RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/G/54
5 November 1998
(98-4312)
Trade Policy Review Body Original : French
TRADE POLICY REVIEW
GUINEA
Report by the Government
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism
(Annex 3 of the Marrakesh Agreement Establishing the World Trade
Organization), the policy statement by the Government of Guinea is attached.
Note: This report is subject to restricted circulation and press embargo until the end of the meeting
of the Trade Policy Review Body on Guinea.Guinea WT/TPR/G/54
Page 3
CONTENTS
I. INTRO DUCTION ................................................................................................................. ...4
II. TRADE POLICIES  AND PRACT ICE...................................................................................5
(1) GENERAL TRADE POLICY OBJECTIVES .....................................................................................5
(2) S ECTORAL TRADE POLICY OBJECTIVES OF GUINEA ...............................................................6
(i) Agric ulture ................................................................................................................. ..6
(ii) Energy..................................................................................................................... ......6
(iii) Industry .................................................................................................................. ......7
(iv) Mining..................................................................................................................... ......7
(v) Fishing and livestock production................................................................................8
(vi) Services ................................................................................................................... ......8
(3) G ENERAL DESCRIPTION OF THE IMPORT AND EXPORT REGIME ..........................................11
(i) Imports..................................................................................................................... ...11
(ii) Exports.................................................................................................................... ....11
(4) L EGAL AND REGULATORY TRADE POLICY FRAMEWORK .....................................................12
(i) Domestic laws and regulations governing the implementation of trade
policy ......................................................................................................................... ..12
(ii) Formulation and revie w of trade policies ................................................................12
(iii) Bilateral, multilateral regional and preferential trade agreements ......................13
(5) I MPLEMENTATION OF TRADE POLICY ....................................................................................14
(i) Trade policy measures applied by Guinea...............................................................14
(ii) Current trade libera lization programme.................................................................15
III. ECONOMIC REFO RM PROGRAMME ............................................................................15
IV. IMPORT AND EXPO RT TRE NDS......................................................................................16
(1) I MPORTS ............................................................................................................................... ....16
(2) EXPORTS ............................................................................................................................... ....17
V. PROBLEMS ENCOUNTERED BY GUINEAN PRODUCTS ON FOREIGN
MARKETS ........................................................................................................................ ......17
VI. CONCLUSION .................................................................................................................. .....17WT/TPR/G/54 Trade Policy Review
Page 4
I. INTRODUCTION
1. The Republic of Guinea is situated on the west coast of Africa.  It covers an area of
approximately 245,000 km2
 and has a population of 7.1 million (most recent census of 1997), i.e. an
average density of 17 inhabitants per km2.
2. Annual per capita income in Guinea is US$513, which places it in the category of the world's
least-developed countries (LDCs).
3. With respect to the economic situation in Guin ea, it should be noted that the change in
political regime of 3 April 1984 marked the birth of a new system for managing the country.  From
the political standpoint, the cornerstone of the system is pluralist democracy, while from the economic
standpoint it is the encouragement of private initiative and free enterprise.
4. Until 1984, the Guinean economy, which at the time was highly centralized, was in a difficult
situation, with a negative growth rate, an overvalued currency and a GDP of less than US$300.
5. In 1986, Guinea firmly opted for a liberal economy.  With the help of two of its main
development partners, the IMF and the World Bank, it launched a structural adjustment programme.
6. This programme essentially aimed at re-establishing macroeconomic balances with a view to
creating the necessary conditions for sustainable economic growth in the country.
7. Specifically, the programme involved:
- Complete restructuring of the country's banking system, with the creation of six
private commercial banks;
- change of currency, readjustment and libera lization of the exchange rate against the
main foreign currencies;
- privatization of all State enterprises;
- reduction in civil service personnel.
8. Following these reform measures, GDP growth rate  in real terms rose to an average of 4.4 per
cent during the period 1987-1990.
9. The inflation rate fell from 71.9 per cent in 1987 to 3 per cent in 1996, and the current
balance-of-payments deficit dropped from 13.4 per cent of GDP in 1988 to 8.9 per cent in 1995.
