Note: Advance written questions by WTO Members and replies provided by the delegation of
Mauritania are reproduced in document WT/TPR/M/103/Add.1 and will be available online
at:  http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.WORLD TRADE
ORGANIZATIONWT/TPR/M/103
22 October 2002
(02-5791)
Trade Policy Review Body
11 and 13 September 2002
TRADE POLICY REVIEW
MAURITANIA
Minutes of Meeting
Chairperson:  H.E. Mr Pekka Huhtaniemi (Finland)
Page
I. OPENING REMARKS BY THE CHAIRPERSON 3
II. OPENING STATEMENT BY THE REPRESENTATIVE OF MAURITANIA 4
III. STATEMENT BY THE DISCUSSANT 6IV. STATEMENTS BY MEMBERS OF THE TRADE POLICY REVIEW BODY 8
V. REPLIES FROM THE REPRESENTATIVE OF MAURITANIA AND
ADDITIONAL COMMENTS 12
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 17WT/TPR/M/103
Page 3
I. OPENING REMARKS BY THE CHAIRPERSON
1. The first Trade Policy Review of Mauritania was held on 11 and 13 September 2002.  The
Chairperson welcomed the delegation of Mauritania, headed by H.E. Mr Isselmou Ould Abdel Kader,
Minister for Trade, Handicrafts and Tourism, a nd the discussant, H.E. Mr Hatem Ben Salem.  As
usual, the discussant would speak in his personal capacity and not as a representative of his country.
In accordance with established procedures, the discussant had made available in advance a broad
outline of the themes he intended to raise (WT/TPR/D/82).
2. The Chairperson recalled the purpose of the Trade Policy Review and the procedures of the
meeting.  The Report of the Government of Mauritania was contained in document WT/TPR/G/103
and that of the WTO Secretariat in document WT/TPR/S/103.  The delegation of Mauritania had
received a copy of the written questions submitted by the European Union, the Republic of Korea,
Japan, Canada, and the United States.  The written replies provided by the delegation of Mauritania tothese questions and others raised during the meeting are reproduced in WT/TPR/M/103/Add.1.WT/TPR/M/103
Page 4
II. OPENING STATEMENT BY THE REPRESENTATIVE OF MAURITANIA
3. The representative of Mauritania expressed the hope that, under the Chairperson's guidance
and with the major contribution by the discussant, Ambassador Hatem Ben Salem, the first Trade
Policy Review of his country would help to make its  policies known and lead to fruitful dialogue with
the Trade Policy Review Body.
4. He gave an overview of the vast and ambitious reforms undertaken by Mauritania in recent
years and the positive results obtained in both economic and political terms.  He emphasized thatMauritania had been the first sub-Saharan African country to finalize a Poverty Reduction Strategy
Paper (PRSP).  In order to attain the objectives set in the PRSP, the Government had made efforts to
consolidate the reforms undertaken and promote the stability of the macroeconomic environment,
while at the same time pursuing its efforts to reorganize government spending, boost the domestic
private sector, promote foreign private investment, and enhance the economy's competitiveness bydeveloping export-oriented sectors.  An action plan to consolidate and modernize the tax and customs
authorities had also been implemented.  The recent reform of customs tariffs had allowed customs
duties to be lowered and had simplified the tariff structure as part of the reforms initiated in various
sectors of the economy.
5. In order to boost the economic liberalization process and improve the business climate,
several trade facilitation measures had been taken, for example, the restructuring and streamlining of
the banking sector;  simplification of currency procedures and liberalization of the exchange regime;
privatization of the insurance sector;  liberalization of foreign trade, freeing of prices, and expansion
of competition;  establishment of a flexible import inspection system.  Those measures had facilitated
the implementation of several sectoral reforms.  He briefly outlined the main trends in sectoral
policies and the reforms undertaken covering various sectors of the economy, for example, fisheries,
mines, agriculture, energy, telecommunications, new information and communications technology,tourism, and handicrafts.
6. The objective of all the aforementioned reforms and policies was to promote economic and
social progress in Mauritania and ensure its economy's integration into the multilateral trading system.
The Government attached great importance to cooperation at all levels, deeming it essential for
achieving integration.  Mauritania, as a traditional crossroads for trade between the Maghreb and sub-Saharan Africa, intended to utilize to the full the advantages conferred by its favourable geographical
situation under the new partnership for development in Africa, which made subregional cooperation
the cornerstone for greater economic integration at the African level.
7. He summarized the trade-related agreements in force between Mauritania and other parties
and indicated that the diversity and large number of bilateral agreements underscored hisGovernment's determination to perpetuate and develop the ancient vocation of the Mauritanian people
who, over several centuries, had established close li nks with their neighbours and even further afield.
Mauritania remained open to trade and cooperation with all countries in the world and considered that
globalization could and should contribute to bringing peoples together, eliminating poverty, and
raising standards of living.
8. He reaffirmed the vital importance attached by Mauritania to the WTO Agreements and the
trade liberalization process, which should be a tool for development and reducing poverty.  The
Mauritanian Government endorsed the objectives of the Doha Development Agenda, whose
implementation should remedy the imbalance in the multilateral trading system and thus allow
developing countries to obtain their fair share of the positive effects of globalization.  In thenegotiating process, Mauritania's major concerns related to issues concerning the implementation of
the Uruguay Round Agreements, services, agriculture, the Agreement on Trade-Related  Aspects ofWT/TPR/M/103
Page 5
Intellectual Property Rights (TRIPS), special and differential treatment, and technical assistance.  He
recalled, however, that Mauritania, like other developing countries, still faced problems inunderstanding and implementing the WTO Agreements;  the lack of human, technical and
institutional resources was a constraint in implementing the commitments undertaken and an obstacle
to Mauritania's participation in the present negotiations.
