RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/G/48
7 December 1998
(98-4884)
Trade Policy Review Body Original: French
TRADE POLICY REVIEW
TOGO
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 Togo 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 Togo.Togo WT/TPR/G/48
Page 3
CONTENTS
I. OVERVIEW..................................................................................................................... .........5
(1) ECONOMIC ENVIRONMENT ........................................................................................................5
(2) GENERAL TRADE POLICY CONTEXT ..........................................................................................6
II. TRADE POLICIES  AND PRACT ICES.................................................................................6
(1) GENERAL TRADE POLICY OBJECTIVES .....................................................................................6
(i) General economic po licy object ives............................................................................6
(ii) General trade po licy objectives...................................................................................7
(iii) General objectives from th e socio-politica l viewpoint..............................................9
(2) SECTORAL OBJECTIVES .............................................................................................................9
(i) Public administration for economic and trade development...................................9
(ii) Public finan ce and currency .......................................................................................9
(iii) Serv ices .................................................................................................................. .....10
(iv) Agricu lture ................................................................................................................ .12
(v) Environment...............................................................................................................12
(vi) Industry ................................................................................................................... ...13
(vii) Mining.................................................................................................................... .....13
(3) TOGO 'S OBJECTIVES IN THE FRAMEWORK OF THE WTO .......................................................14
(i) Togo in the context of the GATT and the WTO .....................................................14
(ii) Trade policy objectives of Togo in the framework of the WTO............................14
(4) IMPORT AND EXPORT REGIME ................................................................................................16
III. TRADE POLICY FRAMEWORK .......................................................................................16
(1) DOMESTIC LAWS AND REGULATIONS .....................................................................................16
(i) Organic texts ..............................................................................................................1 6
(ii) Regulatory  texts .........................................................................................................17
(iii) Introduction and dismantling of state trading monopolies....................................17
(iv) Importer 's card ..........................................................................................................17
(v) Import authorizat ion and licence .............................................................................17
(vi) Export licensing..........................................................................................................1 7
(vii) Quotas and prohibitions............................................................................................18(viii) Regulatory framework in respect of taxation .........................................................18
(ix) Regulatory framework wi th respect to  customs .....................................................18
(x) Regulatory framework with  respect to investment.................................................19
(xi) Regulatory framework with resp ect to regional integration .................................19
(xii) Regulatory framework wi th respect to transit........................................................20
(2)
INSTITUTIONAL FRAMEWORK AND THE PROCESS FOR FORMULATING TRADE
POLICIES ............................................................................................................................... ....20
(i) Institutional  framework ............................................................................................20
(ii) Legislative process for fo rmulating trade policies ..................................................21
(3) MAIN BILATERAL , REGIONAL , MULTILATERAL AND PREFERENTIAL TRADE
AGREEMENTS ...........................................................................................................................22
(i) Bilateral ag reements..................................................................................................22
(ii) Regional agreements..................................................................................................22WT/TPR/G/48 Trade Policy Review
Page 4
(iii) Multilatera l agreements ............................................................................................23
(iv) Preferential  agreements ............................................................................................24
IV. IMPLEMENTATION AND EVALUAT ION OF TRADE  POLICY.................................24
(1) MEASURES AFFECTING IMPORTS ............................................................................................24
(i) Customs duties and other taxes and charges...........................................................24
(ii) Prohibitions, quotas and quantitative restrictions..................................................25
(iii) Import licence s ........................................................................................................... 25
(iv) Customs valuation of imports...................................................................................25
(v) Rules of  origin ............................................................................................................2 5
(vi) Standards.................................................................................................................. ..25
(2) MEASURES AFFECTING EXPORTS ............................................................................................26
(i) Regulations, quantitative restrictions and quotas...................................................26
(ii) Export taxes and duties .............................................................................................26
(iii) Free zones and industrial zones................................................................................26
(iv) Export subsidies and aid ...........................................................................................27
(v) Promotion of  exports .................................................................................................27
(3) MEASURES AFFECTING PRODUCTION AND TRADE .................................................................28
(i) State-owned enterprises and the privatization process ..........................................28
(ii) Investment strategies .................................................................................................29
(iii) Government procurement.........................................................................................29
(iv) Competition legislation..............................................................................................29
(4) POLITICAL NEEDS AND OBJECTIVES WITH REGARD TO THE ECONOMY AND
DEVELOPMENT .........................................................................................................................29
(5) THE FOREIGN TRADE ENVIRONMENT AND PROBLEMS ENCOUNTERED IN FOREIGN
MARKETS ............................................................................................................................... ...29
(i) The foreign trade environment.................................................................................29
(ii) Problems encountered in foreign markets...............................................................30
V. CONCLUS ION ................................................................................................................... ....30Togo WT/TPR/G/48
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I. OVERVIEW
(1) ECONOMIC ENVIRONMENT
1. Towards the end of the 1970s, Togo experienced a deterioration in its internal and external
balances caused, inter alia , by a prolonged decline in the terms of trade attributable to the fall in
world prices of its principal exports.  In 1983, the Government therefore launched a process of
adjustment aimed at re-establishing economic viability through in-depth structural reforms, and at
ensuring renewed growth.  The successive programmes implemented by the Government were backed
by the International Monetary Fund (IMF), the World Bank and other bilateral and multilateral
funding sources.
2. These adjustment efforts, which produced relatively satisfactory results from the point of
view of macroeconomic balances, were unfortunately seriously disrupted and undermined as from the
last quarter of 1990 by the socio-political disturbances which accompanied the process of
democratization.  The socio-political crisis culminat ed in 1993 with a general strike which lasted more
than nine months in some branches of activity.
3. The crisis was felt particularly strongly in the secondary and tertiary sectors whose production
units are for the most part located in and around Lomé.  Only the primary sector experienced growth
as a result of the influx of labour as the urban population moved to the country during the
socio-political unrest.
4. Government revenue fell sharply, while expenditure did so to a lesser extent.  Thus, the
government budget deficit worsened seriously with the accumulation of internal and external arrears.
5. In this very poor financial and economic context, the exchange rate of the CFA franc against
the French franc was adjusted on 12 January 1994, initially aggravating inflation in the economy in
general.
6. In order to put a halt to the persistent deterioration in the economic and financial situation and
take full advantage of the opportunities offered by the devaluation of the CFA franc, the Government
decided to introduce three-year and medium-term ad justment programmes aimed at re-establishing
economic balances and fostering equitable growth.
7. In that connection, the Prime Minister defined the overall economic and trade policy
objectives of the country in his key-note address of September 1996 (see Section II.(1)).
8. Considerable efforts were then deployed to achieve the main macroeconomic objectives.  The
Togolese economy began to grow again with a relativ ely low inflation rate and an improved balance
in the external current account.  However, the rate  of investment remained low in relation to the
country's needs.
9. For the last few years, the country has had a relatively stable democratic political framework
featuring a multi-party system, a free private press and a number of democratic institutions
(Constitutional Court, high authority for audiovis ual media and communication,  Supreme Council of
Justice, Court of Audit, Parliamentar y Court of Justice, Supreme Court).
10. To summarize, in this socioeconomic context, Togo achieved positive, variable growth rates
(16.4 per cent in 1994;  6.8 per cent in 1995;  9.1 per cent in 1996 and 4.7 per cent in 1997), while
remaining one of Africa's least-developed countries with a per capita GNP of US$320 in 1994.WT/TPR/G/48 Trade Policy Review
Page 6
(2) GENERAL TRADE POLICY CONTEXT
11. In the framework of its overall economic and social development policy, Togo has for many
years now been implementing a liberal trade policy.