10. In 1996, the new Guinean authorities brought in following the restructuring of the
Government in July of that year, with the appointment of the Prime Minister, set as the main targets of
Guinea's current economic policy:
- To achieve economic growth in real terms of about 4.9 per cent of GDP per year
(5 per cent on average for the rural sector);
- to reduce the inflation rate;
- to reduce the external current account deficit in order to rebuild official reserves in a
significant way;Guinea WT/TPR/G/54
Page 5
- to reduce the budget deficit;
- to increase primary savings;
- to reduce the deficit in the current account of the balance of payments;
- to consolidate and improve the legal and institutional framework;
- to strengthen primary education and improve the quality of educational services;
- to develop human resources.
11. To that end, the Guinean Government took certain concrete steps while at the same time
seeking to promote and attract foreign direct investment by redirecting its resources towards priority
and high value-added sectors:
- Adoption of a programme for ensuring the security of customs revenue in cooperation
with an independent surveillance company;
- improvement of the collection of fishing fees;
- increase in revenue from the special tax on petroleum products;
- control and reduction of exemptions;
- reduction of State expenditure by more than 30 per cent.
II. TRADE POLICIES AND PRACTICE
(1) GENERAL TRADE POLICY OBJECTIVES
12. The liberalization of Guinea's economic activities has found concrete expression in the trade
area through:
- Transfer to the private sector of all commercial functions formerly exercised by the
State;
- creation of structures for private sector support and promotion;
- continued implementation of the programme to build up export facilitation
infrastructures;
- integration of trade into the production process with active private sector
participation;
- determination and improvement of trade regulations;
- adaptation of Guinean laws and regulations to bring them into line with the new
requirements of the multilateral trading system resulting from the WTO Agreements.
13. Generally speaking, the main objective of Guinea's trade policy is to develop the trade sector
in the country in order to make it a leading instrument of support for the production sector (industry,WT/TPR/G/54 Trade Policy Review
Page 6
agriculture, crafts, etc.) and to enable it to play its full role as an engine of growth and economic
development.
14. To that end, the Guinean Government will pursue its efforts to:
- Guarantee and preserve complete liberalization of the trade professions;
- ensure the maintenance of a policy of free prices and competition;
- streamline the formalities for setting up enterprises;
- promote crafts and tourism;
- broaden the foundations of the structure permitting permanent consultations with the
private sector.
(2) SECTORAL TRADE POLICY OBJECTIVES OF GUINEA
(i) Agriculture
15. The principal objective of the Guinean Government's policy in the field of agriculture is to
rapidly ensure food security for all of the country's populations and to supply foreign markets with
export goods that are competitive from the point of view of quality, quantity and price.
16. To that end, the Guinean Government launched, in 1986, a vast programme for the
development and modernization of agriculture with the active participation of the private sector andthe support of its main bilateral and multilateral development partners.
17. This programme, which is still under way, essentially aims at:
- Improving production methods in rural areas to increase the output of farmers;
- introducing systems for financing agriculture in rural areas;- improving agricultural sector output by creating and managing pilot plantations and
nursery production, with subsidization of the purchase of selected seedlings by
farmers;
- restoring and extending the rural dirt road network;
- promoting the use of agricultural inputs.
(ii) Energy
18. The policy of the Guinean Government in this sector targets at comprehensive coverage of
energy demand throughout the country in the best possible conditions.
19. To that end, the following measures are planned:
- Rehabilitation of existing production, transport and distribution facilities and creation
of new units, while at the same time ensuring a regular supply of spare parts;Guinea WT/TPR/G/54
Page 7
- updating of studies under the Production and Transport Master Plan with a view to
revising the national investment programme in that sector;
- improvement of technical, commercial and financial management in the sector;- improvement of the current institutional framework by establishing the necessary
legal and financial conditions for introducing the different types of private energy
production;
- development of a rural electrification programme;
- continuation of the campaign to promote new and renewable forms of energy.
(iii) Industry
20. The Government's objectives in this sector focus mainly on reviving its programme for the
industrialization of the country, beginning with support for private operators.
21. This policy will involve:
- Helping certain industrial units that have already been privatized or that are currently
being privatized to revive their activities;
- streamlining of the formalities for setting up new enterprises;- creating serviced industrial zones in the main regions of the country;- creating a framework for establishing relations between Guinean and foreign
operators.
(iv) Mining
22. The mining sector has long been the driving force of the Guinean economy, accounting alone
for more than one third of the country's GDP.  In view of its potential and the prospects for exploiting
that potential, this sector will be called upon to play an increasingly important role in the country'seconomy.
