WORLD TRADE
ORGANIZATIONWT/COMTD/IF/14
12 February 1998
(98-0515)
Committee on Trade and Development
Integrated Framework for Trade-RelatedTechnical AssistanceOriginal:  French
TRADE-RELATED TECHNICAL ASSISTANCE NEEDS ASSESSMENT
SUBMITTED BY BENIN
INTEGRATED RESPONSES BY THE WORLD BANK,
ITC, UNCTAD, IMF, WTO AND UNDP
BENINWT/COMTD/IF/14
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TRADE-RELATED TECHNICAL ASSISTANCE NEEDS ASSESSMENT
SUBMITTED BY BENIN
Despite a relatively low per capita income (US$370 in 1996), Benin is one of Africa's
principal trade centres.  It derives its promin ence from its role as a foreign trade hub for the
surrounding landlocked countries (Niger, Burkina Faso) and from the proximity of Nigeria, to which a
substantial proportion of its imports are re-exported.
After a long period of State control, Benin opted to liberalize its economy and this process is
still continuing.
In January 1994, Benin, which is a member of WAEMU, decided to devalue the CFA franc.
Since then its economy has benefited from the resulting restoration of competitiveness which has
helped to reinforce the adjustment strategies pursu ed since the beginning of the decade:  farming has
become more profitable, especially the cotton sector, the principal source of income and foreign
currency, and after an initial slow-down in 1994 econom ic growth has stabilized at an annual rate of
around 5.5 per cent, inflation having evidently been brought under complete control.
However, Benin has serious deficiencies in the fields of education and health;  the agricultural
sector is still virtually restricted to cotton, and in dustrial activity is limited:   most of GDP comes from
the commercial sector, formal and above all informal, which specializes in the transit and re-export
trade, particularly with Nigeria.  Consequently, activity in Benin depends heavily on the commercialand foreign exchange decisions taken by its Nigerian neighbour.
All these factors, in conjunction with the relations maintained with the WTO since 1994, have
led Benin to submit the accompanying list of its technical assistance needs, which are linked both with
its concern to bring its regulatory and legislative practices into conformity with WTO rules and its
desire for closer integration into international trade.WT/COMTD/IF/14
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Description of T.A. requested Beneficiary Possible source Priority
Assistance with the establishment of an
investment bank1Banking sector WADB, ADB,
IDB funds
ECOWAS1
Assistance with the setting up of a Trade Point:
training, equipment, Internet accessCBCE, CCIB UNCTAD,
WTO, ITC2
Support for the commercial promotion of Benin
products (fairs, etc.)CBCE, CCIB ITC 3
Assistance with the establishment of an
information service and training for quality
control and standardsDPQC UNIDO, FAO,
UNDP4
Study of the possibilities of developing Benin's
underexploited agricultural sectorsAgricultural
sector (APFB)EU, FAO,
IBRD5
Training in international trade negotiations DCE, CBCE,
CCIB, CNCBWTO, ITC 6
Training of trainers in international management CCIB, CBCE,
INEITC 7
Training of trade promotion institution managers CCIB, CBCE UNCTAD, ITC 8
Formulation of an investment and export
promotion strategyCCIB, DPI,
CBCEIBRD, UNIDO 9
Training in international commodity trade APFB, CCIB,
DAGRI, CABUNCTAD, ITC 10
Training of trainers in customs valuation and rules
of originDGDDI WTO  11
Improvement of industrial infrastructures (free
zone and industrial estates)CCIB, DDI UNIDO 12
Support for improvement of the legal, judicial and
fiscal framework and alignment on WTO rulesDCE,  DLC,
CCIB, DGDDIWTO 13
Financial support for the promotion of
international trade and tourismCCIB, CBCE,
DTHIBRD 14
Study of the competitiveness of Benin products
on foreign marketsPrivate sector UNCTAD,
UNIDO15
Support for notification obligations:  training and
computerization, assistance with the management
of the WTO dossier, etc.DCE WTO 16
                                                     
1 "Benin's economic operators, through the Benin Chamber of Trade and Industry, have initiated a
project to establish an investment bank and an agricultural development fund for which the developmentpartners gave their agreement in principle during the Beni n round tables on the revival of the private sector and
rural development.  The Benin Government is keenly interested in these two institutions.  Accordingly, thiswould appear to be the appropriate institution to ta ke the necessary steps to bring them into being."WT/COMTD/IF/14
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Description of T.A. requested Beneficiary Possible source Priority
