WORLD TRADE
ORGANIZATIONRESTRICTED
WT/TPR/S/132
24 May 2004
(04-2121)
Trade Policy Review Body
TRADE POLICY REVIEW
Burkina Faso
Report by the Secretariat
This report, prepared for the Trade Policy Review of Burkina Faso, has been
drawn up by the WTO Secretariat on its own responsibility. The Secretariat has,
as required by the Agreement establishing the Trade Policy Review Mechanism
(Annex 3 of the Marrakesh Agreement Establishing the World Trade
Organization), sought clarification from the Government of Burkina Faso on its
trade policies and practices.
Any technical questions arising from this report may be addressed to Mr Sergios
Stamnas (022.739.5382.
Document contains the policy statement submitted by the Government of
Burkina Faso
Note: This report is subject to restricted circulation and press embargo until the end of the meeting
of the Trade Policy Review Body on Burkina Faso.Burkina Faso WT/TPR/S/132
Page iii
CONTENTS
Page
SUMMARY OBSERVATIONS vii
(1) E CONOMIC ENVIRONMENT vii
(2) T RADE POLICY FRAMEWORK vii
(3) T RADE POLICY DEVELOPMENTS ix
(4) S ECTORAL POLICY DEVELOPMENTS xi
(5) O UTLOOK xii
I. ECONOMIC ENVIRONMENT 1
(1) OVERVIEW 1
(2) B ACKGROUND 1
(3) RECENT ECONOMIC DEVELOPMENTS 2
(i) Macroeconomic indicators 2
(ii) Monetary and exchange policy 4
(iii) Budget policy 6
(4) TRENDS INTRADE 7
(5) O UTLOOK 9
II. LEGAL AND INSTITUTIONAL FRAMEWORK FOR FOREIGN TRADE AND
INVESTMENT TRADE 10
(1) OVERVIEW 10
(2) GENERAL CONSTITUTIONAL ,LEGAL ANDINSTITUTIONAL FRAMEWORK 10
(3) TRADE ANDINVESTMENT POLICY 12
(i) Main features 12
(ii) Institutional framework 12
(iii) Instruments 13
(4) TRADE POLICY FRAMEWORK AGREEMENTS 18
(i) WTO 18
(ii) Regional economic agreements 20
ANNEX II: TRADE-RELATED TECHNICAL ASSISTANCE 26
III. TRADE POLICY BY MEASURE 29
(1) OVERVIEW 29
(i) Import measures 29
(ii) Export measures 30
(2) MEASURES DIRECTLY AFFECTING IMPORTS 30
(i) Registration 30
(ii) Customs procedures 31
(iii) Customs valuation 32
(iv) Customs levies 33
(v) Preferential rules of origin 40
(vi) Prohibitions, authorizations and licences, sanitary and phytosanitary measures 40
(vii) Technical standards and accreditation procedures 41
(viii) Marking and labelling requirements 43WT/TPR/S/132 Trade Policy Review
Page iv
Page
(ix) Contingency measures 43
(x) State trading 43
(3) MEASURES DIRECTLY AFFECTING EXPORTS 44
(i) Registration 44
(ii) Customs procedures 44
(iii) Export duties and levies 44
(iv) Prohibitions and products subject to licensing, sanitary and
phytosanitary measures 44
(v) Export subsidies and promotion 45
(vi) State trading 45
(4) DOMESTIC MEASURES 45
(i) Protection of intellectual property rights 45
(ii) Competition policy 49
(iii) Subsidies and other forms of production support 50
(iv) Government procurement 50
IV. TRADE POLICY BY SECTOR 52
(1) O VERVIEW 52
(2) AGRICULTURE ,LIVESTOCK AND FORESTRY 53
(i) Overview 53
(ii) Agricultural policy 54
(3) MINING ,PETROLEUM AND ENERGY 60
(i) Mining 60
(ii) Petroleum 63
(iii) Electricity 63
(4) I NDUSTRIES 64
(5) S ERVICES 66
(i) Overview 66
(ii) Telecommunications 66
(iii) Tourism 67
(iv) Financial services 68
REFERENCES 69
APPENDIX TABLES 73
CHARTS
III. TRADE POLICY BY MEASURE
III.1 Breakdown of customs duties, September 2003 36
III.2 Escalation of duties actually applied, September 2003 37Burkina Faso WT/TPR/S/132
Page v
TABLES
Page
I. ECONOMIC ENVIRONMENT
I.1 Basic economic indicators for Burkina Faso, 1998-2002 2
I.2 Economic indicators for Burkina Faso, 1998-2002 3
I.3 Structure of Burkina Faso's exports, 1997-2001 7
I.4 Destination of Burkina Faso's exports, 1997-2001 8
I.5 Structure of Burkina Faso's imports, 1997-2001 8
I.6 Origin of Burkina Faso's imports, 1997-2001 9
II. LEGAL AND INSTITUTIONAL FRAMEWORK FOR FOREIGN TRADE
AND INVESTMENT TRADE
II.1 Investment Code – privileged regimes 17
