WORLD TRADE ORGANIZATION ORGANISATION MONDIALE DU COMMERCE WT/TPR/M/233/Add.1 ORGANIZACIÓN MUNDIAL DEL COMERCIO 14 October 2010 (10-5290)
Trade Policy Review Body Original: English/ 14 and 16 September 2010 anglais/ inglés
TRADE POLICY REVIEW THE GAMBIA Record of the Meeting Addendum Chairperson: H.E. Mr. Bozkurt Aran (Turkey)
This document contains the advance written questions, and replies provided by The Gambia.1 ______
Organe d'examen des politiques commerciales 14 et 16 septembre 2010
EXAMEN DES POLITIQUES COMMERCIALES GAMBIE Compte rendu de la réunion Addendum Président: S.E. M. Bozkurt Aran (Turquie)
Le présent document contient les questions écrites communiquées à l'avance et les réponses fournies par la Gambie.1 ______
Órgano de Examen de las Políticas Comerciales 14 y 16 de septiembre de 2010
EXAMEN DE LAS POLÍTICAS COMERCIALES GAMBIA Acta de la reunión Addendum Presidente: Excmo. Sr. Bozkurt Aran (Turquía)
En el presente documento figuran las preguntas presentadas anticipadamente por escrito, junto con las respuestas facilitadas por Gambia.1
1 In English only./En anglais seulement./En inglés solamente.
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REPLIES PROVIDED BY THE GAMBIA TO ADVANCE QUESTIONS
UNITED STATES
Question 1: Page 11, Paragraph 3: The Secretariat Report states: "A special Commercial Division was established in 2004 at the High Court to deal exclusively with commercial matters, in order to avoid delays encountered in the normal court system. However, due to capacity constraints, this goal has not been achieved and long delays remain in reaching judgement, and its execution, in commercial cases. An Alternative Dispute Resolution system was established in 2008 for settlements out of court, but no details have been made available of how this is working". What steps is The Gambia taking to improve the prosecution of commercial matters in light of the challenges facing the Commercial Division? In the spirit of transparency, please provide details on how the Alternative Dispute Resolution system is working.
Answer:
The Alternative Dispute Resolution System is governed by the Alternative Dispute Resolution Act 2005. The System is managed by a secretariat which is independent in the performance of its functions. It deals with conciliation, arbitration and mediation. The Arbitration Tribunal is composed of a number of arbitrators, determined by the Parties. In the absence of an agreement on the number of arbitrators, the Act provides that "the number shall be three in the case of International Arbitration and one in any other case". The parties also have the right to agree on the procedure to be followed by the Arbitral Tribunal and in the absence of an agreement, the tribunal shall conduct the Arbitration in the manner it considers appropriate.
Question 2: When does The Gambia anticipate notifying its Customs Valuation Legislation to the WTO Committee on Customs Valuation?
Answer:
The Gambia has changed its legislation on valuation of goods by incorporating the WTO Valuation on imported goods, excisable goods, and goods for export in its new Customs and Excise ACT, 2010. In this new legislation, the value of imported goods will be determined in accordance with the provisions of the WTO Agreement on Customs Valuation. The WTO Committee on Customs Valuation will be informed of this development before the end of 2010.
Question 3: The Secretariat notes that "The Gambia, with other ECOWAS Member States, is negotiating the introduction of a fifth tariff band, at 35%, based on harmonization of national lists submitted by members, and of national exceptions to the ECOWAS Common Tariff". What is the tariff harmonization implementation schedule? When does The Gambia plan to fully implement the CET?
Answer:
The introduction of the ECOWAS Common External Tariff (CET), adopted in 2006 by the ECOWAS Authority is an ECOWAS programme towards the establishment of a Customs Union. The Gambia started aligning its tariff to the CET in 2006 as part of the harmonisation process. As part of the harmonisation process, the ECOWAS Member States also identified and submitted to the ECOWAS Commission the list of products (classified as Type B list) for which they wish to negotiate and agree under the CET. From these negotiations the need for a fifth band emerged and was adopted by the ECOWAS Authority in 2008 at 35%. Each ECOWAS Member State has also identified and submitted to ECOWAS a list of products proposed for classification under the fifth band.
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The ECOWAS Member States are currently negotiating, at the regional level, both the Type B lists and products for classification under the fifth band under the CET. The Gambia's full implementation of the CET is tied to the completion of the negotiations under the CET.
Question 4: The Secretariat states that "Imported soft drinks and imported beer are subject to higher rates than the corresponding domestic items". Are these excise taxes within the limits of The Gambia's tariff bindings?
Answer:
The Gambia has bound the importation of soft drinks and beer at 110% in its WTO Schedule of Commitments. The introduction of excise tax of D 5 per litre for soft drink and D 100 per litre for beer in 2010, converted to percentages, would still be within the limits of The Gambia's tariff bindings.
Question 5: According to the Secretariat, "The value of imported goods for sales tax purposes is the value including all duties and charges paid on import into The Gambia, and including the value of any incidental services such as packaging, insurance, transportation, guarantee costs or any other services giving rise to commission". Please explain The Gambia's application of sales taxes to imported goods in light of Article III of the GATT.
Answer:
The Gambia's application of sales tax is in conformity with Article III of GATT. The Gambia's application of sales taxes on goods imported into the country is based on the application of the designated rate on the sales tax value which includes all duties, charges, and incidental services connected to the importation.
Question 6: Page 32, Paragraph 31: The Secretariat Report states that provisional measures may be taken 60 days after the start of any investigation. Please confirm that provisional measures may not be imposed before the advisory committee finds, at least on a preliminary basis, that the goods are dumped or subsidized and that these dumped or subsidized imports are causing injury, threat of injury or material retardation of an industry in The Gambia.