Technical support for the improvement of
standards and the promotion of craft and touristproductsDNA WTO/ITC 17
Assistance in the field of packaging CCIB, APFB,
ASNIBIBRD, ITC 18
Holding of training seminars on the content and
implications of the WTO AgreementsAll sectors
(DCE)WTO 19
Study to assess the impact of the WTO
Agreements on the Benin economyDCE WTO, ITC 20
Training of specialists in the drafting of legal
texts in the field of international tradeDLC WTO, ITC,
WAEMU21
Training of tourism and craft enterprise marketing
managersDTH, DNA ITC, IBRID,
WTO (tourism)22
Training in new information technologies,
especially the InternetCCIB WTO 23
Study of the informal sector and its role in foreign
trade, especially subregional tradeDCI, CCIB IBRD 24
Assistance with the facilitation of customs
proceduresDGDDI, PAC WCO 25
N.B. The body identified as the reference centre and organizer of the assistance in question is
indicated in parentheses.WT/COMTD/IF/14
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LIST OF ACRONYMS
ASNIB - National Association of Benin Manufacturers
APF - BAssociation for the Promotion of Fruit and Vegetables
ADB - African Development Bank
IDB - Islamic Development Bank
WADB - West African Development BankCAT-CNS - Technical Support Unit of the National Monitoring Committee of the Private
Sector Revival Programme
CBCE - Benin Foreign Trade Centre
CCIB - Benin Chamber of Commerce and Industry
CNCB - Benin National Shippers Council
CNEX - National Export Council
CPA - Centre for the Promotion of CraftsDAGRI - Agricultural Directorate
DAPS - Analysis, Forecasting and Synthesis Directorate
DAR - Application of Regulations Directorate
DAS - Sectoral Coordination Department
DDI - Industrial Development DirectorateDG/DDI - General Directorate of Customs and Excise
DMM - Merchant Marine Directorate
DNA - National Craft Trades Directorate
DOI - International Organizations Directorate
DPI - Investment Prom otion Directorate
DPQC -
DTH - Tourism, Hotels and Restaurants Directorate
GREXPOB - Benin Association of Oleaginous Product Exporters
MAEC - Ministry of Foreign Affairs and Cooperation
MCAT - Ministry of Trade, Crafts and TourismMDR - Ministry of Rural Development
MF - Ministry of Finance
MIPME - Ministry of Industry and Small and Medium Enterprises
MPREPE - Ministry of Planning, Economic Restructuring and Job Promotion
MTPT - Ministry of Public Works and TransportPAC - Autonomous Port of Cotonou
SONAPRA - National Agricultural Production Society
The satisfaction of Benin's technical assistance needs would facilitate compliance with the
World Trade Organization Agreements and the integration of the Benin economy into the world
economy and regional and international trade.WT/COMTD/IF/14
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Annex 1:  List of current technical assistance programmes
At the moment, there is no trade-related technical assistance project in progress.
Annex 2:  Brief description of Benin's trade regime
During the last ten years, Benin's trade regime has been gradually liberalized:  abolition of
quantitative import restrictions in 1998, import licences in 1991, and official market prices for
imports.  As a result of two tariff reforms (1991 and 1994) the duties levied on imports have beenreduced to two and, at the same time, the number of rates has been reduced from 16 to 5.
Because of its international transit role, Benin's tariffs are among the lowest in Africa south of
the Sahara:  the duties, mainly ad valorem , amount on average to 13 per cent, but the effective
collection rate is further reduced by the numerous exemptions applied.  Finally, VAT at 18 per cent is
levied on imports at the frontier.
Annex 3:  Viewpoint of the private sector
The Benin private sector suffers from the same handicaps as that of other countries of the
subregion, despite Benin's role as an international trade hub.  Seminar participants have often
mentioned the following factors which impede their production and trade development efforts:
- The cost of energy, but especially air freight, which is holding up the development of
tourism and ongoing efforts to develop non-traditional fruit and vegetable exports;
- the difficulties associated with a sometimes obscure legal environment, aggravated by
a lack of lawyers trained in business law and especially the law of contracts in
international trade;
- the poor dissemination of information on trade opportunities abroad, and the lack of
means of processing that information;
- a lack of human skills in the areas of management and international marketing;- the lack of an export credit guarantee and insurance system;
- finally, the slowness of financial settlements in international transactions.
