WORLD TRADE WT/LDC/HL/12/Add.6
24October 1997
ORGANIZATION(97-4686)
High-Level Meeting onIntegrated Initiatives for
Least-Developed Countries 'Trade Development
COUNTRY-SPECIFIC ROUND TABLES: DOCUMENTATION
Madagascar
Addendum
Documentation fortheRound Table Meeting forMadagascar.WT/LDC/HL/12/Add.6
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REPLIES TOCHECK-LIST FOR CONDUCTING TRADE-RELATED
TECHNICAL COOPERATION NEEDS ASSESSMENT
A. Trade Policy
(a) What arethesectors thatyoubelieve haveunexploited orunderexploited export potential?
Sectors having unexploited orunderexploited export potential are:
- Agriculture (fruit andvegetables, flowers, medicinal plants, essential oils,sisal,
cotton, etc).
Inthecaseofflowers, there arethree types exported byMadagascar:
(a) Living plants produced byfloriculture;
(b) orchid budsandscions;
(c) flower buds.
Thegrowing demand forliving plants could besatisfied byincreasing thecultivable
areas.
- livestock farming;
- fishing andpisciculture (fishproducts);
- handicrafts;
- energy andmines (precious andindustrial stones);
- agro-industry;
- tourism (hotel business, eco-tourism);
- industry, (sugar, textiles, handicrafts, etc.).
Inthecaseofsugar, fullexploitation oftheareas inwhich sugar canecanbecultivated and
animproved useoftheproduction units would make itpossible toincrease thesupply ofsugar.
(b) Could youplease define yourcountry 'sperspective ofthereasons foranychanges inthe
structure anddirection ofexports andimports?
Globalization oftheeconomy:
- Gradual withdrawal oftheState from theproduction andmarketing process;
- liberalization offoreign trade; and
- flexibility ofexchange rates.WT/LDC/HL/12/Add.6
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Payments deficit andtrade gap.
Indebtedness.
Adoption oftheStructural Adjustment Programme (SAP) which hasresulted inaliberalization
offoreign trade:
(a) Liberalization ofimports bytheadoption of:
(i) TheLiberalized Import Regime (RIL);
(ii) TheLiberalized Import System (SILI).
(b) Liberalization oftheexport sector bytheabolition ofexport taxes.
(c) Liberalization oftheexchange allocation system bytheadoption ofaflexible policy
concerning exchange rates(floating oftheMalagasy franc within thecontext ofthe
interbank currency market).
Globalization oftheeconomy hasmade itnecessary toincrease ourparticipation inworld trade.
(c) What have been theobjectives oftrade policy inthemost recent period, compared to,
say,twodecades ago?
Twodecades ago,there wasasystem ofimport quotas andprice controls.
Since 1988, Madagascar hasundertaken agradual liberalization ofitseconomy:
(a) Liberalization offoreign anddomestic trade (abolition ofimport quotas except inthe
caseofstrategic imports; abandonment ofprice controls andofsubsidies tovital
commodities; abolition oftaxes onexports);
(b) Installation ofanincentive regulatory environment.
Theimport substitution policy isgiving waytoanexport promotion policy.
(d) What aretheMinistries incharge oftrade policy matters, including formulation,
implementation,enforcementandmonitoring?Howiscoordinationmade?Whataretherespective
rolesoftherelevant Ministries (giveparticular attention totariff policies andother policies directly
affecting exports andimports ofgoods andservices)?
TheMinistries incharge oftrade policy matters are:
Ministry ofTrade andConsumption ,which isresponsible forthedefinition, formulation,
implementation, enforcement andmonitoring ofMadagascar 'strade policy.
Ministry ofForeign Affairs
MinistryofIndustryandHandicrafts:(policyandstrategiesregardingindustryandhandicrafts,
property inthematter ofindustry andhandicrafts, andintellectual property).WT/LDC/HL/12/Add.6
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Budget Ministry: policies andmeasures tostrengthen thecustoms administration andreduce
import exemptions.
MinistryofAgriculture:policiesandstrategiestoimproveagriculturalproductivityandpromote
anddiversify agricultural exports.
Ministry oftheEnvironment
Ministry ofJustice
Ministry ofPosts andTelecommunications: (policies andstrategies toimprove services in
thissector byreducing costs; extending useraccess, increasing thecompetitiveness oftheeconomy
andattracting private capital).
Ministry ofTourism: (tourism development policies andmeasures; making itpossible for
every Malagasy orforeign investor toinvest inthehotelbusiness andtheoperation oftourist complexes).
Ministry ofTransport
Ministry ofFinance andEconomic Affairs: policy designed to:strengthen thetaxauthorities
byreducing taxfraud andincreasing therevenue; liberalize payments abroad andopenthepossibility
ofinvestment toevery Malagasy orforeign investor.
Coordination must, however, becarried outbytheMinistry ofTrade.
Asfortariffpolicies andother policies directly affecting theexports andimports ofgoods and
services, allexport taxes havebeenabolished. Import taxes areproposed bytheBudget Ministry
(Directorate ofCustoms):
- Import duty: Consolidation ofcustoms duties plusimport levy[maximum 30percent
(10percent-20percent-30percent)]
- Domestic taxes: VAT-TUT-TUPP (Value added tax,single taxontransactions and
single taxonoilproducts).