Answer:
The Gambia confirms that provisional measures will not be taken before findings of the Advisory Committee as the measures are to be based on the preliminary findings of the Committee that the goods are dumped or subsidized and that the dumped or subsidized imports are causing injury or threat of injury that can materially retard established industries in The Gambia.
Question 7: Page 32, Paragraph 32: The Secretariat Report describes how the Gambian Authorities will determine the amount of the antidumping or countervailing duty to be imposed. Please explain this provision in light of the requirements of Article 2 of the WTO Agreement on Antidumping, which addressed the determination of dumping, or with the Articles 1, 2, 3 and 14 of the Agreement on Subsidies and Countervailing Measures, which relate to the definition and identification of actionable subsidies and the calculation of the benefit there from.
Answer:
The Gambia Customs and Excise Act 2010 has provisions for the imposition of an antidumping or countervailing duty, where the Minister is satisfied on the findings of the Advisory Committee that dumped or subsidised product are causing injury or threat of injury that can materially
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retard established industries in The Gambia. The Act provides that the antidumping duty or countervailing duty shall not exceed the dumping margin, which is in line with the Provision of Article 2 of the WTO Agreement on Antidumping.
Question 8: Page 32, Paragraph 34: The Secretariat Report states that the Minister may impose on imports "such conditions or rates of duty (…) deemed necessary to protect The Gambia's interest where the country of importation practices unfair or restrictive trade practices on Gambian goods exported to that country". Please explain such action in light of The Gambia's WTO obligations. Has this provision ever been invoked? If so, please explain the circumstances under which duties or other "conditions" have been imposed on imports. In those instances, what were the "unfair or restrictive" trade practices by the country to which Gambian goods were exported?
Answer:
The unfair trade practices referred to are mainly export subsidies that cause injury or threaten to cause injury to producers of the exported similar products.
The Gambia has not yet invoked this provision on any imports.
Question 9: Pages 33-34, Paragraphs 36-40: Please explain The Gambia's import prohibitions as well as its conditional and licensing restrictions. How and on what basis are products assigned to these lists?
Answer:
The Eighth Schedule of The Gambia's Customs and Excise Act 2010 has clearly specified goods that are subject to outright prohibitions and those that are subject to conditional restrictions by obtaining the necessary authorization from the relevant Authorities. Therefore, all importations into The Gambia have to be confirmed to satisfy the necessary legal restrictions if they fall under the Eighth Schedule.
Question 10: Page 36 paragraph 47 of the Secretariat report states that the "National Codex Sanitary and Phytosanitary Committee, Food Control Advisory Board" are responsible for enforcing the Food Act 2005 and development of measures for animal, plant, and food protection. Please explain how these three bodies ensure that such measures are based on science and comply with international standards as opposed to regional standards such as the EU's?
Answer:
These three bodies were established by the Food Act 2005 with clearly defined mandates and responsibilities and are very much complementary in their functions.
The Food Control Advisory Board (FCAB) oversees the implementation of the Food Act 2005 and has only an advisory role. It is also responsible for the appointment of the Members of the National Codex Committee and the Compliance Committee. As such these two bodies can be considered as Committees of the Board.
The National Codex Sanitary and Phytosanitary Committee (NCSPSC) in accordance with the Food Act 2005 is primarily responsible for the preparation and/or adoption of food standards and sanitary and phytosanitary measures that are compliant with international norms. In the case of food standards Codex Standards and recommended Codes of Practices are used as the bench mark for the work of the NCSPSC in these areas. For sanitary measures OIE recommended standards Codes of Practice are used as bench marks. For phytosanitary standards measures, IPPC standards and Codes
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of Practice are used as bench marks. As a matter of principle, the NCSPSC will only resort to the use of regional standards as reference where international standards either do not exist or cannot be accessed by the Committee. The use of science-based risk assessment by the NCSPSC has been pretty much minimal given the lack of adequate competence by the Committee Members in this discipline. Furthermore the Food Act 2005 has been silent on the use of science based risk assessment. However, this aspect has been remedied in the draft Food Safety and Quality Bill 2010.
Given that we are bench marking with internationally recognized standards (Codex, OIE, IPPC) means that the measures taken are based on science.
The Compliance Committee is entrusted with the powers of ensuring that the Competent Authorities responsible for enforcing the Food Act and its attendant Regulations carry out their functions properly. Furthermore, it ensures the coordination of the activities of the Competent Authorities, resolve conflicts existing or that may arise in the course of the exercise of the food control functions carried out by the Competent Authorities. It also resolves gaps and addresses overlaps.
Question 11: Page 37, paragraph 50 of Secretariat report states that a new Food Safety and Quality Bill covering all food products for human and animal consumption has recently been drafted". What is the status of this bill and any corresponding implementing regulations?
Answer:
The Bill has been subjected to a national validation workshop by stakeholders including government, industry, primary producers, consumer organizations and international organizations. The draft Bill was also to the WTO for the notification of WTO Members. It is now with the Ministry of Justice where the legal drafting is being done. Additionally draft Regulations for Fishery Products 2010 are being formulated and expected to be finalized by end October 2010.
Question 12: Page 38, Paragraph 54 and page (ix) Paragraph 25: The Secretariat Report states: "Imports of cereals, pulses or legumes, including rice, require phytosanitary certificates issued by the national plant protection service of the country of origin, and fumigation certificates issued by the exporting company or an approved company". Are these phytosanitary import requirements based on a pest risk assessment?
Answer:
Yes, these Phytosanitary Import Requirements are based on a pest risk assessment.