12. Although confirmed as an open-door policy in the 1970s, this liberal option has been
punctuated with interventionist measures, including:
- A state-trading monopoly;
- tariff and tax measures;
- non-tariff measures such as:
- regulation of imports and exports resulting in quotas and prohibitions;
- protection of local industries;
- import and export licensing;- registration of economic operators;
- price approval and controls, etc.
13. In response to the constraints imposed by the domestic and international economic and trade
environment, Togo began in the 1980s, either autonomously or at the recommendation of the IMF, the
World Bank and other international organizations, to strengthen its policy of liberalization byeliminating various interventionist measures and freeing up economic and trade activities in general.
It also stepped up efforts to attract foreign investment.
II. TRADE POLICIES AND PRACTICES
(1) 
GENERAL TRADE POLICY OBJECTIVES
(i) General economic policy objectives
14. In response to the economic and social development aspirations of the country's populations,
the Prime Minister, in his key-note address of  September 1996, defined the country's overall
economic policy objectives as follows:
- Restore macroeconomic and financial balance;
- revive the development programmes with a view to achieving sustained, durable and
balanced economic and trade growth.  The following programmes are involved:
- fiscal consolidation;- privatization of State enterprises;
- adjustment and reflation of the economy;Togo WT/TPR/G/48
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- strengthening of development management capacities, including good
government, poverty alleviation, adjustment of the financial sector, support
for the private sector, and the action plan for the development and promotion
of trade;
- improve the country's external competitiveness;
- take advantage of subregional economic integration within WAEMU and ECOWAS;
- take advantage likewise of the operational activities of the United Nations system
with respect to economic, trade and social development.
15. The planned quantitative results of these programmes are:
- To achieve an average annual growth rate of real GDP of 6 per cent;
- to maintain an inflation rate, measured in terms of the consumer price index, of 3 per
cent on average;
- reduce the deficit in the balance on current account, grants included;
- settle domestic arrears;
- reduce external arrears as far as possible;
- substantially reduce the level of non-IMF domestic borrowing by the Government
and public sector enterprises.
16. The resources needed to implement these programmes and achieve the intended results are to
come from higher domestic savings and an increase in the level of external financing.
(ii) General trade policy objectives
17. With respect to trade in general, and in spite of the economic difficulties and socio-political
disruptions, Togo is keen to strengthen and improve its position as a trading centre and transit country
in West Africa.
18. Thanks to its infrastructure, in particular the autonomous deep water port, the international
airport of Lomé and Niamtougou, its export-processing free zone, its road network, etc., Togo is a
trade crossroads for the West African subregion, and in a spirit of solidarity and complementarity, itserves as a relay centre for imports and exports of its neighbours, in particular the land-locked
countries.
19. Beyond this concern with national, regional and continental matters, Togo has been more than
simply a by-stander in the new international economic and trade context.
20. In addition to the measures aimed at the general liberalization of economic and trade
activities, Togo took the necessary steps to respond to the requirements of this new international
context and became an original Member of the WTO on 31 May 1995.
21. Over the past few years and in the future, Togo's trade policies have been and will continue to
be concerned with:WT/TPR/G/48 Trade Policy Review
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- Introducing an action plan for the development and promotion of trade;
- improving the institutional and regulatory framework with a view to creating an
environment favourable to the private sector, to investment and to the promotion of
exports and foreign trade;
- drawing up and implementing follow-up and support measures to ensure that
liberalization effectively benefits the private sector, consumers and the nationaleconomy and becomes a factor in the country's economic and social development;
- identifying the comparative advantages and disadvantages of the liberalization
measures and ensuring that the economic operators are aware of the action that has to
be taken to reduce or avoid the disadvantages (inflation, abusive or inappropriate
influence of devaluation and VAT on prices) while maximizing the advantages(diversification of sources of supply, fair competition, lower inflation);
- strengthening and improving output and productivity of goods that can actually be
exported;
- identifying and implementing measures to encourage and support diversification and
intensification of production for export of non-traditional goods and goods in the
agricultural, fishing, industrial, crafts and livestock sectors;
- strengthening and improving structures, mechanisms and procedures for collecting,
storing, managing and disseminating export and import market information;
- strengthening and improving human and institutional capacities as regards
management and the promotion of trade and related activities, and ensuring
coordination among the structures involved in trade promotion;
- stepping up participation in international and regional fairs to promote exportable
products;
- improving competitiveness from the point of view of quantity, quality and standards;- developing and implementing measures to stimulate investment and the financing of
production for export through appropriate structures;
- rationalizing imports (better sources of cheaper supply with a view to obtaining the
best value for money);
- ensuring better domestic market regulation and organizing competition;
- pursuing the process of State withdrawal from non-strategic sectors;- intensifying and improving transit trade;- enhancing the country's involvement in international organizations dealing with
international trade;Togo WT/TPR/G/48
Page 9
- following up and taking full advantage of the bilateral and multilateral agreements
and conventions to which our country is party, as well as the different preference
systems and liberalization arrangements for which they provide;
- ensuring that the private sector, civil society, universities, NGOs, trade unions and
civil associations are all actively associated with the development and
implementation of the above measures.
(iii) General objectives from the socio-political viewpoint
22. The chief concerns in this area are to:
- Consolidate democracy, security and peace;
- reinforce national solidarity;
- take up the educational and cultural challenge;
- engage in active diplomacy focusing on effective cooperation.
23. These concerns form the basic conditions for a social environment in which the economic and
trade policy objectives can be achieved.
(2) SECTORAL OBJECTIVES
24. The Government's sectoral objectives consist in  liberalizing activities, strengthening human,
institutional, material and infrastructural capacities, and enhancing efficiency in the various sectors.
(i) Public administration for economic and trade development
25. The Government's objectives in this sector are to restructure the ministerial departments
concerned in order to make them more dynamic and efficient in carrying out their tasks, and also to
transform the Togolese public administration into an efficient development tool.
26. Thus, the strategy to modernize public administration aims, inter alia , at redefining the
essential roles of the State and of each ministerial department concerned, at implementing the
programme for administrative decentralization, a coherent employment policy including anappropriate manpower plan, and incentives to stimulat e a spirit of emulation with a view to boosting
productivity.  It is in this context that, with the recent restructuring of the Government, a ministry was
created to take charge of modernizing the administration.
(ii) Public finance and currency
27. Togo's budgetary policy essentially aims at resp ecting the convergence criteria defined within
the WAEMU, and its principal medium-term objective is to boost public saving in order to maintain a
high rate of public investment in general and investment financed by domestic resources in particular.
Appropriate measures will be taken to that end, directed towards the rationalization of expenditure in
order to achieve an overall deficit level that can be financed through ordinary resources, making it
possible to settle internal and external arrears and reduce the overall deficit excluding grants.
28. Togo's overall monetary policy will continue to be coordinated at the regional level with its
WAEMU partners so that foreign exchange reserves can guarantee the stability of the CFA franc.WT/TPR/G/48 Trade Policy Review
Page 10
Interest rate policy will be designed to maintain intervention rates at levels which make it possible to
attract and retain capital in member countries.  The Togolese authorities will continue to cooperate
with their WAEMU partners in strengthening the mechanisms used by the regional central bank to
absorb bank liquidities, pursue the progress achieved in introducing a regional financial market and
enhance the efficiency of the process of mobilizing domestic financial resources.
