RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/G/43
1 October 1998
(98-3792)
Trade Policy Review Body Original: French
TRADE POLICY REVIEW
MALI
Report by the Government
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism
(Annex 3 of the Marrakesh Agreement Establishing the World Trade
Organization), the policy statement by the Government of Mali is attached.
Note: This report is subject to restricted circulation and press embargo until the end of the meeting
of the Trade Policy Review Body on Mali.Mali WT/TPR/G/43
Page 3
CONTENTS
I. INTRODUCT ION ................................................................................................................4
II. MACROECONOMIC BACKGRO UND............................................................................4
III. TRADE POLICIES  AND PRACT ICE...............................................................................5
(1) G ENERAL TRADE POLICY OBJECTIVES .................................................................................5
(2) S ECTORAL TRADE POLICY OBJECTIVES ...............................................................................6
(i) Agricul ture ...............................................................................................................6
(ii) Energy..................................................................................................................... ..6
(iii) Industry .................................................................................................................. ..7
(iv) Services ................................................................................................................... ..7
(3) G ENERAL DESCRIPTION OF THE IMPORT AND EXPORT REGIME ........................................8
(i) Imports..................................................................................................................... .9
(ii) Exports.................................................................................................................... ..9
(4) T RADE POLICY FRAMEWORK ................................................................................................9
(i) Laws and regulations governing the implementation of trade policy .................9
(ii) Formulation and revie w of trade policies ............................................................10
(iii) Bilateral, regional and mu ltilateral trade agreements .......................................10
(5) I MPLEMENTATION OF TRADE POLICY ................................................................................11
(i) The trade policy measures applied in Mali can be summarized as follows:.....11
(ii) Current trade libera lization programme.............................................................12
(iii) Problems on the domest ic and foreign markets ..................................................13
IV. CONCLUSION .................................................................................................................. .13WT/TPR/G/43 Trade Policy Review
Page 4
I. INTRODUCTION
1. The Republic of Mali is a land-locked country (without access to the sea), bordered on the
east by Niger, the south-east by Burkina Faso, the south by Côte d'Ivoire and Guinea, the west by
Senegal, the north-west by Mauritania and the no rth by Algeria.  It has an area of 1,241,328 km.2,
with a perimeter of 7,000 km. and a population estimated at 9 million in 1996, i.e. a density of more
than 7 inhabitants/km.2, growing at 3.35 per cent per annum.  Its climate is desert in the north, Sahel-
zone in the centre and west and Sudan-zone in the south.  The territory is divided into eight regions
(Kayes, Koulikoro, Sikasso, Segou, Mopti, Timbuktu, Gao, Kidal) and one district (Bamako), eachheaded by a governor.
II. MACROECONOMIC BACKGROUND
2. In 1996 Mali had a national per capita income of around CFAF 157,090, i.e. approximately
US$300, which puts it into the least-developed countries (LDCs) category.
3. A feature of the Malian economy is the marked predominance of the primary sector, which
accounted for 44.39 per cent of GDP in 1996.  For the same period the secondary and tertiary sectors
contributed 13.79 per cent and 41.83 per cent of GDP respectively.
4. The Malian economy, which has a burgeoning informal sector, is faced with a number of
constraints, such as the land-locked nature of the country, climatic uncertainty, the deterioration of the
terms of trade, and the inadequacy of the infrastructure and of lending to the non-government sector.
5. Mali’s economic life was marked during the early years of independence (1960-1980) by the
predominant role of the State, which led to a number of economic, financial and social imbalances.
6. With a view to improving its economic situa tion, starting in the 1980s Mali embarked upon a
massive programme of economic reform in collaboration with its development partners, in order to
achieve:
- A better allocation of national resources;
- a more equitable return on production activities;
- adjustment of the trade policy to the new economic context;  Mali’s accession to the
West African Monetary Union (WAMU) in 1984 was one of the first major
milestones in this process.