Question 13: Page 38, Paragraph 55 and page (ix) Paragraph 25: The Secretariat Report states: "The Minister of Health may, at any time, issue regulations providing that food items may not be imported unless manufactured in accordance with specified standards. In recent months, action has been taken against consignments of chicken and of eggs that were manifestly unhealthy". Have the specified measures been notified to the WTO and are they consistent with international standards? Please identify the international standards upon which this action has been taken.
Answer:
The WTO was not notified. The products were manifestly deteriorated. Based on provisional risk assessment, precautionary measure was taken to declare the products unsafe for human consumption in accordance with the provisions of the Food Act 2005.
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Question 14: Page 39, Paragraph 60: Are the Gambia's export duties applied on a MFN basis? At the time of The Gambia's last TPR in 2004, there was a 10% export duty from which European Union countries were exempted. Has this changed?
Answer:
The Gambia applies export duty only on waste and scrap of precious metals which are taxed at 5% on MFN basis.
Question 15: Pages 44-45: Does the Gambia have criminal penalties for cases of trademark counterfeiting? If not, why not? If so, what are the penalties?
Answer:
The Industrial Property Act prescribes the punishment of five thousand Dalasis (equivalent to US$185) or imprisonment of six months for infringement of a trademark.
Question 16: Pages 44-45: Does the Gambia have a border enforcement mechanism to combat trademark counterfeiting and copyright piracy? If not, why not? If so, what is the enforcement mechanism?
Answer:
The Gambia currently does not have enforcement mechanism to combat trademark counterfeiting and copyright piracy along her borders. This is mainly due to lack of capacity and resources to effectively monitor trademark counterfeiting and copyright piracy. The Gambia will explore the possibility of engaging development partners on building capacity in this area.
Question 17: Page 57, Paragraphs 60 and 61: The Secretariat describes 11 areas of action that The Gambia proposed in 2008 be undertaken over a 5 year period (MSME) to mitigate the "many constraints to the development of" micro, small and medium enterprise sector. Included in the 11 areas is "improvement of social protection, safe working conditions and financial security". How has The Gambia addressed the need, as the Secretariat states, for "a substantial degree of cooperation and coordination among a large number of government ministries and agencies, private sector operators, and external assistance providers" to be able to succeed in all 11 areas? Could The Gambia clarify what needs to be improved with respect to "safe working conditions" and the steps the government is taking to address safe conditions for workers in the MSME?
Answer:
These 11 areas proposed in the Action Plan of the MSME policy document are meant to implement the proposed strategies outlined in the policy to address the major constraints impeding the growth and development of the MSME sector. The review of the MSME sector has highlighted 11 major issues that are inhibiting the development of the MSME sector In The Gambia. Social protection, safe working conditions and financial security, are among the MSME policy objectives that will be pursued during the course of the programme implementation. The Government intends to address these elements in the following ways: a. Support the service providers in promoting social protection and decent work principles amongst MSMEs in accordance with principles contained in the Labour Act of 2007. b. Encourage MSMEs to practice Mutual Health Insurance Schemes in their operations through Small Business Associations (SBAs), workers confederations and trade unions.
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c. Explore means for Government and stakeholders to provide financial guarantee schemes for MSMEs in the form of insurance for some specific aspects of their operations. This will encourage MSME operators to develop the attitude and culture of risk-taking. d. Study practical social protection packages suitable for MSMEs in The Gambia. e. Introduce applicable social protection programme packages to MSMEs and sensitise them on their adoption into their operations. f. Organise study tours for selected entrepreneurs to gain practical knowledge and experience on how social protection schemes are organised and managed within MSMEs. g. Create linkages between MSMEs, large scale enterprises, including financial institutions and insurance companies by organising thematic fora to discuss a great number of potentials that exist in partnerships between players in different levels of the economy, who must all be seen complementing each other's effort. h. Conduct social marketing services, in other words, mass media promotional activities to raise public awareness about good practices and experiences in social protection and decent work environment for MSME workers. Such experiences can be drawn from several parts of the world including Senegal and Ghana.
For the effective implementation of the MSME policy programmes, the Government has recently established a new agency called the Gambia Investment and Export Promotion Agency with a specialised department on enterprise support and development, which will be providing the business development services. The Agency will coordinate and monitor the implementation of the Action Plan. It will work with various ministries, departments and agencies, private operators and external assistance providers in supporting the development of MSMEs. The Institution will also be assisted by a Technical Advisory Council, which comprises of all the key stakeholders. Finally, with the MSME policy and an Agency established to operationalise it, many of the MSMEs operating in the informal sector would now be formalised and therefore would be able to comply with various laws, including labour laws.
Question 18: Page 67, paragraph 3: According to the Secretariat,in late 2009, the government accessed funding under the Enhanced IF (EIF) Trust Fund which "provides an opportunity to enhance trade policy formulation in the Gambia and to ensure that trade is mainstreamed at an operational level in the successor document to the current national development strategy which expires in 2011". How does The Gambia plan to build on the opportunity that the EIF project offers to ensure that trade is mainstreamed into The Gambia's national development strategy?
Answer:
In the process of implementing the EIF Programme, provision is made to support the mainstreaming of trade in the Poverty Reduction Strategy Paper of The Gambia. Currently a proposal has been made for appropriate institutions to embark on the mainstreaming process. In this process, it is expected that trade and trade-related concerns are featured adequately in the national development budget so as to enhance Aid for Trade ODA resources.
Question 19: Page 71, paragraph 27: According to the Secretariat, "Gambia has not requested assistance from the Trade Facilitation Trust Fund, set up within the context of the DDA and managed by the WTO Secretariat, to conduct a national self assessment of its trade facilitation needs and priorities". In section "3.2 Trade Facilitation," the Government Report (WT/TPR/G/233) states that "The Customs and Excise Act 2010 (...) should (...) allow the possibility of self assessment". Now that
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The Trade Facilitation Needs Assessment Programme, which was officially launched in September 2007, has ended what next steps is the government planning to undertake self assessment and address its trade facilitation needs? How will The Customs and Excise Act 2010 allow the possibility of self assessment?
