PRESS/TPRB/9
14July1995
TRADE POLICY REVIEW BODY
Review ofCôte d'Ivoire
TPRB 'sEvaluation
TheTrade Policy Review Body oftheWorld Trade Organization (WTO) conducted itsfirst
review under WTO procedures initsexamination on4and5July1995ofCôted'Ivoire 'stradepolicies.
ThetextoftheChairman 'sconcluding remarks isattached asasummary ofthesalient points which
emerged during thetwo-day discussion.
Thereview enables theTPRB toconduct acollective examination ofthefullrange oftrade
policies andpractices ofeachWTO member country atregular periodic intervals tomonitor significant
trends anddevelopments which mayhaveanimpact ontheglobal trading system.
Thereview isbased ontworeports which areprepared respectively bytheWTO Secretariat
andthegovernment under review andwhich cover allaspects ofthecountry 'stradepolicies, including:
itsdomestic lawsandregulations; theinstitutional framework; bilateral, regional andother preferential
agreements; thewider economic needs andtheexternal environment.
Arecord ofthediscussions andtheChairman 'ssumming-up, together withthese tworeports,
willbepublished induecourse asthecomplete tradepolicy review ofCôted'Ivoire andwillbeavailable
from theWTO Secretariat, Centre William Rappard, 154ruedeLausanne, 1211 Geneva 21.
Since December 1989, thefollowing reports havebeencompleted: Argentina (1992), Australia
(1989 &1994), Austria (1992), Bangladesh (1992), Bolivia (1993), Brazil (1992), Cameroon (1995),
Canada(1990,1992&1994),Chile(1991),Colombia(1990),Egypt(1992),theEuropeanCommunities
(1991 &1993), Finland (1992), Ghana (1992), Hong Kong (1990 &1994), Hungary (1991), Iceland
(1994), India (1993), Indonesia (1991 and1994), Israel (1994), Japan (1990, 1992 &1995), Kenya
(1993), Korea, Rep. of(1992), Macau (1994), Malaysia (1993), Mexico (1993), Morocco (1989),
NewZealand (1990), Nigeria (1991), Norway (1991), Pakistan (1995), Peru(1994), thePhilippines
(1993),Poland(1993),Romania(1992),Senegal(1994),Singapore(1992),SouthAfrica(1993),Sweden
(1990 &1994), Switzerland (1991), Thailand (1991), Tunisia (1994), Turkey (1994), theUnited States
(1989, 1992 &1994), Uruguay (1992) andZimbabwe (1994).
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REVIEW OFTHE TRADE POLICIES AND PRACTICES
OFCOTE D'IVOIRE
Concluding Remarks oftheChairman oftheTrade Policy Review Body
Thisfirstmeeting oftheTrade Policy Review Body under theprocedures oftheWorld Trade
Organization hasenabled thetrade policies andpractices ofCôted'Ivoire tobereviewed forthefirst
time. Thefollowing remarks aremade onmyownresponsibility andarenotintended toreplace our
jointevaluation.
Thediscussion focused onfourmain areas:
Macroeconomic policy anddevelopments
Many participants noted thatthecompetitiveness oftheIvorian economy hadrevived following
thedevaluation oftheCFA franc andtheintroduction ofthestructural adjustment measures that
accompanied it.Thehighestimates ofGDP andinvestment growth mean maintaining strict control
overcurrent expenditure soastofinance public investment while avoiding inflationary pressure. In
thisconnection,theburdenofdebtservicinghasplacedanadditionalconstraintonbudgetaryexpenditure.
Theeffect oncompetitiveness ofrelatively highlabour costs wasraised.
Foreign direct investment isregarded asapre-requisite fortheanticipated growth. Inthis
regard, therecent reforms inprivatization, theintroduction ofanewlawoncompetition andtheframing
ofanewInvestment Code should allhelptoreinforce Côte d'Ivoire 'straditionally welcoming
environment forforeign capital andimprove competition between newinvestors andalready established
companies. Riskassessment isakeyfactor inthisprocess.
Several speakers alsostressed theimportance offinancial andtechnological external assistance.
Inreply, therepresentative ofCôted'Ivoire referred totheeconomic stabilization andrecovery
programme under waysince1991, which includes sectoral adjustment measures, thereform ofmonetary
andfiscal policy, alarge-scale privatization programme andtheintroduction ofanewInvestment Code.
Investment approval procedures havebeenmade considerably shorter andsimpler, andthis,together
withtheeconomic andpolitical stability ofthecountry, should reduce perceived risksandattract new
investment flows. Following devaluation, labour costshavebecome more competitive vis-à-vis similar
countries.
These adjustment efforts, combined withthechange intheparity oftheCFA franc, have
contributed tostabilizing theState'sfinancial position, reducing internal debt, restoring investor
confidence andincreasing thevolume ofexports.
Trade performance
Many speakers referred toCôted'Ivoire 'simportant roleintheeconomy andtradeoftheregion.
Questions wereputabout economic integration intheWest-African Economic andMonetary Union
(WAEMU) anditslinkwiththecommitments made within ECOWAS. Alluding totheimportance
ofspecial anddifferential treatment fordeveloping countries, some members noted theerosion of
preferential trade margins ofIvorian products initstraditional markets following theMarrakesh
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Agreement. Inthiscontext, others stressed thatCôted'Ivoire should diversify itsproduction, turning
tonewnon-traditional goods andservices andnewmarkets.