The main planks of this programme continue to be the liberalization of the economy and
promotion of the private sector through the withdrawal of the State, and the improvement of the
economic environment and legislative and regulatory framework.  The implementation of this
programme was facilitated with the introduction of a system of pluralist democracy and the rule of
law as from 1991.  The execution of the 1992-95 programme thus enabled significant economic and
social progress to be made through the implementation of policies adopted on the basis of seeking awide-ranging consensus (involvement of the private sector, NGOs, Associations, etc.) and within the
framework of the National Pact (establishment of peace in northern Mali).
7. The macroeconomic objectives have by and large been achieved:  GDP grew by around 3 per
cent a year during the period 1992-94 and 6 per cent in 1995; inflation, as measured by the GDPdeflator, was limited to 2 per cent a year in 1992-93 and held down after the devaluation to 33.2 per
cent in 1994 and 12.7 per cent in 1995.  The current account deficit, excluding official transfers, was
contained at 18.2 per cent of GDP in 1994 and subsequently reduced to 15.2 per cent in 1995.  The
overall budget deficit was cut from 13.7 per cent to  10.5 per cent of GDP over the same period.Mali WT/TPR/G/43
Page 5
Credit policy has remained cautious.  The January 1994 devaluation helped to boost exports, which
increased by 82 per cent, from CFAF 98.9 billion in 1993 to CFAF 157.2 billion in 1994.
8. Consolidation of this economic performance has continued under the new economic and
financial programme, which covers the period 1996-98.  This programme has received the support ofthe IMF via an agreement under the Enhanced Structural Adjustment Facility (ESAF) and of the
World Bank in the form of an Economic Management Support Loan (EMSL), as well as that of other
bilateral and multilateral funding agencies.  The programme focuses on:
- Ensuring the country’s financial viability;
- promoting sustainable economic growth;- reducing poverty, with the aim of increasing the population’s standard of living in the
long term.
9. The reform strategy for the period 1997-99, in addition to attempting to balance the budget,
places the development of human resources and control of population growth at the heart of the
Government’s development efforts and attaches particular importance to the structural reforms whichare essential in order to make the economy more flexible and diversify production and exports.
10. The implementation of this strategy should enable Mali to:
- Achieve a real GDP growth rate of around 5 per cent per annum over the period
1997-98 (compared with 4 per cent in 1996);
- reduce inflation, based on the GDP deflator, to a level of 2.5 per cent as from 1998
(compared with 6.5 per cent in 1996);
- reduce the current account deficit (excluding official transfers) to less than 9 per cent
of GDP by 1999;
- further reduce the overall budget deficit, which stood at 8 per cent in 1996;
- further minimize State participation in public enterprises.
III. TRADE POLICIES AND PRACTICE
(1) G
ENERAL TRADE POLICY OBJECTIVES
11. Trade policy is based primarily on the main guidelines laid down for Mali’s economy in the
various reforms that are under way and in which trade and the private sector have been assigned the
role of engine of economic growth, through the effects which they can have of stimulating and
encouraging production and productivity.
12. With regard to trade policy, the Government has set itself the following general objectives:
- To rehabilitate the domestic market;
- to secure regular and adequate supplies of consumer and capital goods for the
country;
- to secure permanent markets for domestic products both at home and abroad;
- to diversify production and exports;- to increase exports at an average rate of 15 per cent per annum over the next
five years;
- to improve the operation of the commercial courts.WT/TPR/G/43 Trade Policy Review
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(2) SECTORAL TRADE POLICY OBJECTIVES
(i) Agriculture
13. The importance of agriculture in Mali’s economy (80 per cent of the population are involved
in this sector) makes it an essential part of the reform programme.
14. With regard to agriculture, the Government aims to:
- Achieve food self-sufficiency;
- increase the competitiveness and productivity of this sector;
- produce a marketable surplus;
- diversify production;- develop and enhance the value of exportable agricultural products.
15. In this context, the Government has adopted the following measures:
- Restructuring of the Department for Rural Development and the Environment;
- gradual withdrawal of the State from the agricultural sector;
- the encouragement of the organization of village associations (which group together
to form cooperatives for marketing and distribution);
- liberalization of prices and marketing of agricultural products;
- redefinition of the tasks of OPAM ( Office des produits agricoles du Mali),  Mali’s
agricultural products board, which is now concerned solely with providing supplies to
areas affected by shortages and managing the national emergency buffer stock;
- improvement of the procedures for monitoring the quality of agricultural products.