Answer:
The self assessment referred to in the government report is in relation to the new ASYCUDA++ that has created a window to make it possible for the operators to assess their tax liabilities. The training of operators on self assessment of their tax liabilities as well as Customs officers is part of the ASYCUDA++ Project, which is currently being implemented. On matters relating to trade facilitation needs particularly as it relates to customs, Government will continue to seek the support of the World Customs Organisation as well as development partners both at the multilateral and bilateral levels.
INDIA
Question 20: Secretariat report Para 7. "The Gambia Incorporated: Vision 2020", adopted in 1996, remains the Government's overall guiding development policy document. It calls for the transformation of The Gambia into "a dynamic middle income country" by 2020. We would like the Gambia to share progress achieved till 2009 in meeting objectives of this document.
Answer:
To achieve the objectives outlined in the Vision 2020 the Government of The Gambia has come up with a Poverty Reduction Strategy Paper (PRSP), which is a medium term strategic framework covering a 5 year period for the implementation of the country's development programmes. Thus PRSP II also sets the national framework for reducing poverty and attaining the Millennium Development Goals. The most recent PRSP assessment report, which was one of the series of such assessments done in the past, has highlighted achievements and shortfalls in the implementation of the PRSP. The report highlights the following achievements:
− The Gambia has been able to maintain sustained macroeconomic stability from 2003-2008. The rate of economic growth continue to be above the PSRP target of 4.5% with actual growth rates of 6.3% and 6.1% for the years 2007 and 2008 respectively.
− The inflation target of 5% has been achieved from 5.4% in 2007 to 4.5% in 2008. Despite the decline in the fiscal position from a surplus of 0.5% of GDP in 2007 to a deficit of 2.2% of GDP in 2008, the actual deficit still remains within the PRSP desired target of 3.1%.
− The reduction of the domestic debt to GDP ratio has been a key objective in the PRGF agreement with IMF. This target has been consistently met over the years with declines in outturns from 28.4% in 2007 to 25.4% in 2008, compared to targets of 28.5% and 26.5% respectively.
− Real GDP at constant market price was projected to decline from 6.3% in 2008 to 5% in 2009.
− The productive sectors, especially agricultural sector performed significantly better in 2008 than 2007 mainly due to the good rains experienced in 2008, as The Gambia's agriculture is rain-fed. Rice growing was particularly successful due to the introduction of the NERICA rice.
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− In terms of tourism, there has been an improvement in the total number of tourist arrivals from 124,800 in 2006 to 142,626 in 2007, which further increase to 146,759 in 2008.
− The education sector has registered significant gains at the basic and higher levels with enrolments increased from 43% to 65% in 2008.
− There has been a significant expansion in both primary and secondary health care services in recent years leading to 85% physical access to basic health services. In addition, over 85-97% of the population are within 3 to 7.5km travelling time to basic health facility and primary health care.
− There has been decline in the child mortality rate from 159 per 1,000 to 93 per 1,000 up till 2006. The target of reducing under-5 mortality rate to 133 per 1,000 has been met; in 2009, under-5 mortality rate is at 128 per 1,000.
− Increasing access to safe drinking water has been registered.
− Industry has increased its contribution to GDP to 12.5%.
Although the assessment of the PRSP II (and MDGS) as the national development strategy framework had indicated some success, it had largely failed to impact significantly on poverty, particularly income poverty leading to high rate of rural-urban drift, which has also affected urban poverty. The macroeconomic stability achieved over the years could not lead to increase private investment, particularly in sectors that are labour intensive to reduce income poverty. To this end, the Government of The Gambia have started re-thinking of alternative development strategy that would lead to a broad based growth and employment where the poor would share the benefit, and hence the programme for accelerated growth and employment (PAGE), before the end of the PRSP II programme circle 2007-2011.
Question 21: Secretariat report, Para 39. A comprehensive Trade Policy Action Plan has been drafted and is in the process of adoption. What is the time frame by when the Trade Policy Action programme will be adopted?
Answer:
Following the drafting of the Trade policy Action programme, it was realised that the comprehensive nature of the Trade Policy Action Plan will be difficult to implement in the short to the medium term as most of the activities fall outside the mandate of the Ministry of Trade. In the mean time, the Ministry of Trade, Regional Integration and Employment will prepare a medium term programme in fulfilment of the requirement of the EIF Tier 2 guidelines so that funding of projects will address supply side constraints to ensure consistency with the overall development objectives of The Gambia.
Question 22: Secretariat report, Para 3. Factors that have been identified as hindering business and investment include: the current tax structure: inadequate infrastructure; weak judicial system; high real interest rates; and lack of access to credit. In addition, future growth is vulnerable due to high levels of public debt; this would be exacerbated if there is a financing shortfall or a worsening of the terms of trade. We would like The Gambia to elaborate steps it proposes to take to meet these challenges.
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Answer:
The Government of the Gambia is currently reforming its tax structure by lowering taxes and broadening the tax base. For example in 2010 fiscal year, the government reduced the corporate tax by 2% and this may continue if the revenue response is positive. The Government had engaged the IMF to review its tax policy last year and the recommendations of the Fund are being considered by the government. The Government has also embarked on a nationwide road construction and a good number of roads have already been completed. 90% of the Western Region's and the North Bank Region's feeder roads projects were completed. With the proliferation of commercial banks in the country, access to credit is improving. Recently, there has been a gradual reduction of interest charge on loans by the commercial from 35% down to 27%. In addition, the existence of a large number of micro-finance institutions also improves access to credit. The recent reforms in the financial system initiated by the Central Bank such as the introduction of a Credit Reference Bureau have contributed to improving access to credit.
