International Trade and the DRC

This assignment delves into the complex relationship between international trade and the Democratic Republic of Congo (DRC). It examines the DRC's participation in global trade markets, particularly highlighting the role of exports in economic development. The analysis considers various factors influencing trade, such as commodity dependence, infrastructure limitations, and regional integration efforts within organizations like COMESA. Additionally, the assignment explores the impact of preferential trade agreements on import flows and the overall implications of international trade for the DRC's economic growth and stability.

Running head: PROTECTION AND FREE TRADE
Protection and Free Trade
Name of the Student
Name of the University
Author Note

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1. Brief overview of the trade history of the chosen countries
Congo-Kinshasa, which is the capital of the Democratic Republic of Congo, was the second
industrially developed country in Africa, after South Africa, during its independence in 1960
(Thomas and Winkler). It was characterized with a thriving mining sector along with a relatively
productive agricultural sector. It is a sparsely populated compared to its area and is a home for a
vast number of natural and mineral resources. It is characterized with deposits of raw minerals,
having an estimated worth of US$24 Trillion (McKnight). Therefore, this country has a history
of trading in various raw minerals, by way of mining products, but it has significantly fallen
since 1980s due to corruption, politics and war, making it a country today, having a the lowest
per capita GDP in the world.
In Sweden, traditionally, there was pursuance of a free trade policy. Sweden was actively
dependent on international trade, which has played significant role in uplifting the development
pattern in order to promote high standard of living. The accessibility to overseas markets has
enabled the industries to expand and specialize. The liberal trade policies in Sweden had led to
promoted imports, competitions and structural change. In 1995, Sweden’s joining of the
European Union marked an important step in the Swedish post-war history (Samuelsson and
Joakim).
2. Social, political and economic overview of the selected nations
In social context Congo Kinshasa has faced highest incidences of poverty in recent trends
however the incidence of poverty is higher compared to other central African countries.
According to recent reports the DRC has a large population of about 65.7 million in 2012
however it has been observed that high population growth rate of 2.7% will intensify the
prevailing social conditions (Pritzkow et al.).According to the estimation of the World Bank,

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approximately 50 million live in Congo-Kinshasa on less than US$1.25 a day (Njuguna). The
issue of poverty has proved to be a major weakness in improving the social conditions of the
Congo-Kinshasa and in recent trends with the growing population the issue of poverty is ever
increasing.
The DRC had faced various political conflicts in the 1990s, leading to a protracted social
and economic slump. Efforts have been made for defusing the political crisis by the Government.
One of these efforts has been in the form of an agreement, signed on 31st December, 2016, which
provides for a transition period in which powers will be held jointly by the President and the
opposition, until the presidential elections in 2017 (Ali, et al.). The agreement also stipulates that
the president cannot seek a third term and the change in the Constitution cannot be attempted.
But, the agreement was not entered into and the 2017 elections got delayed as the revision of the
electoral register was not complete (Samuelsson and Wendell). The political conflicts in the
Congo-Kinshasa created hurdles in economic development of the country. Due to political
conflicts several projects are awaiting approval and due to this reason the organizational growth
of the country is lacking behind. This has proved to be a major weakness to the regions of
Congo-Kinshasa.
In the economical context, DRC has the lowest GDP rate since 2001 due to the declining
prices and the shrinking global demand in raw materials. The DRC also lacks access to
democratic and international financial markets and has faced a drastic reduction in public finance
in 2015 and 2016 (Nicolas et al.). Currently, the Government has launched many reforms and
signed various contracts which are accessible to the public, along with participation in the
Extractive Industries Transparency Initiative (EITI).

