Gabon is a stable country with major economic benefits like having a small population (about 2 million people), abundant natural resources, and a strategic location along the Gulf of Guinea. Gabon’s economy was diversified away from oil and traditional investment partners in 2009, and the government positioned Gabon as an emerging economy. Gabon encourages foreign investment in a variety of industries, including oil and gas, infrastructure, wood, tourism, and mining. Despite these efforts, Gabon’s economy is still reliant on cash produced by petroleum exports. Gabon has a per capita income four times that of most Sub-Saharan African countries, although a major section of the population remains impoverished due to high economic disparity. Plantains, yam, maize, groundnut, rubber, and cassava are some of Gabon’s agricultural products and its industries include chemicals, textiles, cement, food, and drinks.
Economic and Monetary Community of Central Africa (CEMAC)
Gabon, Equatorial Guinea, Cameroon, Congo, Chad, and the Central African Republic are all members of CEMAC. Its stated aim is to encourage Member States’ harmonious development in the context of the creation of a true single market. On March 16, 1994, in Chad, the treaty that founded CEMAC in its current form was signed. It took the role of the Treaty Establishing the Central African Customs and Economic Union (UDECA), which was signed in Congo on December 8, 1964. CEMAC countries already share a single financial, regulatory, and legal structure, as well as a common external tariff (CET) on non-CEMAC imports.
African Growth and Opportunity Act (AGOA)
Gabon is a beneficiary of the United States AGOA trade agreement, which was signed into law on May 18, 2000. For qualified Sub-Saharan African (SSA) countries, the legislation considerably improves market access to the United States. Each country must endeavor to enhance its rule of law, human rights, and respect for key labor standards to qualify and remain eligible for AGOA. AGOA expands the (duty-free) benefits formerly accessible only under the country’s Generalised System of Preferences (GSP) program, building on current US trade programs. On June 29, 2015, the AGOA Act was extended for another ten years, until 2025, after it had completed its initial 15-year period of validity.
Gabon-EU Voluntary Partnership Agreement
Gabon and the EU started negotiating a Voluntary Partnership Agreement (VPA) in September 2010 to boost legal timber trade and improve forest governance. Gabon would build a timber legality assurance system and implement legislative and governance reforms suggested by stakeholders within the terms of a VPA. The negotiating process has hit several roadblocks that need to be solved. Despite this, the VPA process has allowed parties to come together and collaborate on forest law reform. A Voluntary Partnership Deal (VPA) is a legally binding trade agreement between the European Union and a timber-exporting country that is not a member of the EU. VPAs have the advantage of considering development and environmental issues in addition to trade.
Gabon and the European Union Fisheries Agreement
The European Union and the Gabonese Republic signed a new protocol to a fisheries agreement in 2021, allowing E.U. vessels to access Gabonese waters for the following five years. The new protocol guarantees respect for the fundamental values of the E.U.’s Common Fisheries Policy and Gabon’s intention to strengthen the sector’s competitiveness and foster the development of added value and jobs.
Gabon and Togo
On 2nd July 2021, the governments of Gabon and Togo signed a memorandum of understanding on forestry industry cooperation. This agreement intends to make it easier to import Gabonese wood products that have been transformed in one of three ways in Togo. This five-year agreement aims to make it easier to import Gabonese wood products that have undergone primary, secondary, or tertiary processing in Togo. The two countries intend to improve their collaboration in environmental and forest resource management, as well as create chances for the Gabonese timber sector in the Togolese wood construction market, as well as in all of West Africa.
Egypt and Gabon Trade Agreement
On 16th August 2017, Egypt and Gabon inked a trade cooperation deal. The agreement will create a cooperative trade committee to aid in the development of both countries’ economies. The two countries are looking into the potential of Egypt investing in a lumber plant in Gabon. Cooperation and mutual investment, particularly in the health sector, as well as African and regional security, and environmental issues, are also discussed.
