PRESS RELEASE 
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NOT FOR PUBLICATION, OR DISTRIBUTION BY NEWS AGENCIES UNTIL 
1500 GENEVA TIME ( 1300  GMT) 13 SEPTEMBER 2002  
 
PRESS/TPRB/200 
13 September 2002 
 
(02-4842) 
TRADE POLICY REVIEW: MAURITANIA 
Enhanced international assistance would help Mauritania reap 
more benefits from its trade liberalization efforts.  
Mauritania needs international support and a coherent programme of integrated technical 
assistance for a more effective participation in the multilateral trading system and to reap the benefits of the liberalization efforts undertaken so far, according to a WTO Secretariat Report on 
the trade policies and pr actices of Mauritania. 
 
The WTO Secretariat report, along with the policy st atement by the Government of Mauritania, will 
serve as a basis for the first Trade  Policy Review (TPR) of Mauritania by the Trade Policy Review 
Body of the WTO on 11 and 13 September 2002.  
Since the end of the 1980s, but particularly since the beginning of the 1990s, Mauritania has 
embarked upon economic  reforms intended to liberalize its economy and foreign trade and 
strengthen the legislative framew ork.  The major reforms focused on: liberalizing  prices and 
eliminating barriers to international trade, liberali zation of the exchange regime;  stabilizing the 
financial sector;  gradual privatization of State enterprises;  and fiscal, customs and judicial reforms.  The structural reforms have laid the bases for sustained economic development and have 
decisively improved the business climate in Mauritania. 
 
These reforms, together with prudent macro-econom ic policies and foreign support, have allowed 
Mauritania to register a steady GDP growth, a modest level of inflation, and a marked 
improvement in public finance and the balance-of-payments.  Since 1993, Mauritania's GDP has risen at an average annual rate of 4.5 per cent, sustained mainly by government investment (often financed by external funds) and to a less er degree by exports.  Real GDP per capita has 
increased substantially since 1992.    
The report says that despite the progress achiev ed, there is still a high level of poverty in 
Mauritania; it is classified as a least developed country (LDC). Furthermore,  Mauritania's external 
debt remains at a high level (around US$2.5 billion in 1999), equivalent to over 260 per cent of its 
GDP. Mauritania's economy remains highly vulnerable to external shocks because of its narrow production and export base. Mauritania is depend ent on food imports, largely due to its arid 
climate. 
 PRESS/TPRB/200 
Page 2 of 11 
  Mauritania's trade regime has been reformed over the past years, with the objective of eliminating 
barriers to international trade and enhancing the competitiveness of Mauritania's exports.  
Customs procedures have been si mplified and the majority of cu stoms duties rationalized, while 
most non-tariff measures have been abolished.  The simple average MFN import duties (excluding 
a 3 per cent statistical fee) is 10.6 per cent. 
 A study carried out by the World Bank in 2001 shows that, despite sustained growth in the 
economy and significant trade refo rms, Mauritania is still not well integrated in the global 
economy.  The key obstacles to the development of Mauritania's trade include supply-side 
constraints (in particular the very limited number of  exportable products), limitations in port and 
road infrastructure, and the lack of human and institutional resources needed for more effective 
participation in the multilateral system, in negotiations in particular.  In order to tackle these constraints, a coherent programme of integrated technical assistance is needed.  Mauritania is one 
of the first three pilot countries for the implem entation of the Integrated Framework for Trade-
Related Technical Assistance to LDCs. 
 
Among other points made in the report are the following: 
-- Mauritania's foreign trade remains highly concen trated, especially in terms of products;  iron 
and fisheries products account for almost all exports.  -- Bridging the gap between bound tariff rates and those applied, while maintaining the current level of openness in the market, would enhance th e predictability of Mauritania's tariff regime. 
 
-- The export regime has also been liberalized.  Mauritania does not impose any bans or 
quantitative restrictions on exports and does not require export licences. 
 
