RESTRICTED
WORLD TRADE WT/TPR/S/2
6June1995
ORGANIZATION(95-1494)
TRADE POLICY REVIEW MECHANISM
REPUBLIC OFCÔTED'IVOIRE
Report bytheSecretariat
Thisreport, prepared forthefirstreview ofCôted'Ivoire 'strade policy, hasbeendrawn up
bytheSecretariat onitsownresponsibility. Asprescribed intheAgreement establishing theTrade
Policy Review Mechanism (Annex 3totheMarrakesh Agreement establishing theWorld Trade
Organization), theSecretariat sought clarification from theGovernment ofCôted'Ivoire ofitstrade
policies andpractices.
Document WT/TPR/G/2 contains thegeneral policy declaration submitted bytheGovernment
ofCôted'Ivoire.
_________________________________ ___________________________________________________
Note:Thisreport haslimited distribution andissubject toapress embargo untiltheendofthemeeting
oftheTrade Policy Review Body dealing withCôted'Ivoire.Republic ofCôte d'Ivoire WT/TPR/S/2
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CONTENTS
Page
SUMMARY OBSERVATIONS xiii
(1) Côted'Ivoire inworld trade xiv
(2) Institutional framework xiv
(3) Trade policy features andtrends xv
(i) Recent evolution xv
(ii) Type andincidence oftrade policy instruments xvi
(iii) Temporary measures xviii
(4) Trade policies andforeign trading partners xviii
I. THE ECONOMIC ENVIRONMENT 1
(1) Major features oftheeconomy 1
(2) Economic developments 3
(3) Realeffective exchange rateandterms oftrade 6
(4) Recent economic developments 8
(i) Fiscal reform 8
(ii) Reform ofmonetary policy 9
(iii) Reform oflabour legislation 9
(iv) Trade andinvestment policy reform 9
(5) Trade performance 10
(i) Commodity pattern oftrade 10
(ii) Regional pattern oftrade 12
(iii) Trade inservices 13
(6) Outlook 16
Annex I.1 Foreign exchange regime 17
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 19
(1) General framework 19
(2) Structure oftrade policy formulation 19
(i) Executive branches oftheGovernment 19
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(ii) Advisory bodies 20
(iii) Review bodies 20
(3) Trade policy objectives 21
(i) General trade policy objectives 21
(ii) Sectoral trade policy objectives 21
(iii) Côted'Ivoire intheUruguay Round 22
(4) Trade lawsandregulations 23
(5) Trade agreements andarrangements 24
(i) Multilateral agreements 24
(ii) Regional agreements 24
(iii) Bilateral agreements 25
(iv) Other agreements orarrangements 25
III. TRADE-RELATED ASPECTS OFINVESTMENT POLICIES 27
(1) Draft Investment Code of1995 28
(2) Investment formalities 30
(3) Other investment-related measures 32
(4) Direct investment trends andprospects inCôted'Ivoire 32
IV. TRADE POLICIES AND PRACTICES BYMEASURE 33
(1) Introduction 33
(2) Measures directly affecting imports 33
(i) Registration, documentation andinspection 34
(ii) Import duties 37
(iii) Customs valuation 45
(iv) Prohibitions andquantitative restrictions onimports 46
(v) State trading andimport monopolies 48
(vi) Countertrade 49
(vii) Standards andecological andother technical requirements 50
(viii) Government procurement 51
(ix) Anti-dumping, countervailing andsafeguard measures 53
(x) Measures implemented inexporting countries 53
(xi) Free-trade zones andexport processing zones 53
(xii) Requirements concerning theproportion ofcomponents
ofnational origin 53
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(3) Measures directly affecting exports 53
(i) Regulations 54
(ii) Export taxes 55
(iii) Environmental protection measures 57
(iv) Export licensing andprohibitions 57
(v) Quotas andother measures restricting exports 57
(vi) State trading 57
(vii) Export cartels 57
(viii) Export subsidies 58
(ix) Duty andtaxconcessions 58
(x) Export promotion, marketing assistance 58
(xi) Export credit insurance 58
(4) Measures affecting production andtrade 58
(i) Public enterprises andtheprivatization process 59
(ii) Taxandinvestment legislation 61
(iii) Production subsidies 62
(iv) Regulation ofpricing andmarketing 63
(v) Legislation oncompetition 64
(vi) Measures fortheprotection ofintellectual property rights 64
V. TRADE POLICIES AND PRACTICES BYSECTOR 69
(1) Introduction 69
(2) Agriculture, fisheries, forestry andrelated industries 70
(i) Coffee, cocoa andproducts thereof 71
(ii) Other export crops andproducts thereof 80
(iii) Cereals, vegetables andother foodcrops 88
(iv) Livestock, meat, dairy products 89
(v) Fish, shellfish andproducts thereof 90
(vi) Beverages andtobacco 91
(vii) Forestry andwood products 91
(3) Energy andmining sectors 94