(iii) Services
29. The option of State withdrawal from the production of goods and services and the dismantling
of monopolies should greatly facilitate the liberalization of trade and the development of viable
financial, banking and insurance systems for the benefit of domestic and foreign trade and service
operators both upstream and downstream, including transport, post and telecommunications, water
and electricity, and tourism.
(a) Transport
30. The Government's objectives in this sector include:
- Reinforcement, rehabilitation and regular maintenance of urban and rural road
infrastructures, to which end a road maintenance fund has been created;
- further liberalization of maritime transport;  in this connection, freight distribution
has been eliminated in order to allow economic operators to choose their means of
transport freely, and port fees have been considerably simplified;
- strengthening, improving and facilitating transit trade through the Togo corridor with
a view to reinforcing Togo's external comp etitiveness.  To that end, the Government
plans to create a dry port at Blitta to make it easier to transport goods towards the
interior of the country and hinterland countries;
- restructuring and improvement of rail transport;- improvement of the efficiency of air transport services;
- reducing the social costs of transport and ensuring proper safety in the transport
sector.
(b) Post and telecommunications
31. To ensure efficient and competitive telecommunications services, in 1995 the Government
launched a process of liberalization which should culminate in 1999 with the opening up of the capital
of Togo Telecom to the private sector.  The long-term objective is the liberalization of all segments of
the market.  The process, which has already begun with the granting of a mobile telephone licence,
includes, inter alia , the setting up of a regulatory agency for the sector together with a frequency
management unit.
32. As regards the postal system, the restructuring process is to be pursued and will ultimately
result in privately-run postal services.Togo WT/TPR/G/48
Page 11
(c) Electricity and water
33. In the field of electricity and water, the Government's action will focus on pursuing the
implementation of measures designed to recover service costs and to apply the corresponding charges
with a view to making production units as profitable  as possible, thereby increasing their capacity for
financing their own investments.
34. It was to that end that the implementation of the plan for the settlement of internal arrears
focused particularly, in 1997, on the debt of the Electric Power Company of Togo (Compagnie
énergie électrique du Togo - CEET) and the National Water Company of Togo (Régie nationale des
eaux du Togo - RNET) with the State and State companies.  In order to improve managementefficiency in the sector, the Government will also have recourse to the private sector, either through
outright privatization, or by arrangements such as privatization of commercial management (in the
case of RNET) or concessions (in the case of CEET).
35. The Government will also seek to promote private sector investment in energy and water
management with a view to improv ing the supply to the population.  In the long term, it will also seek
an overall solution to its energy problems in the framework of subregional cooperation.
36. The Government's efforts will focus in the long term on increasing electricity production in
order to reduce the country's dependence on imports.  The responsibility for these efforts is entrusted
to the Beninese Electrical Community (Communauté électrique du Bénin - CEB), and they essentially
concern the rehabilitation and maintenance of thermal power plants, the construction of a new dam onthe Mono River, and the evaluation and exploitation of a country's energy resources.
(d) Tourism
37. Sectoral objectives in this area consist, inter alia , in:
- Drawing up a national master plan and regional master plans for the development and
promotion of tourism;
- setting up of tourism promotion services:  national office, consultative committee,
regional council;
- updating the regulatory and tax framework to provide greater incentives and make it
more attractive;
- developing existing tourist sites (renovation, equipment, maintenance, safety,
hygiene) as well as potential sites:  the coastline, lake shores and other sites in Lomé
and in the interior;
- developing human resources in the tourism business and training tourist guides;- enhancing awareness among the different categories of law enforcement services
involved in receiving tourists, ensuring their safety and protecting tourist sites;
- promotion of national and subregional tourism;  in this connection, the first "national
tourism caravan" was recently organized on the occasion of World Tourism Day.  At
the subregional level, Togo has organized, with its partners, the "Entente Tourist
Visa" in the framework of the Entente Council.WT/TPR/G/48 Trade Policy Review
Page 12
(iv) Agriculture
38. The Government's objectives in the field of agriculture consist, inter alia , in:
- Pursuing the liberalization of the various se ctors.  To that end, following the complete
liberalization of the coffee-cocoa sector from primary marketing through to export, in
the cotton sector too exports have begun to be liberalized, with the setting up of the
Société industrielle de coton (SICOT), wh ich gins the cotton and exports the fibre on
its own account;
- setting up a programme to revive the agricultural sector;- setting up rural and cooperative credit funds as well as a village development fund;- improvement of the income and standard of living of the rural population by boosting
productivity and applying a policy of remunerative prices;
- strengthening the physical resources available for agricultural research;- providing institutions with the means to develop, apply and follow up agricultural
policy and programmes;
- intensifying and diversifying production in order to reinforce food security, improve
the nutritional situation, permit import substitution and increase exports;
- ensuring environmentally supportable agricultural growth;
- development of human resources in the agricultural sector;- management and collection of statistical data for use in agricultural planning;- adequate support to the regional agricultural chambers that have been established so
that they can strengthen their role in s upporting farmers alongside the State, which
will, in future, act only as a catalyst;
- introduction of a land-ownership policy which guarantees security of land tenure;
- improvement of storage infrastructure.
(v) Environment
39. In this area, the Government has progressively been taking measures in the framework of the
National Action Plan for the Environment (PANE) with a view to improving the management of the
environment and promoting environmentally sound economic and social development.
40. To achieve this overall goal, environmental policy aims at:
- Strengthening national environmental management capacities through public and
private agencies and non-governmental organizations;Togo WT/TPR/G/48
Page 13
- ensuring that environmental concerns are given due consideration in the planning and
management of economic and social development;
- promoting sound and sustainable development of natural resources and the
environment while improving living conditions and standards;
- strengthening the movement towards subregional integration and international
cooperation in order to ensure coordinated management of shared or cross-border
resources.
41. In the field of trade, in particular, strategies will focus on:
- Drawing up and implementing environmenta l rules and standards aimed at avoiding
the consumption and use of products that are harmful to health and the environment;
- review the price structure of gas to make it accessible to the majority of citizens at
prices comparable to those of neighbouring countries, thereby reducing the pressure
on ligneous resources;
- promoting the consumption of petroleum products that are less harmful to the
environment.
(vi) Industry
42. Together with agriculture and trade, industry represents Togo's long-term economic potential.
43. It is currently limited to the manufacturing sector, which is relatively recent.  Industrial plants
are for the most part concerned with agro-industry, apart from the first phosphate mining plant.
44. After suffering greatly from the political crisis, industry is now tending to pick up once again.
45. To encourage this revival, emphasis will be placed on certain priority measures connected
with:
- Promotion of the private sector and creation of the "Maison de l'industrie" and the
single window;
- development and improvement of industrial infrastructure providing a more
favourable environment for investment both in the tax-free zone and the customs
territory;
- introduction of a regulatory framework providing greater incentives;- institutional support for industrial development structures.
(vii) Mining
46. In addition to the working of phosphate deposits, which play a dominant role in the country's
economy, accounting for approximately 50 per cent of export earnings, Togo is not really a mining
country, despite the existence of significant deposits of iron, chromite, manganese, etc.WT/TPR/G/48 Trade Policy Review
Page 14
47. The main element of the policy to be conducted  with a view to promoting the mining sector
are the following:
- Diversification of mining export products;
- strengthening of the human and physical resources of the General Directorate of
Mining and Geology;
- encouragement of foreign investment by establishing incentives to stimulate
exploration activities in Togo through the introduction of a new mining code;
- promotion of non-industrial mining and by creating incomes for small-scale miners.
