1st WTO Trade Policy Review of the Republic of Liberia, 24 and 26 May 2023
Chair,
On behalf of the European Union, I would like to welcome the Delegation of the Republic of Liberia to the 1st Trade Policy Review since joining the WTO in 2016. Welcome Minister Mawine Guatta Diggs, and thanks to the WTO Secretariat and the Government of Liberia for the respective reports. We thank also Her Excellency, Ambassador Mlumbi-Peter, for her role as Discussant.
We are pleased to see that the Government of Liberia is implementing reforms that have fuelled a GDP growth of 5% in 2021, mainly on the back of a solid performance of the mining and manufacturing sectors. Liberia has succeeded in maintaining a moderate inflation rate despite external shocks and domestic challenges. The Government’s flagship development plan, the Pro-Poor Agenda for Prosperity and Development (PAPD), developed in 2018, sets out development goals with an overarching objective to reduce absolute poverty by 23% over five years. We welcome further information about the Government’s strategy for the PAPDs review and possible replacement or continuation in 2023.
The European Union recognises the particular developmental challenges of Liberia typically associated with least developed countries. The EU and its Member States provide significant technical assistance with the explicit aim of assisting Liberia in meeting these challenges. We would like to acknowledge the significant upward potential of a country endowed with many natural resources on land and in its exclusive zone, but at the same time facing significant challenges such as one of the highest deforestation rates in the world of 2% annually. In this and other regards, the European Union highlights the importance of developing a solid regulatory framework that is pro-business, stable and transparent, and that avoids informal channels.
The European Union welcomes the active role of Liberia in the WTO and its support for the multilateral trading system since its accession in 2016. We thank Liberia for the recent payment of the WTO membership dues. We encourage Liberia to remain an active Member and to develop and implement domestic policies that are consistent with its commitment to rules-based trade. Liberia is a member of various groups in the WTO, including the African Caribbean Pacific (ACP) Group of States, G-90, African Group, and Least Developed Countries. We welcome your active participation in these Groups.
The European Union welcomes Liberia’s participation in the Joint Statement Initiative on Investment Facilitation for Development and in the Informal Working Group on Trade and Gender. We take this opportunity to encourage Liberia to also join the JSIs on e-Commerce and Services Domestic Regulation, as well as the ongoing three environmental initiatives (the Trade and Environmental Sustainability Structured Discussions, the Informal Dialogue on Plastics Pollution and Sustainable Plastics Trade, and Fossil Fuel Subsidy Reform) and the work on MSMEs. Moreover, we would encourage Liberia to join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA).
The European Union appreciates Liberia’s efforts in promoting regional integration in West Africa, including Liberia’s decision back in 2014 to sign the EU-West Africa Economic Partnership Agreement. This is an important step to help the country participate in regional and global value chains and attract investment. We encourage Liberia to continue promoting an open and predictable business environment to attract further investment.
Despite positive aspects, the European Union would like to raise a number of issues regarding Liberia’s trade and investment policies.
First, the European Union notes from the Secretariat report that Liberia could do more to improve its institutional setting and to enact policies that can help to certify products originating in Liberia. Current shortfalls in this area deter your businesses from acceding export markets, including the European Union under the EBA regime or the ECOWAS market, which is currently marginal.
Second, while the European Union recognises the significant reforms of the Liberian forestry regime in terms of transparency and accountability, we are concerned about the extent to which the Voluntary Partnership Agreement (VPA) is enabling Liberia to meet European Union requirements for control, verification, and licensing of timber products.
Third, while the European Union acknowledges the efforts of Liberia in reforming its fisheries management regime, we reiterate our concern about the sustainability of the fishery sector, and the extent to which the implementation of the National Plan of Action to combat IUU (illegal, unreported, and unregulated) fishing is giving positive results. This goes in line with the concern on Liberia’s effective commitment to implement the FAO Agreement on Port State Measures (PSMA).
Fourth, while the European Union recognises the efforts and steps to improve transparency and accountability in the mining sector, we continue highlighting that unlicensed and illegal mining in the artisanal mining sector remains a key challenge that should be addressed without delay.
Fifth, according to Secretariat report, Liberia has made multiple notifications to the WTO but has outstanding notifications in a number of areas, including agricultural domestic support and export subsidies, import licensing procedures and quantitative restrictions, customs valuation, subsidies and countervailing measures, state trading enterprises, anti-dumping actions, and GATS. The European Union invites Liberia to submit these outstanding notifications.
Last but not the least, the European Union notes that Liberia’s ratification of the African Continental Free Trade Area (AfCFTA) is outstanding. We would encourage Liberia to ratify the AfCFTA expeditiously, along with other measures to facilitate regional and international trade. They will bring tangible benefits to the national economy.
Liberia is a valued trading partner of the European Union, and we look forward to working with you in the lead-up to the upcoming 13th Ministerial Conference in 2024 in Abu Dhabi.
We thank Liberia for the replies to our questions and concerns and we will continue to review the responses carefully.
On behalf of the European Union, we wish Liberia a very successful and productive 1st Trade Policy Review.