order to overcome these constraints, the G overnment has developed strategies to revitalize 
and develop the sector, based on a significant a nd sustainable increase in production by 2008, 
doubling the sector's share in State revenue and bringing the poverty rate in the mining areas down to The Central African Republic WT/TPR/G/183 
 Page 11 
 
 
70 per cent from the current 83.6 per cent.  The objective is to stimulate mining production as quickly 
as possible in order to boost export volumes and im prove the sector's contribution to fiscal revenue. 
40. Accordingly, the Government organized a ge neral stakeholders' meeting for the sector, 
adopted a new Mining Code and im plementation texts which include elements of good practices, such 
as the streamlining of the formalities for obtaining mining permits and the law on radioactive ores.  
The country was admitted as a recognized  exporter under the Kimberley Process. 
(d) The tourism and crafts sector 
41. Tourism :  The Central African Republic has a si zeable potential for tourism (cultural 
diversity, tourist sites and national parks) which could be developed if it took advantage of its 
geographical position and its reputation for hospitality.  It is held back  chiefly by its poor connections, 
its high transport costs (no charter services) and limited hotel capacity, and the absence of tour operators, coupled with a lack of awareness of its resources and products. 
42. Reforms have involved the strengthening of security and peace in the country, and the transfer 
of tourist activities from the State to private opera tors, for example the Oubangui Hotel, the Boali 
Hotel, the Bayanga site, and now, the Hôtel du Centre. 
43. A master plan has been drawn up by the Departme nt of Tourism in order to revive the tourist 
sector.  It calls for a better understanding of the ava ilable potential, site development, diversification 
of products, support for economic operators, and th e promotion of the Central African Republic as a 
destination. 
44. Crafts :  This is a growth sector which is prom ising in terms of raw materials and could 
contribute significantly to poverty reduction thanks to its capacity to create jobs.  However, it is beset 
with problems relating to poor organization of cr aftsmen and a lack of equipment and training. 
45. The crafts sector is divided into three categories:  art (woodcarving, jewellery), production, 
and services. 
46. The development strategy involves drawing up a development plan to identify the needs of 
craftsmen and offer solutions in the form of micro-financing, micro-subsidization, and the 
organization of cooperative associations.  Only then  will the sector be able to help alleviate the 
dependency on imports and contribute to solving the country's trade balance problems and to 
combating poverty. 
(e) The water and electricity sector 
47. The country has a production capacity of barely 20 MW with two hydroelectric plants 
(Boali 1 and 2 supplying Bangui) and diesel generators supplying 16 provincial towns.  Four small 
hydro plants are currently being constructed w ith foreign aid, and six others are planned. 
48. The Societé de distribution d'eau centrafricaine – SODECA (Central African Water Supply 
Company) supplies drinking water to 23 per cent of  the population in eight towns:  Bangui, Bambari, 
Berberati, Bossangoa, Bouar, Bozoum, Carnot and Ndél é.  The Ministry of Mining, Energy and Water 
Resources ensures the supply of drinking water to 61  per cent of the rural population.  Finally, two 
additional projects are under way in the wa ter resources management area:  the Projet d’aménagement 
des ressources naturelles  – PARN (Natural Resources Planning Project) and the Projet d’exploitation 
des eaux souterraines dans la région occidentale  – PEESRO (Ground Water Exploitation Project in 
the Western Region). WT/TPR/G/183 Trade Policy Review 
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49. The Government intends to hand over the manage ment of water and electricity supply to the 
private sector, while reforming rates and improving coll ection.  Liberalization of the sector is planned 
for 2007. 
(f) The telecommunications sector 
50. This sector was partially liberalized in 1996 by Law No. 96.008 of 3 January 1996, and 
several private operators have emerged.  The Govern ment intends to maintain the same course, and to 
strengthen the regulation of the sector to increase its contribution to economic growth and to full 
coverage of the country. 
51. The National Assembly is currently adopting a ne w code which provides for full liberalization 
in order to improve territorial coverage  in various telecommunications products. 