(i) Crude petroleum andproducts thereof 94
(ii) Natural gas 95
(iii) Electricity 95
(4) Manufacturing sector 97
(i) Textiles andclothing 97
(ii) Rawhides andskins, leather andfurskins, footwear andtravel goods 99
(iii) Wood, paper andprinting products 99
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(iv) Chemicals 99
(v) Mineral products 101
(vi) Metals andmetal products 101
(vii) Machinery andequipment 102
(viii) Transport equipment 102
(5) Services 103
(i) Water 103
(ii) Construction 104
(iii) Wholesale andretail trade 105
(iv) Tourism, catering andthehotel industry 105
(v) Transport andstorage 106
(vi) Postal, telecommunications andaudiovisual services 110
(vii) Financial, insurance andother commercial services 111
VI. TRADE DISPUTES AND CONSULTATIONS 115
(1) GATT andWTO dispute settlement 115
(2) Other disputes 116
REFERENCES 117
APPENDIX TABLES 121
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CHARTS
Page
I. THE ECONOMIC ENVIRONMENT 1
I.1 Growth ingross domestic product, 1980-95 1
I.2 Budget andcurrent account deficits, 1980-94 5
I.3 Share oftrade ingoods andnon-factor services inGDP, 1980-94 5
I.4 Realeffective exchange rateinterms oftrade, 1980-94 7
I.5 Rateofexchange withthecurrencies ofNigeria andGhana, 1980-94 8
I.6 Imports ofCôted'Ivoire bysource, 1990 and1992 13
I.7 Trade inServices, 1985-93 15
III. TRADE-RELATED ASPECTS OFINVESTMENT POLICIES 27
III.1 Netdirect foreign investment, 1976-94 28
IV. TRADE POLICIES AND PRACTICES BYMEASURE 33
IV.1 Share offoreign trade levies intheState Budget, 1994 34
IV.2 Import formalities inCôted'Ivoire 35
IV.3 Average import duties bysector anddegree ofprocessing, 1995 39
IV.4 Government procurement andmethods thereof, 1978-94 51
IV.5 State subsidies forenterprises inthemodern sector, 1973-94 62
V. TRADE POLICIES AND PRACTICES BYSECTOR 69
V.1 Cocoa andcoffee prices, 1980-94 72
V.2 Industrial electricity prices inselected countries, 1992 96
V.3 Water prices inselected countries, 1992 104
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TABLES
Page
I. THE ECONOMIC ENVIRONMENT 1
I.1 Comparative economic indicators 2
I.2 External debtanddebtservicing, 1970-94 6
I.3 Principal exports: exports andmarket share, 1987-91 11
I.4 Payment ofnon-factor services, 1985, 1990 and1993 14
IV. TRADE POLICES AND PRACTICES BYMEASURE 33
IV.1 Duties andtaxes levied onimports, 1994 37
IV.2 Products andactivities exempt from VAT, October 1994 41
IV.3 Summary ofcharges affecting imports: theexample ofbeer 42
IV.4 Reference prices applicable tothecustoms valuation ofimports, 1994 43
IV.5 Products subject toaregime ofimport permits orrestrictions, 1994 47
IV.6 Reference prices applicable tothecustoms valuation ofexports 56
IV.7 Selected public andsemi-public enterprises andenterprises included inthe
privatization programme 60
V. TRADE POLICIES AND PRACTICES BYSECTOR 69
V.1 Coffee andcocoa, selected economic indicators, 1970-94 71
V.2 Reductions incustoms dutyincertain coffee-importing countries 77
V.3 Reductions incustoms dutyincertain cocoa-importing countries 79
V.4 Measures affecting banana imports intotheEuropean Union, March 1994 82
V.5 Palm oil,selected economic indicators, 1988-94 83
V.6 Cotton fibres, selected economic indicators, 1988-94 85
V.7 Natural rubber, selected economic indicators, 1988-94 87
V.8 Wood, selected economic indicators, 1988-94 92
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APPENDIX TABLES
Page
AI.1 Exports byproduct group, 1965-92 121
AI.2 Imports byproduct group, 1965-92 122
AI.3 Imports byregion, 1965-92 123
AI.4 Exports byregion, 1965-92 124
AV.1 Listofabbreviations usedinTables AV.2 toAV.15 125
AV.2 Trade measures applied toagriculture, forestry andfisheries, 1995 126
AV.3 Trade measures applied tofoodproducts, beverages andtobacco, 1995 127
AV.4 Trade measures applied tomining, quarrying andenergy, 1995 128
AV.5 Trade measures applied totextiles, clothing, hides andfootwear, 1995 129
AV.6 Trade measures applied towood, wood products, paper andpaper
products, 1995 130
AV.7 Trade measures applied tochemicals, 1995 131
AV.8 Trade measures applied tomanufactured non-metallic mineral products,
1995 132
AV.9 Trade measures applied tobasemetals, 1995 133
AV.10 Trade measures applied tometal products andindustrial machinery, 1995 134
AV.11 Trade measures applied toindustrial machinery, 1995 135
AV.12 Trade measures applied toelectrical andelectronic equipment (including
computers), 1995 136
