Mauritania WT/TPR/S/103
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II. TRADE AND INVESTMENT REGIMES
(1) GENERAL INSTITUTIONAL AND LEGAL FRAMEWORK
(i) Overview
1. Mauritania, formerly part of French West Africa ( Afrique Occidentale Française  – AOF),
achieved full independence on 28 November 1960.  Its first Constitution, adopted on 20 May 1961,
instituted a presidential regime with a separation of powers very similar to that enshrined in the
French Constitution of 1958.   The constitutional fr amework changed in 1965, in particular with the
institutionalization of single-party rule.   The current Constitution, adopted on 20 July 1991, embodies
the fundamental principles of the Republic, such as the separation of powers and the recognition ofindividual and collective freedoms.
1  Today, the country's political system consists of an Executive
power, vested in the President of the Republic and a Government appointed by him, a Legislative
power, exercised by the Parliament, which is compos ed of two chambers (the National Assembly and
the Senate), a Judicial power, and advisory institut ions such as the Higher Islamic Council and the
Economic and Social Council.  A major change was introduced by the 1991 Constitution in the form
of multiparty rule.2  The first multiparty elections took place in 1992.
2. Mauritania's legal system, based on the 1991 Constitution, is strongly influenced by the
Sharia  (Islamic law).
(ii) The Executive
3. The Mauritanian Constitution establishes the primacy of the Executive.  Executive power is
shared by the Government and the President of the Republic, who has supreme authority and is
elected by universal suffrage for a term of office of six years, which may be renewed indefinitely.The President, who must be a Muslim, is the Head of State and is responsible for seeing that the
Constitution is observed.  He determines and conducts Mauritania's foreign policy, as well as defence
and security policy.  The President appoints the Prime Minister and government ministers and has
authority to dissolve the National Assembly, promulgate laws, sign and ratify treaties and call
referendums on any matter of national importance.  He holds statutory power and may delegate it inwhole or in part to the Prime Minister.  The Prime Minister defines government policy but remains
under the authority of the Head of State.
3
(iii) The Legislature
4. Legislative power is exercised by a bicameral Parliament consisting of a lower chamber (the
National Assembly, 79 seats) and an upper chamber (the Senate, 56 seats).  Deputies are elected bydirect suffrage and senators by indirect suffrage for five- and six-year terms, respectively.  The
senators represent Mauritanian territorial districts and Mauritanian citizens residing abroad. One third
of the Senators are renewed every two years.  Sessions of the National Assembly and the Senate are
public, and the minutes of the meetings are published in the Journal Officiel (Official Journal).
                                                     
1 Démocratie et institutions constitutionnelles en Mauritanie [online].  Available at:
http://www.mauritania.mr/ami/dossiersFr8.htm [27 August 2001].  French only.
2 Mauritania had already experienced multiparty democr acy under French rule and in the early years of
independence.  In 1964, however, all existing parties were consolidated into a single party, the Parti du peuple
mauritanien .  Today, religious parties are prohibited, although the law requires all political groups to respect
Islam.
3 Centre d'étude d'Afrique noire  [online].  Available at: http://www.cean.u-bordeaux.fr/etat/_anglais/
institutionnel/mauritania.html.WT/TPR/S/103 Trade Policy Review
Page 14
5. The Constitution lays down the terms of the Government's accountability to the National
Assembly.  The Government and the members of Parl iament are responsible for proposing legislation.
The deputies and senators have the right to amend texts tabled by the Government or by members of
Parliament.
6. Laws and programmes determine the objectives of the State's economic and social action.
With the agreement of the President of the Republic, in order to implement its programme, theGovernment may request authorization from Parliament to order measures that should normally be in
the form of laws, but they may only remain in effect for a limited period of time.  Such measures enter
into effect as of their publication, but become void if the draft law on their ratification is not tabled in
Parliament before the date set by the enabling law.  Once the time-limit has expired, orders may only
be modified by law in regard to matters within th e legislative domain.  Matters other than those within
the domain of the law come under the regulatory power of the President of the Republic.
4  Legislative
texts may be modified by decree where the Constitutional Council deems them to be of a regulatory
nature.
7. Draft laws are debated in the Council of Ministers and put before one of the two chambers by
the Government.  They are discussed in the first chamber to which they are referred.  At the request ofthe Government or the relevant chamber, draft laws and bills are sent for review to committees
specially set up for the purpose.
8. Any draft law or bill is examined in turn by  the two chambers with a view to adopting an
identical text.  In the event of disagreement and where the Government has declared an emergency,
after one reading in each of the two chambers, the draft may be submitted to a joint committee
responsible for proposing a text for the provisions still under discussion.  This text may be submitted
in the same manner to the two chambers for adoption.  In this case, no further amendments areaccepted.  If the joint committee is unable to propose a common text or if this text is not adopted by
both chambers, after a further reading by the two chambers, the Government may request the National
Assembly to rule conclusively.
9. Draft finance laws, which determine the State's revenue and expenditure, are first submitted to
the National Assembly.  The Parliament, assisted by the Court of Audit, votes on draft finance lawsand controls the administration of the State budget and supplementary budgets.
10. The President of the Republic promulgates laws within a period of eight days at the earliest
and thirty days at the latest following their transmission to him by Parliament.
During this period, the President may send back a draft law or bill for a second reading.  If the
majority of the members of the National Assembly is in favour of adopting the draft law or bill it ispromulgated and published within the scheduled time-frame.
                                                     
4 The following areas, inter alia , are within the domain of the law:  customs regulation, issue of money,
regulation of banks, credit, and insurance;  regulation of property, real rights, and civil and commercial
obligations;  general regulation of water, mines, and hydrocarbons, fisheries and the merchant marine, fauna,
flora, and the environment;  general regulations concerning workers' rights, the right to work, and socialsecurity;  the free administration of local districts, their jurisdiction, and their resources;  the tax base, the taxrate and the modes of collecting taxes of all kinds;  the creation of categories of State Institutions;nationalization of enterprises, and transfers of property from the State to the private sector.Mauritania WT/TPR/S/103
Page 15
11. The Senate authorizes the ratification of major international agreements or treaties.  By virtue
of its powers, it approves the Government's economic and social development plan.5
12. The Parliament may bring a motion of censure or lack of confidence in order to compel the
Government to resign.6
(iv) The Judiciary
13. The Constitution guarantees the independence of the Judiciary from the Executive and
Legislative branches.  In Mauritania, judges are subject only to the  law (Article 90).
The Constitution designates the President of th e Republic, assisted by the High Council of the
Judiciary, over which he presides, as the guarantor of the independence of the Judiciary (Article 89).Judges are appointed by majority vote in the High Council.
14. Mauritania has a two-tiered judicial hierarchy, comprising the courts of first instance (i.e. the
civil, commercial, administrative, penal and juvenile courts) and the courts of appeal.  The
Constitutional Council is separate from the ordinary courts.