-- In the past, the Mauritanian Government pursued a food self-sufficiency policy, but the agricultural sector has now been liberalized.  One of the principal features of the reform has been 
the development of agricultural credit, formerly reserved for rice production, and subsequently 
made available for other activities. 
 
-- Fishing is one of the key sectors of the Maurit anian economy.  The Government's policy in the 
sector is focussed principally on the protection of resources, improvement of the sector's performance, and the withdrawal of the State from production and marketing activities. 
 
-- The mining sector is considered to offer great po tential for Mauritania.  It is also one of the key 
sectors, and iron ore exports account for around 60 per cent of Mauritania's total exports. 
 
-- The Mauritanian manufacturing sector is co mparatively undeveloped.  The processing of 
fisheries products excluded, the sector contributes about 4.2 per cent to GDP (8.4 per cent 
including the processing of fisheries products).  -- The tourism sector is largely open to foreign participation and, since the adoption of a new law 
in 1996, investment in the sector has increased. 
 -- The liberalization and privatization of services such as financial or insurance services was initiated at the end of the 1980s and almo st all the banks have been privatized. 
 -- The liberalization of air transport and basic te lecommunication services got under way in the 
early 1990s. Air Mauritanie and Mauritel were privatized in 1999 and 2001 respectively. PRESS/TPRB/200 
Page 3 of 11 
  
Note to Editors 
Trade Policy Reviews are an exercise, mandated in the WTO agreements, in which member countries’ trade and related polici es are examined and evaluated at  regular intervals. Significant 
developments which may have an impact on the global trading system are also monitored. For 
each review, two documents are prepared: a policy  statement by the government of the member 
under review, and a detailed report written in dependently by the WTO Secretariat. These two 
documents are then discussed by the WTO’s full membership in the Trade Policy Review Body 
(TPRB). These documents and the proceedings of the TPRB’s meetings are published shortly 
afterwards. Since 1995, when the WTO came into force, services and trade-related aspects of 
intellectual property rights  have also been covered. 
 
For this review, the WTO’s Secretariat report, to gether with a policy statement prepared by the 
Government of Mauritania, will be discussed by the Trade Policy Review Body on 11 and 13 
September 2002. The Secretariat report covers th e development of all aspects of Mauritania's 
trade policies, including domestic laws and regulations, the institutional framework, trade policies 
and practices by measure, and developments in selected  sectors. 
 
