WT/TPR/S/43 Trade Policies Review
Page 14
II. TRADE AND INVESTMENT REGIMES
(1) INSTITUTIONAL FRAMEWORK
1. The Republic of Mali has been independent since 22 September 1960 and, under the 1992
Constitution, is a pluralist democracy.1 The President of Mali is the Head of State; he is elected by
universal suffrage for a term of five years renewable once only.  The President appoints the Prime
Minister, and the other members of the Government on the proposal of the Prime Minister, who is theHead of Government.  The Government determin es and conducts State policy, disposes of the
administration and armed forces, and enforces the laws.  Parliament consists of a single chamber, the
National Assembly, which exercises legislative power and controls the activities of the Government.
Deputies are elected by direct universal suffrage for five years and may be re-elected.  The National
Assembly votes the laws, including financial laws.
2. The High Council of the Communities is responsible for studying and issuing a reasoned
opinion concerning all local and regional development policies.  It can propose laws to the
Government concerning any question affecting protection of the environment and improvement of
citizens' quality of life within the communities.  The Government is then required to table a bill on the
matter in the National Assembly.  National Councillors (the members of the Higher Council of theCommunities) are elected for five years by indirect suffrage.  They may likewise be re-elected an
unlimited number of times.  Likewise the Economic, Social and Cultural Council draws up for the
attention of the President of the Republic, the Government and the National Assembly an annual
inventory of the expectations, needs and problems of civil society and submits proposals for reforms.
It is required to be consulted on all finance bills, fiscal measures and economic, social and cultural
projects.
3. The judiciary is independent of the Executive and Legislature.  The Supreme Court is the
country's highest court.  It comprises three sections:  the judicial section, the administrative section
and the accounts section.  The decisions of the Supreme Court are not subject to appeal.  The Court of
Appeal is the body where appeals are made against d ecisions issued in civil, commercial and criminal
matters by the courts of first instance, the commercial courts, magistrates with extended competence
and, in social matters, by the labour courts.
2 Mali also has an assize court, administrative courts and
juvenile courts.
4. Commercial courts were established in Mali in February 1988 and placed under the authority of
the Minister of Justice.3 These courts hear disputes relating to transactions between traders, to commercial
acts between individuals and all matters relating to bankruptcy, judicial settlements and liquidation of
assets.  The court consists of a president (magistrate), two judges and two deputies (traders).  When acommercial court is unable to meet, commercial matters are dealt with by a magistrates' court.  Although
the commercial courts are now over ten years old, they do not operate properly.  For example, retail-trade,
handicraft and semi-industrial activities, which are in principle governed by the Commercial Code, Crafts
Code and Investment Code, are not subject to any regulation or penalty.  However, 13 additional judges
were appointed in 1996 and a particular effort has been made to train existing judges.  Despite this,disputes are generally settled out of court, mainly because of the slowness and uncertainty of the judicial
procedures.
                                                     
1The Constitution was adopted by referendum on 12 January 1992 and promulgated by
Decree 2-073 P-CTSP of 25 February 1992.
2Law No. 88-39/AN-RM of 8 February 1988 on judicial reorganization.
3Law No. 88-33/AN-RM of February 1988.Mali WT/TPR/S/43
Page 15
(2) FORMULATION AND IMPLEMENTATION OF POLICIES
5. The Government executes policies which it draws up on the basis of its major guidelines;
each Minister formulates policies in his own field and initiates the relevant preliminary bill.
Proposals may also come from the High Council of the Communities (Section 1 above).  The High
Council may make proposals to the Government on any matter concerning environmental
conservation or improving the quality of life at community level.4  Preliminary bills are adopted by
the Council of Ministers and then become bills which are subsequently forwarded to the Assembly
after, in some cases, consultation of the Economic, Social and Cultural Council (Section 1).  Bills are
discussed by the competent parliamentary committees, which deliver their findings to the Assembly in
plenary session.  Bills are passed after debate in the Assembly, are then signed by the President of the
Assembly and finally are promulgated by decree by the Head of State, thus becoming law.  Billsrejected by the Assembly are sent back to the Government for amendment, if necessary.
