Togo WT/TPR/S/48
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II. TRADE AND INVESTMENT REGIMES
(1) INSTITUTIONAL FRAMEWORK
1. Togo has been an independent Republic since 27 April 1960.  The Constitution of the Fourth
Republic (that in force at present) was adopted on 27 September 1992 by referendum and
promulgated on 14 October 1992.  Under the provisions of the Constitution, Togo is a lay and
democratic State subject to the rule of law.  The President of the Republic is the Head of State.  He iselected by direct universal suffrage for a term of five years renewable only once.  Holder of executive
power, the President establishes the broad outlines of State policy and appoints the Prime Minister
and the other members of the Government.
2. The National Assembly exercises legislative power and controls the activities of the
Government;  it votes the laws, including financial laws.  The deputies are elected by direct universalsuffrage for five years and may be re-elected.  The President of the Assembly is elected for the
duration of the legislative term.  The Economic and Social Council is responsible for giving its advice
on all matters brought to its attention by the President of the Republic, the Government, the National
Assembly or any other public institution.  It must be consulted on every draft plan, programme or
instrument having an economic and social character.
3. The judicial organization in Togo dates from 1978.
1  The judicial power is independent of the
legislative and executive powers.  The Constitutional Court is the country's highest court.  It is made
up of seven members, two of whom are elected by the National Assembly, one appointed by the
President of the Republic, one by the Prime Minister and a judge, a lawyer and a lecturer from the
faculty of law, each of them elected by his peers.  The President of the Constitutional Court is elected
by the members of the Court for a term of three years and may be re-elected.  The Court judges the
constitutionality of laws and guarantees the fundamental rights of individuals and public liberties.
4. Composed of the Judicial Chamber and the Administrative Chamber2, the Supreme Court has
the highest jurisdiction in these matters.  Its President is appointed by a decree of the President of the
Republic and the Prime Minister, on the proposal of the Supreme Council of Justice.  There is no
appeal against decisions by the Supreme Court.  They are binding on the public authorities including
every administrative and judicial organ.  The Appeals Court hears appeals from decisions by thecourts of first instance in civil, trade and social matters.  It is composed of three chambers:  the Civil
Chamber, the Commercial Chamber and the Administrative Chamber.  It acts as an Assize Court in
criminal matters.  The Court of Audit considers the accounts of the national public accountants and
audits the accounts and management of public establishments and enterprises.  It also helps the
Parliament and Government to supervise and implement the financial laws.  Lastly, two specializedcourts deal with specific matters:  the Labour Court and the Juvenile Court.  Togo has no trade court;
the traditional courts deal with economic matters.
3
(2) FORMULATION AND IMPLEMENTATION OF POLICIES
5. The Government formulates and executes policies.  Each Minister formulates policies in his
area of competence and initiates the draft bills which he presents to the Cabinet Meeting (presidedover by the Prime Minister) and Council of Ministers (presided over by the Head of State).  Once
adopted by the Council of Ministers, the draft bill becomes a bill and is transmitted to the National
                                                     
1 Ordinance No. 78-35 of 7 September 1978.
2 The Administrative Chamber was not yet in operation in March 1998.
3 In view of the inadequacies of the judicial syst em, most disputes (particularly trade ones) are settled
amicably, with or without resort to a bailiff.WT/TPR/S/48 Trade Policies Review
Page 16
Assembly. The bill is considered by the competent committee and then discussed in plenary by the
Assembly.  Adopted after a debate by the Assembly, the bill becomes law once it is promulgated by
decree of the Head of State.  Bills rejected by the Assembly are returned to the Government for
amendment where necessary.  Initiative for legislation can also come from the National Assembly
(private bills).
6. The Government can, for the execution of its programmes, request the National Assembly to
vote an act authorizing it to take, by ordinance and for a limited period of time, steps which are
normally within the field of legislation.  Such ordinances enter into force immediately they arepublished, but lapse if the ratification bill is not submitted to the Assembly before the date fixed by
the enabling act.
7. Changes in the rates of the customs tariff are also within the competence of the legislature.
Proposals for new rates, prepared by the Ministry of Finance (Directorate-General of Customs) are
submitted (accompanied by the reasons) to the Go vernment which then transmits them to the
Assembly for consideration and adoption of the act to amend the customs tariff.  The amended tariff
enters into force after promulgation (by the Head of  State) and publication of the act.  However, the
Minister of Finance can, on a proposal, complete with justification, by the Director-General of
Customs, amend the tariff by decree;  any such amendment must by confirmed by an act at the
following parliamentary session.