Attached to this press release are the Summary Obse rvations of the Secretariat report and parts of 
the government policy statement. The Secretariat and the government reports are available under the country name in the full list of trade policy reviews at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm . These two documents and the minutes 
of the TPRB’s discussion and the Chairperson's su mming up, will be published in hardback in due 
course and will be available from the Secretariat, Centre William Rappard, 154 rue de Lausanne, 
1211 Geneva 21.  
Since December 1989, the following reports have been completed:  Argentina (1992 
and 1999), Australia (1989, 1994 and 1998), Austria (1992), Bahrain (2000) Bangladesh (1992 and 2000), Barbados (2002), Benin (1997), Bolivia (1993 and 1999), Botswana (1998), Brazil 
(1992, 1996 and 2000), Brunei Darussalam (2001),  Burkina Faso (1998), Cameroon (1995 and 
2001), Canada (1990, 1992, 1994, 1996, 1998 and 2000), Chile (1991 and 1997), Colombia (1990 and 1996), Costa Rica (1995 and 2001), Côte d’Ivoire (1995), Cyprus (1997), the Czech Republic (1996 and 2001), the Dominican Republic (1996), Egypt (1992 and 1999), El Salvador (1996), the European Communities (1991, 1993, 1 995, 1997, 2000 and 2002), Fiji (1997), Finland 
(1992), Gabon (2001), Ghana (1992 and 2001), Guatemala (2002), Guinea (1999), Haiti (2002), 
Hong Kong (1990, 1994 and 1998), Hungary (1 991 and 1998), Iceland (1994 and 2000), India 
(1993, 1998 and 2002), Indonesia (1991, 1994 and 1998), Israel (1994 and 1999), Jamaica 
(1998), Japan (1990, 1992, 1995,1998 and 2000), Kenya (1993 and 2000), Korea, Rep. of (1992, 
1996 and 2001), Lesotho (1998), Macao (1994 and 2001), Madagascar (2001), Malaysia (1993, 
1997 and 2001), Malawi (2002), Mali (1998), Mauritania (2002), Mauritius (1995 and 2001), Mexico (1993, 1997 and 2002), Morocco (1989 and 1996), Mozambique (2001), New Zealand 
(1990 and 1996), Namibia (1998), Nicaragua (1999), Nigeria (1991 and 1998), Norway (1991, 
1996 and 2000), OECS (2001), Pakistan (1995 and 2002), Papua New Guinea (1999), Paraguay 
(1997), Peru (1994 and 2000), the Philippines  (1993 and 1999), Poland (1993 and 2000), 
Romania (1992 and 1999), Senegal (1994), Singapore (1992, 1996 and 2000), Slovak Republic 
(1995 and 2001), Slovenia (2002), the Solomon Islands (1998), South Africa (1993 and 1998), Sri Lanka (1995), Swaziland (1998), Sweden (1990 and 1994), Switzerland (1991, 1996 and 2000 
(jointly with Liechtenstein)), Tanzania (2000), Thailand (1991, 1995 and 1999), Togo (1999), 
Trinidad and Tobago (1998), Tunisia (1994), Turkey (1994 and 1998), the United States (1989, 
1992, 1994, 1996, 1999 and 2001), Uganda (1995 and 2001), Uruguay (1992 and 1998), 
Venezuela (1996), Zambia (1996) and Zimbabwe (1994). 
 PRESS/TPRB/200 
Page 4 of 11 
  
 
TRADE POLICY REVIEW BODY 
MAURITANIA 
Report by the Secretariat – Summary observations 
 
Since the end of the 1980s, but particularly since the end of the military regime in 1992, 
Mauritania has embarked upon economic reforms intended to liberalize its economy and foreign 
trade and strengthen the legislative framework.  The major reforms focused on:  freeing prices 
and eliminating barriers to international trade, liberalization of the exchange regime;  stabilizing the financial sector;  gradual privatization of State enterprises;  and fiscal, customs and judicial 
reforms.  The structural reforms have laid the bases for sustained economic development and have 
decisively improved the business climate in Mauritania.  The reforms, prudent micro-economic policies and foreign support have allowed Mauritania's 
economy to make notable progress that has led in particular to steady growth of the economy, a 
modest level of inflation and a marked improvem ent in government finance and the balance-of-
payments.  Since 1993, Mauritania's GDP has risen at an average annual rate of 4.5 per cent, 
sustained mainly by government investment (often financed by external funds) and to a lesser 
degree by exports.  Real GDP per capita has increased substantially since 1992.  Despite this 
progress, there is still a high level of poverty in  Mauritania and it is one of the least developed 
countries (LDC).  
Mauritania's external debt continues to remain at a high level (around US$2.5 billion in 1999), 
equivalent to over 260 per cent of the GDP.  There is also a relatively high level of debt servicing, 
although it has improved from 24 per cent of expo rts in 2000 to 15.5 per cent in 2001.  Mauritania 
has qualified for debt relief under the enhanced Heavily Indebted Poor Countries Initiative (HIPC).  
In addition to its debt burden, Mauritania's econ omy remains highly vulnerable to external shocks 
because of its narrow production and export base.  The arid climate helps to make Mauritania 
dependent on food imports. 
 