6. To carry out its programmes, the Government may request the National Assembly to adopt a
law authorizing it to take measures normally coming within the purview of the legislature, by
ordinance and for a specified period.  Ordinances are adopted by the Council of Ministers after
receiving the opinion of the Supreme Court.  They take effect upon publication, but lapse if theratification bill is not put before the Assembly by the date laid down in the enabling act.
7. Ministers sign international agreements and treaties in their fields of competence on the basis
of the full powers conferred on them by the President of the Republic.
5 International treaties and
agreements which have been signed must be ratified by the National Assembly.  Treaties which
commit public funds or amend legislative measures, as well as those concerning the status of
individuals, may be ratified or approved only by means of a law. The President of the Republic issues
a decree promulgating the law, which is then sent to the Ministry of Foreign Affairs, which draws upthe necessary instruments and informs depositories that ratification has taken place.  The WTO
Agreement was ratified according to this procedure.  Once published, duly ratified or approved
treaties and agreements take precedence over laws, subject to their implementation by the other
contracting parties.
8. The Ministry of Industry, Trade and Tourism
6 bears the main responsibility for devising,
evaluating and implementing the Government's indus trial and commercial policy.  The Ministry is
responsible for the National Investment Promotion Centre, a single window set up and in operation
since 1995.  The Centre helps to simplify the administrative formalities setting up enterprises in all
fields except trade, education, health and communication.  The National Directorate for Economic
Affairs (DNAE) of the Ministry of Trade draws up the import and export programme (IMEX) andforecasts the trade balance for each year. The status of IMEX implementation is periodically assessed
by comparing the Certificates of Intention to Import and Export which have been issued
(Chapter III.(2)(vi) and (3)(iii)) with the actual figures.  Following the trade-liberalization reforms
introduced in 1989, the IMEX programme is being carried out, for guidance purposes, on the basis of
forecasts by the main commercial operators regarding imports, exports, consumption and production,and of the economic outlook.  The Ministry of Finance (through the fixing of tax and duty rates), the
Ministry of Transport (through management of the freight generated by international trade) and the
Ministry of African Integration (through the promotion of intra-community trade) also take part,
among others, in the formulation and implementation of trade and investment policies.  The
                                                     
4The Government must thereupon table a bill in the National Assembly within 15 days.
5Full powers may be conferred on an Ambassador of  Mali to sign on behalf of a Minister who has
detained.
6Mainly the National Directorate for Economic Affairs (DNAE).WT/TPR/S/43 Trade Policies Review
Page 16
Government receives no opinions from university institutions or other research bodies in drawing up
or amending its trade policy.
9. The Chamber of Commerce and Industry and the professional groupings or associations take part
in the interministerial technical committees responsible for preparing government trade and investment
policy.  The Chamber receives a copy of bills, which it discusses with the economic operators concerned
(businesses and/or professional groupings).  The Chamber can put suggestions to the Governmentconcerning bills through the DNAE of the Ministry of Trade.  In the event of disagreement with the
Government, the Chamber of Commerce and Industry can put the matter before the National Assembly.
This happened in 1997 when the Chamber abolished customs duties on flour and the export tax on hides
and skins.
(3)
POLICY OBJECTIVES
10. The chief objective of Mali's economic policy is sustainable economic growth aimed at
reducing poverty.  Trade and investment policies will play a part in achieving this objective by
promoting the production of goods for export and of consumer goods which were formerly imported
and in respect of which Mali enjoys comparative advantages (e.g. livestock products, fruit and
vegetables).  Diversification of exports in terms both of products and of destinations is also envisaged;this will include an increase in the number of locally produced goods and the processing of raw
materials prior to export.  This processing should increase industry's share in the GDP.
11. To attain these objectives, Mali has been carrying out since 1998 a thoroughgoing reform of
its economy, which it is continuing despite two interruptions (Chapter I.2).  Trade liberalization,
which is already far advanced, is aimed at providing regular supplies of consumer and capital goods
for the whole country and at reducing the additional costs caused unnecessarily by distortions due, for
example, to distribution, Mali being a vast land-lock ed territory with high transport costs.  These
reforms are also preparing the country for regional economic integration.  Mali relies on the
multilateral trading system administered by WTO and on the systems being set up at the level of
regional organizations like the West African Economic and Monetary Union (in particular) and the
Economic Community of West African States in order to increase its trade outlets and ensure regular
disposal of its products.
