99-0774 MOREPRESS RELEASE
PRESS/TPRB/105
26 February 1999
 TRADE POLICY REVIEW BODY
REVIEW OF GUINEA
TPRB'S EVALUATION
The Trade Policy Review Body of the World Trade Organization (WTO) concluded its first
review of Guinea's trade policies on 25 and 26 February 1999. The text of the Chairperson'sconcluding remarks is attached as a summary of the salient points which emerged during the
discussion. The review enables the TRPB to conduct  a collective examination of the full range of
trade policies and practices of each WTO member country at regular periodic intervals to monitor
significant trends and developments which may have an impact on the global trading system.
The review is based on two reports which are prepared respectively by the WTO Secretariat
and the government under review and which cover all aspects of the country's trade policies, including
its domestic laws and regulations, the institutional framework, bilateral, regional and other
preferential agreements, the wider economic needs and the external environment. A record of the
discussion and the Chairperson's summing-up together with these two reports will be published in duecourse as the complete trade policy review of Guinea and will be available from the WTO Secretariat,
Centre William Rappard, 154 rue de Lausanne, 1211 Geneva 21.
Since December 1989, the following reports have been completed: Argentina (1992 & 1999),
Australia (1989, 1994 & 1998), Austria (1992), Bang ladesh (1992), Benin (1997), Bolivia (1993),
Botswana (1998), Brazil (1992 & 1996), Came roon (1995), Canada (1990, 1992, 1994, 1996 & 1998),
Chile (1991 & 1997), Colombia (1990 & 1996), Cost a Rica (1995), Côte d'Ivoire (1995), Cyprus
(1997), the Czech Republic (1996), the Dominican Republic (1996), Egypt (1992), El Salvador
(1996), the European Communities (1991, 1993, 1995 & 1997), Fiji (1997), Finland (1992), Ghana
(1992), Guinea (1999), Hong Kong (1990, 1994 & 1998), Hungary (1991 & 1998), Iceland (1994),
India (1993 & 1998), Indonesia (1991,1994 & 1998), Israel (1994), Japan (1990, 1992, 1995 & 1998),
Kenya (1993), Korea, Rep. of (1992 & 1996), Lesotho (1998), Macau (1994), Malaysia (1993 &
1997), Mauritius (1995), Mexico (1993 & 1997),  Morocco (1989 & 1996), New Zealand (1990 &
1996), Namibia (1998), Nigeria (1991 & 1998), Norway (1991 & 1996), Pakistan (1995), Paraguay
(1997), Peru (1994), the Philippines (1993), Poland (1993), Romania (1992), Senegal (1994),
Singapore (1992 & 1996), Slovak Republic (1995), the Solomon Islands (1998), South Africa (1993
& 1998, Sri Lanka(1995), Swaziland (1998), Sweden (1990 & 1994), Switzerland (1991 & 1996),Thailand (1991 & 1995), Togo (1999), Trinidad and Tobago (1998), Tunisia (1994), Turkey (1994 &
1998), the United States (1989, 1992, 1994 & 1996),  Uganda (1995), Uruguay (1992 & 1998),
Venezuela (1996), Zambia (1996) and Zimbabwe (1994).PRESS/TPRB/105
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MORETRADE POLICY REVIEW BODY
REVIEW OF GUINEA
CONCLUDING REMARKS BY THE CHAIRPERSON
The first Trade Policy Review of Guinea was conducted by the TPR Body on 25 and
26 February 1999.  These remarks, prepared on my own responsibility, are intended to summarize the
main points of the discussion;  they are not intended as a full report.  Further details of the discussion
will be fully reflected in the minutes.
The discussion developed under two main themes:  (i) economic environment;  and (ii) trade
measures and sectoral policies.
Economic environment
Members commended Guinea on its unilateral liberalization and economic reforms that had
resulted in sustained GDP growth of almost 5% a year in recent years.  Inflation had been contained
and the trade account was improving.  Noting that progress in addressing the current account situation
had been limited by service deficits, and that export competitiveness was hampered by high costs of
utilities, negative tariff escalation and high taxation of petroleum products, Members asked about
measures envisaged by Guinea to maintain economic growth, diversify exports, promote thedevelopment of the private sector, improve extern al competitiveness, and combat corruption.  They
sought clarification on the link between Guinea's  long-term development strategy (Guinea, Vision
2010) and the ongoing economic reforms.
Noting Guinea's limited WTO involvement, part icipants inquired about how this might be
remedied, about progress on trade-related technical assistance under the Integrated Programme, andabout measures to adjust to any reduction of preferences resulting from multilateral liberalization.
Clarification was sought on the current status of implementation of competition legislation and
privatization programmes, on exchange arrangements, and on restrictions on foreign direct
investment.  Some Members asked about Guinea's position with respect to regional agreements and
integration in West Africa.