9. With regard to the negotiations, the representative of Mauritania emphasized the importance
of the services sector and agriculture for his country and expressed the hope that the gradualliberalization of services would take into account both the fragility of the economies of least-
developed countries (LDCs) and the essential role played by services in growth, combating poverty,
and in development, and that the negotiations unde r way would lead to an international environment
more favourable to development of the agricultural sector, while at the same time taking into account
the need for food security.  Regarding the TRIPS Agreement, the provisions on transfer of technologyto LDCs had not been put into effect.  Their impl ementation was essential, just as it was essential to
take into account the concerns of developing countries regarding public health, particularly access to
medicines, the protection of folklore, traditional knowledge and biological resources.
10. He described the efforts made to protect human, animal and plant health.  He also referred to
the problems faced by Mauritanian products in obtaining access to certain foreign markets because ofinternal weaknesses and the stringency of the sanitary and phytosanitary measures and quality
standards imposed by certain potential partners.  To overcome those constraints, Mauritania sought
technical support in order to improve the quality of its export products and thus derive greater benefits
from the liberalization of trade.
11. Regarding special and differential treatment, he considered that the provisions were not
sufficiently binding so their impact  remained limited.  In order to put them into effect, it was essential
to draw up a binding agreement that dealt with th e cross-cutting and sectoral issues, together with
modalities for the elaboration of technical assistance programmes.
12. As far as the Integrated Framework (IF) for Trade-Related Technical Assistance was
concerned, Mauritania considered that it had taken all the measures and completed all the stages for
which it was responsible as a pilot country.  Consequently, the time had come to go beyond meetings,
studies and consultations and take practical action.  For this purpose, the Mauritanian Governmentwould shortly organize a round table.  After having thanked the Commission of the European
Communities for having agreed to be the lead donor, Mauritania expressed the hope that the
Commission would be fully involved in preparations  for the round table, which would be decisive not
only for Mauritania as the pilot country but also for the evaluation of the IF by the General Council at
the end of the year.  The credibility of the IF was at stake because if the pilot phase did not lead totangible results for the three pilot countries, there would be no point in extending it or even continuing
it.  The WTO should consider the most appropriate ways and means of reinforcing technical
assistance to the poorest countries, which were facing particular challenges that called for an urgent
response.  The international community should give the capacity-building programmes sufficient
resources and eliminate barriers and constraints that accentuated the marginalization of thosecountries.  The potential offered by globalization made a significant contribution to that objective and,
consequently, to laying down the bases for an in ternational trade environment based on transparent,
predictable and more equitable rules.WT/TPR/M/103
Page 6
III. STATEMENT BY THE DISCUSSANT
13. The discussant (H.E. Mr Hatem Ben Salem) noted the convergence between the analyses to
be found in the reports submitted respectively by the WTO and the Mauritanian authorities regarding
the ongoing and irreversible commitment of the Government of Mauritania to liberalization of its
economy and its determination to complete the process.
14. The discussant provided an overview of the reforms undertaken by Mauritania since the late
1980s with a view to liberalizing the economy and foreign trade and strengthening the nationallegislative framework.  Together with the adoption of prudent macroeconomic policies and foreign
support, those efforts had allowed the Mauritanian economy to make notable progress that had led to
steady growth of the economy, control of inflation and a marked improvement in government finance
and the balance-of-payments.
15. Nevertheless, he pointed out that, despite the successful reforms, Mauritania remained a LDC.
Combating poverty and improving living conditions were permanent features of the Government's
policy, which viewed international trade as an essential tool for economic development.  The question
was what were the main factors that at present affected the pace of implementation of measures to
liberalize the Mauritanian economy?
16. The discussant drew attention to the relative importance of the sectors in Mauritania's
economy, which was still dominated by services and agriculture in terms of contribution to the GDP,
and by mining and fisheries in terms of exports, whereas the manufacturing sector was still under-
developed.  This was deemed to be quite normal at Mauritania's stage of development.
17. He underlined the importance of international trade for Mauritania's economy, but also
warned that the present concentration of Mauritania's foreign trade in terms of goods and partners
could make it vulnerable to fluctuations in the price of its exports and even more dependent on its
trade partners, a situation that also applied to other developing countries.  He would like informationon the possibilities for diversifying exports and partners and on the establishment by the authorities of
the planned entity to promote exports and strengthen that approach.  The opening of the Tourism
Board was a positive sign.
18. The discussant summarized the commitments undertaken by Mauritania at the conclusion of
the Uruguay Round and recalled that Mauritania had not been involved in any dispute settlement case.Mauritania had not, however, made the annual notifications required under the WTO Agreements.
Mauritania should be given an appropriate assistance programme so that it could meet the
commitments arising out of its accession to the WTO and, in that respect, the opportunity for the
Mauritanian authorities to benefit from the implementation of the IF should be assessed.
19. He also reviewed the preferential regimes in industrialized countries, from which Mauritanian
exports benefited, and the trade agreements applicable to Mauritania.  The immediate result of
Mauritania's withdrawal from  the ECOWAS at the end of 1999 had been to limit access by
Mauritanian economic operators to the markets of Senegal and Mali because of the increase in
customs duties.
20. He summarized the main measures taken by Mauritania in recent years to liberalize its trade
regime, emphasizing that customs tariffs were Mauritania's principal trade policy instrument.
