afrol News, 6 February - A review of the trade policies of The Gambia by the World Trade Organisation (WTO) emphasises on the need for reforms aiming at "diversification of production and exports." Gambian efforts to become a regional hub for re-exports is hampered by export difficulties.

One of the main revenue sources for The Gambia is its role as a hub for re-exports to neighbouring countries, in particular Senegal. To strengthen this position, however, the WTO says that trade policy reforms of The Gambia "need to address anti-export biases resulting from its tariff structure with a view to contributing to the diversification of production and exports."

- This could provide durable prospects for growth and promote investment, according to a report on the trade policies and practices of The Gambia released by the WTO Secretariat.

Re-exports have historically accounted for a very high percentage of The Gambia's overall trade. They have been encouraged by the relative efficiency of its port, its historically more liberal exchange rate and trade policies, and underdeveloped customs administration throughout the region. However, recent developments, mainly the continued appreciation of the euro, have somewhat dampened The Gambia's comparative advantages for these activities, according to the WTO.

The report notes that The Gambia's ability to benefit from its membership to the WTO is hampered by capacity constraints, which affect both its participation in negotiations and implementation of trade reforms entailed by its multilateral commitments.

- The Gambia would therefore benefit from specific support designed to help it meet its multilateral commitments, and to disseminate information regarding preferential market access opportunities and satisfy procedural requirements attached to them, the WTO report says.

The report also concludes that The Gambia could improve the predictability of its trade regime by increasing the coverage of bound tariffs, and by reducing the gap between bound and applied rates. Further tariff reforms would also reduce the need for duty exemptions and concessions.

Trade policy reforms, particularly tariff reductions, regulatory reforms and divestiture, are aimed at transforming The Gambia into a middle-income country by the year 2020. "However, The Gambia's overarching Vision 2020 document provides little discussion of concrete policy measures," the WTO report criticises.

- Inter-ministerial coordination and the quality of informational flows on trade policy matters are poor, the report says. "Consequently, the formulation and discussion of trade policy have been, at best, only partially integrated into the overall development and poverty reduction strategies."

By staff writer

© afrol News

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