RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/G/113
5 March 2003
(03-1169)
Trade Policy Review Body Original:  French
TRADE POLICY REVIEW
BURUNDI
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 by the Government of Burundi 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 Burundi.Burundi WT/TPR/G/113
Page 3
CONTENTS
Page
I. GENERAL COMMENTS ON THE MAIN SOCIO-ECONOMIC INDICATORS 5II. OVERVIEW OF BURUNDI'S ECONOMY 5III. MAJOR REFORMS OF THE BUSINESS ENVIRONMENT 6
(1)
REFORM OF THE LEGAL AND INSTITUTIONAL FRAMEWORK OF TRADE POLICY 6
(2) E CONOMIC LIBERALIZATION PROCESS 6
(3) SECTORAL REFORMS 7
(i) Banking 7
(ii) Insurance 7
(iii) Foreign exchange policy 7
(iv) Tax and customs reform 8
(v) Agriculture 9
(vi) Mining and energy sector 9(vii) Telecommunications 9(viii) Transport 10
(ix) Postal sector 11
(x) Forestry and the environment 11
(xi) Tourism 11
IV. BURUNDI AND BILATERAL AND SUBREGIONAL TRADE AGREEMENTS 12V. BURUNDI AND THE WTO AGREEMENTS 12
(1) I
MPLEMENTATION OF THE DOHA AGREEMENT 13
(2) S ERVICES 13
(3) AGRICULTURE 13
(4) AGREEMENT ON SANITARY AND PHYTOSANITARY MEASURES 14
(5) SPECIAL AND DIFFERENTIAL TREATMENT 14
(6) INTELLECTUAL PROPERTY RIGHTS 14
(7) I NTEGRATED FRAMEWORK FOR TECHNICAL ASSISTANCE 15
VI. OUTLOOK AND ORIENTATION 15
ANNEX I STRUCTURE OF EXPORTS 16
ANNEX II EXPORTS BY DESTINATION 16ANNEX III IMPORTS BY ORIGIN 17ANNEX IV BALANCE-OF-PAYMENTS 17Burundi WT/TPR/G/113
Page 5
I. GENERAL COMMENTS ON THE MAIN SOCIO-ECONOMIC INDICATORS
1. The Government of Burundi has decided to submit its report on trade policy in order to
explain its aims and to foster intensive and frank discussions that will reassure all its partners.
2. The various reforms implemented since 1986 under the Structural Adjustment Programme
have yielded extremely encouraging results at the economic level.
3. In the socio-political sphere, since 1993 there has been a serious crisis that plunged the
country into a war that caused considerable human and material damage.
4. The signature of the Arusha Agreements in Au gust 2000 gave the people of Burundi renewed
hope of a return to peace and economic growth.
5. On the basis of the reforms already put into effect and its people's determination to restore
peace, Burundi should soon improve the competitiveness of its economy by developing key sectorsdeemed priorities, for example, food crops for food security, exports, services and industry.
6. The Republic of Burundi covers an area of around 27,834 km
2 and it has mineral deposits,
including nickel, vanadium, cassiterite, colombo-tantalite, gold, iron and nickel-type metals (copper,
cobalt), etc.  Burundi is in Central Africa and is land-locked, the neighbouring countries being
Rwanda to the north, the United Republic of Tanzania to the east and south and the DemocraticRepublic of the Congo to the west.
7. In 2000, the population was estimated at 6.8 million, with a population density of
247 inhabitants/km
2, and the annual rate of population growth is 2 per cent, with life expectancy at
birth of 40.6 years.
8. The major activity is food crops, which include livestock, fisheries and forestry. The
agricultural sector accounts for a large share of the GDP and employs 90 per cent of the labour force.
9. Burundi's economy is mainly based on the export of coffee and tea which, together, account
for almost 90 per cent of exports.
10. In the trade sector, Burundi's geostrategic position should make it a hub for the whole
subregion.
11. The national currency is the Burundi Franc.  The major objective of the Government's
monetary policy is to control broad monetary growth so as to combat inflation.
II. OVERVIEW OF BURUNDI'S ECONOMY
12. The downward trend in exports has continued because of the decrease in coffee prices on the
global market.  Imports are also decreasing due to the lack of foreign exchange caused by the crisis
that has prevailed since 1993.
13. Coffee is the most important export, followed by tea.
14. Burundi's major trade partners in order of importance are the European Union, Saudi Arabia,
Japan, China, India, Kenya and Zambia.
