Mauritania WT/TPR/S/103
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I. ECONOMIC ENVIRONMENT
(1) BACKGROUND
1. The Islamic Republic of Mauritania is situated in North-West Africa, covering an area of
1,031,000 km2, and has a population of close to 2.6 million.  Population density is around
2.5 inhabitants per km2 and the annual rate of demographic growth is around 3 per cent.  The majority
of the country is covered by desert.
2. Mauritania is a low-income country and is one of the least-developed countries (LDC).1  Per
capita GDP was around US$350 in 2000 (Table I.1).  Imports and exports account for 53 per cent and40 per cent of GDP respectively.  Mauritania's economy has traditionally been based on trade and
agriculture, particularly livestock breeding, but also on the mining and fisheries sectors and, to a
lesser extent, manufacturing industry.  The largest se ctor in terms of share of GDP is services (around
50 per cent), especially food and beverage and hotel services (17.7 per cent).  The agricultural sector
accounts for around 18 per cent of GDP and almost all the agricultural production is consumed on thespot.  The fisheries and mining sectors combined provide almost 100 per cent of exports, despite their
more modest contribution to the GDP (around 5 and 13 per cent respectively).  The manufacturing
sector is not very developed.  Mauritania's production and export base is very narrow (mainly
consisting of iron and fish) making it highly vulnerable to external shocks.  In addition, because of its
arid climate, Mauritania depends on food imports.
3. Mauritania has embarked upon a significant transition towards economic liberalization and
strengthening of the legislative framework, particularly since the early 1990s.  Efforts have been made
to liberalize the foreign trade regime.  The measures taken include simplification of import
procedures, rationalization of the structured MFN duties a reduction in the maximum rate and the
abolition of export taxes.  In 2000, a new Commerci al Code was adopted containing new provisions
on the freeing of prices and competition, and the new Investment Code, enacted in 2002, introduced a
system of free points to boost exports.  The parallel privatization process initiated in the 1990s hasalready been extended to the fisheries, air transport and telecommunications sectors.  It was planned
to extend it to the energy sector during 2002.
4. The exchange rate for Mauritania's national cu rrency, the ouguyia (UM) is determined by a
"managed float" mechanism.  Since 1992 (but particularly since 1995) Mauritania has taken important
measures to liberalize the exchange rate mechanism.  The commitments imposed by Sections 2, 3 and4 of Article VIII of the Articles of Agreement of the International Monetary Fund (IMF) were
accepted by Mauritania on 19 July 1999.
                                                     
1 According to the poverty criteria adopted by the World Bank in 1990, some 46 per cent of the
population lived below the poverty threshold in 2000, (average spending of less than US$280 per capitaannually) (Government of Mauritania (2002)).WT/TPR/S/103 Trade Policy Review
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Table I.1
Mauritania in figures 1990-2001
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
GDP (US dollars millions) 1021.6 1095.4 1109.9 948.2 1004.8 1058.3 1080.9 1096.3 1003.2 958.7 936.1 962.2
Per capita GDP (US dollars) 518.3 540.2 531.9 441.5 454.3 464.6 456.2 442.8 402.4 371.6 350.6 …