II.2 Selected WTO documents relevant to Burkina Faso, March 2004 19
III. TRADE POLICY BY MEASURE
III.1 Breakdown of customs duties , rates actually applied and final bound rates
of Burkina Faso, September 2003 34
III.2 Community Preferential Tariff Regime (TPC), 2004 38
III.3 Status of the privatization programme, 1998-2002 43
III.4 Subjects and terms of protection under the Bangui Agreement (1977) and its
revision (1999) 47
III.5 Applications for titles filed by the DNPI with the OAPI, 2002-2003 48
IV. TRADE POLICIES BY SECTOR
IV.1 Agricultural production, 1998-2003 54
IV.2 Spending on operations and investment in the rural sector, 1996-2000 56
IV.3 Cotton production, 1998-2004 58
IV.4 Production and official exports of gold, 1994-2002 61
IV.5 Industrial production by main branch of activity, 1994-2000 64
APPENDIX TABLES
III. TRADE POLICY BY MEASURE
AIII.1 Reference prices, 2004 75
AIII.2 Applied MFN tariff rates (customs duties plus main import taxes and surcharges)
by HS Chapter, September 2003 76
AIII.3 Tariff lines the applied MFN rate of which is higher than the bound level of
customs duties (excluding other duties and charges), October 2003 80
AIII.4 Products subject to the National Conformity Certificate (CNC), 1998 and 2004 84
AIII.5 Ratification by Burkina Faso of the intellectual property protection treaties
administered by WIPO currently in force, 2004 86Burkina Faso WT/TPR/S/132
Page vii
SUMMARY OBSERVATIONS
1. Since the first review of its trade policy
in 1998, Burkina Faso, one of the poorest of
the “least developed countries (LDCs)”, has
continued with its programme of trade,
structural and macroeconomic reform. Reform
of the cotton subsector – the cornerstone of
Burkina’s economy – should be underlined.
The tariff reform within the West African
Economic and Monetary Union (WAEMU) has
led to substantial reduction and streamlining of
Burkina Faso’s customs tariff, achieved
unilaterally. The economy still chiefly depends
on the cotton crop, transfers from Burkina
nationals abroad and aid from development
partners. The authorities hope to achieve the
objectives set in the Poverty Reduction Strategy
Paper (PRSP) by developing exports that make
the best use of Burkina Faso’s potential in the
primary sector (textiles, hides and skins,
rubber). Burkina Faso is still facing major
problems in competitiveness because of its
landlocked situation and the high cost of
inputs, as well as the burden of taxation.
Structural reforms are under way in order to
improve the situation.
(1) ECONOMIC ENVIRONMENT
2. As was already the case in 1998,
Burkina Faso’s economic growth depends
above all on trends in the primary sector,
which is highly vulnerable to climate
variations. The excellent performance during
the 2003 agricultural season led to an increase
in the gross domestic product (GDP) of some
5.5 per cent in 2003 in the context of controlled
inflation. Cereal production of close to
3.7 million tonnes yielded a large surplus,
which has made the food security situation
globally satisfactory. Cotton production of
approximately 500,000 tonnes during the 2003-
2004 season appears to be almost double the
level in 1998. As a result of development of the
rural sector, the average rate of economic
growth (GDP) reached 4.8 per cent over the
period 1996-2003, an increase of
1.3 percentage points in comparison with the
3.5 per cent average for 1990-1996. Thisaverage is, however, still well below the
objectives in the PRSP.
3. Since the first trade policy review, the
government finance situation (excluding
grants) has deteriorated, but has stabilized
since 2002. Under the Heavily Indebted Poor
Countries Initiative (HIPC), Burkina Faso was
given additional relief from its external debt in
April 2002 in order to support the reform
under way, in addition to the reduction already
granted in July 2000.
