72565 v1 World Trade Indicators 2009/10 Democratic Republic of Congo Trade Brief Trade Policy terms in 2008, making the country’s exports more competitive. At 12 percent, the Democratic Republic of Congo’s average MFN applied tariff is in line with that of an As negotiations between the EU and the Central average country in Sub-Saharan Africa (SSA) (12.5 Africa group, to which the country belongs, towards a percent) or an average low-income country (12.7 full Economic Partnership Agreement (EPA) could percent). Based on the MFN applied tariff it ranks not be completed prior to the December 2007 133rd out of 181 countries, where 1st is least restrictive. deadline, the preferences under the Cotonou Tariff protection for agricultural products is slightly Agreement elapsed. The Democratic Republic of higher than for non-agricultural products (12.8 percent Congo, however, maintains a similar level of versus 11.9 percent). The Democratic Republic of preferences to the EU market under the “Everything Congo’s average MFN applied tariff has remained But Arms� (EBA) initiative for least developed stable over the past few years at 12 percent. The countries. It continues to negotiate an EPA with the country’s maximum MFN applied tariff (excluding EU as part of the Central Africa group. The country is alcohol and tobacco) is 30 percent. As of 2007, its also a member of the Common Market for Eastern trade policy space, as measured by the wedge between and Southern Africa (COMESA) which established a bound and applied tariffs (the overhang), was 7.4 customs union in June 2009 and plans to fully percent. Regarding its commitment to liberalizing implement it by 2012. Further improving the country’s services trade, it ranks 88th (out of 148) on the GATS market access, the 15-member Southern African Commitments Index. Development Community (SADC), to which it belongs, launched a free trade area in August 2008, To mitigate the impact of increasing global food prices expanding the country’s access to the markets of the in 2008, the government reduced import taxes. other member states. External Environment Behind the Border Constraints The Democratic Republic of Congo’s exports faces With the Democratic Republic of Congo’s business lower barriers to international markets than its SSA climate left fragile by years of conflict, its Ease of and low-income comparators, reflected by a weighted Doing Business rank was among the lowest in both average rest of the world tariff of only 0.2 percent. 2008 and 2009, 182nd out of 183 countries. A measure Although the country’s agricultural exports face a tariff of the extent of trade facilitation in the country, its of 4.8 percent, its non-agricultural exports, mainly rank in the Trading Across Borders category is 165th. composed of diamonds, cobalt and oil, face a much The country has relatively high costs of exporting and lower tariff of 0.1 percent. The Congolese franc importing and slow processing times, making it less depreciated by 0.8 percent in real, trade-weighted conducive to trade than its comparators. The average cost of exporting or importing is over US$2,450 per container, well above the average for the SSA region. Unless otherwise indicated, all data are as of August 2009 and are drawn from the World Trade Indicators 2009/10 Trade Outcomes Database. The database, Country Trade Briefs and Real (in constant 2000 U.S. dollars) trade growth Trade-at-a-Glance Tables, are available at slowed to 5.7 percent in 2008, compared to 9.4 http://www.worldbank.org/wti. percent in 2007, and is expected to turn negative in If using information from this brief, please provide the 2009, with trade falling by 4.7 percent. Import growth following source citation: World Bank. 2010. “Democratic decelerated from 9.2 percent in 2007 to 5.7 percent in Republic of Congo Trade Brief.� World Trade Indicators 2008. Exports were also hurt by poor performance in 2009/10: Country Trade Briefs. Washington, DC: World the mining sector, the country’s main export sector, as Bank. Available at http://www.worldbank.org/wti. diamond production fell due to depleted deposits, and World Trade Indicators 2009/10 The Democratic Republic of Congo Trade Brief many cobalt and copper mining companies suspended References or scaled back production in response to falling global prices. Exports ended up growing at the same rate of African Economic Outlook. 2009. “Congo (DRC).� 5.7 percent as imports in 2008, compared to the much African Economic Outlook. May 27, 2009. . in 2009, with imports falling by 4.1 percent and Doing Business. 2008. Country Profile for Congo, Dem. Rep. exports by 5.7 percent. . In nominal terms, trade growth accelerated from 20.6 COMESA. 2009. “COMESA Launches its Customs percent in 2007 to an estimated 28.9 percent in 2008. Union.� COMESA. July 24, 2009. . percent in 2007, outpacing export growth which was Europa. 2009. “Africa, Caribbean, Pacific—Regional an estimated 14.3 percent, down from 18.6 percent the Negotiations of Economic Partnership Agreements.� previous year. Services export growth underwent a Europa. June 2009. . estimated 8.7 percent in 2008 and is expected to fall Food and Agriculture Organization of the United further to 2.3 percent in 2009. Goods export growth, Nations (FAO). 2008. “Policy Measures Taken by on the other hand, experienced a less steep decline, Governments to Reduce the Impact of Soaring going from 18.3 percent in 2007 to an estimated 14.8 Prices—Africa—Democratic Republic of the percent in 2008. Goods exports are however expected to perform worse than services exports in 2009, Congo.� FAO. December 15, 2008. . to the country in 2008 were 33.1 percent of exports. Southern African Development Community (SADC). 2008. Final Communiqué of the 28th Summit of SADC Heads of State and Government. SADC. August 2008. .