8. International treaties and agreements are negotiated by the competent  Ministers, signed by
the Head of State or by a high-level plenipotentiary, and promulgated (by decree) by the Head of
State.  Treaties and agreements once regularly ratified or approved have, from the moment of their
publication, an authority superior to that of domestic laws, with the proviso that they must be applied
by the other contracting parties.  Treaties of peace and trade, treaties or agreements concerning
international organizations, those that commit the State finances or modify legislative provisions, and
those which relate to the status of persons or which involve the cession, exchange or addition ofterritory, cannot be ratified or approved except by an act.  The WTO Agreement was ratified in
accordance with this procedure.
4
9. The Ministry of Industry and Commerce is responsible for devising, following up and
applying trade policy measures such as the regulation of trading (import/export) activities.5  It does so
in cooperation with the technical ministries concerned.  The Ministry of Finance and EconomicAffairs is more particularly responsible for designing and applying tariff measures.  Coordination of
the various components of economic policy, including trade policy, is carried out by the Ministry of
Planning and Physical Development within the framework of Togo's general development policy.
10. The Chamber of Commerce, Agriculture and Indus try of Togo (CCAIT), together with the
various private professional organizations (employers', traders' and manufacturers' associations, theimporters and exporters of Togo and the Togolese grouping of small- and medium-sized enterprises
(SME)), do not take part in the development of trade policy.  These organs are, however, usually
informed and sometimes consulted.  According to the private operators, the administration pays little
heed to their claims.
11. The National Investment Company (SNI) was es tablished in 1970 to develop investment in
the country.  Its activities were financed by a compulsory levy on all enterprises.  After having
encountered some financial difficulties connected with the financing of uneconomic projects, the SNI
                                                     
4 Act No. 95-13/PR of 19 April 1995.
5 The restructuring of the Directorate of Foreign Trade is envisaged so as to adapt it to the new
environment resulting from the reforms.Togo WT/TPR/S/48
Page 17
was transformed into the National Investment Bank (BNI)6, the purpose of which is to finance
investment in SME.  The BNI has adopted a policy of collecting private savings7. It is currently
working in close cooperation with the Society for the Administration of the Free Zones (SAZOF).
12. The Government does not at the moment receive any advice from academic establishments or
other research institutions when drawing up or modifying its trade and investment policies.
(3) POLICY OBJECTIVES
13. Togo's trade and investment policies are to be found in the Programme of Economic
Adjustment and Revival (PARE).  The objectives of the PARE are the restoration of the
macroeconomic balances through an annual growth rate of about 5.5 per cent.  To secure this growth,
the Government intends to promote the development of private initiative and is thus banking on an
investment rate (ratio of investment to GDP) of the order of 18 per cent from 1998 onwards.  Thesectors to which Government actions are more particularly directed are:  small- and medium-sized
enterprises (SME), the agriculture sector in which new strategies should encourage diversification of
crops and, lastly, the mining sector.
14. The trade reforms in progress form part of this logic of restoring the major macroeconomic
balances.  The purpose of the liberalization of trade activities in Togo is to reduce the trade deficit bya sustained promotion of exports and the rationalization of imports, i.e. obtaining supplies of foreign
products (including inputs) of better quality at less cost.
8  To this end, the Government is
endeavouring to revitalize and diversify the production of export crops, to establish a system of
economic and trade information directed to the outsid e world with a view to diversifying outlets and
sources of supplies, to train the economic operators engaged in foreign trade and to improve the
institutional and regulatory provisions for export en terprises.  Thus, in the agricultural sector which is
responsible for more than half of export earnings, the promotion of cash crops and, more precisely,the development of cotton production, the revival of coffee production by the regeneration of the
plantations, the gradual renewal of the cacao trees and the establishment of chambers of agriculture
responsible for promoting exports of these products are envisaged.  In this context, particular attention
is being paid to strategies to attract foreign investors into the national territory and, in particular, into
export-oriented activities;  the introduction of a free zone in 1989 and the updating of the MiningCode in 1996 form part of this approach.
15. Within the framework of the strategy to develop private initiative in the productive sectors,
Togo has begun a programme of privatizing State-owned enterprises.  The programme expects, by the
year 2000, the continuation in activity of five State-owned companies.
9  Togo intends to take full
advantage of WTO measures in favour of the least-developed countries (e.g. the IntegratedProgramme for Trade-Related Technical Assistance).  Identification of the opportunities offered by
the WTO Agreements is also proposed.
(4) 
LAWS AND REGULATIONS
16. Compared with other countries in the subregion, Togo has been backward in the matter of
regulations concerning trade and investment.  There is no Togolese commercial code;  French law  is
                                                     
6 The capital of the BNI is, to an extent of 80 per cent, held by the private sector;  the State is willing to
make the 20 per cent that it holds over to any institutional investors who so request.