4. Few changes have taken place since
the first review as regards the structure of
exports, which remain little diversified and
mainly composed of unprocessed primary
products. Cotton is the leading export, with a
share of around 55 per cent, and the European
Union is still Burkina Faso’s main trading
partner. The deficit in trade transactions is
structural and has increased considerably
since the first review in 1998, mainly because
of the fall in the value of exports (the level of
imports remaining the same) as a result of the
decline in revenue from cotton fibre in CFAF
terms (despite the increased volume exported).
5. The crisis in Côte d’Ivoire has affected
trade since it broke out in September 2002. Its
impact has been felt above all in the higher
cost of transport through alternative routes to
the port in Abidjan and the non-availability of
imports and/or consumer products.
(2) TRADE POLICY FRAMEWORK
6. Burkina Faso was a contracting party
to the GATT (as of May 1963, after having
applied the Agreement de facto since 1960) and
became a WTO Member on 3 June 1995. It
grants at least MFN treatment to all WTO
Members and benefits from the “special and
differential treatment” provided in the WTO
Agreements. Burkina Faso is one of the
sponsors of the sectoral initiative in favour of
cotton, which seeks to tackle the subsidization
practices of certain WTO Members, and this
has recently given Burkina Faso’s trade policy
a more important multilateral dimension.WT/TPR/S/132 Trade Policy Review
Page viii
7. Burkina Faso does not have sufficient
human and financial resources to participate
fully in the WTO’s work. It is planned to
establish a mission in Geneva in 2004. The
action planned and the action that could be
envisaged for Burkina Faso in the WTO consist
of: trade policy courses in Geneva; regional
trade policy courses; short trade policy courses
on the Doha Development Agenda; workshops
or seminars at the regional or subregional
level on a number of issues, and negotiating
techniques; meetings to promote awareness
among parliamentarians; and various activities
at WTO headquarters. They will deal, inter
alia, with the issues identified by the authorities
such as building negotiating capacity,
implementing the WTO Agreements, and
integrating Burkina Faso into world trade.
8. Since 1998, the 1991 constitutional
framework has been revised to underpin the
transition to presidential rotation. At the
institutional level, the Executive has
strengthened the administrative structures
responsible for follow-up regarding the WTO
and Burkina Faso’s participation in the
multilateral trading system under Phase I of
the JITAP. The “Trade Point” set up by the
National Foreign Trade Board (ONAC)
provides services by compiling information on
access to markets both outside and within
Burkina Faso. The Minister for Trade, Industry
and Crafts is chiefly responsible for the
drafting, evaluation and implementation of
industrial, investment, crafts and trade policy.
This gives priority to development of the
private sector and a programme to support
competitiveness and development of enterprises
(PACDE) underpins this objective. One aspect
is the development of promising subsectors for
exports that make the best use of Burkina
Faso’s potential.
9. In their plans for Burkina Faso’s
future, the authorities attach great importance
to regional economic integration. In the context
of the customs union created among its
members, the WAEMU Commission is
gradually defining a common trade policy,
which is taking shape in particular through the
negotiation of trade agreements and incommon positions at the WTO. The integration
process within the larger Economic Community
of West African States (ECOWAS), to which
Burkina Faso also belongs, was revived and
accelerated when negotiations were initiated
with the EU in October 2003 with a view to the
conclusion of an Economic Partnership
Agreement (EPA). Since 2004, the members of
the ECOWAS have accorded each other
preferential treatment for the same products as
those within the WAEMU and it is planned to
establish a customs union by 2007. The new
trade arrangements with the EU replace those
under the ACP-EU Partnership Agreement and
are the subject of a waiver granted by the WTO
Members. In principle, they should apply as of
2008.
10. The Investment Code has not changed
since Burkina Faso first appeared before the
TPRB, but it should in principle be revised
during 2004 with the objective of clarifying its
provisions, expanding the scope of the
incentives given and their nature in order to
attract foreign direct investment and national
investment. Mining investment is subject to
special treatment and access to the
telecommunications, financial services and
electricity sectors is regulated. The Investment
Code gives tax concessions and guarantees for
approved investment projects depending on the
amount of the investment and the number of
jobs created for Burkina nationals. The export
enterprise regime is restricted to enterprises
which export at least 80 per cent of their
production. It gives concessions for customs
duties and domestic taxes on equipment during
the start-up period, as well as total exemption
from duties, levies and taxes during the first
seven years of operation and a reduction after
this period has expired; eight enterprises have
been approved. Enterprises that are expanding
and use local materials amounting to at least
50 per cent of all the raw materials directly
utilized in production are permanently exempt
from the business tax and receive a reduction
of 50 per cent in import duty on production
equipment and spare parts. Since the first
review, Burkina Faso has ratified a large
number of bilateral investment agreements.Burkina Faso WT/TPR/S/132
Page ix
(3) TRADE POLICY DEVELOPMENTS
11. Burkina Faso’s trade policy chiefly
consists of implementing the relevant WAEMU
regulations. The customs tariff is currently
Burkina Faso’s main trade policy instrument;
VAT and excise duty are also levied by the
customs and provide a large share of
budgetary income. Burkina Faso has
implemented the WAEMU’s Common External
Tariff (CET) since 1 January 2000,. This
groups tariff lines into four major categories:
staple goods (zero per cent); basic
commodities, including basic raw materials,
capital goods and specific inputs (5 per cent);
inputs and intermediate goods (10 per cent);
and final consumer goods (20 per cent).