12. The promotion of private national and foreign investment is among the Government's
priorities.  This promotion will be backed by the continued implementation of the privatization
programme, particularly the privatization of major public enterprises such as the Mali
Telecommunications Company (SOTELMA) now bein g planned.  In withdrawing from productive
activities, the State intends to devote its funding to improving social conditions and developingnational infrastructure.  It also intends to continue the tax reliefs granted to investors and the
simplification of the administrative procedures for setting up businesses.  These actions will also help
to promote private investment by improving competitiveness.
(4)
LAWS AND REGULATIONS
13. Since 1988 Mali has carried out a sweeping revision of its laws and regulations in order to
back up the liberalization of its economy.  Implementation of the provisions of the Treaty of the
Organization for the Harmonization of Business Law in Africa (OHADA) should permit an overhaul
of the Mali Commercial Code of August 1992 and standardization of the rules on:  company law and
the juridical status of traders; debt collection, sureties and enforcement procedures; the business-
rehabilitation and judicial winding-up regime; and accounting law on arbitration, labour, selling andMali WT/TPR/S/43
Page 17
transport.7 The introduction of the different proposed texts within the WAEMU framework should
strengthen Mali's trade and investment legislation.
(i) Trade legislation
14. Mali acquired trade legislation between 1986 and 1996.  The Commercial Code of
August 19928 comprises laws, decrees, ordinances and orders governing trade activities and
investment in Mali.  The Code also covers company law, the law on contracts and, more generally, theregulation of commerce and production linked occupations (commercial agent, accountant, auditor,
legal officer).  This legislation covers domestic and foreign trade.
15. Trade between Mali and other countries is also governed by the 1965 Customs Code and
ministerial decrees and orders.  The code defines, inter alia , the framework in which most import and
export duties and taxes are fixed and levied; it also defines the functions of the Higher TariffCommittee and its membership (Chapter III(2)(ii)).  Decree 89-194/P-RM of 15 June 1989 regulates
external trade: it introduces Certificates of Intention to Import and Export (Chapter III(2)(vi) and
(3)(iii)).  Orders No. 89-182 bis/MFC-CAB of 15 June 1989 and No. 90-2442/MFC-CAB of
14 August 1990 lay down the list of products whose import and export are prohibited.
16. Mali has a Labour Code
9 containing numerous provisions on prior authorization (e.g. for
overtime in certain sectors).  Likewise, while authorization by the Labour Inspectorate is no longer
compulsory for dismissals, the administrative formalities are still cumbersome.  Private employment
agencies are authorized in addition to the National Labour and Employment Office; 39 have been
approved but only three are in operation.
(ii) Investment Code
17. The latest Investment Code dates back to March 1991.10 Its purpose is to mobilize national
savings and foreign capital, encourage transfers of technology, train skilled labour, create jobs,modernize the industrial, agricultural, forestry and animal-production infrastructure, encourage
investment in the exporting industries, promote the creation of small and medium enterprises (SMEs),
encourage investment in the least-developed regions of the country and promote the privatization of
State enterprises.  The Code guarantees commercial freedom and freedom to repatriate capital for
foreign investors and expatriate wage-earners.  Nevertheless, for reasons of public utility, the Statereserves the right to limit foreign investment in certain sectors (defence and security).
18. The Investment Code provides for three regimes:   regime A for the SMEs, regime B for large
enterprises, and the free-zone regime. Depending on the regime, enterprises receive exemption: for
five and eight years (regimes A and B) from the tax on industrial and commercial profits and from the
business tax, property tax and tax on property in mortmain for new constructions (regime A); and forthree years from registration fees on enterprise-creation and capital-increase acts (A and B regimes).