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Sweden as a developed country has been considered of having the best and the most equal
standards of living in the world. In the beginning the country had a very low unemployment rate,
which gradually increased in recent trends, affecting large group of people having low
qualifications and immigrants. Moreover, Sweden has a comparatively better labor market and
the liberal legislations regarding immigrants give access to the foreigners into the Swedish labor
market (Munemo). The access to foreigners has been considered as a major strength as it
increased employment opportunities for employment opportunities.
The current Swedish political scene is dominated by the two biggest political parties: Social
Democratic Party and Modern Party. For two centuries, the foreign policy of Sweden has been
based on the principle of non-alignment and neutrality. Moreover, Sweden has been actively
involved in various humanitarian actions along with memberships in many international
organizations like WTO and OECD. Sweden is one of the few countries which were able to meet
UN’s aid target of 0.7% of GNI and the largest contributor to the UN (Potter, Dawson and
Frierson). These factors can be considered as strength of the country as it involved in the
development of various humanitarian activities worldwide.
Economically, Sweden has one of the healthiest economies in EU at present and the 5th
largest GDP per capita. The Swedish Government’s reforms and responsible fiscal policy was
the reason of Sweden’s recovery from the economic crisis in 2008-2009 (Pritzkow et al.). The
revenues are usually high and in the last few years it has been exceeding 50% of GDP. The
Swedish economy is export oriented and produces more than 50% of the GDP (Lawson).
Sweden being a developed country is economically stable and from the very beginning its major
strength was that it has an open economy.

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3. Orography of the selected countries
Congo- Kinshasa, the capital of DRC is situated by the Congo River Basin, which has
been covering an area of almost 1,000,000 square kilometers. The country has its only outlet to
the Atlantic Ocean in the form of a various terror strip of land on the north bank of the Congo
River (Anderton, Brenton and Oscarsson). There is a vast, low-lying central area, which is a
plateau shaped-shaped sloping towards the west and is covered by tropical rainforest and crossed
by rivers. In the west the centre of the forest is surrounded by mountainous terraces in the west
and plateaus merging into the savannahs in the south and the south-west (Potter, Dawson, and
Frierson). Dense grasslands are found beyond the Congo River in the north and in the eastern
border the mountains of Ruwenzori range are found along with Rwanda and Uganda.
Sweden is situated on the Scandinavian Peninsula in the Northern Europe. Sweden has a
geographic feature which includes deep coastline on the eastern side along with the Scandinavian
mountain chain on its western boundary, which has been separating Sweden from Norway.
Sweden has maritime borders with countries like Denmark, Poland, Lithuania, Germany, Russia,
Latvia and Estonia and which are linked to Denmark by the Oresund Bridge (Pritzkow, et al).
Sweden being a developed country is the 56th largest country in the world and the fifth largest in
Europe and Northern Europe (Ali et al.).
4. Infrastructure of the selected nations:
In the Congo-Kinshasa, ground transport has always been challenging as the topography and
humidity of the Congo basin acted as serious obstacles to rail and road constructions.
Furthermore, the chronic mismanagement and internal conflict has also led to serious under-
investment over many years. Congo comprises of thousands of navigable waterways and

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traditionally it has been effective means of transport in travelling around the country. The most
effective means of transport is by air for moving within the country. Air transport is used to
move freight and personnel as well (Ali, et al.).
The transport infrastructure of Sweden is marginally above the EU average for roads, airports
and ports however in case of railroad infrastructure it and is below EU average. Sweden is the
second best country in EU in relation to the timeliness shipments and its TEN-T Core Network
for inland waterways has been complete and 50% of the Core road and conventional rail
networks has also been complete (Odolinski and Jan-Eric).
5. Export value and import value of the selected countries
The DRC has been considered as the 102nd largest export economy in the world and
exported about $5.69B and imported $5.64B in 2015, resulting in a positive trade balance of
$47.5M. In 2015 it was observed that the GDP of the Democratic Republic of the Congo was
$35.2B however its GDP per capita was $784 as well (Cathey, Hong and Pak). As to the top
exports, there are refined copper ($2.67B), copper ore ($376M), cobalt ($755M), Cobalt ore
($666M), Hydroxides ($302M) and cobalt oxides (Charlesworth). The top imports of Congo-
Kinshasa included Packaged Medicaments ($227), Refined Petroleum ($207M), Delivery trucks
($114M) Human/Animal blood ($155M) and Excavation machinery ($113M) (Cathey, Keejae
and Simon).
In the world economy Sweden is the 26th largest export. According to reports, in 2016,
Sweden exported $135B and imported $139B which resulted in a negative trade balance of
$4.24B. The top exports of Sweden are Refined Petroleum ($6.4B), Packaged Medicaments
($5.56B) Telephones ($3.6B), Cars ($7.42B) and Vehicle Parts ($5.01B) (Odolinski, Kristofer,