Burkina Faso has unified the customs tariff by
replacing the uniform customs duty (5 per cent)
and the fiscal import duty (zero, 4 or 26 per
cent) by the customs duty. The special import
tax (TSI) of 2 per cent, which also applied at
the time of the first review, was abolished on
9 July 1998. One other change noted is a
narrowing of the standard variation.
12. Taking into account the standing
supplementary duties of the WAEMU and the
ECOWAS, levied solely on imports from third
countries (including community levies of 1 and
0.5 per cent ad valorem respectively and the
statistical fee of 1 per cent ad valorem ), the
simple average of MFN customs duties actually
applied by Burkina Faso has fallen from
32.1 per cent in 1997 to 14.6 per cent (tariff of
October 2003). Burkina Faso nevertheless
continues to give a marked degree of protection
to agricultural products, thereby reducing the
purchasing power of households. The
maximum rate actually applied is 27.5 per cent
as a result of the additional imposition of the
5 per cent degressive protection tax on imports
not originating in the WAEMU, refined
vegetable oils, sugar, cigarettes, matches,
polypropylene bags and batteries; in most
cases, these products are also subject to
reference values (see below). Various
supplementary taxes are also levied on imports
such as the contribution to the import
inspection programme (CPVI), which amounts
to 1 per cent of the f.o.b. value in general andto 0.75 per cent for certain products (rice and
cement), together with the toll per tonne of
imports.
13. Following the implementation of
Burkina Faso’s new copyright protection
regime in 2000, the customs levies taxes in
order to finance the activities of the Burkina
Copyright Office (BBDA). There are royalties
for the reproduction of works fixed on a
graphic or analogue medium (for example,
photocopiers, scanners, CD burners),
amounting to 0.25 per cent of the c.i.f. value of
the appliance and royalties for private copies
on imports of blank recording media (for
example, cassette tapes, CD-ROMs, DVDs),
which is fixed at 10 per cent of the c.i.f. value.
14. Burkina Faso waives import duties on
imports of goods originating in the WAEMU.
This applies to local products and traditional
handicrafts, as well as industrial products from
enterprises approved by the WAEMU
Commission. This preferential treatment has
been extended to goods originating in the
ECOWAS since 1 January 2004. The rules of
origin in the ECOWAS have been harmonized
with those adopted by the WAEMU in order to
make the two preferential regimes compatible
and to expand the scope of free trade.
Applications to benefit from the preferences for
products of WAEMU or ECOWAS origin must
be substantiated by a certificate of origin,
except in the case of local products or
traditional handicrafts.
15. According to the analysis made by the
WTO Secretariat for the purposes of this
review, 40.9 per cent of Burkina Faso’s tariff
lines are bound, of which 56.4 per cent (fish
and fish products, fuel, soap, plastics, cotton)
are subject to applied rates of up to
20 percentage points above the levels bound
(not taking into account the binding of other
duties and levies at 50 per cent). These higher
levels are the result of tariff concessions made
by France on behalf of French West Africa
during the colonial era. Only Côte d’Ivoire and
Senegal have renegotiated these under
Article XXVIII of the GATT 1994, but it would
appear that the WAEMU Commission isWT/TPR/S/132 Trade Policy Review
Page x
considering the submission of a new schedule
for its members.
16. Regarding customs valuation, Burkina
Faso has applied the transaction value since
1 June 2000, the final date for deferred
application of the relevant WTO Agreement.
Reference values continue to apply to certain
products, however, covering 33 tariff lines,
mainly edible vegetable oils, sugar, cigarettes
(as was the case at the time of the first review),
mopeds, motorcycles and bicycles, as well as
their spare parts. The Burkina authorities have,
however, narrowed the scope of this regime
since the first review and in some cases have
reduced the minimum values. Steps have been
taken in the Committee regarding the retention
of minimum values.