23. The Government's objectives in this area include:
- The strengthening and restructuring of existing enterprises such as the Compagnie des
Bauxites de Guinée (CBG), the Société Friguia, the Société des Bauxites de Kindia
(SBK), the Société aurifaire de Guinée (SAG), and the Projet diamantskimberlitiques;
- the adoption of a more favourable institutional, legal and financial framework
(Mining Code, creation of a single window for mining investors, the Centre de
Promotions et de Développment Minier (CPDM);
- the medium- and long-term implementation of major mining projects such as:
- an integrated aluminium factory project with a capacity of 200,000 T/year;WT/TPR/G/54 Trade Policy Review
Page 8
- the Dian Dian alumina and bauxite complex with a capacity of
1,000,000 T/year;
- the Nimba Simandou project and the Transguinean Railway with a deep-
water port at Conakry, capacity 50,000,000 T/year.
24. It must be pointed out that the above-mentioned projects require considerable capital
mobilization involving several hundreds of millions of US dollars, and that this, in itself, is one of the
major objectives of the Guinean Government in its effort to achieve sustainable development for the
country.
(v) Fishing and livestock production
25. Here, the objective is to maximize the economic and social benefits for the country of
exploiting its fisheries and pastures.  This takes account of the need to safeguard the balance of the
ecosystem and the sustainability of the exploitation of resources while seeking to increase the
contribution of fishing and livestock to food security, job creation, improving the income of fishermen
and breeders and boosting the State revenue.
26. Accordingly, the Government is seeking to:
- Introduce an efficient system for the planning and rational management of resources
by strengthening the monitoring and protection of fishing zones and by conducting
research;
- step up its combat against epizootics and develop a livestock food supply base;
- strengthen basic infrastructures and improve the value added of fishing and livestock
products;
- support the export of fishing and livestock products and the investments made in that
respect, and improve the value added of fishing products;
- encourage the emergence of economic operators in the areas of small-scale fishing,
industrial fishing, aquaculture and breeding;
- decentralize and improve the monitoring and surveillance of Guinean territorial
waters.
(vi) Services
(a) Banks
27. The reorganization of the Guinean banking system was among the Government's priorities in
launching the major economic reforms in 1986.
28. In the context of these reforms, banking activities were liberalized, the national banks were
closed and the BCRG restructured and restored to its status of bank of issue, responsible for
controlling and monitoring the entire Guinean banking system.
29. Since then, six private commercial banks have been set up and are currently operating in
Guinea.Guinea WT/TPR/G/54
Page 9
30. The main objectives of the Government in this area remain:
- Further consolidation of the country's banking and financial system;
- deployment of the banking system towards th e interior of the country with a view to
introducing more secure means of payment (cheques, transfers, cards, etc.)
throughout the national territory;
- more comprehensive supervision of the banking and financial system, including
mutual and rural credit networks;
- assistance with the introduction of mechanisms to facilitate investment and provide
the necessary financing;
- creation of a financial market as a tool for providing enterprises with long-term
savings.
(b) Transport, communications and telecommunications
31. The Government's objectives in this area ar e to ensure infrastructure maintenance and
rehabilitation, and access to efficient transport, communication and telecommunication networks.
32. The reaction of the private sector to the complete liberalization of activities in these areas has
been very encouraging.  Private road transport throughout the country has developed considerably.
33. The general objectives are the following:
Air transport:
- Rehabilitation of the main airports of the country's interior by the installation of new
airport facilities;
- restructuring of the national airline, Air Guinée, with the privatization of part of its
capital;
- development of the activities of the Conakry International Airport through the
implementation of its master plan aimed at doubling traffic to and from Conakry by
the year 2000.
Maritime, river and land transport:
- Improvement in the organization of road traffic in the city of Conakry (road signs,
marking out of stops, safety);
- development of the road network by restoring the dirt and paved roads and asphalting
the trunk roads;
- construction of bridges on the Fatala and the Niger;- restructuring and privatization of the Société générale de transport guinéens
(SOGETRAG);WT/TPR/G/54 Trade Policy Review
Page 10
- computerization of the management of the country's vehicle fleet and the system for
the delivery of transport documents (driving licences, registration documents,
transport authorizations, etc.) as well as the management of statistical data on road
accidents;
- construction of new bus stations at Conakry and in the interior of the country;- organization of cross-border road transport with a view to subregional integration;- rehabilitation of the first 36 kilometres of the Conakry-Niger railroad with a view to
constructing a dry port in the outskirts of Conakry at mileage point PK 36/38, andrestoring a passenger train on that segment;
- maintenance in working order of the 662 kilometres of railroad between Conakry and
Kankan (second largest town) and extension of that line up to the Nimba and
Simandou mountains (Transguinean Railway) with a view to combining passengerand freight transport with heavy mineral transport.