Mauritania's economy has traditionally been based on trade and agriculture, especially livestock, to 
which have been added mining and fisheries.  The most important sectors in terms of share of GDP 
are:  services (with around 50 per cent) and agri culture (with around 18 per cent).  The fisheries 
and mining sectors as a whole, however, provide al most all exports of good s, despite their fairly 
modest share of the GDP (around 5 and 13 per cent respectively).  The manufacturing sector remains relatively undeveloped.  
International trade plays an important role in Ma uritania's economy.  The shares of imports and 
exports in the GDP are around 50 and 40 per cent respectively.  Foreign trade remains highly concentrated, especially in terms of products.  Comm odities play the leading role in trade in goods, 
particularly exports (iron and fisheries products).  The share of staple food products in imports has remained fairly stable (around 36 per cent of th e total);  petroleum products account for around 
16 per cent of total imports. 
 
The European Union (EU) is Maurit ania's main trading partner.  Depending on the year, it takes 
between two-thirds and three-quarters of Mauritan ia's exports;  in 2000, the figure was 71 per 
cent.  Asia's share has fallen since 1994, from almost 29 per cent to less than 14 per cent in 2000.  As far as imports are concerned, the EU is also Mauritania's major supplier, with a market share 
ranging from 55 to 64 per cent in the 1990s.  Although the shares of America and Africa have in 
general remained stable in recent years, Asia's share has continually decreased, especially since PRESS/TPRB/200 
Page 5 of 11 
  
1995.  Regional trade (with the exception of petroleum products from Algeria) is not very 
substantial.  Mauritania is a net importer of services, particularly transport services. 
 
Institutional and trade policy framework 
In 1991, Mauritania introduced multiparty rule into  its new Constitution, together with the principle 
of the separation of powers and recognition of individual and collective freedoms.  The current political system consists of an Executive power, vested  in the President of the Republic and the 
Government appointed by him, a Legislative po wer, exercised by the Parliament, which is 
composed of two houses, the National Assembly and the Senate, and a Judicial power, together 
with advisory institutions such as the Higher Islamic Council and the Economic and Social Council. 
 
Primary responsibility for framing and implementing  trade policy lies with the Ministry of Trade, 
Craft Industries and Tourism.  Other ministries such as the Ministries of Foreign Affairs and 
Cooperation, Economic Affairs and Development, Finance, Fisheries and the Maritime Economy, Rural Development and the Enviro nment, Interior, Post and Te lecommunications, Mining and 
Industry, Public Works and Transport, and Water Resources and Energy have direct responsibility 
in their respective spheres.  Closer coordination among these ministries would enable Mauritania 
to have a more consistent trade policy.  A formal framework for consultation with the private sector was established in 1996;  such consultation has become a regular practice since 1998 and appears to be highly valued by Mauritania's private sector.  Reducing poverty and improving the population's standard of living remain the key objectives of 
Government policy.  The general objectives of the poverty reduction strategy are to reduce the 
proportion of Mauritanian citizens living below the poverty threshold to less than 17 per cent by 
2015 and to attain the social development targets defined in respect of education, health, access 
to drinking water, and housing.  The authorities co nsider international trade to be an essential tool 
in economic development and, cons equently, in combating poverty. 
 
In recent years, Mauritania has revised and am ended a large number of trade-related  laws and 
regulations in order to enhance the trade and inve stment environment by liberalizing the economy 
and updating legislation to take into account its obligations under the multilateral trading system.  
The amendments concerned a variety of areas, including customs valuation, investment, 
government procurement and competition.  The following are among the texts recently amended 
(2002):  the Customs Code, the Investment Code, and the Government Procurement Law.  The 
competition legislation, which establishes freed om of trade, pricing and competition, was 
incorporated into the new Commercial Code in 2000.  Other texts recently adopted include the 
Arbitration Code, the Code of Obligations and Contracts, and texts regulating the organization of 
the Judiciary. 
 Mauritania's participation in the multilateral trading system and in regional and bilateral initiatives are a reflection of its efforts to become integrated in the global economy.  It is one of the original 
WTO Members and grants at least MFN treatment to all its trading partners.  Mauritania is neither a signatory to nor an observer in the WTO's plur ilateral agreements.  At the end of the Uruguay 
Round, Mauritania had bound 833 of its 5,533 tariff lines, corresponding to around 15 per cent of 
the total (including agriculture);  100 per cent of tariff lines for agricultural products have been bound.  Nevertheless, some confusion still rema ins because Mauritania's previous commitments 
(Geneva, Annecy and Torquay Schedules) have not been transposed into the Harmonized System.  
According to an unofficial prov isional transposition made by the WTO Secretariat, Mauritania's 
tariff bindings cover around 41 per cent of the total tariff lines. 
 PRESS/TPRB/200 
Page 6 of 11 
  Mauritania has also submitted its schedule of commitments on services.  The list does not contain 
any horizontal restrictions nor ex emptions from the obligation to grant MFN treatment.  Mauritania 
has undertaken specific commitments in the tourism sector.  At the Fourth Ministerial Meeting of 
the WTO in Doha, Mauritania underlined the importance of international trade as a tool for poverty 
reduction and supported the launching of a new ro und of multilateral tr ade negotiations.  As 
regards the WTO's dispute settlement mechanism, Mauritania has not been involved in any case.  Mauritania has not yet fulfilled its obligations in respect of most of the annual notifications required 
under the WTO Agreements. 
 