15. The Supreme Court is the highest judicial authority in Mauritania.  It consists of four
chambers with special jurisdiction in respect of ad ministrative, civil and commercial, social (including
personnel), and criminal matters.  In the administrative sphere, it hears cases relating to legislationapplicable to the administration, government officials and the public domain, and in the judicial
sphere it hears appeals against decisions handed down by the lower courts in a variety of fields.
16. Civil and commercial matters lie within the jurisdiction of the mouqatâa (departmental)
courts and the civil and commercial chambers of the wilaya (regional) courts.
7  Under the Code of
Civil Procedure, the departmental courts are compet ent, in the first and final instance, to hear all
proceedings the value of which can be assessed in monetary terms but does not exceed capital
amounting to UM 300,000.  The regional courts have jurisdiction in cases involving values in excess
of that amount.  Appeals are lodged before a court of appeal.
17. The Mauritanian judicial system has often been the subject of criticism for reasons such as the
following:  bringing action before the courts is a difficult and fairly unreliable process owing to the
shortage of material, institutional and human resources;  judges' qualifications vary depending on their
training in Muslim law, modern law or business law;  procedures are slow, and rulings and orders are
often difficult or even impossible to enforce.  In order to remedy these problems, a process of judicial
and legal reform was included in the private sector capacity-building project (PRCSP).  As a result of
this reform, launched in 1994, the legal and judicial basis for the processing of cases has beenimproved and strengthened, by revising and deve loping the regulatory framework, reviewing the
organization of the Judiciary, and providing training for judges and court officers.
8
                                                     
5 Démocratie et institutions constitutionnelles en Mauritanie [online].  Available at:
http://www.mauritania.mr/ami/dossiersFr8.htm [27 August 2001].  French only.
6 Démocratie et institutions constitutionnelles en Mauritanie [online].  Available at:
http://www.mauritania.mr/ami/dossiersFr8.htm [27 August 2001].  French only.
7 Mauritania is divided into 13 wilayas  or regions.
8 Among the instruments adopted are the Commercial Code and its implementing texts, the Arbitration
Code, the Code of Obligations and Contracts, the texts regulating the organization of the Judiciary and thoserelating to court officers.WT/TPR/S/103 Trade Policy Review
Page 16
(v) Advisory organs9
18. Besides the three traditional powers (Legislative, Executive and Judiciary), and with a view to
strengthening the rule of law, the system of democratic institutions in Mauritania has been reinforced
by the establishment of the following organs:
- The Constitutional Council rules on the constitutionality of laws and oversees the
regularity of elections.  The Council has six members, two of whom are appointed forthree years, two for six years and two for nine  years.  Three of its members, including
the President of the Council, are appointed by the President of the Republic, two are
appointed by the President of the National Assembly, and one is appointed by the
President of the Senate.  They may not belong to any government body or political
party.  The decisions of the Constitutional Council are not subject to appeal.
10
- The High Court of Justice is composed of members elected in equal numbers by the
National Assembly and the Senate from among their members after each
parliamentary election.  It has jurisdiction to try cases of aggravated high treason by
the President of the Republic, the Prime Minister or members of the Government.
- The Court of Audit is the supreme institu tion for the audit of public finances.  Its
regular and systematic verification, information and advisory activities help to
safeguard the State's finances, improve management methods and techniques, and
streamline administrative procedures.  The Court of Audit is composed of the
President of the Court, the presidents of the chambers, the presidents of the sections,
advisers and auditors.
- At the request of the President of the Republic, the Economic and Social Council
gives its views on draft laws, orders and decrees of an economic and social nature andon bills of the same kind submitted to it.  It may also be consulted by the President of
the Republic on any economic or social matter of concern to the State.  The
Economic and Social Council may designate one of its members to inform Parliament
of the Council's recommendations on the draft laws or bills submitted to it.  The
composition of the Economic and Social Council and the rules governing itsfunctioning are determined by an organic law.
- The Ombudsman of the Republic is an "independent authority" appointed for an
indefinite term of office.  He receives complaints from citizens relating to unsettled
disputes in their relations with State administrations, territorial public authorities,
public institutions and all other public service bodies.  He advises the President of theRepublic on disputes between citizens and the administration.  He may also
contribute to improving the functioning of those administrative bodies whose
unsatisfactory operation he has found to be prejudicial to citizens.
19. There is no independent official government body in charge of examining economic or trade
policies or evaluating their impact on the Mauritanian economy.
                                                     
9 Document CERD/330/Add.1 [online]. Available at:  http://www.unhchr.ch/tbs/doc.nsf.
10 Centre d'étude d'Afrique noire  [online].  Available at: http://www.cean.u-
bordeaux.fr/etat/_anglais/institutionnel/mauritania.html.Mauritania WT/TPR/S/103
Page 17
(vi) Trade policy formulation and implementation
20. Most trade policy legislation is introduced by law, by government decree or by order of the
Minister concerned.11  Laws take precedence over other legal instruments, successively followed by
decrees, orders and circulars.  All laws and regulations are published in the Official Journal .
21. Under Article 78 of the Constitution, trade treaties and treaties or agreements concerning
international organizations (including the Agreement establishing the WTO), treaties or agreements
involving State finances, and treaties modifying provisions of a legislative nature require ratification
through a law and take effect only once they have been thus ratified or approved.  The Agreement
establishing the WTO was approved and ratified by Law No. 075/95 of 13 January 1995.
22. Where the Constitutional Council declares that an international agreement contains a clause
contrary to the Constitution, authorization to ratify  or approve such an agreement will be subject to
revision of the Constitution.  Regularly ratified or approved treaties and agreements have primacy
over Mauritanian laws as soon as they have been published, subject to application by the other party.
23. Primary responsibility for framing and implementing trade policy lies with the Ministry of
Trade, Craft Industries and Tourism (MCAT).  Other ministries, such as the Ministries of Foreign
Affairs and Cooperation, Economic Affairs and Development, Finance, Fisheries and the MaritimeEconomy, Rural Development and the Environment,  Interior, Post and Telecommunications, Mining
and Industry, Public Works and Transport, and Water Resources and Energy have direct responsibility
in their respective spheres.  A formal framework for consultation with the private sector was
established in 1996.  The Policy Declaration on Good Governance of 8 December 1999 calls on the
State, the private sector and civil society to contribute "in accordance with their respective roles tosustainable human development by setting up the political, legal, administrative, economic and social
conditions for poverty reduction, job opportunities, environment protection, good management of
public affairs, the setting up of a coherent and credible legal system, and the protection of the rights of
the individual".  Box II.1 contains a more comprehensive list of institutions directly or indirectly
involved in foreign trade, export promo tion and/or support for the private sector.