Besides these advantages, enterprises which establish themselves in as yet inadequately industrialized
zones qualify for exemption from the tax on industrial and commercial profits and from the business
tax for two additional years in zone II (Koulikoro, Sikasso and Ségou regions) and for four additional
                                                     
7Three uniform acts concerning the law on commercial companies and economic interest groupings,
general commercial law and the organization of suretie s were adopted on 17 April 1977 by the Council of
Ministers of the OHADA.
8Law No. 92-002/AN-RM of August 1992 in place of Law No. 86-13/AN-RH of March 1986.
9Law No. 92-020/AN-RM of 18 August 1992.
10Law No. 91-048/AN-RM of 26 February 1991 promulgated by Decree No. 91-079 P-RM of
4 March 1991.WT/TPR/S/43 Trade Policies Review
Page 18
years in zone III (Kayes, Mopti, Timbuctoo, Gao and Kidal regions).  In addition, mainly export-
oriented enterprises (over 80 per cent of production exported) come under the free-zone regime (free
enterprises).11 These enterprises enjoy total exemption from all duties and taxes (including import
duties) arising from their export activities for 30 years; fraudulent sales (on the domestic market)
could give rise to unfair competition with respec t to other local enterprises which produce the same
goods for the domestic market and which are therefore not eligible for this regime.
19. A single window, set up under the National I ndustry Directorate (DNI) of the Ministry of
Industry, Trade and Crafts, administers the enterprise-approval procedure. The assessment criteria for
a project include:  the direct value added, the contribution of external financing, establishment of the
head office in Mali, the degree of the enterprise's integration with the national economy, the effect of
the investment on the trade balance, and the envi ronmental effects.  On receipt of a favourable
opinion, approval is granted by order of the Minist er for Industry and Trade within 30 working days
from the date when the dossier is received.
20. A community Investment Code is scheduled to be introduced within the WAEMU framework.
Theoretically this should provide specific benefits at the investment stage (import of capital goods at the
lowest rate of the Common External Tariff) as well as during operations (reduction of certain directtaxes).
(iii) Mining Code
21. Ordinance No. 91-065/P-CTSP of 19 September 199 1 organizes the prospecting, exploitation,
possession, transport, processing and marketing of mineral, fossil or quarry substances other than
liquid or gaseous hydrocarbons on Mali territory.  Mining rights are accompanied by an establishment
agreement defining in particular the tax conditions and the legal, economic and financial advantages.
Decree No. 91-277/PM-RM determines the procedur es for implementing the Ordinance and Decree
No. 91-278/PM-RM sets out the standard establishment convention for the prospecting and
exploitation of mining substances.  The mining le gislation offers administrative, mining and real-
estate guarantees as well as guarantees of non-expropriation and of transfers of mining-linked funds,
including transfers of staff savings.
22. The tax allowances provided are: exemption from all taxes (including VAT and the tax on the
provision of services), duties, contributions and all other direct and indirect taxes (except taxes on the
issue or renewal of permits or authorizations, the additional surface fee and the social charges and
contributions due from employers and employees); and the deduction from the net taxable profit of
certain costs and charges such as interest paid to third parties.  Unlike this latter advantage, which covers
the whole production period, and the profits tax exemption, which covers the five years following initialproduction, most tax allowances end after the first three years of production.  The same applies to
customs concessions, namely:  the temporary pro rata temporis import scheme which is free of charge for
equipment intended for re-export after prospecting or exploitation work; exemption from import duties
and taxes on raw materials, equipment, materials, machines, appliances and tools to be used in mining
activities (i.e. to become a permanent part of the mine); exemption from exit duties and taxes as well asfrom all taxes on export turnover and all duties and taxes on export earnings; and exemption from exit
duties and taxes on re-export of equipment used in carrying out prospecting and exploitation.
                                                     
11Decree No. 95-423/P-RM of 6 December 1995.  At the end of 1997 no free enterprise had been
established in Mali.Mali WT/TPR/S/43
Page 19
(5) TRADE AND INVESTMENT AGREEMENTS AND ARRANGEMENTS
(i) Multilateral agreements
23. In January 1993 Mali inherited the status of contracting party in accordance with
Article XXVI(5)(c) after having applied the GATT de facto from June 1967.  It was neither an
observer of, nor a signatory to, any agreement resulting from the Tokyo Round.  Mali became a
Member of WTO on 31 May 1995 after ratifying the Uruguay Round Agreements.  It is not asignatory to any plurilateral agreement resulting from that Round.