These handicaps are making foreign operations more expensive and delaying the integration
of the Benin economy into international trade.WT/COMTD/IF/14
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INTEGRATED RESPONSE BY THE WORLD BANK,
ITC, UNCTAD, IMF, WTO AND UNDP
BENIN
Technical assistance needs identified in
the questionnaireOrganization Reply
Technical assistance needs submitted
by the Republic of Benin, in order of
priority:
1. Assistance with the establishment
of an investment bank.1
2. Assistance with the setting up of aTrade Point;  training, equipment,
Internet access.UNCTAD A Trade Point will be installed,
together with the necessary
equipment and the training required
to operate it, including connection to
the Internet.  Part of the financing isalready assured.
UNDP Additional assistance could be
provided by UNDP, either under the
project BEN/97/008
"Communications network for
sustainable human development" orunder project RAF/97/01 (Internet).
ITC/
UNCTAD/
WTOWTO experts connected the official
focal point at the Ministry of Tradewith the Internet in October 1997
under the ITC/UNCTAD/WTO
integrated technical assistance
programme (IP attached).
World Bank/
WTOJoint World Bank-WTO site already
installed.
3. Support for the commercialpromotion of Benin products (fairs,etc.).ITC See ITC/UNCTAD/WTO Integrated
Project (IP) for institution building.In addition, textile sector promotion
activities are planned within the
context of current regional projects.
                                                     
1 Benin's economic operators, through the Benin Chamber of Trade and Industry, have initiated a
project to establish an investment bank and an agricultural development fund.  The Benin Government is keenlyinterested in these two institutions.  Accordingly, this would appear to be the appropriate institution to take thenecessary steps to bring them into being.WT/COMTD/IF/14
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Technical assistance needs identified in
the questionnaireOrganization Reply
Technical assistance needs in order of
priority (cont'd):
UNDP The UNDP will assist the
Government under the projects
BEN/95/010 "Strengthening of
support capacities for enterprisecreation, rehabilitation and
development" and BEN/95/012
"Consolidation and extension of the
support system for urban and rural
micro-enterprises".
4. Assistance with the establishment
of an information service and training
for quality control and standards.ITC See IP for the establishment of a
trade information service and support
for quality.
The TOPS database on trade
opportunities for ECOWAS membercountries will be made available to
the Ministry of Trade.
UNDP The UNDP, in conjunction with the
IP partners (ITC/UNCTAD/WTO),
will assist the Government under the
project BEN/95/010 "Strengthening
of support capacities for enterprisecreation, rehabilitation and
development" (standardization and
quality).
5. Study of the possibilities of
developing Benin's underexploited
agricultural sectors. ITC See IP for strengthening export
sectors at the operational level.
UNDP The UNDP will finance sector
studies under the project
BEN/95/011 "Strategic managementof agro-industrial sector and
subsector development at the small
and medium enterprise level" and
will help the Government to define
strategies and an action plan for thedevelopment of promising sectors.
World Bank Agricultural sectoral programme
(SIP) being prepared for 1998.WT/COMTD/IF/14
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Technical assistance needs identified in
the questionnaireOrganization Reply
Technical assistance needs in order of
priority (cont'd):
6. Training in international tradenegotiations.ITC/
UNCTAD/
UNDPTraining of trainers and
strengthening of international trade
training institutions are provided for
within the context of theITC/UNCTAD/UNDP project.
Moreover, UNDP will finance
Benin's participation in the
subregional seminar on this topic in
which two national officials from theBenin Administration will be invited
to take part (RAF/96/001).
WTO Simulation of negotiations provided
for in the context of the trade policy
training courses for French-speakingLDCs.
ITC/
UNCTAD/
WTOAdditional training activities are
provided for within the context of the
IP.*
7. Training of trainers in internationalmanagement.ITC/
UNCTAD/UNDP/
WTOSee 6 above.  (Additional financing
being sought.)