                                                     
11 There are still several orders dating back to the period of emergency military rule (1978-1992),
during which legislative authority lay in the hands of the Comité Militaire de Redressement National (Military
Committee for National Recovery – CMRN), followed by the Comité Militaire de Salut National (Military
Committee for National Salvation – CMSN).  Such orders  become null and void unless they are regularized by
the Parliament.  Since only partial steps have been ta ken to that effect, there is a certain amount of legal
uncertainty surrounding these texts.WT/TPR/S/103 Trade Policy Review
Page 18
Box II.1Institutional framework of Maurit ania's economic and trade policy
Central government :  Ministry of Trade, Craft Industries and Tourism, in particular the Directorate of
Foreign Trade Promotion, the Directorate of Craft Indus tries, and the Directorate of Tourism;  Ministry of
Economic Affairs and Development, in particular the Directorate of Investment Promotion ("SingleWindow");  Unit for the Coordination of the Private-Sector Promotion Programme (UGP);  National Statistics
Bureau;  Ministry of Fisheries and the Maritime Economy, in particular the Directorate of Promotion of
Fisheries Products;  Ministry of Rural Development and the Environment;  Ministry of Finance, in particularthe Directorate-General of Customs and the National Directorate of ASYCUDA;  Secretariat of State,
attached to the Prime Minister, responsible for New Technologies;  Ministry of the Interior, Post and
Telecommunications;  Ministry of Mining and Industry;  Ministry of Water Resources and Energy;  Central
Bank of Mauritania.
Public or semi-public bodies :  Chamber of Commerce, Industry and Agriculture;  Bureau d'appui à la petite
entreprise de Mauritanie (Small-scale Enterprises Support Bureau – BAPEM);  National Centre for
Oceanographic and Fisheries Research (CNROP);   National Livestock Breeding and Veterinary Centre(CNERV);  National Hygiene Centre (CNH);  Mauritanian Fish Marketing Company (SMCP);  MauritanianServices and Tourism Company (SOMASERT).
Private bodies :  Mauritanian Information Centre for Economic and Technical Development (CIMDET).
Professional associations :
Generic :  General Confederation of Employers of Mauritania (CGEM).
Sectoral :  Principal members of the CGEM (National Fi sheries Federation; National Federation of Banks,
Tourism and Services; National Federation of Industries and Mines; National Federation of Agriculture andLivestock Breeding; National Trade Federation;  National Transport Federation).
Thematic :  Union mauritanienne des femmes entrepreneurs et commerçantes  (Mauritanian Businesswomen's
Union – UMAFEC);  Fédération des jeunes entrepreneurs de Mauritanie (Mauritanian Young Entrepreneurs'
Association - AJEM).
Source : World Bank (2001b), Mauritania – Integrated Framework , Volume II, Chapter 1 (to be published).
(vii) Main laws and regulations
24. A process of legislative reform has been undertaken with a view to updating the laws and
regulations governing the Mauritanian economy.  Mauritania's foreign trade legislation comprises the
Customs Code of 1991, the Decree on Import and Export Procedures, and other trade-related laws and
regulations, as detailed in Table AII.1.
25. In recent years, Mauritania has revised and updated many of its trade-related laws and
regulations in order to bring them into line with  its obligations under the multilateral trading system
and to take account of regional developments.  Amendments concerned a variety of areas, including
customs valuation, investment, government procurement, and the Commercial Code (competition).
26. The basic legislation governing fiscal policy comprises the General Tax Code of 1982 and
Law No. 94-010 of 1994 establishing VAT12, as amended by subsequent finance laws.  A new law on
government procurement was approved in 2002.  The legal provisions regulating investment inMauritania are set forth in the 2002 Investment Code, as approved by Law No. 2002-03 of 20 January
2002.  Competition legislation was enacted in 1991 by Order No. 91.09 and incorporated in the 2000
Commercial Code, which establishes freedom of trade, pricing and competition.
27. Legislation governing trade in services essentially comprises the Banking Law of
17 July 1995;  the Law of 28 January 1998 regulating mutual institutions or savings and loan                                                     
12 In practice, VAT collection started in 1995.Mauritania WT/TPR/S/103
Page 19
cooperatives;  the Law of July 1993 on insurance;  and, in the tourism sector, the Law of 7 July 1996
on the organization of tourism in Mauritania and the following decrees:  Decree of 5 March 1997 on
guides, Decree of 16 February 2000 regulating travel agencies and offices, Decree of 18 May 1998
establishing the licensing procedures for accommodation facilities and restaurants, Decree of16 August 1998 laying down standards and procedures for the classification of tourist establishments,
and the Decree of 18 January 2000 establishing the modalities of the tourism tax.
28. Mauritania's international obligations in respect of intellectual property rights are governed by
the revised Bangui Agreement of 1999 and are administered by the African Intellectual Property
Organization (AIPO) (Chapter III(4)(iv)).
13
29. Business activities in Mauritania are regulated by the 2000 Commercial Code, the 2002
Investment Code, the Code of Obligations and Contracts, and the Arbitration Code.
(viii) Transparency and governance
30. Transparency and good governance have a direct impact on the general economic
environment and on the conditions in which economic actors take their decisions and conduct their
business.  In Mauritania, such matters are all the more important as the Government is seeking to
implement a poverty reduction programme by boosting economic activity generally and foreign tradein particular.  According to the IMF, Mauritania's failure to improve public resource management
could seriously damage the Government's credibility, alienate the support of civil society, and
substantially reduce the flow of external financial support.
14
31. According to international observers, corruption appears to exist at various levels of the
Mauritanian Government.  The areas most frequently cited are government procurement, bank loans,the granting of fishing licences, land distribution, taxation, and project and construction management.
Corruption does not seem to constitute a major obstacle to foreign investment, however, although
Mauritania has not signed the OECD Convention on Combating Bribery of Foreign Public Officials in
International Business Transactions.
15
32. Mauritania recently enacted laws and regulations to combat corruption, but their application
remains limited.  The Government is nevertheless committed to preventing and fighting any form of
corruption and to improving governance.  A new criminal code providing for the prosecution of those
accused of corruption is currently being drafted.  Pending its adoption, the Ministers for Justice and
the Interior are organizing seminars to inform government officials of the Government's determination
to root out corruption.16
33. Other measures planned by the Government relate to the need to enhance transparency by
producing and publishing economic data and information on public resource management so as to
ensure accountability, efficiency and control of public spending.  The Government intends to put in
place fiscal programmes for education, health, and rural development;  to publish annual reports on
public expenditure and its impact;  to present the budget execution law ( loi de règlement ) annually to
Parliament17, and to increase the powers of the Court of Audit.  Within the framework of the poverty
                                                     