7 The BNI obtained some positive operating results in 1996 and 1997.
8 The authorities have confirmed that future actions will be in keeping with the provisions of the WTO
Agreements.
9 Ordinance No. 94-002 and Decree No. 94-038 of 10 June 1994WT/TPR/S/48 Trade Policies Review
Page 18
applied in many areas.  Nevertheless, national laws and regulations do exist.  Moreover, the
completion of the implementation of the provisions of the Treaty of the Organization for the
Harmonization of Business Law in Africa (OHADA) should make it possible to standardize the rulesconcerning company law and the legal status of traders, debt recovery, guarantees and modes of
enforcement, the regime for the rehabilitation of enterprises and compulsory liquidation, arbitration
law, labour law, accounting law, sales law and transport law.
10  In addition, the establishment of the
various instruments provided for in the context of WAEMU should strengthen Togolese legislation on
trade and investment.
(i) Trade legislation
17. The main texts currently governing Togo's foreign trade are:  Act No. 66-22 of
23 December 1966 establishing the Customs Code (and the annual finance acts and defining inter
alia, the context in which most import and export duties and taxes are fixed and collected11;  Free
Zone Act No. 89-14 of 18 September 1989 (and its implementing decree);  Interministerial DecreeNo. 25/MIC/MEF of 5 November 1996 establishing the terms for obtaining the importer/exporter's
and shipper's card;  the Cotton Marketing Act
12;  and Interministerial Decrees Nos. 17 and
18/MCPT/MDRHV of 14 June 1996 setting up a Coordinating Committee for the coffee-cocoa chain
and defining the methods of collecting and exporting these products.  An interministerial order of
January 199513 introduced a system of inspecting imports.  The other trade legislation instruments are
either out of date or have been emptied of their essential content as a result of the liberalization of
trade activities in Togo.
18. A bill is under consideration to replace Ordinance No. 17 of 22 April 1967 which regulates
prices and competition in Togo (Chapter III.4(iii)).  Act No. 89-31 of 28 November 1989 established
an Arbitration Court (in the Chamber of Commer ce, Agriculture and Industry of Togo) which, in
actual fact, is not used.
(ii) Investment Code and Mining Code
19. Togo adopted its first Investment Code in 1965.  The Code was amended in 1973, 1978
and 1985.  The main objectives of the Code in force since 198914 are to encourage export-oriented
investment, increase the employment of Togolese workers, promote the establishment of SMEs,
encourage the decentralization of economic activities and make optimum use of the country's natural
resources.
20. The National Investments Commission is responsible  for applying the Investment Code.  It is
made up of representatives of the Government, of the Chamber of Commerce, Agriculture and
Industry, of the financial institutions and, sometimes, of representatives of the trade unions.  In order
to be approved, an enterprise must belong to one of the accepted sectors of activities15, invest
                                                     
10 Three uniform Acts concerning the law of trading companies and the grouping of economic interests,
general commercial law and the organization of guarantees were adopted on 17 April 1997 by the OHADA
Council of Ministers.
11 A draft customs code, adopted in the Council of Ministers, is being debated in the National
Assembly.
12 Act No. 94 002/PR of 7 October 1994 transferring cotton marketing from OPAT to SOTOCO.
13 Interministerial Order No. 002/MEF/MCPT of 23 January 1995 setting up an interministerial
committee to monitor the operations of the system of inspecting imports.
14 Act No. 89-22 of 31 October 1989.
15 The eligible sectors are:  agriculture, fishing and forestry;  manufacturing production and processing
activities;  exploration for, extraction or processing of minerals;  carrying out housing programmes of aneconomic and social nature;  constructing or managing tourist and hotel infrastructures;  storage of localfoodstuffs and agricultural products;  managing applied research laboratories and socio-cultural activities.  TheTogo WT/TPR/S/48
Page 19
CFAF 25 million exclusive of tax (other than the SME), finance at least a quarter of the investment
from its own resources and pay at least 60 per cent of the total wage bill to Togolese citizens.
21. The Investment Code guarantees the same rights and obligations to national and foreign
enterprises.  It guarantees the freedom of capital transfer and of income and salaries for foreign
natural or juridical persons.  The approved enterprise  commits itself:  to give priority, all being equal
in terms of price, quality and availability, to services of Togolese origin;  to respect national andinternational standards and to keep proper accounts.  The main tax and customs advantages are
presented in Table II.1.  In addition, Box II.1 shows the direct taxes on enterprises in Togo.
22. According to the authorities, no enterprise has requested to be approved under the regime of
the Investment Code since 1993, largely because of the much more favourable advantages given in
the context of the free zone regime.  A possible revision is being considered but it is for the momentsubordinated to the expected introduction of a community investment code in the WAEMU
framework.
