99-0398 MOREPRESS RELEASE
PRESS/TPRB/103
2 February 1999
 TRADE POLICY REVIEW BODY
REVIEW OF TOGO
TPRB'S EVALUATION
The Trade Policy Review Body of the World Trade Organization (WTO) concluded its first
review of Togo's trade policies on 27 and 28 Janu ary 1999. 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 TRPB to conduct a collective exam ination of the full range of trade policies and
practices of each WTO member country 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 institutional framework, bilateral, regional and other
preferential agreements, the wider economic needs and the external environment. A record of the
discussion and the Chairperson's summing-up together with these two reports will be published in duecourse as the complete trade policy review of Togo and will be available from the WTO Secretariat,
Centre William Rappard, 154 rue de Lausanne, 1211 Geneva 21.
Since December 1989, the following reports have been completed: Argentina (1992 & 1999),
Australia (1989, 1994 & 1998), Austria (1992), Bang ladesh (1992), Benin (1997), Bolivia (1993),
Botswana (1998), Brazil (1992 & 1996), Came roon (1995), Canada (1990, 1992, 1994, 1996 & 1998),
Chile (1991 & 1997), Colombia (1990 & 1996), Cost a Rica (1995), Côte d'Ivoire (1995), Cyprus
(1997), the Czech Republic (1996), the Dominican Republic (1996), Egypt (1992), El Salvador
(1996), the European Communities (1991, 1993, 1995 & 1997), Fiji (1997), Finland (1992), Ghana
(1992), Hong Kong (1990, 1994 & 1998), Hungar y (1991 & 1998), Iceland (1994), India (1993 &
1998), Indonesia (1991,1994 & 1998), Israel (199 4), Japan (1990, 1992, 1995 & 1998), Kenya
(1993), Korea, Rep. of (1992 & 1996), Lesotho (1998), Macau (1994), Malaysia (1993 & 1997),
Mauritius (1995), Mexico (1993 & 1997), Morocco (1989 & 1996), New Zealand (1990 & 1996),
Namibia (1998), Nigeria (1991 & 1998), Norway ( 1991 & 1996), Pakistan (1995), Paraguay (1997),
Peru (1994), the Philippines (1993), Poland (1 993), Romania (1992), Se negal (1994), Singapore
(1992 & 1996), Slovak Republic (1995), the Solomon Islands (1998), South Africa (1993 & 1998, Sri
Lanka(1995), Swaziland (1998), Sweden (1990 & 1994), Switzerland (1991 & 1996), Thailand (1991& 1995), Togo (1999), Trinidad and Tobago (19 98), Tunisia (1994), Turkey (1994 & 1998), the
United States (1989, 1992, 1994 & 1996), Uganda  (1995), Uruguay (1992 & 1998), Venezuela
(1996), Zambia (1996) and Zimbabwe (1994).PRESS/TPRB/103
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MORETRADE POLICY REVIEW BODY
REVIEW OF TOGO
CONCLUDING REMARKS BY THE CHAIRPERSON
The first Trade Policy Review of Togo was conducted by the TPR Body on 27 and
28 January 1999.  These remarks, prepared on my own responsibility, are intended to summarize the
main points of the discussion;  they are not intended as a full report.  Further details of the discussion
will be fully reflected in the minutes.
The discussion developed under two main themes:  (i) economic environment;  and (ii) trade
measures and sectoral policies.
Economic environment
Members commended Togo on its unilateral liberalization and economic reforms.
Government revenue had increased with improved revenue collection.  The reforms and thedevaluation of the CFA franc in 1994 had resulted in high economic growth, although this contained a
catch-up element given the economic slump resulting from the socio-political crisis of the
early 1990s. Noting that progress in addressing the current account situation had been limited by
service deficits and that export competitiveness was hampered by the high costs of utilities, under
monopolist public enterprises, Members asked Togo about measures envisaged to maintain economicgrowth and diversify exports.  They inquired about the impact of the Asian financial crisis, Asia being
a destination for about one quarter of exports from Togo, and the expected effects of the WAEMU
customs union, on the economy of Togo.
Noting Togo's limited WTO involvement, some Members asked how this might be remedied.
They also inquired about progress on trade-related technical assistance to Togo under the Integrated
Programme, and sought information on measures to adjust to any reduction of preferences resulting
from multilateral liberalization.
Questions were asked about the coherence and coordination of overlapping regional
agreements, especially WAEMU and ECOWAS, to which Togo was party.  Some Members asked
about measures being taken by Togo to guard against investment distortions, particularly with respect
to export processing zones, and inquired about the impact of the WAEMU's forthcoming common
investment regime.  Participants also sought clarification on steps being taken to implement the
WAEMU Common External Tariff (CET) in January 2000, including with respect to sensitive
products, and on the way Togo intended to manage its bilateral trade agreements under the WAEMU
customs union.