13 Mauritania ratified the revised Bangui Agreement by means of Law No. 036/2001 of 5 July 2001.
14 IMF and International Development Association (2001).
15 United States Department of State (2000);  and United States Department of State (1999).
16 United States Department of State (2000);  and United States Department of State (1999).
17 This law concerns verification, by the Court of Audit, of monies spent.  The new budget law may not
be voted before the Parliament has approved the budget execution law, i.e. the verification of the budget for theprevious year.  The budget execution law was due to be drawn up systematically as from the 2001 budget year.WT/TPR/S/103 Trade Policy Review
Page 20
reduction strategy, the Government is considering th e establishment of a "rolling" three-year current
public expenditure programme and a "rolling" three-year priority investment programme, reflecting
sectoral strategies and programmes.  There will be  full evaluations of investments in the amount of
US$5 million or more, and projects will be more strictly followed up.  With the help of its
development partners, the Government has also undertaken to review sectoral expenditure – starting
with social expenditure – so as to increase efficiency.18
(2) TRADE POLICY OBJECTIVES
(i) General objectives
34. Since 1992, Mauritania has successfully managed a major transition to economic
liberalization and has implemented a series of structural reforms, with the support of the World Bank
and the IMF.  The results obtained so far are remark able in that private-sector investment is growing
significantly and poverty (although still rife) is declining.  There are a number of outstanding
problems, however, such as rural-urban migration, high urban unemployment and growing demand
for social infrastructure and services.19
35. Reducing poverty and improving the population's standard of living have been the
Government's main priorities since the mid-1980s and remain the key objectives of government policytoday.  The four main pillars of Mauritan ia's Poverty Strategy Reduction Paper (PSRP) 2000,
prepared by Mauritania in consultation with the World Bank and the IMF, are as follows:
20
- To accelerate economic growth as the basis for poverty reduction – the objective
being to improve the competitiveness of th e economy, with an enhanced role for the
private sector, to diversify the production base, to reduce the economy's vulnerability
to external shocks, to consolidate the macroeconomic framework, and to develop
infrastructure;
- to develop the potential for growth and productivity of the poor, and to promote
sectors from which the poor, and poverty-stricken areas, derive direct benefit;
- to develop human resources and improve access to essential services (water,
sanitation, education and health);
- to promote institutional development based on good governance and on participation
of all those involved in the fight against poverty in project implementation and
follow-up;  specific programmes will be geared at consolidating the rule of law,
strengthening the capacities of government services, increasing decentralization,
improving public resource management, and building up the capacities of civil
society.
36. The general objectives of the 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
                                                     
18 Mauritanian Government (2000).
19 Mauritania: Improving the Management of Public Resources - Innovative Approaches  [online].
Available at: http://www.worldbank.org/afr./findings/english/find99.htm.
20 Statement by H.E. Mr Mohamed Dild Nany, Mauritanian Minister of Economic Affairs and
Development, Third United Nations Conference on the Least Developed Countries, Brussels, 15 May 2001.[online].  Available at:  http://www.unctad.org/conference/address/mauritanie15_f.htm.  French only.Mauritania WT/TPR/S/103
Page 21
development targets defined at the various world summits on education, health, access to drinking
water, and housing.
37. The overriding objective of the Government's trade policy is to integrate trade measures into
the national development strategy so that they contribute more effectively to poverty reduction.  Thisis the core theme of the Integrated Framework Pilot Scheme for Mauritania (see Section (3)(i) below).
(ii) Sectoral objectives
38. The measures adopted by Mauritania are not designed to favour any given sector, and
government policy is essentially directed at promoting and diversifying exports in all sectors of the
economy.  In the past, priority sectors such as agro-industry (the rice sector in particular), fisheries,mining, construction and public service works, maritime transport, utilities and tourism benefited
from fiscal incentives.  With the adoption of the new Investment Code in 2002, any exporting
enterprise is now eligible for fiscal incentives regardless of its sector of activity.  Sectoral policy is
now based on general measures aimed at framing legislation, improving infrastructure and sectoral
financing, rather than on production or export support measures or on trade measures to protect
production in a specific sector.
39. In agriculture, the Government's policy is aimed at (i) guaranteeing food security;
(ii) combating poverty and boosting employment in rural areas and increasing farmers' incomes;
(iii) integrating agriculture into the domestic and international markets;  and (iv) protecting and
conserving natural resources for sustainable development.  To achieve these objectives, the
Government plans to implement sectoral development policies in order to enhance technical and
economic performance in the various sectors;  to develop economic and social infrastructure;  and toadopt measures on prices and incentives, liberalization of transport services, financing for the rural
sector, and irrigation inter alia .
40. Government policy in the fisheries sector is geared towards (i) improving resource planning
and management;  (ii) promoting the sector's integration in the global economy;  (iii) building up the
capacities of the sector's institutional structures;  and (iv) preserving the marine environment andmaritime safety.  The measures adopted are designed to gain better knowledge of resources,
strengthen marine surveillance and implement a new system for the granting and management of
fishing licences.  Other measures will be taken in order to promote optimum use of marine products,
develop the necessary infrastructure, and adapt the legislative and regulatory framework to the
objectives set.
41. The Government's objectives in the mining sector are (i) to consolidate sectoral development
and (ii) to promote and diversify activities by creating conditions conducive to their expansion in a
liberalized economic environment open to foreign invest ors.  In order to attain those objectives, the
Government is focusing on the adoption of legislation favourable to foreign investment and on
strengthening State institutions in charge of promoting the sector.  In the manufacturing sector, thecurrent policy is to promote private-sector involvem ent.  The Government is examining the possibility
of drawing up an industrial development strategy.
42. In the services sector, the Government, having recognized the importance of tourism for the
country's development, intends to pursue the foll owing two objectives: (i) to bring Mauritanian
legislation into line with international standards;  and (ii) to prepare a sectoral development strategy.
In the transport subsector, the Government aims to ensure quality standards and geographical
distribution in keeping with economic needs and at reasonable cost.  It has also started to liberalizetelecommunications services, focusing on the development of rural telephony and tariff reduction.  InWT/TPR/S/103 Trade Policy Review
Page 22
the financial services subsector, the Government intends to consolidate the re-organization process,
improve the quality of banking services and enhance the credibility of the credit system.
(3) TRADE AGREEMENTS AND ARRANGEMENTS
(i) World Trade Organization
(a) Overview
43. Mauritania is one of the original WTO Members and grants at least MFN treatment to all its
trading partners.21  Under the legislation in force, the Marrakesh Agreement Establishing the WTO
takes precedence over domestic laws.  In principle, Mauritania is therefore bound by all the WTO
Multilateral Agreements.  The WTO rules and obligations may be invoked in all relevant cases before
the Mauritanian courts, although no such case has arisen so far.  Mauritania is neither a signatory to
nor an observer in the plurilateral agreements (Agreements on Trade in Civil Aircraft andGovernment Procurement).
44. Under the Uruguay Round, Mauritania submitted schedules of concessions on goods and
commitments on services.
22  Its Uruguay Round bindings cover approximately 15 per cent of tariff
lines. 23  Agricultural products are bound at ceiling rates ranging from 25 to 75 per cent (the maximum
level for "other duties and charges" being bound at 15 per cent), with the exception of certain productswhose tariff rates were bound prior to the Uruguay Round.  Bindings for non-agricultural products are
limited and cover only HS chapters 41, 67 and 89, with tariffs bound at a ceiling rate of 30 per cent
(and other duties at 15 per cent).  Mauritania's commitments under the GATS cover solely the tourism
sector (Chapter IV(6)(v)).  Mauritania did not take part in the WTO negotiations on basic
telecommunications nor in those on financial services.