Telecommunications:34. The liberalization of the telecommunications sector in Guinea has brought about significant
progress with the rapid and dynamic take-over by the private sector of activities freed by the State, for
example:
- Setting up of the Société des télécomm unications de Guinée (SOTELGUI) (60 per
cent private and 40 per cent State) and the Office de la poste guinéenne (OPG);
- granting of operating licences for value added services (cellular) to three other private
operators, TELECEL, SPACETEL and WIRELESS.
35. The objectives are:
- The installation of a short-wave radio emission centre for national and international
coverage and a maritime radio station;
- installation (coastal station) of a frequency management centre and an official
network for the administration;
- installation of 500,000 telephone lines by the year 2010;- resumption of postal financial services (savings bank, national and international
payment orders);
- development and improvement of postal services.
(c) Tourism
36. In addition to its considerable potential in the fields of mining, energy and agriculture, Guinea
also has much to offer in the field of tourism.   Nonetheless, tourism remains one of the least
developed activities in Guinea.Guinea WT/TPR/G/54
Page 11
37. Thus, the development of tourism is one of the Government's priorities.  Its main objectives in
this area are:
- To lay the foundations for a proper takeoff of the Guinean tourist industry by
developing an integrated tourist package with an improved image of Guinea as adestination, encouraging professionals in the sector to invest in Guinea, training
human resources and developing a tourist code;
- encouraging and facilitating the private-sector development of tourist sites and access
roads throughout the country.
(d) Crafts38. The Government's promotional activities in this area consist in:
- Encouraging initiatives for the creation of trades chambers;
- developing and implementing a handicrafts code;
- implementing a policy aimed at encouraging the creation of craft villages;
- organizing sales exhibitions of Guinean crafts both at home and abroad.
(3) G
ENERAL DESCRIPTION OF THE IMPORT AND EXPORT REGIME
39. With the State's withdrawal from all economic activities, trade has been completely
liberalized.  Import and export operations have been facilitated and transferred to the private sector.
(i) Imports
40. The import licences required during the State trading period were abandoned in 1986 and
replaced by Descriptive Import Applications (Demandes descriptives d'importations – DDI).
41. DDIs are required for the import of goods with an f.o.b. value of at least US$2,000.  Goods
whose f.o.b. value exceeds US$5,000 are subject in a ddition to preshipment inspection of quantity,
quality and price.
42. Goods whose value is less than US$2,000 ar e not subject to DDIs, but to an Import
Description (Descriptif d'importation – DI) and are not subject to preshipment inspection.
43. As in all other countries, the import into Guinea of products that are hazardous to human
health is prohibited.  The import of strategic goods linked to State security is subject to a special
authorization (firearms, ammunition, explosives, etc.).
(ii) Exports
44. As in the case of imports, export licences, which had been mandatory, have been abandoned
and replaced by Descriptive Export Applications (Demandes descriptives d'exportation – DDE).Thus, all Guinean goods exports, whatever the destination, have been liberalized since the beginning
of the major reforms in 1986.WT/TPR/G/54 Trade Policy Review
Page 12
(4) LEGAL AND REGULATORY TRADE POLICY FRAMEWORK
(i) Domestic laws and regulations governing the implementation of trade policy
45. Before 1985, Guinean trade was essentially conducted by the State through state trading
enterprises and through a barter system for imports and exports with its former Eastern European
partners.
46. In 1986, Guinea's new trade policy based on complete liberalization of trading activities in the
country was defined in a keynote address by the Head of State.
47. The Constitution is the supreme law in Guinea.  Legislative power is vested with the National
Assembly which votes on the laws.  The President of the Republic promulgates and ratifies the laws,
and is also vested with the authority to negotiate and conclude international agreements.  He may
delegate that authority to a minister or to any other member of the Executive.
48. Where there is a need to amend legislation in order to bring it into conformity with the
provisions of an agreement, it is the National Assembly that votes on the law authorizing such an
amendment.