23. A Mining Code was adopted in 1996
16 in order to stimulate the investment needed to develop
the sector.  In accordance with the provisions of the Code, any natural or juridical person, whether
Togolese or foreign, having the necessary technical and financial capacity, is entitled to exploitmineral substances.  Nevertheless, the right to engage in such operations can be acquired only by
virtue of mining titles
17 issued by the Ministry of Mines.  The State may also sign investment
agreements for mining operations that it deems important for the national interest.  An investment
agreement is obligatory for oil prospecting, exploration and exploitation.  The marketing of minerals
is also regulated by the Mining Code and subject to a permit issued by the Ministry of Mines.
24. The holders of the mining titles are obliged:  to ensure that the environment is protected in
accordance with the Environment Code;  to give preference to Togolese enterprises for all building,supply or service contracts, the terms of price, quantities, qualities and delivery dates being equal;
and to give priority to the employment of Togolese labour.  Moreover, the Mining Code defines, inter
alia, the rights of the enterprises, the areas exploitable and the duration of the validity of each
category of title.
                                                                                                                                                                    
national SMEs that are eligible are those engaged in th e maintenance of industrial equipment, the packaging of
local products and handicrafts.
16 Act No. 96-004/PR of 26 February 1996.
17 The mining titles are:  the prospecting licence, the exploration permit, the quarrying licence, the
large- or small-scale exploitation permit and the handicraft licence.WT/TPR/S/48 Trade Policies Review
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Table II.1
Main advantages provided for by the Investment Code
Setting-up aid Operating aid Export incentive Job-creation
incentiveDecentralization
incentive
Duties and taxes Complete
exemption from
fiscal duty and VATon equipment
imported for the
activities for whichthe enterprise has
been approvedComplete
exemption from
fiscal duty and VATon the fuels used in
the fixed
installations andfrom VAT on the
work connected
with the capital
investment for
enterprises installedin zones 2 and 3.
ISaComplete
exemption of a
portion equal to theproportion of  CA
a
exportedDeduction from the
taxable figure of an
amount equal to50 per cent of the
total wages bill paid
to permanentTogolese employees
IMFaCompleteexemption for3 years for every
approved enterprise,
5 years for the SMEand 7years for
enterprises
processing local rawmaterialsComplete
exemption of aportion equal to the
proportion of CA
a
exported
Payroll tax Applied at the
reduced rate of 2%
for 5 years in thecase of enterprises
installed in zone 1,
for 7 years for those
installed in zone 2
and for 12 years forthose installed in
zone 3
Temporary import
and drawbackGranted as of right
a Corporate tax (IS);  minimum formula tax (IMF);  turnover (CA).
Source:  1989 Investment Code of the Republic of Togo.
25. The allocation of mining titles is subject to the payment of an area royalty.  In addition, the
extraction of a mineral is subjected to a tax, the rates and the manner of calculation of which vary
according to the product.  The holder of a prospec ting licence or exploration permit is exempted from
the corporate tax, income tax, minimum formula tax and the VAT.18  The same is true for the holders
of an exploitation permit up to the date of the first marketable production.  The holders of a
prospecting licence or exploration permit, and their suppliers of goods and services, benefit from the
regime of temporary import for equipment goods, machines, utility vehicles, tools, spare parts and
consumables (other than petroleum products).  Lastly, the export of any mineral is exempted from any
export duties (including the statistical tax) and from VAT.
                                                     
18 The exemption from VAT is extended to the suppliers of goods and services to the holders of a
prospecting licence or exploration permit for equipment goods, machines, utility vehicles, tools, spare parts andconsumables (other than petroleum products).Togo WT/TPR/S/48
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Box II.1:  Direct taxation on enterprises in Togo
Togolese legislation distinguishes, on the one hand, between the income drawn from productive
activities by natural persons, essentially business pro fits (BIC), non-business profits (BNC) and agricultural
profits (BA) – in the case of the last of these, the legislation is still theoretical – and, on the other hand,company results.
(1) The BIC of natural persons are taxed within the context of a single annual income tax which,
through a progressive scale, is imposed on the aggregated sum of the various categories of income.  Below acertain turnover threshold, which varies according to the nature of the activity, the evaluation of the BIC iscarried out in accordance with a flat-rate procedure.  The highest marginal rate of income tax (55%) is abovethat usually practised in West Africa (about 45%).  In the case of carriers, members of a profession which is
particularly difficult to tax because they do not keep regular  accounts, a flat-rate tax of 10% of the turnover is
collected in place of the tax on results, the minimum formula tax and the occupational tax.
(2) Company results are subjected to a corporate tax (IS) of 37% if they are industrial companies and
40% in the case of other companies.  These rates are hi gher than the average in force in the countries of the
West African subregion.  A minimum formula tax (IMF) of 0.5% of the turnover, deductible from the IS if thelatter is higher, is collected as a minimum tax on companies whose deficits or low profits may be the result of
fraud or trickery.
