The higher commodity prices prevalent in 1996 for coffee, cocoa and cotton started a positive trend. Although cotton and coffee prices are still on the rise, the price for cocoa is expected to drop as a result of the European Union's regulation decreasing the percentage of cocoa necessary for chocolate products. Unless more stringent measures are implemented to control and rationalize use of the forests, stop concession grants that do not conform, collect export revenues and stay the relative regression in forest earnings for the state, Cameroon's profitable trade in timber could be jeopardized. Since 1985 oil production has declined. Petroleum development activities were revived in 1996 following government approval of new financial incentives for oil production from marginal fields with less than 20 million recoverable barrels over a 3-5 year economic life.
Incentives link taxes to the risk taken in prospecting for new fields.
Thus, the steady decline in known oil reserves is now predicted to rise slightly, temporarily boosting government income. Distributors have doubled their delivery capabilities in the north where previously they did little marketing. Another major impetus to the current economic euphoria is the agreement to construct an oil pipeline from Chad through Cameroon, giving rise to renewed exploration in areas near the pipeline route such as the Logone Birni basin on Lake Chad. Although progress has been made toward reducing the government's role, the public sector is still the predominant force and sometimes barrier in the country's economic development. Nevertheless, the Cameroonian Government has undertaken a number of reforms since 1989 to reduce its own stake in the economy and to promote private sector development.