24. Mali applies at least most-favoured-nation (MFN) treatment to all countries except Israel
(Chapter III(2)(x)).  Mali has given a number of undertakings under the Uruguay Round
(Chapters III(2)(iii)(c) and IV(5)).  As a developing (or, more precisely, least-advanced) country, Mali
should particularly benefit from the strengthening of rules and discipline which has been effected inthe multilateral trading system and in sectors like agriculture, including livestock production, which
are particularly important to it.  As a raw-materials producer, Mali does not experience much
difficulty in gaining access to foreign markets, as these products are generally subject to zero or very
low MFN duties on entering the importing countries.
25. Mali's main concern is to increase and diversify production in order better to exploit existing
possibilities and those which will result from the continuation of liberalization at multilateral level.
Mali's unilateral trade reforms have put it in a better position to pursue such liberalization.  An
integrated assistance programme in the trade field for the least-advanced countries (including Mali)
was launched by WTO with other international organizations at the high-level meeting in
October 1997 in Geneva; the objectives of the programme include increasing and diversifying the
production of those countries.  While recognizing the need to continue improving the quality of its
products, Mali indicates technical barriers to trade as one of the fields requiring particular attentionwithin the multilateral trading system.
26. Table II.1 shows the notifications given by Mali in connection with its implementation of the
Uruguay Round results.  In accordance with the monist system prevailing in Mali, the WTO Agreements
can be directly invoked before the domestic courts since, being international, they take precedence over
domestic law.  However, according to the authorities, discussions are taking place in the regional bodiesto which Mali belongs, in particular the WAEMU and the African Intellectual Property Organization,
with a view to adapting legislation to WTO provisions.
Table II.1
Notifications by Mali within the framework of implementation of the WTO Agreements, October 1997
Agreement Notification
Implementation of Article VII of GATT (Article 20.1) Application deferred (WTO document WT/LET/78, 26 April 1996).
Import licensing procedures (Article 7.3)) Absence of import licences but existence of regulatory texts on similar
administrative formalities, and a prohibition regime (WTO document
G/LIC/N/3/MLI/1, 10 June 1997).
Pre-shipment inspection (Article 5) Relevant national laws and regulations (WTO document G/PSI/N/1/Add.7,
8 September 1997).
Trade-linked investment measures (Article 5.1 and General
Council Decision of 3/04/95)Absence of such measures inconsistent with the provisions of Articles III
and XI of GATT 1994 (WTO document G/TRIMS/N/1/MLI/1,
9 June 1997).
Source: WTO Secretariat.WT/TPR/S/43 Trade Policies Review
Page 20
27. Mali is a member of the United Nations and its agencies, as well as of several other
multilateral organizations, including the International Monetary Fund and the World Bank.
(ii) Regional agreements
28. Economic and political integration with other African countries appears in the preamble to the
Malian Constitution.  The creation of the Ministry of Regional Integration is an expression of this
desire.  Mali's development level and land-locked situation justify such an option, the limits of whichrange from similarity between the goods offered by the countries in the same region to the (more
substantial) risks of trade disputes which are not always easy to settle at regional level.
29. Mali is a founder member of the Organization of African Unity (OAU), the African Economic
Community (AEC), the West African Economic Community (ECOWAS), the West African Economic
and Monetary Union (WAEMU)
12, the Standing Inter-State Committee on the Control of Drought in the
Sahel (CILSS)13, the Organization for Development of the Senegal River (OMVS)14 and the Organization
for the Harmonization of Business Law in Africa (Section 4).
(a) Organization of African Unity (OAU) and African Economic Community (CEA)
30. The Charter establishing the OAU was signed on 25 May 1963.15  Like the other OAU
members, Mali signed, in June 1991 at Abuja (Nigeria), the CEA Treaty provided for by the 1980Lagos Plan of Action.  This Treaty provides for the creation of a Pan-African Economic and Monetary
Union (with a parliament) over a period of 34 years.  The bodies and headquarters of the CEA are
those of the OAU.  The Community is taking some time in actually starting up its activities.