15. In the tourism sector, Burundi has several tourist sites.WT/TPR/G/113 Trade Policy Review
Page 6
16. It has two hotels of international standing in Bujumbura and several other hotels and
restaurants in the towns or countryside.  In some towns such as Gitega and Ngozi, hotels are being
developed and this is an encouraging sign.
17. The road network is well maintained and it is easy to move between the larger towns.
18. The fixed and mobile telephone system is well developed throughout Burundi, which
facilitates trade.
III. MAJOR REFORMS OF THE BUSINESS ENVIRONMENT
(1) REFORM OF THE LEGAL AND INSTITUT IONAL FRAMEWORK OF TRADE POLICY
19. In order to create an environment favourable to business and attract foreign direct investment,
the Government will continue to reform the legal and judicial system.
20. The business-related legal and judicial framework will be reformed and harmonized by
revising or adapting new texts on business law:  the Commercial Code, the Code of Obligations and
Contracts, the Arbitration Code, the Code of Civil, Commercial and Administrative Procedure, the
Investment Code, the General Tax Code, the Customs Code, etc.
21. All price controls have been abolished and the scope of competition extended.
22. The Ministry of Trade and Industry continues to ensure that there is fair and transparent
competition.
23. Efforts will continue to be made to restore the principal macroeconomic and financial
balances, maintain a sustainable rate of growth, control inflation, and mitigate the impact of poverty.
(2) ECONOMIC LIBERALIZATION PROCESS
24. In order to establish an effective and competitive market economy, the Government has taken
action to reform its trade policy, further liberalize economic activities, strengthen dialogue and
partnership with the private sector through joint management of the economy, and establish acompetitive environment in various sectors.  As part of the economic liberalization process, action has
been taken in the following areas:
- Elimination of non-tariff barriers, particularly the abolition of quantitative import
restrictions;
- liberalization of the general price regime, by establishing in particular:
• freedom to fix prices and trade margins according to market forces;
• prevention and monitoring of anti-competitive practices;
• application of measures to ensure fair trade transactions, particularly by
eliminating discriminatory sales, refu sal to sell, conditional sales and the
holding of stocks for speculative purposes;Burundi WT/TPR/G/113
Page 7
- revision of the tax and customs regimes in order to bring them into conformity with
the legislative programme of the Common Market for Eastern and Southern Africa
(COMESA);
- liberalization of the mining sector;
- liberalization of the coffee, tea, cotton sectors, etc;
- privatization of the management of the port and international airport in Bujumbura;- reduced State involvement in trade-related sectors of the economy.
25. All of these liberalization measures have led to sectoral reforms in the monetary, tax,
customs, foreign exchange, insurance, labou r, telecommunications, and transport sectors.
(3) 
SECTORAL REFORMS
(i) Banking
26. Action has been taken to stabilize and strengthen the banking sector.  For this purpose, the
State has already drawn up a programme to reduce its holding in the capital of banks and this has been
discussed and finalized by the State Enterprises Service, which is responsible for the follow-up.  In
addition, the requirements for the establishment and operation of banks have been liberalized.  A
regulatory framework that encourages security and professionalism in the area of microfinance is
being prepared.
(ii) Insurance
27. Pursuant to Decree Law No. 100/120 of 2 November 1982, the State abolished the monopoly
for all insurance transactions previously give n to the Burundi Insurance Company (SOCABU).
28. Burundi's insurance sector comprises seven insurance companies, two of a social character
and five other commercial companies.  The two social insurance companies are 100 per cent State-
owned and four of the five commercial insurance companies are wholly private.  The fifth is a semi-public company that is currently being privatized.  In 1995, Burundi acceded to the Multilateral
Investment Guarantee Agency (MIGA) and in 2000 to the African Trade Insurance Agency (ATIA),
which insure foreign direct investment and trade transactions respectively against political risks.
Burundi is also a member of the COMESA's PTA-Reinsurance Company (ZEP-RE).
29. A programme to reform the insurance sector is under way.  The 1997 legislation has been
updated and adopted by the National Assembly and the Senate.  An Insurance Regulation and Control
Agency will be set up during 2003.
(iii) Foreign exchange policy
30. Since the unification of the official exchange market in June 2000, the Bank of the Republic
of Burundi has allocated foreign exchange on an ad hoc basis through currency auctions.  Asresources available were not sufficient to meet demand, the Central Bank had to impose
administrative measures temporarily in order to attenuate the pressure on exchange rates.