49. In Guinea, as in a number of other countries, trade policy is implemented by several
institutions and executive bodies of the Government.
50. It is the Minister for the Promotion of the Private Sector, Industry and Trade, as the main
person in charge of Guinea's trade policy, who submits, where necessary, bills pertaining to trade.
The laws governing trade are:
- Law on the Control of Goods;
- Law on Free Competition and Pricing Policy;
- Law on Weights and Measures;
- Law on the Code of Economic Activities;- Law on Tourism.
(ii) Formulation and review of trade policies
51. The Ministry for the Promotion of the Private Sector, Industry and Trade is in charge of the
planning, formulation, implementation and administ ration of Guinea's trade policy.  Trade laws
drafted by the Ministry (in cooperation with other ministries) are submitted to the Legislative forconsideration and a vote.
52. It is the Ministry for the Promotion of the Private Sector, Industry and Trade that prepares
trade policy measures in consultation with:
- The private sector as represented by its different support and promotion bodies
(Chamber of Commerce, Industry and Crafts of Guinea, Guinean National Council ofEmployers, Guinean Traders' Association, Guinean Foreign Investors' Club, National
Union of Guinean Industrialists, etc.);  andGuinea WT/TPR/G/54
Page 13
- the other competent institutions:  Ministry of the Economy and Finance (National
Customs Directorate), Ministry  of Planning and Cooperation, Ministry of Agriculture,
Water and Forests.
53. In Guinea, private sector participation in the development of trade policy takes place through
structures created with the State for consultations on various aspects of the national economy
(Advisory Committee on Prices, for example).
(iii) Bilateral, multilateral regional and preferential trade agreements
54. Having opted for a liberal economy, Guinea has long been seeking to create the necessary
conditions for harmonious integration into the world economy by developing its trade relations anddiversifying its trading partners.
55. The Government's main objective in this respect is to create an environment favourable to the
development of Guinea's participation in international trade while ensuring increased market
opportunities for Guinean products abroad.
56. To that end, Guinea has concluded the following agreements:
- Agreement Establishing the WTO;
- the Lomé Convention between the ACP and the EU;- the ECOWAS Treaty;- the Mano River Union.
57. Guinea is a signatory to the Fourth Lomé Convention between the European Union and the
ACP countries, under which it exports goods to the Community market free from customs duty and
other charges on a non-reciprocal basis.
58. As an original Member of the WTO, Guinea attaches to its Membership the importance it
deserves.  Guinea hopes that the WTO Agreements will serve as a basis for increasing the share of
developing countries in general and LDAs in particular in world trade, in the framework of a new
rules-based multilateral trading system.
59. The Guinean economy depends largely on its expo rts of mining products.  Guinea sincerely
hopes that the rules deriving from the Uruguay Round Negotiations will benefit its economy and thatthe downward trend in the benefits linked to th e Generalized System of Preferences (GSP) will be
reversed.
60. As one of the LDCs and a beneficiary of the GSP, Guinea hopes that all its exports, including
mining products, will continue to benefit from the tariff concessions (duty-free status or considerably
reduced duty) in the developed and developing countries.
61. Guinea is also a founding member of the Ec onomic Community of Western African States
(ECOWAS).  However, this Organization is currently  suffering from an unstable geographical context
in the subregion.  Accordingly, its vocation as an integration body is overshadowed by the concern for
stability and the maintenance of peace in the area.  The same is true for the Mano River Union.  In the
face of these realities, Guinea's objective is to ensure that economic priorities urgently resume theirplace at the forefront of subregional concerns.  To that end, Guinea has sought to revive the politicalWT/TPR/G/54 Trade Policy Review
Page 14
will needed to restore the raison d'être  of these two groupings and their vocation as economic
integration bodies.
62. It should also be noted that Guinea has concluded standard bilateral trade agreements with a
certain number of countries.  These agreements provide for most-favoured-nation treatment and do
not grant any particular tariff preferences.  The countries in question are Guinea-Bissau, China,
Tunisia, Egypt, Turkey, Côte d'Ivoire, Mali and Ukraine.
63. In April 1997, Guinea concluded a trade and tariff convention with Morocco providing for
total exemption from tariffs and taxes with equivalent effect for certain Guinean and Moroccan
products traded between the two countries, taken from Schedules 1 and 2.  The products covered by
this convention are those originating entirely in one of the two countries or having undergone a degree
of processing of 40 per cent or less.
