RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/G/46
23 September 1998
(98-3667)
Trade Policy Review Body Original: French
TRADE POLICY REVIEW
BURKINA FASO
Report by the Government
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism
(Annex 3 of the Marrakesh Agreement Establishing the World Trade
Organization), the policy statement submitted by the Government of Burkina
Faso is attached.
Note: This report is subject to restricted circulation and press embargo until the end of the meeting
of the Trade Policy Review Body on Burkina Faso.Burkina Faso WT/TPR/G/46
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CONTENTS
I. INTRODUCT ION ................................................................................................................4
II. TRADE POLICY AND PRACTIC E ..................................................................................4
(1) G ENERAL TRADE POLICY OBJECTIVES .................................................................................4
(2) S ECTORAL TRADE POLICY OBJECTIVES ...............................................................................5
(i) Agriculture, livestock and natural resource management...................................5
(ii) Transport and tourism ............................................................................................7(iii) En ergy.................................................................................................................... ...7
(iv) Mining..................................................................................................................... ..7
(v) Crafts ...................................................................................................................... ..8
(3) G
ENERAL DESCRIPTION OF THE IMPORT AND EXPORT REGIME ........................................8
(i) Imports..................................................................................................................... .8
(ii) Exports.................................................................................................................... ..8
(4) L EGAL TRADE POLICY FRAMEWORK ...................................................................................9
(i) Laws and regulations governing the implementation of trade policy .................9
(ii) Formulation and revie w of trade policies ..............................................................9
(iii) Multilateral, bilateral a nd regional trade agreements .......................................10
(5) I MPLEMENTATION OF TRADE POLICY ................................................................................10
(i) Trade policy measures implemented in Burkina Faso .......................................10
(ii) Ongoing trade liberalization under the customs adjustment programme .......11
III. ECONOMIC REFO RM PROGRAMME ........................................................................12
IV. CONCLUSION .................................................................................................................. .13WT/TPR/G/46 Trade Policy Review
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I. INTRODUCTION
1. Burkina Faso has an area of 274,200 km2.  It is one of the least-developed countries on the
African continent.  Currently estimated at around 10.5 million, its population is increasing at a rapid
2.8 per cent per year.  The result is that more than half of the Burkina population is now under
20 years of age.
2. The country has limited natural resources and is exposed to the vagaries of the Sahelian
climate, which means insufficient and uneven rainfall.  It is also land-locked.  Its economic
infrastructure is under-developed and many remote regions are virtually isolated during the rainy
season.  Another major handicap is the lack of energy resources.  The country's principal local
resource remains its flora, the over-exploitation of  which is currently threatening the environment.
Other energy sources are of foreign origin (hydrocarbons) and are available at very high prices.
3. Burkina Faso nevertheless has some assets that offer hope of overcoming under-development
and launching a process of sustainable growth.  The first is doubtless its human resources, often
reputed to be disciplined and hard-working.  The second is political stability and relative social peace
achieved by a government which, since 1987, has instituted sweeping political and structural reforms
constantly guided by the quest for consensus.  With the adoption of the Constitution of 2 June 1991,Burkina Faso became a pluralist democracy.
II. TRADE POLICY AND PRACTICE
(1) G
ENERAL TRADE POLICY OBJECTIVES
4. Since 1991, Burkina Faso has carried out a series of economic reforms designed to end
Government involvement in the competitive sectors and liberalize the economy.  The private sector is
now recognized as the engine of economic growth, which must remain above 5 per cent per annum if
Burkina Faso is effectively to launch sustainable development.  The Burkina Government strategy of
private sector development is intended to create a competitive and productive economy driven by that
sector.
5. The Government's general objectives in this regard are:
- To liberalize trade;
- to improve the regulatory framework for the creation and exercise of private
enterprise by both nationals and foreign investors;
- to enable business to develop within a dependable legal framework in line with
international standards;
- to put in place measures for rapid adaptation to the rules of the West African
Economic and Monetary Union (WAEMU) and WTO;
- to facilitate speedy adjustment to economic trends by making employment laws more
flexible;
- to enhance the productivity and efficiency of private-sector support institutions,
especially those run directly by the State;
- to combat fraud and corruption;Burkina Faso WT/TPR/G/46
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- to institute permanent and fruitful dialogue with the private sector;
- to reduce the cost and/or improve the quality of Government-run public services;
- to provide better conditions of corporate financing in general and for small- and
medium-sized enterprises in particular;
- to lighten the tax burden on the formal sector;
- to ease customs duties on inputs;
- to strive to provide enterprises with more modern and efficient services;
- to foment the technical upgrading of the local workforce;
- to step up the creation and restoration of serviced industrial zones;
- to continue to develop serviced zones for different activities;
- to encourage the reduction of some transport costs;
- to improve the efficiency and fluidity of Burkina Faso’s roadways.