(3) All enterprises are also subjected to the traditional direct taxes (occupational tax and real estate
tax).
(4) A flat-rate tax, chargeable to the BIC or IS, is collected on imports with a view to securing the
payment of these taxes, i.e. to limit underestimates and fraud.  The rate of this tax is 1% for registeredenterprises and 5% for non-registered enterprises;  it is based on the c.i.f. value plus the import duties.
(iii) Free zones
26. In 1989, Togo set up some export processing free zones.19  Free zone status can be granted to
any physically demarcated zone or, individually, to an exporting enterprise (free point), whatever its
location in Togolese territory.  The administration of  these zones has been entrusted to the Society for
the Administration of the Free Zones (SAZOF) which is a parastatal company under the auspices of
the Ministry of Commerce.  SAZOF acts as a si ngle window for enterprises which wish to be
approved in terms of the free zones or free points.  It is also responsible for identifying and
demarcating the zones, seeking promoters, establishing basic infrastructures and coordinating the
various zones.
27. In order to obtain approval, the enterprise must have one of the following characteristics:  be
very labour-intensive;  be technologically advanced;  use local raw materials;  be an exporter
practising international subcontracting;  produce inputs for other companies in the free zone or render
services which facilitate the exports of other companies in the free zone.  Moreover, the enterprise
must export the whole of its production and reserve the permanent jobs, as a matter of priority, for theTogolese.  Nevertheless, exceptionally, a free zone enterprise may be authorized, by a joint order of
the Minister of Finance and the Minister of Industry and Commerce, to sell not more than 20 per cent
of its production on the Togolese  market.  These sales on the local market are subject to the customs
regulations applied to imports, i.e. they are regarded as imports into Togo.
28. The enterprises approved for free zone status have customs and tax advantages (Table II.2).
They also have the benefit of preferential tariffs for port and telecommunication services.  They are
free to hire and fire their employees.  They are also free to transfer capital, income and salaries for
foreign natural or juridical persons.
                                                     
19 Act No. 89/14 of 18 September 1989 and Decree No. 90/40 of 4 April 1990.WT/TPR/S/48 Trade Policies Review
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Table II.2
Main advantages granted to enterprises in the free zones or to free points
Customs advantages
DFE and TSEaExemption on equipment, including spare parts, raw materials,
semi-finished products and consumables needed for the installationand its operation
Reduction of 50% on utility vehicles
Tax advantages
VATaExemption on equipment, including spare parts, raw materials,
semi-finished products and consumables needed for the installationand its operation
Reduction of 50% on utility vehicles
Exemption for works and services carried out for the enterprise inthe free zone
ISaComplete exemption for the first 10 years and then payment atreduced rate of 15%
Tax on payroll Payment at the reduced rate of 2%
Tax on dividends Exemption for the first 10 years for foreign shareholders
a The acronyms mean:  DFE, import fiscal duty;  TSE, import statistical tax;  IS, corporate tax;  and VAT, value-added tax.
Source:  Togolese authorities (Act No. 89/14 of 18 September 1989).
(5) TRADE AND INVESTMENT AGREEMENTS AND ARRANGEMENTS
(i) Multilateral agreements
29. In March 1964, Togo inherited the status of c ontracting party under Article XXVI:(5)(c) after
having de facto applied the GATT from April 1960.  It was neither a signatory to nor an observer for
any agreement emerging from the Tokyo Round.  Togo became a Member of the WTO on
31 May 1995 after having ratified20 the Agreements resulting from the Uruguay Round.  It is not a
signatory to any plurilateral agreement which emerged from the Round.
30. Togo grants at least most-favoured-nation (MFN) treatment to all countries.  It has made
several commitments within the framework of th e Uruguay Round (Chapter III.2(iii)(c) and IV.(5)).
As a developing country (and more specifically as a least-developed country), Togo should benefitfrom the strengthening of the rules and discipline wi thin the multilateral trading system especially in
sectors such as agriculture, which are particularly important to it.  As a producer of raw materials,
Togo does not encounter many difficulties of access to foreign markets, since these materials are
usually subjected to zero or very low MFN rates on their entry to the importing countries.