(g) The financial sector 
52. The financial sector comprises three commercia l banks, a micro-financing institution and a 
micro-financing project, a postal savings bank and m oney order centre, two insurance companies, two 
general insurance agents and a social security institution. 
53. The Central African Republic does not have any leasing or term loan companies.  The sector 
is dominated by the commercial banks, which hold 84 per cent of total assets.  Their situation 
deteriorated sharply in 2002 and 2003, when the se ctor underwent a serious li quidity crisis and its 
portfolio declined.  Although placed under the control of the Commission bancaire de l'Afrique 
centrale – COBAC (regional banking commission) and in the absence of any legal barriers, the 
financial sector in the Central African Republic has had a limited role in the collection of savings, the 
distribution of credits and financial intermediation. 
54. A convention for the establishment of a Comm unity of Sahel-Saharan States (CENSAD) 
Investment Bank has just been signed.  At the same  time, efforts are being made to favour the creation 
and development of micro-financing institutions an d the introduction of life insurance and credit 
insurance. 
55. Insurance will follow in the wake of economic development once there has been a revival in 
economic activity as a result of the various reforms undertaken.  However, the problem is that the 
Central African Republic has no life insurance co mpany to facilitate loans and replace African 
solidarity. 
(h) Transport 
56. Owing to its land-locked status and the dist ance which separates it fro m the coastlines, the 
Central African Republic is at a disadvantage when it comes to imports and exports. 
57. Land transport has deteriorated, with a decline in  the road network, insufficient infrastructure 
(only 700 km of a total of 9,307 km of classified roads are surfaced), an ageing and insufficient car 
population, an overloaded network, and no access to loans for renewal. 
58. River transport is faced with the problem of th e navigability of the Oubangui river (seven to 
eight out of 12 months), the weir at Zinga, and the lack of beacons on certain segments. 
59. In the air transport subsector, there have been problems relating to the deterioration of airport 
infrastructure and safety, and the security of Bangui M'Poko International Airport. The Central African Republic WT/TPR/G/183 
 Page 13 
 
 
60. As regards land transport, and in particular the transit of goods between Douala and Bangui, 
the Government is currently seeking partners with a view to creating a dry port for all imports into the 
country via Douala. 
61. This single platform, coupled with the recent creation of conventional customs corridors for 
the transit of goods between D ouala and Bangui made up of chec kpoints and rest areas for truck 
drivers, is bound to contribute to the combat agai nst fraud by controlling the import flow from Douala 
to Bangui, while helping to safeguard and optimize cu stoms revenue with a view to facilitating trade.  
A project involving the construction and outfitting of customs posts is under way. 
62. Appropriate policies will be needed for the road and river transport subsectors in view of their 
impact on the economic and social development of the entire population of the Central African 
Republic.  The road infrastructure development st rategy will call for continued asphalting of trunk 
roads and the upgrading of existing infrastructure by  providing for the proper and regular maintenance 
of rural dirt roads. 
(i) Investment 
63. The National Investment Charter, adopted to  implement the CEMAC Community Charter, 
aims at the development and processing of local raw materials, the creation of value added and 
employment, and the exportation of finished produc ts, and advocates the freedom of investment, non-
discrimination and total freedom in the ma nagement and transferability of profits. 
64. Reforms in this area involve institutional, human  and material capacity building in order to 
improve the monitoring of approved enterprises wh ile taking account of trade aspects when adapting 
the National Charter to the Community  Charter, already under review. 