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and Nilsson). In 2016 Sweden imported $139B however during the last five years the imports
of Sweden have increased considerably to a rate of 1.88%, from $167B in 2011 to $139B in
2016.
6. Trade routes of the selected countries
As mentioned earlier, in Congo, the ground transport has been really weak and hence, trade is
not done by rail or road. But due to navigable waterways across two third of the country, trade is
done by using these water ways to some extent. But air transport is the mostly used transport in
Congo and the transport of minerals and those with high value of weight is also carried out by air
(Nikis, et al). Some parts of DRC are more accessible from the neighboring countries than
Kinshasa, for example the north eastern towns are linked by way of paved roads, in which the
goods are brought in by using this route.
The Swedish used the Volga trade route, which was an ancient trade route. It created a link
between the Scandinavia Kievan Rus and the Eastern Roman Empire. This route provided
opportunities for traders in establishing a direct fortunate trade with the Empire. The bulk of this
route encompasses of long distance waterways that included the Baltic Sea, several rivers as well
as the rivers of Dnieper river system, with portages and drainage divides (Muyingi). There is a
different route along the Dniester River, which pauses on the Shore of the Black sea
(Charlesworth). These are the routes which are used by the Swedish along with some sub routes,
indicated as the Dnieper trade route and Dniester trade route, respectively.
7. Time Frame for Import Export:
Sweden being a developed country the economic development is based upon export-
oriented economy with the help of hydro-power, iron ore and timber. Being a developed country

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Sweden occupies the position of the 26th largest export economy in the world (Yun). In this
regard it can be stated that the process of export and import is basically long which in general
increases the risk of perishable goods (Pritzkow et al.). The top export destinations of Sweden
are Denmark, Norway, Germany and Finland whereas the import origins are China, Belgium,
Germany and Netherlands (Winkler). The product which must be used within a short span of
time is termed as perishable goods. The time span for the process of import and export is quite
lengthy and time consuming and sometimes results in loss if perishable goods are shipped.
The Congo-Kinshasa or the Democratic Republic of the Congo being a developing
country is the 102nd largest exporter in the world. Since time immemorial it has been exporting
cobalt and copper ore however the top imports are human and animal blood and refined
petroleum (Francois and Olga). It is obvious that from the very beginning the top export
destinations of the Congo-Kinshasa China, Saudi Arabia and Zambia while the import origins are
India, South Africa and China. In this regard it is noteworthy to mention that the process of
import and export is very time consuming. Tariffs are collected on all the imported and exported
goods and therefore in case of perishable goods the time span is longer.
8. Transport constraints:
In case of Sweden the process of import and export takes place with the aid of shipping.
However in some cases goods are exported by road and by air. It has been observed that due to
the process of transfer of goods by road several hindrances were faced. There were chances that
overload trucks could lead to accidents and in such cases the exporting country will be subjected
to huge loss (Baaz et al.). In his regard it can be mentioned that the export and import of goods
by road is extremely time consuming and delays the procedure of export and import.