The representative of Guinea responded that continued economic and trade reforms, including
tariff rationalization, would contribute to maintain ing economic growth;  but in this respect the impact
of the refugee situation could not be ignored.  Trade activities had been liberalized, a support center
(the Center for Export Formalities (CAFEX)) and the Framework Project for the Promotion of
Agricultural Exports (PCPEA) established, export taxes abolished, and tariff concessions granted,with a view to promoting and diversifying exports, and regaining Guinea's former market shares.  The
Garafiri dam was being constructed, with financing from the local population and the donor
community, to increase Guinea's self-sufficiency in  energy, and public investment was contributing to
the development of infrastructure.  Privatization of p ublic enterprises, liberalization of supply of basic
services and the establishment of industrial zones were also under way.  These measures, combined
with statutory and institutional reforms, woul d attract foreign investment.  He noted that
macroeconomic forecasts under Guinea, Vision 2010 were reliant on the successful implementation ofstructural adjustment.
The representative reiterated Guinea's need for technical assistance, which would also
improve its WTO involvement;  future amendments  to Guinea's tariff would comply with its
multilateral commitments.  On preferential treatment, Guinea, like other African ACP countries,
stressed the need that its commercial position be maintained.  Guinea relied on its comparativeadvantages to increase its market access in WAEMU;  future amendments to legislation and tariffs
would take into account similar reform in WAEMU.  He noted that Guinea's trade account had beenPRESS/TPRB/105
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MOREin surplus in 1998, due to an increase in mineral and agricultural exports.  He also stressed that
corruption difficulties were being resolutely addressed.
Trade measures and sectoral policies
Members acknowledged Guinea's significant progress in liberalizing its trade regime.
Applied tariffs on industrial products were around 15%.  However, there was some concern that:  the
structure of border duties remained complex;  import duties on almost all non-agricultural products
were unbound;  there were high margins between bound and applied tariffs;  the applied DFE rates onrice, flour and vegetable oil were higher than the bound rates;  Guinea's tariff displayed negative
escalation;  the application of the consumption surcharge was discriminatory;  and that seasonal
quantitative restrictions were maintained on potatoes.  Members also asked about plans to review the
fee structure for pre-shipment inspection.
Specific questions were raised regarding Guinea's schedule for adopting a "transaction-value"
basis for custom's valuation;  local content schemes;  standards;  measures to promote exports;  the
rationale for export taxation;  participation of the private sector in the analysis of trade problems;workers representation in the ILO Conference;  and the use of data contained in the Secretariat report
for IDB purposes.  Some Members sought clarification on restrictions affecting certain services
activities.  Information was also sought on plans for further privatization and liberalization of various
sectors of the economy, including agriculture, mining and services, and on exploiting Guinea's
agricultural potential.  Questions arose on Guinea's intentions regarding its limited WTOcommitments in services, especially financial services and telecommunications.
Members asked about protection of intellectual property rights in Guinea, including the role
of the Guinean Association for the Promotion of Invention and Innovation (AGUIPA), and about
steps being taken to bring the Bangui Agreem ent into compliance with TRIPS.  Guinea was
encouraged to open its government-procurement market to all suppliers.
In reply, the representative of Guinea noted that pre-shipment inspection had been launched
in 1996 with a view to improving duty collection;   provisions of the contract between SGS and
Guinea might be amended.  The ongoing amendments to tariff were largely being based on the
WAEMU Common External Tariff and would simplify the structure of Guinea's import duties.
Publication of the Secretariat report meant that the data it contained could be used for IDB purposes.The private sector participated in the national analysis of trade and related policies.  The
representative noted that Guinea needed technical as sistance to collect trade data and to implement
Guinea's standards-certification system.  He noted that the seasonal prohibition of imports of potatoes
had been abandoned.  On local content schemes, he  said that Guinea would comply with its WTO
obligations.  The government procurement Act was being revised.  In Guinea, workers' associationswere privately run.  The Bangui Agreement on intellectual property rights was being revised to bring
it into conformity with TRIPS.
The devaluation of the Guinean franc, liberalization reforms, private investment and the
dismantling of controls on producer prices had contributed to an increased agricultural production;
food security was the major objective of agricultural policies in Guinea.  Major policy objectives in
the mining sector included the restructuring of companies, the adoption of an institutional and
juridical framework, and the construction of infrastructure.
The services sector was liberalized.  However, the lack of investment, including FDI, delayed
the privatization of companies such as Air Guinea and SOGETRAC.  Guinea needed technical
assistance to improve its multilateral commitments in trade in services.
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ENDIn conclusion, it is my strong feeling that Members welcomed the participation by Guinea in
the review process and  expressed their appreciation for significant steps taken by Guinea towards amore outward-oriented, market-driven economy, with social development a priority.  Members
recognized the difficulties inherent to such a significant economic adaptation, particularly given the
challenges faced by Guinea as a least-developed country, with a formerly centralized planned-
economy system.  They strongly encouraged Guinea to consolidate and build on the achievements of
recent years.  Members were also very conscious that, if the policies pursued domestically are toachieve the desired results, it would be important  that Guinea continue to build a favourable
environment for private capital and that it receive support at the regional level and within the
multilateral trading system.