31. On 2 January 2003, amended regulations for the currency auctions came into effect.WT/TPR/G/113 Trade Policy Review
Page 8
32. The aim of these amendments is to make the mechanism more flexible and the market more
competitive, the ultimate objective being to bring about convergence between the official and parallel
exchange rates.  The new regulations on currency auctions also set out the requirements for access to
foreign exchange bureaux.
(iv) Tax and customs reform
33. Regarding taxes , the Tax Department is designed to meet a number of needs:
- Broadening the tax base by trying to identify and register all taxpayers and thus tax
the population as a whole, not only in order to strengthen the economy but also for
reasons of fairness and social justice;
- the establishment of tax bureaux or authorized taxation centres, which act as an
intermediary between the taxpayer and the tax administration so that tax declarations
are not completed by the taxpayers themselves;
- the establishment of a code of tax procedure, a tax legislation service, taxation
principles and case-law, and the training of judges specializing in tax matters.
34. In 2003, several reforms  are planned both as regards structures and procedures.
35. As far as structures are concerned, the Tax Department in the Ministry of Finance, with the
support of the IMF consultant, has recently set up a Large Enterprises Division to collect the income
tax and other taxes payable by large enterprises.
36. The enterprises in question are those whose turnover exceeds FBu 100 million and enterprises
in certain sectors such as petroleum, coffee, etc.
37. As regards procedures, the measures planned include the imposition of VAT, the
establishment of a single tax number in order to control the tax base, taxation in areas not hitherto
taxed, immediate taxation of property capital gains, revision of some provisions of the tax law in
order to make them easier to understand, the preparation of a tax procedures guide, improved
procedures both as regards the tax base, control and payment, for example, by abolishing assessmentnotices ( avertissement extrait de rôle ) and replacing them by tax enforcement notices ( avis de mise en
recouvrement ). Measures for the payment of taxes will be introduced in order to diffuse the voluntary
payment procedure, simplify payment through banks, create a registration card, introduce desk
inspection, including formal inspection and inspection of documents before controlling the taxpayer,
computerizing procedures by choosing equipmen t and software and developing applications.
38. In the customs sector , the reforms being implemented are aimed at enhancing the efficiency
of the customs administration and increasing its productivity.  For this purpose, Burundi plans to
lower the rates of import duty to four rates (10, 12, 15 and 40), adopt the common tariff nomenclature
of the COMESA based on the 1996 HS version and generalized preferences for all products imported
from COMESA member countries (reduction of 80 per cent and 100 per cent respectively for the2003 and 2004 financial years).  Other measures will also be taken, among the most important of
which are the elimination of the 100 per cent customs tariff on luxury products and its replacement by
more modest rates and the capping of import duties at 40 per cent, limiting the average time taken for
customs procedures (from entry to issue of the authorization to remove the goods) to 48 hours,
upgrading from version 2.7 of the ASYCUDA to ASYCUDA++, and revision of the customs tariffBurundi WT/TPR/G/113
Page 9
taking into account developments in negotiations on the common external tariff within the COMESA
free-trade zone.
(v) Agriculture
39. Burundi's economy is highly dependent on agriculture which, alone, is the major source of
income for 90 per cent of the population.  It provides 95 per cent of food and over 90 per cent of
foreign exchange earnings.  Consequently, the agricultural sector has always been and remains theguarantee of food security, the backbone of the economy and the catalyst for growth in other sectors
in Burundi. The agricultural sector is composed of three subsectors: food crops, livestock, and agro-
industry.
40. In its efforts to boost the economy, the Government's major objective is to enhance the
productivity and profitability of the agricultural sector so as to move from subsistence agriculture tomarket-oriented agriculture.
41. With a view to increasing the production of food crops and ensuring food security for all,
Burundi will rely on the development of agricultural  research, training, increased use of agricultural
inputs, promoting the processing and conservation of agricultural products.
42. Measures to develop the livestock subsector include the replacement of livestock and the
initiation of a programme to integrate stock breeding and forestry into agriculture, while at the same
time boosting fishing and aquaculture.
43. In order to reduce rural poverty, it is essential to undertake properly prepared activities to give
renewed impetus to the production support structures, assist those working in the agricultural sector to
obtain financing, notably by means of rational policies on access to credit, and to promote and
diversify cash crops (traditional and non-traditional exportable crops, wheat, maize, sunflower, etc.).
(vi) Mining and energy
44. This sector is vital to Burundi's economy.  Government investment programmes have always
given priority to the energy subsector for the build ing of hydroelectric power stations, with adequate
supplies of water, and for electrification by installing power lines.
45. With regard to mining and quarrying, geological and mining surveys are carried out by the
specialized services of the Directorate General of Geology and Mining.
