Burundi

Location : Central Africa, east of Democratic Republic of the Congo

Capital : Bujumbura

Languages : Kirundi (official), French (official), Swahili (along Lake Tanganyika and in the Bujumbura area)

Area : 27,830 sq km

Land Use : arable land: 35.05%; permanent crops: 14.02%; other: 50.93% (2001)

Natural Resources : nickel, uranium, rare earth oxides, peat, cobalt, copper, platinum, vanadium, arable land, hydropower, niobium, tantalum, gold, tin, tungsten, kaolin, limestone

Population : 6,370,609 (July 2005 est.).

Labour force : 2.99 million (2002)

Labour force participation rate : 46.93% of population (2002 est.)

Population below poverty line : 68% (2002 est.)

International Organisation participation : ACCT, ACP, AFDB, AU, CEPGL, FAO, G-77, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IOM (observer), ISO (subscriber), ITU, MIGA, NAM, OPCW, UN, UNCTAD, UNESCO, UNIDO, UPU, WCO, WHO, WIPO, WMO, WToO, WTO

GDP per capita : U$600 (2004 est.)

GDP Real Growth Rate : 3% (2004 est.)

GDP sectoral composition : agriculture: 48.1%; industry: 19%; services: 32.9% (2004 est.)

Investment (gross fixed): 10.7% of GDP (2004 est.)

Industries: light consumer goods such as blankets, shoes, soap; assembly of imported components; public works construction; food processing

Industrial production growth rate : 18% (2001) 

Agriculture - products : coffee, cotton, tea, corn, sorghum, sweet potatoes, bananas, manioc (tapioca); beef, milk, hides

Exports : U$31.84 million f.o.b. (2004 est.)

Exports - commodities : coffee, tea, sugar, cotton, hides

Exports - partners : Switzerland 25.8%, Germany 12.2%, Belgium 7.9%, US 5.5%, Thailand 5.3%, Rwanda 5.2% (2004)

Imports : U$138.2 million f.o.b. (2004 est.)

Imports - commodities : capital goods, petroleum products, foodstuffs

Imports - partners : Kenya 11.7%, Tanzania 9.6%, US 9.1%, Belgium 9%, France 8.8%, Italy 5.4%, Japan 4.8%, Uganda 4.8%, Zambia 4.2% (2004) 

QUALITATIVE TRADE PROFILE

• The main objective of Burundi's trade policy is to diversify exports, particularly by exploiting non-traditional agricultural sub-sectors. Customs duties are the central element of Burundi's trade policy. During the Uruguay Round, Burundi bound the rates for almost 20 per cent of its tariff lines. All tariffs for agricultural products were bound at a ceiling rate of 100 per cent, with the exception of some 6 per cent of lines that had already been bound. For non-agricultural products, rates for less than 10 per cent of the tariff lines were bound, 24.2 per cent for textiles and clothing, 20.2 per cent for leather, rubber and footwear, and 11.2 per cent for transport equipment.
• On 1 January 2003 Burundi decreased its maximum applied rate to 40% with the result that the MFN simple average rate fell from 30.8% to 23.5%. All duties are ad valorem and there are eight rates. The government has in place various incentive programs aimed at the agricultural and SME sectors which aim to compensate for the impact of custom duties on cost. In addition, these incentive programs also aim for the diversification of economic activity out of the capital and import substitution.
• Most exports are subject to a 5 per cent export tax. The government had planned to eliminate export taxes from 1 January 2003. Burundi has abolished the majority of quantitative restrictions for the vast majority of imports. It does not have any national standards and therefore various international standards are used by Burundi as a reference in certain areas.
• Agriculture is still the most protected sector of the economy, with an average customs duty of 32.8%. The agricultural sector is given a number of exemptions and reductions of duties and taxes, especially on inputs. It is generally agreed that the manufacturing sector is underdeveloped and in 2001 accounted for around 16% of the GDP. In the past few years, this sector has suffered modest growth, led by exports of beverages to neighbouring countries. Average customs duty is 23.2%. Textiles and clothing are subject to tariff escalation because of their status as an emerging industry. In 2000, services accounted for almost 40 per cent of the GDP, made up primarily of transport, communications, or trade activities.

INSTITUTIONAL FRAMEWORK 

• The primary responsibility for trade policy formulation rests with the Ministry of Trade and Industry. In addition, the ministries of finance, planning and reconstruction, agriculture and livestock are also key players in general policy formulation. To these must be added various ministries and public sector organizations that may have responsibility for sectoral matters. Co-ordination between trade policy and other ministries takes place under the auspices of an inter-ministerial committee while co-ordination with other areas of economic reform takes place under the auspices of the Economic and Social Council, which is an advisory body in the Vice-President's Office in charge of ensuring coherence in all matters relating to economic and social reform. Consultation with this body is mandatory on any development plan or any position in regional or sub-regional integration organisations.

TRADE AGREEMENTS

• Bilateral
• Burundi is a beneficiary of non-reciprocal preferential access to the European Union market under the "Everything but Arms" initiative. As a member of COMESA, Burundi is currently negotiating Economic Partnership Agreement with the EU. Burundi is not however a beneficiary of the United States African Growth and Opportunity Act (AGOA).
• Regional
• Burundi is a member of the Common Market for Eastern and Southern Africa (COMESA). It is also party to the Treaty on the Economic Community of the Great Lakes Countries (CEPGL), whose trade provisions are not applied. Burundi is also a member of the African Union. Burundi is currently negotiating an Economic Partnership Agreement with the EU through the Eastern and Southern Africa (ESA) configuration.
• Multilateral
• Burundi is one of the original Members of the WTO and as a minimum grants MFN treatment to all its trade partners. It has not signed the various plurilateral agreements negotiated within the WTO. Burundi has made GATS commitments in business services, construction and related engineering services, distribution services, health-related services, and social services.

NEED PRIORITIES  

• In the multilateral arena, priority areas for Burundi in trade policy formulation are telecommunications, financial services, energy, customs/trade facilitation, standards, intellectual property and AD/CVD. With regard to implementation, priority areas are implementation of WTO and COMESA commitments.

Source: World Fact Book, WTO Secretariat.