(b) Economic Community of West African States (ECOWAS)
31. The ECOWAS Treaty was signed on 28 May 1975.  The ECOWAS trade-liberalization
scheme has two main aspects:  the elimination of all non-tariff barriers, namely licences, quotas,
prohibitions and other administrative barriers, in respect of all products originating within ECOWAS;
and a gradual and total reduction of tariff barriers.  The 1993 amendment to the Treaty provides,
inter alia , for the free movement of services, capital and persons within the Community at the end of
the five-year period following the establishment of the customs union planned for the year 2000.
16
Local and handicraft products appearing on the list of goods selected by the community shouldalready be circulating free of all import duty if they are accompanied by a certificate of origin issuedby the Ministry of Industry and Trade.
32. Finished manufactured goods originating w ithin the community are subject to tariff
reductions based on such criteria as the level of industrial development of each country and its island
or land-locked situation.  A finished product is re garded as originating within ECOWAS if at least
60 per cent of the raw materials used in its manufacture originate in the Community or if the value
                                                     
12The WAEMU was formerly confined to the West African Monetary Union (WAMU).  The countries
members of the WAEMU are Benin, Burkina Faso, Guinea-Bissau, Mali, the Niger, Senegal and Togo.  Thecountries members of ECOWAS are Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, Gambia, Ghana, Guinea,Guinea-Bissau, Liberia, Mali, Mauritania, the Niger, Nigeria, Senegal, Sierra Leone and Togo.  All WAEMUcountries are also members of  ECOWAS.
13The other members of the CILSS are Burkina Faso, Cape Verde, Chad, Gambia, Guinea-Bissau,
Mauritania, the Niger and Senegal.
14The other members of the OMVS are Mauritania and Senegal.
15Nearly all African countries are OAU members.
16WTO (1998) and WTO document WT/WGTI/W/22 of 26 January 1988.Mali WT/TPR/S/43
Page 21
added is at least equal to 35 per cent of the cost price excluding tax (ex-factory).  Products must be
approved under the scheme adopted by the ECOWAS  Council of Ministers.  The timetable for the
gradual reduction of import-duty rates is not being respected.17
(c) West African Economic and Monetary Union (WAEMU)
33. The WAEMU Treaty was signed on 11 January 1994 by the countries members of the former
West African Monetary Union (WAMU).18  Guinea-Bissau signed the Treaty on 1 January 1997.  The
aim of the treaty is to create an economic union by bringing about the convergence of macroeconomic
and sectoral policies and the harmonization of fiscal legislation.  Monetary integration, with a central
bank (the Central Bank of West African States) and a common currency (the CFA franc), has already
been achieved, the WAMU having attached importa nce to this (Annex I.1).  The free movement of
persons, goods, services and capital is one of the union's principles.  The head office of the WAEMUCommission is at Ouagadougou (Burkina Faso) and th at of the Central Bank is in Dakar (Senegal).
34. As a preliminary to the creation of the customs union, a preferential trade agreement
19 concluded
between member countries in December 1995 provides for the gradual introduction of a preferential
community tariff, specifies the regime and customs procedures applicable to the movement of goods
within the union and defines the regime for, and allocation of, the Community Solidarity Levy.20  The
structure of the common external tariff (CET) and the stages for introduction of the customs union (from
July 1998 to January 2000) were indicated in November 1997 (Table II.2).  The breakdown of products
according to the CET structure (with four rates ranging from 1 per cent to 21 per cent, including the 1 per
cent statistical fee) must be effective not later than 1 July 1998, while harmonization of the country's
domestic taxation is envisaged for some time in 1998.
35. A degressive protection tax whose parameters (products covered, rates and duration) will be
determined by the Council of Ministers is planned in order to give certain "particularly sensitive"products additional temporary protection which will allow the necessary adjustments to be made.  The
same applies to the short-term import tax which is designed to neutralize possible erratic fluctuations
in world prices.  Technical barriers to trade will be harmonized and new rules of origin (with the
possibility of mixed origins at regional level) will be introduced; a product is currently said to be
originating in a union country if at least 60 per cent of the raw materials used in its manufacture comefrom that country or if the value added is at least 40 per cent of the cost price excluding tax
(ex-factory).  A regional financial market is being created and a community investment code should
be published before the end of 1998; the code will not allow exemptions. A community competition
policy is also to be drawn up.