(e) Howaretheprivate sector andacademic institutions associated withtheformulation and
conduct oftrade policy?
Asregards theformulation andconduct oftradepolicy, noconsultation arrangement hasbeen
made todate,butworking meetings withtheprivate sector andtheacademic institutions areenvisaged.
Alltheseactions willbecome areality through theestablishment ofthenational exporters 'committee.
Chamber ofCommerce, Industry andAgriculture
ProfessionalOrganizations:(BusinessGroupings,Associations,TradeUnions,Union,Council
ofEconomic Agents).
TheMinistry ofTrade willberesponsible forcoordination, since there isnotyetapermanent
institutional structure toensure effective coordination among thevarious Ministries.WT/LDC/HL/12/Add.6
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Aninformal adhocstructure isformed whenever there isaspecific subject tobediscussed.
Hence theneedtoestablish anational committee fortheimplementation oftheWTO Agreements.
Thecommittee willbemade upofthevarious technical ministries concerned withWTO matters
andtheprofessional organizations ofeconomic agents.
However, there isafinancing problem regarding itsoperation.
(f) What aretheinstitutions inyour country thatcanplayaroleinimplementation ofa
trade-related project atthelocal level? State their respective roles.
Institutions thatcanplayaroleinimplementation ofatrade-related policy atthelocallevel
TheMinistry ofTrade andConsumption could playthisrolethrough itsfollowing technical
directorates:
(a) DirectorateofInternationalTradeRelations(relationswiththeinternationalorganizations
concerned withtrade, suchasWTO, UNCTAD andITC).
(b) Directorate ofStandardization andQuality (promotion ofstandards andthequality of
export products).
(c) Directorate forthePromotion ofForeign Trade (support totheeconomic agents, market
research, fairs, andevents).
TheMinistry ofIndustry andHandicrafts (definition ofguidelines forcooperative projects and
financing intheindustrial andhandicrafts sectors).
TheMinistry ofAgriculture (projects relating tothediversification ofagricultural products
forexport).
Chamber ofCommerce, Industry andAgriculture.
Non-governmental organizations.
International organizations (UNDP, UNIDO, World Bank).
Roleoftheinstitutions inimplementing these projects:
(a) Feasibility studies;
(b) financing;
(c) monitoring;
(d) assessment;
(e) supervision.WT/LDC/HL/12/Add.6
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(g) What arethemain lawsandregulations dealing withtrade policy -onexports andimports?
Please provide ashort description ofeach.
Thetextsgoverning trade policy areasfollows:
- Decree No.92,424 of3April 1992 regulating imports from abroad andexports of
goods toforeign countries (Ministry ofTrade);
- Laws andregulations (Budget Ministry);
Forexports: Specificity ofthecustoms tariff:
Export levyonvanilla;
Asfrom 1May1997: abolition.
NB: Drawbacks andlevies onproducts intheprovince arenotfactors hindering
exports.
- Laws concerning export processing zones andtax-free enterprises.
- Drawbacks (Article 151bisoftheCustoms Code).
Objective: Encouragement toexport.
Range between US$400 andUS$100,000.
Domiciliation: Customs collector ofrevenues from imports andexports.
Forimports: Liberalization since 1988.
Competition andstandards act(incourse ofpreparation).
Commercial code(incourse ofpreparation).
Request fortechnical assistance fortheformulation and/or implementation oftheabove projects.
(h) What arethemain instruments oftrade policy -onexports andimports? Please elaborate
(e.gonimport restrictions, thequestions might be:onwhat products arethere anyimport bans;
onwhat products arequantitative import restrictions; licensing requirements, etc.; what isthe
highest tariff ratecurrently inuse; arethere anyexcise taxes, other "domestic" taxes thatare
applied differentially toimported goods, ortogoods ofatypethatareprincipally imported?)
Themain instruments oftrade policy -onexports andimports are:
- Liberalization ofexports andimports;
- restrictiononimports:forreasonsofsecurity,importsofthefollowingproductsrequire
prior authorization bythedepartment concerned:
- Arms andammunition (guns, bullets, etc.)-Ministry ofDefence; and
- certain medicines -Ministry ofHealth.WT/LDC/HL/12/Add.6
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- Noimport licence isrequired butanimport statistics cardmust becompleted;
- Domestic taxes:
- Excise tax(luxury products)
e.g:customs item: 84-18 refrigerators: 20percent
87-03 vehicles (other thanambulances) 15percent
87-11 motorcycles 500cm315percent.
(i) IncaseyourareaWTO Member orareintheprocess ofacceding, howisyourcountry
preparing itself tocomply withtheWTO Agreements?
Madagascar hasbeenamember ofWTO since 17November 1995.
Ithasalready submitted notifications inthefollowing areas: intellectual property, valuation
forcustoms purposes, investment, services andimport licensing.
Difficulties encountered inconnection withnotification procedures are:
(a) Certain domestic legislative andregulatory textshavenotbeenupdated;
(b) most ofthese textsarenotinkeeping withtheWTO Agreements;
(c) excessively cumbersome administrative procedures andpolitical instability havealso
hadaneffect onthepreparation ofthese notifications;
(d) ignorance ofWTO rules.
