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 
------------------------------------ 
¶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