MOREPRESS RELEASE
PRESS/TPRB/158
21 February 2001
(01-0894)
TRADE POLICY REVIEW BODY
REVIEW OF MADAGASCAR
TPRB'S EVALUATION
The Trade Policy Review Body of the World Trade Organization (WTO) concluded its first
review of Madagascar on 19 and 21 February 2000. The text of the Chairperson's concluding remarks
is attached as a summary of the salient points which emerged during the discussion.
The review enables the TPRB to conduct a collec tive examination of the full range of trade
policies and practices of each WTO member countries at regular periodic intervals to monitor
significant trends and developments which may have an impact on the global trading system.
The review is based on two reports which are prepared respectively by the WTO Secretariat
and the government under review and which cover all aspects of the country's trade policies, including
its domestic laws and regulations, the institutio nal framework, bilateral, regional and other
preferential agreements, the wider economic needs and the external environment. A record of thediscussion and the Chairperson's summing-up together with these two reports will be published in due
course at the complete trade policy review of Madagascar and will be available from the WTO
Secretariat, Centre William Rappard, 154 rue de Lausanne, 1211 Geneva 21.PRESS/TPRB/158
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MORESince December 1989, the following reports have been completed: Argentina (1992 and 1999),
Australia (1989, 1994 and 1998), Austria (1992), Ba hrain (2000) Bangladesh (1992 and 2000), Benin
(1997), Bolivia (1993 and 1999), Botswana (1998), Brazil (1992, 1996 and 2000), Burkina Faso
(1998), Cameroon (1995), Canada (1990, 1992, 1994, 1996, 1998 and 2000), Chile (1991 and 1997),
Colombia (1990 and 1996), Costa Rica (1995), Cô te d’Ivoire (1995), Cyprus (1997), the Czech
Republic (1996), the Dominican Republic (1996), E gypt (1992 and 1999), El Salvador (1996), the
European Communities (1991, 1993, 1995, 1997 and 2000), Fiji (1997), Finland (1992), Ghana
(1992), Guinea (1999), Hong Kong (1990, 1994 and 1998), Hungary (1991 and 1998), Iceland (1994
and 2000), India (1993 and 1998), Indonesia (1991, 1994 and 1998), Israel (1994 and 1999), Jamaica
(1998), Japan (1990, 1992, 1995,1998 and 2000), Keny a (1993 and 2000), Korea, Rep. of (1992, 1996
and 2000), Lesotho (1998), Macau (1994), Madagascar (2001), Malaysia (1993 and 1997), Mali
(1998), Mauritius (1995), Mexico (1993 and 1997) , Morocco (1989 and 1996), Mozambique (2001),
New Zealand (1990 and 1996), Namibia (1998), Nica ragua (1999), Nigeria (1991 and 1998), Norway
(1991, 1996 and 2000), Pakistan (1995), Papua New Gu inea (1999), Paraguay (1997), Peru (1994 and
2000), the Philippines (1993 and 1999), Poland (1993 and 2000), Romania (1992 and 1999), Senegal
(1994), Singapore (1992, 1996 and 2000), Slovak Republic (1995), the Solomon Islands (1998),
South Africa (1993 and 1998), Sri Lanka(1995), Swaziland (1998), Sweden (1990 and 1994),
Switzerland (1991, 1996 and 2000 (jointly with Liechtenstein), Tanzania (2000), Thailand (1991,1995 and 1999), Togo (1999), Trinidad and Tobago (1998), Tunisia (1994), Turkey (1994 and 1998),
the United States (1989, 1992, 1994, 1996 and 1999) , Uganda (1995), Uruguay (1992 and 1998),
Venezuela (1996), Zambia (1996) and Zimbabwe (1994).PRESS/TPRB/158
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MORETRADE POLICY REVIEW BODY
REVIEW OF MADAGASCAR
CONCLUDING REMARKS BY THE CHAIRPERSON
We have had a thorough and constructive discussion of the trade policies of Madagascar.
Members were impressed by Madagascar's recent strong economic performance, which they
attributed to the strengthening of its market-orien ted reforms, including trade liberalization.  Members
commended Madagascar on its interim Poverty Reduction Strategy Paper (PRSP) and soughtclarification on the mainstreaming of trade in the PRSP.  They noted that Madagascar's debt relief
under the HIPC initiative would further assist its macroeconomic situation.  Some concern was
expressed about the pace of the privatization process and about restrictions on land ownership, which
were negatively affecting foreign direct investment, particularly in the tourism subsector.  Members
encouraged Madagascar to continue the reform proce ss so as to allow it to fully benefit from its rich
resource base and enormous potential.
Members appreciated Madagascar's active participation in the multilateral trading system.
Some Members urged Madagascar to join them in their support for the launch of a new round of
multilateral trade negotiations.  Members called upon Madagascar to improve commitments under theGATS, particularly in areas such as telecommunications, transportation and tourism, and to meet its
WTO notification requirements.  Members expressed hope that a revitalised Integrated Framework, in
which Madagascar would be an early participant, would yield beneficial results in meeting
Madagascar's technical assistance needs and its multilateral commitments.  Members were supportive
of Madagascar's initiatives towards regional and bilateral agreements to expand its trade, but urged
Madagascar to ensure that such agreements remain ed consistent with the multilateral trading system.
Members urged Madagascar to strengthen its domestic process of trade policy coordination
and were encouraged by Madagascar's intention to establish a national committee on WTO matters.
Members commended Madagascar's reduction of import duties, although it was acknowledged that
Madagascar might encounter problems of policy coherence given other recommendations to
maximize revenue from import levies.  Some concern was expressed about the high level and varietyof additional import taxes.  Suggestions were made that Madagascar increase the number of its tariff
bindings on non-agricultural products.  Members noted that Madagascar had just adopted the WTO
provisions on customs valuation and inquired about implementation difficulties it might face.
Questions were raised about pre-shipment inspection, quantitative restrictions on imports of products
such as vanillin and precious stones, and about export promotion, including the export processingzone and export credit.
Members noted that Madagascar's economic performance had suffered somewhat because of
its significant reliance on the agricultural sector which had faced serious climatic difficulties.  In
addition, some Members pointed out that Madagascar's agricultural exports could be expanded ifmarkets were more open in developed countries.  Noting that aquaculture was expanding rapidly in
Madagascar, Members inquired about measures taken by Madagascar following the prohibition by
foreign countries of some of its exports, mainly shrimp, on sanitary grounds.  There was also
recognition that Madagascar might further exploit non-reciprocal preferential treatment provided by
developed countries to expand its exports if it improved its infrastructure and the competitiveness ofits manufactured products, mainly textiles.PRESS/TPRB/158
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Members also sought further clarification on a number of issues, including:
• government procurement and eventual participation by Madagascar in the Plurilateral Agreement
on Government Procurement;
• adoption of new competition legislation;
• implementation of the TRIPS agreement in January 2006;
• legislative and structural reforms in the mining and energy sector;  and
• structural reforms in the services sector, especially in banking and insurance services.
Members appreciated the responses provided by the delegation of Madagascar to most
questions raised during the meeting.
In conclusion, it is my view that this Review has given Members an opportunity to better
understand the economic challenges facing Madagascar.  Members were encouraged by Madagascar's
economic performance and were optimistic about its economic prospects.  Members encouraged
Madagascar to maintain both the pace and the direction of its reforms, and urged that its bilateral andregional arrangements be WTO-consistent.  In my personal capacity, I advocate that all Members
support Madagascar in its efforts.  In this respect, we should pay particular attention to Madagascar's
request to the Membership for technical assistance.
END