Madagascar willimplement theGATT/WTO Agreement onvaluation forcustoms purposes
bytheyear2000.
Madagascar hastaken thefollowing steps tocomply withtheWTO Agreements:
- Establishment ofacommittee toimplement theWTO Agreement consisting ofallthe
technical ministries concerned, withcoordination being carried outbytheMinistry
ofTrade.
(j) What isthestate offamiliarity withtheWTO framework:
- Among government andgovernment-related agencies?
- intheprivate sector?
Neither government andgovernment-related agencies northeprivate sector havesufficient
familiarity withtheWTO framework.
(k) What areyour technical assistance requirements withregard toyour compliance with
theWTO Agreements?
Toenable ittocomply withtheWTO Agreements, Madagascar requires technical assistance
totraineconomic agents andcivilservants andalsotrade information.WT/LDC/HL/12/Add.6
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(l) Inwhich specific areas oftheWTO Agreements doyouhave technical assistance needs
(e.g.market access, agriculture, rules (anti-dumping, subsidies, import licensing, rules oforigin,
safeguards, etc.), TBT andSPS, Services, TRIPS)?
Thespecific areas oftheWTO Agreements inwhich there aretechnical assistance needs are
thefollowing:
- Market access;
- agriculture;
- rules (anti-dumping, subsidies, rules oforigin, safeguards);
- TBTandSPS;
- services;
- TRIPS;
- settlement ofdisputes.
(m) What isyourassessment ofyourexisting trade analysis andnegotiating capacities, both
multilateralandbilateral,inareasalreadycoveredbytheWTOAgreementsandothertrade-related
areas, e.g.competition policy andtrade andenvironment?
Ourtrade analysis capacities arestillverylimited.
Ourcapacities formultilateral negotiations andbilateral negotiations arestillinadequate, both
inareas already covered bytheWTO Agreements andinother trade-related areas (competition,
environment, etc.).
B. Obstacles toTrade Expansion
Obstacles totrade encompassing problems inexport markets, infrastructure, human capacities,
institutional bottlenecks, trade financing problems andgapsintrade information caninhibit
aleastdeveloped country fromtaking fulladvantage oftrading opportunities.
Supply constraints, including institutional bottlenecks
(a) What arethemain bottlenecks inhibiting thedevelopment ofsustained export capacity
ofgoods andservices (e.g.customs facilitation, freight charges, quality management, elimination
ofcumbersomelegalandadministrativeprocedures,paucityofhumanskills,accessatinternational
prices toimported inputs, orinadequate telecommunication, portandtransport facilities etc.)?
- Land-locked countries mayfaceadditional problems, suchashaving toshipusing costly
orunreliable transport andports systems. Incasethisapplies toyourcountry, please
indicate suchproblems. What kindoftechnical assistance would helpyouwork out
these problems?
Themain obstacles todeveloping asustained export capacity ofgoods andservices are:WT/LDC/HL/12/Add.6
Page9
- Freight charges thataretoohighbecause ofthegeographical distance ofourtrade
partners, particularly airfreight charges, because ofweak capacity andtheabsence
ofcargoes;
- lackofskilled personnel inboththeadministration andtheprivate sector;
- highcostofimported production factors;
- absence ofportinstallations andofvisits byocean-going liners incertain production
zones;
- inadequacy, orindeed absence, ofinformation onforeign markets, owing toalack
ofconnection withtheinternational networks;
- inadequacy ofnational quality standards forexport products.
Theestablishment oftheMalagasy quality movement, which willbecome operational in
August 1997, should benoted.
(b) Arethere anyinstitutional bottlenecks, which mayimpede theefficient conduct ofyour
country 'strade policies? Provide details. Forexample, what aretheproblems perceived bythe
different actors, e.g.exporters, producers, service providers (banks, insurance companies, quality
control, transporters, etc.), professional associations andMinistries? Areproblems mainly
perceived intheareaof:
(i) Human resources;
(ii) management oftheinstitution;
(iii) financial andmaterial resources;
(iv) communication .
Theinstitutional bottlenecks are:
- Absence ofexport financing;
- inadequacy ofairandsealinks between Madagascar anditspartner countries;
- insufficient supply ofskilled personnel andofequipment forquality control;
- inadequacy ofmeans ofcirculating/communicating regulatory textsontrade(standards,
technical regulations, etc.);
- lackoffinancial means toimplement thetrade policy; and
- banking problems.
Banking problems encountered:
Absence ofexport credits (export guarantees andinsurance).WT/LDC/HL/12/Add.6
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Access tocredit isaproblem forMalagasy enterprises ingeneral. They operate inan
underdeveloped financial environment. Most ofthem havedifficulty inobtaining bankloans. Bank
interest charges canreach 40percent(indicative rateof15percentinApril 1997, despite asignificant
dropatthebeginning ofthisyear).
Thebanks donotalways haveconfidence insmall- andmedium-sized enterprises.
(c) What arethemain bottlenecks toexport diversification ?
Themain bottlenecks toexport diversification are:
- Ignorance offoreign markets;
- theproblem ofstandards;
- highcostofadapting products tomarket requirements;
- inadequate investment inproduction; and
- absence ofcoordination between theproduction andexport sectors.