46. In order to promote commercial activities in the water and energy subsectors, under Law
No. 1/014 of 11 August 2000, the Government took impor tant measures to liberalize the public supply
of drinking water and electricity by involving the private sector in the management and financing of
some of Regideso's activities.
47. To make the sector more attractive, the Government is considering important reforms such as
revising the Mining and Petroleum Code, and drafting a policy to involve grassroots communities and
the private sector in the marketing, installation and maintenance of equipment.
(vii) Telecommunications
48. In view of the importance of this sector, the Government is fully committed to using new
information and communications technologies in general and introducing the Internet in order toWT/TPR/G/113 Trade Policy Review
Page 10
enhance the information capacity of commercial and financial structures both in the national and
international context.
49. The increase in the number of cybercafés and the remarkable rise in the number of mobile
telephone subscribers are a reflection of the growing dynamism of this sector.
50. The aim of the telecommunications reforms under consideration is to support new
information and communications technologies so as to give social, economic and administrativesectors an indispensable tool for economic and social development.
51. In the telecommunications sector, an in dependent regulatory authority, the
Telecommunications Regulation and Control Agency (ARCT) has been established for the purpose of
granting licences.  The ARCT conducts a technical and financial analysis of the applications made by
economic operators wishing to engage in activities in this sector and recommends to the Government
that an operator that meets the required criteria be given a licence.
(viii) Transport
52. In order to foster the development of a service of quality, international goods transport is
carried out by both domestic and foreign private operators.
53. The passenger transport subsector is operated by private entities and the Public Transport
Board (OTRACO) so as to ensure better dispersion  of transport services around the country to meet
the needs of the economy.  OTRACO regulates urban fares.
54. Transport services were liberalized in 1989 as part of the Structural Adjustment Programme
(SAP).  Domestic goods transport is operated solely by private entities and has been fully liberalized.
55. On the lakes, goods are transported on Lake Tanganyika from the lakeside ports, namely,
Kigoma in the United Republic of Tanzania, Mpulungu in Zambia, Kalemia in the Democratic
Republic of the Congo.  The vessels are wholly owned by private entities which, grouped together inan association, fix the rates for transport.  In order to facilitate transport on Lake Tanganyika, assist
the building of new vessels and repairs in dry docks, a project to build a shipyard has been adopted
under the New Partnership for African Development (NEPAD).
56. With regard to the airports subsector, air transport is the safest and most rapid way of opening
up Burundi.  Perishable goods can only be exported and imported by air.  The Government isconsidering the installation of an adequate infrastructure for the conservation and transport of
perishable goods.  The national airline "Air Burundi" is at present identifying the foreign airlines with
which it intends to enter into strategic alliances in order to resolve the problems of transporting
imports and exports.
57. As far as rail transport is concerned, a study is under way for the building of a Great Lakes
railway to link Southern and Eastern Africa.  This project is part of the regional integration framework
under the COMESA.
58. Likewise, the Subregional Development Centre for East Africa, based in Kigali, is holding
consultations on the establishment of a master plan for transport.  This plan gives priority to
maintaining the transport infrastructure (roads, railways) and the rapid transport of goods along
various corridors (northern, central and southern).Burundi WT/TPR/G/113
Page 11
59. Subregional transport organizations such as the coordinating authority for transit traffic
through the northern corridor, hold regular meetings w ith a view to the definitive elimination of tariff
and non-tariff barriers so as to facilitate the rapid circulation of goods.
(ix) Postal sector
60. The Ministry of Transport, Post and Telecommunications is drafting a policy to rehabilitate
the postal sector for consideration by the Council of Ministers in February 2003 before beingimplemented.
61. Post offices in Bujumbura will be computerized at the beginning of 2003.
62. The National Postal Authority (RNP) will become a Board in order to improve its
management and serve clients better.
(x) Forestry and the environment
63. Integrating issues relating to national resource management and the conservation of
ecological balances into development is a new and essential dimension of any action to be undertaken.
64. In developing countries, warnings have already been given regarding soil degradation, water
pollution, deforestation, the deterioration of ecosystems and the population's living standards.
65. In Burundi, government authorities have only very recently recognized the need to integrate
the "environmental" dimension in planning and development schemes.
66. The creation of the Ministry of Land Use Planning, Environment and Tourism in
October 1998 was the practical expression of this political determination to institutionalize the
rational management of natural resources and the environment.
67. The bases of an environmental policy must be perceived in terms of preserving production
potential and maintaining the environmental balance.  The major objective of this policy is to ensure
the sustainability of production potential and the ecosystem.