31. The main concern of Togo is to increase and diversify production so as to exploit more
effectively the present possibilities and those which should result from the continuation of
liberalization at the multilateral level.  The trade reforms carried out unilaterally by Togo have
prepared it for the continuation of such liberali zation.  An integrated programme for trade-related
technical assistance to the least-developed countries (including Togo) was launched by WTO with
some other international organizations at the high-level meeting of October 1997 at Geneva;
increasing and diversifying the production of these countries being among the programme's
                                                     
20 Act No. 95-013/PR of 19 April 1995.Togo WT/TPR/S/48
Page 23
objectives.  Togo hopes to benefit from all the advantages offered by the multilateral trading system,
and in particular from the integrated programme.  Identification of the deficiencies (so as to control
them more effectively) and of the opportunities offered by the multilateral trading system (so that
Togo can profit from them) and publicization of the content of the WTO Agreements in Togo are
areas in which the authorities would like some technical assistance.
32. The sole notification made by Togo in the framework of the implementation of the results of
the Uruguay Round is that concerning the delayed application of the Agreement on Implementation of
Article VII of the General Agreement on Tariffs and Trade 1994 (customs value).21  In accordance
with the monistic system which prevails in Togo, the WTO Agreements can be invoked directly
before the domestic courts since, as international agreements, they have precedence over domestic
law.  Nevertheless, according to the authorities, discussions are being held in the regionalorganizations of which Togo is a member, notably the West African Economic and Monetary Union
(WAEMU) and the African Intellectual Property Organization (AIPO) to bring legislation into line
with the WTO provisions.  Any future change in legislation will take account of the rights and
obligations linked to Togo's membership of WTO.
33. Togo is a member of the United Nations and its specialized agencies and of several other
multilateral organizations such as the International Monetary Fund and the World Bank.
(ii) Regional agreements
34. The Preamble to the Constitution confirms the attachment of Togo to African unity and to
subregional integration.  The level of development and the proximity of regional markets justify this
option, the limits upon which range from the similarity of the goods offered by the countries of the
same region to the (greater) risks of trade disputes whose settlement at the regional level is not alwayseasy.  Togo is a founder member of the Organization of African Unity (OAU) and of the African
Economic Community (AEC), the Economic Comm unity of West African States (ECOWAS)
22, the
West African Economic and Monetary Union (WAEMU)23, the West African Monetary Union
(WAMU) and the Organization for Harmonization of Business Law in Africa (Section 4 above).
(a) Organization of African Unity (OAU) and African Economic Community (AEC)
35. The Charter establishing the OAU was signed on 25 May 1963.24  Togo, like the other
members of the OAU, signed the Treaty Establishing the AEC at Abuja, Nigeria, in June 1991 as
provided for by the Lagos Plan of Action of 1980.  This Treaty provides for the creation of a
pan-African economic and monetary union (with a parliament) over a 34-year period.  The organs and
headquarters of the AEC are those of the OAU.  The Community is taking its time about effectivelystarting up its activities.
(b) Economic Community of West African States (ECOWAS)
36. The ECOWAS Treaty was signed on 28 May 1975.  The ECOWAS trade liberalization
scheme has two main aspects:  the elimination of all non-tariff barriers, i.e. licences, quotas,
prohibitions and other administrative barriers, in respect of all products originating within ECOWAS;
                                                     
21 WTO document WT/LET/19, 18 April 1995.
22 The countries members of ECOWAS are Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, Gambia,
Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone and Togo.
23 The countries members of WAEMU are Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali,
Niger, Senegal and Togo.
24 Almost all the African countries are members of the OAU.WT/TPR/S/48 Trade Policies Review
Page 24
and a gradual and full elimination of all tariff barriers.  The 1993 Amendment to the Treaty provides,
inter alia , for free circulation of services, capital and persons within the Community within five years
following the establishment of the customs union scheduled for the year 2000.25  Local products and
traditional handicrafts appearing on the list of products established by the Community must be
permitted to circulate free of import duty if they are accompanied by a certificate of origin issued by
the Ministry of Industry and Commerce.
37. Finished manufactured goods originating within  the Community form the subject of tariff
reductions based on such criteria as the level of industrial development of each country and theproblems affecting island and landlocked countries.  A finished product is deemed to originate within
ECOWAS if at least 60 per cent of the raw materials used in its manufacture come from the
Community or if the value added is at least equal to 35 per cent of the cost price excluding tax (ex
factory).  Products must be approved in accordance with the scheme adopted by the ECOWAS
Council of Ministers.  The timetable for the gradual reduction of import duties has not beenrespected.
26
(c) West African Economic and Monetary Union (WAEMU)
38. The WAEMU Treaty was signed on 11 January 1994 by the countries members of WAMU.
Guinea-Bissau acceded to this Treaty on 1 January 1997.  The aim of the Treaty is to create an
economic union by organizing the convergence of  macroeconomic and sectoral policies and the
harmonization of fiscal legislation.  Monetary integration, with a central bank (the Central Bank of
West-African States (BCEAO)) and a common currenc y (the African Financial Community franc) has
already been achieved, since WAMU had emphasized th at approach (Annex I.1).  Free circulation of
persons, goods, services and capital is one of the principles of the Union.  The headquarters of the
WAEMU Commission are at Ougadougou, Burkina Faso, and that of the central bank at Dakar,
Senegal.