(d) Ifinvestment intheproduction ofgoods andservices isinadequate, what arethemain
reasons? Please elaborate them (e.g. structural constraints, difficulties inattracting foreign
investment, limited enterprise development, financing, lackofappropriate technology, etc.)
Thereasons fortheinadequacy ofinvestment are:
Difficulties inattracting investment, mainly duetopolitical instability andtheinadequacy of
infrastructures andcommunications, although labour isconsidered tobeverycheap.
Thelimited development ofenterprises istobeexplained bythelackofinvestment capital,
theshortage ofspecialized technicians andthelackofadequate sources ofinformation (Internet,
CD-ROM, etc.).
(e) Isthere anational policy toencourage export-related investment opportunities? Please
elaborate. What arrangements areinplace forreviewing, drafting andnegotiating contractual
arrangements withforeign investors?
National policy toencourage export-related investment opportunities
Since therepeal oftheInvestment Code, onlytheordinary lawregime hasbeenapplied and
thisdoesnotasyetinclude anyparticular incentive toexport-related investment.
Nevertheless, thefollowing measures canberegarded asincentives:
(a) Simplification ofadministrative procedures;
(b) creation ofanenvironment encouraging agreater availability ofinformation onforeign
markets (market (?),participation infairsandininternational trade events);
(c) organization ofmeetings between Malagasy businessmen andtheirforeign partners;
andWT/LDC/HL/12/Add.6
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(d) implementation oftheExport Processing Zone regime.
(f) What arethemain obstacles tothetransfer, development andacquisition oftechnology?
Isthere anynational policy/strategy inthisarea? Please elaborate.
Themain obstacles tothetransfer, development andacquisition oftechnology are:thecost
ofsources ofsupply andthelackofinformation thereon.
Apartfromtheareaofbilateralrelationsandregionalcooperation,nopolicyhasbeenformulated.
(g) What areyour technical assistance orother assistance needs with respect tosupply
constraints?
Ourtechnical assistance needs withrespect tosupply constraints are:
- Study andidentification ofbuoyant markets;
- assistance intheareaofstandardization andcertification andquality control ofproducts;
and
- installation ofastandardized information system (connection totheIsonet andInternet
networks).
Trade promotion andtrade support services
Trade promotion comprises anintegrated setoftechnical andfinancial services toenhance
theglobal competitiveness ofenterprises andthusfacilitate their entry andincreasing
participation ininternational trade.
(h) Doyour enterprises, especially small andmedium enterprises, experience difficulties in
expanding their exports? What arethese problems inthemajor export sectors?
Theproblems encountered byenterprises are:
- Absence ofstandards;
- highinterest rates;
- inappropriate technology;
- lackofinformation;
- weakness ofproductivity;
- ignorance ofinternational markets; and
- cumbersome administrative procedures.
(i) Whataretheproblemsforyourenterprisesinobtainingreliableandup-to-dateinformation
onexport/import business opportunities?
Theproblems encountered byenterprises inthisareaare:WT/LDC/HL/12/Add.6
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- Thenon-existence ofarecognized information centre; and
- thelackofreliable andup-to-date information intheChamber ofCommerce.
Itshould benoted thatthePRIDE project inthecontext oftheIndian Ocean Commission and
theFASP project intend toinstall asystem ofinternational trade information.
Theinadequacyofinformationconcerningforeignmarketsisregardedasthemainfactorlimiting
exports. Thislackisfeltinparticular inthechemistry/fats sector, wood/paper sector, andagro-industry.
Asthings stand, there isvirtually nostructure capable ofsatisfying thisneedforinformation.
(j) Canyour enterprises offer products ofinternationally acceptable design, quality and
packaging toforeign buyers? Ifnot,what aretheproblems?
While ourenterprises arecapable ofoffering internationally acceptable products toforeign
buyers, some ofthem needmeasuring andanalysis instruments.
(k) What problems, other thaninterms oftrade policy, doyouanticipate indeveloping the
export ofservices (e.g.computer software, tourism)?
Theproblems, other thanthose oftrade policy, which weencounter indeveloping theexport
ofservices (e.g.computer software, tourism) are:
- Thehuman resources problem;
- thereception infrastructure;
- theroadnetwork;
- communications.
(l) What arethetechnical/professional problems encountered bytrade support institutions
(e.g.trade promotion council, chamber ofcommerce, exporters association, etc.)inyourcountry
inproviding their services toexport/import enterprises?
Thetechnical/professional problems encountered bytrade support institutions are:
- Financing;
- human resources.
(m) What problems anddeficiencies areexperienced byenterprises intheir international
purchasing andinventory management?
Theproblems experienced byenterprises intheir international purchasing andinventory
management are:
- Instability ofexchange rates;
- insufficiency offoreign currency;
- cash-flow problems.WT/LDC/HL/12/Add.6
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(n) What arethepresent availability andarrangements fortrade finance facilities (e.g.export
credit guarantees, etc.)? Arethere anyperceived deficiencies inthisarea?
Availability andarrangements fortrade finance facilities areenvisaged within thecontext of
thePRIDE project (regional cooperation), butarelargely inadequate.
