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Viewing cable 06DAKAR606, GUINEA-BISSAU: INPUT FOR 2006 PRESIDENT'S REPORT

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Reference ID Created Released Classification Origin
06DAKAR606 2006-03-09 07:22 2011-08-24 16:30 UNCLASSIFIED Embassy Dakar
VZCZCXRO3114
PP RUEHPA
DE RUEHDK #0606 0680722
ZNR UUUUU ZZH
P 090722Z MAR 06
FM AMEMBASSY DAKAR
TO RUEHC/SECSTATE WASHDC PRIORITY 4517
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUEHZK/ECOWAS COLLECTIVE
RUEHBR/AMEMBASSY BRASILIA 0162
RUEHLC/AMEMBASSY LIBREVILLE 0856
RUEHLI/AMEMBASSY LISBON 0711
RUEHLU/AMEMBASSY LUANDA 0365
RUEHTO/AMEMBASSY MAPUTO 0398
UNCLAS DAKAR 000606 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR AF/EPS, EB/TPP/BTA, DRL/PHD, INR/AA AND AF/W 
AID/W FOR AFR/WA 
TREASURY FOR SONIA RENANDO 
ACCRA FOR USAID/WARP 
PARIS FOR POL - D'ELIA 
PARIS OPLS PASS USOECD 
 
E.O. 12958: N/A 
TAGS: ETRD ECON PHUM PU
SUBJECT: GUINEA-BISSAU: INPUT FOR 2006 PRESIDENT'S REPORT 
ON AGOA 
 
REF: STATE 026707 
 
ΒΆ1.  Below is Embassy Dakar's submission for the 2006 
President's Report on the African Growth and Opportunity 
Act (AGOA) for Guinea-Bissau. 
 
Begin text: 
 
Status: AGOA eligible. 
 
AGOA Trade and Investment: In 2005 Guinea-Bissau did not 
export under AGOA and its GSP provisions, though its total 
exports to the United States reached USD 2 million. 
 
Market Economy/Economic Reform/Elimination of Trade 
Barriers: The Government supports continued transition to 
a market economy.  It no longer dominates the commercial 
sector and has abolished state marketing boards, 
privatized some companies and ended price controls. 
Restrictions on foreign operators in the cashew production 
sector were lifted in 2004. 
 
Rule of Law/Political Pluralism/Anti-Corruption: 
Presidential elections in June and July 2005 led to a 
peaceful transfer of power to Joao Bernardo "Nino" Vieira. 
Shortly after his inauguration, President Vieira replaced 
Prime Minister Carlos Gomes Junior of the African Party 
for the Independence of Guinea-Bissau and Cape Verde 
(PAIGC), the largest party in the National Popular 
Assembly, with Aristides Gomes.  The PAIGC leadership 
cried foul on constitutional grounds and took the case to 
the Supreme Court, which sided with Vieira.  The national 
court system continues to function, albeit with serious 
resource constraints.  The Government launched a campaign 
against public corruption and arrested the director of the 
state Electric and Water Company, sentenced the former 
director of the Institute of Assistance to Emigrants to 
three years in prison, and is investigating other cases of 
corruption under the Kumba Yala regime.  Customs receipts 
are placed directly into a treasury account; fuel import 
duties are collected at one controlled port of entry; and 
the Ministry of Finance must clear on all disbursements to 
ministries and public bodies.  To increase transparency 
and gain donor confidence, the GOGB allows the UNDP and 
donors to participate in the Treasury Committee, which 
implements the day-to-day fiscal management on the basis 
of a strict cash rationing system. 
 
Poverty Reduction: Guinea-Bissau is finalizing its 
National Poverty Reduction Strategy paper (DENARP), which 
is expected to become the basis of the medium-term 
economic and social policies.  In cooperation with UNDP, 
the GOGB will seek donor assistance in implementing these 
policies at a round table conference planned for 2006. 
International financial institutions sent delegations to 
Guinea-Bissau in early 2006 to assess the stability of the 
Government as a precursor to reopening broader assistance 
efforts. 
 
Labor/Child Labor: The constitution grants all civilian 
workers the right to form and join trade unions.  The 
right to strike and protection against retribution is 
guaranteed.  Guinea-Bissau has not ratified Convention 182 
on the worst forms of child labor.  Guinea Bissau lacks 
the pool of skilled labor required for increased exports 
of certain skill-intensive products.  The lack of educated 
workers also discourages investment in the country. 
 
End text. 
 
JACKSON