(2) SECTORAL TRADE POLICY OBJECTIVES
(i) Agriculture, livestock and natural resource management
(a) Agriculture
6. Stimulating sustainable economic growth in Bu rkina Faso is largely contingent upon the
revitalization of the activities of the primary sector.  With this in mind, the Government drafted and
adopted in January 1998 a Strategic Guideline Document ( Document d'orientation stratégique ) setting
forth the major objectives, profile and broad outlines of an operational strategy for sustainable growthin the agricultural and livestock sector up to the year 2010.
7. To that end, the Government plans to:
- Boost the output and productivity of agricultural subsectors;
- encourage the development of the market in rural areas;
- modernize agricultural and livestock farms;
- raise the level of professionalism in the agricultural and livestock sectors;
- enhance food and nutritional security;
- improve the status of rural women;
- refocus the role of Government and encour age private initiative in rural development
sectors.WT/TPR/G/46 Trade Policy Review
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8. Plans already drawn up for the creation of professional agricultural organizations, financing
for rural areas and the promotion of rice are soon to be implemented.  Furthermore, action plans are to
be drawn up for the subsectors of cereals, oilseeds, fruit and vegetables and pulses and for agricultural
support.  The cotton industry will be strengthened.
(b) Livestock
9. The Government pays special attention to this sector as evidenced by the creation in 1996 of a
Ministry of Animal Resources and the adoption in  November 1997 of the Action Plan Guidelines for
livestock policy in Burkina Faso.
10. The Government's objectives are:
- To draw up a programme for the development of pasture and livestock areas around
urban centres;
- to devise a regulatory framework for pasture farming and legal instruments to protect
cattle trails;
- the adoption of a national plan for the development of short-cycle animal rearing
(poultry, pigs, sheep, goats);
- the implementation of a plan for dairy industry development around the major urban
centres of  Ouagadougou and Bobo-Diolasso and in pasture-farming zones;
- the rehabilitation and upgrading of the Ouagadougou abattoir and the building of an
abattoir at Bobo-Diolasso.
11. To reap maximum benefit from the available resources, the livestock industry will be
organized into three zones: the northern zone dedicated to cow-calf production, the central zone for
raising and fattening, and the southern zone for more intensive and mixed farming.  The process of
reducing government involvement in the supply and marketing of inputs will continue, as will the
accelerated privatization of the veterinary profession.
(c) Environment
12. With a view to attaining a socio-ecological and socio-economic balance that makes for food
self-sufficiency and improved living standards for the population, the Government intends to focus its
environmental policy on the following four main areas:
- The fight against desertification;
- forestry management;
- landscape development;
- the fight against pollution and nuisances.
13. To streamline the management of forestry resources, the Government will be emphasizing the
following areas:
- Giving greater dynamism to village organizations for fauna management;Burkina Faso WT/TPR/G/46
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- promoting subsectors such as ranching and the private small-scale rearing of wild
animals;
- giving fresh impetus to sightseeing tourism and sport hunting;
- conditioning lakes so as to increase fish production;
- training the rural population in the management and development of natural
resources.
14. In the water sector, the Government has decided to focus on:
- Drinking water supply;
- water supply facilities for farming;
- facilitating other rational uses of water for development purposes.
(ii) Transport and tourism
15. As part of the programme to open up the country, the Government has set the following
objectives:
- Putting in place a reliable and well-organized transport network to underpin the
development of inter-regional trade;
- opening up Burkina Faso to the outside world by developing transportation facilities;
- structuring and organizing the management of highway transport;
- promoting private initiative in the transport sector;
- making the most of Burkina Faso's tourism potential and building access roads to
tourist locations.
(iii) Energy
16. One of the major stumbling blocks to industri al development remains the very high cost of
energy.  The Government has decided to encourage private investment in the sector.  A programme
for interconnection with Côte d'Ivoire is now under way and will be completed by the year 2000.  The
Government will pursue its policy of readjusting the price of hydrocarbons every two months so as to
reflect the real cost of supply.