Mauritania did not have a standardization and quality control system nor did it have an adequate
infrastructure for testing and metrology.  The question was how the Government could ensure that
imported products complied with international quality standards.  Another issue concerned theWT/TPR/M/103
Page 7
measures taken by the Mauritanian authorities to combat dumping in the absence of legislation on the
implementation of anti-dumping, countervailing and safeguard measures.
21. The liberalization also extended to the export regime.  Mauritania did not impose any bans or
quantitative restrictions on exports and the only export taxes applied to products of the pelagic and
small-scale fishing industries.
22. Regarding sectoral developments, the discussant indicated that Mauritania's production
structure remained relatively stable.  In terms of  contribution to the GDP and jobs, the traditional
sectors continued to dominate the economy.  Agriculture had become less important since the 1980s
but still remained the second most important sector after services in terms of  contribution to the GDP.
The Government had adopted a national rural development strategy for the period 2002-2015.  In that
connection, he requested further details concerning the content of the strategy and the results expected
from its implementation.  In terms of exports and contributions to the State's revenue, the dominantsectors were fisheries and the mining sector.  The manufacturing centre was relatively recent and
mainly consisted of the agrifood and chemicals industries.  He noted that Mauritania did not apply any
special sectoral trade policies.
23. He summarized the main orientation of agricultural, fisheries and mining policy and the
principal reforms undertaken since Mauritania became independent.  Regarding agricultural policy,the Government's priority remained food security.  In order to encourage the production of good
quality competitive products, measures had been taken to open the sector up to competition, abolish
all forms of protection and lower taxation.  He would like to have further details about those
measures.  Regarding fishing, he pointed out that the question of fishing subsidies constituted an
important subject of negotiations in the Negotiating Group on Rules;  there was a difference of
opinion between those who were in favour of elimin ating subsidies and those in favour of keeping
them.  The question was what approach Mauritania intended to adopt in the relevant negotiations.
24. He noted the praiseworthy efforts made by Mauritania to become better integrated in the
multilateral trading system and referred to the Policy Declaration on Good Governance of
8 December 1999, which called on the State, the private sector and civil society to contribute to
sustainable human development in accordance with their respective roles.  Mauritania had established
a legislative structure that covered several spheres of economic activity (trade, investment,competition, customs, energy, services) and met the requirements of the multilateral economic and
trading system.  In order to derive greater benefit from the rules under the system, it would be to
Mauritania's advantage inter alia  to expand its export capacity by diversifying exportable products,
improving the port and road infrastructure, and strengthening its human resources in the area of trade
negotiations.  Technical assistance by partner countries and relevant international organizations had arole to play in that respect.WT/TPR/M/103
Page 8
IV. STATEMENTS BY MEMBERS OF THE TRADE POLICY REVIEW BODY
25. Members welcomed the Minister and the Mauritanian delegation and thanked him for his
presentation on behalf of his Government.  They also thanked the Secretariat for its report and the
discussant for the pertinent remarks he had made dur ing the review.  They noted that Mauritania had
been able to maintain economic growth and improve the investment climate by undertaking a number
of economic reforms over the years.
26. Members also noted that Mauritania recognized the role played by international trade in its
economic development and in combating poverty.  It was therefore important to ensure that
Mauritania could benefit fully from its integration into the international trading system.  Mauritania
had reinforced its global integration by participatin g in the multilateral trading system and in regional
and bilateral initiatives.
27. The representative of Morocco congratulated Mauritania on its reforms and noted the
Government's determination to comply fully with  the WTO Agreements, particularly as regarded
transparency and non-discrimination.  He referred to  the ancient links between the two countries and
the fruitful cooperation in the area of maritime fishing, training of management staff, transport and
investment, which had taken place in a spirit motivated by the goals and objectives of the Arab
Maghreb Union.  Morocco welcomed the fact that Mauritania belonged to the group of pilot countriesfor the Integrated Framework for Technical Assistance and stressed that it should continue to be given
sustained technical assistance so that it coul d fully comply with its obligations under the WTO
Agreements and derive more substantial benefits from trade's positive impact on its economic
development.
28. The representative of the United States congratulated Mauritania on having shown its
commitment to bring its foreign trade regime in to line with the WTO rules and on the important
measures already taken.  He drew attention to the benefits of the Trade Policy Review, especially forLDCs that had undertaken to bring their foreign trade regimes into compliance with the WTO rules
and to open up their markets but which rarely had an opportunity to discuss their trade policies and
practices with their trade partners.  He emphasized that development was not only essential in order to
raise standards of living but also for the maintenance of democracy.  He stated that United States
policy towards Mauritania was based on the commitment to support the economic and politicalreforms through bilateral means, for example, the African Growth and Opportunity Act (AGOA), and
the GSP, and through multilateral means such as United States support since March 2000 for
reduction of Mauritania's debt under the World Bank's HIPC initiative.  The United States encouraged
Mauritania to pursue reform and economic progress in order to lower the high levels of poverty;
Mauritania could serve as a model for other LDCs.
29. The United States recognized Mauritania's legiti mate need for technical assistance to help it to
implement fully the WTO Agreements and to participate in the Organization's work, and it supported
the multilateral initiatives on trade-related technical assistance.  The United States endorsed the
Mauritanian Government's statement that the time had come to translate the studies conducted (in the
IF context) into practical activities and it was to be hoped that during the meeting the delegation ofMauritania would define its priority fields of action and explain how the IF could help in meeting its
priority needs.