64. Guinea was also among the first countries to accede to the Global System of Trade
Preferences (GSTP) and also signed the Agreement Establishing the Common Fund for Commodities
as well as the International Coffee Agreement.
(5) IMPLEMENTATION OF TRADE POLICY
(i) Trade policy measures applied by Guinea
(a) Customs duties
65. A few years ago, in order to meet the requirements of a liberal economy, Guinea embarked on
a thorough reorganization of its customs system and its tariffs.
66. The import duties and taxes currently in force are:
- The import customs duty (droit de douane d' entrée - DDE) at a normal rate of 7 per
cent and a reduced rate of 2 per cent;
- the fiscal import duty (droit fiscal d'entrée - DFE) at a rate of 8 per cent (except on
rice, for which there is a flat rate of  GF 58,752 per tonne, and flour and vegetable oil
for which the normal rate is 23 per cent and the reduced rate is 6 per cent);
- the clearance fee (redevance pour traitement de liquidation - RTL) of 2 per cent;- the surcharge for the consumption of certain so-called luxury items, at rates of 20 per
cent, 30 per cent, 40 per cent, 60 per cent and 70 per cent according to the nature of
the product.
67. Apart from the above duties and taxes, Guinea also levies the internal taxes listed below on
certain products.  Some of these taxes are also levied on national production.  They are:
- Value added tax (VAT) at a rate of 18 per cent;
- Special Tax on Petroleum Products (TSPP) of  GF 355 per litre of petrol, GF 245 per
litre of diesel and GF 160 per litre of oil;
- Registration Tax (TE) at a rate of 0.5 per cent (investment code regime);Guinea WT/TPR/G/54
Page 15
- Storage Tax (TEN) at a rate of 1 per cent;
- Transit Duty (DT) at a rate of 3 per cent;
- Additional Centime (CA) for the Chamber of Commerce at a rate of 0.25 per cent;
- ECOWAS Community Levy (PC) at a rate of 0.5 per cent.
68. The documents required for customs transactions are the Tax Statement (BDT) delivered by
the government supervisory body, the SGS, the purchasin g invoice, the bill of lading or airway bill,
the DDI, the certificate of origin and, where applicable, the phytosanitary certificate.
(b) Customs valuation and preshipment inspection
69. The customs valuation procedure currently in force in Guinea is based on the Brussels
Definition of Value i.e. the normal price of the g oods or the price which they would fetch at the time
of registration of the detailed declaration and at the place of introduction into the customs territory.
70. In June 1996, Guinea signed a contract with the Société générale de surveillance (SGS) for
the preshipment inspection of all goods imported in  the framework of the operation known as the
Programme for the Security of Customs Revenue (Programme de sécurisation des recettes douanières
– PSRD).  The SGS controls the quantity, quality and price of the goods and determines the customsvalue and tariff heading, monitors the settlement and recovery of duties and taxes, and handles the
documentary and physical follow up of the suspensive arrangements and of customs duty exemptions.
(ii) Current trade liberalization programme
71. One of the first measures taken by the Government in 1986, the year of the great economic
reforms in Guinea, was to liberalize trade.  All of  the state trading enterprises (131 at the time) were
closed down, import and export licences eliminated, all trading functions transferred to the private
sector, the State banks closed, import and export restrictions removed, and structures for the supportand promotion of the private sector introduced (C hamber of Commerce, Employers' Federation, trades
associations, etc.).  At the same time, steps were taken to rationalize tariffs with a view to facilitating
import and export activities.  The complete computerization of customs services as well as port
services at Conakry and the liberalization of the exchange rate of the Guinean Franc against foreign
currencies also contributed to facilitating trade activities.
72. In order to strengthen its trade liberalization efforts, the Guinean Government promulgated a
law on competition and freedom of prices.  This la w aims to monitor any infringements of free trade
practices, such as agreements, mergers, take-overs, withholding of stocks, monopolies and
oligopolies.
III. ECONOMIC REFORM PROGRAMME
73. Following several years of a centralized economy, Guinea felt the need to accompany the
change in political direction of 1984 with in-depth  reforms, in cooperation with its main development
partners, the IMF and the World Bank, to try to stabilize the economy and to achieve sustainable
growth, improve the payments situation and in general to provide the populations of Guinea with a
high standard of living.