Population (millions) 1.97 2.03 2.09 2.15 2.21 2.28 2.35 2.42 2.49 2.58 2.67 …
Population growth (percentage) … 2.9 2.9 2.9 3.0 3.0 3.0 3.1 3.1 3.5 3.5 …
Life expectancy at birth (years) 48.6 49.0 49.5 49.9 50.37 51.4 51.8 52.3 52.8 … … …
Share of GDP at market prices
(percentage)
Total trade sector 76.9 77.3 77.5 77.1 77.2 77.5 76.7 78.5 78.4 78.9 79.8 79.3
Rural sector 25.9 25.9 25.2 24.3 24.1 23.5 22.0 22.0 22.3 21.1 19.9 18.9
Horticulture 3.7 3.9 3.7 5.1 5.4 5.4 4.8 5.2 5.9 5.1 4.3 3.5
Livestock 21.4 20.9 19.9 17.7 17.0 16.0 15.2 15.2 14.7 14.6 14.1 14.1
Small-scale fishing 0.8 1.1 1.5 1.5 1.6 2.1 2.0 1.6 1.7 1.5 1.5 1.2
Mining and quarrying 12.4 12.1 9.2 10.9 11.3 11.4 11.3 11.7 12.3 12.0 14.0 12.8
Manufacturing industries 9.2 9.7 10.4 11.9 10.3 10.0 10.2 8.8 8.2 8.4 8.3 8.4
Fishing industry 5.0 5.8 6.1 7.0 6.0 5.8 5.8 4.2 3.4 4.1 4.1 4.2
Other industries 4.2 3.9 4.3 4.9 4.3 4.2 4.3 4.6 4.8 4.3 4.2 4.2
Construction and public works 5.5 5.2 6.6 5.3 6.2 6.5 6.0 5.9 5.5 5.6 5.6 6.2
Transport andtelecommunications5.1 5.6 6.2 5.7 5.8 6.0 6.3 7.1 7.0 8.1 8.9 9.9
Trade;  restaurants and hotels 12.9 13.2 14.2 13.6 14.2 14.7 15.4 17.5 17.6 18.2 17.7 17.7
Other services 5.8 5.6 5.6 5.4 5.4 5.4 5.5 5.5 5.5 5.5 5.4 5.4
Non-trade sectors 12.9 12.7 12.5 11.7 12.0 11.5 11.1 10.8 10.9 10.5 10.5 10.7
Indirect taxes 10.2 9.9 10.0 11.2 10.8 11.0 12.3 10.5 10.7 10.6 9.8 10.0
… Not available
Source: National Statistical Office (1998), Statistical Year Book;  IMF (2000b), Mauritania:  Statistical Appendix , Staff Country Report
No. 00/90, August [on line].  Available at the following address:  http://www.imf.org;  and data provided by the Mauritanian
authorities.
5. Production costs in Mauritania are relatively high and have a negative impact on the
competitiveness of exports.  Electricity and water rates are some of the highest in the region.
Transport costs are also high because of insufficient investment in managing the sector and the long
distances between Mauritania's economic centres (Chapt er IV(6)(iv)).  Wages are quite low, but this is
not reflected in Mauritania's competitiveness because of the labour force's inadequate training.2
Limited access to credit and its high cost are also important constraints on Mauritania's economicactivity.
3  During the 1990s, Mauritanian exports could have taken advantage of increased
competitiveness as a result of the continual deprec iation of the real effective exchange rate, but the
favourable trend in the exchange rate does not appear to have had any significant impact on the major
export sectors.4  In order to enhance competition and improve export capacity, the Government started
to liberalize the transport sector (Chapter IV(6)(iv));  it planned to privatize the Mauritanianelectricity company (SOMELEC)
5, but this project has been postponed due to lack of interest on the
part of potential buyers.  The State also intends to broaden the production base (by diversifying
production and activities), generate value added by further processing of local resources, and
strengthen export sectors.
                                                     
2 The Government fixed the minimum wage at US$35 per month prior to announcing an 8 per cent
increase in 2000 and, according to the authorities, a further 10 per cent increase in 2001.  Formal-sectoremployees are usually better paid.  Nevertheless, as a result of the successive devaluations, real wages fell by12 per cent between 1989 and 1999 (EIU (2001)).