30. The United States had shown its concern, particularly regarding the areas in which
Mauritania's trade policies and practices were not in compliance with commitments under the WTO
Agreements and the areas for which Mauritania should submit the required notifications to WTOCommittees.  The United States was aware that it was difficult for a government facing constraints in
terms of capacity and resources to comply with all its obligations and therefore considered thatWT/TPR/M/103
Page 9
priority should be given to transparency.  The first step should be to remedy the shortcomings
indicated in the Report of the Secretariat and mentioned by the members of the Trade Policy ReviewBody.
31. After having acknowledged the importance of the economic reforms undertaken by
Mauritania, the representative of the European Union (EU) encouraged the Government of Mauritania
to pursue the process with determination in order to reach a sustained level of economic development.The EU also referred to the close trade links it had with Mauritania as its leading trade partner andunderlined the importance of the ACP – EU Agreement signed at Cotonou in June 2000, which
established inter alia  the basic principles for the negotiation of economic partnership agreements
(EPAs) with the ACP regions participating in a regional economic integration process such as the
ECOWAS and the WAEMU.  The EU reaffirmed its determination to continue giving priority to its
commitments under the EPAs and to the developm ent of ACP countries.  Under the Cotonou
Agreement and the "Everything but Arms" initiative for LDCs, Mauritanian products enjoyed
non-reciprocal preferential treatment on the Union's market.  In that connection, he wished to know
how Mauritania proposed to take advantage of duty-free access and what results it expected because,
for the moment, it was not fully benefiting from the GSP and the "Everything but Arms" initiative.
32. The EU welcomed the rapid adoption of the Action Plan under the IF in April 2002 and
Mauritania's intention to integrate it into the PRSP.  The EU would like to point out, however, that the
Action Plan should not only be integrated into the Government's trade strategy but measures should
also be taken to incorporate the recommendations into other sectoral and general development
policies.  The EU also welcomed the Government's declared determination to translate the studies
conducted under the IF into concrete action and expressed its willingness to do everything possible to
mobilize external resources and seek the maximum funding from various sources.  In the meantime,
the EU would like to be informed of the way in which the recommendations in the Action Plan thatdid not depend on external financing but were the responsibility of national authorities had been
implemented or were shortly to be implemented (for example, the consideration of the Investment
Code).
33. The EU was aware of the problems in inte grating LDCs into the global economy and
underscored the importance of other efforts to be made  at the multilateral level, for example, in the
negotiations under way, so as to help Mauritania adapt to the global economic environment and take
into account its special features.  The EU noted with appreciation the importance attached by
Mauritania to the multilateral trading system within the WTO and reaffirmed its commitment to
cooperating with the LDCs in the current negoti ations so as to find ways and means of best
responding to their interests.  He hoped that Mauritania would adopt a proactive and constructiveapproach so that its concerns were taken into account.
34. The representative of Japan referred to the economic reforms undertaken by Mauritania since
1980 and noted the outstanding problems, for example, poverty, public debt and the vulnerability of
Mauritania's economy to external shocks.  She said that continuation of economic reform would help
to improve the economic situation and Japan had supported Mauritania's efforts through technicalcooperation in the areas of health, medical treatment, water supplies, food and fisheries, and it was
ready to pursue the effort.
35. Japan welcomed the reduction and harmonization of Mauritania's MFN rates, while at the
same time pointing out that the bound rates remained high and it urged Mauritania to bridge the gap
between the bound and applied rates during the current negotiations.  Japan also congratulatedMauritania on pursuing the liberalization and privatization of services, especially financial and
telecommunications services, and asked whether there were any limitations on the number of licencesWT/TPR/M/103
Page 10
that could be granted in the telecommunications sector.  She also requested further details concerning
the consistency of Mauritania's measures on labelling with the WTO Agreements.
36. The representative of Canada said that the reforms undertaken by Mauritania since 1992 sent
a positive signal to the international business community and showed that Mauritania was on the right
path.  He encouraged Mauritania to continue along the same lines.  Canada reaffirmed its support for
Mauritania's poverty reduction strategy and its social development objectives.  He said that the
Canadian International Development Agency (CIDA) had bilateral and partnership projects in theareas of maternal and child health, basic education, food and nutrition, access to clean water, fisheries,
and business activities for women.  Canada also informed participants that, as of 1 January 2003, the
Government of Canada would grant out-of-quot a duty-free access for all imports from 48 LDCs
including Mauritania with the exception of dairy products, poultry and eggs.  He expressed the hope
that Mauritania would be able to benefit from that initiative.
37. Canada urged Mauritania to lower the bound level of its tariffs, to bind more tariff lines
during the Doha Negotiating Round, and to pursue its efforts to put in place transparent and simplified
customs procedures.  He emphasized that trade liberalization would in the long term assist
Mauritania's participation in the global economy and its social development.  Canada encouraged
Mauritania to pursue its efforts to bring its industries up to a level consistent with internationalstandards and to establish a quality control system, an appropriate infrastructure, and legislation on
anti-dumping, countervailing and safeguard measures.  At the sectoral level, in order to lessen
dependence on raw material prices, Mauritania should adopt a concerted sectoral trade policy by
liberalizing the agricultural, mining, fisheries and fish processing sectors.  Canada expressed its
interest in working with Mauritania so as to ensure  that the outcome of the current negotiations helped
developing countries to take full advantage of the international trading system.  He also urged
Mauritania to ratify the WTO Plurilateral Agreements.
38. The representative of Canada noted the technical assistance needs identified in the
Secretariat's Report and congratulated Mauritania on having successfully completed all the stages in
the IF for technical assistance and for being one of the first three countries selected for the pilot phase.