(iv) Mining
17. The Government intends to develop the mining sector so as to maximize its contribution to
economic growth by emphasizsing the following areas:
- Coordinating the various environmental activities connected with the sector;
- upgrading the skills of public and private sector agents in managing their activities;WT/TPR/G/46 Trade Policy Review
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- promoting small-scale mining;
- implementing a mining code that is attractive and in line with international best
practices.
18. The Government will review its schedule of surface-ownership charges and taxes for
prospecting licences in the light of metal price movements.  Before a deposit can be worked, an
environmental impact study must be conducted.
(v) Crafts
19. The Government has undertaken the following promotional actions in this sector:
- Drafting and implementing a craft promotion strategy (training, organization,
marketing);
- creating a Chamber of trades;
- building crafts villages;
- creating a Register of Trades and a professional craftsman's card;
- professionalization of the Ouagadougou International Crafts Fair (SIAO).
(3) GENERAL DESCRIPTION OF THE IMPORT AND EXPORT REGIME
20. The importation, exportation or re-exportation of non-prohibited goods is free.  The following
legal instruments govern the general import and export regime: Ordinance No. 91-069 of
25 November 1991 and its Implementing Decr ee No. 94-014 of 25 November 1991 and Law
No. 15/94 of 5 May 1994 on competition and consumption.  This Law institutes an autonomous
advisory body, the National Competition and Consumption Commission (CNCC), which oversees the
functioning of the rules of competition in the economy and ensures consumer protection.  It authorizes
the Ministry of Trade to regulate prices provisionally under the conditions established by decree or
dictated by crisis or emergency situations that may interfere with the free play of market mechanisms.
(i) Imports
21. Import licensing has been eliminated as part of the measures taken under the structural
adjustment programme.  For health reasons, however, the importation of some products is banned, an
example being asbestos-based products.
22. Decree No. 98-118/PRES/PM/MEF of  31 March 1998 instituted a 1 per cent levy of the f.o.b.
value of goods subject to advance import declarations to cover the cost of the import verification
programme.
(ii) Exports
23. The export of Burkina products merely requires authorization from the Business Promotion
Centre.  For statistical purposes, cereal exports are subject to an export declaration (Notice toExporters No. 96-002/MCIA of 1 March 1996).  Shea nut s are also subject to special authorization for
the same reasons.  The export of raw goat or sheep skins is prohibited (Notice to Exporters
No. 95-453/MICM/SG/DGRS of 7 July 1995).  This provisional measure is fully consistent with theBurkina Faso WT/TPR/G/46
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aims of the policy to promote and valorize livestock by-products and with that of supporting the initial
stages of the privatization process.
(4) LEGAL TRADE POLICY FRAMEWORK
(i) Laws and regulations governing the implementation of trade policy
24. The Constitution is the supreme law of Burkina Faso.  A single National Assembly exercises
legislative power.  The National Assembly votes the laws, including finance laws establishing
Government spending and income targets.
25. The President of the Republic is empowered to negotiate and conclude international
agreements;  he may delegate this power to a minister or a member of the Executive.  Should it benecessary to amend legislation in order to align it with the provisions of an agreement, the Parliament
must pass a law authorizing such amendment.
26. Trade policy is implemented by several Government institutions and executive bodies.  If
necessary, the MCIA may table draft laws.
27. Trade-related laws cover several areas, namely:
- Tourism;
- control of goods;
- competition;
- weights and measures;
- investments;
- the financial and banking sector;
- commerce;
- privatization;
- the liberal professions.
(ii) Formulation and review of trade policies
28. The MCIA is responsible for devising, implementing and administrating trade policy in
Burkina Faso.  Once drafted by the Ministry, the laws are submitted for scrutiny and approval by theLegislature.
29. The MCIA draws up trade policy measures in c onsultation with the private sector (Chamber
of Commerce, Crafts Industry) and with the Ministry of Economy and Finance (MEF).WT/TPR/G/46 Trade Policy Review
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(iii) Multilateral, bilateral and regional trade agreements
30. Government policy regarding multilateral, bilateral and regional trade agreements is designed
to foster a favourable environment for integratin g Burkina Faso into the international economy in
order to secure outlets for its products and spur the development of its industries.
31. Among the agreements entered into by Burkina Faso, the following may be mentioned:
- Agreement Establishing the World Trade Organization (WTO);
- ACP-EU Lomé Convention;
- ECOWAS Treaty;
- WAEMU Treaty.
