Identifier
Created
Classification
Origin
06LIBREVILLE626
2006-10-12 09:35:00
UNCLASSIFIED
Embassy Libreville
Cable title:  

AGOA ELIGIBILTY REVIEW - GABON

Tags:  AGOA ECON ETRD GB 
pdf how-to read a cable
VZCZCXYZ0001
PP RUEHWEB

DE RUEHLC #0626/01 2850935
ZNR UUUUU ZZH
P 120935Z OCT 06
FM AMEMBASSY LIBREVILLE
TO SECSTATE WASHDC PRIORITY 9362
UNCLAS LIBREVILLE 000626 

SIPDIS

SIPDIS

DEPT PASS USTR FOR CHAMILTON
DEPT FOR AF/EPS JPOTASH

E.O. 12958: N/A
TAGS: AGOA ECON ETRD GB
SUBJECT: AGOA ELIGIBILTY REVIEW - GABON

REF: STATE 163056

Following is an update of the 2005 AGOA review information for
Gabon.

------------------
Country Background
------------------

El Hadj Omar Bongo has been President since 1968. In November 2005,
he was re-elected to another seven-year term. The World Bank
estimated 2005 GDP per capita at $5,280; one of sub-Saharan Africa's
highest per capita income. The economy is heavily dependent on oil,
which accounts for 77 of exports, 45 of GDP and 56 of government
revenues. The remainder of Gabon's economic activity is largely
devoted to the extraction of other raw materials, namely timber and
manganese. In the past year the government liquidated the state
airline and made efforts to privatize the telecommunications
parastatal. Exceptionally high oil prices in the last year were
used in part for debt reduction and should help prevent the
accumulation of further significant arrears.
------------------------------------
Comments on Eligibility Requirements
------------------------------------
UNCLAS LIBREVILLE 000626

SIPDIS

SIPDIS

DEPT PASS USTR FOR CHAMILTON
DEPT FOR AF/EPS JPOTASH

E.O. 12958: N/A
TAGS: AGOA ECON ETRD GB
SUBJECT: AGOA ELIGIBILTY REVIEW - GABON

REF: STATE 163056

Following is an update of the 2005 AGOA review information for
Gabon.

--------------
Country Background
--------------

El Hadj Omar Bongo has been President since 1968. In November 2005,
he was re-elected to another seven-year term. The World Bank
estimated 2005 GDP per capita at $5,280; one of sub-Saharan Africa's
highest per capita income. The economy is heavily dependent on oil,
which accounts for 77 of exports, 45 of GDP and 56 of government
revenues. The remainder of Gabon's economic activity is largely
devoted to the extraction of other raw materials, namely timber and
manganese. In the past year the government liquidated the state
airline and made efforts to privatize the telecommunications
parastatal. Exceptionally high oil prices in the last year were
used in part for debt reduction and should help prevent the
accumulation of further significant arrears.
--------------
Comments on Eligibility Requirements
--------------

1. Market-based Economy:

a. Major Strengths Identified -

- Almost all parastatals have been privatized, including companies
in the oil, wood, minerals, water, electricity, and agricultural
sectors.

- The GoG's revenue increased, primarily due to high oil prices. It
used some of this windfall for additional payments to reduce debt.


- Gabon currently benefits from AGOA almost exclusively through its
petroleum exports to the United States.

- The wood products sector is the main industry with potential to
take advantage of AGOA in the future.

- The Embassy is currently working with the government on the
establishment of an AGOA Resource Center.

b. Major Issues/Problems Identified -

- Since 2001, the government has worked on the privatization of the
mail and telephone monopoly. To date, neither has been fully and
successfully privatized.

- Gabon's minimal manufacturing capacity makes it unlikely that
other sectors will be able to take advantage of AGOA in the near
term.

- One US firm had a significant dispute with the GoG concerning
taxes and other issues.


2. Political Reforms/Rule of Law/Anti-Corruption

a. Major Strengths Identified -

- Gabon has a number of opposition political parties.


- In December 2005 the government published its first Extractive
Industries Transparency Initiative (EITI) report, which showed oil
companies' payments to the GoG and the GoG's declared receipts for

2004.

- In 2004 the GoG established a new anti-corruption authority, the
Ministry to Combat Illicit Enrichment, and appointed a ten person
commission to report on corruption-related activity.

b. Major Issues/Problems Identified -

- Lack of a level playing field and an absence of transparency
marked the November 2005 presidential election.

- World Bank funding for the forestry sector could be at risk due to
the GoG's inaction on forestry sector reform.

-Oversight is weak, making it possible for public officials to
exploit their positions for personal enrichment.

- In the past poor public financial management contributed to
significant arrears in domestic and external debt payments.

- To date, the commission on combating illicit enrichment has not
published any reports.

3. Poverty Reduction

a. Major Strengths Identified -

- In December 2005, the government published its Strategy for Growth
and Poverty Reduction Paper.

b. Major Issues/Problems Identified -

- Gabon has one of sub-Saharan Africa's highest per capita incomes,
but income distribution is extremely skewed and its ranking on human
social indicators is well below its GDP ranking.

- Literacy and life expectancy are lower in Gabon than in countries
with comparable incomes, although higher than in other (poorer)
African countries.


4. Workers' Rights/Child Labor/Human Rights

a. Major Strengths Identified -

- Workers' rights are protected in Gabon by unions affiliated with
the ILO (International Labor Organization) and by an official
government institution called the Labor Inspection Office, which
mediates employer-employee conflicts. If a resolution cannot be
found, the case then goes to court.

- The National Social Security Fund (CNSS) manages employees' health
plans and retirement pensions.

- The constitution places no restrictions on the right to
association and recognizes the right of citizens to form trade and
labor unions.

- Virtually the entire private sector workforce is unionized. The
labor code provides for collective bargaining by industry, not by
firm.

- The GoG enforces child labor laws with respect to Gabonese
children and ratified ILO Convention 182 on the worst forms of child
labor.

- The GoG's anti-trafficking efforts include a law, arrests,
training and awareness workshops.

b. Major Issues/Problems Identified -

- While the GoG enforces child labor laws with regard to Gabonese
citizens, it is less successful in enforcement with respect to
children from other countries.

- Trafficking in persons continues to be a problem. Children
(especially girls) continue to be trafficked into the country,
primarily from Benin, Togo and Nigeria, for use as domestic servants
or for work in the informal commercial sector.


5. US National Security Concerns / Gross Human Rights Violations -

a. Major Strengths Identified - none

b. Major Issues/Problems Identified - none


DHANANI