He also emphasized that the most effective technical assistance was that provided on the basis of
clearly identified needs.  Canada had contributed $1 million to the IF in order to help developingcountries to integrate trade into their poverty reduction initiatives.  Canada was certain that several of
the needs identified by Mauritania would be met under the IF.
39. The representative of Senegal congratulated Mauritania on the State's withdrawal from
several sectors and encouraged it to continue along those lines.  He also underscored the efforts made
by Mauritania in key sectors of the economy, which he considered to be a demonstration of thecountry's determination to become integrated in th e multilateral system.  Regarding the Secretariat's
Report, he pointed out that any agreement with Senegal had to be concluded within the framework of
the West African Economic and Monetary Union (WAEMU).
40. The representative of India welcomed the fact that the reforms implemented had led to
economic growth in Mauritania and he found it encour aging that Mauritania considered international
trade to be a tool for combating poverty.  India was appreciative of Mauritania's determination to
comply with its commitments in the WTO, including simplification of its trade regime.  India shared
the concerns expressed by Mauritania regarding the implementation of the IF, special and differential
treatment, technical assistance, transfer of technology, public health, access to medicines and the
protection of folklore and traditional knowledge.  India expressed the hope that the relations betweenthe two countries would develop in the future.WT/TPR/M/103
Page 11
41. The representative of Hong Kong, China noted with satisfaction that Mauritania had made
unstinting efforts to simplify its tariff regime and lower the duties applied.  He called on Mauritania to
pursue trade liberalization, to extend its tariff bindings to the non-agricultural sector, to bridge the gap
between the applied and bound rates so as to reduce uncertainty and improve the predictability of its
tariff regime, to examine the question of the high rate of tariffs applicable on products such as
footwear and headgear, textiles and clothing, etc., and as soon as possible to transpose the tariff
bindings into the Harmonized System nomenclature (H S).  He also urged Mauritania to abolish the
3 per cent statistical fee applied to the majority of imported products, which meant an additional levy
for its trade partners.
42. He also noted that Mauritania had not yet met requirements on notifications under the WTO
Agreements and hoped that, with Secretariat assistance, it would submit the relevant notifications.  He
would like to know the justification for the seemingly discriminatory treatment regarding mandatorylabelling of imported products in comparison with domestic products and whether the Mauritanian
authorities were planning to abolish it.  He congratulated Mauritania on the liberalization of various
services sectors such as telecommunications and financial services, and urged it to reinforce its
liberalization efforts in terms of specific  commitments in the current negotiations.
43. The representative of Djibouti noted Mauritania's determination to become integrated in the
global economy and emphasized that it was not easy fo r an LDC.  Djibouti therefore urged Members
to show indulgence when reviewing the trade policy of this LDC.
44. The representative of Mauritius noted with great satisfaction Mauritania's commitment to
liberalizing its economy and amending its trade legislation.  He had seen an improvement in
Mauritania's trade environment following the re forms undertaken.  He hoped that the current
negotiations on agriculture in the WTO would help countries such as Mauritania and Mauritius to
consolidate the sector so that they could embark upon an agricultural diversification policy.  Fishingwas a sector in which there could be fruitful trade between the two countries.  He underlined the
importance of international community support for Mauritania to allow it to combat poverty and
enhance its economic structure through technical assistance.
45. The representative of Zambia said that he had been impressed by Mauritania's determination
to liberalize its economy and he emphasized that the success of its efforts could only be measured in
terms of a reduction in the level of poverty in Mauritania.  Zambia called on development partners to
finance the projects submitted by Mauritania under the IF.
46. The representative of Mauritania welcomed the statements and comments made by
delegations on Mauritania's trade policy.  He said that, when examining Mauritania's trade policy, its
history and the progress made in comparison with the past had to be taken into account.WT/TPR/M/103
Page 12
V. REPLIES FROM THE REPRESENTATIVE OF MAURITANIA AND ADDITIONAL
COMMENTS
47. The Chairperson invited the representative of Mauritania to focus his responses on three main
themes:  (i)  economic environment;  (ii)  trade measures;  and (iii)  sectoral policies.
(i) Economic environment
48. The representative of Mauritania emphasized that the Mauritanian Government had
withdrawn from the major production and marketing sectors and its principal objective was to
promote the development of a dynamic private sector and make Mauritania more competitive and
more attractive to foreign private investment.
49. The Government was also aware of the need to pursue a sound policy on diversification of
sectors that had potential for development of production and exports, for example, agriculture,livestock or fisheries.  In the agricultural sector, government policy was aimed at increasing
productivity and diversifying production.  For example, the fruit and vegetables sector offered export
possibilities.  Livestock had important export potential, while milk, hides and skins, red meat and
cattle were potential sources of diversification.  The impact of the fishing sector on the domestic
economy was modest compared with the potential.  The Government was endeavouring to remedy thesituation.  A number of plants had been established and Government authorities were encouraging the
private sector to take greater advantage of the opportunities afforded by the sector, in particular, for
processing.
50. The Government had drawn up a PRSP using a participatory approach that had brought
together all development actors (Government authorities, elected representatives, civil society, private
sector, donors).  The strategic framework's preparatory process, objectives, strategic approaches and
plan of action had been approved by all donors.  After one year of implementation, substantial effortshad been made to reduce poverty and improve the people's living conditions.  Those efforts had led to
the following:  accelerated growth and maintenance of a stable macroeconomic framework;  definition
of priority areas (rural and urban development, education, health and water resources);  institutional
capacity-building and good governance.  The results of the surveys undertaken confirmed the
relevance of the strategic approaches adopted and the priority programme for 2001-2004.  In order totake into account local specificities, regional poverty reduction programmes were being prepared.