17. There have been few changes in
Burkina Faso’s import ban, authorization and
licensing regime since the first review of its
trade policy. It maintains the requirement to
produce a notice of intent to import for any
operation subject to the PSI and still requires a
national conformity certificate for certain
products, even though there is as yet no
national standard. Standardization is making
progress in Burkina Faso through
FASONORM, whose activities effectively began
in 1999. Burkina Faso has become a
subscriber member of the ISO so that it can
keep abreast of ongoing work, but it does not
have the resources to participate actively in the
Organization. A regional accreditation
programme is under consideration by the
WAEMU.
18. Burkina Faso still grants tax and
customs exemptions to enterprises approved
under the Mining Code or under the Investment
Code. In 2002, customs exemptions under the
Investment Code amounted to CFAF 3 billion
(US$4.5 million). Financing of the rural sector
absorbs on average one quarter of the State’s
budget.
19. Even though the WAEMU has adopted
regulations on competition and State aid, there
have been no changes for the time being apart
from the strengthening of Burkina Faso’sinstitutional framework. The members of the
WAEMU, including Burkina Faso, have not yet
completed the implementation of these
regulations. At the national level, all prices
have now been liberalized with the exception of
petroleum prices at the pump, which are
determined monthly according to fluctuations
in supplier prices, together with the prices of
school supplies, generic essential medicines,
water, electricity and telephony.
20. The State has continued to withdraw
from economic activity by opening up the
capital of State enterprises to private interests,
but retains a minority holding in a number of
key enterprises that sometimes enjoy a legal
monopoly (cotton ginning). The privatization
programme adopted in 2001 encompasses,
inter alia , strategic enterprises in the
telecommunications, electricity and
hydrocarbons sectors and the granting of
concessions for supplying water. The State is
also continuing to liquidate certain enterprises.
The import monopoly of the Burkina
Hydrocarbons Company (SONABHY) for
supplying Burkina Faso in hydrocarbons
(excluding lubricants) still applies.
21. In 2003, Burkina Faso adopted a new
Government Procurement Code in order to
strengthen the provisions on transparency. An
open invitation to tender is the most generally
utilized form of awarding contracts for
government procurement. A preferential
margin of 10 per cent of the amount of the bids
is given to enterprises established under
Burkina law and this margin is 15 per cent if
the bid comprises at least 20 per cent of
Burkina value added.
22. The regime of the African Intellectual
Property Organization (OAPI) has also been
updated in order to harmonize it with the
requirements of the TRIPS Agreement. Burkina
Faso ratified the 1999 revision of the Bangui
Agreement on 8 June 2001. It has also revised
its copyright and related rights regime, even
though the authorities indicate that there are
problems in defending rights. The State lacks
the resources to promote awareness among the
population and the human and financialBurkina Faso WT/TPR/S/132
Page xi
resources to prevent the sale of pirated works.
Burkina Faso is a member of only a few
treaties administered by the WIPO and, since
the first review, has ratified only those on
copyright, performances and phonograms (in
2002).
(4) SECTORAL POLICY DEVELOPMENTS
23. Since the first review of its trade
policy, Burkina Faso has continued to reform
the agricultural sector within the framework of
the Agricultural Structural Adjustment
Programme (PASA), launched in 1992, through
tariff liberalization and State withdrawal from
production and distribution. The State is
currently focusing on support for producers,
organized in the form of cooperatives, for
example by developing of infrastructure in
rural areas, providing training programmes
and expanding financial services (banks,
decentralized financing systems, loans for
projects). The introduction of the WAEMU’s
CET has significantly lowered the simple
average of duties and taxes applicable to
agricultural products, which has fallen from
31.6 in 1997 to 17.6 per cent.
24. Cotton fibre, 97 per cent of which is
exported and has therefore undergoes little
processing in Burkina Faso, is still of vital
importance for rural areas and for the
manufacturing sector (cotton ginning being the
major manufacturing activity). The Textile
Fibres Company (SOFITEX), 25 per cent of
which is owned by the State (to be privatized in
the long term), remains the leading operator in
the subsector because of its monopoly on the
collection of seed cotton in the cotton-growing
areas where it is established (west and south-
west), and of the initial processing of cotton,
including ginning (12 plants), as well as the
marketing of cotton fibre. As part of the reform
of this subsector, producers have been given a
role as co-managers (with the State taking a
secondary role) and the reform has also sought
to guarantee them higher incomes and to
introduce a support fund for periods when the
selling price of cotton fibre on the global
market does not cover the cost of production;
the price guaranteed to producers prior to theseason depends on previous trends in global
prices and the performance of SOFITEX.