3 World Bank (2001b), Volume I.
4 World Bank (2001b), Volume I.
5 This company was the result of separating the National Water and Electricity Company (SENELEC)
into two separate companies:  SOMELEC, which provides electricity, and the National Water Company(SNDE).Mauritania WT/TPR/S/103
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6. In 1999, Mauritania's external debt was around US$2.5 billion, corresponding to over 260 per
cent of the GDP (Table I.2).  The debt servicing coefficient was fairly high:  24 per cent in 2000 and
around 16 per cent in 2001.6  In 2000, Mauritania qualified for debt relief under the enhanced Heavily
Indebted Poor Countries Initiative (HIPC).  As a result, Mauritania's debt will be reduced to a total of
US$622 million.  This should lead to annual savings of around US$36 million over the next ten years,
equivalent to 40 per cent of total yearly debt servicing obligations.7  In addition, Mauritania still
receives substantial international aid.  Some observers estimated that the equivalent of 18 per cent of
its GDP was in the form of official aid.8
7. In 2000, the Mauritanian Government submitted its Poverty Reduction Strategy Paper
(PRSP).  This outlines the Government's long-term strategy (up to 2015) and defines priority action
for the period 2001-2004.  The strategy is based on four main themes:  accelerated growth;  promotion
of sectors and areas that will benefit the poor;  development of human resources;  and promotion of
institutional development based upon good governance.  In November 2001, the IMF completed itsfourth review of the Mauritanian Government's economic programme in the context of the Poverty
Reduction and Growth Facility (PRGF).  Joint effo rts are being made with other international
organizations and the Government to reinforce the role of trade in development policy and reducing
poverty.  In 2001, therefore, Mauritania joined the programme under the Integrated Framework for
Technical Assistance to LDCs (Chapter II(3)(i)).
9
(2) ECONOMIC DEVELOPMENTS
8. Mauritania's economy has performed relatively well since 1993 after an uneven economic
performance during the preceding decades.  These fluctuations were due to the combined effects of a
number of factors such as the serious drought and the decrease in iron prices on the global market in
the 1970s, which were followed by an improvement in climatic conditions, increased production of
iron, and growth in the fisheries sector at the end of the 1970s, before another unfavourable external
economic situation occurred in the early 1980s.  In the mid-1980s, better climatic conditions andlarge-scale development of the fisheries sector boosted the economy, but it declined in the early
1990s, mainly due to the conflict with Senegal and Mauritania's isolation during the Gulf War.  It was
only in 1993 that growth recovered at an annual average rate of around 4.5 per cent, reaching 5 per
cent in 2000 (Table I.2).  The major factors underpinning this growth appear to be Government
investment, often financed through external funds, and exports.  In 2001, real growth in GDP againfell to 4.6 per cent, due to the slowdown in the gl obal economy, especially reduced global demand for
iron.
                                                     
6 The debt servicing coefficient is the ratio between payments for amortization and interest, on the one
hand, and, on the other, the value of exports of goods and services.
7 World Bank (2000), News Release No. 2000/209/S, February [on line].  Available at the following
address:  http://www.worldbank.org.
8 Richard (2002).
9 A study on a trade strategy focusing on poverty was prepared in 2001 under the auspices of the World
Bank.WT/TPR/S/103 Trade Policy Review
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Table I.2
Main economic indicators, 1995-2001
1995 1996 1997 1998 1999 2000 2001
Percentage
Real economy
Change in real GDP 4.6 5.5 3.2 3.7 4.1 5.0 4.6
U n e m p l o y m e n t  r a t e …………………
Inflation, annual average 6.5 4.7 4.6 8.0 4.1 3.3 4.7
L a b o u r  p r o d u c t i v i t y  ( %  c h a n g e ) …………………
Private consumptiona, (% of GDP) 77.0 79.4 75.8 80.6 78.5 64.3 70.2
Gross national savings (% of GDP) 13.9 17.0 21.6 17.7 21.7 31.1 21.2
Gross domestic investment (% of GDP) 19.3 18.6 20.1 18.8 17.5 30.3 26.8