51. The promotion of institutional development and good governance was one of the major axes
of the PRSP.  The Declaration on Good Governance, adopted in 1999, underscored the Government's
determination to achieve that objective.  The policy was based on transparent implementation of
legislation and its publication.  With a view to transparency, the Government had established a portaland websites in several ministerial departments for the widespread dissemination of the legislative and
regulatory texts in effect.
52. The adoption of a new Investment Code responded to a need to enhance the business climate
and was in line with the priority now given to the private sector in its role as a motor of the economy.
Its objective, inter alia , was to encourage direct investment and make it safer, and to facilitate
administrative procedures in order to attract the greatest possible flow of foreign direct investment.
53. In the energy sector, the objective of the Government's policy was to involve the private
sector to a greater extent in financing the infrastructure, guaranteeing supplies of hydrocarbons,
expanding the electricity infrastructure and improving the quality of service to all users.  In the
hydrocarbons subsector, the liberalization policy would be pursued in order to obtain better terms ofWT/TPR/M/103
Page 13
supply.  The studies undertaken had led to the establishment of a mechanism to determine prices
applicable to all chains (import, transport and distribution) based on global price trends.
54. Mauritania was a member of the Arab Maghreb Union, whose agreements provided for a
preferential regime.  It also belonged to the ACP and LDC groups and benefited from the preferences
granted under the Cotonou Agreement and the "Everything But Arms" initiative of the EU.  It was one
of the parties eligible to benefit from the AGOA.  Bearing in mind its very limited export capacity,
however, Mauritania had not yet taken full advantage of those preferential terms.  The preferencesgranted by the EU could act as an incentive for the diversification programme due in particular to its
geographical proximity.
55. Mauritania urgently needed to build its human and institutional capacity.  As far as the IF was
concerned, the Action Plan adopted by the Government in April 2002 and transmitted to the WTO
defined the priority action for enhancing the competitiveness of the domestic economy and itsintegration into international trade.  Mauritania welcomed the willingness expressed by the
representative of the EU and strongly hoped that it  would become involved in preparations for the
round table.
56. The discussant took note of Mauritania's determination to diversify its production.  He viewed
with satisfaction the initiatives taken to develop the Senegal River and the potential for diversification
in the agricultural sector.  He also noted the importance of diversifying the countries to which
Mauritania exported and the AGOA provided an opportunity in that respect.  He drew attention to the
importance of poverty reduction as an element that could be favourable or unfavourable to
Mauritania's economic environment and he called on Mauritania to look to the experience of Tunisia,
which had set up a national solidarity fund to allow the population as a whole to help in combating
poverty.  In this connection, he drew attention to th e impact of colonization as an historical handicap.
57. Mauritania's Declaration on Good Governance re presented a real charter for political and
social progress.  The use of information technology should facilitate wider access to information.
Mauritania's appeal for technical cooperation activities to build its institutional and human capacity in
respect of notifications should be heeded by the WTO.  He hoped that, on the basis of Mauritania's
example, a genuine capacity-building policy could be established.  In that connection, he underscored
the importance of the round table.
58. The representative of the European Union thanked the representative of Mauritania and
underlined the importance attached by his delegation to the IF.  In that connection, he asked when
Mauritania envisaged holding the round table.
59. The Chairperson drew attention to the role th at could be played by the ITC in promoting
Mauritania's exports.  He then noted that Mauritania belonged to the LDC group and had potential in
the petroleum, gas, agricultural and fishing sectors.  He therefore sought clarification regarding
Mauritania's intention to move out of the LDC group in the future.
60. The representative of Mauritania said that his country had considerable agricultural potential
in comparison with its population;  Mauritania was 65 per cent desert with wetlands, and an irrigable
strip of 150,000 hectares along the Senegal River.  Mauritania had defined its agricultural policy totake into account fears of a food and cereal deficit, focusing on rice production.  Over the past few
years, as a result of the new agricultural development strategy, Mauritania had decided to diversify its
production and to produce vegetables in the lean season, which were now starting to be exported to
Europe.  He drew attention to the problems and constraints faced by Mauritania in that respect.WT/TPR/M/103
Page 14
61. Mauritania also wished to export to other continents, including America, but was finding it
difficult to bring its products up to standard due to the lack of technology.  The 2002 drought couldhowever endanger the current efforts to diversify.  Mauritania relied on the generosity of the
international community to make up its cereal defici t.  He drew attention to the links with Tunisia,
while emphasizing the special nature of the PRSP:  it was a charter, a consensual instrument defined
by social partners.  Information technology was used as a tool for promoting good governance.  A
Secretariat of State for New Technology had been created with the task of developing new technologyand making computer tools available to all the population, including those in rural communities.
62. The notifications problem was due to limited institutional and human capacity.  Mauritania
re-emphasized its need for technical cooperation.  It had informed members that it wished to organize
a round table during the first week of November 2002.
63. Mauritania considered that its membership of the group of LDCs should give it special
treatment in several areas.  In practice, however, the benefits had not been equal to the commitments
made.  For example, the Integrated Framework for Trade-Related Technical Assistance had not yet
led to practical action.  Nevertheless, the Mauritanian Government was making every effort to speed
up its people's economic and social progress and its fulfilment in all spheres was the ultimate
objective of the  Government's action.