Another aim of the reform is to open up new
cotton-growing regions in the centre and the
east (20 per cent of production of seed cotton)
to allow the entry of new operators able to
provide cotton producers with support, as
SOFITEX did in the past; this should be
achieved in the near future.
25. Industrial production of gold ceased in
Burkina Faso in 2000, and the authorities
have revised the regulatory framework in order
to make it more attractive and to promote
mining prospection. In 2000, it was decided to
speed up reform of the electricity sector; the
price per KWh has not changed since 1994.
The main measures decided after the first
review of Burkina Faso were to revise the
relevant legislation, open up the capital of the
Burkina National Electricity Company
(SONABEL) to private interests in 2004, to put
in place the interconnection with Ghana in
2012 and with Côte d’Ivoire (already existing),
and to extend this line up to the capital in
order to obtain supplies at lower cost.
26. The major development in the
manufacturing sector since 1998 has been the
progress made by the State in its programme to
sell its holdings, which should eventually also
include cotton ginning, still a monopoly of the
SOFITEX. Tariff protection has been lowered
since the first review, but there are still
reference values for a certain number of
products and significant escalation of the
customs tariff in favour of finished goods. The
competitiveness of Burkina Faso’s products on
both domestic and foreign markets is still
hampered by the high price of energy,
transport and telecommunications, and the
high cost of inputs, which are mostly imported.
This was already noted at the time of the first
review and the situation remains unchanged. It
explains the continued protection granted to
the sector by the State through various tariff
and non-tariff measures. Consequently,
although several incentives are available to
investors, there is still a low level of investmentWT/TPR/S/132 Trade Policy Review
Page xii
in the industrial sector (with the exception of
bakeries).
27. Telecommunications is another sector
in which there has been reform, although it is
not included in the GATS (Burkina Faso only
made commitments on tourism services). The
Telecommunications Code was adopted in
1998 and determines the conditions for
obtaining licences and the responsibilities for
regulating the sector. The opening up of the
capital of the traditional operator, the National
Telecommunications Board (ONATEL), is
included in the 2004 privatization programme.
This company would retain its monopoly on
infrastructure and basic services until the end
of 2005. Three GSM mobile telephony licences
were granted in 2000.
28. The availability of financial services
remains one of the most significant obstacles to
Burkina Faso’s economic development because
the focus in the banking sector is on the
SOFITEX, formal industrial activities and
import-export, neglecting the needs of SMEs
and farmers. Since 1998, there has been strong
expansion of microfinance in Burkina Faso,
mainly through mutual funds or savings and
loan cooperatives or decentralized financing
schemes (SFDs), and institutions financed by
NGOs or by the State. Like all banking
institutions, they are subject to the relevant
regulations of the WAEMU.
(5) OUTLOOK
29. The liberalization of foreign trade,
structural reform and the intensified efforts
made to achieve macroeconomic stabilization
have helped to enhance the economicenvironment in Burkina Faso and have led to
more positive economic performance than that
recorded at the time of the first review in 1998.
However, this is chiefly due to favourable
rainfall during the last two agricultural
seasons. Recent reforms in the water,
electricity and telecommunications sectors and
the progress made in the privatization
programme have not yet boosted activity in the
industrial sector. The structure of exports still
focuses essentially on cotton, with low value
added and revenue depending on trends in
global prices as well as the euro exchange rate.
Completing the reforms under way,
streamlining the regulatory framework for
private activity and improving the management
of government finance are still the authorities’
priorities for action.
30. As an LDC, Burkina Faso receives
substantial technical and financial assistance
from its development partners. It has also
benefited from considerable assistance from
the WTO since the first review, although this
has not always resulted in a satisfactory level
of participation in the multilateral system. It is
planned to increase aid under Phase II of the
JITAP and the authorities also hope to benefit
from the pilot programme of the Integrated
Framework. The negotiations on cotton under
the Doha Agenda could make a major
contribution to the efforts of cotton-producing
LDCs, including Burkina Faso. Nevertheless,
the benefits which Burkina Faso could derive
from access to markets at both the regional and
multilateral level will not be fully realized until
its economy is able to respond competitively to
external demand.