The Government of the Gambia has recently negotiated a Growth and Competitiveness Project with the World Bank, which will be presented for Board approval in September 2010. The project has among its three components one on improving the Business Environment, which includes legal amendments to the Companies and Business Registration Acts and other relevant legislations to simplify the procedures and reduce cost and time taken to start and operate a business, design and operation of an integrated secured lending system to support access to finance especially for MSMEs, and tax administration reform to complement support for the implementation of tax administration reforms through technical assistance and capacity building.
Question 23: Secretariat report, Para 45. In 2007 it was reported that only five out of seven existing plants were in operation due to shortages of fish, high prices and irregular supplies of electricity, and high cost of finance. The Gambia is requested to provide latest status of the fish processing plants.
Answer:
There are only 20 locally registered fishing companies; only 6 factories have so far been certified to export their products to European Union Countries. In 2010, only six (6) fish processing plants were approved for processing and exports, but only five (5) are in operation. Of the five plants, four (4) depend on fish capture and one (1) on farmed shrimps.
Furthermore, two (2) of the four processing plants are operating continuously while the other two operate as and when the demand is there. The shrimp farm plant operates seasonally depending on the harvest time. The reasons for poor performance by some are due to capital investment, high cost of finance and management as the cost of electricity has gone down for the fish processing plants.
Question 24: Secretariat, Para 27. Gambia has not requested assistance from the Trade Facilitation Trust Fund, set up within the context of the DDA and managed by the WTO Secretariat, to conduct a national self-assessment of its trade facilitation needs and priorities. Is there any reason that The Gambia has not requested this assistance and is The Gambia considering any rethink in this regard?
Answer:
There is no reason why The Gambia has not requested assistance from the Trade Facilitation Trust Fund to conduct a national self assessment of its trade facilitation needs and priorities. However, The Gambia will request for support if this assistance is still available bilaterally and/or multilaterally to conduct a national self assessment of its trade facilitation needs and priorities.
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EUROPEAN UNION
Question 25: WTO Secretariat's Report, page 32, para 27: The report notes that "[i]n addition to the schedule of excise duties, excise taxes are charged at specific rates on a number of items". Could The Gambia explain the difference between excise duties and excise taxes?
Answer:
Excise duties are internal taxes levied on domestic manufactures intended for the domestic market, while excise tax is a selective tax levied on imports into the country.
Question 26: The secretariat report adds that "[i]mported soft drinks and imported beer are subject to higher rates than the corresponding domestic items". This constitutes a discriminatory treatment between imported and domestic items which is contrary to the non-discriminatory nature of WTO rules. How does The Gambia plan to abolish this discriminatory treatment?
Answer:
The Gambia's application of excise tax is to help implement policies and programmes designed to raise general standard of living by supporting the growth of local industries for employment generation and poverty reduction. This is believed to be in line with Article XVIII of GATT on government assistance to economic development and The Gambia will notify the WTO on this matter in due course.
Question 27: The report also notes that "[i]n addition, the Gambia imposes an environmental tax on un-manufactured tobacco at D 75/kg; tobacco products at D 10/kg and used vehicles at D 1,000 per unit". Could The Gambia give more details on how it establishes the tax base for this tax?
Answer:
The environmental tax on tobacco products and used vehicles is based on an internal regulation meant to help discourage the consumption of tobacco products and the importation of old vehicles with environmental hazards.
Question 28: WTO Secretariat's report, page ix, para 25. The report indicates that "[i]mports of cereals, pulses or legumes, including rice, require phytosanitary certificates issued by national plant protection service of the country of origin, and fumigation certificates issued by the exporting company or an approved company". Could The Gambia confirm whether information on import requirements for plants and plant products as well as a list of quarantine pests will be made available, i.e. on the IPPC website?
Answer:
Yes, the information on import requirement for plants and plant products as well as list of quarantine pests will be available on the IPPC website.
Question 29: Could The Gambia explain which kind of fumigation certificates would be required? In case of methyl bromide, has Gambia considered the recommendations provided in the Montreal Protocol and by IPPC to restrict/stop the use of methyl bromide?
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Answer:
The fumigation certificate required is phostoxin tablets which is used for fumigation in The Gambia. Methyl bromide is banned by the Gambia as one of the dirty dozen. Hence the Gambia is line with the recommendations provided in the Montreal Protocol and by IPPC to stop the use of methyl bromide.
CANADA
Question 30: Secretariat report Section 2, Sectoral Performance: 2.2 Tourism: paragraph 26, page 9. The Tourism Development Master Plan came into effect in 2007. Is there a finite end date to this plan? If not, how will it determine success of the Plan (i.e. what are the benchmarks?)
Answer:
The Tourism Master Plan is being implemented over the short, medium and long term and would take up to 2020. The Master Plan has an implementation matrix with time bound activities. For example some marketing activities could be realised in the short run whereas the establishment or creation of new Tourism Development Area's (long term activity) all over the country could extend towards the end of the implementation period.
Question 31: Secretariat report, Section 2: Sectoral Performance: 2.3 Transport: paragraph 31, page 10. It is said that a number of road projects have been commissioned to rehabilitate transit routes, with the support of the EU. Will future infrastructure and road projects be open to foreign tender, or will it continue to progress based on Aid for Trade and other country support?