45. As a developing country, Mauritania has a transition period to implement a number of its
commitments under various WTO Agreements.  The country's request to delay compliance with itsobligations under the Agreement on Customs Valuation has been granted for a period not exceeding
31 May 2002.
24
                                                     
21 Mauritania became a Contracting Party to the GATT on 30 September 1963, under the provisions of
Article XXVI:5(c) and through the succession of States process.  During the GATT period, Mauritanian
participation remained weak and was conducted mainly through the West African Economic Community
(WAEC), which later became the Economic Community of West African States (ECOWAS).
22 The schedule of concessions on goods still refers in part to the schedule notified by Mauritania in
1947, when it was still part of the AOF.  These initial concessions were modified during the Annecy Round in1949 and the Torquay Round in 1951.  Mauritania took over the same schedule in 1963, on becoming a GATTContracting Party as an independent State, but has not yet transposed it into the Harmonized System, whichdiminishes the transparency of Mauritania's customs tariff (Chapter III(2)(iii)(a)).
23 This percentage is of the order of 41 per cent if Mauritania's prior commitments are taken into
account (Chapter III(2)(iii)(a)).
24 WTO documents G/VAL/W/58, 21 January 2000;  G/VAL/W/58/Add.1, 14 March 2000;
G/VAL/W/58/Add.2, 18 April 2000;  G/VAL/W/58/Add.3, 18 May 2000;  G/VAL/W/58/Add.4, 22 May 2000;G/VAL/W/58/Add.5, 25 May 2000;  G/VAL/W/58/Add.5/Corr.1, 31 May 2000;  G/VAL/29, 6 June 2000.Mauritania WT/TPR/S/103
Page 23
46. Mauritania has not yet fulfilled its obligations in respect of most of the annual notifications
required under the WTO Agreements;  as at December 2001, the WTO had received only a few
notifications, all of them pertaining to customs valuation.25
47. Mauritania has not been involved in any case under the WTO dispute settlement procedures.
48. At the Fourth WTO Ministerial Conference in Doha, Mauritania underscored the importance
of international trade as a tool for poverty reduction.  It therefore considered it essential that the
programme of negotiations be centred on integrating the developing countries and on addressing their
concerns in areas such as market access, non-tariff barriers, supply-side constraints, capacity-building,
expansion of the production base, transfer of te chnology, the debt burden, commodity prices and
special and differential treatment.  In Mauritania's view, it was also imperative to resolve outstanding
issues related to the implementation of the commitments and obligations in the Uruguay Round
Agreements.26
(b) Trade-related technical assistance
49. As a participant in the WTO since 1995, Mauritania has regularly benefited from WTO
technical assistance, essentially at the request of the country's Permanent Mission to the WTO
(opened in 1998 pursuant to a decision of the Mauritanian authorities in 1996).  Prior to the openingof the mission, technical assistance was limited because there were few contacts between the
Mauritanian authorities and the GATT Secretariat.
50. Technical assistance to Mauritania was stepped up after the WTO High-Level Meeting on
Least Developed Countries in October 1997, which initiated the Integrated Framework for Trade-
Related Technical Assistance – a mechanism under which six multilateral agencies (IMF, ITC,UNCTAD, UNDP, World Bank, WTO) planned to coordinate trade-related technical assistance to
LDCs.  During preparations for the Meeting, the Mauritanian authorities carried out a specific
assessment of their overall needs for several years.
 27
51. This assessment was to serve as a basis for a round table meeting on trade in Mauritania,
scheduled at a later stage of the Integrated Framework.  The meeting has not taken place, however,firstly because the initial assessment did not specif y the country's needs sufficiently clearly for a
cooperation action plan to be drawn up, and secondly because difficulties arose in implementing the
Framework itself.
52. In order to remedy those problems, a review process – undertaken in the spring of 2000 by the
donor countries, LDCs and the international agencies involved – led to the re-modelling of theIntegrated Framework into a viable mechanism for integrating trade into national economic plans and
poverty reduction strategies.  The objective of the revised Framework is to help each LDC to achieve
greater coherence in its trade policies by integratin g its trade priorities in to its poverty reduction
strategy.  The Framework's recommendation is to achieve integration at policy and institutional levels
and through partnership between the Government and the donors.
53. An Integrated Framework Pilot Scheme was adopted in March 2001 to help each LDC
develop a trade integration strategy for sustainable growth through the incorporation of national
policies and other such priorities.  The Scheme provides for diagnostic studies on trade integration in
                                                     
25 WTO documents G/VAL/W/58, 21 January 2000;  G/VAL/W/58/Add.1, 14 March 2000;
G/VAL/W/58/Add.2, 18 April 2000;  G/VAL/W/58/Add.3, 18 May 2000;  G/VAL/W/58/Add.4, 22 May 2000;G/VAL/N/4/MRT/1, 14 Decembe r 2000;  WT/LET/82, 10 May 1996.
26 WTO document WT/MIN(01)/ST/41, 10 November 2001.
27 WTO document WT/COMTD/IF/23, 3 March 1998.WT/TPR/S/103 Trade Policy Review
Page 24
three pilot countries, including Mauritania.  The conclusions of these studies, carried out under the
aegis of the World Bank, serve as a basis for a plan of action comprising a series of recommendations
and specifying priority requirements for technical assistance.  In the case of Mauritania, the study
conducted by the World Bank in 2001 was submitted to the Bank's Consultative Group in
December 2001.
54. The preliminary conclusions of the study reveal that, despite sustained growth and the
significant trade reforms carried out by the authorities, Mauritania still lags behind in terms of
integration into the global economy.  The key obstacles to trade development include supply-side
constraints (in particular the very limited number of exportable products, inadequate port and road
infrastructure, and poor tourism facilities), problems linked to implementation of the WTO
Agreements, and the lack of human and institutional resources needed for more effective participationin the multilateral system, and in negotiations in particular.
55. The trade-related areas in which Mauritania has the greatest need of assistance are
(i) 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 in WTO-
related spheres;  (ii) notifications;  (iii) implementation of the various Agreements;  and (iv) capacity-building for negotiations.
Training in and information on the multilateral trading system
56. As regards training in areas relating to the multilateral trading system, only a limited number
of senior staff, mainly in the Ministry of Trade, Craft Industries and Tourism (MCAT), are versed in
trade policy parameters.  For example, the first trade policy seminar in Nouakchott did not take place
until 1994, and no trade policy training courses were attended by Mauritanian officials until 1995.
Since then, several (mainly MCAT) officials have taken part in the three-month traineeships or short-term trade policy courses organized in Geneva.  The university trade policy curriculum is not
designed for training officials in trade policy implementation and the various relevant instruments.
57. Lastly, private-sector economic operators are ill informed about the multilateral trading
system and its rules.  It is to be hoped that thes e circles have become more familiar with the system,
through broader participation by their representatives in seminars organized for them by variousinternational agencies involved in the Integrated Framework.