                                                     
17The 16 ECOWAS countries are classified into three groups: (1) Cape Verde, Gambia, Guinea-Bissau,
Burkina Faso, Mali, Mauritania and the Niger, for which the reduction should be 10 per cent a year, i.e. abolition ofcustoms duties over ten years; (2) Benin, Guinea, Liberia, Sierra Leone and Togo, for which the reduction should
be 12.5 per cent, i.e. abolition of customs duties over eight years;  (3) Côte d'Ivoire, Ghana, Nigeria and Senegal,
for which the reduction should be  16.6 per cent a year, i.e. abolition of customs duties over six years.
18Mali left the franc zone and thus the Union in 1962;  it rejoined them in 1984.
19This was the subject of two additional acts, the first in April 1996 and the second in January 1997.
20The proceeds of the levy are to help offs et any negative effects of integration.WT/TPR/S/43 Trade Policies Review
Page 22
Table II.2
Introduction of the WAEMU common external tariff
Import categories From 01/07 to
31/12/19981999 From 01/01/2000
Extra WAEMU (MFN duties)
Category 0 00
Category 1 maximum 5% 5%
Category 2 maximum 10% 10%
Category 3 maximum 30% maximum 25% 20%
Community Solidarity Levy (PCS) 0.5 % 0.5 % 0.5 %
Levy on behalf of ECOWAS (0.5 %) (0.5 %) (0.5 %)
Statistical Fee (SF) Free Free Free
Degressive Protection Tax (DPT)
Short-Term Import Tax (STIT)Products, rates and duration will be fixed by the Council of Ministers on a
Commission proposal before end June 1998
Intra WAEMU (level of MFN duty abatement)
Local products 100% 100% 100%
Approved originating products 60% 80% 100%
Non-approved originating products 5 points 5 points 100%
Other products 0 0 0
Source: WAEMU Commission.
(iii) Other trade agreements or arrangements
36. Mali is a signatory to the Fourth Lomé Convention between the European Union and
71 developing countries of sub-Saharan Africa, the Caribbean and the Pacific (ACP States).  This
Convention, which was signed in 1990 for ten years, was revised in 1995.  Under the convention, a
product is regarded as originating in a ACP country if  it is wholly produced or sufficiently processed
in that country.  Non-originating materials are regarded as having been sufficiently finished orprocessed when the product obtained is classified under a code differing from that under which all the
non-originating materials used in its manufacture are classified.  Subject to a safeguard clause, exports
of products originating in Mali, apart from those covered by the Common Agricultural Policy (CAP),
are exempted from all import duties on the European market.  For agricultural products covered by the
CAP, the EU grants treatment at least as favourable  as that accorded to countries subject to its MFN
regime.
37. Mali receives EU aid through the European Development Fund (EDF) and has benefited from
the system for stabilizing export earnings (STABEX).
21  In the case of Mali, STABEX has
compensated for losses of earnings on exports of cotton and its derivatives, groundnuts and its
derivatives, shea nuts and gum arabic.  Mali has received ECU 9.7 million under Lomé I for these
products, ECU 10.7 million under Lomé II for groundnut products and shea nuts, ECU 20 million
under Lomé III for cotton and around ECU 1 million under Lomé IV for the latter product.  However,
                                                     
21STABEX is designed to compensate for losses of earnings on exports destined for the EU in respect of
50 agricultural products (Articles 186 et seq. of the Convention). Mali could be eligible for the special miningproducts financing facility (SYSMIN) under Article 214 et seq. of the Convention.Mali WT/TPR/S/43
Page 23
Mali has received no compensation under STABEX since 1992 as it has not lost earnings relating to
cotton exports since then.