Theviews ofMadagascar onthePRIDE project inthecontext oftheIndian Ocean Commission:
TheMalagasy authorities andtheeconomic agents havegiven afavourable reception tothe
programme being implemented byPRIDE, particularly withregard totheestablishment ofEnterprise
Bureaus intheprovincial capitals, asconstituting theinterface between theeconomic agents andthe
PRIDE Regional Directorate.
(o) What arethemain problems inthewayofimproving export/import management skills
ofyour business enterprises? Doyouhave training programmes inthecountry? What arethe
deficiencies?
Themain problems inthewayofimproving export/import management skills are:
- Lack offinance;
- inadequacy ofthespecialized training centre (thelackofteaching material and
specialized teachers intheInternational Trade Techniques andPractices Centre should
benoted).
(p) Does your trade representation service actively promote your trade? What arethe
weaknesses?
Ourtraderepresentationservicesabroadarenotabletorespondeffectivelytothevariousrequests
forassistance andinformation from thebusiness community inthecountry.
These deficiencies areduemainly tothelackofmeans, bothfinancial andmaterial, toinstall
thenecessary information capacities. There arenotsufficient infrastructures topromote trade and
thusthere areproblems inbothcollecting anddistributing information.
Information istransmitted onlybytheMinistry ofForeign Affairs.
(q) Briefly describe yourtechnical assistance needs intheareaoftrade promotion andsupport
services.
Ourtechnical assistance needs intheareaoftrade promotion andsupport services are:
- Assistance torevitalize theChambers ofCommerce;
- trade information (connection totheinternational networks);
- needforaconsultant todefine apromotion strategy andprogramme;
- assistance toapprove thequality anddiversification ofexport products.WT/LDC/HL/12/Add.6
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Market access
(r) What areyour main market access problems?
Ourmain market access problems are:
(a) Ignorance oftheforces influencing supply anddemand;
(b) lackofinformation oninternational markets;
(c) problems relating tocredits, risksharing, thenegotiating capacity oftheproducers,
packaging, standards andquality;
(d) non-tariff measures applied bytheindustrialized countries;
(e) settlement oftrade disputes.
Allthese problems arelinked totheinadequacy oftheinfrastructures needed fortrade
information, therestructuring ofprofessional organizations andtheimprovement ofthequality ofexport
products.
(s) What specific problems orbarriers, andinwhich countries, aremost troublesome for
your exporters?
Thespecific barriers are:
- Standards problems intheEuropean countries;
- quality inspection, despite theissue ofpreshipment certificates forthegoods.
(t) Regional andsubregional trading arrangements (RTAs): please listRTAs towhich your
country belongs. Areyousatisfied withtheperformance ofthese RTAs? Please statetheproblems
ofeach. Doyouhave suggestions onhowtosolve these?
Regional andsubregional trading arrangements:
- Indian Ocean Commission (IOC): satisfactory;
- Common Market forEastern andSouthern Africa (COMESA): satisfactory;
- Lomé Convention (ACP): erosion ofpreferences inthemarket oftheEuropean Union.
(u) Arethere anyproblems inutilizing theexisting market access preferences, suchasGSP,
GSTP? Please state thenature ofproblems relating toeachofthese.
Problems encountered inusing thepreference systems:
- SGP: schemes ofpreference already outdated, erosion ofpreferences.WT/LDC/HL/12/Add.6
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(v) What areyour technical assistance needs withrespect tomarket access?
Technical assistance needs: seminar onmarket access andother problems, training incertain
instruments oftheWTO Agreement.
Establishment ofanational standardization andcertification system.
Establishment ofatrade information centre.
Training ofeconomic agents.
Establishment ofaTrade Point.
C. Technical Assistance
Technical assistance isnormally provided todeveloping andleastdeveloped countries tobuild
orenhance theirhuman resources andinstitutional capacities, provide trade information and
trade-related legalsupport, aswellasimprove theirsupply capabilities inorder tomake them
more active players inthefieldofmultilateral trade.
(a) Totheextent thiskindofinformation iseasily available, could youplease briefly describe
what trade-related assistance youhave received over thepastfiveyears from bilateral and
multilateral sources andwhatprojects/programmes arepresently under consideration inthisarea?
Technical assistance received overthepastfiveyears:
Seminars:
- 1993: National Seminar onGATT activities andtheMultilateral Trade Negotiations
oftheUruguay Round (30March to1April 1993); Assistance inthepreparation of
initial tenders, onquestions ofmarket access andonthetrade inservices.
- 1996: National Seminar onthefunctioning ofthetradesystem aftertheUruguay Round
andonvaluation forcustoms purposes (1-5April 1996).
- 1997: ITCNational Seminar onthe"Guide forenterprises", 3-4July1997.
Projects andprogrammes launched overthepastfiveyears
(a) Madagascar Agricultural Export Liberalization Support Project (USAID)
(b) PROMEX -PMA (France)
(c) PRIDE (European Union)
(d) Investing inMadagascar (UNIDO/UNDP)
(e) Doing business inMadagascar (ILO/UNDP)
(f) Agricultural Exports Promotion Programme (PPEA) (World Bank)
Projects currently inprogress (intheMinistry ofTrade)WT/LDC/HL/12/Add.6
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Support totheDirectorate ofStandardization andQuality.
