The 2nd Trade Policy Review of Angola (22 and 24 September 2015) Statement by the Republic of Korea
Thank you, Mr. Chairman.
I would like to join the previous speakers in extending a warm welcome to the delegation of Angola for its second trade policy review, and especially thank Minister of Commerce Rosa Escorcio Pacavira de Matos for her comprehensive presentation.
My special thanks go as well to Ambassador Xavier Carim (of South Africa) for his thought-provoking contribution as a discussant and to the Secretariat for its detailed and informative report.
I am pleased to note that Korea and Angola have expanded their trade relations over the years, with bilateral trade reaching 1.9 billion US dollars in 2014. Korea was the fifth largest exporting country to Angola in 2013, accounting for 5.5% of Angola’s total imports. Korea indeed hopes that its economic partnership with Angola will continue to grow and develop in the future.
Mr. Chairman,
Turning to Angola’s economic trends, I wish to note that the Angolan economy is showing signs of recovery after its growth rate declined to 2.4% in 2009. Based on this economic upturn, in 2012, Angola’s GDP growth stood at 5.2% and per capita GDP is estimated at 5,700 dollars, up from 1,000 dollars in 2001. Given the global economic difficulties, these achievements are indeed impressive.
Mr. Chairman, despite this progress, Korea would like to provide a few brief comments on Angola’s trade policies and practices where we find there is room for improvement.
First, we would put forward that Angola needs to reduce its high dependency on the
oil industry. While we recognize the fact that Angola has made efforts towards diversification, oil products still account for 40% of GDP and over 95% of export earnings. Considering its price fluctuation risk and the limited nature of the oil industry, a further push for its economic diversification seems very much needed.
Second, we would like to touch on the lingering concerns over the complexity of the
Angolan visa issuance system and frequent delays in issuing visas. In particular, it takes years for foreign investors to obtain labor visas, which makes it difficult for them to run long-term businesses in Angola. In this regard, we encourage the Angolan government to reform its visa issuance system and expedite related proceedings in such a way that will further enhance the predictability for businesses and promote investment.
Third, we have heard from many businessmen in Angola, both local and foreign, that
some restrictions on cross-border currency transfers are causing unnecessary damage to commercial, economic and financial interests. These include high levies on transfers, delayed processing and prohibition of transfers for foreign service providers without labor visas. We urge the Angolan government to fully address issues related to restrictions on transfers in a way that is consistent with the WTO rules, which will eventually contribute to creating an investment-friendly environment to foreign investors.
Fourth, as pointed out in the Secretariat Report, Angola has not notified the WTO of
its state-trading enterprises according to Article 17 of the GATT even though state involvement in the economy remains extensive particularly in the areas of oil, diamond and electricity. We would like to request Angola to notify its state enterprises to the WTO in order to enhance the transparency of its scheme.
Mr. Chairman, it is our hope that Angola will continue to actively participate in strengthening the WTO multilateral trading system. We also hope that Angola will submit its Category A commitments and acceptance of the instrument preferably by the MC-10.
With this, we would like to conclude by expressing our sincere appreciation to the Angolan delegation for its hard work and wish Angola every success in its TPR.
Thank you.
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