AV.13 Trade measures applied totransport equipment, 1995 137
AV.14 Trade measures applied toprofessional scientific andsurgical and
precision equipment, 1995 138
AV.15 Trade measures applied toother manufactured goods, 1995 139
AV.16 Trade measures applied intheelectricity, gas,water andconstruction
sectors, 1995 140
AV.17 Trade measures applied tothewholesale andretail trade, andhotel and
restaurant services, 1995 141
AV.18 Trade measures applied inthetransport, storage andcommunication
sectors, 1995 142
AV.19 Trade measures applied inthefinancial, insurance, realestate and
business services sectors, 1995 144
AV.20 Trade measures applied inthesocial, cultural andpersonnel services
sector, 1995 146
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LIST OFABBREVIATIONS
AIPO African Intellectual Property Organization
BCEAO Central Bank oftheWest African States
BURIDA Ivorian Copyright Bureau
CCIB Ivorian Timber Trading Centre
CCIA Abidjan International Trade Centre
CCI-CI Chamber ofCommerce andIndustry
CEAO West African Economic Community
CEPICI Centre forthePromotion ofInvestment inCôted'Ivoire
CGPP General Product Equalization Fund
CICE Ivorian Foreign Trade Centre
CIDT Compagnie ivoirienne dedéveloppement destextiles
CIE Compagnie ivoirienne d'électricité
CODINORM Ivorian Institute ofSpecifications andStandards
CSSPPA Agricultural Produce Price Stabilization andSupport Fund
DCGTx Distribution andSupervision ofPublic Works
DGI Federal Directorate ofTaxes
DHE Domaine hévéicole del'Etat
DUS Single export customs duty
ECOWAS Economic Community ofWest African States
EE-CI Energie électrique delaCôted'Ivoire
ERG Etablissements Robert Gonfreville
FEDERMAR Fédération maritime delaCôted'Ivoire
FILTISAC Filature-tissage-sac
GATS General Agreement onTrade inServices
GIPA Interindustrial Motor Vehicle Group
GSTP Agreement ontheGlobal System ofTrade Preferences among Developing Countries
IATA International AirTransport Association
ICSID International Centre fortheSettlement ofInvestment Disputes
OCAB Central Organization ofPineapple andBanana Producers andExporters
OCPV Food Product Marketing Office
OIC Ivorian Shippers 'Office
PAA Abidjan Self-Governing Port
PAD Accelerated Clearance Procedure
PASCO Sectoral Adjustment andCompetitiveness Programme
PASFI Financial Sector Adjustment Programme
PETROCI Société nationale d'opérations pétrolières delaCôted'Ivoire
SAPH Société africaine deplantation d'hévéas
SAUR Société d'aménagements urbains
SCIMPEX Association ofImporters, Exporters andRetailers ofCôted'Ivoire
SDV SDAC-Delmas-Vieljeux (Bolloré Group)
SGS Société générale desurveillance
SICABLE Société ivoirienne decâbles
SICF Société ivoirienne dechemins defer
SICOGI Société ivoirienne deconstruction etdegestion immobilière
SIR Société ivorienne deraffinage
SITAB Société ivoirienne destabacs
SITRAM Société ivoirienne detransport maritime
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SIVOMAR Société ivoirienne denavigation maritime
SODECI Société dedistribution d'eauenCôted'Ivoire
SODEFOR Société dedéveloppement desplantations forestières
SODEMI Société pourledéveloppement minier delaCôted'Ivoire
SODESUCRE Société pourledéveloppement desplantations decanne àsucre, l'industrialisation et
lacommercialisation dusucre
SOGB Société descaoutchoucs deGrand Béréby
SONACO Société nationale d'emballages
SONITRA Société nationale ivoirienne detravaux
SOTROPAL Société tropical desallumettes
SSBC Shipping-space booking certificate
STABEX Stabilization ofExport Earnings
SYDAM Customs computer system
SYNACI Agricultural Produce Purchasers 'Association
TCR Regional cooperation tax
TRIPS Trade-Related Aspects ofIntellectual Property Rights
WAMU West African Monetary Union
WAEMU West African Economic andMonetary Union
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SUMMARY OBSERVATIONS
1. After three decades ofindustrial
protection, in1994 Côte d'Ivoire initiated a
trade liberalization programme. Quantitative
restrictions onimports havebeenlifted orare
intheprocessofbeingabolished;importduties,
which aregenerally advalorem, have been
reduced byhalfandattheendof1994 the
average ratewas23.5percent. There arestill
export taxes onexports ofcommodities;
however, ithasbeen announced thatthe
objective isgradually todecrease thesecharges
bybroadening thefiscal base. Inthisregard,
efforts areunder waytoextend thescope of
indirecttaxesandconsequentlylessentheState's
dependence ontaxes oninternational trade.