Financing: European Union, Funds: FED -STABEX 91/92/93 COMSTABEX 91/92/93,
of3September 1996.
- Agricultural Exports Support Project.
FACConvention No.95/0078 -"Studies forthedefinition ofquality standards fortheexport
oflychees".
- Project awaiting financing: "Preparatory assistance forthepromotion anddevelopment
offoreign trade" (proposed technical cooperation withITC).
AlltheseminarswereheldatAntananarivo.Wearenowconsideringthepossibilityoforganizing
information meetings ontheWTO Agreements and,inthefuture, holding seminars intheprovinces.
(b) Please summarize your technical assistance needs aswellasother needs asreflected in
thischeck-list. Please rank them interms ofpriority.
Technical assistance needs:
1. Formulation oftheTrade Policy Review Mechanism (TPRM).
Madagascar wishes toparticipate intheTPRM andwould liketoreceive technical
assistance inthisarea. Todate, ithasnotbeenpossible tosubmit anytrade policy
project totheWTO Secretariat.
2. Establishment ofaspecialized training centre, aTrade Point andatrade information
system.
Allthese programmes willrequire technical assistance fortheirachievement.
3. Thediversification andimprovement ofproduct quality arealsoveryimportant matters
tobeconsidered ingreater depth, andtechnical assistance would berequested onthis
subject.
(c) Inthelight oftheinformation youhave been abletoprovide sofarinresponse tothe
questions inthischeck-list, what types ofinformation are,inyour view, stillmissing orcould
beimproved upon? Inorder toassist youinproviding thismissing information, would youneed
technical assistance?
No.
(d) Does your country have thetechnological capacity andhuman resources tomake useof
thenewinformation/communication technology toolssuchasCD-ROM, theInternet, etc?What
assistance would youneedtoenable yourcountry tousethese toolsinthecontext oftraining and,
more generally, inthecontext oftrade development?
Madagascarhasthetechnologicalcapacityandthehumanresourcestomakeuseofthetechnology
tools, buttechnical assistance inthisareastillneeds tobestrengthened.WT/LDC/HL/12/Add.6
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Integrated Reply
Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion A(k):
Technical assistance requirements with
regard tocompliance withtheWTO
Agreements
Madagascar requires technical assistance
totraineconomic agents andcivilservants
andalsotrade informationUNCTAD Anational programme of
training andawareness raising
onthefunctioning ofthenew
multilateral trade framework,
forboththecivilservants
concerned andtheprivate
sector, willbeimplemented.*
Thisactivity wasprogrammed
during thejointUNCTAD/ITC
mission inJuly1997 within the
framework oftheIntegrated
National Programme approved
bytheTrade andDevelopment
Board (MP1997).
UNDP/
UNCTADAprogramme fortraining trade
trainers andstrengthening trade
training institutions willbe
carried outintheperiod
1998-2000.
World Bank/
WTO/ITCAregional seminar onthe
institutions andeconomic logic
ofinternational trade willbe
organized inthecontext ofthe
jointWorld Bank/WTO
initiative. Attheendofthe
seminar, specific subjects will
beselected forfollow-up in
greater depth (February/
March 1998).
*Financing toberequested.WT/LDC/HL/12/Add.6
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Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion A(k)(cont'd):
WTO -Specialized regional seminars
willbeorganized forthe
French-speaking least
developed countries (1998 and
1999).
-Athree-week trade policy
course willbeorganized for
theFrench-speaking least
developed countries (1998 and
1999)
*Financing toberequested.WT/LDC/HL/12/Add.6
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Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion A(l):
Technical assistance inspecific areas of
theWTO Agreements
WTO Specific assistance willbegiven
byWTO toenable Madagascar
bothtoobtain abetter
knowledge ofthevarious areas
ofWTO andtoimplement the
multilateral Agreements,
particularly withregard to
establishing itsnotification
requirements (1998-2000).
Market access World Bank/
WTOAregional seminar onthe
institutions andeconomic logic
ofinternational trade willbe
organized inthecontext ofthe
jointWorld Bank/WTO
initiative. Attheendofthe
seminar, specific subjects will
beselected forfollow-up in
greater depth (February/March
1998).
WTO During theproposed activities,
improved dissemination of
information onmatters relating
tomarket access andagriculture
willbeensured. SeeA(k).
*Financing toberequested.WT/LDC/HL/12/Add.6
Page20
Technical assistance needs identified
inthequestionnaireOrganization Reply
Question A(l)(cont'd):
Agriculture UNCTAD Thissubject willbeincluded in
anational training programme
forthecivilservants concerned
andtheprivate sector.* See
A(k).
UNDP/ITC/
UNCTAD
(WIPO)TheRAF/96/001 programme
alsoprovides forsupport tothe
African countries (including
Madagascar) incarrying out
sectoral studies soastohelpthe
countries toobtain abetter
understanding ofinternational
trade issues andthusprepare
them more effectively forfuture
negotiations.
World Bank/
WTOAregional seminar onthe
institutions andeconomic logic
ofinternational trade willbe
organized inthecontext ofthe
jointWorld Bank/WTO
initiative. Agriculture willform
thesubject ofaparticular
module oftheseminar. The
cooperation ofFAO willbe
requested (February/March
1998).