58. There are not many enquiry points in Mauritania – the main ones being the WTO Reference
Centre and the Mauritanian Information Centre for Economic and Technical Development
(CIMDET), which both present difficulties for potential users.  The WTO Reference Centre and its
library (installed by the WTO at the Trade Ministry in 1998) are not easily accessible to people notbelonging to the Ministry.  The computer tools have gradually become obsolete, and very few
Ministry staff know how to operate the equipmen t provided.  The CIMDET's WTO documentation is
out of date and fees are charged for services.
59. The Secretariats of the WTO and other intergovernmental agencies as well as bilateral donors
have already begun to assist in meeting overall training needs.  Special efforts are needed andcooperation should be stepped up between internatio nal agencies and bilateral donors, including with
the latter's graduate institutes (in Mauritania, support could be sought to help the university develop
an international trade curriculum).  The number of  Mauritanians attending university-level institutes
in donor countries could be increased through study grants, for example.
60. As regards documentary sources, the WTO Reference Centre should be refurbished so that it
is able to fulfil the role intended by the MCAT.  It would be useful for the WTO Secretariat toMauritania WT/TPR/S/103
Page 25
dispatch an evaluation team in order to optimize the Centre's capacities and ensure that it serves as a
proper training and information facility.
61. Limited knowledge of the multilateral system in the public and private sectors and
universities does not allow a full understanding of the system's advantages and the issues at stake.
This partly explains Mauritania's difficulties in implementing its WTO commitments.
Notifications
62. Mauritania has sent very few notifications to the WTO.  Delays in this respect are mainly due
to the fact that ministry officials in charge of drawing up notifications have little knowledge of the
Agreements to which the country has acceded and a poor understanding of notification requirements(the more so since the drafting of these highly technical documents is often complex).  Smooth
coordination among the ministries involved is also important, but conflicts of jurisdiction between
different government bodies have further delayed the drafting process.
63. Even though the WTO and UNCTAD Secretariats assisted Mauritania in the context of
general seminars held in 1996 and 1999, comprehensive documentation on notification requirements
has been sent, and high-level Mauritanian officials took part in two workshops on the subject (held in
Geneva in 1996 and 1997), the above problems remain unresolved.  The Mauritanian authoritieswould therefore like to receive more extensive support in notification matters, particularly in the form
of technical missions to help the various ministries and institutions concerned.  Another option would
be to organize a national seminar on notifications.
Implementation of the Agreements
64. Mauritania's main implementation-related concerns are in the areas of customs valuation,
SPS/TBT and TRIPS.  The authorities would also we lcome assistance in re-negotiating Mauritania's
schedule of tariff concessions and support for any steps that would enable the country to benefit from
the provisions on technical assistance in the Agreements on SPS/TBT and the TRIPS Agreement.
65. As regards customs valuation, in June 2000 Mauritania was granted a delay until May 2002 to
apply the Agreement on Implementation of Article VI I of the GATT, owing to insufficient human and
institutional capacity in the customs services.  The Mauritanian Government was required to report to
the Committee on Customs Valuation at regular intervals on progress in the work programme annexed
to the decision.  The implementation programme targeted the following four objectives:  (i) to revise
customs legislation and regulations;  (ii) to train customs officials to implement Article VII;  (iii) toraise awareness of and provide information on the Agreement, inter alia  by organizing a seminar for
economic partners (traders, agents and entrepreneurs);  and (iv) to establish and apply a national tariff
in order to combat under-invoicing.
66. Mauritania has achieved most of the objectives set forth in the work programme.  The WTO
Secretariat and the World Customs Organization (WCO) provided technical support, especially inrevising the Customs Code.  Mauritania would also welcome assistance in training customs staff and
combating under-invoicing, to be arranged with the help of the relevant international agencies.
67. In customs valuation (based on the use of transaction value), the most frequently reported
problem – in addition to under-invoicing and the presence of a highly active informal sector – is that
not all customs posts are as yet computerized, meaning that data are not automatically transmitted to
the Directorate-General of Customs.  The Directorate itself has no computer database for creating a
reference file and cannot therefore ensure proper risk management.  It will be impossible to derive fullWT/TPR/S/103 Trade Policy Review
Page 26
benefit from the implementation of the Agreement on Customs Valuation as long as enforcement
capacities and the customs infrastructure have not been strengthened.
68. With respect to the TBT and SPS Agreements, the Mauritanian authorities maintain that the
country has only limited means of benefiting from these Agreements.  Among the arguments cited are
the almost complete lack of infrastructure (e.g. laboratories and equipment) and the fact that quality
control and metrology for the domestic market and imports are entirely in the hands of brokers or pre-shipment inspection companies.  It is the authorit ies' hope that the TBT and SBS provisions dealing
with trade-related technical – and in particular bilateral – assistance will translate into the delivery of
equipment.
69. As regards intellectual property rights, Mauritania does not yet have the many experts and
resources needed to implement the TRIPS Agreement.   According to the authorities, the country has
received little support from international cooperation agencies, in particular the WTO and the WIPO.
Support has been limited to the organization of a general seminar in Nouakchott in 1999, a regional
seminar in 2000, and the delivery of supplies by the WIPO.  There is therefore an urgent need to
develop knowledge and expertise in this government  department (for example by providing training
for judges, lawyers and other court officers) and in other institutions (e.g. customs as regards imports),through training courses and workshops.
70. Mauritania wishes to receive technical assistance in bringing its schedule of concessions on
goods into line with WTO requirements.  Its prior concessions on goods have never been revised
(Chapter III(2)(iii)(a)).  Revision is imperative, how ever, if the schedule is to be transposed into the
Harmonized System and above all if it is to integrate prior concessions with those undertaken in the
Uruguay Round.  Although part of the revision work has already been done by the Directorate-
General of Customs, the Mauritanian authorities would welcome assistance in bringing the scheduleinto conformity.
Participation in the WTO and trade negotiations
71.  Mauritania's main concerns are to enhance and increase its participation in the work of the
WTO and in ongoing and future trade negotiations.  As regards participation in the WTO's work, a
senior official specializing in trade issues has joined the Mauritanian Permanent Mission to the WTO.
To enhance their country's participation in trade negotiations, the Mauritanian authorities would like
their officials to be better informed of the status of the negotiations and to be able to make more
effective preparations for them.  Seminars and workshops on negotiating techniques or on the role of
statistics in negotiations are assistance activities that could be envisaged.
(ii) Regional agreements
72. Mauritania was a Member of the Economic Community of West African States (ECOWAS)
until December 1999, when political and economic constraints caused it to withdraw.  According to
Mauritanian economic operators in different sectors, the immediate consequence of the decision was
to restrict Mauritania's access to the markets of Senegal and Mali as a result of the 5 to 20 per cent
increase in customs duties on most Mauritanian exports.
28  Mauritania's pelagic fish products, which
used to enjoy duty-free access to the other ECOWAS markets, have also been penalized.  The Arab
Maghreb Union – the only regional organization to which Mauritania currently belongs – is unable at
present to compensate for this market loss because of the relatively small share of these countries in
Mauritania's total exports and because the Union has become dormant as a result of long-standing
political problems in its Member States (see below).