New laws have been adopted toimprove
competitiveness within theIvorian economy,
attract foreign investment andmanage the
transfer oftheState'sassets aspartofthe
large-scale privatization programme.
2. Theobjective ofthisliberalization isto
revive aneconomy thathasbeendepressed by
almost seven years ofrecession, largely asa
result ofthefallintheprices ofcoffee and
cocoa, themain export products, andthe
attendant increase intherealeffective exchange
rateduring thesecond halfofthe1980s. The
economic adjustment efforts undertaken atthe
domestic levelduring thisperiod didnotsuffice
tooffset thedual effect ofthesimultaneous
decrease inexport earnings andinexternal
competitiveness soon12January 1994 Côte
d'Ivoire, together withitspartners inthefranc
zone, devalued itscurrency fromCFAF 50to
100foroneFrench franc, while atthesametime
introducing anewmacroeconomic adjustment
programme.
3. TheIvorian economy istoalarge extent
based ontheexport ofagricultural products,
which account foronethirdofGDP; thismakes
theeconomy extremely vulnerable toprice or
demand fluctuations onglobal markets. This
iswhytheState intervened inthepastinorder
tostabilize export prices andvolumes, thereby
causing considerable losses. The main
objectives ofthecurrent agricultural policy arethederegulationandprivatizationofdistribution
chains inorder toenhance theroleofthe
private sector andlower budgetary costs. These
measures apply tofoodcrops, inparticular,
rice,cotton, palm oilandsugar. Theroleof
theprivate sector is,however, restricted to
export activities inthecaseofcoffee andcocoa,
whose prices arestillcontrolled bytheState,
which assumes themajor partoftherisksdue
tofluctuations inglobal prices.
4. Inindustry, devaluation and the
liberalization ofimports should helptorestore
thebalance oftherelative pricestructure, which
showed considerable distortions according to
whether ornotthegoods were traded.
According topreliminary observations, exports
tocountries inthesubregion rosesharply in
1994, especially intheagri-food andtextiles
sectors. TheGovernment hopes thatrestoring
thebalance willattract investment insectors
withhighvalueadded,thuscontributingtowards
thediversification oftheIvorian economy. In
thisconnection, trade, investment andprice
reforms should helptoincrease thenumber and
enhance the competitiveness ofIvorian
companies inallproduction sectors.
5. Themajority ofservices, including
public services and power supply, are
monopolies with controlled prices, while
financial andprofessional services areasa
whole protected from competition through an
inflexible regulatory framework thatisnot
conducive tothedevelopment ofnewactivities.
Exporters often havetobearother costs such
astheobligation tousenational maritime
transport orinsurance services. The
telecommunications sector iscurrently being
reformed withaviewtoitsprivatization.
6. Côted'Ivoire hasratified theUruguay
Round Agreements. Ithasapplied theGeneral
Agreement since 1947, firstofallasaFrench
Overseas Territory andthen, since 1963, asa
contracting party. IntheUruguay Round
Agreements, Côte d'Ivoire bound allduties
applicable toagricultural products ataceiling
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rate. Only afewindustrial products were
bound. Côte d'Ivoire hasonlymade modest
commitments under theGeneral Agreement on
Trade inServices (GATS).
(1) Côted'Ivoire inworld trade
7. Withexportsamountingto
US$2.4billionin1993andalmost
US$1.9 billion ofimports, Côted'Ivoire isone
ofthemain trading nations insub-Saharan
Africa. Theratiooftrade ingoods andservices
toGDP ishigh, having risen from75percent
in1992 tomore than110percentafter the
change inparity in1994. Theprimary,
secondary andtertiary sectors represent 34,28
and38percentofGDP respectively. Two
thirds ofthework force isemployed in
agriculture. Themanufacturing sector ismainly
based ontheprocessing ofagricultural and
energy rawmaterials; among themajor sectors
aretheagri-food, wood, industrial agriculture
(cotton,rubber),petroleumproductsandtextiles
sectors.