38.  Other developed countries (other than EU c ountries) grant trade preferences to Mali under
the Generalized System of Preferences.  Preferences granted by developed countries, including EU
countries, are non-reciprocal.  Mali is a signator y to the Agreement on the Global System of Trade
Preferences (GSTP) concluded between the developing countries.  However, owing to the lack ofinformation on the benefits granted by different countries under the system, its small range of export
products and the absence of market problems for its exports (specifically cotton and gold) Mali has
not yet benefited from the GSTP.
39. Mali has signed several bilateral trade agreements.  The one signed with Algeria in July 1996
contains provisions relating to payment and credit facilities, the organization of, or participation in, tradefairs and exhibitions and respect for intellectual property rights.
(iv) Trade disputes and consultations
40. As of July 1998, Mali had not been directly involved, either as a plaintiff or as a defendant, in
any dispute settlement procedure within GATT, WTO or any other trade agreement to which it is a
signatory.
41. The ECOWAS and WAEMU Treaties each provide for a Court of Justice and for dispute
settlement bodies.  Within ECOWAS, disputes may be settled amicably, subject to approval by the
Conference of Heads of State.  In the absence of such a settlement, the dispute may be brought before
the Executive Secretariat of ECOWAS by any of the parties, by any member State or by the
Conference.  The dispute is then submitted to the Trade, Customs, Immigration, Monetary and
Payments Commission, which issues recommendations to the Council of Ministers.  Failing a
settlement, the dispute is brought by one of the parties before the Community Court, whose decisions
are final.  However, the Court of Justice pr ovided for under the ECOWAS Treaty is still not
operating.
42. Within the WAEMU framework, the Commission, as well as any member State, can lodge an
appeal when it considers that a State has failed to respect its obligations under the Treaty.  Under the
arrangements for reviewing the legality of bodies in regard to regulations, directives or decisions, anappeal
22 can be lodged by the Council of Ministers of the WAEMU, the Commission, a member State or
a private party (natural or legal person).23  A possible penalty is total or partial nullity of the act.  The
Court can also rule on disputes between the WAEMU and its agents and on disputes relating to the extra-
contractual responsibility of the union for acts committed by its bodies or agents.  Via an appeal for
arbitration, the Court can deal with disputes between member States with respect to the treaty, as soon asthose States have concluded a compromise to that end.  The Council of Ministers, the Commission or a
member State can also obtain the Court's opinion on the compatibility of an international agreement, or an
agreement which is being negotiated, with the provisions of the WAEMU Treaty.  The Court can also be
requested by the same institutions and by the Conference of Heads of State and of Government to deliver
an opinion on any difficulty encountered in applying or interpreting acts coming under community law.
24
                                                     
22The appeal must be lodged within two months after publication of the act, its notification to the person
concerned or the moment when the latter was made aware of it.  Nevertheless, even after the two-month period has
expired, any party may claim that a Council or Commission act is illegal as a means of defence.
23The private party concerned must show that the act in question has done him personal harm.
24Articles 38 and 39 of the Treaty and Additional Protocol No. 1 concerning the supervising bodies of the
WAEMU (Articles 1 to 22) of 10 January 1994.WT/TPR/S/43 Trade Policies Review
Page 24
43. Any State which is a member of the Organizati on can appeal to the common Court of Justice
and Arbitration of the OHADA.  The Court rules on decisions handed down by the national courts.25
The judgements of the Court are final and enforceable.  The Court can also be requested to settle adispute on the basis of an arbitration procedure. The Court does not settle disputes itself; it appoints or
confirms the arbitrator or arbitrators (not more than three) and examines the draft awards.  Awards are
final and enforceable.  Disputes concerning the interpretation or application of the Lomé Conventioncan be submitted to the Council of Ministers se t up under the Convention.  If the Council reaches no
solution, it can initiate an arbitration procedure at the request of either party.
44. Despite the existence of these provisions, Mali prefers, according to the authorities, to settle
disputes out of court.
(v) Investment agreements or arrangements
45. Mali ratified the Convention Establishing the Multilateral Investment Guarantee Agency in
October 1990.  The Lomé Convention between th e ACP States and the European Union embodies
principles for protecting European investments in  the ACP countries (Articles 260, 261 and 262 of the
Convention).
                                                     
25The national courts have been responsible up to now for applying company and contract law.