32. Burkina Faso is a signatory to the Fourth Lomé Convention between the European Union
(EU) and 71 African, Caribbean and Pacific (ACP) St ates.  This Convention assures (non-reciprocal)
duty-free entry into the Community market for those Burkina industrial and agricultural products not
covered by the Common Agricultural Policy (CAP).  As a founding Member of the GATT since 1963,
Burkina Faso, upon authorization by the National Assembly, ratified the Agreement Establishing the
WTO and thus became a member of that body on 3 May 1995.
33. Burkina Faso is convinced that the Agreement Establishing the WTO will serve the interests
of developing countries in general and of the LDCs in particular.  Nevertheless, these countries will
need more assistance if they are to benefit fully from the WTO Agreements.  Burkina Faso is a
member of ECOWAS and has espoused the idea of creating a regional common market, a single
currency and a customs union within WAEMU.
(5) IMPLEMENTATION OF TRADE POLICY
(i) Trade policy measures implemented in Burkina Faso
(a) Customs duties
34. Since 1991, Burkina has been steadfastly following a policy of economic liberalization that
culminated in a major customs tariffs reform in  1992, with the enactment of Law No. 12/92/ADP of
22 December 1992.
35. Under this Law, imported goods are divided into three categories, the first containing
essential and special goods, the second, intermediate goods (raw materials and capital goods), and thethird, all other products (not falling into the two preceding  categories).
36. This classification was based on product affinity and their degree of processing, and was
mindful of the need to promote domestic production units, safeguard domestic industry and prevent
certain products from increasing the tax burden.
37. Under the new Tariff, import duties and charges include:
- Customs duty (DD):  5 per cent, flat rate;
- Fiscal Import Duty (DFI):  0 per cent, first category;Burkina Faso WT/TPR/G/46
Page 11
- Statistical Fee (STAT):  4 per cent, flat rate;  4 per cent, second category;
- Community Solidarity Levy (PCS):  1 per cent, flat rate;  26 per cent, third category;
- Value-Added Tax (VAT):  18 per cent for the second and third categories; 0 per cent
for the first category;
- Special Intervention Tax (TSI):  1 per cent.
38. Since 1 January 1993, tax has been applied ad valorem  across the board to import and export
products.  Pursuant to Regulation No. 02/97 /CM/UEMOA of 28 November 1997 adopting the
Common External Tariff (CET), the DFI rates were modified by Ordinance No. 98-001/PRES of
9 July 1998.  The new rates are 0 per cent, 5 per cent and 20 per cent for categories I, II and IIIrespectively.  The TSI has been scrapped.  Excise taxes under the customs tariff schedule remain in
force (VAT, taxes on soft drinks, coffee, tea and tobacco).  The STAT has also been retained, at 4 per
cent.  The DFI is three-tiered and varies according to product classification.
39. The documents required for customs formalities are the importer's card, the purchase invoice,
the invoice showing the insurance premium, the certificate of origin, the customs valuation certificateand, if necessary, the phytosanitary certificate.
(b) Customs valuation and preshipment inspection
40. The prevailing customs valuation method is based on the transaction value of the goods.  The
customs valuation principles that presently apply in Burkina Faso are based on Article 22 of the
Customs Code.  A system of com pulsory preshipment inspection of goods has been in operation since
1992.  Accordingly, all imports must comply with the formalities of the inspection company, which
are:
- Preparing an import application for any invoice in excess of CFAF 3 million
(maritime transport);
- having the goods checked before loading;
- producing the definitive invoice after inspection;
- obtaining a customs valuation certificate that must be submitted to the customs
authorities when the goods are being cleared.
41. In the event of undervaluation, the inspectio n company rejects the values shown on the
invoice and makes the necessary adjustment in the light of the information available to it in the
country of importation or based on the value of similar products.  Any adjustments are mentioned on
the customs valuation certificate.
(ii) Ongoing trade liberalization under the customs adjustment programme
42. Between 1966 and 1990, the Burkina economy was tightly regulated under an economic
strategy that relied on the public sector for investment and growth.  The hoped-for results did not
materialize.  Since 1991, Burkina Faso has been implementing an economic liberalization programme
with IMF and World Bank support.  The Government's objective in that framework has been to fosteran environment favourable to private initiative.  Ac cordingly, steps were taken such as the eliminationWT/TPR/G/46 Trade Policy Review
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of import licensing, the removal of import and export restrictions and the realignment of our laws and
regulations to suit the new and highly liberal economic environment.