(ii) Trade measures
64. The representative of Mauritania said that at the end of the 1990s the trade regime had been
greatly simplified and liberalized.  Tariff rates had been lowered, the number of taxes reduced,
reference prices had been abolished for the majority of products, and the HS classification of goods
had been applied.
65. Imports of goods of a value exceeding US$5,000 were subject to the import inspection
programme, for which the SGS had been given responsibility by the Government, which paid the
inspection fees.  Prior to submitting a customs declaration, an importer must be in possession of a
certificate of origin, as determined in the agreements, if he wished to take advantage of the benefits
related to origin.  Since 1 June 2000, the transaction value had been applied;  operators must comply
with it and attach to their declarat ion a form attesting to the value.
66. From 1997 to 2000, the Government, with technical assistance from the IMF, reformed
taxation so as to lower, simplify and harmonize taxes.  The goals of the reform were:  (i)  to lower the
cost of imports;  (ii)  to eliminate barriers to the development of international trade-related economic
activities;  (iii)  to make the Mauritanian market more open;  and (iv) to prepare industrialists to
become better adapted to the impact of keener international competition.
67. The customs tariff comprised a fiscal duty at four rates (0, 5, 13 and 20 per cent) a statistical
fee of 3 per cent, VAT at 14 per cent, and excise duty on certain products.  An advance payment of
4 per cent, deductible from the BIC at a rate of 100 per cent, was payable upon import.  Mauritania's
tariff structure was comparable to others in the sub-region.  The majority of exemptions had been
abolished and a transparent environment favourable to private investment had been put in place,together with new tax arrangements relating to government procurement financed from outside
sources.  The Customs Code also included the industrial storage regime;  the free zone regime in the
Investment Code was particularly attractive to the private sector.
68. The Chairperson invited Members to refer to the written replies submitted by Mauritania,
which contained further details on various subjects.WT/TPR/M/103
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69. The discussant requested clarification of the tax arrangements for government procurement
with outside funding, namely, whether they meant that such contracts were not taxed or whether they
were an incentive to protect foreign investors by establishing more transparent taxation.
70. The representative of the United States emphasized that one of his delegation's concerns
related to customs valuation and the existence of a number of tariff surcharges that might affect the
transparency and predictability of the system.  The United States would respond to Mauritania's
written replies in the coming weeks.
71. The representative of Mauritania said that the taxation of government procurement should be
seen as part of the reform relating to exemptions.  With the assistance of the IMF and the World Bank,
Mauritania had taken a number of steps to end exemptions, only leaving those under the Vienna
Convention (diplomatic privileges) and donations by NGOs intended for distribution.  All other
operations, with the exception of those covered by the Mining Code and the Investment Code, weretaxed, and the only applicable texts were now the Customs Code and the Taxation Code.
72. Mauritania had four rates of tax.  The Government had made efforts to ensure that the
effective level of protection did not constitute a mechanism to protect industries from international
competition.  The Mauritanian system was transparent.  The State was a taxpayer and therefore had to
pay taxes;  in the case of Government contracts, it paid the taxes.  If the contract was funded fromoutside sources, the relevant tax was paid by the State.  The bidders' guide described the relevant
procedures.  A single window for payment of taxes had now been set up.
(iii) Sectoral policies
73. The representative of Mauritania emphasized that the agricultural development strategy was
based on the coordinated and decentralized implementation of a series of policies and programmes
designed to promote the principal agricultural production sectors;  the development of the ruralinfrastructure;  the implementation of institutional measures and organization of the sector;  and
policies to protect natural resources.
74. Since 1985, with the support of its development partners, the Mauritanian Government had
made considerable efforts to elaborate and implement a consistent fisheries policy.  In 1998, a
fisheries strategy had been adopted and its main objectives were to conserve resources;  integrate thesector into the domestic economy;  build institutional capacity in the sector;  and protect the
environment and maritime security.
75. In the mining sector, the major strategic objectives were the following:  to strengthen the role
of the private sector;  to promote the export of new resources, in particular, mineral ores of high
commercial value;  to diversify mining products, partners, outlets and production methods.  In the
hydrocarbons sector, the following basic principles guided policy:  gradual liberalization of activities,
non-discrimination and free access to structures;  environmental protection and improving the safety
of installations; harmonization of product prices with prevailing market prices;  and guaranteeing
supplies.
76. Regarding services, the Government had in recent years implemented a broad liberalization
and privatization policy on insurance, banking, education, and medicine.  A microcredit system had
also been established with international cooperation.  The private sector was totally responsible for
tourism and the State was only a facilitator.  Mauritania wished to update its schedule of commitments
on services and had requested assistance for that purpose.WT/TPR/M/103
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77. The representative of the European Union, referring to the document containing the written
replies, requested clarification concerning the marketing monopoly enjoyed by the Mauritanian Fish
Marketing Company (SMCP), a marketing mechanism that did not appear to be effective.
78. The representative of Mauritania pointed out that the SMCP had been established when the
context was relatively unstable and its objective was to resolve the chaotic situation in the sector.
Subsequently, it was found that the company was no longer compatible with the Government's
liberalization intentions, but it was not possible suddenly to abolish that mechanism for regulating andharmonizing negotiations.  Currently, the SMCP was a semi-public company (the private sector held
65 per cent of its equity) and marketed frozen unloaded cephalopods, its main task being to see that no
shipowner sold below a floor price.  It acted in close cooperation with shipowners, who could contact
buyers directly in order to sell their products at a price above the floor price, if possible.