(3) TOGO 'S OBJECTIVES IN THE FRAMEWORK OF THE WTO
(i) Togo in the context of the GATT and the WTO
48. After having applied de facto the General Agreement on Tariffs and Trade (GATT) 1947
during the colonial period, Togo became a contracting party, or de jure  member, of the GATT on
20 March 1964.
49. Since it had no representation in Geneva, Togo followed GATT activities at a distance, either
through its ambassadors in one of the countries neighbouring Switzerland, or through its fairly
frequent information missions.
50. In the circumstances, Togo, like the African LDCs  in general, was practically absent from the
Uruguay Round of multilateral trade negotiations, and it did not participate in the formal signing
ceremonies of the Final Act of the Uruguay Round which took place on 15 April 1994 in Marrakesh(Morocco).
51. However, in addition to its general efforts to liberalize economic and trade activities since the
1980s, Togo also signed the Uruguay Round Final Act on 9 August 1994 in Geneva.  Its schedules of
concessions (bindings) and specific commitments in the field of services were drawn up and
transmitted to the WTO in April 1995.
52. Upon presentation of the Uruguay Round Agreement and the WTO framework by the
Minister responsible for trade, the National Assembly deliberated and adopted, on 11 April 1995, the
bill authorizing the ratification of the Agreement Establishing the WTO.  This authorization came into
effect under Law No. 95-013/ER of 19 April 1995 pr omulgating the Agreement.  Through these
formalities, Togo became an original Member of the WTO on 31 May 1995.
(ii) Trade policy objectives of Togo in the framework of the WTO
- Adapt trade regulations and activities to th e requirements of international trade and
take full advantage of the opportunities offered.
- Master and implement its notification obligations.- Conduct a periodic retrospective analysis, at the international level, of its trade policy
which must be adapted to domestic needs in terms of sustainable socioeconomic
development and to the requirements of international trade in the context ofTogo WT/TPR/G/48
Page 15
globalization:  to that end, Togo submitted its request to the WTO for a first trade
policy review, the process which is now under way.
- Take full advantage of the integrated framework for trade-related technical assistance
to the LDCs.  On the occasion of the High-Level Meeting organized by the WTO,
UNCTAD, ITC, UNDP, IMF and the World Bank on 27 and 28 October 1997 in
Geneva for the purpose of designing this framework, Togo prepared and submitted to
the WTO an overall assessment of its general technical assistance needs.  The
above-mentioned international organizations prepared a preliminary documentcontaining integrated replies, and Togo will have to prepare observations concerning
the proposed replies before the round table scheduled to produce an overall
assessment of the needs expressed and the replies given before their implementation:
this process is currently under way.
- Increase familiarity with the Uruguay Round Agreements and the WTO framework in
Togo.  While the Uruguay Round Agreements and the WTO framework are relatively
well known among governmental and para-governmental institutions and in the
private sector in Togo, there is a real need for assistance in ensuring that the Uruguay
Round Agreements are better understood and the WTO better known in the country.A national seminar on the subject will be necessary.
- Hold periodic information seminars on the Uruguay Round Agreement and on the
WTO, and on their implications, their challenges, their advantages and on ways of
reducing the downside risk, in certain cases, and in others of maximizing the chances
of deriving benefits.  A seminar has been requested in this connection, and was
scheduled for February 1998.  However, it has been postponed, and will have to berescheduled.
- Complete the impact assessment of the Uruguay Round Agreements on the Togolese
economy.  Programmed by UNCTAD, this study is currently being conducted by an
international expert and a national expert, a professor in the Faculty of Economicsand Management (FASEG) of the University  of Benin (UB).  This study should make
it possible for Togo to identify the constraints and the advantages of these
Agreements and the ways of managing them by scaling down the challenges and
taking advantage of the opportunities offered.  However, the work is still in a
preliminary stage and the timetable will have to be reviewed.
- Take advantage of the technical assistance provided in respect of access to trade
information through the Internet.  Togo, and in particular the Ministry of Trade, are
now able to use a reference centre on the multilateral trading system following the
installation of a computer and other accessories giving them access to informationsources available on the Internet and CD-Roms.  This assistance is to be strengthened
through the supply of further equipment.
- Take advantage of the "Maison universelle" proposed by Switzerland in the
framework of the WTO Headquarters Agreement in Geneva, whose facilities willhelp the LDCs that wish to keep permanent missions to the international
organizations in Geneva.
- Identify and take advantage of the export and market access opportunities for goods
and services.WT/TPR/G/48 Trade Policy Review
Page 16
- Enhance national skills in managing the Uruguay Round Agreements and in the field
of WTO trade policy in general.
- Put technical assistance to use in identifying the challenges and opportunities of
globalization with a view to overcoming the former and taking full advantage of the
latter.
- Maintain and respect the tariff bindings agreed and the specific commitments made in
the field of services.
(4) IMPORT AND EXPORT REGIME
53. Import and export licences, prohibitions and quotas having been eliminated (see III.(1)(v),
III.(1)(vi) and III.(1)(vii) for details), the import a nd export regime now boils down to the conditions,
procedures and time required for import and export.  These elements relate to banking transactions
and formalities imposed by the port of unloading or shipment, customs and the tax authorities.
54. As regards phosphates still subject to import licensing, conditions and procedures also relate
to banking transactions, the obtention of licences from the Ministry of Trade, and customs and port
shipment formalities.  In such cases, licences are delivered within a period of approximately 48 hours.
55. Since the liberalization of trade in goods, no imports or exports are subject to absolute
prohibition or quantitative restriction.
56. However, the import of products considered hazardous, in particular arms and ammunition,
explosives and military equipment, as well as narcotics, is strictly controlled.
57. These restrictions are justified for security reasons in the case of arms, ammunition,
explosives and military equipment.  In the case of narcotics, they are justified on health, moral and
social grounds.
58. As regards pharmaceuticals and hygiene products, Togo does not prohibit their entry into its
market.
59. There is no list of prohibited products.  However, there are regulated products, such as
psychotropic substances and products that are temporarily prohibited because of their proven toxicity.
60. The export of local industrial products, cereals and other foodstuffs may be temporarily
suspended to safeguard domestic consumption in the event of shortages.
III. TRADE POLICY FRAMEWORK
(1) DOMESTIC LAWS AND REGULATIONS
61. The regulatory framework of trade policy consists of organic texts and regulatory texts.
(i) Organic texts
62. Among the organic texts, it is worth noting Decree 80-184/PR/MCT of 26 June 1980
establishing the responsibilities and organization of the Ministry of Trade.
63. Articles 5 and 6 of this Decree define the responsibilities and organization of the Internal
Trade Directorate and the Foreign Trade Directorate.Togo WT/TPR/G/48
Page 17
64. Also worth mentioning are the organic texts concerning the Ministries and the various
services whose activities relate to trade and which are involved in the formulation and implementation
of trade policy.
(ii) Regulatory texts
65. The regulatory texts cover the various aspects of trade activity and the conditions governing
the exercise of such activity, its institution and its liberalization.
(iii) Introduction and dismantling of state trading monopolies
66. In response to the needs of the 1970s and in order to ensure the regular and equitable supply
of foodstuffs and other staple products at reasonable prices, the Government introduced a state tradingmonopoly under the control of the Société nationale de commerce (SONACOM) by Decree
No. 73/8/SECIPT/DCE/DCIP of 11 June 1973.  SONACOM itself had been created by Decree 72-241
of 29 November 1972.
67. This monopoly was eliminated by Ordinance No.  88/04 of 27 June 1988 on the liberalization
of products under the monopoly of SONACOM, and SONACOM was liquidated.