8. TheEuropean Union isCôted'Ivoire 's
major trading partner, accounting for
52percentofitsexports and54percentof
imports in1992. Trade relations withFrance
areverycloseandthelatter supplies 35percent
ofimports andtakes 18percentofIvorian
exports. TheNetherlands supplies 3.5percent
ofIvorian imports andisanimportant outlet,
purchasing 11.5percentofIvorian exports,
especially cocoa.
9. Côted'Ivoire 'sAfrican trade accounts
for29percentofitsimports and35percent
ofitsexports. Itsmajor trading partners belong
totheEconomic Community ofWest African
States (ECOWAS) and,firstandforemost, to
theWestAfricanEconomicCommunity(CEAO).
Among African countries, themajor suppliers
areNigeria, with18percentofimports, mainly
oilandnatural gas,followed byCameroon and
Senegal. More than 5percentofIvorian
exports gotoBurkina Faso, which isthemain
African market forCôted'Ivoire, followed by
Mali, Nigeria, Senegal andGhana. SouthAfrica takes almost 2percent ofIvorian
exports.
10. Coffee andcocoa together account for
more thanhalfofexport earnings, lower than
thefigure of64percentin1986. Other
agricultural exports inorder ofimportance are
wood, cotton, rubber andfresh fruit. Exports
ofmanufactures mainly comprise petroleum
products, aswellasfood products such as
preserved fish, palm oilandsugar; Côte
d'Ivoire alsoexports textiles, chemicals and
cement.
11. Intermediate goods, especially crude
petroleum, account foralmost 40percentof
Ivorian imports. Imports ofpharmaceutical and
plastic products, aswellasother consumer
goods, account foraround one-quarter ofthe
total; theshare ofcapital goods andmaterials
inIvorian imports hasvaried between 20and
25percentsince 1990. In1992, foodproducts
made upmore than16percentofimports.
Among these, imports offishcaught inIvorian
waters byforeign boats aresubstantial andare
partly utilized bythelocalprocessing industry.
Thecurrent trade structure is,however, likely
toundergo far-reaching changes asaresult of
recent discoveries ofoilandnatural gasoffthe
Ivorian coast.
(2) Institutional framework
12. Executive power isvested inthe
President,whopresidesovertheaffairsofState.
ThePresident appoints thePrime Minister, who
inturnappoints theother members ofthe
Government after consultation with the
President. Trade policy issues arethe
responsibility oftheMinistry ofIndustry and
Trade, other ministries having incompetence in
thisarea aretheMinistry oftheEconomy,
Finance andPlanning, incharge ofcustoms
administration; theMinistry ofRawMaterials;
theMinistry ofAgriculture andLivestock
Resources; theMinistry ofTransport; the
Ministry ofMining andEnergy; andthe
Ministry ofForeign Affairs. TheNational
Assembly consists ofasingle chamber of
175members elected forfiveyears whopassthe
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lawsthataresubsequently promulgated bythe
President.
13. Among thetextsofparticular relevance
forforeign trade aretheCustoms Code andthe
Investment Code. International treaties are
subject toavoteintheNational Assembly and,
asinthecaseoftheFinal ActoftheUruguay
Round, theycome intoeffect immediately they
areratified without theneed toadopt any
implementing legislation. International treaties
have primacy over alllaws except the
Constitution; thePresident isresponsible for
their negotiation, butusually delegates his
authority tothecompetent ministry. Trade
policy negotiations are primarily the
responsibility oftheMinistry ofIndustry and
Trade.
14. Therules anddisciplines contained in
theFinal Actmaybeinvoked before theIvorian
Courts andtheir obligations aretaken into
account when formulating economic policy.
15. IntheUruguay Round Negotiations,
Côted'Ivoire 'smainobjectives weretoimprove
thelegal framework ofmultilateral trade and
tomaintain special anddifferential treatment
fordeveloping countries. Theauthorities noted
theimportance ofamonitoring mechanism to
ensure that alltherules anddisciplines
embodied intheFinal Actwere applied. In
addition, theIvorian authorities stressed the
needforbetterorganizationofcommoditytrade,
which hitherto hadbeenlefttotally inthehands
ofspeculators. Lastly, theneedtoensure that
environmental concerns were notusedasan
instrument oftrade protection wasunderlined.
16. TheIvorian authorities aregenerally
satisfied withtheUruguay Round Agreements,
which afford better access tomarkets and
strengthen rules. However, theyconsider that
gains inproductivity willbeneeded before the
Ivorian economy canbenefit fully from the
results oftheAgreements. Côted'Ivoire regrets
theerosion ofitspreferential trading position
onthemarket oftheEuropean Union andhopes
thatanywearing away oftheLomé Convention
willbeprevented. According totheIvorianauthorities, inviewoftheliberalization process
alreadyunderway,nomajorlegislativechanges
willbeneeded tobring theIvorian lawsinto
conformity withtheFinal Act.