WTO SeeWTO reply regarding
market access above andA(k).
Rules (anti-dumping, subsidies, rules of
origin andsafeguards)UNCTAD Technical assistance (advice and
training) concerning the
implementation ofthenew
competition actwillbesupplied.
World Bank/
WTOAregional seminar onthe
institutions andeconomic logic
ofinternational trade willbe
organized inthecontext ofthe
jointWorld Bank/WTO
initiative. Attheendofthe
seminar, specific subjects will
beselected forfollow-up in
greater depth (February/March
1998).
*Financing toberequested.WT/LDC/HL/12/Add.6
Page21
Technical assistance needs identified
inthequestionnaireOrganization Reply
Question A(l)(cont'd):
WTO Assistance willbegiven by
WTO tohelpthecountry
formulate/revise itstrade
legislation onanti-dumping,
subsidies andsafeguards.
(1998-2000)
TBTandSPS UNCTAD Thesubject willbeincluded ina
national training programme for
thecivilservants concerned and
theprivate sector.* SeeA(k).
World Bank/
WTOAregional seminar onthe
institutions andeconomic logic
ofinternational trade willbe
organized inthecontext ofthe
jointWorld Bank/WTO
initiative. Attheendofthe
seminar, specific subjects will
beselected forfollow-up in
greater depth. (February/March
1998).
WTO Information concerning the
Agreements willbemade
available atthespecialized
seminars towhich
representatives willbeinvited
(1998 and1999).
Services UNCTAD Technical assistance to
strengthen capacity todevelop
thetrade inservices andprepare
adevelopment strategy for
services isbeing supplied inthe
context oftheCAPAS
programme.
WTO Atechnical assistance mission
willbesentin1998 forthe
purpose ofensuring that
information isdisseminated on
thelegalframework andthe
services negotiations.
*Financing toberequested.WT/LDC/HL/12/Add.6
Page22
Technical assistance needs identified
inthequestionnaireOrganization Reply
Question A(l)(cont'd):
TRIPS WTO Inaccordance withtheTechnical
Cooperation Agreement between
theWTO andWIPO, assistance
willbegiven forthetraining of
Malagasy personnel intheform of
thedissemination ofinformation
andthesupply ofteaching
material.
Settlement ofdisputes World Bank/
WTOAregional seminar onthe
institutions andeconomic logic of
international trade willbe
organized inthecontext ofthe
jointWorld Bank/WTO initiative.
Attheendoftheseminar, specific
subjects willbeselected for
follow-up ingreater depth.
(February/March 1998)
WTO SeeA(k)above.
*Financing toberequested.WT/LDC/HL/12/Add.6
Page23
Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion A(m):
Assessment oftrade analysis and
negotiating capacities
Ourtrade analysis capacities arestill
verylimited.UNDP/
UNCTADUNDP intends, through the
RAF/96/001 programme, to
engage inactivities atthe
subregional level(particularly
training) which willmake it
possible tostrengthen thetrade
analysis andnegotiating capacities
oftheAfrican countries, including
Madagascar.
World Bank
(COMESA)Establishment ofthecommittee for
theregional dimension of
adjustment (CODRA) and
provision oftechnical assistance on
thesubjects of:(i)international
trade problems and(ii)negotiating
capacities.
Ourcapacities formultilateral
negotiations andbilateral negotiations
arestillinadequate, bothinareas
already covered bytheWTO
Agreements andinother trade-related
areas (competition, environment, etc.)UNCTAD Technical assistance (advice and
training) willbesupplied in1998.*
(MP1997) SeeA(k).
WTO During theshort trade policy
courses (cf.A(k)), atraining
module willbeincluded inthe
programme soastofamiliarize the
participants withmultilateral trade
negotiations.
*Financing toberequested.WT/LDC/HL/12/Add.6
Page24
Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion B(g):
Technical assistance needs with
respect tosupply constraints
Study andidentification ofbuoyant
marketsITC Aprogramming andadvisory
mission wascarried outinthe
summer of1997 todefine the
components ofatechnical
cooperation project todevelop
exports.
Thisproject willprovide support
tothefollowing areas:
-Institutional support;
-trade information; and
-quality strengthening.* (MP
1997)
Inaddition, export market studies
andbuyer-seller meetings willbe
organized within theframework of
theprojects currently being
implemented forthedevelopment
ofintra-African trade.
Assistance intheareaof
standardization andcertification and
quality control ofproducts.UNDP/
ITCAssistance bytheInstitute for
Standardization isprovided forin
project MP1997.*
World Bank Technical assistance ofthiskind
willbegiven intheframework of
theprivate sector support project.
Installation ofastandardized
information system (connection tothe
Isonet andInternet networks)UNDP TheRAF/96/002 Internet project,
tobedeveloped bytheUNDP
Regional Office forAfrica, will
cover partoftheactivities relating
tothisrequest. Thepractical ways
andmeans ofthisUNDP
assistance willbedetermined later.
World Bank/
WTOThissystem could besupplied by
theJoint Bank/WTO website.