(iv) Importer's card
68. The importer's card is a document certifying that  an economic operator has been duly
registered, in particular with the Ministry of Trade, the Trade Tribunal, the General Directorate of
Taxes and the Chamber of Commerce, and may engage in import and/or export activities.
69. The importer's card was introduced by Decree  No. 69-223/PR of 17 November 1969 defining
the profession of importer and the conditions under which import entitlements are delivered.
70. The conditions for obtaining this card were updated by Ministerial Decree No. 25/MIC/MEF
of 5 November 1996 laying down the conditions for the delivery of the import/export card and the
shipper's card.
(v) Import authorization and licence
71. The import authorization and licence were also introduced by Decree 69-223/PR of
17 November 1969.
72. The conditions for obtaining them were set out in Interministerial Order No. 7/MCT/MEF of
23 March 1983 laying down the conditions for the delivery of import entitlements.
73. In the context of the liberalization process, Interministerial Decree No. 10/MCT/MEF of
29 May 1989 was issued eliminating import licences and authorizations in general, except in respect
of cement, reinforcing bars, wheat flour and corrugated iron sheets, which were produced andmarketed under the monopoly of State industries.
74. Today, the import and marketing of these products has been liberalized by Circular Note
No. 1023/MCPT/DCE of 17 August 1995.
(vi) Export licensing
75. Export licensing was introduced through Order No. 611-50 AE of 29 July 1950 supplemented
by Order No. 625-50 AE of 3 August 1950.WT/TPR/G/48 Trade Policy Review
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76. As a recent development of the liberalization process, export licensing was eliminated by
category of products.
(a) Local industrial products
77. Interministerial Order No. 2/MCT/MEF of 14  March 1988 eliminated export licensing for
local industrial products and provided for the possible application of safeguard measures in favour of
local consumption in case of shortages.
(b) Cereals and food crops
78. Export licensing for cereals and food crop s was eliminated by Decree 92-092/PM/RT of
10 April 1992, which also provided for the possible prohibition of exports of such products to protect
national consumption in case of shortages.
(c) Cash crops
79. Decree 96-025/PR of 18 March 1996 eliminated licensing and authorization procedures for
cash crops (coffee, cocoa, groundnuts, copra, kapok and shea nuts) and dismantled the monopoly of
the Office des produits agricoles du Togo (OPAT) for the export of these products.  A coordinating
committee for the coffee-cocoa sector, made up principally of economic operators, collectors orexporters of these products, was established by  Interministerial Order No. 17/MCPT/MDRHV of
14 June 1996, while the modalities for collection and export were defined in Interministerial Order
No. 18/MCPT/MDRHV of 14 June 1996.
(vii) Quotas and prohibitions
80. Following a series of regulations concerning import quotas in favour of local industries and
import prohibitions, Circular Note No. 144/MCT/DEC of 7 March 1988 eliminated quotas, and
Ministerial Order NO 11/MCT(MEF of 28 April 1992 eliminated import prohibitions.
(viii) Regulatory framework in respect of taxation
81. This consists principally of Law 83-22 of 30 December 1983 on the General Tax Code (CGI).
This Law was amended by Law No. 85-9 of 14 Ma rch 1985 and the various finance laws since 1986
have progressively amended or supplemented certain provisions of the Code which was recently
updated to take account of the different readjustments.
82. The General Tax Code concerns direct taxes, indirect taxes and various duties.
(ix) Regulatory framework with respect to customs
83. This framework consists essentially of Law No. 66-22 of 23 December 1996 on the Customs
Code.
84. The provisions of the Customs Code concern, inter alia,  the general principles of the customs
regime, the organization and operation of customs services, the transport of goods, customs clearance
operations, special regimes, customs deposit, special operations, the movement and holding of goods
in the customs territory, navigation, the various changes, and disputes.
85. Certain provisions of the Customs Code are elaborated through implementing decrees,
inter alia:Togo WT/TPR/G/48
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- Decree 67-54 of 23 February 1967 on the modalities for the application of the general
regime of release of goods against security and transit;
- Decree 67-51 of 23 February 1967 establishing the modalities for exercising the right
of settlement with respect to customs offences;
- Decree 67-52 of 23 February 1967 laying down the conditions for the implementation
of the temporary admission regime;
- Decree 71-152 of 8 July 1971 amending Decree 67-52 of 23 February 1967.
86. It should be noted that a new customs code has just been adopted by the Council of Ministers
and submitted to the National Assembly.  It includes, inter alia, a revision of the customs tariff.
(x) Regulatory framework with respect to investment
87. The regulatory framework essentially consists of the Investment Code.  Introduced into
Togo's economic system in 1965, this Code is an instrument for the promotion of investment in the
industrial, agricultural, crafts, trade and tourism sectors.  It also includes provisions concerning
investment in free-trade zones.
88. The Investment Code generally brings together three economic agents - Government,
economic operators and consumers – and seeks to benefit each of the three in some way.
89. In order to ensure that this triple objective is achieved efficiently, the Code is periodically
revised.
90. Following the revisions of 1973 and 1978, the following laws were adopted:
- Law No. 85-03 of 29 January 1985 on the re organization of the Investment Code
supplemented by Law 85-02 of 29 January 1985 on the Togolese business charter;
- Law No. 89-22 of 31 October 1989 on the Investment Code.
91. From the institutional point of view, the National Investment Company (Société nationale des
investissements – SNI) was created in 1970 for the purpose of promoting investment.  It is currently
being transformed into the National Investment Bank (Banque nationale des investissements – BNI).
92. In addition, investment strategies are currently being harmonized in the framework of the
WAEMU.
93. Provisions relating to investment in free-trade areas are chiefly contained in Law 89-14 of
18 September 1989 concerning the status of the export processing zone and Decree No. 90/40 of
14 April 1990 issued pursuant to Law No. 89-14.
94. They concern eligibility, obligations, benefits and approval procedures.
(xi) Regulatory framework with respect to regional integration
(a) Regional integration measures in the framework of ECOWAS
95. These are mainly:WT/TPR/G/48 Trade Policy Review
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- Decree 89-29 of 28 February 1989 concerning the implementation of the trade
liberalization scheme for products originating within ECOWAS;
- Interministerial Order No. 281/MEF/MCT of 28 May 1989 on the implementation of
Decree 89-29 of 28 February 1989;
- Decree 90-55 of 23 April 1990 supplementing Decree 89-29 of 28 February 1989;
- Interministerial Order No. 003-MC-MCT of 28 June 1990 on the application of
Decree 90-55 of 23 April 1990.
96. The ECOWAS trade liberalization scheme provides for the elimination of non-tariff barriers
and exemption from the fiscal import duty and the statistical tax on imports into and exports from the
national customs territory for local specialities  and handicrafts from within the community.
(b) Measures favouring regional integration in the WAEMU framework
97. These include in particular the introduction of the single rate of VAT of 18 per cent and the
60 per cent reduction in the fiscal import duty and the statistical import tax on industrial products
approved since 1977.  The reduction is 5 per cent for industrial products that have not been approved.
The common external tariff will come into force on 1 January 1999.
98. In addition, a community solidarity levy (PCS) of 0.5 per cent of the c.i.f. value of goods
imported from third countries has also been introduced.
(xii) Regulatory framework with respect to transit
99. Principally worth noting in this respect is Decree 83-62 of 11 April 1983 on the regulation of
the profession of customs agent.