A study carried out by the World Bank in 2001 shows that, despite sustained growth in the 
economy and significant trade refo rms, Mauritania is still not well integrated in the global 
economy.  The key obstacles to development of Mauritania's trade include supply-side constraints (in particular the very limited number of expo rtable products), inadequate port and road 
infrastructure, and poor tourism facilities, the lack  of human and institutional resources needed for 
more effective participation in the multilateral system, and in negotiations in particular.  In order 
to tackle these constraints, a coherent programme of integrated technical assistance is needed.   
 
The trade-related areas in which Mauritania has the greatest need of assistance are:  knowledge of issues relating to the multilateral system, especially in university circles and the private sector and 
among officials responsible for implementing trade policy instruments;  notifications; 
implementation of the WTO Agreements and capacity -building for negotiations.  Mauritania is one 
of the first three pilot countries for the implem entation of the Integrated Framework for Trade-
Related Technical Assistance to  least developed countries. 
 Mauritania has signed a number of trade agreem ents with countries including Algeria, Egypt, 
Gambia, Mali, Morocco, Senegal and Tunisia.  It did not prove poss ible to determine definitively 
the level of tariff preferences cove red by these bilateral agreements .  Mauritania also belongs to 
the Arab Maghreb Union (UMA), which does not appear to be operational at present.  It was a 
Member of the ECOWAS until the end of 1999, when it withdrew for political and economic 
reasons.  Mauritanian products enjoy non-reciprocal prefer ential treatment on the European Union market 
under the Cotonou Agreement and the "Everythin g but Arms" Programme for LDCs.  Preferences 
are also granted to Mauritanian products on the United States market under the African Growth 
and Opportunity Act and on the markets of ot her developed countries under the Generalized 
System of Preferences (GSP).  
Trade policy instruments 
In recent years, Mauritania's trade regime has be en liberalized.  The purpose of the trade reform 
was to eliminate barriers to international trade an d to enhance the competitiveness of Mauritania's 
exports.  Customs procedures have been simp lified, and the majority of customs duties 
rationalized, while most non-tariff  measures have been abolished. 
 
In June 2002, Mauritania amended its customs valuation legislation and now uses the transaction 
value as the basis for valuing imported goods.  It would seem, however, that the minimum import value is still used for second-hand vehicles.  Customs tariffs are Mauritania's main trade policy instrument at the border.  A statistical fee of 3 per cent is also imposed on the majority of import ed goods.  All the customs tariffs applied are ad 
valorem duties, which makes the Mauritanian tariff sy stem more transparent.  Seasonal duties are 
applied to a limited number of agricultural products.  MFN duties have been reduced and PRESS/TPRB/200 
Page 7 of 11 
  