68. The agricultural sector is the driving force of the economy and the basis for Burundi's
development.  It employs over 90 per cent of the labour force and accounts for over 90 per cent of
export earnings.
69. It is nevertheless affected by the continuous downward trend in productivity, caused by
erosion and overexploitation of land  inter alia .
70. Proper management of natural resources and the environment through joint coordinated action
by all development actors would allow the ecological balance to be restored and preserved and ensure
rational use of land, water, forests and air.
(xi) Tourism
(a) Hotels
71. Before it reduced its holding in favour of private initiatives (1986), the State had participated
in the capital formation for three international- standard hotels, including the Société Hôtelière
Nouvelle (SHNB/NOVOTEL), managed by the AC COR group since 1984.  All three hotels areWT/TPR/G/113 Trade Policy Review
Page 12
currently being privatized.  In Bujumbura, hotels have a capacity of one thousand and sixty-seven
(1,067) beds.
72. There is a hotel capacity of at least twenty (20) beds in each province in Burundi.
(b) Leisure and sports facilities
73. There are many more recreational facilities than museums or cinemas.  There are facilities for
golf, tennis and horse riding.  Leisure activities are in the form of dance halls or nightclubs.  There areoccasional musical events in a number of places, particularly Bujumbura.
74. A casino has recently been established in Burundi and is becoming increasingly popular.
(c) Tourism services
75. Tourism services are provided by local travel agencies, whose number has increased
considerably over the past five years.  Burundi has several tourism sites, the most important of whichare the beaches on Lake Tanganyika, thermal springs at Akarava, the bird lakes, Ruvubu Park, the
Royal Palace in Gitega, the Nyakazu rifts, Karera waterfalls, Rusizi Park, etc.
(d) Government action to promote tourism
76. Burundi considers tourism enterprises to be priorities.  It fosters their development through
action to promote and encourage private initiatives.  Such enterprises are granted special facilities toallow them to inform foreign tour operators of Burundi's tourism potential.
77. Regulations on hotels are currently being drafted in order to promote and upgrade the sector.
IV. BURUNDI AND BILATERAL AND SUBREGIONAL TRADE AGREEMENTS
78. Burundi has signed many trade, economic and technical cooperation agreements with various
partners in Africa, Europe, Asia, and North America.
79. The structure and content of these agreements highlight the common political will to promote
trade.  They provide for the establishment of a preferential customs regime based on a list of productsand rules of origin.  Under these agreements, a number of measures to encourage the establishment of
semi-public companies have been adopted.
80. The provisions in these agreements take into account and are always in accordance with the
WTO rules, including the most-favoured-nation clause (MFN) and national treatment.
81. In addition to bilateral cooperation to promote investment and trade, Burundi is a member of
subregional organizations such as the COMESA, the Economic Community of the Great Lakes
Countries, the Kagera Basin Organization, and the Economic Community of Central African States.
The promotion and development of trade are among the objectives of this bilateral cooperation.
V. BURUNDI AND THE WTO AGREEMENTS
82. Burundi attaches great importance to the objectives of the Doha Development Agenda, whose
aim is to remedy the imbalance in the multilateral trading system and allow developing countries to
receive their fair share of the positive effects of globalization.Burundi WT/TPR/G/113
Page 13
83. In this framework, Burundi's major concerns relate principally to issues such as the
implementation of the Doha Agreement, services, agriculture, TRIPS, special and differential
treatment, and technical assistance.
(1) IMPLEMENTATION OF THE DOHA AGREEMENT
84. Implementing this Agreement is a major concern for all developing countries but particularly
for the least developed.  Burundi is facing problems in implementing the WTO Agreements.  Theinadequacy of its human, technical and institutional resources naturally affects observance of the
commitments undertaken and Burundi's participation in the current negotiations.
(2) S
ERVICES
85. Burundi deems the services sector to be a priority and has liberalized trade in services.  The
positive effects have had a marked impact on the domestic economy.  The share of the services sectorin GDP formation has increased to the detriment of the primary sector.  In 2001, the sector grew at a
rate of 4.1 per cent for tradeable services (trans port, post and telecommunications, trade and other
private services) and non-tradeable services.
(3) 
AGRICULTURE
86. The Agreement on Agriculture has three components:
- Domestic support,
- market access,- export competition.
87. Domestic support is contested by those in favour of the free reign of the law of supply and
demand.  Developed countries continue to subsidize their agriculture to the detriment of developing
countries, where the majority of support measures have been dismantled under Structural Adjustment
Programmes.