17. Côted'Ivoirehasconcluded34bilateral
trade agreements, which generally provide for
anMFN regime. Côte d'Ivoire isnota
signatorytotheAgreementontheGlobalSystem
ofTradePreferences(GSTP)amongDeveloping
Countries. Ithassigned anumber of
commodities agreements under theauspices of
theUnited Nations Conference onTrade and
Development, including theagreements on
coffee, cocoa, rubber andtropical timber.
18. Côted'Ivoire enjoys privileged access
without reciprocity tothemarket ofthe
European Union under theLomé Convention.
Thisregime allows access totheCommunity
market forIvorian exports ofmanufactures and
some agricultural products freeofanydutyor
quantitative restrictions. Inthecaseofbanana
exports, thisregime wasthesubject oftwo
disputes under Article XXIII ofGATT, inwhich
fiveLatin American countries contested the
compatibility ofthisregime withtheGeneral
Agreement. Allother developed countries grant
Côted'Ivoire trade preferences corresponding
totheirnational preference schemes (GSP).
19. Côte d'Ivoire does nothave any
independent official body responsible for
reviewing oradvising theGovernment ontrade
policy.
(3) Trade policy features andtrends
(i) Recent evolution
20. Although thenumber ofimport levies
isrelatively highwithatleast fourseparate
duties (customs duty,fiscal duty,stamp dutyand
alevyonimports carried bysea), theirlevels
have been substantially reduced. Alarge
number ofmeasures onimport quotas havebeen
lifted orareabout tobeabolished. Increased
foreign competition hasmade itpossible to
liberalize domestic prices ofcertain products
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previously subject tocontrols suchascement
andrice.
21. Although theprivatization ofState
holdings inkeyeconomic sectors hasbeen
delayed, theannounced transfer ofState
holdings intherice,cotton, palm oil,rubber
andsugarsectors,andalsoin
telecommunications andtransport, should help
todismantle certain trade privileges which
represented important obstacles tocompetition
and consequently totheflexibility and
adaptability oftheeconomy asawhole.
Anotherobjectiveoftherecentlegislativereform
istoprevent State enterprises withcontrolled
prices frombecoming private monopolies after
privatization.
22. Inordertoencouragedirectinvestment,
theauthorities introduced asingle window
system atthebeginning of1995, thereby
considerably simplifying and accelerating
investment formalities. These reforms followed
theintroduction ofanewdraftInvestment Code
aimed atencouraging thecreation and
development ofenterprises inCôted'Ivoire, in
particular,bygrantingtaxexemptions.Thenew
Codeabolishes the"establishment agreements"
which existed between theStateandtheprivate
sector, aswell astheprivilege ofbeing
considered apriority enterprise which was
inherent inthese agreements.
23. There hasbeen little change inthe
export regime, however, except forthe
introduction ofnewtaxes ontheprincipal
exports. Administrative formalities arestillas
awhole relatively complicated bothinrespect
ofcustoms formalities andtheinternal transport
ofgoods subsequently exported. Improvements
haveneverthelessbeenmadeinordertobroaden
access tomaritime transport.
(ii) Type andincidence oftrade policy
instruments
24. Imports intoCôted'Ivoire aresubject
toanumber oflevies. Inaddition tothe
uniform customs dutyof5percentthere isa
fiscal duty, which varies between 5and30per
cent, andastatistical taxof2.5percent; themajority ofimports arealsosubject toa0.6per
centlevyonimports carried bysea.Moreover,
somespecial taxesapply toparticular products,
mainly alcohol, tobacco, fuel,aswellassome
meats, fishanddairy products. Alimited
number oftariff lines enjoy free entry
(medicines, books andperiodicals, aswellas
certain agricultural andtextiles inputs). Côte
d'Ivoire hasasystem fortheinspection ofgoods
before shipping anditscostisusually 0.75per
centofthef.o.b. value. Côted'Ivoire doesnot
apply anyseasonal tariffs orvariable levies.
25. TotheabovemustbeaddedVAT,whose
modal rateis20percentapplied tothec.i.f.
price ofimports plusimport duties. Although
theratesarethesameforproducts ofanyorigin
(domestic orforeign), thehighest ratesareoften
levied onimported products, while locally
produced goods andservices generally benefit
fromexemptions orlower VATrates.
26. Anumber ofother measures helpto
complicate theregulatory framework andmay
haveanadverse impact onimports. Minimum
levies areapplied totheimport ofcertain
products suchasalcohol, tobacco andcoffee.
Thereference prices usedasabasisforcustoms
valuation ofimports correspond torelatively
high minimum prices incertain cases, for
example,riceandoilseedsandproductsthereof.