Percentage of GDP
Public finances
Governmentb
Revenue 24.0 29.2 26.9 27.0 27.9 25.9 21.1
Total expenditure and net lendin g 24.8 24.0 22.7 24.9 25.7 30.4 26.7
Global surplus/deficit (-) -0.8 5.2 4.2 2.1 2.2 -4.5 -5.6
Global surplus/deficit (-), excluding restructuring 0.9 6.7 5.0 3.9 3.9 … …
Global surplus/deficit (-), aid being considered revenue
Including restructuring 1.3 8.5 5.0 3.6 4.7 -3.3 -4.0
Not including restructuring 2.8 9.4 5.4 4.9 6.2 -2.8 -3.1
Primary balance 2.4 8.4 7.1 5.6 5.7 -1.2 -2.7
Annual percentage change
Money and creditc
M1 (=currency in circulation + demand deposits) -8.1 -10.9 8.3 5.3 6.3 22.7 12.7
M2 (=M1 + deposits in ouguiyas) -5.1 -5.1 8.0 4.1 2.1 16.1 17.3
M 3  ( = M 2  +  f o r e i g n  c u r r e n t  d e p o s i t s ) …………………
Percentage
Interest rates
Minimum savings rate … … 9.0 10.0 10.0 8.0 8.0
Central Bank discount rate … … 15.0 15.0 18.0 13.0 11.0
Maximum commercial bank rate … … 22.0 22.0 28.0 23.0 21.0
Percentage of GDP
Balance-of-payments
T r a d e  b a l a n c e …………………
Export of goods and non-factor services 49.1 45.4 39.2 39.9 37.9 40.7 40.0
Import of goods and non-factor services 59.5 57.7 48.9 53.8 49.1 52.5 52.6
Current account balance -5.0 -1.6 1.5 -1.1 4.2 0.8 -5.7
Capital and financial account balance …………………
Total debt (US$ million) 2350.0 2412.0 2456.0 2589.0 2528.0 … …
External debt 222.0 223.2 229.3 263.4 263.9 … …
Debt servicing coefficientd22.9 22.7 29.8 23.7 22.4 24.0 15.5
Percentage
Exchange rate
Ouguiyas per US$ (end of period) 137.1 142.5 168.4 205.8 225.0 252.3 264.2
Ouguiyas per SDR (end of period) 203.8 204.8 227.1 289.7 308.8 328.7 332.0
N o m i n a l  e f f e c t i v e  e x c h a n g e  r a t e …………………
Real effective exchange rate … 0.9 -1.0 -16.4 1.0 … …
… Not available.
a Including Government enterprises.  Until 1997, calculated on the basis of the difference.
b Including financial transactions directly from abroad that do not appear in the Treasury accounts and transactions related to the
restructuring of banks and State enterprises;  excluding aid.
c Including the accounts of the Development Bank up to 1994, when the Bank wound up.
d Ratio between repayments and interest and the value of exports of goods and services.
Source: IMF (2000a), Public Information Notice  No. 00/45, June;  IMF (2000b), Mauritania: Statistical Appendix,  Staff
Country Report  No. 00/90, August [on line].  Available at the following address:  http://www.imf.org; IMF (2001),
International Financial Statistics Yearbook , October;  World Bank (2001a), Global Development Finance ,
Country tables;  and data provided by the Mauritanian authorities.Mauritania WT/TPR/S/103
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9. The inflation rate has remained fairly low, an average of around 6 per cent since 1993.10
Government finances have been stabilized and the budget deficit of around 4.5 per cent of GDP in
1994 was transformed into a surplus of 5.2 per cent in 1996;  this surplus lasted until 2000, when adeficit of 4.5 per cent was once again recorded.  The balance of payments worsened in 1998 and 1999,
but there was a surplus in 2000 as a result of an improvement in the capital balance (Table AI.1).
This performance was the result of prudent budgetary and monetary policies (see below), backed up
by large-scale structural reform.  The following were also undertaken in 2001:  fiscal and tariff
reforms (Chapter III.2(iii)), including the harmonization of VAT at a rate of 14 per cent, theelimination of fiscal exemptions given to State enterprises, and strengthening of the tax
administration;  privatization of the majority of State enterprises, including Mauritel, and the sale of
two new mobile telephone licences to international investors (Chapter IV.6(iii));  and the introduction
of an exchange rate regime to make the national currency competitive.
11  Nevertheless, there was a
large deficit in 2001, mostly due to the delay in payment of financial compensation under the fisheriesagreement with the European Union.
10. The real rate of growth did not suffice to ensure an increase in real GDP per capita.  In 2000,
it had not yet reached the same level it had attained in the early 1970s (Chart I.1).  It has, however,
increased steadily since 1992.