Nevertheless, the volume of exports covered by the monopoly was decreasing in view of theGovernment's strategic move towards processed products.
79. The representative of Egypt stressed the importance of the Trade Policy Review and noted
that Mauritania's replies to the questions from Members highlighted the considerable efforts made by
the authorities to streamline and liberalize the econom y.  She summarized the positive results of the
reforms, but drew attention to the vulnerability of Mauritania's economy due to several factors,including the modest export base.  Referring to the Minister's presentation, she also noted the lack of
an infrastructure and human resources when Mauritania became independent.  Egypt expressed its
solidarity and support for Mauritania's aspirations to raise the population's standard of living.  In that
connection, the question of technical assistance for priority sectors should be addressed and the
generalized system of preferences should be extended to all exportable goods.
80. The representative of Mauritania thanked the Chairperson, the discussant and all those who
had taken part in the review of his country's trade policy.  He recalled the priorities of the Strategic
Poverty Reduction Paper and the special attention given to the most vulnerable sectors.  He also
underscored the importance of international solidarity  and the integration of fragile economies in the
multilateral trading system.WT/TPR/M/103
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VI. CONCLUDING REMARKS BY THE CHAIRPERSON
81. The first Trade Policy Review of Mauritania has been very successful, having greatly
enhanced our understanding of Mauritania's policies and practices, as well as of the country's
development challenges.  Our dialogue has been fruitful, in great part due to the open and active
participation of the Mauritanian delegation, headed by Minister Ould Abdel Kader, whose presence
attests to the importance attached by Mauritania to the multilateral trading system.
82. Members commended Mauritania on the ambitious structural reforms undertaken since the
early 1990s, which have transformed the country significantly, both in economic and political terms.
The reforms are aimed at reducing poverty and raising the population's standards of living, which
clearly represent pressing and vital objectives for a least-developed country.  Mauritania considers
international trade to be an essential tool in achieving those aims, and has made trade liberalization,
much of it autonomous, a key element of its reform programme.  This has entailed the revision ofnumerous trade-related laws and regulations in order to modernize them and bring them into line with
multilateral rules.  Mauritania was encouraged to pursue its liberalization efforts and to enhance still
further the transparency and predictability of its trade regime.
83. The institutional constraints faced by Mauritania were noted, as well as the problems they
raised for fuller participation in the multilateral system, including timely submission of notificationsto the WTO.  Mauritania is among the first three pilot countries selected for the implementation of the
Integrated Framework for Trade-Related Technical Assistance to least-developed countries.
Mauritania had indicated in that connection that one of its priorities is to attain a better understanding
of the WTO Agreements, including notifications and other multilateral commitments and issues.
Another priority is capacity-building for negotiati ons in the light of the Doha Development Agenda.
Members concurred with Mauritania that the time had come to translate the studies undertaken in the
context of the IF into practical action.
84. Regarding trade measures, several Members drew attention to various issues concerning
Mauritania's tariff regime, including the relatively high tariffs applied to certain products, mainly
textiles and clothing, footwear, headgear and some motor vehicles.  They also pointed out the
important gap between applied and bound rates, which undermines predictability, and suggested that
the gap be reduced in the context of the current market access negotiations.  Members encouragedMauritania to extend its tariff bindings to the non-agricultural sector and to transpose all bindings into
the HS nomenclature.
85. Members appreciated the amendments to the customs valuation legislation, the harmonization
of VAT rates, the abolition of fiscal exemptions for State enterprises, the new Investment Code, and
the reduction in MFN duties and taxes.  They also noted with satisfaction the limited number of non-tariff barriers.  Concerns were expressed, however, at the application of labelling requirements and
delegations stressed that such requirements should not discriminate between domestic and foreign
producers.  It was noted that Mauritania receives non-reciprocal preferential access to the markets of
its key trading partners.
86. Regarding sectoral policies, Members noted that agriculture and services made the largest
contribution to the GDP, but that the manufacturing sector was still in its early stages.  Mauritania was
commended on the measures taken to liberalize the agricultural sector.  As the fisheries and mining
sectors accounted for almost all merchandise exports, Members urged Mauritania to pursue its efforts
to address its supply-side constraints and to diversify its production and export base.
87. Members praised Mauritania on its efforts to privatize and remove market access barriers in
services sectors, such as telecommunications, banking and air transport.  Several Members mentionedWT/TPR/M/103
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the positive results of the liberalization measures taken to date and urged Mauritania to open up
services more widely to foreign investment.  Members strongly encouraged Mauritania to put forwarda comprehensive services offer during the ongoing GATS negotiations.
88. Members sought further clarification on a number of points, including the following:
- Mauritania's poverty reduction programme;
- privatization and State trading;
- the foreign direct investment regime;- preferential trade arrangements;
- contingency measures;  and
- the protection of intellectual property rights.
89. The Mauritanian delegation had provided written and oral replies to questions raised during
the review.  The replies had made a major contribution to the meeting and were clearly appreciated by
all Members.
90. This brings us to the conclusion of our Review of Mauritania.  As we had hoped, through this
Review, we have gained a first-hand appreciation of Mauritania's achievements and of the significant
obstacles it still has to overcome as a least-developed country.  Mauritania has reaffirmed theimportance it attaches to liberalizing trade as a tool for development and to more active participation
in the WTO.  Members had clearly understood that Mauritania's efforts had to be given external
support and had assured Mauritania that they would assist it in the context of their bilateral and
multilateral technical cooperation.  I sincerely believe that their words will be translated into concrete
action.  I congratulate you all on the positive results of this Review and thank you for your
participation.
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