                                                     
28 Bilateral agreements with both countries are being negotiated.Mauritania WT/TPR/S/103
Page 27
Union du Maghreb Arabe (Arab Maghreb Union – UMA)
73. The UMA was established on 17 February 1989 at a meeting in Marrakesh of the Heads of
State of Algeria, Libya, Mauritania, Morocco and Tunisia.29
74. The UMA's institutions are the Council of Heads of State, the Council of Foreign Ministers, a
Follow-up Committee, a 10-member Court of Justice (two members per country) to settle disputes
between parties from Member States, an Advisory Body composed of 30 representatives from each
Member State, and four expert Ministerial Committ ees.  The Union does not have a fixed secretariat
but has hitherto followed the order of rotation of the annual presidency.30
75. The objectives of the UMA are the free movement of goods and persons and a revision of
customs regulations with a view to the establishment of a free-trade zone.  Some 20 conventions and
agreements have been signed to date within the framework of the Union, of which 17 have been
ratified by Mauritania31;  these include the Treaty establishing the Maghreb Arab Union;  an
agreement on trade in agricultural products among UMA countries; an agreement on investment
promotion and guarantees;  an agreement on phytosanitary standards;  an agreement on avoidance of
double taxation and modalities of cooperation in fiscal matters;  a convention establishing a Maghreb
investment and foreign trade bank;  a trade and tariff convention and annexes;  a convention onmaritime cooperation;  a convention on the organization of government procurement in the public
works sector;  an agreement on the establishment of a Maghreb insurance and re-insurance
committee;  a protocol on certificates of origin;  and a convention on mutual administrative assistance
for the prevention, investigation, and repression of customs offences.  The UMA does not appear to
operate in practice, however.
32
76. Among the UMA's projects for the future are the introduction of a unit of account that could
be used for inter-Maghreb trade;  the creation of a Maghreb bank for investment and international
trade to finance joint agricultural and industrial projects;  the improvement of the railway network;
and the creation of a highway linking the Member countries.33
77. The UMA's share of Mauritania's foreign trade remains extremely limited34, UMA Member
States accounting for 0.5 per cent of Mauritania's exports and 3.3 per cent of its imports in 2000,
excluding petroleum products.  Several exogenous factors, such as the international embargo imposed
on Libya until 1999, the Algerian crisis and differences between Member countries on the Western
Sahara issue have, in practice, stalled the integration process.
                                                     
29 European Institute for Research on Mediterranean and Euro-Arab Cooperation (1999).
30 European Institute for Research on Mediterranean and Euro-Arab Cooperation (1999).
31 Les Conventions  [online].  Available at:  http://www.mauritania.mr/Français/convention_rim_fr.htm
(30 August 2001). French only.
32 Pursuant to the Declaration of February 1997 of the Economic and Social Council of the League of
Arab States, it is also planned to establish a greater Ar ab free-trade area within a period of 10 years starting on
1 January 1998.  This would bring together the 22 signatories to the Agreement on Facilitation andDevelopment of Trade among Arab Countries (including the UMA Member countries), namely:  Algeria,
Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman,
Palestinian Authority, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen.Mauritania ratified this Agreement on 19 July 1998.
33 European Institute for Research on Mediterranean and Euro-Arab Cooperation (1999).
34 European Institute for Research on Mediterranean and Euro-Arab Cooperation (1999).WT/TPR/S/103 Trade Policy Review
Page 28
(iii) Other trade agreements and arrangements
(a) The ACP-EC Partnership Agreement (Cotonou Agreement)
78. Mauritania is a party to the ACP-EC Partnership Agreement (successor to the Lomé
Convention) between the European Union and 71 countries in Africa, the Caribbean and the Pacific,
signed in Cotonou (Benin) on 23 June 2000 and ratified by Mauritania on 30 March 2001.  Focusing
on poverty reduction as its principal objective, to be achieved through political dialogue, developmentaid and closer economic and trade cooperation, this Agreement theoretically grants Mauritania non-
reciprocal duty-free access to the EU market for industrial and fisheries products and agricultural
commodities not covered by the EU's Common Agricultural Policy.  For other agricultural products,
the ACP countries receive more favourable treatment than that accorded by the EU to MFN suppliers.
In practice, Mauritanian products benefiting under the Agreement include fisheries products, iron oreand a few off-season vegetables.  The Cotonou Agreement also provides for technical cooperation and
financial aid of around 13.5 billion from the Eur opean Development Fund during the Agreement's
first five years, to help ACP Members create a balanced macroeconomic context, expand the private
sector, and improve both the quality and coverage of social services.
79. The ACP-EC Partnership Agreement provides a comprehensive framework for trade
cooperation and aid development.  The EU and the ACP States have agreed on a process to establish
new trading arrangements that will pursue trade liberalization between the parties and formulate
provisions on trade-related matters.  The system of trade preferences, previously granted by the EU to
ACP countries will gradually be replaced by a series of new economic partnership agreements based
on gradual removal of trade barriers.  Under the new Partnership Agreement, the objectives of
economic and trade cooperation are to promote a smooth and gradual integration of ACP economies
into the world economy;  to enhance production, supply and trading capacities;  to create new tradedynamics and foster investment;  and to ensure full conformity with WTO provisions.
80. The Agreement also foresees cooperation in trade-related areas such as trade in services;
competition policy;  protection of intellectual property rights;  standardization and certification;
sanitary and phytosanitary measures;  trade and environment;  trade and labour standards;  and
consumer policy and protection of consumer health.
81. Within the framework of the WTO, in Nove mber 2001 the ACP-EC Partnership Agreement
was granted a waiver, until 31 December 2007, from the provisions of paragraph 1 of Article I of the
General Agreement (GATT 1994) to permit the European Union to provide preferential treatment for
products originating in ACP countries.
35
(b) Bilateral trade agreements
82. Mauritania has concluded several trade agreemen ts with countries such as Algeria, Egypt,
Gambia, Mali, Morocco, Senegal and Tunisia.
(c) Preferential schemes
83. Mauritanian exports enjoy preferential access under the Generalized System of Preferences
(GSP) of industrialized countries.  Japan ranks first since it allows Mauritania to export octopus (oneof the country's major exports) at a zero rate of duty.  On 2 October 2000, Mauritania became eligible
for trade preferences granted by the United States under the African Growth and Opportunity Act
(AGOA).  Mauritanian exports in principle benefit from the trade preferences accorded to LDCs by a
                                                     
35 WTO document WT/L/436, 7 December 2001.Mauritania WT/TPR/S/103
Page 29
number of industrialized countries, in particular under the European Union's "Everything but Arms"
initiative.
(4) FOREIGN INVESTMENT REGIME
(i) Overview
84. The main investment objective of the Mauritanian Government is to attract and promote
foreign investment in order to stimulate the c ountry's growth and economic development.  The
Government is striving to improve the business climate by giving the private sector a leading role in
the domestic economy.  Mauritania's investment policy contains all the basic elements needed to
foster an open investment climate.