(a) Monetary and exchange policy
11. Until recently, Mauritania's monetary policy had two main goals:  to maintain macroeconomic
stability and to bring down the cost of borrowing in the private sector.  The objective of monetary
policy is now price stability.  Since 2000, the Central Bank has gradually brought the discount rate
down from 18 to 11 per cent and the floor rate for savings deposits from 10 to 8 per cent, and has
adopted measures to enhance competition among banks and exercise better supervision over the
sector.
12. The reason for moving away from managed exchange rates was to redirect monetary policy
towards goals that were more specifically related to control of the supply of money.  In addition to
issuing treasury bonds, introduced in 1994 as a money market instrument, the Central Bank has
recently started to develop other indirect monetary instruments in order to improve its control over
liquidity problems and the conduct of monetary policy.
12  In March 2001, for example, it introduced
repurchase operations (repos) or reverse repurchase operations (reverse repos), which supply liquidityand absorb liquidity from the money market respectively, together with performance contracts
between the Central Bank and commercial banks.
                                                     
10 Inflation has been under control since the mid-1980s as a result of a stringent monetary policy,
despite devaluations of the national currency and the elimination of price controls.  The inflation rate (the
increase in the official consumer price index) has rema ined below 5 per cent in recent years, with the exception
of 1995 and 1998;  the inflation rate forecast for 2002 is 4 per cent.
11 World Bank (2001b), Volume I.
12 World Bank (2001b), Volume I.WT/TPR/S/103 Trade Policy Review
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13. Since May 2001, Government deposits in commercial banks have been subject to reserve
obligations that are identical to those applicable to the private sector and the mandatory reserves for
deposits in foreign currency, recently authorized, must be kept in foreign currency.  In the medium
term, the Government intends to transfer its deposits with commercial banks to the Central Bank after
examining the liquidity problems that might arise.13  According to the IMF, in view of the narrow
base of private sector deposits compared with total available credit in the economy, reducing the
Government's deposits in commercial banks could jeopardize growth objectives.
14. Prior to the 1995 reform, the main features of Mauritania's exchange control regime were
administrative supervision of operations and a large number of exchange rates (an official exchange
rate for account operations set by the Central Bank;  an exchange rate that was 2 to 4 per cent higher
for authorized manual exchange transactions in commercial banks;  and a rate with an additional
margin of around 20 per cent on the parallel market).  In 1995, the authorities started to reform theexchange system and harmonized the official exchange rates, set up exchange bureaux and gradually
liberalized exchange transactions.  Current transactions are now free and all constraints on capital
movements have been abolished.
14
15. Until recently, foreign exchange earnings from exports of all products and services had to be
surrendered.  The percentage applied varied depending on whether the exports were iron exported bythe National Industrial and Mining Company (SNIM), other products, or services.  In 1994, the rates
                                                     
13 In 2000, the Government's deposits accounted for around 30 per cent of total deposits.
14 Central Bank of Mauritania (2001).02004006008001000120014001600
250300350400450500550600Chart I.1
Real GDP per capita, 1960-2001
Source: World Bank, World Development Indicators , CD-Rom,  version 4.2.;  and data provided by the Mauritanian 
authorities.Constant 1995 prices 
Real GDP per capita in US  
dollars 
(right-hand scale)Real GDP in US dollars 
millions 
(left-hand scale)Mauritania WT/TPR/S/103
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were 100, 80 and 90 per cent respectively;  exporters were allowed to keep their export earnings for a
period of up to 60 days.  The percentages were gradually lowered until they were abolished in 2001.15
16. The Central Bank has also made efforts to prevent real appreciation of the national currency
and at the same time to improve the operation of the exchange market.  In order to achieve this, it
intends to adopt a number of measures to deepen the market, generate supply of foreign currency
outside the Central Bank, and bridge the gap between the official and parallel exchange rates.16
(b) Budgetary policy
17. Since the 1980s the main objective of fiscal reform has been to reduce the chronic budgetary
deficit, which corresponded to over 10 per cent of the GDP in 1985.  The recent fiscal reforms,
especially the introduction of VAT in 1995, have allowed the deficit to be brought under control and
even led to a surplus after 1995.  In 1999, Mauritania had a budgetary surplus of 2.2 per cent of GDP
as a result of controlling expenditure and reforming the tax system, for example, by adopting a single
rate for VAT;  abolishing VAT exemptions, and improving fiscal administration, and these resulted insubstantial tax revenue at the end of 2000.
