RESTRICTED
WORLD TRADE WT/TPR/W/1
8February 1995
ORGANIZATION
(95-0243)
TRADE POLICY REVIEW BODY
TRADE POLICY REVIEW MECHANISM
Trade Policy Review ofCameroon
Communication from theDiscussants
Inpursuance ofAnnex 3,paragraph C(iv)oftheWTO Agreement, thefollowing areoutlines
ofthemainpoints toberaised byMr.Patrice Curé(Mauritius) andMs.Anne-Marie Plate(Netherlands)
atthereview ofCameroon tobeheldon13-14 February 1995.
Itisrecalled thatdiscussants actintheirpersonal capacity.
(a) Mr.Patrice Curé
1. TheSecretariat report notestheconcern oftheGovernment ofCameroon inachieving significant
gains inproductivity andattracting alarge amount ofinvestments tofullybenefit from theUruguay
Round.
Itobserves thattheinitial brunt ofpublic expenditure cutsbetween 1986 and1990 already
felloninvestments andthatpersistent revenue shortfalls fortheyears 1992to1994havekeptthebudget
deficit intheorder of7to8percentofGDP contributing further toasignificant decline innational
savings.
Foreign Domestic Investment continues tobenegatively affected byeconomic uncertainties
andconsiderable scepticism from investors overanailing banking system.
Considering suchadverse circumstances, whatmeasures doestheGovernment ofCameroon
envisage aspartofitsbroader market-orientated economic reform programme, toraisethelevels of
investment which remain aserious constraint toasustained economic recovery andencourage the
development ofacompetitive business sector?
2. Despite fiscal andmonetary stringency, inflation hasrisentoanannualized rateof30percent.
How dotheauthorities plantocontrol inflation inlinewithinternational levels, inorder tobenefit
from thedevaluation andtherecent liberalization ofitstrade régime?
3. TheSecretariat 'sreport notes thatamajor outstanding question nowrelates tothepredictability
andstability ofCameroon 'strade régime. There appear tobefewinstitutional constraints toprevent
protectionist measures creeping backinthesystem. Cameroon hasforgone making useofGATT
commitments toreassure national andforeign investors oftheperformance ofitstariff reform
./.WT/TPR/W/1
Page 2Trade Policy Review Body
programme. DotheCameroon authorities feeltheycanretain competitiveness inthemid-term and
resist theintroduction ofprotectionist measures?
4. Theproductive capacity hasbeensubstantially depleted through persistent decline inimports
particularly ofequipment. Ithasresulted inacontraction oftheeconomy andundermined growth
potential. How dotheauthorities address thisproblem?
5. Themain current objective oftheGovernment istocomplete thetransition from astatetoa
market economy. Ithasprogressively reduced itslevel ofinvolvement intheeconomy, even if
privatization hasnotbeentotally successful owing tomanagement problems. Howcanpastmistakes
thatresulted inill-advised andinefficient projects beavoided inthenewfiscal andeconomic
environment?
Does theGovernment, inthisregard, seearôlefortheactive informal sector increating small
businesses?
6. Cameroon isamajor partner ofCACEU anditsgeographical location opens Central Africa
toitsproducts. With acommon external tariff andacommon central bankcurrency, CACEU has
setupthebasisforrelatively advanced institutional structures forregional integration. Unfortunately,
performance hasfallen short ofexpectations andoriginal objectives, because theregion 'seconomies
arenotcomplementary asispointed outbytheauthorities ofCameroon. Indeed, theshare ofAfrica
inCameroon exports isonly4.6percentandCameroon 'simports from thecontinent amount to
2percent.
Against thebackground ofthepersistent economic crisis affecting theregion, dotheCameroon
authorities foresee anewfuture forCACEU andregional integration inthelightoftheCFAdevaluation,
thenewfiscal andcustoms régime introduced in1994, andthebroad structural economic charges
envisaged?
7. Export ofwood logsincreased considerably since theearly 1980s andhascontributed tothe
improvement oftheeconomy. In1999, theexport ofwood logswillbeprohibited. Why? Isthe
decision related toenvironmental measures?
(b) Ms.Anne-Marie Plate
1. Recent liberalization ofthetrade régime
- levelofbindings
- tariff escalation.
2. Import tariffs versus other border measures
- advalorem taxes
- temporary surcharges.
3. Standards andother technical requirements.
4. Government procurement/privatization.
5. Foreign investment.