The representative of Togo responded that in order to maintain economic growth and
diversify exports Togo was promoting non-traditiona l products, including processed agricultural and
mineral goods;  regional integration would contribute to this by increasing market access.  Noting that
Togo's legal environment had not contributed to the promotion of investment, she said that the
planned WAEMU common investment code, and co mmon institutional framework, would help to
attract foreign direct investment.  WAEMU was studying the introduction of common legislation on
competition and on anti-dumping.  Technical assi stance, including under the Integrated Programme,
was needed to improve Togo's involvement in the WTO.
In light of the impact of the Asian financial crisis on its economy, Togo intended to diversify
the destinations of its exports.  The current account would be improved through the liberalization ofPRESS/TPRB/103
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MOREthe services sector, the promotion of tourism and a better management of foreign debt.  On
privatization, she indicated the need for specific strategies for each public enterprise, and that ashortage of investors had delayed implementation, but that nevertheless the process was ongoing.
Structural adjustment programmes and the move to the CET were preparing the economies of
WAEMU members for increased competition;  support from the international community was
necessary.  Coordination between the ECOWAS Secretariat and the WAEMU Commission
contributed to avoiding inconsistencies between these two regional agreements.  ECOWAS members
agreed that, in the long run, it would be the only regional agreement in West Africa.  Therefore, fast
liberalization under WAEMU would contribute to spee dier regional integration in West Africa. On
preferential treatment, discussions among African ACP countries had stressed the need for ACP
members to maintain their commercial position.
Trade measures and sectoral policies
Members expressed their appreciation of Togo's considerable progress in liberalizing its trade
regime. Togo's import duties were among the lowest in WAEMU.  There was some concern that,
despite a certain simplification, the structure of border duties remained complicated;  similarly, there
was a certain worry about the high margins between bound and applied tariffs, and about the low level
of bindings for non-agricultural products.  It was pointed out that Togo's unilateral liberalization in theservices sector was not reflected in its limited WTO commitments.
Members inquired about the consistency of Togo's import duties with its economic
development objectives, and about the probable consequences of the introduction of the CET on
activities, such as re-exportation, which were currently favoured by low tariffs.  There was a certainconcern about the discriminatory application of internal specific taxes, smuggling, seasonal
prohibition of imports of potatoes and price approvals in the tourism branch.
Specific questions were raised regarding local content schemes, Togo's transit regime,
registration and customs formalities, pre-shipment inspection, standards, and measures to liberalize
the regimes for cotton, phosphates and basic services, including harbour facilities,
telecommunications and financial services. Members sought clarification on the protection of
intellectual property in Togo and on steps being ta ken to bring the Bangui Agreement into compliance
with TRIPS.  Togo was encouraged to sign the plurilateral Government Procurement Agreement.
In reply, the representative said that a single window had been established to simplify the
formalities applicable to foreign trade and the establishment of enterprises.  She took note of pertinent
comments by participants on Togo's free zone regime and pointed out that pre-shipment inspection in
Togo was required by the IMF.  On customs valuation, she confirmed that WAEMU members would
apply the "transaction-value" basis from the year 2000.  She noted that the introduction of the CET
would simplify the structure of border duties;  it would, however, also increase tariffs on products
such as "wax", sugar and milk, and she indicated that Togo and the WAEMU Commission werelooking for remedies to the socio-economic consequences of the CET.  She also indicated that with
the introduction of the CET, the WAEMU intended to renegotiate the WTO tariff concessions of its
members.  The community solidarity levy (PCS) and the community levy (PC) were collected by all
members on behalf of WAEMU and ECOWAS, respectively.
On smuggling, goods in transit were transported under escort of customs agents to the border
of importing countries;  customs administration in WAEMU member countries would be restructured
for efficiency purposes.  On issues such as quantitative restrictions and standards, common legislation
was scheduled to be introduced within the WAEMU framework.  The Bangui Agreement on
intellectual property rights was being revised to br ing it into conformity with TRIPS.  The port of
Lomé had been restored and its management was being improved.  The liberalization of
telecommunication services was scheduled to lead to the privatization of Togo Telecom before the
year 2001, and the privatization of state-owned banks was under way.PRESS/TPRB/103
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ENDIn conclusion, it is my feeling that Members welcomed the participation by Togo in the
review process and the significant steps taken by Togo towards more open and deregulated economicand trade regimes.  Members recognized the difficulties of such major adaptation, particularly given
the challenges faced by Togo as a least-developed country with a small resource base, and in the wake
of recent socio-political problems.  They offered strong encouragement to Togo to consolidate and
build on the achievements of recent years.  Members were conscious that, if the policies pursued
domestically are to achieve the desired results, it would be important that Togo continue to build afavourable environment for private capital, and that it would also be important for Togo to receive
support at the regional level and within the multilateral trading system.