(2) INSTITUTIONAL FRAMEWORK AND THE PROCESS FOR FORMULATING TRADE POLICIES
(i) Institutional framework
100. The Ministries responsible for industry, trade, the development of the free zone, planning,
economic affairs, finance, privatization, mining, public works, transport, post andtelecommunications, foreign affairs and cooperation, tourism and leisure, rural development, the
environment and forestry resources are responsible for the formulation, implementation and
monitoring of trade policies.
101. Coordination is provided by the Ministry of Planning within the context of the country's
general policy for economic and social development.
102. The Ministry of Economic Affairs and Finance is responsible for the formulation and
implementation of fiscal and tariff measures, while the Ministry of Industry and Trade is responsible
for formulating and monitoring the application of trade policy measures relating to the export and
import of goods and services and to prices and competition.  It carries out this task in conjunction with
the departments concerned.
103. The private sector contributes to the formulation and implementation of trade polices.
104. At the formulation stage it contributes through its involvement in discussions and analysis at
seminars, symposiums and round tables on topics of an economic and commercial nature.Togo WT/TPR/G/48
Page 21
105. In addition, acting through the Chamber of Commerce and Industry of Togo (Chambre de
commerce et d'industrie du Togo (CCIT)), the Association of Importers and Exporters of Togo
(Syndicat des commerçants importateurs et exportateurs du Togo (SCIMPEXTO)) and the National
Employers' Council (Conseil national du patronat (CNP)), it provides a critical analysis of regulatory,
administrative, fiscal and customs measures and procedures and makes proposals for improving the
conditions under which economic operators carry out economic and commercial activities.
106. At the implementation stage, the private sector is the main agent in carrying out trade policies,
since it is involved in production, importing, exporting and marketing and must, therefore, operate in
conformity with regulatory, fiscal, tariff and other measures.
(ii) Legislative process for formulating trade policies
107. The Togolese Constitution, promulgated on 14 October 1992, assigns a large role to
collaboration between the executive and the legislature in the economic field, resulting in the adoption
of laws, some of which directly regulate commercial matters.
108. At the national level this is done through a draft law, which is a Government initiative,
prepared by one or more of the ministers concerned and transmitted to the Secretary-General of the
Government to be included for discussion on the agenda of the Cabinet Council and of the Council of
Ministers.  Following the Government's deliberations  the text is tabled before the National Assembly
by the Secretary-General of the Government.
109. On the other hand, a proposed law, which is a parliamentary initiative, is tabled directly
before the National Assembly and is then submitted to a joint meeting of the chairmen, who assess its
admissibility before it is formally announced in plenary session.
110. Draft laws or proposed laws, once they have been announced in plenary session, are then
assigned for examination either to a standing committee or a special committee consisting of several
standing committees.  According to the particular case and the nature of the text, it may be referred to
another committee for advice.
111. Examination of a proposed law in the National Assembly is carried out in the presence of its
sponsor, while in the case of a draft law it is the Minister(s) concerned who speak on its behalf,
assisted by Government commissioners.
112. Trade policy may also be formulated by means of ordinances, decrees and orders.
113. At the international level it is, in accordan ce with the Constitution, the President of the
Republic who negotiates, signs and ratifies bilateral and multilateral trade agreements.  However,high-level plenipotentiaries may be mandated to act on his behalf during the first two stages.
114. According to the Togolese Constitution intern ational commitments can only be ratified by
means of a law.  Thus, treaties and international agreements, once signed by States, are deposited
before the National Assembly accompanied by a draft law authorizing their ratification and by an
explanatory text.  Such authorization is obtained in accordance with the normal legislative process,except for a few minor variations.
115. Thus, the National Assembly cannot vote on international instruments article by article and
nor can it formulate amendments.  It is limited to either authorizing ratification, or rejecting the draft
law or adjourning the discussion;  in the last two cases it is obliged to provide reasons for its actions.WT/TPR/G/48 Trade Policy Review
Page 22
(3) MAIN BILATERAL , REGIONAL , MULTILATERAL AND PREFERENTIAL TRADE AGREEMENTS
(i) Bilateral agreements
116. The table below sets out some of Togo's bilateral trade agreements.
Country Coverage Year
AFRICA
Algeria Trade April 1976
Benin Electric community
Air transport
Road transportJuly 1968
July 1979
October 1979
Burkina Faso Air transport
Road transport
TradeApril 1984
April 1984
April 1984
Cameroon Air transport March 1977
Congo (Democratic Republic of the) Trade March 1989
Congo (Republic of the) Trade June 1986
Egypt Trade June1965
Ethiopia Air transport and services April 1962 - August 1989
Gabon Trade June 1975
Ghana Trade March 1973
Guinea Air transport March 1981
Libyan Arab Jamahiriya Agriculture and fishing January 1977
Mali Air transport
Maritime transport and transit
Road transportTradeAugust 1977
August 1983
August 1983December 1987
Mauritania Trade August 1977
Niger Air transport
Road transportFebruary 1980
February 1975
Nigeria Trade
Air transport
PetroleumJuly 1969
April 1966
April 1966
Senegal Trade December 1965
Tunisia Trade October 1977
ASIA
China Trade March 1984
Democratic People's Republic of Korea Trade September 1984
Israel Trade July 1961
Japan Trade October 1963
EUROPE
Bulgaria Trade June 1962
Czechoslovakia Trade April 1982
France Cooperation and trade January 1964
Germany Trade July 1960
Poland Trade June 1962
Romania Trade November 1975
Russia (former Soviet Union) Trade June 1961
Switzerland Trade September 1963
Yugoslavia Trade July 1961
(ii) Regional agreements
117. Togo is a founder member of the following regional organizations and, consequently,
signatory to the charters, conventions, treaties and agreements linking the States concerned.
118. The Organization of African Unity (OAU) , whose charter was signed in Addis Abéba
(Ethiopia) in 1963.
119. The African Economic Community (CEA) , whose treaty was signed in Abuja (Nigeria) in
June 1991.Togo WT/TPR/G/48
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120. The Economic Community of West African States (ECOWAS) , which was created in
May 1975 with the aim of establishing a customs union between the 16 member States.  It is intended
to promote cooperation and development in all fields of economic activity, increase and sustain
economic stability, strengthen relations between the members of the Community and contribute to theprogress and development of the subregion.
121. It has established and promotes a programme of trade liberalization involving exemption from
duties on local goods and a process to liberalize trade in industrial products.
122. The Conseil de l'Entente :  it was founded in May 1959 by Benin, Burkina Faso,
Côte d'Ivoire, Niger and Togo with the aim of promoting political solidarity among the Statesmembers.  It consequently established a mutual assistance and loan guarantee fund in order to extend
to the economic, commercial and financial fields the political solidarity that had originally brought the
five member States together.
123. The West African Economic and Monetary Union (WAEMU) :  it was established in
March 1994 in Dakar by member States convinced of the need to extend to economic affairs thesolidarity already linking them in the monetary field within the West African Monetary Union
(WAMU)
124. The main objectives of the WAEMU are:
- To strengthen the competitiveness of economic and financial activities in member
States within an open and competitive market with a rationalized and harmonizedlegal structure;
- ensure convergence in the performance and economic policies of member States
through the establishment of a multilateral supervisory system;
- to create between the member States a common market based on the free movement
of persons, goods, services and capital and the right of establishment of self-
employed persons or of employees, as well as a common external tariff and a
common trade policy;
- to coordinate national sectoral policies through the implementation of common
actions and, possibly, of common policies, in particular in the following areas:
human resources, urban and regional pla nning, transport and communications, the
environment, agriculture, energy, industry and mines, and tourism;
- to harmonize legislation in member States, in particular, with regard to investment,
taxation and customs.