17
18. Since 2000, budgetary policy has eased somewhat in order to allow increased expenditure on
priority objectives identified in Mauritania's PRSP.  The budgetary deficit was 4.5 per cent of  GDP in
2000 and 5.6 per cent in 2001.
(c) Balance-of-payments
19. Mauritania's current account balance had a chronic deficit in the 1980s and early 1990s,
mainly due to an ongoing deficit in the services balance and an unsatisfactory economic
performance.18  The current account balance has improved since 1993 as a result of the satisfactory
trend in the trade balance and large official transfers (Table AI.1).19  In 1999 and 2000, the current
account balance, (including transfers from the public sector) had a surplus.  In 2001, however, there
was a deficit of SDR 43 million (Special Drawing Rights) because of delays in payment of financial
compensation under the fisheries agreement with the European Union.  The services balance stillshows a deficit, due in part to high transport and freight costs.
20. The level of gross official reserves has steadily improved since 1994.  In 1999, they
corresponded to six months of imports and in 2001 amounted to SDR 231 million (US$292 million),
equivalent to seven months of imports, mainly as a result of increased flows of private capital.
                                                     
15 The obligation to surrender foreign currency earned by SNIM's exports was abolished between 1998
and 2001.
16 The depth of Mauritania's financial market has decreased and remains limited in comparison with
other low-income countries.  In 1999, monetary supply accounted for 14 per cent of GDP, compared with 27and 21 per cent in 1990 and 1980 respectively.  In low-income countries in general, the reverse has occurred,with the average rising from 25 per cent in 1980, to 33 per cent in 1990 and 35 per cent in 1996 (World Bank(2001b), Volume I).
17 EIU (2001).
18 The majority of international observers query the reliability of the data on Mauritania's balance-of-
payments.  It would appear that a number of weaknesses remain, especially with regard to statistics for non-mining exports, short-term capital flows, transfers of  private capital and the arrears of commercial banks.
19 EIU (2001).WT/TPR/S/103 Trade Policy Review
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(3) TREND IN TRADE AND INVESTMENT
(i) Development in trade
21. Mauritania's foreign trade continually fluctuated during the 1990s, as can be seen both from
the national statistics and those of the IMF.20  Between 1995 and 1998, the value of exports and
imports decreased, with exports falling from US$466 to US$368 million and imports from US$407 to
US$372 million.  Exports rose slightly in 1999, whereas imports continued to decline.  According to
the IMF's preliminary estimates, trade flows increased in 2000.  Because commodities play an
important role in Mauritania's trade, particularly in exports, its trade performance is subject tofluctuations in global prices and this partly explai ns the marked variations in trade flows recorded in
recent years (Tables AI.2 and AI.3).
(ii) Composition of trade
(a) By product
22. Mauritania's exports comprise a small number of products (Table AI.2).  According to the
statistics available, Mauritania does not export an y manufactured products (Chart I.2).  Its exports
consist mainly of agricultural products (particularly fish) and mineral products (iron ore), despite the
efforts made to develop agriculture and food crops.  Although the official statistics do not record
exports of raw agricultural products other than fish, other sources (World Bank) confirm that other
products are exported to neighbouring countries, for example, livestock and hides and skins.
23. The structure of imports is less concentrated than is the case for exports and is dominated by
primary products (which account for over one half of the total) (Table AI.3).  The share of basic food
products (sugar, wheat, flour, rice) is fairly stable with around 36 per cent of the total.  Due to the
gradual diversification of the economy and the development of transport, petroleum products account
for a relatively large share of imports (16 per cent of the total).  The share of manufactures appears to
have decreased in recent years.  Imports of semi-finished products remain fairly stable (chemicals,
iron and steel, and other semi-finished products as a whole account for around 15 per cent of thetotal), but the share of machinery and transport equipment has fallen.
