72591 v1 World Trade Indicators 2009/10 Gabon Trade Brief Trade Policy ranks 109th (out of 148) on the GATS Commitments Index. As a member of the Economic and Monetary Community of Central Africa (CEMAC), Gabon In light of the global financial crisis, the government adopted the group’s Common External tariff (CET) in allocated 10 billion CFA francs to the Gabonese 1993. With the CEMAC tariff rates being generally Development Bank (BGD) to fund projects in higher than the average rates in the Sub-Saharan forestry, tourism, agriculture, and public housing.4 Africa (SSA) region, the country’s MFN Tariff Trade Restrictiveness Index (TTRI)1 of 14.9 percent is much higher than those of an average Sub-Saharan Africa External Environment (SSA) or upper-middle-income country (11.3 percent Comparing its Market Access TTRI,5 including and 6.9 percent, respectively). Based on the TTRI, it preferences of 0.7 percent, to the SSA and upper- ranks 163rd out of 181 countries (where 1st is least middle-income averages of 3.9 percent and 2.3 restrictive). To reduce dependence on food imports, percent, respectively, Gabon’s exports face a highly which currently account for about 60 percent of food favorable trading environment, a pattern typical for an consumption in Gabon, the government is targeting a oil�exporting country. Painting a similar picture, 45 percent increase in agricultural production by exports from Gabon to the rest of the world face a 2015.2 To this end, the agricultural sector enjoys relatively low weighted average tariff (including relatively high tariff protection of 17.9 percent, preferences) of 0.6 percent, driven largely by the low compared to 14.3 percent for the non-agricultural barrier of 0.6 percent faced by its non-agricultural sector. The country’s average MFN applied tariff has exports, which include oil. Its agricultural exports face remained largely unchanged over the past decade and a much higher tariff of 8.7 percent. Gabon’s currency, is currently 17.8 percent. Again indicating the level of the CFA franc, which is pegged to the euro, protection afforded to the agricultural sector, coffee, appreciated by 4 percent in real, trade-weighted terms fruits, and vegetables are among the products subject in 2008, making the country’s exports less competitive. to Gabon’s maximum MFN applied tariff (excluding alcohol and tobacco) of 30 percent. The government Negotiations between the Central Africa group, to is particularly interested in reviving the coffee sector, which Gabon belongs, and the EU towards a full for which output reached a peak of about 4,000 tons Economic Partnership Agreement (EPA) could not be in 1976 but fell to about 200 tons in 2005.3 There is completed prior to the December 2007 deadline, and however little room for increasing tariff protection as Gabon opted not to sign a bilateral “interim� the country’s trade policy space, as measured by the agreement with the EU. As a result, the preferences wedge between bound and applied tariffs (the under the Cotonou Agreement elapsed, and now overhang), is only 3.6 percent. Regarding its Gabon’s exports, which are not those of a least commitment to liberalizing services trade, Gabon developed country, may benefit only from lower preferences under the General System of Preferences (GSP) scheme. The country continues to negotiate a comprehensive EPA with the EU as part of the Central Africa group. Unless otherwise indicated, all data are as of August 2009 and are drawn from the World Trade Indicators 2009/10 Database. The database, Country Trade Briefs and Behind the Border Constraints Trade-at-a-Glance Tables, are available at Gabon remained in the bottom 20 percent of http://www.worldbank.org/wti. international business environments in 2009, being If using information from this brief, please provide the ranked 158th out of 183 countries in the Ease of Doing following source citation: World Bank. 2010. “Gabon Business index. In terms of the extent of trade Trade Brief.� World Trade Indicators 2009/10: Country Trade facilitation in the country, Gabon scores 2.1, on a scale Briefs. Washington, DC: World Bank. Available at of 1 to 5, on the Logistics Performance Index (LPI), http://www.worldbank.org/wti. trailing both the SSA (2.35) and upper-middle-income World Trade Indicators 2009/10 Gabon Trade Brief (2.85) group averages. It ranks 134th (out of 150) in the 2007, but are expected to contract again by 7.9 percent world and 34th (out of 39) in the SSA region (with in 2009. South Africa leading the regional group). Among the LPI subcategories, the country’s best performance was in lowering domestic logistics costs while its weakest Notes performance was in the ease and affordability of 1. TTRI calculates the equivalent uniform tariff that arranging international shipments. would keep domestic welfare constant. It is weighted by import shares and import demand elasticity. Trade Outcomes 2. WTO 2007. 3. WTO 2007. Real trade growth decelerated to 5.8 percent in 2008 4. African Economic Outlook 2009. from 11.5 percent in 2007, and is expected to turn 5. MA-TTRI calculates the equivalent uniform tariff of negative in 2009, with trade falling by 0.1 percent. trading partners that would keep their level of imports Imports increased by 13.2 percent, a slowdown from constant. It is weighted by import values and import the growth rate of 22 percent in 2008, and growth is demand elasticities of trading partners. forecast to slow down even further to 2.6 percent in 6. African Economic Outlook 2009. 2009. Despite the use of new technology at old wells and extraction from marginal wells picking up (made profitable by rising oil prices), crude oil output fell marginally from 12.13 million tons in 2007 to 12.06 References million in 2008.6 Exports were therefore unable to maintain the positive growth of 4.2 percent in 2007, African Economic Outlook. 2009. Gabon. African falling by 0.2 percent in 2008, and are expected to Economic Outlook. May 27, 2009. . Europa. 2009. “Africa, Caribbean, Pacific—Regional In nominal terms, trade growth went up slightly to an Negotiations of Economic Partnership Agreements.� estimated 19.1 percent in 2008 from 16.6 percent in Europa. June 2009. . 2007 to an estimated 15.3 percent in 2008, while The Economist Intelligence Unit (EIU). 2009. “Country export growth accelerated from 15.2 percent in 2007 Report—Gabon.� EIU. July 2009. . grew at an impressive estimated rate of 21.4 percent in World Trade Organization (WTO). 2007. “Trade Policy 2008, up from 15.8 percent the year before, but this Review—Gabon.� WTO. December 5, 2007. performance is not expected to be maintained in 2009, . percent. Services exports recovered in 2008, growing by an estimated 4 percent after falling by 2 percent in