125. The Common African and Mauritanian Organization (OCAM) .
126. The Organization for the Harmonization of Business Law in Africa (OHARDA) .
(iii) Multilateral agreements
127. A contracting party of GATT since 20 March 1964, Togo became a founding Member of the
World Trade Organization on 31 May 1995.WT/TPR/G/48 Trade Policy Review
Page 24
128. Togo is a member of the United Nations and of its specialized agencies and institutions, as
well as of other international organizations, such as the World Bank and the International Monetary
Fund.
129. Togo is also a member of the International Coffee Agreement and the International Cocoa
Agreement.
(iv) Preferential agreements
130. Togo is a contracting party of the conventions and agreements signed within the framework
of North-South Cooperation under the ACP-EEC Convention (subsequently the ACP-EU
Convention), which links the states of Africa, the Caribbean and the Pacific to the EuropeanEconomic Community (now the European Union) a nd which is more generally known under the name
of the "Lomé Convention".
131. Consequently, Togo benefits, as a general rule, from the preferences provided for under the
Lomé Conventions.
IV. IMPLEMENTATION AND EVALUATION OF TRADE POLICY
(1) 
MEASURES AFFECTING IMPORTS
(i) Customs duties and other taxes and charges
132. Such taxes include:
- The Import Fiscal Duty (DFE):  it is calculated on the c.i.f. value of import;  three
different rates at 5 per cent, 10 per cent and 20 depending on the particular case havebeen applied since 1997;
- the Import Statistical Tax (TSE):  it is paid on the c.i.f. value of imports at a rate of
3 per cent;
- the Customs Stamp (TD):  it is calculated at a rate of 4 per cent on the basis of taxes
previously paid in the absence of the DFE;
- Value Added Tax (VAT):  it is calculated at a rate of 18 per cent on the basis of the
c.i.f. value of imports plus upstream duties and taxes;
- the Business Profits Tax (BIC) and the Corporation Tax (IS):  they are calculated at
rates of one per cent for registered persons and five per cent for others on the c.i.f.
value, plus, upstream duties and taxe s, of imports from outside WAEMU;
- the Community Solidarity Levy (PCS), calculated at a rate of 0.5 per cent on the c.i.f.
value of imports from outside WAEMU;
- the Community Levy (PS) calculated at a rate 0.5 per cent on the c.i.f. value of
imports from outside ECOWAS;
- apart from ECOWAS and WAEMU, Togo does not apply preferential tariffs;- Togo applies duty-free treatment in implementation of the Vienna Conventions and
domestic legislation;Togo WT/TPR/G/48
Page 25
- petroleum products, except for lubricants, are subject to specific duties.
(ii) Prohibitions, quotas and quantitative restrictions
133. These have been abolished as part of the shift towards the general liberalization of economic
and commercial activities (see III.1(vii)).
(iii) Import licences
134. These have also been abolished as part of the process of liberalization (see III.1(v)).
(iv) Customs valuation of imports
135. Customs valuation is carried out on the basis of the provisions of Article 19 of the Customs
Code and in accordance with the Brussels definition of value (DVB).
136. Inspection of declared values is carried out:
- By reference to the classification of values drawn up by COTECNA for products and
made available to inspectors;
- by reference to the domestic market price after deduction of equivalent import duties
and taxes and other charges or by reference to world prices.
(v) Rules of origin
137. The rules of origin applied in Togo do not vary according to goods and countries;  they only
vary according to economic groupings.  There are different rules of origin within ECOWAS,
WAEMU and the GSP.
(vi) Standards
138. Systems of standardization and quality control operate on the basis of texts establishing
institutions and regulations that date from the colonial period, some of which are now out of date and
need to be replaced.  However, these systems draw  their inspiration from internationally recognized
conventions and standards.
139. The Standardization Council (an interministerial body) is responsible for the establishment,
testing and approval of standards.  Technical committees have been established within the
Standardization Council for the task of establishing standards and tests for each sector.
140. National standards are in conformity with re gional and international standards on which they
are sometimes modelled.
141. The Standardization Council was set up by Decree No. 83-118 of 21 June 1983, while the
procedures for approving standards were established by Order No. 027/MISE/CAB of
28 November 1990.WT/TPR/G/48 Trade Policy Review
Page 26
(2) MEASURES AFFECTING EXPORTS
(i) Regulations, quantitative restrictions and quotas
142. In general, exports have been liberalized by category of goods (see III.1(vi)).
143. Togo does not apply quantitative restrictions or quotas to exports.  However, the export of
locally produced industrial goods, cereals and other foodstuffs may be provisionally suspended in
order to protect domestic consumption in times of shortage (see III.1(vi)).
(ii) Export taxes and duties
144. The tax regulations include no export taxes.  The only exception is the statistical tax on the
indivisible tonne of F 72,000 (coffee, cocoa and cotton) and of F 1,000 (phosphates), which was
introduced under the Finance Law for 1994, but it has since fallen into disuse (in the case of coffee,
cocoa and cotton) or been abolished (in the case of phosphates).
145. No customs tax is levied on exports;  only a declaration and a data-processing fee of F 1,500
are required.
146. No taxes are levied on transit operations to the land-locked countries of the Sahel, except for a
statistical tax of 3 per cent on the indivisible tonne and a customs stamp at 4 per cent on the duties
already paid.
(iii) Free zones and industrial zones
(a) Free zones
147. Togo has an export-processing free zone established under Law No. 89-14 of
18 September 1989;  in fact, this is a special status granted by the Government to an enterprise located
on the national territory.  Free zone status is also granted to demarcated and enclosed zones containing
several enterprises operating under this regime.
148. The Togo free zone includes industrial enterprises whose finished products are exported.  It
also includes export-oriented service enterprises.
149. The investors that have already set up operations in the Togo free zone include not only
national enterprises, but also a larger number of foreign enterprises from all corners of the world.
150. The conditions for granting approval are the same for Togo nationals and foreigners.  The law
establishing the free zone contains no discriminatory provision against foreigners.
151. The advantages of the free zone include:
- Total exemption from all customs duties and taxes throughout the life of the
enterprise;
- exemption from corporation tax for the first ten years and then payment at the rate of
15 per cent from the 11th year onwards;  the normal rate within the country is 40 per
cent for trade and 37 per cent for industry;
- payment of the payroll tax at the rate of 2 per cent from the start-up of the enterprise.
The normal rate on the customs territory is 7 per cent.Togo WT/TPR/G/48
Page 27
152. The main condition for an enterprise to obtain  approval to operate in the free zone is to
guarantee the export of the whole of its production or at least 80 per cent of such production.
(b) Industrial zones
153. In order to promote and develop small-scale and medium-sized industries, two industrial
estates have been created at Lomé and at Kara for the location of industrial enterprises.  The
advantages accorded to industrial entrepreneurs within these estates include facility of access to
factory sites provided with basic facilities such as electricity, water and telecommunications.
(iv) Export subsidies and aid
154. With regard to customs, there are no subsidies or specific aids to exports.
155. With regard to taxation, export aid consists in granting tax exemption on the basis of the
relevant taxes:
- Under the General Taxation Code the export of tangible personal property is exempt
from VAT.  The same applies to operations which are treated in the same way asexports and are specifically listed as such;
- companies approved under the regime for export-processing free zones are exempt
from all taxes (corporation tax (IS), VAT, IMF;  the professional tax, registration and
stamp duties etc) under Law No. 89-14 of 18 September 1989;
- companies approved under the Inve stment Code under Law No. 89-22 of
31 October 1989 also receive exemption on a portion of their profits for the
calculation of corporation tax (IS) and on a portion of their turnover for the
calculation of the IMF due in the financial year, which is equal to the proportion of
the turnover exported in the course of the said financial year as compared with the
enterprise's global turnover excluding VAT.