                                                     
20 The national statistics and those of the IMF ("Direction of Trade Statistics") on imports and exports
show similar trends, but very different values (Tables AI.2 and AI.5).  In 2000, for example, the value of exportsby destination according to the IMF was around 40 per cent higher than the figure in the national statistics andfor imports by origin the figure was around 80 per cent higher.Mauritania WT/TPR/S/103
Page 9
Chart I.2
Trade in goods, 1992  and 1999
Percentage
1992 1999
(a) Exports
(b) ImportsTotal: US$649 millionFrozen octopus 
22.0
Frozen sardines, 
sardinella   3.1Coquilles St 
Jacques
8.2Frozen shark
10.0
Total: US$372 million
Food products
37.5
Textiles and clothing
 4.0
Non-electrical machinery
10.8Products of the 
automobile 
industry
5.8
Chemicals
5.4Fuel
10.8Other transport 
equipment
5.6Other
17.1
Total: US$394.8 million Total: US$329.3 million
Source:WTO Secretariat estimates, based on data provided by the Mauritanian authorities.Iron and steel
3.1Iron ore and concentrates 
thereof
62.3Frozen octopus
13.6
Other food products
3.3Frozen sardines, sardinell a 
  6.8Frozen shark
9.7
Iron ore and concentrates 
thereof
58.5
Food products
36.0
Textiles and clothing  
2.0
Non-electrical machinery
11.2Products of the 
automobile industry    8.6
Chemicals
3.6 Fuel
16.3Other transport equipment 
2.6Other
15.5
Iron and steel
4.3Other food products
2.6WT/TPR/S/103 Trade Policy Review
Page 10
(b) By country
24. The European Union (EU) is Mauritania's major trading partner (Tables AI.4 and AI.5).
Depending on the year, the European Union takes between two-thirds and three-quarters ofMauritania's exports.  Within the EU, France is the main market for Mauritanian products, but Italy
and Belgium also take a large share.  Since 1994, Asia's share of Mauritanian exports has decreased,
falling from around 29 per cent to less than 14 per cent in 2000, while sub-Saharan Africa's share
appears to be rising (between 1992 and 2000).  As regards Mauritania's imports, the EU is also the
largest supplier with a market share of 55 to 64 per cent.  France alone accounts for around one-thirdof imports (Chart I.3).  Although the shares of Am erica and Africa have in general been stable in
recent years, Asia's share has steadily decreased, particularly since 1995 (Table AI.5).
(iii) Composition of trade in services
21
25. There was a relatively large increase in Mauritanian exports of services in the 1990s, although
in value terms they remain modest.  In 1998, they amounted to US$34 million, equivalent to 8.7 percent of Mauritania's total exports (in 1990, they represented 5.7 per cent).  The key factor in this
development has been the growth in tourism, which accounted for 80 per cent of the services exported
in 1998, compared with 65 per cent in 1990.  Earnings from transport services fell sharply, from
one-third of exports to only 3 per cent (this is probably a reflection of the disappearance of
Mauritania's merchant fleet).
26. Mauritania's imports of services (including services to government departments) amounted to
US$153 million in 1998, of which transport services accounted for the largest share of payments
abroad (US$49 million), followed  by expenditure on tourism services by Mauritanians themselves
(US$43 million) and imports of business services (U S$39 million).  In the 1990s, imports of transport
services fell not only in terms of absolute value but also in relative terms (from 76.9 per cent of total
imports of services in 1990 to 37.5 per cent in 1998), unlike other business services, which rose
substantially in absolute and relative terms (from 1.7 per cent in 1990 to 29.7 per cent in 1998).
22
                                                     
21 There are very few studies on trade in services in Mauritania.  This section is based on data from the
World Bank (2001), Mauritania – Trade in Services Regime , mimeo ; and the IMF (1998 and 2001).