III. ECONOMIC REFORM PROGRAMME
43. Trade policy is but one component of a broader policy encompassing investment,
transportation, tourism, financial services, and a legal and regulatory framework for fostering and
developing business and employment.  These elements are all interrelated and interdependent insofaras they help to ensure the prosperity of the population as well as sustainable economic growth.
44. During the 1980s, low national income and economic under-development had prompted the
Government authorities to embark on a voluntaristic development policy characterized by increased
public investment in both infrastructure and the production sector.  Household savings and corporate
profits were too low to generate sufficient resources to meet investment needs.  That explained thepublic sector share of over half of total gross fixed capital formation.
45. Yet these endeavours were not enough to offset the effects of a very high rate of population
increase (almost 3 per cent per annum) and the structural weaknesses stemming specifically from
insufficient savings and a chronic trade deficit (average rate of coverage of imports by exports being
35 per cent).  The various adjustment programmes launched since 1991 in conjunction with the IMFand World Bank have been designed to stabilize the economy and restore conditions for sustainable
growth and to improve the management of public finances.
46. To boost the population's earnings and accelerate the development of human resources and
production potential, the Government used a letter of intent to set out a policy strategy for durable
human development.  The principal objectives of this policy for the 1998-2000 period may be
summed up as follows:
- Ensuring average real GDP growth of at least 5.5 per cent between 1998 and 2000;
- containing annual inflation at 3 per cent per annum;
- reducing the external deficit on current account, excluding grants, to 10 per cent of
GDP by 2000;
- stabilizing public sector investment at around 13 per cent of GDP in the 1990-2000
period and the component financed by domestic budgetary resources at 2.7 per centof GDP for the same period;
- improving social infrastructure and increasing life expectancy from the current
48 years to 57 years by 2005;
- fomenting the private sector by reinforcin g the legal system so as to provide an
atmosphere of greater security for private sector activity;
- strengthening the role of women in the development process;
- continuing to overhaul the banking system;
- developing and diversifying export potential;
- completing the liberalization of the export and import sectors;Burkina Faso WT/TPR/G/46
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- pressing ahead with the programme of reform of public enterprises;
- conducting an exhaustive survey of Government holdings in enterprises and a
strategic analysis of the Government's portfolio;
- opening the telecommunications sector to competition and putting in place a strategy
for the partial privatization of ONATEL;
- pursuing regional economic integration;
- completing Burkina Faso's integration into  the multilateral trading system managed
under the WTO agreements.
47. To these ends, the Government has undertaken to promote investment and domestic saving
while redirecting investment towards priority sectors.
48. Between 1998 and 2000, export value is expected to increase by an annual average of 19 per
cent and volume by 13 per cent, mainly owing to a steady increase in cotton output.  In parallel, the
external debt roll-back under the initiative to assist poor debt-ridden countries will restore the debt
service/export ratio to a sustainable level.  With the support of partners, the triennial investmentprogramme will be pursued within the terms of the macroeconomic framework of reforms between
1998 and 2000, designed to enhance the Government's capacity to manage and rationalize its
expenditure.
IV. CONCLUSION
49. This trade policy report shows that Burkina Faso is pursuing its economic liberalization
programme unflinchingly.  In that context and in order to create a more business-friendly institutional
climate, the ongoing reforms within WAEMU,  OHADA and WTO will continue and the relevant
adjustments will be made for their implementation in Burkina Faso.
50. Actions for the coming three years will cover:
- The drafting of a Community Investment Code;
- the effective harmonization of public financial statistics;
- the application of the West African Accounting System (SYSCOA) and the Treaty of
the Organization for the Harmonization of Business Law in Africa (OHADA);
- the application of the Common External Tariff;
- multilateral surveillance and the accompanying penalties;
- implementation of the actions under the integrated ITC/UNCTAD/WTO programme;
- the inauguration of a Centre for Business Formalities (single window) is almost a
reality, aimed at bringing the public and private sectors closer together;
- streamlining administrative procedures, improving the Institutional Code, adapting
our laws and regulations to the new, highly liberal economic environment all have a
single purpose:  to foster a climate in which a liberal economy will thrive;WT/TPR/G/46 Trade Policy Review
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- the sound management of a liberal economy calls for more entrenched democracy,
better governance and the furtherance of structural reforms.
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