rationalized in recent years (the number of rates has fallen from 13 in 1997 to 4 in 2000), and the 
maximum duty fell from 30 to 20 per cent over the same period.  In 2002, the simple average of 
MFN duties applied (excluding the statistical fee) is 10.6 per cent, with an average of 10.3 per cent 
for manufactured goods and 12 per cent for agricult ural products (WTO definition).  The level of 
binding of MFN duties remains higher.  MFN duties on agricultural products have been bound at 
rates of 25 per cent, 30 per cent, 50 per cent and 75 per cent depending on the category of 
product;  duties on other goods (including leathe r, rubber, footwear and travel goods, together 
with transport equipment) have been bound at a uniform rate of 30 per cent.  Bridging the gap 
between bound rates and those applied, while main taining the current level of openness in the 
market, would enhance the predictabi lity of Mauritania's tariff regime.  Although there is a certain 
degree of escalation of MFN rates in some branches, in general the situation is less clear-cut.   
  
Overall, the rates applied to raw materials are slightly higher than those applicable to intermediate 
goods, but are lower than the rates applied to proc essed goods, which shows a relatively high level 
of protection given to certain agricultural commodities.  In general, escalation is slightly more 
marked in industry than in agriculture, although there are considerable discrepancies according to 
the branch of activity.  
Imported goods are subject to a value added tax (14 per cent) and some products are subject to 
excise duty.  The rates applied to imported products are the same as those applicable to domestic 
products. 
 
Some operators are eligible for exemptions from general taxes at the border.  Waivers and exemptions from import duties and taxes are classi fied into the following categories:  exemptions 
for the National Industrial and Mining Company (SNIM);  Investment Code;  aid and grants;  
diplomatic exemptions;  special exemptions;  partial waivers;  and other exemptions and waivers.   The Customs Code also includes a regime for th e refund of duties under which exporters are 
eligible for partial or total refunds of duty paid on imported inputs. 
 Mauritania's import regime includes few non-tariff ba rriers.  The import of the majority of products 
does not require an import licence.  There are very few import restrictions, which are mainly 
intended to guarantee safety, pub lic order and health.  The former quota system, which linked rice 
imports to purchase of local paddy rice, was abolished in 1999.  Mauritania does not have any 
standardization or quality control systems and does not possess an adequate infrastructure for 
testing and metrology.  It would appear that, for reasons such as safety or health, French, 
American or other international standards may be applied and required when products are imported into Mauritania.  The new Government Procurement Code came into effect in 2002 and it makes the regime more 
transparent, although Mauritanian enterprises may still be given a preferential margin of up to 15 
per cent.  Mauritania does not have any special legislation on the application of anti-dumping, 
countervailing or safeguard measures.  Some prov isions on anti-dumping measures can be found 
in the Customs Code, giving the President the ri ght to impose anti-dumping or countervailing 
measures through a decree, where necessary, but no  measure of this type has yet been applied. 
 
The export regime has also been liberalized.  Mauritania does not impose any bans or quantitative 
restrictions on exports and does not require export  licences.  Export taxes have been abolished, 
with the exception of products of the pelagic fishing industry and the small-scale fishing industry.  
The Government does not grant any special export subsidies. 
 PRESS/TPRB/200 
Page 8 of 11 
  There are no special incentives given to Mauritanian enterprises.  Some measures currently in 
effect allow enterprises to enjoy fiscal advantages such as the reimbursement of VAT, declining 
and deferred balances, and a system of free points for exporting enterprises. 
 