88. For Burundi's agricultural products, access to the markets of developed countries is an
essential criterion for the restoration of certain macroeconomic balances.  The many constraintsimposed on entry into the markets of developed countries such as tariff peaks, tariff escalation (where
tariffs increase according to the level of processing ), as well as increasingly stringent technical and
phytosanitary standards (maximum level of pestic ide residues) constitute an obstacle to the
development of exports by LDCs.
89. The Cotonou Agreements will lead to the dismantling of preferences and the establishment of
regional economic partnership agreements by 2008.  These will replace the Lomé Agreements, which
guaranteed preferential access to products from countries in Africa, the Caribbean and the Pacific
(ACP).  The immediate effect has been the erosion of preferential margins due to the increased
competition faced by all agricultural exports.
90. Agricultural policy therefore needs to be reviewed so as to improve the competitiveness of
exportable agricultural products.  This policy should be supported by appropriate technical assistance.
91. Burundi does not subsidize its agricultural exports, whereas developed countries grant
subsidies in support of their agriculture and to guarantee competitiveness on foreign markets.  TheWT/TPR/G/113 Trade Policy Review
Page 14
result is to remove developing countries' products from the markets of developing countries and
discourage production.  In the long term, this is a real threat to those weak economies that are mainly
based on agriculture.
92. Burundi hopes that the agricultural sector will receive special attention because of its
importance.  It is a prerequisite for developing Burundi by disposing of surpluses, ensuring food
security and thus preventing the mass exodus of the rural population, which would remain totallywithout resources.
(4) 
AGREEMENT ON SANITARY AND PHYTOSANITARY MEASURES
93. Some developed countries continue to apply sanitary and phytosanitary measures for
restrictive purposes.  Burundi, as an LDC, nevertheless benefits from an exemption.
94. There is still a problem of access to foreign markets for Burundi's products because of the
inadequacy of the domestic production structures and the stringency of the sanitary and phytosanitary
measures and quality standards imposed by some trading partners.
95. In order to overcome these disguised trade barriers, the Government of Burundi would like to
receive technical assistance in order to improve the quality of its industrial products, traditional and
non-traditional agricultural exports, livestock products,  fisheries products, and handicrafts, in order to
take full advantage of the liberalization of trade.
(5) SPECIAL AND DIFFERENTIAL TREATMENT
96. Special and differential treatment is a fundamental principle enshrined in the WTO
Agreements.  It is also an appropriate tool that allows the disparities in the economies of the various
Member States to be overcome.
97. As the provisions are not yet applied, Burundi, like other countries, supports the development
of a binding framework agreement that encompasses horizontal and sectoral issues and criteria fortechnical assistance.
(6) 
INTELLECTUAL PROPERTY RIGHTS
98. The principle underlying the TRIPS Agreement is to integrate intellectual property – which is
the subject of special national or international provisions – into the framework of global trade
regulations.  It contains minimum rules on intellectual property which all WTO Members mustundertake to observe.
99. Like the other least-developed countries, Burundi was given a transitional period of ten years
in which to apply the Agreement.  It is planned that it should enter into force on 1 January 2006.  This
transitional period was granted in order to allow LDCs to take the necessary steps and bring their laws
and regulations into line with the TRIPS Agreement.
100. As part of the preparations for the implementation of the TRIPS Agreement, two laws are
currently being revised, namely, the national legislation on industrial property and the copyright law.
The draft industrial property law has been sent to the WIPO (Geneva) for finalization.  The two draft
laws being finalized will be submitted to the Council of Ministers for approval during the first half of
2003.  Consideration is also being given to the pos sibility of acceding to the Patent Cooperation
Treaty and the Madrid Agreement Concerning the international Registration of Marks;  and joining
one of the African regional intellectual property organizations (OAPI or ARIPO).  It has also beenBurundi WT/TPR/G/113
Page 15
decided to accede to the Berne Convention and to set up a national copyright bureau.  Nevertheless, in
view of Burundi's needs and constraints (war, economic, financial and administrative constraints), the
Government will request the TRIPS Council to agree to defer the date of implementation of the
Agreement.
101. During the intervening period, joint technical and financial assistance from the WTO and
WIPO will be needed to allow Burundi set up to establish a more solid and viable technological basis.
(7) INTEGRATED FRAMEWORK FOR TECHNICAL ASSISTANCE
102. Burundi was selected as part of the second group of LDCs recommended for the pilot
programme under the Integrated Framework for Technical Assistance.  The process was initiated in
January 2001 when Burundi was included in the list of the second group of pilot countries.  Some of
the studies identified as priorities have been conducted and their results widely disseminated.