22 According to the classificatio n in the IMF Balance-of-Payments Manual (BPM5), used here, the
heading "other business services" includes the following:  trade-related services;  operational leasing (rental
without operators) and various business services;  professi onal and technical services such as legal, accounting
and management consulting services;  public relations services, advertising services, market research andpolling services;  research and development services;  architectural, engineering and other technical services;
agriculture and mining services;  and on-site processing services for import or export.Mauritania WT/TPR/S/103
Page 11
Chart I.3
Trade in goods by destination, 1992 and 2000
Percentage
1992 2000
(a) Exports
(b) ImportsTotal: US$647.2 millionAmerica  3.2Other African 
countries 5.6
Nigeria  1.0
Japan
17.0France  5.3
Other European 
Union countries  
3.7
Belgium
42.2Italy
7.4Russian 
Federation 4.4Spain  6.6
Germany
0.8Other 
2.3
Total: US$346.2 million
Total: US$364.6 million Total: US$356.2 million
Source : WTO Secretariat estimates, based on data provided b y the Mauritanian authorities.European Union
66.1Asia
17.5
European Union
67.8Asia
13.8
European Union
53.6
Asia
8.4European Union
62.9Asia
15.5Other Asian countries
0.5
United States
5.1Other African countries 2.1
Algeria
4.7
Japan 3.3
Spain
8.7Other European Union 
countries
6.7France
35.7
Belgium
5.4China 5.6
Germany
6.4Other
 9.8
Other Asian 
countries
6.6Africa
6.6 Africa
12.2America
0.7Other African countries 
4.8
Nigeria  7.5
Japan
10.5France
22.1
Other European Union countries   3.2
Belgium
12.8 Italy
12.5Russian
Federation 2.8Spain
13.4
Germany  3.8Other
2.6
Other Asian countries
3.3
United States
8.2
Other African 
countries
3.0
Algeria 2.2
Japan 2.5
Spain
5.2Other European Union countries 
4.0France
32.5
Belgium
3.1China  1.5
Germany
8.9Other
 24.6
Other Asian countries 4.4
(iv) Investment
27. Until now, the flow of foreign direct invest ment (FDI) has been closely linked to the
Government's individual privatization operations affecting sectors such as air transport (the
privatization of Air Mauritanie in 1999) and telecommunications (the privatization of Mauritel inWT/TPR/S/103 Trade Policy Review
Page 12
2001 and the granting of a mobile telephone licence to Mattel).  Official data on the total amount, the
countries of origin or the sectoral distribution of FDI are not available, however.23
(4) OUTLOOK
28. Prudent macroeconomic policies and external support have allowed Mauritania's economy to
make significant progress, and have resulted in a steady increase in the GDP, the control of inflation
and an improvement in government finance inter alia .  The Government considers that real growth in
the GDP will continue and should exceed 6 per cent in 2004.  Nevertheless, the estimated growth rate
for 2002 has been lowered (5 per cent), due to the bad climatic conditions at the beginning of the year,which had a marked effect on the agricultural sector.  Consequently, future growth will have to be
based mainly on investment in infrastructure, the poverty reduction programme (with a large increase
in government investment) and the expected recovery of the mining sector (due to higher global prices
for iron ore).
29. The Government intends to pursue its fiscal and monetary reforms and, at the same time, to
increase expenditure in areas deemed to be priorities, as set out in the 2002 budget and the new
Investment Code.  These reforms include the abolition of all fiscal concessions for enterprises, the
development of new incentives in the form of preferential tariffs for certain specific imports (for
exporting enterprises) and a system of free points (Chapter II(4)(ii)).  A system for collecting VAT
from enterprises is expected to be introduced.  Government funds will gradually be moved from thecommercial banks to the Central Bank and the regulations on the reserve ratio will be eased
temporarily (in order to encourage liquidity in the banks during and after the transfer of government
funds).  International aid in the form of debt reduction and support for development programmes
should help to stabilize the balance of payments.
24
                                                     
23 According to the Ministry of Economic Affairs and Development, FDI in Mauritania was estimated
at US$47.5 million in 2000 (the only year for which data are available).
24 EIU (2001).