(ii) Energy
16. With regard to energy, the Government intends to:
- Improve and extend the water and electricity distribution network, in order to rapidly
develop the sector on a lasting basis;
- use renewable resources as much as possible;
- encourage economies of scale;
- promote the management of water supply networks in rural and semi-urban centres;
- control production costs in order to provide industry and households with a cheaper
service;
- reform the oil subsector.
17. Certain measures are necessary in order to attain these objectives, such as:
- The re-establishment of the financial viability of EDM ( Energie du Mali );
- the preparation and adoption of a new institutional framework;
- separate management of water and electricity;
- decentralized management of rural water engineering;
- connecting up to the electricity grid of the Republic of Côte d'Ivoire;- making use of the Manantali dam (within the framework of the Organization for the
Development of the Senegal River, which brings together Mali, Mauritania and
Senegal) from the energy point of view;
- rationalization of Mali’s supplies of petroleum products.Mali WT/TPR/G/43
Page 7
(iii) Industry
18. In this sector the objectives pursued include:
- The creation, extension and modernization of the industrial infrastructure in order to
increase industry’s share of GDP, which amounted to 16 per cent in 1995;
- the encouragement of investment in exporting industries and the sectors of the
economy which use raw materials and other local products;
- the transfer of the necessary appropriate technologies;
- the mobilization of domestic savings and injections of capital from abroad;
- investment in the country’s less developed regions.
19. The strategies adopted involve certain measures, such as:
- Encouraging private entrepreneurs to take over ailing public sector firms;
- the creation of free zones;
- the establishment of a more neutral system of incentives, reflecting the opportunity
costs of the economy’s resources;
- the introduction of a single agency to deal with the administrative formalities
involved in setting up companies;
- tax relief on inputs, capital goods and raw materials;
- the principle of deductions on exported products;
- the suspension of export duties and taxes.
(iv) Services
(a) Financial services
20. Here the Government aims to increase the effectiveness of the banking system (seven credit
institutions) and improve financial intermediation.
21. The strategies and measures adopted involve:
- Compliance with prudential ratios;
- implementing reforms affecting instruments of the regional financial market (regional
stock exchange);
- preparation and adoption of the action plan for strengthening the financial sector,
including the development of decentralized financial institutions (microfinance).
(b) Transport and communications
22. Since Mali is an inland country, the Government intends to put the emphasis on the
development and maintenance of the country’s infrastructure and on increasing the effectiveness of
the international transport corridors.
23. In order to attain its objectives, the following measures are being taken or are planned:
- Institutional reforms (revision of the highway code, regulations governing the
transportation of dangerous goods and charges for oversize vehicles);
- the allocation of appropriate funds from the budget for road maintenance;
- taking stock of rural tracks;
- the continuation of the restructuring of the national railway company ( Régie des
chemins de fer du Mali );WT/TPR/G/43 Trade Policy Review
Page 8
- the application of community, regional and international provisions regarding
transport and communications;
- the signing of agreements with certain countries on setting up and using Mali’s
warehouses abroad;
- the extension of the national telephone network and rationalization of the cost of
telecommunication services for users.
(c) Tourism
24. The objectives pursued in this sector are as follows:
- To promote the upgrading and establishment of facilities in tourist areas;
- to protect the natural environment, tourist sites and monuments, wildlife parks and
nature reserves;
- to improve the development and promotion of tourist activities.
25. In this context the Government has taken certain measures, such as:
- Restructuring of the Tourist Authority, which has become the Malian Office for
Tourism and the Hotel Industry ( Office Malien du Tourisme et de l'Hôtellerie
(OMA-THO));
- encouraging the private sector to create the infrastructure for tourism and hotels and
to make travel agencies more dynamic.