74. Thus, in 1986, a number of structural adjustment programmes were developed.  The main
objectives of these programmes are:WT/TPR/G/54 Trade Policy Review
Page 16
- Re-establishment of monetary and budgetary discipline;
- promotion of the private sector role in the economy;- rehabilitation of basic social and economic infrastructures;
- encouragement of foreign and local investment and domestic savings;
- encouragement of exports, in particular of non-traditional products;- boosting of the country's foreign currency earnings.
75. In order to attain these objectives, a number of measures were taken, particularly in the
following areas:
- Exchange rates:  the exchange rate of the Guinean Franc against foreign currencies is
free of any controls.  Thanks to the introduction in 1996 of an interbank currency
market (replacing the weekly currency sales market), economic operators can now
buy and sell foreign currency freely using the daily rates at their commercial banks
based on supply and demand.  Exchange offices were also set up.
- Interest rates
- State budget
- Tax revenue
- Privatization:   Here, the Government's objective has always been to encourage and to
develop a strong and dynamic private sector capable of taking over economic
activities from the State.  Thus, beginning in 1986, all state trading enterprises were
privatised.  At the same time, industrial units were progressively privatized,
restructured, and/or simply closed.  Today, only a few such units, not having found
any rescuers, have come back to the State while looking for new buyers.
- Encouragement of foreign investment;  the Guinean Government is doing its utmost
to attract foreign direct investment.  Several measures have been taken to that end,
including the creation of the Office for the Promotion for Private Investment (OPIP)
with all of the necessary resources to en able it to play its full role, and the
organization in Conakry, from 26 to 29 May 1998, of the first investment forum inGuinea.  This forum was attended by more than 500 investors of which over
300 came from abroad.
- Rehabilitation of basic infrastructure.
IV. IMPORT AND EXPORT TRENDS
(1) IMPORTS
76. It must be recognised that Guinean imports of different products have increased considerably
since the liberalization of trade in the country.  This is primarily due to the fact that most of theGuinea WT/TPR/G/54
Page 17
country's consumer needs have to be met through imports and that the Government took certain
measures such as the elimination of exchange controls and of import licensing.
(2) EXPORTS
77. The promotion and development of Guinean exports have been among the main targets of
Guinea's new trade policy introduced in 1986
78. In this connection, priority will be given to reconquering Guinea's original share of the
international market (100,000 tonnes of bananas, 45,000 tonnes of coffee, 150,000 tonnes of palm oil,
etc.).
79. To attain these objectives, the Government will continue to take the necessary steps to:
- Develop and diversify exports of non-traditional products for which there is a demand
on foreign markets and for which Guinea has a significant potential;
- encourage investors (national and foreign) to take an interest in the sectors producing
for export;
- develop partnership activities in the framework of bilateral, plurilateral and
multilateral agreements with a view to creating as many outlets as possible for
Guinean exports.
80. The Government has already taken certain measures to that end, including:
- Elimination of the 2 per cent export tax and the 5 per cent packaging tax;
- temporary importation procedure for packaging and other materials intended for
export products;
- creation of an Export Formalities Assistance Centre (CAFEX) (single window for
exporters).
V. PROBLEMS ENCOUNTERED BY GUINEAN PRODUCTS ON FOREIGN
MARKETS
81. The Guinean economy, more than 90 per cent dependant on mining products, suffers
considerably from the price fluctuations affecting such products on foreign markets.  The sameapplies for coffee and cocoa, which are Guinea's main exports after mining products.
82. At the same time, the regulations and standards of some of Guinea's trading partners act as
barriers to Guinean products (agricultural and fi shing products) in foreign markets.  Although Guinea
has been granted preferential treatment by the countries of the North within the framework of the
GSP, these benefits rarely compensate for the damage caused by certain restrictive domestic measurestaken in respect of Guinean exports.
VI. CONCLUSION
83. This trade policy review provides sufficient evidence of Guinea's determination to liberalize
its economy and to direct its development towa rds the material and moral well-being of its
populations in the framework of an open and mutually beneficial partnership.WT/TPR/G/54 Trade Policy Review
Page 18
84. To that end, it will persist in its efforts to  implement the different programmes drawn up with
its main development partners in order to ensure that in the near future, the standard of living in
Guinea is among the highest in the region.
85. The Government will ensure the proper management of the country's economy while
strengthening democracy, respect for human rights and good governance.
__________