US embassy cable - 05KINSHASA322

UNCLAS SECTION 01 OF 02 KINSHASA 000322 
 
SIPDIS 
 
DEPT FOR AF/EPS AND AF/C 
PARIS FOR AFRICA WATCHER AND ARS 
 
FROM BRAZZAVILLE EMBASSY OFFICE 
 
E.O.12958: N/A 
TAGS: ETRD, AGOA, KPAO CF 
SUBJECT:  Congo/B:  2005 AGOA Report 
 
Ref: State 024616 
 
1. The Republic of Congo (Congo/B) leadership is committed 
to meeting the eligibility requirements of AGOA. See para 3 
for Government and Post public diplomacy programs 
 
2. Post's 2005 responses are kept to template outlined in 
reftel: 
 
A) Market Economy/Economic Reform/Elimination of barriers to 
U.S/ Trade:  The Republic of Congo continues to transition 
to a full market economy. A mixed economy is the best 
description of the current environment with ongoing efforts 
to privatized government-owned businesses and operations 
such as the national railway. Overall, there are signs of 
positive economic and commercial growth as developers and 
investors gain more confidence that the country's post- 
conflict environment is here to stay. The last government- 
owned bank was privatized in mid 2004 as part of Congo/B's 
efforts not only to meet IMF measurements but to advance its 
desire to have a market economy. However, the 
commercialization of the country's moribund and inefficient 
railroad remains a challenge. Several potential investors 
over the last year who have shown an interest have later 
pulled out because of the large capital needed to repair and 
run the system.  On the other hand, the country surprised 
most in the international community with making solid 
strides to meet and qualify for an IMF Poverty Reduction 
Growth Facility (PRFG) in December 2004, with improved 
governance at some levels, oil transparency and better 
budgeting and accounting practices. Although this was a 
major positive economic development, the situation will need 
continued monitoring and oversight during 2005 to ensure 
that measures put in place for the PRGF remain permanent as 
the ROC's moves toward a HIPIC decision point later in the 
year.  For the moment all is on track to date with Congo/B 
meeting all its arrears payments to all multilateral and 
bilateral creditors as well as domestic salary payments. 
Barriers to U.S. Trade are being actively addressed and the 
recently passed budget (February 23, 2005) specifically 
responds to a request by U.S. company Seaboard to ensure 
that pricing by other flour importers (most Lebanese) do not 
disadvantage them. In addition in April 2004 Murphy Oil 
received favorable consideration for two oil concessions 
that are now operational and recently had a positive oil 
find. The government remains open and responsive to issues 
raised by US companies and the Embassy. 
 
B) Political Pluralism/Rule of Law/Anti-Corruption: The 
current President, Denis Sassou Ngeusso, was elected in 2002 
in elections deemed not "to contradict the will of the 
people" by independent monitors. The Presidents' Congolese 
Workers' Party (PCT) also won the legislative elections and 
control 121 seats in the 137-seat National Assembly. 
Opposition parties, although they exist and are represented 
in the assembly, lack political credibility of their own 
making. Further they tend to represent personalities instead 
of being constituency based with real political platforms. 
The judiciary is overburdened and subject to corruption and 
outside influence by anyone. Over the last few years, there 
has not been any evidence of direct interference by the 
Executive Branch, however, there has been by other 
commercial and/or private forces. The country has put in 
place two new courts - the Constitutional Court and High 
Court - as well as a Human Rights Commission to assist with 
addressing judicial branch issues and human rights 
complaints. The Government has a strong stated anti- 
corruption policy and laws, which need to be further 
enforced. The President also highlights this issue in almost 
every single public speech. In mid-October 2004, additional 
anti-corruption laws were promulgated and enough initial 
progress was made in this area in order for the country to 
receive approval for an IMF PRGF program in December 2004. 
However, transparency is still a key problem area which 
needs continued monitoring by the international community. A 
reconfigured and enlarged cabinet was announced on January 
7, whose performance will need to be reviewed and analyzed 
throughout 2005.  It was expected that a newer, leaner 
cabinet would be put in place, but this did not happen. 
 
C) Poverty Reduction:  The ROC has an inter-ministerial 
poverty reduction committee and a interim poverty reduction 
strategy plan (IPRSP)- an exercise done in conjunction with 
moving forward on IMF measures and a World Bank program. The 
IPRSP still needs some work but it primarily focuses on 
infrastructure, health, and educational development. NGOs 
and civil society contributed to the IPRSP. In addition, the 
Government is expecting that if it is successful in reaching 
the HIPIC decision point later this year, more resources can 
be devoted to these areas. In early January 2005 an inter- 
ministerial committee and technical working group under the 
leadership of the Ministry of Plan was put in place to 
ensure effective PRGF implementation. The first IMF review 
under the PRGF is schedule for early March. 
 
D) Human Rights/Labor/Child Labor: As per Post's 2004 Human 
Rights submission, the Government's human rights record had 
some significant improvements given the post-conflict status 
of the country, but overall it remained poor and needs 
improvement. At times, some uncontrolled elements of the 
security forces reportedly were responsible for beatings, 
physical abuse of detainees, rapes, arbitrary arrest and 
detention. Also unidentified armed bandits, many former 
Ninjas, were also responsible for harassment in some areas 
of the Pool region. There were no reports, however, of 
political killings by the Government or its agents, and the 
country's Constitution does prohibit arbitrary arrest and 
detention. 
 
On labor issues, the ROC does protect international 
recognized worker's rights, including the right of 
association, to organize, strike and bargain collectively. 
There are Constitutional prohibitions on forced or 
compulsory labor and for the most part the Government 
respected this in practice. The Government was committed to 
protecting the rights and welfare of children.  The 
Constitution provides children equal protection under the 
law.  Education was compulsory and tuition free until the 
age of 16. Children under age 16 are not permitted to work; 
however, in practice, this law generally was not enforced 
everywhere, particularly in rural areas and in the informal 
sector in cities. In rural areas, children worked with their 
families on farms or in small businesses in the informal 
sector without government monitoring or supervision.  The 
Ministry of Labor, which is responsible for enforcing child 
labor laws, concentrated its limited resources on the formal 
wage sector where its efforts generally were effective. 
Discrimination still strongly affects pygmies, particularly 
regarding employment.  Congo ratified ILO Convention 182 in 
April 2002. 
 
3. Other AGOA outreach activities: The Government through 
the Ministry of Commerce has established an AGOA working 
group that is actively addressing ways to rebuild pre-civil 
war industries such as coffee and coco and niche herb items 
for export purposes. They are also working to put in place a 
visa regime for textile. Embassy public diplomacy and 
outreach activities this reporting period include co- 
sponsoring with the Ministry of Commerce a 3-day AGOA 
seminar with the private sector to further define key 
Congolese sectors which could take advantage of AGOA. The 
Mission, as well as the Commerce Ministry, later worked 
together to secure a $225,000 grant to design a "National 
AGOA Strategy" and assist companies -- specifically in the 
coffee and coco sectors -- move forward on AGOA. Strategy 
efforts are ongoing. The Ministry of Commerce introduced 
favorable laws to assist with AGOA programs and strategies 
during the last parliamentary session. The Ministry sees 
AGOA as a key development tool.  Post worked with ARS to 
have the AGOA product list translated into French. This list 
has now been distributed to the Congolese private sector via 
the Ministry of Commerce. 
 
4. Brazzaville Embassy Office - Sanders 
MEECE