39. As a prelude to the creation of the Customs Un ion, a preferential trade agreement, concluded
among the member countries in December 1995, provided for the gradual introduction of a
preferential community tariff27, specified the customs regime and procedures applicable to circulation
of goods within the Union and defined the regime and allocation of the Community Solidarity Levy.
The structure of the Common External Tariff (CET) and the stages of establishing the customs union
(from July 1998 to January 2000) were specified in November 1997 (Table II.3).  The distribution ofproducts according to the structure of the CET (with four rates from 1 per cent to 20 per cent,
including the statistical levy of 1 per cent) should have become effective not later than 1 July 1998
and harmonization of the internal taxation systems of the member States is scheduled to take place
during 1998.
40. A degressive protection tax the parameters of which (products covered, rates and duration)
will be determined by the Council of Ministers is provided for in order to offer certain "particularly
sensitive" products a temporary additional protection which should make it possible to carry out the
necessary adjustments.  The same is true of the temporary import levy designed to make it possible to
                                                     
25 WTO (1998) and WTO document WT/WGTI/W/22 of 26 January 1998.
26 The 16 ECOWAS countries are classified into three groups:  (1) Cape Verde, Gambia, Guinea-
Bissau, Burkina Faso, Mali, Mauritania and Niger, for which the reduction should be equal to 10 per cent
annually, or an abolition of customs duties in ten years;  (2) Benin, Guinea, Liberia, Sierra Leone and Togo, for
which the reduction should be equal to 12.5 per cent, or an abolition of customs duties in eight years;  and (3)
Côte d'Ivoire, Ghana, Nigeria and Senegal, for which the reduction should be equal to 16.6 per cent annually, oran abolition of customs duties in six years.
27 This agreement formed the subject of two additional acts:  the first in April 1996 and the second in
January 1997.Togo WT/TPR/S/48
Page 25
neutralize any erratic fluctuations in world prices.  The technical barriers to trade will be harmonized
and new rules of origin (with the possibility of regional accumulation) established;  at the moment, a
product is deemed to originate from a country of the Union if at least 60 per cent of the raw materials
used for its manufacture come from the country in question or if the value added is at least equal to 40
per cent of the cost price excluding tax (ex factory).  A regional financial market is being established
and a community investment code should see the light of day before the end of 1998;  the code willnot be of the derogation type.  A community policy concerning competition should also be
formulated.
Table II.3
Establishment of the common WAEMU external tariff
Import categories From 1/7 to 31/12/1998 1999 As from 1/1/2000
Outside WAEMU (MFN rates)
    Category 0 0 0
    Category 1 maximum 5 % 5 %
    Category 2maximum 10 % 10 %
    Category 3 maximum 30 % maximum 25 % 20 %
    Community solidarity levy (PCS) 0.5 % 0.5 % 0.5 %
    ECOWAS levy (0.5 %) (0.5 %) (0.5 %)
    Statistical levy (RS) free free 1 %
    Degressive protection tax (TDP) Products, rates and duration will be determined by the Council of Ministers
    Temporary import levy (TCI) on the proposal of the Commission before the end of June 1998.
Intra-WAEMU (level of reduction of MFN rates)
    Local products 100% 100% 100%
    Approved origin products 60 % 80 % 100 %
    Non-approved origin products 5 points 5 points 100 %
    Other products 0 0 0
Source:  WAEMU Commission.
(iii) Other trade agreements or arrangements
41. Togo is a signatory to the Fourth Lomé Conv ention between the European Union (EU) and 71
developing countries of sub-Saharan Africa, the Caribbean and the Pacific (ACP Countries).  This
Convention, signed in 1990 for ten years, was revised in 1995.  Under the provisions of the
Convention, a product is deemed to originate from an  ACP country if it has been completely obtained
or sufficiently processed in the country.  Non-orig inating materials are considered to have formed the
subject of adequate working or processing when the product obtained is classified under a codedifferent from that in which all the non-originating materials used in its manufacture are classified.
Subject to a safeguard clause, exports of products originating from Togo, apart from those covered by
the Common Agricultural Policy (CAP), are exempted from any import duty on the European market.
In the case of the agricultural products covered by the CAP, the EU grants treatment at least as
favourable as that given to third countries benefiting from the MFN regime.
42. Togo receives EU assistance through the European Development Fund (EDF) and benefits
from the STABEX price stabilization mechanism.  In the case of Togo, STABEX has compensatedfor the loss of export earnings of cotton, cocoa, coffee, groundnuts and shea nuts.  Between 1992 and
1995, Togo received 8.6 million European Currency Units (ECU) under STABEX.
