Guinea-Bissau’s economy is heavily reliant on subsistence farming, cashew nut exports, and foreign aid. Mineral resources, such as aluminum ore, phosphates, and mineral sands, have significant development potential. Exploration for oil and gas off the coast has commenced. The temperature and soil of the nation allow for the cultivation of a wide range of fruits, cash crops, tubers, and vegetables. Guinea-GDP Bissau was predicted to be $1.4 billion in 2019 (at current market exchange rates), with a real GDP increase of 4.6 percent and a population of 2 million.
Trade and Investment Framework Agreement (TIFA)
In 2019, Guinea-Bissau was the US’s 218th largest goods export market. In 2019, US goods exports to Guinea-Bissau totaled $1 million. Meat, machinery, automobiles, chemical items, and electrical machinery were the top export categories that year. The United States exported $306 thousand worth of agricultural products to Guinea-Bissau. Guinea-Bissau was the 207th largest importer of commodities into the United States that same 2019. Imports of goods from Guinea-Bissau to the United States totaled $2 million up 909.4 percent from the previous year. Edible fruit and nuts (cocoa, brazil, cashew), equipment, special other (returns), and special other (low-value estimations) were the top import categories. In 2019, the United States imported $2 million worth of agricultural products from Guinea-Bissau.
World Trade Organization (WTO)
Guinea-Bissau has been a member of the World Trade Organization (WTO) since May 31, 1995, and of the General Agreement on Tariffs and Trade (GATT) since March 17, 1994.
Mano River Union
Guinea is a member of the Mano River Union, which sets harmonized tariffs for Guinea, Sierra Leone, and Liberia.
Economic Community of West African States (ECOWAS)
Guinea is also a member of the Economic Community of West African States (ECOWAS), which consists of 15 countries; Guinea-Bissau, Togo, Liberia, Benin, Nigeria, Sierra Leone, Cote d’Ivoire, Niger, Burkina Faso, Cape Verde, Ghana, Guinea, Liberia, Mali, and Senegal. The Economic Community of West African States (ECOWAS) is working to establish a customs union among its members, allowing for the free flow of products and services between member countries.
African Continental Free Trade Area
The African Continental Free Trade Area has Guinea as a signatory (AfCFTA). The African Continental Free Trade Area (AfCFTA) went into effect on May 30, 2019, to create a single market for products and services with free movement of people and money, expanding intra-African trade, and improving Africa’s global competitiveness. The AfCFTA will establish a continental customs union and eliminate tariffs on 90% of traded commodities. Under the AfCFTA agreement, African countries opened their markets to duty-free goods and services trade on January 1, 2021.
The European Union and ECOWAS
The Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU) have signed an Economic Partnership Agreement with the EU. The West African Economic Partnership Agreement (EPA) involves both commodities and development cooperation. In addition, the EPA incorporates the prospect of future agreements on sustainable development, services, investment, and other trade-related concerns. The EPA will assist West Africa in better integrating into the global trading system while also encouraging investment and economic progress in the region. Increase West African exports to the EU, promote investment, and aid in the development of productive capacity, all of which will benefit employment.
Guinea-Bissau and India Trade Agreement
In May 2008, India offered Guinea Bissau the Duty-Free Tariff Preference (DFTP) Scheme. The Scheme is scheduled to begin operating shortly after Guinea Bissau accepts it and signs the Letter of Intent.