Answer:
The European Union is currently funding one road project in The Gambia. This project involves the rehabilitation and reconstruction of Barra-Amdallai, Mandinaba-Seleti, Soma-Basse, and Basse-Velingara roads and the Trans-Gambia Highway. In accordance with EDF regulations (Practical Guide to EDF Contracts and General Regulations) and the Financing Agreements signed between the EU and The Gambia (Ministry of Finance and NAO), the works tender for the execution of this project was done through an international open tender procedure. Companies from African, Caribbean and Pacific countries and the European Union countries were eligible to participate in this tender. It is expected that future road projects funded by the EU will be done in accordance with same EDF regulations.
Question 32: Secretariat report, Section 2: Sectoral Performance: 2.3 Transport: paragraph 32, page 1. Under the described Ports Master Plan developed in 2002 and described in this paragraph, is this project also being supported by Aid for Trade and other Government support (such as the EU and US)?
Answer:
Two studies were conducted for the implementation of two projects under the Ports Master Plan. These are the Basic Yard Extension Phase I and the Rehabilitation of North and South Terminals. Both studies were financed by the Republic of Korea through the African Development Bank to a tune of US$475,214. Apparently there is no available funding either through support by Aid for Trade or other Governments for the implementation of the different projects under the Ports Master Plan.
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Question 33: Secretariat report, Sectoral Policies: Paragraph 38, page xi. It is described that "efforts are being made to expand the tourist season to the European summer". Are other markets being targeted as well beyond the EU for attraction of tourists?
Answer:
Western Europe is the traditional source market for tourist to The Gambia. However, there are constructive efforts to lure tourists from Eastern Europe (the Poles, Czechs, Russia). Sub-regional tourism is also high on the agenda as The Gambia has begun to attract visitors from Nigeria and other countries in the sub-region who come for holidays, conferences etc.
JAPAN
Question 34: According to the Government report, Gambia will continue to pursue tax reforms, which will include further simplification of the tax system, gradual reduction of corporate and income tax rates, and elimination of exemptions and discretionary investment incentives, in order to increase revenues. Please provide Gambia's estimation on the expected change in revenues and the overall impact of these reforms on the fiscal policy.
Answer:
The main objective of the tax reform, which includes the simplification of the tax system and the gradual reduction of the corporate tax (which is still among the highest in the sub-region), is to improve competitiveness of the business environment and broaden the tax base. These measures would have the long-term effect of increasing the revenue for government particularly as more investment is attracted and the tax base broadened.
As part of her commitment to introduce a comprehensive tax reform in the coming years, the corporate tax was reduced, starting with a 2% reduction from 35% to 33% in 2010. However, this is expected to continue gradually in the future.
The Government is yet to implement the reduction of the income tax rate and the elimination of exemptions and discretionary investment incentives in order to increase revenues. Therefore, the overall impact in revenue changes due to the proposed reforms cannot be fully established now.
Question 35: According to the Secretariat's report, Page 13, paragraph 8, a new Customs and Excise Act was enacted in April 2010, whose objectives are to unify and simplify the custom procedures, to ensure the equality of the tariff collection, and to implement fairness and transparency. Please provide the details of the law with regards to these aspects.
Answer:
The Customs and Excise Act 2010 promotes simplification of Customs procedures by making provisions for the use of information technology in Customs procedure. These provisions make it possible for the filling and submission of electronic format of customs declarations, cargo manifests and other information presented for the purpose of complying with Customs formalities. The Act also enables the Commissioner General to confer accredited user status on any applicant who meets the necessary requirements. The accredited user benefits from simplified procedures and documentation including the submission and partial processing of customs declarations in advance of the arrival of the goods.
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On fairness and transparency, the new Act makes provisions for the establishment of a Customs Tribunal, which will hear appeals on disputes including disputes relating to appraisal of value of goods by Customs. The Act also makes provisions for streamlining the duty exception regime. The Act also takes into account some key relevant regional and international conventions and protocols that The Gambia is signatory to, including the WTO Agreement on Customs Valuation.
Question 36: Page 13, paragraph 8, Secretariat report, we have learned that the Investment and Export Promotion Agency will be established. Please provide information on this new agency, including its mission, organization and the Law which establishes the Agency.
Answer:
The Gambia Investment and Export Promotion Agency (GIEPA) was established by the Government of The Gambia on 1st July 2010 following the enactment of the Gambia Investment and export Promotion Act 2010. The Agency replaces the Gambia Investment Promotion and Free Zones Agency (GIPFZA) and retains the core functions of Investment Promotion in addition to the functions of Business and Export Development as well as Enterprise Support and Development. The Agency also has a Corporate Services Department, which comprises of different specialised units including Admin and Finance, Information Technology, Monitoring and Evaluation and legal and compliance services. The Agency is headed by a Chief Executive Officer (CEO) who is assisted by four directors while the Board of Directors provides the policy guidance.
REPUBLIC OF KOREA
Question 37: Secretariat Report, pages 49-50, paragraphs 16 and 21. Korea notes that The Gambia's export of groundnuts, one of the country's principal exports, has recently decreased dramatically. The further privatization of the Gambia Groundnut Corporation (GGC) can be considered as one of the ways to revitalize the groundnut industry and help recover the export competitiveness of the Gambian groundnuts. What are the difficulties The Gambia has been facing in privatizing the GGC? Does the Gambian Government have any further plans to privatize the GGC?
Answer:
The Government of The Gambia initially invited bids for the privatization of GGC. There was only one company who tendered. The said company was deemed not credible enough to take ownership of GGC. Consequently Government withdraws the bid tendered by the company.
A Road Map Study financed by the European Union through the World Bank is currently in progress to assess the productivity and quality of the groundnut subsector, and also assess the critical asset base as well as financial and technical audit of GGC. Once this study is completed and submitted, the Government will then take an informed decision whether to continue with its privatization plan or withdrew the plan.