*Financing toberequested.WT/LDC/HL/12/Add.6
Page25
Technical assistance needs identified in
thequestionnaireOrganization Reply
Inreply toquestion B(q):
Technical assistance needs inthearea
oftrade promotion andsupport services
Assistance torevitalize theChambers
ofCommerceITC SeeB(g).
Trade information (connection tothe
international networks)UNDP Seeabove.
ITC SeeB(g).
UNCTAD Assistance toestablish aTrade
Point inMadagascar (andseveral
trade points later) willbesupplied
within theframework ofthe
Integrated National Programme
andtheTRAINS CD-ROM.
(MP1997)
Need foraconsultant todefine a
promotion strategy andprogrammeWorld Bank Theprivate sector support project
willinclude promotion
programmes.
Trade representation abroad UNCTAD/
ITCDeveloping thecompetence of
Malagasy trade diplomacy abroad
isoneofthepurposes ofthe
national training programme for
thedevelopment oftrade. See
A(k).
Assistance toapprove thequality and
diversification ofexport productsITC Assistance activities forthe
diversification ofexports,
particularly withregard tothe
products ofagro-industry and
leather, willbeorganized inthe
framework oftheregional and
interregional projects currently in
progress. Inaddition, seeB(g).
*Financing toberequested.WT/LDC/HL/12/Add.6
Page26
Technical assistance needs identified in
thequestionnaireOrganization Reply
Inreply toquestion B(v):
Technical assistance needs withrespect
tomarket access
Seminar onmarket access andother
problems, training incertain
instruments oftheWTO AgreementUNCTAD Thissubject willbeincluded inthe
national training programme and
willbeadditional todirect
technical assistance concerning
SGP, rules oforigin, etc.* See
A(k).
UNDP/
UNCTADUNDP intends toorganize
seminars atthesubregional levelto
make national officials more aware
ofthisaspect.
World Bank Theprivate sector support project
willinclude promotion
programmes.
WTO SeeA(k)andA(l).
Establishment ofanational
standardization andcertification systemITC SeeB(g).
World Bank Theprivate sector support project
willinclude support programmes
fortheadaptation ofthe
international standardization and
certification systems.
Establishment ofatrade information
centreITC SeeB(g).
UNCTAD Seereply toquestion B(q)onthe
Trade Point.
World Bank
(COMESA )Theregional/CODRA siteandthe
Internet networks mentioned above
could meetthese requests.
Training ofeconomic agents ITC/
UNCTADStrengthening ofinternational trade
training institutions isprovided for
intheframework oftheproject
mentioned under A(k).
World Bank Seminars supplied byIDA(?) inthe
context oftheprivate sector
support project.
*Financing toberequested.WT/LDC/HL/12/Add.6
Page27
Technical assistance needs identified in
thequestionnaireOrganization Reply
Establishment ofaTrade Point
*Financing toberequested.WT/LDC/HL/12/Add.6
Page28
Technical assistance needs identified in
thequestionnaireOrganization Reply
Inreply toquestion C(b):
Summary oftechnical assistance needs
inorder ofpriority
Inorder toformulate itstrade policy
mechanism, Madagascar would liketo
participate intheTPRM (ofWTO) and
would liketoreceive technical
assistance inthisarea. Todate, ithas
notbeenpossible tosubmit anytrade
policy project totheWTO Secretariat.UNCTAD Assistance willbesupplied asfar
asthepartofthereview relating to
theGovernment isconcerned.*
(MP1997)
UNDP/
UNCTADThrough theRAF/96/001
programme, UNDP willsupply
subregional support tohelp
countries intheirefforts to
formulate atrade policy.
World Bank/
WTO/ITCSeeA(k).
WTO WTO willhelpMadagascar to
prepare areview ofitstrade policy
within theframework oftheTrade
Policy Review Mechanism
(TPRM).
Establishment ofaspecialized training
centreTheagencies haveindicated their
desire tocooperate withthe
Government inidentifying specific
operational needs andestablishing
priorities.
Further consultations withthe
Government willbeneeded to
develop specific projects and
programmes andexplore ways and
means offinancing them.
UNCTAD/
ITCSeeA(k).
Improving thequality ofand
diversifying export productsITC SeeB(g)andB(q).
Establishment ofaTrade Point UNCTAD SeeB(g).
Establishment ofanadequate trade
information systemITC/
UNCTADSeeB(g).
World Bank SeeB(g).
WTO SeeB(g).
*Financing toberequested.WT/LDC/HL/12/Add.6
Page29
Technical assistance needs identified in
thequestionnaireOrganization Reply
Inreply toquestion C(d):
Technological capacity andhuman
resources tomake useofthenew
information/communication technology
tools
Madagascar hasthetechnological
capacity andthehuman resources to
make useofthetechnology tools, but
technical assistance inthisareastill
needs tobestrengthened.UNDP/ITC SeeB(g).
World Bank/
WTOSeeB(g).
WTO WTO willbeabletosupply a
computer andalaserprinter for
theGovernment 'sfocal point for
questions relating tothe
multilateral trade system. (1998)
WTO willalsobeabletoestablish
thenecessary connections ofthe
focal point withtheInternet andto
supply Madagascar with
CD-ROMs. Training intheuseof
thecomputer andelectronic
equipment provided willalsobe
ensured byWTO. (1998).
*Financing toberequested.