Theauthorities haveannounced theirintention
toapply thecustoms valuation method inthe
Uruguay Round Agreements.
27. Some imports arestillsubject toquotas
atlevels thataresometimes verylow. Thisis
thecaseforcoffee, rice,flour, sugar, tobacco,
certain textiles, some tyresandusedvehicles,
aswellascertain toolsandother ironproducts.
Other products require aprior authorization
fromthecompetent ministry.
28. TheStateisinvolved inwhole orinpart
inarelatively large number oftrade activities,
particularlythroughitsparticipationinnational
enterprises. Forexample, theStateplays arole
inthemajority ofagricultural sectors (coffee,
cocoa, cotton), butalso indomestic and
internationaltradeinmanufacturessuchaspalm
oil,sugar, tobacco, petroleum products, the
___________________________________________________________________________________Republic ofCôte d'Ivoire WT/TPR/S/2
Page xvii
manufacture oftools, textile sacks, paperboard
and metallic packaging. Through its
participation inthecapital ofanumber of
national companies, theStatealsoplays arole
inthetrade infinancial services, maritime
transport, railandairservices andconstruction
services. Thetradeinpetroleum, electricity and
gasisaStatemonopoly withcontrolled prices.
29. Monopolies andexclusive rights to
production, marketing orimport areconfined
toafewcategories ofgoods andservices
includingrice,flourandsugar;energyproducts
suchaselectricity andcrude petroleum; postal,
telecommunications andwater services.
30. Since theearly 1980s, theannual
amount ofGovernment procurement has
decreased considerably andhasbeenaround
CFAF70billion(approximatelyUS$125million)
annually since 1992. Awarding contracts
throughopentendersonlyaccountsforonethird
ofthetotalnumber ofcontracts. Theauthorities
emphasize thatcontracts financed aspartof
bilateral aidinmany cases compel the
authorities toobtain supplies fromindustries in
thedonor country. Theregulations inforce in
Côted'Ivoire provide forpreference tobegiven
tosuppliers established inCôte d'Ivoire
provided thatthequality andtheprice arethe
same. Nevertheless, Government procurement
isingeneral open toforeign suppliers; Côte
d'Ivoire 'saccession tothenewAgreement on
GovernmentProcurementintheUruguayRound
Agreements would allow theforeign presence
tobediversified while atthesametimeopening
upnewmarkets forIvorian enterprises.
31. Intheareaofintellectualproperty,Côte
d'Ivoire isasignatory totheBangui Agreement,
which establishes auniform system forthe
protection ofintellectual property inthe
12member countries. Côte d'Ivoire, asa
developing country, hasanadditional period
offiveyears inwhich toharmonize its
legislation withtheAgreement onTrade-Related
Aspects ofIntellectual Property Rights. In
practice, many counterfeit goods areonsalein
Ivorian markets.32. Export taxes areapplicable tothe
reference prices forcoffee, cocoa, wood and
colanuts. Oneoftheaims ofthese taxes,
reintroduced oncoffee andcocoa in1994after
afour-year interval, istostimulate
diversification towards exports withahigher
value added and, inthecase ofwood, to
discourage deforestation. These export taxes
givetheStatealarge proportion ofitsrevenue
andtheirabolition would leadtoasignificant
increase ininternal taxation. Thereference
prices forwood havetripled since devaluation;
reference prices (minimum levies) alsoapply to
otherproducts suchasbananas, pineapples and
coconut oil.
33. Themajority ofproducts subject toan
export taxarealsosubject toexport quotas.
Forwood, thequotas aresoldatauction. The
export ofsome products alsorequires apermit
issued bythecompetent technical ministries.
Ingeneral, theinstitutional andadministrative
environment forexports would benefit from
greater simplification soastofacilitate and
promote newexport activities anddevelop those
already existing. Thecost offinancial,
professional andtransport services isadecisive
element inthecapacity ofIvorian products to
confront international competition.
34. Côted'Ivoire hasnotestablished any
freezones. Atemporary admission system has
beensetupinorder toallow certain enterprises
which export toimport theirinputs freeofduty.
35. Anumber ofexport activities arethe
subject ofamonopoly, either officially orin
practice. Thisisthecaseforenergy products,
butalsosugar, palm oilandcotton. Exports
ofcoffee, cocoa andsome fresh fruitsuchas
bananas areorganized insuch awayasto
control thequantities available andtheprices
obtained.