Question 38: Secretariat Report, page 63, paragraph 96. Given the unique shape of the Gambian territory, the Gambia River, which runs through the centre of the country, seems to be a potentially efficient mode of transport for both freight and passengers. However, river transport in The Gambia is relatively underdeveloped, as road transport remains the preferred option. What is The Gambia's vision for developing inland river transport?
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Answer:
The Government of the Gambia is aware of the potential of the River Gambia as a viable alternative to road transport both for the movement of goods and passengers. Therefore the Government in its long term vision seeks to encourage investment in river transportation. This will include investments in the construction of associated infrastructure, such as harbours and jetties along the river. The Government also seeks to encourage private investment in the river transportation.
TURKEY
Question 39: Report by the WTO Secretariat Page 21, preferential agreements and arrangements. Could The Gambia kindly elaborate on its plans and its expectations for future trade relations in the regional context?
Answer:
The Gambia is committed and plans to further strengthen bilateral ties with all the countries in the sub-region to further cement the gains already achieved by ECOWAS in the economic integration. The Government has ratified almost all the ECOWAS Protocols and Conventions and is fully implementing all the ECOWAS programmes meant to bring the economies of the ECOWAS Member States closer and improve a wider access of products of the Member States to the ECOWAS market. It is expected that ECOWAS will attain its objective of a Custom Union.
Question 40: Secretariat report, page 5, Extractive Industries. Could The Gambia kindly provide information on its regulations regarding foreign investment in mineral exploitation?
Answer:
The Quarries and Mines Act, 2005 regulate the exploitation of mineral resources in The Gambia through the Geological Unit responsible for supervising, monitoring and regulating mining and quarrying operations. The Quarries and Mines Act, 2005, together with the GIEPA Act, 2010, made provisions for foreign investment in mineral exploitation by issuance of mining licenses. The license holder being a national or foreign is subject to complying with the conditions laid in Act. Essentially, the GIEPA Act, 2010 also has provisions related to the granting of investment incentives in the priority sectors of the economy including mineral exploration.
BRAZIL
Question 41: According to the Report by the Secretariat, page 22, paragraph 42, as a least developed country, The Gambia benefits from non-reciprocal duty free preferential treatment from many industrialized countries under the GSP, and under related schemes like the European Union's EBA initiative. "However, like many LDCs, The Gambia is still struggling to benefit effectively from such schemes, due to supply side constraints". Brazil would appreciate further information on the "supply side constraints" that The Gambia faces in trying to benefit effectively from non-reciprocal duty free preferential schemes and what are the reasons.
Answer:
Some of the supply side constraints that the Gambia faces include the high cost of electricity and post harvest losses due to inadequate storage facilities for agricultural and fisheries products. The development of basic infrastructure and the use of appropriate technology is still a challenge for The Gambia to expand her of production for exports. Another challenge for the Gambia in benefiting from the duty free preferential schemes is meeting the SPS standards. Currently the Gambia lacks the
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necessary lab-testing equipment to certify the export of smoked seafood products. The Gambia has received alerts from the EC through its Rapid Alert System for Food and Feed on the level of Benzo(A) Pyrene in smoked seafood products from The Gambia to the EU market. The Government has advised the affected companies to stop all exports of smoked seafood products until the Fisheries Authorities in the Gambia are able to determine that smoked seafood products meet required standards in the importing countries.
Question 42: Brazil would also be interested to know what were the volume and value of The Gambia's exports under those schemes in recent years, identifying if possible the main products and market destinations.
Answer:
The Gambia has benefited from non-reciprocal duty free preferential treatment from many industrialized countries under GSP. The data in table 1 below indicate the domestic exports to these region/countries under different preferential tariff schemes.
Table 1: The Gambia's exports in 2008–09 under some GSP schemes (f.o.b. value – D '000) Country Description 2008 2009 EU Fish and fish products 57,226 29,432 Groundnuts 10,575 195,263 Vegetables and fruits 8,319 392 Cashew-nut 8,018 937 Others 3,974 51,486 Total 88,112 277,510
India Fish and fish products 827 53 Vegetables and fruits 333 Cashew-nut 39,947 68,766 Others Total 41,107 68,819
South Korea Fish and fish products 0 646 Total 0 646
Japan Fish and fish products 0 1,486 Total 0 1,486
Question 43: According to the Report by the Secretariat, page 24, paragraph 51, "The Gambia has been eligible for AGOA benefits since 2003, and has held a "textile visa" since April 2008, qualifying it for the special textile and clothing provisions of AGOA". Brazil would like to learn more about the special textile and clothing provisions of AGOA, in particular with regard to the requirements that The Gambia's exporters have to fulfil to hold a "textile visa".
Answer:
In 2006, the US President signed in to law the African Investment Incentive Act (also known as AGOA IV) which amended the textile and apparel portion of the AGOA.
This new Act accords duty-free and quota-free market access to eligible articles made in qualifying Sub-Saharan African Countries through 2015. The African Investment Incentive Act (2006) mentions the following as qualifying articles:
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− Apparel made of US yarns and fabrics.
− Apparel made of Sub-Saharan Africa yarns and fabrics subject to a cap until 2015.
− Apparel made in a designated lesser developed country yarns and fabrics subject to a cap until 2012.
− Apparel made of yarns and fabrics not produced in commercial quantities in the US.
− Certain cashmere and merino wool sweaters.
− Eligible hand loomed, handmade, folklore articles and ethnic printed fabrics.
− Textile and textile articles produced entirely in a lesser developed beneficiary country.
On top of these provisions, the Act makes a special exception for lesser developed AGOA countries which states that "until 30th September 2012 lesser developed beneficiary sub-Saharan African countries may use none USA fabrics and yarn in apparel wholly assembled in the countries subject to a cap".