85. There are no data available on flows of foreign direct investment (FDI) disaggregated by
country or by sector, nor are there any statistics  on Mauritania's direct investment abroad.  The
Ministry of Economic Affairs and Development estimated the country's FDI at US$47.5 million in
2000.
(ii) Regulatory framework
86. Domestic and foreign private investment in Mauritania is regulated by the Investment Code,
enacted on 20 January 200236, which superseded the 1989 Code.37  The new Code clearly redefines
the Government's priorities, considerably simplifies the financial incentives system and eliminates
special schemes (except with regard to the Société nationale industrielle et minière de Mauritanie
(National Industrial and Mining Company of Mauritania) (SNIM)) under the 2002 budget law.  All
fiscal incentives have been incorporated into the single ordinary fiscal regime.38
87. The new Code applies to all economic sectors.   Although it does away with priority areas39, as
defined in the 1989 Code, it contains a "negative list" designed to prevent any confusion stemming
from the overlapping of texts.  The list includes, inter alia , activities covered by the law regulating
banking operations (with the exception of leasing);  activities governed by the insurance regulations in
force, and reinsurance activities;  and activities in the mining and hydrocarbons sectors regulated by
special legislation.
88. The Code establishes a financial incentives regime, including free points, and lays down
eligibility requirements (Chapter III(3)(v)).  There are no performance requirements unless a special
investment agreement so specifies.  The Code affords investors guarantees against sovereign risk and
                                                     
36 The Hydrocarbons Code of 1988 (Order No. 88.151 on the legal and fiscal regime applicable to
petroleum exploration and exploitation), the Mining Code of 1999 (Law No. 99/013), the Fisheries Code of2000 (Law No. 2000-025), and the Commercial Code of 2000 (Law No. 2000-05) also contain provisionspertaining to investments.
37 The criticism levelled against the 1989 Code and its application included:  excessive delays in the
granting of approvals;  the lack of consistency in the decisions to grant approval;  the climate of suspicion as tothe regularity of operations tainted by the discretionary nature of approvals;  and privileges that offered littleencouragement to priority enterprise s on account of the cumbersome proced ures involved.  Moreover, Finance
Ministry officials noted that the Code's tax and customs concessions and other privileges were not reallydecisive elements in domestic or foreign investment decisions and that the cost of tax incentives often exceeded
benefits to the investor.  The new Code of 2002 was adopted in order to remedy such problems.
38 Rights acquired by investors under the previous Code are maintained until the corresponding
privileges have expired.
39 Agro-industry, fisheries, mining, construction and public service works, maritime transport, building
of low-income housing, utilities and tourism were considered priority areas.WT/TPR/S/103 Trade Policy Review
Page 30
lists the basic principles applicable to all forms of investment.  These include freedom of
establishment and investment;  equal treatment of foreign and national investors;  freedom of recourse
to either national or international arbitration (at the foreign investor's choice) for the settlement of
disputes;  free transfer of capital and income;  and compensation in the event of expropriation,
nationalization or requisition.
89. All sectors of the economy are open to foreign investors, and there are no restrictions on
foreign equity participation.  The Investment Code contains provisions governing the settlement of
disputes (Article 7).  Disputes stemming from interpretation or application of the Investment Code are
settled by arbitration or conciliation as provided under domestic law, or by the competent Mauritanian
courts in conformity with the laws and regulations of the Republic.  In the event of a dispute between
a foreign natural or legal person and the Islamic Republic of Mauritania, the case is settled byarbitration or conciliation under any of the following mechanisms:  (i) bilateral agreements or treaties;
(ii) the International Centre for Settlement of Investment Disputes (ICSID), established by the 1965
Convention on the Settlement of Investment Disput es between States and Nationals of Other States;
or (iii) an ad hoc tribunal constituted in conform ity with the arbitration rules of the United Nations
Commission on International Trade Law (UNCITRAL).
90. As many as 160 projects were declared eligible for special privileges under the 1989
Investment Code.  The number of foreign investor s remains limited, however, and the focus is on the
fisheries and agricultural sectors.  There are no foreign investors on the list of enterprises established
in the interior (except for the mining sector, which is of potential interest to foreigners), and only one
third of the projects approved are reported to have begun operations.
40  In view of the recent
enactment of the new Investment Code, it is too early to assess its impact on investments.
91. In order to simplify the procedures under the 1989 Investment Code and cut down on the time
needed to secure approvals, the National Invest ment Commission was replaced by a Single Window,
created in February 199741 under the Directorate of Private Investment Promotion (Ministry of
Economic Affairs and Development).  Various relevant agencies (industry, rural development,
fisheries, taxation, and customs) are represented there.  The new Investment Code has radically
changed the role of the Single Window.  The principal innovation is that the whole approvalprocedure, in the form of a simple declarat ion, is now centralized at the Single Window.
42
92. The Single Window unit receives and forwards information and assists investors with all
administrative procedures and formalities.  It provides guidance and serves as the contact point for
and intermediary between investors and government services.  It handles investors' applications and
issues the documents or titles they need to avail themselves of privileges, within a maximum of30 days following the submission of the declaration detailing each investor's operations or
expenditure.
43  It is also in charge of following up on the realization of investments.  The Single
Window may not refuse to deliver an investment certificate unless the investor has been notified,
within the time-limit specified by the Minister for Economic Affairs and Development, that the
                                                     
40 Ministry of Trade, Craft Industries and Tourism (2001).
41 It became operational in July 1997.
42 Under the 1989 Code, the Single Window was respon sible for receiving and assessing applications
and for granting approvals under the various regimes in the Code.  Every application was submitted for approvalto the Ministry of Economic Affairs and Development, and the decision was taken by decree of the Council of
Ministers and published in the Official Journal.  After a promising start to the initiative in early 1997, the
Council of Ministers did not grant a single approval in 1998.  Some 50 approvals were granted betweenJune 1999 and December 2000.
43 Entitlement to privileges is subject to full completion of the investment project within a period of
three years counted from the date of no tification of the investment certificate.Mauritania WT/TPR/S/103
Page 31
activities in question are not eligible for the privileges requested (Article 13-1).  Any administrative
act pertaining to entitlements under the Code must be duly founded where it is not in the investor's
favour.  It is deemed to be in the investor's favour where it has not been issued within the specified
deadline, or within 45 days in the absence of any such deadline.
93. In 1996, Mauritania became a member of the Multilateral Investment Guarantee Agency
(MIGA), which covers foreign direct investment agains t political risks.  It has also concluded bilateral
investment promotion and protection agreements with the other Members of the Arab Maghreb Union
(Algeria, Libya, Morocco and Tunisia), the Belgium-Luxembourg Economic Union, France and
Romania.  Further agreements have been signed with countries such as Burkina Faso, Cameroon,Gambia, Ghana, Guinea and Mauritius, and the ratification process is under way.  Negotiations are
currently being conducted with South Africa, Egypt, Italy and Malaysia.