WTO-trade policy report-Congo.docVIP

trade policy and practice by sector Introduction The Congos economy is largely based on exploitation of the countrys natural resources, particularly petroleum, which is expected to achieve record output of 250,000 barrels/day in 2006, generating substantial revenue in view of the record levels reached in global prices for crude oil. Since 2001, the State has reorganized activities downstream of the petroleum subsector in order to privatize some and introduce competition into the marketing and distribution of petroleum products. The subsector nevertheless remains under State control and is highly regulated. In order to diversify the basis of its economy, the interim Poverty Reduction Strategy Paper (I-PRSP) is counting on real growth of some 5.3 per cent annually over the period 2004-2006 in the non-traditional sector (all non-petroleum activities), including agriculture (encompassing livestock, fishing, forestry), and in the mining sector. The forestry subsector is still the non-traditional activity favoured by foreign investors; in 2004, it attracted around one half of the total amount of new projects approved under the Investment Charter. Nevertheless, in general, forestry enterprises have been unable to achieve the goal of processing 85 per cent of their logging output, imposed by the authorities with the aim of processing a large amount of timber on the spot prior to export. According to the International Tropical Timber Organization (ITTO), the Forestry Code adopted by the Congo in 2000 provides the basis for sustainable forestry management and the Congo would appear to be one of the first countries in the world to do this. The manufacturing sector is still in the early stages and is mainly composed of enterprises in the agri-food branch producing for the domestic market. The only export is refined sugar to the subregion and under quotas to the European Union (EU) and the United States of America. The sugar branch will therefore have to be reorganized i