103. As part of the pilot phase and under the supervision of the World Bank, a diagnostic study on
competitiveness and trade integration will be undertaken in order to obtain more detailed information
on the possibilities for developing exports and other potential sources of growth.  The study will take
into account all the studies already undertaken.  A strategy document on the development of trade and
the private sector will then be drawn up to serve as a basis for all the programmes on integrating tradeinto development.
104. On the basis of the results of the study, the Go vernment will draw up a plan of action whose
priority measures will be integrated into the Poverty Reduction Strategy Paper.  These results should
lead to practical action, which is eagerly awaited by the private sector in order to boost the economy.
VI. OUTLOOK AND ORIENTATION
105. Burundi intends to pursue structural reform w ith a view to long-term growth of the economy.
The action to be undertaken relates primarily to the following:
- Containing the inflation rate;
- gradually bringing the budget deficit down to 1 per cent of GDP;
- increasing foreign exchange reserves to a level corresponding to at least three months
of imports of goods and services.
106. In order to boost confidence in the private sector, the Government will revise the Commercial
Code, the tax legislation, the Investment Code and the general requirements applicable to government
procurement.  The reform should allow the quality–price ratio in public spending to be improved,
shorten the time taken to examine projects, and ensure that they are better monitored.
107. As far as public finance is concerned, the Government will continue to apply a stringent and
transparent financial policy, in parallel with a dynamic policy to reduce debt and a controlledmonetary policy.  This should lead to the following:
- The accumulation of public savings so as to ensure Burundi's financial viability;WT/TPR/G/113 Trade Policy Review
Page 16
- the application of a monetary policy that aims to control inflation and strengthen
foreign exchange reserves;
- monitoring of the monetary supply, which should increase at a rate similar to that of
the GDP.Burundi WT/TPR/G/113
Page 17
ANNEX I
STRUCTURE OF EXPORTS
1997 1998 1999 2000 2001
QVQVQVQVQV
Primary products 38,781 30,590.2 28,689 28,233.3 30,789 30,374.6 32,084 33,655.0 28,495 28,717.0
Coffee, not roasted 31,870 26,981.7 22,303 22,857.9 23,685 23,643.2 24,719 24,419.9 18,663 16,326.3
Raw hides and skins 179 44.8 132 32.1 313 76.8 483 88.8 479 47.4
Tea 6,330 3,176.3 5,785 4,912.0 6,396 6,133.1 6,474 8,694.6 8,454 8,760.4
Live animals … 1.6 1 0.4 … 6.1 … 2.0 … 5.8
Live fish … 61.0 44 84.2 4 85.9 … 85.6 … 120.6
Live plants 43 9.9 41 6.9 47 16.4 16 22.2 68 144.3
R i c e 1 0 1 . 2--------
Cinchona bark 51 21.6 100 38.3 50 26.0 70 82.3 137 58.5
Leaf tobacco - - 119 54.0 - - - - 409 203.1
Products used in animal
feed-- 8 0 . 4------
Other 298 292.1 156 247.1 294 387.1 322 259.6 285 3,050.6
Manufactures 836 177.0 1,946 401.5 1,895 596.2 5,497 1,568.0 9,194 3,261.1
Fibro-cement sheets and
articles16 3.5 140 36.0 41 17.4 112 52.3 69 31.7
Soft drinks and aerated
waters3 0 . 5 2 0 . 5------
Bottles of dark-coloured
glass1 0 8 2 1 . 0------ … 0 . 4
Beer 53 11.5 552 77.6 18 5.7 4 2.0 5,555 114.7
Cigarettes - - - 1.3 11 36.6 14 51.9 117 443.8
A r t i c l e s  o f  b a s e  m e t a l -------- … 1 3 . 8
Woven fabrics of cotton 11 37.5 - - 2 7.1 4 21.3 - -
Granulated sugar 300 65.0 932 249.0 1,675 441.2 5,213 1,419.7 2,910 949.1
Household soaps 15 4.5 - - - - 139 2.1 … 0.4
Other 330 33.5 320 37.1 148 88.2 11 18.7 543 1,821.9
Total 39,617 30,767.2 30,635 28,634.8 32,684 30,970.8 37,581 35,223.0 37,689 31,978.1
Note: Q: Quantity in tonnes (net weight).
V: Value in millions of Burundi francs.
Source: Annual Report of the Bank of the Republic of Burundi, 2001.