III. INTERNATIONAL RELATIONS 
(1) THE WTO  AGREEMENTS  
65. The Central African Republic participates in  the ongoing multilateral trade negotiations on 
the Doha Development Agenda.  It supports all of the measures that seek to favour market access for 
the developing countries, in particular the l east developed countries.  These measures include: 
- Elimination of the agricultural subsid ies granted by the developed countries; 
- access to the markets of the industria lized countries for agricultural and non-
agricultural products from the developing countries; 
- access to medicines for HIV/Aids through incentives offered by the developed 
countries to their institutions and enterprises to promote and encourage the transfer of 
technology to the LDCs in accordance with  Article 66.2 of the TRIPS Agreement;  
and offer of preferential tariffs for the importation of medicines, thereby easing the public health problems experienced by the Central African Republic; 
- improvement of special and differential treatment; 
- implementation of an enhanced Integrated Framework as one of the elements in the 
promotion of aid for trade; 
- trade facilitation; WT/TPR/G/183 Trade Policy Review 
Page 14 
 
 
- requirement for shared commitments of developed countries with respect to Mode 4 
and the need for Members to ensure th at the GATS architecture is preserved; 
- strengthening of technical assistance. 
(2) REGIONAL AGREEMENTS  
(a) The CEMAC integration framework 
66. The Central African Republic is a member of  the Central African Economic and Monetary 
Community (CEMAC), whose intra-community trade is  governed by the Community's rules of origin. 
67. The implementation of this common trade po licy has encountered a number of problems 
relating, inter alia , to the lack of effective integration within the Community, incoherence in the 
application of commonly agreed measures between th e countries, the application of the CET within 
the Community by land-locked countries, double taxation of goods traded within the Community, and the failure to observe the intra- Community compensation mechanism. 
68. The Central African Republic is committed, with in the CEMAC, to effective integration that 
would facilitate the free movement of  persons and goods, to the review of the Investment Charter, to 
the proper implementation of the intra-Community  compensation mechanism and the harmonization 
of rules of origin so that goods traded within th e Community can be identified, and to the introduction 
of juxtaposed customs posts and the creation of  checkpoints to facilitate trade between member 
countries. 
(b) ACP-EU Economic Partnership Agreements 
69. The Central African Republic is one of the 77 ACP countries to have signed the Economic 
Partnership Agreements (EPA) of 23 June 2000 with the countries of the European Union. 
70. The geographical grouping concerned is made up of the six CEMAC States plus Sao Tomé 
and Principe and the Democratic Republic of the Congo. 
71. Although some efforts have been made, much re mains to be done before the members of the 
National Trade Negotiations Committee achieve sufficie nt ownership of the negotiating process to be 
able to formulate a proper negotiating mandate for the country as a land-locked LDC. 
72. This agreement will complicate the country's trad e relations and generate  considerable losses 
in revenue owing to the strong competition from Europe. 
73. At the same time, the Central African Republic is  still worried by certain specific problems.  
Consequently, it will need substantial support in building-up its production capacity and rebuilding 
industrial plants, namely: 
1. Support for basic infrastructure such as roads, energy and water; 
2. support for the production sectors with  a view to diversifying supply; 
3. support for private sector promotion; 4. measures to offset the losses resulting from the implementation of the EPA. The Central African Republic WT/TPR/G/183 
 Page 15 
 
 
(3) BILATERAL AGREEMENTS  
(a) Relations with the United States 
74. Since 2003, the Central African Republic has no lo nger been eligible for the African Growth 
and Opportunity Act (AGOA) but rather, for a genera lized system of preferences.  However, the 
United States does provide financial support in the framework of the Congo Basin Forest Partnership 
(CBPF).  The Central African Republic hopes to regain its eligibility for this important Act as part of 
the process of restoring its relations with its develo pment partners and promoting aid for trade, which 
will improve its market access possibilities. 
(b) Other bilateral agreements 
75. Over the years, the Central African Republic has concluded a number of trade agreements 
with different countries:  economic, trade and tec hnical cooperation agreement with China;  trade 
agreements with Egypt, Libya, Sudan, Nigeria, Chad, the former Soviet Union, Iraq, Germany, 
Former Yugoslavia, and North Korea;  and the investment promotion protection agreement with 
France, Germany, Switzerland, Egypt and Morocco. 
76. These agreements set out the framework for tr ade and consultation between the contracting 
parties while respecting the legislation in force in each country. 