Inreply, therepresentative ofCôted'Ivoire recalled thestrategy todiversify agricultural and
agro-industrial exports; theboom inthemining andenergy sector asaresult oftheexploitation of
newly-discovered petroleum, natural gasandother mineral deposits; andthedevelopment ofservices,
particularly inthesub-region, including financial services, telecommunications, transport andtourism.
Itwasnoted thattheState nolonger intervenes orcontrols sources ofproduction intheindustrial or
agricultural sector, although ithadwarned thatatransition period wasnecessary inareas suchascoffee
orcocoa production where theworkers needorganizational help. With regard tothetreaty setting
uptheWAEMU, henoted thattheultimate objective istomake itacustoms union withacommon
external tariff andgreater internal cooperation. Aplanofwork forthevarious aspects ofsuch
cooperation istobeprepared before theendof1995.
Trade regime
Participants congratulated Côted'Ivoire ona50percentreduction incustoms duties, which
nowstand atapproximately 22percent. However, thecomplexity andlackoftransparency ofimport
duties werenoted, andclarifications asked forconcerning themaintenance ofreference prices, alternate
duties andminimum levies, andtheneedtocumulate fourdifferent duties onmerchandise imports.
Members asked howtheGovernment planned toreduce budgetary dependence onimport duties. It
wasnoted thatthere wereveryfewbindings covering industrial products during theUruguay Round
andthatthevalue-added taxseemed toaffect imports more thandomestic products. Questions were
alsoasked about theapplication oftheCustoms Valuation Code.
Côted'Ivoire doesnotapparently discriminate against foreign suppliers asregards government
procurement. Inthisconnection, participants asked whether Côted'Ivoire planned toaccede tothe
newAgreement onGovernment Procurement.
With regard toexports, Côted'Ivoire wasasked byseveral participants toexplain therole
ofthecoffee andcocoa export taxes which haverecently beenreintroduced andwhich seem likely
toreduce bothexport volume andfarmers 'income. Generally speaking, thecumbersome administrative
procedures forexports seemed likely toimpair theperformance oftheexport sector. Some members
asked whether there wasdirect orindirect export subsidization.
Inreply, theCôted'Ivoire representative stressed theimportance ofsimplifying customs and
portprocedures forimportation andcustoms clearance, andofreducing andharmonizing duties and
taxes. Itwasnecessary tocreate amodern fiscal system andextend thetaxbase. Atariff reform has
established aconsolidated customs dutyof5percent; thefour-duty structure allows optimum
implementation ofCôted'Ivoire 'seconomic andtrade policy andmakes harmonization ofcustoms
duties within theWAEMU possible. TheVAT rateisthesame forimported asfordomestically-
produced goods. Inconformity withWTO provisions, Côted'Ivoire hasdelayed application ofArticle
7ofGATT 1994forfiveyears. Riceandflourarenowimported without restriction. Thesingle export
dutyoncoffee, cocoa andwood isassigned toboththegeneral financial budget andtheFarmers 'Support
Fund.
Newareas
Intradeinservices, restrictions onshipping werereferred toasabarrier tothecompetitiveness
ofIvorian exports. Questions were alsoputabout theGovernment 'sobjectives withregard to
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telecommunications, andfinancial andinsurance services. Since thelatter appear tobeparticularly
opentoforeign suppliers, doesCôted'Ivoire intend toparticipate innegotiations intheseareas? Energy
andwater supply services seem tobeestablished asprivate monopolies withregulated prices: what
mechanisms existtoprevent toohighprices from impairing thecompetitiveness ofIvorian exports
ofgoods andservices?
Measures relating totrade andenvironment areofvitalimportance fortheIvorian wood sector,
aswellasother rawmaterial exports, inviewoftheproblem ofdeforestation. Some participants asked
howtheGovernment planned tousetheproceeds ofexport taxes toremedy environmental problems.
With regard tointellectual property, Côted'Ivoire wasasked togivedetails ofthenature of
thepatent protection covering chemicals, pharmaceuticals andagricultural products.
Inreply,theCôted'IvoirerepresentativenotedthedissolutionoftheNationalShippingCompany
SITRAM andtheelimination oftheshippers 'visa,aswellasaplanfortheprivatization oftheNational
Telecommunications Company. Herecalled Côted'Ivoire 'saccession toseveral treaties andagreements
onintellectual property, including theBangui Agreement which applies toindustrial property, patent
rights andindustrial designs. Harmonization ofdomestic legislation withtheprovisions oftheTRIPS
Agreement must bepursued.
Conclusions
Members congratulated Côted'Ivoire onitspursuit ofmacroeconomic stabilization andtrade
liberalization, andnoted thepositive effects registered todate. They nonetheless encouraged
Côted'Ivoire tomake additional commitments andbindmoretariffs soastoensure thatcurrent reforms
continue. Participants expressed theirconviction thattheconsolidation ofreforms inthegoods and
services sectors would attract newinvestment andensure sustained economic growth.
END