156. However, this proportion of the turnover exported may not exceed 75 per cent of the global
turnover.  This last provision applies to all exporting enterprises.
(v) Promotion of exports
157. The Ministry of Trade, the Directorate of Foreign Trade, the Directorate of Industrial
Development, the Service for the Packaging of Goods , the Lomé International Fair, the Society for the
Administration of the Free Zones (SAZOF), the Chamber of Commerce and Industry of Togo, the
Togolese Cotton Company (SOTOCO), the Togolese Phosphates Office (OTP) and the Coffee-Cocoa
Coordinating Committee are the national institutions responsible for promoting exports.
158. Current efforts to promote exports come under the Action Programme for the Development of
the Foreign Trade of Togo (PADCET).  This Programme is part of the macroeconomic structure
established by the Government to develop the country and is covered by the Togo Project/95/A/03/89
entitled UNDP Multisectoral Assistance to Togo.
159. This Programme is intended to highlight the country's potentialities for production and export
and indicate the concrete measures that need to be carried out so as to exploit these potentialities aseffectively as possible, and diversify and increase production.  It is also intended to establish a
strategy for the development and promotion of fo reign trade, which defines the institutional,WT/TPR/G/48 Trade Policy Review
Page 28
regulatory and legislative framework and determines the means that will enable Togolese private
sector enterprises and Togolese farmers to exploit more fully export potentialities.
160. The broad outlines, objectives and priorities of this Action Plan have already been described
in general terms in sections II(1)(ii) and II(3)(ii).
161. In practice, the means used to promote investment in general and exports in particular are:
- High-level missions abroad at which senior Togolese officials publicize the country's
potentialities and advantages at "open doors on Togo" days;
- promotional activities abroad by the vari ous institutions responsible for exporting
Togolese products;
- publication in various forms of promotional articles, etc;
- the operations of the SNI;- organization of fairs and participation in international fairs;- quality control, standardization and certification.
(3) 
MEASURES AFFECTING PRODUCTION AND TRADE
(i) State-owned enterprises and the privatization process
162. As part of its policy of reducing State intervention in the production sectors, developing the
private sector and improving the management, production and marketing of goods and services, theGovernment, by means of Ordinance No. 94-002 of  10 June 1994, established the procedures under
which the State and other legal persons of public law would withdraw from these sectors.
163. The privatization process takes place according to the following regimes:  delegation of
management, disposal of equity, leasing, transf er of shares, transfer of assets, winding up,
privatization by transfer of shares.
164. Thus several enterprises have been privatized under one or other regime and the process is
continuing.  In addition, four enterprises:  Ciments du Togo (CIMTOGO), Brasserie du Bénin (BB),
Société industrielle du Togo (SIT) and Société générale des moulins du Togo (SGMT) have recently
been privatized by the transfer of State-owned share capital and seven others have been wound up:
Office des produits agricoles du Togo (OPAT), So ciété d'étude et de développement (SOTED),
Société immobilière du Togo (SITO), Société togo laise de navigation mari time (SOTONAM), Société
nationale des palmiers à huile (SONAPH), TOGOGRAIN and Unité de production de matériels
agricoles (UPROMA).
165. Furthermore, the procedures for the disposal of equity of OTP and of transfer of the
remaining State shares in TOGOGAS are proceeding.
166. As far as the State-owned hotels are concerned, in 1997 the Government invited bids with a
view to transferring their ownership.  Thus, the asse ts of two hotels have been respectively transferred
and leased and the formalities are now under way for other hotels.
167. With regard to those enterprises that will remain in State-ownership (Caisse nationale de
sécurité sociale (CNSS), Port autonome de Lo mé (PAL), Société des postes du Togo (SPT),Togo WT/TPR/G/48
Page 29
Compagnie énergie électrique du Togo (CEET), Régie nationale des eaux du Togo (RNET)), they will
be regularly subject to financial audits as a means of monitoring their management on a permanent
basis.
168. As part of the trend towards privatization, the Ministry of State-Owned Companies has been
abolished and responsibility for the privatization process has been given to the Ministry of Finance
under the terms of Decree No. 98-035/PR of 18 February 1998 on the composition of the
Government.
(ii) Investment strategies
169. They were defined in Law No. 89/22 of 31 Oc tober 1989 on the Investment Code and in Law
No. 89-14 of 18 September 1989 on the status of the export-processing free zone, and its
implementing Decree, No. 90-40 of 14 April 1990.
170. These texts set out the technical and financial conditions for eligibility, the procedures for
obtaining approval and the administrative, customs, fiscal and other advantages.
171. The practices described in the last paragraph of section IV.2(vi) also come within the scope of
the investment promotion strategy.
(iii) Government procurement
172. Government procurement is governed by Ordinance No. 93-006 of 4 August 1993
establishing the government procurement code.  Consultations to improve practices and procedures in
this field and to decentralize the national procurement commission are now taking place.
173. Purchases and works carried out on behalf of the State, State-owned enterprises and local and
regional authorities therefore follow the procedures for national or international tendering according
to the provisions of the above-mentioned ordinance.  Certain low-cost purchases and works may be
carried out by means of single tendering.
(iv) Competition legislation
174. Ordinance No. 17 of 22 April 1967 governing commercial activities in Togo contains
provisions on competition.  However, the draft law regulating competition in Togo was recently
adopted by the Government on 4 February 1998 and will follow the normal legislative procedure for
coming into force.  It will thus replace Ordinance No. 17, which has been largely deprived of its
relevance by the liberalization measures.
(4) POLITICAL NEEDS AND OBJECTIVES WITH REGARD TO THE ECONOMY AND DEVELOPMENT
175. These needs and objectives have been described in sections II.1, II.2 and II.3.
(5) THE FOREIGN TRADE ENVIRONMENT AND PROBLEMS ENCOUNTERED IN FOREIGN
MARKETS
(i) The foreign trade environment
176. Togo is a member of international organizations concerned with trade, namely the World
Trade Organization (WTO), the United Nations Conference on Trade and Development (UNCTAD),
the International Trade Centre (ITC), the Inte rnational Coffee Association (ICO), the ACP-EU
Convention, etc.  However, against a background of globalization and liberalization, Togo like otherWT/TPR/G/48 Trade Policy Review
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LDCs is a potential victim of the dangers of marginalization and exclusion inherent in the new
international trading system.
(ii) Problems encountered in foreign markets
177. The main problems concern access to the markets of the industrialized countries in general,
arising from problems of competitiveness in terms of quantity, quality and standards and from thelack of information about foreign outlets.
178. In addition, although Togo receives preferential treatment in the EU market under the
ACP-EU conventions and also from other countries that grant preferences, these preferential
advantages have been called into question on account  of the broader application of the most-favoured-
nation clause under the Uruguay Round Agreements.
V. CONCLUSION
179. Thus, Togo's trade policy forms part of the Government's policy for the economic and social
development of the country.
180. Through its various aspects, it seeks to make a substantial contribution to attaining the overall
objectives of providing good governance, combatting poverty and achieving integration into the new
global economic context currently being shaped, with a view to the sustainable socioeconomic
development of the country.
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