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Being a developing country Congo-Kinshasa has often faced serious issues while
importing and exporting perishable and other goods. In this regard it can be seen that goods are
mainly transported by air, water and by roads. Since safety issues are associated with the
transportation of goods the country from the very beginning focused on the fact that airplanes
and trucks should not be over-jacked (Muyingi). Since Congo-Kinshasa is a developing country
it is not well consistent with the transport mediums and therefore the process of export and
import is inefficient (Munemo).
9. Documentation required for import and export:
Sweden being a developed country has a documentation procedure for import and export.
Sanitary certificates are required in case of commodities that are composed of animal products
and by-products. Single Administrative Document (SAD) is required for movement of goods
across the world which is an essential factor for transport of goods outside EU (Jack, Hong and
Pak). It can be stated that Sweden does not impose any quota on the products manufactured
outside its jurisdiction (Munemo). In this regard it can be mentioned that import documents acts
significantly in these matters.
In case of Congo-Kinshasa documents related to declaration of custom and other
documentations are required on every export and import of goods. Various custom agencies like
DGDA and OCC work closely in these matters. It is essential that exporters must provide
BIVAC with the invoice which contains the description of goods that has to be shipped along
with a statement accepting such inspection (Njuguna). It is required that the original invoice and
the list of goods must contain the net weight, quantity along with the dimension of each packet of
goods that has to be exported (Lawson). In this regard it is noteworthy to mention that the

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original invoice along with the other documents must be verified and duly signed and at the same
time attested by the Ministry of Commerce in Congo-Kinshasa (Muyingi). These documents can
be obtained easily however the delivery of the goods usually takes a long time.
10. Trade Facilitation Roadmap:
A trade facilitation roadmap can be defined as the short comprehensive document which
contains the strategic vision towards trade facilitation reforms by identifying the milestones
required in order to achieve those within a limited period of time. In this regard Sweden being a
developed country is still growing. Sweden and Germany is known to be major trading partners
in the world economy (Sällh et al.). A forum of negotiations, rules and regulations regarding
trade disputes with the member countries has been set up by the World Trade Organization
(WTO). Issues regarding trade disputes are usually discussed in the trade facilities of WTO.
In case of Congo-Kinshasa being a developing country, the transport system can be
improved. Various safety measures should be developed in this regard. With the recent
development in technology larger road vehicles has been manufactured for the purpose of
exporting and importing goods (Lawson). For the purpose of devising new solutions there must
be an implementation of new trade policy framework along with the implementation of new
action plan for roadmap (McKnight). It can be stated that if the facilities of trade is improved in
such country then in the future it may result into speedy transfer of goods within a short span of
time. Improvement of safety measures is important in order to reduce chances of high jacking in
the long run. Port facilities and services have been provided. In order to remove hindrances in the
way of import and export procedures transit port has been introduced.
11. Prioritization of the different areas for improvement:

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Sweden being a developed country needs improvement in areas of import and export. The
process of communication among the importers and exporters should be improved during the
import and export of various goods. The introduction of different vehicles in order to ensure the
effective working of the process of import and export should be enhanced (Sällh et al). In order
to create better relationship with the European Countries Sweden must strengthen its Union
territories in order to ensure better ties with the regional countries (Yun). In order to solve issues
with the regional countries it is required to introduce trade facilitation solution.
In order to strengthen trade facilitation in Congo-Kinshasa the Custom Reform must
adopt certain rules and regulations. The department of human resource management in the
Democratic Republic of the Congo Customs should develop sustainable employment in higher
level for the benefits of economic growth in the future (Samuelsson and Wendell). The
Democratic Republic of the Congo is available for international trade and has been successful in
providing employment opportunities to people for future development (Sällh et al.). In order to
receive more opportunities from international trade structure Congo-Kinshasa must focus on
widening its export base in the long term.
12. Facilitation Trade agreement draft between poor nation and wealthier nation:
In order to implement provisions of the members of the World Trade Organization the
developed countries requires assistance of the WTO who has introduced the Trade Facilitation
Agreement for the purpose of this achievement (Lawson). Trade Facilitation Agreement can be
defined as a draft made between the members of wealthier nations and poor nations. In this
regard it is noteworthy to mention here that Sweden being a developed nation is wealthier as it

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facilitated the trade agreement (Charlesworth). Various international organizations has been set
up in order to facilitate the formation and implementation of trade agreement.
Congo-Kinshasa being a developing country is well assisted by the facilities of trade
Facilitation Agreement (Pritzkow et al.). The draft of the agreement was prepared with an
intention to protect the trade interests of different nations in the process of export and import
(Njuguna). However it is necessary that developing countries like Congo-Kinshasa should act
according to the provisions of the Trade Facilitation Agreement.

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