77. In order to ensure the effective application of  the bilateral agreements, the Central African 
Republic and certain other countries set up joint expe rt commissions to follow up trade, suggest any 
measures that could improve economic cooperati on, and provide for the exchange of trade 
information between the countries.  The Central African Republic essentially imports manufactured 
goods and exports agricultural and mini ng products without value added to  its trading partners.  It is 
relying on these different agreements for a transfer of technology that will enable it to diversify its 
export products and improve their quality. 
(4) TECHNICAL ASSISTANCE NEEDS  
78. The Central African Republic has trade-related t echnical assistance needs in various areas, in 
particular the implementation of tr ade-related agreements, participati on in the regular activities of the 
WTO, capacity-building for participation in trade ne gotiations and the formulation of trade policy, the 
elimination of supply side constraints, and the integration of trade and development policies. 
79. The country's trade-related technical assistance needs with respect to the implementation of 
the agreements and policy formulation concern, in  particular:  notifications;  harmonization of 
domestic laws and regulations with the principles and rules of the WTO;  human and institutional 
capacity-building in the trade area;  and the deve lopment of policies aimed at boosting profits and 
minimizing potential costs relating to the implementation of the agreements. 
80. There is also the elimination of supply-side c onstraints, namely:  the poor state of the roads 
and the persistent insecurity in the country;  the lack of inputs such as electricity, telecommunication 
services, and a financial system oriented chiefly towards import-export activities, not to mention the 
additional costs relating to the country's land-lock ed status.  The authorities hope to take better 
advantage of the country's considerable assets in the agricultural area, and in particular to revitalize 
cash crops and develop livestock breeding.  The inte gration of trade policy in the Poverty Reduction 
Strategy Paper (PRSP) could also help to eliminat e poverty.  In this connection, the Central African 
Republic is relying on the implementation of the en hanced Integrated Framework and aid for trade in 
order to build up its supply and production capacities. WT/TPR/G/183 Trade Policy Review 
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81. Technical assistance needs are also felt in the different production sectors such as: 
a. Tourism 
- Technical support upon request in formulating the Government's policy and projects 
in the tourist area; 
- fundraising for the Government's  planned operational activities; 
- assistance in implementing these operational activities; - human capacity building in the tourism sector. 
b. Agriculture 
- Technical and institutional support for agricultural research and training; 
- support for the professional organizations (gr oupings, associations, federation) in the 
technical supervision area. 
c. Forestry 
- Capacity building with respect to diversif ication and marketing strategies for timber 
and non-timber products.  
d. Transport 
- Revival and implementation of the project to build a flow control dam at Palambo, 
66 kilometres upstream from Bangui; 
- capacity building in transport management for ministry officials; 
- upgrading of Bangui M'Poko International Airport to bring it into line with 
international standards; 
- rehabilitation of rural dirt roads. 
e. Financial services 
- Support for the creation of a databank; 
- strengthening of the insurance market in connection with fundraising for the 
establishment of a life insurance company; 
- supply of work equipment. 
f. Trade and industry 
- Technical support for multilateral trade negotiation capacity building; 
- support for the drawing up of a masterplan for industrial development; The Central African Republic WT/TPR/G/183 
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- support for the creation of a standardization laboratory; 
- integrated database capacity building. 
g. Private sector 
- Creation of a financing structure for SME/SMIs; 
- support for the creation of an approved management centre; 
- support for the revitalization of the SME/SMI support bodies. 
CONCLUSION 
82. This statement, which reflects the Government 's socio-economic policy, calls for significant 
growth and self-sustained development aimed at en abling the Central African Republic to achieve its 
fundamental objectives, including those deriving from its WTO membership.  The various analyses 
conducted at the WTO have revealed the strengths  and weaknesses of the country's trade policy. 
83. The Central African Republic, determined that  its trade policy should succeed, is relying on 
the multifaceted assistance of all of the donors and deve lopment partners to enable it to confront the 
development challenges that lie ahead.  
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