The legislation on the protection of intellectual property has been revised at the regional level 
(within the framework of the African Intellectual  Property Organization (AIPO)).  Mauritania's 
international commitments on intellectual proper ty rights are governed by the revised Bangui 
Agreement of 1999, which came into force in 2002.  According to the Mauritanian authorities, the 
purpose of the revision was to bring the regi onal system into conformity with the TRIPS 
Agreement.  The national authorities are respon sible for ensuring observ ance of intellectual 
property rights. 
Sectoral policies 
Mauritania does not apply any special sectoral tr ade policies.  The new Investment Code, enacted 
in 2002, establishes free points as the major tool  for promoting exports.  The Code applies to all 
sectors of the economy and, unlike the previous Code, no longer defines priority areas.  In 
general, the new Code considerably simplifies the financial incentives and abolishes the special 
regimes (with the exception of that applying to the national company SNIM). 
 In the past, the Mauritanian Government pursued a fo od self-sufficiency policy, but the agricultural 
sector has now been liberalized.  One of the principal features of the reform has been the 
development of agricultural credit, formerly rese rved for rice production, and subsequently made 
available for other activities.  Several programmes are being implemented, the most important of 
which is the Programme for the Integrated Develo pment of Irrigated Agriculture in Mauritania 
(PDIAIM).  The objective is mainly to increase va lue added in the agricultural sector and improve 
the employment opportunities and income of the inhabitants of the Senegal river valley.  The 
principal measures envisaged are the establishment of a favourable legal and institutional 
framework, the development of basic infrastructure, the diversification of production and the mitigation of the impact  on the environment. 
 
Fishing is one of the key sectors of the Mauritanian economy.  Initially, in the 1970s, fisheries 
policy was more protectionist and aimed primarily  at encouraging the creation of a national 
industrial fishing fleet;  in 1994, it was revise d and focused principally on the protection of 
resources, the rationalization of fishing, the improvement of the sector's performance and the 
continuing withdrawal of the St ate from production and marketing activities.  The new Fisheries 
Code of 2000 is also based on these principles and stresses the controlled development of 
commercial fishing, the expansio n of small-scale fishing and the reorganization and modernization 
of the Mauritanian fleet, together with developmen t of exports of processed products.  Mauritania 
has concluded bilateral fisheries agreements with Algeria, Japan, Morocco, Russia, Senegal, Tunisia 
and the European Union.  With regard to export s, the Mauritanian Fish Marketing Company (SMCP) 
has a monopoly of marketing of fisheries produc ts subject to the landing obligation (mainly 
cephalopods).  Other species may be freely exported.  The mining sector is considered to  offer great potential for Mauritania.  It is also one of the key 
sectors in Mauritania's economy;  iron ore export s account for around 60 per cent of Mauritania's 
total exports.  In 1999, with the assistance of the World Bank, the Government drew up the 
Project for the Institutional Strengthening of the Mi ning Sector (PRISM) whose main objective is to 
build Mauritania's capacity and improve its compet itiveness in order to attract private investment 
in the development of the mining sector.  A ne w Mining Code was adopted in 1999 designed to 
stimulate and encourage investment in mineral exploration and production. 
 PRESS/TPRB/200 
Page 9 of 11 
  
The Mauritanian manufacturing sector is comparat ively undeveloped.  The processing of fisheries 
products excluded, the sector contributes about 4.2 per cent to GDP (8.4 per cent including the 
processing of fisheries products).  Almost all manufacturing output is consumed locally. 
 
The liberalization and privatization of services such  as financial or insurance services was initiated 
at the end of the 1980s.  Almost all the banks have  been privatized.  To improve the financing of 
traditional sectors, in 1998, a new law on micro-fi nancial intermediation wa s adopted.  To finance 
the economic sectors with a strong potential for job creation, the authorities have encouraged the 
establishment of specialized institutions such as UNCACEM for agriculture or UNCOPAM for small-
scale fishing.  The liberalization of air transport and basic telecommunication services got under 
way in the early 1990s.  New legislation on air transport is being prepared and the 
telecommunications legislation was dr awn up in 1999.  Air Mauritanie and Mauritel were privatized 
in 1999 and 2001 respectively.  The tourism sector is largely open to foreign participation and, 
since the adoption of a new law in 1996, investment in this sector has increased. PRESS/TPRB/200 
Page 10 of 11 
   
TRADE POLICY REVIEW BODY 
MAURITANIA 
Report by the Government of Mauritania – Parts I and II 
 
Mauritania has an estimated population of 2.6 million and covers an area of 1,030,000 km2.  It is 
bordered to the north by the former Western Sahara  and Algeria, to the east by Mali, to the south 
by Mali and Senegal, and to the west by the Atlantic Ocean. 
 