ANNEX II
EXPORTS BY DESTINATION
1997 1998 1999 2000 2001
QVQVQVQVQV
Europe 30,244 24,084.2 16,077 17,059.4 26,453 25,303.6 28,097 28,804.0 25,937 26,353.4
Asia 1,053 388.9 118 103.2 112 147.0 137 163.7 161 54.2
Africa 2,427 822.8 2,250 868.3 1,935 652.9 8,536 5,979.2 11,002 4,961.0
America 351 288.4 392 526.9 1,314 1,140.0 234 249.4 - 30.8
O c e a n i a ----------
Other 5,542 5,182.9 11,798 10,077.0 2,870 3,727.3 577 26.7 589 578.7
Total 39,617 30,767.2 30,635 28,634.8 32,684 30,970.8 37,581 35,223.0 37,689 31,978.1
Note: Q: Quantity in tonnes (net weight).
V: Value in millions of Burundi francs.
Source: Annual Report of the Bank of the Republic of Burundi, 2001.WT/TPR/G/113 Trade Policy Review
Page 18
ANNEX III
IMPORTS BY ORIGIN
1997 1998 1999 2000 2001
QVQVQVQVQV
Europe
Asia
AfricaAmerica
Oceania
Other23,040
31,994
51,658
820
13
220,867.6
11,867.6
9,566.6
918.6
28.4
0.531,967
57,241
82,549
1,755
120
57232,448.2
19,817.1
16,417.2
1,387.9
160.1
44.119,960
56,898
83,736
1,183
165
33625,373.9
19,585.1
17,982.3
1,685.7
103.8
1,576.525,636
52,303
102,631
1,913
20
5,06641,049.9
32,399.4
27,506.5
3,967.8
75.4
1,060.328,246
51,075
92,156
4,000
321
1,32843,809.9
38,293.1
27,801.0
4,257.1
141.6
951.6
Total 107,527 43,249.3 174,204 70,274.6 162,278 66,307.3 187,569 106,059.3 177,126 115,254.3
Note: Q: Quantity in tonnes (net weight).
V: Value in millions of Burundi francs.
Source: Annual Report of the Bank of the Republic of Burundi, 2001.
ANNEX IV
BALANCE-OF-PAYMENTS
(in Millions of Burundi Francs)
1996 1997 1998 1999 2000(p)
Trade balance -18,044.0 -3,029.0 -26,621.2 -23,846.3 -42,380.0
  Exports 12,235.0 30,821.0 28,670.8 30,986.5 35,350.9
  Imports -30,279.0 -33,850.0 -55,292.0 -54,832.8 -77,730.9
Services -12,344.0 -17,100.0 -22,252.1 -19,691.8 -35,157.9
 Non-factor services -8,121.0 -12,684.0 -18,553.6 -14,377.1 -26,460.2
 Factor services -4,223.0 -4,416.0 -3,698.5 -5,314.7 -8,697.7
Private transfers 3,405.0 2,022.0 2,721.5 3,102.4 3,344.7
Current account balance (excluding official transfers) -26,983.0 -18,107.0 -46,151.8 -40,435.7 -74,193.2
Official transfers 15,080.0 17,951.0 22,331.7 25,677.8 39,433.5
Current account balance (including official transfers) -11,903.0 -156.0 -23,820.1 -14,757.9 -34,759.7
Capital account balance -7,028.7 3,578.6 10,917.4 8,205.6 28,755.2
  Direct investment - - - -322.7 8,419.8
  Medium- and long-term capital 2,224.0 -2,811.0 6,831.4 98.6 23,210.9
     Drawings 13,981.0 9,169.0 16,393.6 13,285.2 49,045.7
     Amortization -11,757.0 -11,980.0 -9,562.2 -13,186.6 -25,834.8
 Other capital and errors and omissions -9,252.7 6,389.6 4,086.0 8,429.7 -2,875.5
Overall balance -18,931.7 3,422.6 -12,902.7 -6,552.3 -6,004.5
Financing 18,931.7 -3,422.6 12,902.7 6,552.3 6,004.5
  Change in net foreign assets 14,336.0 -3,917.0 10,999.2 2,634.4 -942.2
  Total change in net foreign assets (1) 11,836.0 -2,079.0 11,661.2 2,625.3 -1,090.0
     Valuation adjustments 2,500.0 -1,838.0 -662.0 9.1 147.8
 Change in arrears 4,595.7 494.4 1,903.5 3,917.9 6,946.7
Source: Annual Report of the Bank of the Republic of Burundi, 2001.
__________