8. Training of trade promotion
institution managers.UNDP UNDP will meet part  of this request
under project BEN/95/006 and the
private sector support projects
BEN/94/003 and BEN/95/009.
ITC/
UNCTAD/UNDPThe project RAF/96/001 provides for
the strengthening of traininginstitutions in the field of
international trade.
9. Formulation of an investment and
export promotion strategy.ITC See above.  The IP provides for an
export promotion strategy to be put
in place.
*Financing to be requested.WT/COMTD/IF/14
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Technical assistance needs identified in
the questionnaireOrganization Reply
Technical assistance needs in order of
priority (cont'd):
UNDP The UNDP will respond to this request
through projects BEN/95/010
"Strengthening of support capacities for
enterprise creation, rehabilitation and
development" (investment) and
BEN/95/003 "Creation of an enterprise
formalities centre".
World Bank A private sector development project (Cr.
Q042, approved 15 May 1997) is under
way and will meet this need.  The project
is aimed at supply constraints, especially
the regulatory frameworks.
10. Training in international commoditytrade
11. Training of trainers in customsvaluation and rules of originWTO See IP concerning its customs valuation
and rules of origin activities.
12. Improvement of industrialinfrastructures (free zone and industrial
estates).UNDP The UNDP has already undertaken to
finance a feasibility study on the
establishment of an industrial free zone
under the project BEN/95/005.
World Bank Study envisaged in the private sector
development project (Cr. Q042, approved
15 May 1997).
13. Support for improvement of thelegal, judicial and fiscal framework and
alignment on WTO rules.ITC The JURIS database on the legal aspects
of international trade will be made
available to the Government.
World Bank A private sector development project (Cr.
Q042, approved 15 May 1997) (under
way) meets this need.  (See 9).
WTO See IP.
14. Financial support for the promotion
of international trade and tourism.UNDP The UNDP will assist the Government in
this field through project BEN/95/011
"Strategic  management of agro-industrial
sector and subsector development at
small- and medium-enterprise level".Additional financing required.WT/COMTD/IF/14
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Technical assistance needs identified in
the questionnaireOrganization Reply
Technical assistance need in order of
priority (cont'd):
15. Study of the competitiveness ofBenin products on foreign markets.ITC See items 3, 4 and 5.
World Bank A private sector development project (Cr.
Q042, approved 15 May 1997) (under
way) meets this need.  (See 9).
16. Support for notification obligations:training and computerization, assistance
with the management of the WTO
dossier, etc.WTO See IP.
17. Technical support for the
improvement of standards and the
promotion of craft and tourist products.ITC See item 4.
UNDP The UNDP will go some way towards
meeting this need under project
BEN/95/011 "Strategic  management of
agro-industrial sector and subsector
development at small- and medium-enterprise level" (standardization).
18. Assistance in the field of packaging. ITC See item 4.
19. Holding of training seminars on thecontent and implications of the WTOAgreements.UNCTAD/
WTOSee IP
20. Study to assess the impact of the
WTO Agreements on the Benin
economy.UNCTAD This study is provided for under the IP.
Preliminary activities have already begun.
21. Training of specialists in the
drafting of legal texts in the field ofinternational trade.
22. Training of tourism and craftenterprise marketing managers.ITC/
UNCTAD/
UNDPSee item 6.
23. Training in new information
technologies, especially the Internet.ITC/
UNCTAD/
UNDP/
WTOSee item 2.WT/COMTD/IF/14
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Technical assistance needs identified in
the questionnaireOrganization Reply
Technical assistance need in order of
priority (cont'd):
24. Study of the informal sector and its
role in foreign, especially subregional
trade.World Bank The authorities could benefit from the
results of the study completed in 1994.
25. Assistance with the facilitation of
customs procedures.IMF Commitment in principle (for 1998) to
provide assistance to review and update
customs legislation and regulations and
to rationalize the import tariff and
coordinate it with the domestic indirect
tax system to assure efficient collectionof revenues.
UNCTAD The customs computerization system
ASYCUDA has already been installed in
Benin.  UNCTAD will check its
operation in order to strengthen customs
management and facilitate customs
procedures in the areas not covered bythe original system.  UNCTAD will
endeavour to train customs and port
officials in the use of the ASYCUDA++
system which it will help to bring into
use on a national scale.*
*Financing to be requested.
__________