For a little over a decade, with the support of its development partners, the Mauritanian 
Government has carried out a series of ambitious reforms covering all aspects of the country's 
political, economic and social life.  
The decentralization process initiated in 1986 led to the establishment of 208 communes.  
Multiparty democracy was introduced in 1991, with  the adoption of a Constitution guaranteeing 
fundamental freedoms and the sepa ration of the Executive, Legi slative and Judicial powers.  
 
The successive economic reform programmes begun in 1985 have stabilized the finances of the State and those of State-owned enterprises, rein forced the macroeconomic framework, liberalized 
markets and prices, improved the legal and judicial environment for business, fostered 
development of the private sector, improved infras tructure, and refocused the role of the State on 
its core functions of regulation, resource allocation and development of basic social services. 
 
In December 2000, the Government finalized a poverty reduction strategy, approved in 2001 by all Mauritania's development partners, and the World Bank and the International Monetary Fund in 
particular.  This strategy is geared towards the following three objectives: 
 To accelerate growth (with a target rate of 7 per cent); 
 
to anchor such growth in poverty-stricken areas by favouring a participatory approach;  to implement programmes aimed at the country' s poorest and develop human resources, with a 
focus on education, health and access to other essential services.  
To achieve these objectives, the Government is pursuing a policy essentially directed at stabilizing 
the macroeconomic environment, wh ile seeking greater efficiency in  public expenditure, giving 
impetus to the domestic private sector, implem enting measures conducive to foreign private 
investment, and increasing the co mpetitiveness of the economy, with an emphasis on export-
oriented sectors.  
The Government has also entered a new stage in rationalization of public administration with the 
implementation of a multi-year public expenditure programme. 
 
This programme, aimed at enhancing the efficiency and overall coherence of resource allocation, 
was applied to the health and education sectors in 2001.  The medium-term spending frameworks 
(CDMT) for rural and urban development and the tr ansport infrastructure will be introduced under 
the 2003 Finance Law. 
 
Full computerization of the public expenditure chai n, the decentralization of credit and a higher 
level of devolvement are also planned in order to  increase performance and effectiveness in the 
allocation of public resources. PRESS/TPRB/200 
Page 11 of 11 
  
Legal and institutional framework for business 
In order to enhance the business environment and attract foreign direct investment, the 
Government has launched a reform of the legal and judicial system. 
 
The legal and judicial framework for business ha s been restructured and harmonized through the 
revision or adoption of new regulatory instruments on business law, such as the Commercial Code, the Code of Obligations and Contracts, the Arbitration Code, the Code of Civil, Commercial and 
Administrative Procedure, the Investment Code, etc. 
 
Adopted in 2000, the Arbitration Code defines the various forms of arbitration, lays down 
transparent procedures that establ ish the primacy of law and respec t for the will of the parties, 
and specifies the modalities for the enforcement of arbitral awards and the channels for appeal.  
The Government Procurement Code has just been amended in order to adjust its provisions to 
current economic trends and promote the development of business by simplifying procedures. 
 
A new Investment Code was adopted in January 2002.  The priorities set by the Code are to 
encourage, and provide a more secure environmen t for, domestic and foreign private investment 
and to facilitate administrative procedures  for the approval of investment projects. 
 The tax burden has been substantially eased unde r the 2002 Finance Law in order to take account 
of the country's investment needs and of the sp ecial "Free Points" scheme defined in the Code. 
 
Mauritania is bound by investment protection agreements with several countries;  a number were signed in Brussels last year within the framewor k of the Third United Na tions Conference on the 
Least Developed Countries (LDCs).  Mauritania's accession to the United Nations Convention on the Recognition and Enforcement of 
Foreign Arbitral Awards bears witness to the coun try's determination further to upgrade the legal 
and institutional framework for business and to promote investment in a secure environment   
END