36. Coffee andcocoa playamajor rolein
theeconomy because ofthejobs, revenue and
budgetary earnings theycreate. These products
areexported bylarge international trading
companies atprices guaranteed bythe
Agricultural Produce Price Stabilization and
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Page xviii
Support Fund (CSSPPA), irrespective ofthe
trends inprices. Itsstabilization roleledto
substantial losses fortheStatewhen prices fell
attheendofthe1980s. TheCSSPPA now
forward sells60percentoftheharvest inorder
tominimizetheriskofpricefluctuationsbetween
theguaranteed prices toexporters andglobal
prices.
37. Inthese sectors, Côted'Ivoire hasnot
broken withthesystem ofproducer prices and
Statecontrol ofinternal andexternal marketing
intheagricultural sector, eventhough incertain
cases fixed prices have been replaced by
minimum prices. This contrasts with the
privatization announced forseveral agricultural
complexes, which should lead toimportant
changes intherice,sugar andcotton sectors
andinoilseeds andtheirproducts. Ingeneral,
itcanbenoted thatthesectors thatarewholly
managed bytheprivate sector, forexample,
rubber andbanana production, haveachieved
thebesteconomic performance.
38. Stateparticipationintheproductionand
distribution ofenergy isintheformofexclusive
concessions granted totheprivate sector; the
rates areusually negotiated insuchawayas
toguarantee the concessionaire stable
remunerationwhateverthetrendinglobalprices
forthegoods andservices concerned orforthe
inputs needed fortheirproduction. Thisisthe
casefortheproduction ofelectricity, petrol
refining andthesupply ofnatural gas.
39. Following theliberalization ofimports
and thechange inparity, theIvorian
manufacturing sector isshowing signs of
recovery, withasignificant increase inexports
in1994. Côte d'Ivoire 'scomparative
advantages lieintheprocessing ofagricultural
rawmaterials,mainlyfoodproducts,rubberand
cotton. Wood processing could also be
developed ifsolutions totheproblems of
deforestation could befound.
40. Thecompetitiveness ofservices sectors
isnecessary fortherecovery ofexports of
manufactured andagricultural products. For
thetimebeing, private orpublic monopolieswith controlled prices arethenorm for
maritime, railandairtransport, retail trade,
telecommunications andpublic services.
(iii) Temporary measures
41. Côte d'Ivoire has nolegislation
concerning anti-dumping orcountervailing
duties. Nevertheless, specific duties arelevied
onimports ofcertain meats anddairy products
inorder tooffset theeffect oftheexport
subsidies granted bytheEuropean Union for
itsexports. Côted'Ivoire doesnotapply any
safeguard measures; reference prices for
imports fulfilthisfunction.
(4) Trade policies andtrading partners
42. Therecent macroeconomic recovery,
whichincludedtheadjustmentofexchangerates,
therestoration ofbudgetary andexternal
balances andexternal financial flows, helped
tocreate amore stable environment for
investment andtrade. These measures showthe
authorities 'desire toeliminate thestructural
obstaclestobetterexploitationofCôted'Ivoire's
assets. Thecountry hasmany comparative
advantages and they have recently been
enhanced bytheriseinrawmaterial prices on
global markets, thediscovery ofoilandnatural
gasofftheIvorian coast and increased
awareness ofthecountry 'stourist potential.
43. Although theregular regulatory and
administrative framework ofproduction and
export isstillrigid, theprivatization efforts, the
newmeasures oninvestment andthefacilitation
ofimports should rapidly leadtoimportant
changes attheexport level. These should
include acurtailment oftheadministrative and
customs procedures which slowdown exports
andincrease their cost. These measures are
indispensable inorder torevitalize economic
machinery which could bemore flexible and
more competitive.
44. Under various programmes inthe
European Union, theUnited States andother
countries,Côted'Ivoirereceiveslargequantities
ofsubsidized cereals, including riceandflour,
___________________________________________________________________________________Republic ofCôte d'Ivoire WT/TPR/S/2
Page xix
whose impact onlocalproduction offoodcrops
isconsiderable. Côte d'Ivoire 'sagricultural
trade should inthelongtermbenefit fromthe
disciplines onsubsidies intheUruguay Round
Agreements, while exports ofmanufactures
should beabletotakeadvantage ofbetter terms
formarket access.
45. The Ivorian services sector isin
principle open tothepresence offoreign
suppliers, present inbanking, insurance,
transport andprofessional services, aswellas
inthemajority ofpublic services. Itwould
therefore betoCôte d'Ivoire 'sadvantage to
participate inthenegotiations taking place
within theGeneral Agreement onTrade in
Services (GATS), soastogiveforeign suppliers
stable access tothese services. Although there
isalarge foreign presence, lackofcompetition
means thatprices arehighandthisaffects the
competitiveness ofIvorian exports. Binding of
theexisting opening within theGATS and
greaterliberalizationwouldstimulate
competitionandallowcoststobelowered,while
atthesame timediversifying thenumber and
origin ofsuppliers.
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