43. The other developed countries (non-EU) grant trade preferences to Togo in connection with
the Generalized System of Preferences (GSP). The preferences granted by the developed countries,WT/TPR/S/48 Trade Policies Review
Page 26
including the EU countries, are non-reciprocal. Lastly, Togo is a signatory to the Agreement on the
Global System of Trade Preferences (GSTP) , concluded among developing countries.
44. Togo has signed bilateral trade agreements with 12 African countries, four Asian countries
and eight European countries.  None of these agreements, most of which date from the years
1960-1970, has been denounced.  Some of them have become outdated because of recent geopolitical
developments (e.g. disappearance of the GDR and USSR).
(iv) Trade disputes and consultations45. As of July 1998, Togo had never been directly involved, either as a complainant or as a
defendant, in any dispute settlement procedur e within GATT, WTO or any other commercial
agreement to which it is a signatory.
46. The ECOWAS and WAEMU Treaties each provide for a court of justice and dispute
settlement bodies.  Within ECOWAS, a dispute can be settled amicably, subject to approval by theConference of Heads of State.  In the absence of such an arrangement, the dispute may be brought by
any of the parties, by any member State or by the Conference before the Executive Secretariat of
ECOWAS.  The dispute is then submitted to the Trade, Customs, Immigration, Currency and
Payments Commission, which issues a recommendation to the Council of Ministers.  Lastly, in the
absence of a settlement, the dispute is brought by one of the parties to the Community Tribunal,whose decisions are without appeal.  However, the Court of Justice provided for under the ECOWAS
Treaty is still not an operational reality.
47. In the WAEMU context, the Commission and any member State can submit a complaint if it
considers that a State has failed to meet its obligations under the Treaty.  The supervision of the
legality of organs in matter of settlements, directives or decisions make it possible for a complaint
28 to
be introduced by the WAEMU Council of Minist ers, by the Commission, by a member State, or
brought by a private individual (natural or juridical person).29  The possible sanction is the total or
partial nullification of the act.  The Court can also reach decisions on disputes between WAEMU and
its agents and disputes concerning the Union's extra-contractual responsibility for the acts of its
organs or agents.  By means of the resort to arbitration, the Court can consider disputes between
member States, in connection with the Treaty, provided that these States have concluded an
agreement to that effect.  The Council of Ministers, the Commission or a member State can alsoobtain an opinion of the Court on the compatibility of an international agreement in existence or in
course of negotiation, with the provisions of the WAEMU Treaty.  Lastly, the Court can be seized by
the same institutions and the Conference of Heads of State and Government, in an advisory capacity,
with any difficulty encountered in applying or interpreting acts relating to community law.
30
48. The Common Court of Justice and Arbitration of the Organization for Harmonization of
Business Law in Africa (OHADA) can be seized by m eans of an application for judicial review by
any person having an interest in an action that has been heard by the substantive courts of a member
State;  it may also be asked for an advisory opinion by any member State, by the Council of Ministers
or by a domestic court of a State member of the Organization.  It gives a ruling concerning decisions
                                                     
28 The complaint must be submitted within two months following the publication of the act, its
notification to the person concerned or the moment at which the person concerned became aware of it.
Nevertheless, even after the expiration of the two-months deadline, any party can cite the illegality of an act by
the Council or the Commission as part of his defence.
29 The private individual concerned must demonstrate that the act he is challenging has injured him
personally.
30 Articles 38 and 39 of the Treaty and Additional Protocol No. 1 concerning WAEMU supervisory
organs (Articles 1-22) of 10 January 1994.Togo WT/TPR/S/48
Page 27
rendered by the national courts.31  The judgements of the Court have the force of res judicata  and are
legally enforceable.  The Court may also be asked to settle a dispute by means of an arbitration
procedure.  The Court does not reach a decision itself;  it appoints or confirms the arbitrator or
arbitrators (three at most) and examines the draft awards.  The arbitral awards have the force of res
judicata  and are enforceable at law.  In addition, disputes concerning the interpretation or the
application of the Lomé Convention may be submitted to the Council of Ministers established underthe Convention.  If the Council does not find a solution, it may initiate arbitration proceedings at the
request of one of the parties.
49. Despite the existence of these provisions, Togo prefers, according to the authorities, to settle
its disputes by friendly negotiation.
(v) Investment agreements or arrangements
50. Togo is a signatory to the Convention Establishing the Multilateral Investment Guarantee
Agency.  The Lomé Convention between the ACP States and the European Union embodies
principles for protecting European investments in  the ACP countries (Articles 260, 261 and 262 of the
Convention).
                                                     
31 The national courts are so far responsible for applying company and contract law.