The textile visa was granted to the Gambia after careful review of our laws and policies by the US Government. Individual exporters do not have to satisfy any particular requirements. The visa is granted to countries and not to individuals.
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REPLIES PROVIDED BY THE GAMBIA TO FOLLOW-UP QUESTIONS
UNITED STATES
Follow up Question to Question 15: pages 44-45: Are these penalties applied by the courts in cases of wilful trademark counterfeiting? How are these sufficient to provide a deterrent, consistently with the level of penalties applied for crimes of a corresponding gravity?'
Answer:
Constitutionally, criminal sanctions in copyright infringement do not only cover wilful conduct but also gross negligence – Section 53 Copyright Act 2004. Both wilful conduct and gross negligence are sufficient and commensurate to form intention for the offence of copyright infringement. Effectively, one would be deemed to have infringed a copyright if his/her conduct was not wilful but was enough to be grossly negligent. Further, copyright infringement is not just limited to individuals but also corporate bodies – as a principle of Common Law, corporate bodies are legal entities that have their own independent 'personalities'.
Copyright infringement, which carries three (3) years imprisonment and/or a fine of up to D 500,000 is not limited to trade marks but to all works of intellectual property. The current criminal penalties are heavier than those in ordinary cases of theft and burglary. The gravity of the sentence, for copyright violations, reflects the underpinning Gambia government's policy that breach of copyright could seriously dent confidence in trade and commercial transactions on one hand, and fulfilling Gambia's international obligations on the other. In promoting deterrence, a court has the power, under Section 53(3) of Copyright Act 2004, to increase up to double the upper limit of penalties where guilty party has been convicted for a new act of infringement within five (5) years of the previous conviction of infringement.
In addition, the severity of the offence of copyright violation is highlighted by the fact that only the Gambia High Court has jurisdiction to hear cases/matters of copyright infringement - Section51(1) of Copyright Act 2004. This opens doors for more stringent sentences to be imposed, upon being found guilty, as opposed to lower courts where the magistrates sentencing powers are limited.
Follow up Question to Question 15: pages 44-45: Are legislative and regulatory provisions being considered that would permit creation of an enforcement mechanism to combat trademark counterfeiting and copyright piracy at the border?
Answer:
Laws have been enacted and are effective to combat copyright violations at the border and inland. The Copyright Act 2004 gave birth to the Copyright Bureau. The Bureau is legally empowered to supervise all aspects of copyright in The Gambia - Section 56 of Copyright Act 2004. The Act also demands for the appointment of copyright inspectors, by the Bureau, to assist in the enforcement of copyright law. The inspectors have entry, search and arrest powers, if they suspect that premises or a building is being used for an activity which infringes copyright - Section 56 of Copyright Act 2004.
As a means to detect and combat counterfeiting, it is unlawful (criminal offence) to import into The Gambia any counterfeit goods or work. Section 59(1) of Copyright Act 2004, allows for the Copyright Bureau to have exclusive right (upon approval of Minister) to 'prescribe and use any anti-piracy device for use on or in connection with any work protected under the Copyright Act. The anti-piracy device(s) would be used mostly at the Gambian borders to detect any goods or works that
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may be counterfeit. Such tasks would be carried out by Copyright inspectors in collaboration with Customs officials. The intention of the provision is that, once goods or work has been identified as counterfeit and/or trademark infringement, the owner of the copyright and the police shall be contacted to gather further information and initiate legal proceedings accordingly.
EUROPEAN UNION
Regarding Q25 on excise duties, could the Gambia please clarify the grounds on which excise taxes are applied to imports and to specify whether they are applied to all imports, and whether they differ from the excise duties applied to domestic produce?
Answer:
Excise taxes are applied to selective imports based on the 12th Schedule of the Customs and Excise Act, 2010. The Schedule covers the following imports: alcohol, cigarettes, un-manufactured tobacco, second hand cars, new cars, soft drinks, canned fruit, mineral water, laundry soap, nails, sugar confectionary, and wheel barrows.
Excise taxes are imposed to meet revenue objectives, discourage undesirable consumption of harmful products, and to protect the environment by levying excises on vehicle importation.
The above excise tax rates differ from those that are applicable to similar domestic produce. The rates and the products that attract domestic excise are captured under the 5th Schedule of the Customs and Excise Act, 2010.
Regarding Q28, could the Gambia please indicate a timeframe for the publication of the import requirements and the list of quarantine pests?
Answer:
The Gambia is working towards signing the International Plant Protection Convention (IPPC) for adherence to international procedures. Therefore until that time it will be binding on Gambia to adhere to specific timeframe for the publication of import requirements for Pests. The Gambia specifying its publication timeframe would be dependent on her becoming a member of the IPPC. However the Gambia's regulated list of quarantine pests is in the table below.
No. Pest category Common name Scientific name Crops attacked 1. Insect Angoumois grain moth Sitotroga cerealella Cereals 2. Insect Lesser grain borer Rhyzopertha dominica Cereals 3. Insect Larger grain borer Prosterphanus trucatus Cereals 4. Diseases Maize streak virus Maize 5. Insect Serpentine leaf miner Lirimyza trifolii Fruit trees 6. Insect Fruitfly Bractocera invadens Fruit trees 7. Insect Cassa mealybug Phenacoccus manihoti Cassava 8. Disease Panama disease Fusarium oxysporium f. sp. Roots and tubers Cubensis 9. Disease Black Sigatoka Mycosphaerella fijiensis Banana 10. Disease Mycospherella arachidicolla Groundnut 11. Weed Water hyacinth Eichornia crassipes Water bodies 12. Weed Prickly pear Opuntia spp Pasture 13. Weed Lantana camara Pastures 14. Weed Morning glory Ipomea spp Pasture
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