(d) Craft industry26. The Government intends to encourage the craft industry to play an important part in the
country’s economic and cultural development by preserving traditional crafts, introducing changes to
improve quality in production methods and organizational procedures and making better use of the
sector’s full potential.
27. In order to achieve this, certain measures have led to:
- The sector being organized;
- training for craft workers;
- the establishment of a technical and financial infrastructure;
- the promotion of exports of craft products.
(e) Mining
28. Mali has great mining potential and the Government aims to:
- Improve production of items for export, particularly gold and diamonds;
- develop import substitutes (agricultural inputs, construction materials, etc.);
- seek and develop energy-providing materials (wood substitute products, other sources
of energy).
(3) G
ENERAL DESCRIPTION OF THE IMPORT AND EXPORT REGIME
29. The economic reforms undertaken with the development partners have led to the adoption of
free-market and tariff incentives in the field of trade.Mali WT/TPR/G/43
Page 9
30. Mali’s foreign trade is governed by Decree No. 89-194/P-RM of 15 June 1989 on the
regulation of foreign trade, which provides for two types of economic regime - the free-trade or
common system, and the system involving prohibitions and exceptions.
31. Foreign trade procedures are based on a system of automatic recording embodied in
"Intentions to import" and "Intentions to export" operated by a single department.  Intentions to
import and export are issued automatically.
(i) Imports
32. Import procedures have been simplified and made easier.  As part of the liberalization of
trade, “Intentions to import” have replaced import licences and certificates since 1989.  Imports aresubject to inspection by the Société générale de surveillance  (SGS) prior to shipment.
33. The SGS deals with all import transactions with an f.o.b. value of at least CFAF 3,000,000
and, following inspection, issues a certificate to be attached to the “Intention to import” for customs
clearance purposes.
34. Article 23 of Decree No. 89-194/ P-RM stipulates that for reasons connected with security or
public morality, safeguarding consumer interests, the protection of industrial or commercial property,
the protection of origin or other considerations of a political, economic or social nature, the Trade
Minister may lay down special conditions affecting imports of certain products.
(ii) Exports
35. Any export of a commercial nature is carried out using a document entitled "Intention to
export", which is issued automatically by the National Directorate for Economic Affairs, without any
restrictions regarding quantities or values.
36.  The Trade Minister may determine by order the conditions under which certain export
transactions may be carried out.
(4) T
RADE POLICY FRAMEWORK
(i) Laws and regulations governing the implementation of trade policy
37. The constitution is the basic law of the Republic.
38. The National Assembly passes laws which may be initiated by the Government (bills) or
proposed by Parliament.
39. The President of the Republic is invested with the power to negotiate and conclude
international agreements, which will, depending on the circumstances, be ratified by the National
Assembly.  The President may delegate this power to a minister or a member of the Executive.
40. The trade policy is fully in accordance with the major economic policy guidelines adopted by
the Government.
41. Law No. 92-002 of 21 August 1992 on the Commercial Code covers a number of areas:
- Commercial activities;
- services;- settlement of commercial disputes;WT/TPR/G/43 Trade Policy Review
Page 10
- companies and enterprises;
- banking and finance;
- competition;
- inspection of goods.
42. This Law is supplemented by those establishing codes dealing with customs matters, taxation
and investments, the Mining Code and exchange control regulations, etc.
(ii) Formulation and review of trade policies
43. The public services and the private sector are responsible for formulating trade policy.
44. Trade policy is implemented principally by the Ministry of Industry, Commerce and Crafts
and the Ministry of Finance.
45. Other ministries are involved, depending on their responsibilities, in the formulation and
implementation of trade policy.
46.  The private sector is to a large extent involved in the formulation and conduct of trade policy
via the Mali Chamber of Commerce and Industry, certain federations (of employers and craftindustries), the Chamber of Agriculture, groups and associations of exporters and consumers, the
professions, etc.
(iii) Bilateral, regional and multilateral trade agreements
(a) Bilateral agreements
47. Mali’s bilateral trade is governed by trade agreements, the most recent of which are with
Algeria, Egypt and Libya. Other agreements still apply, while some have to be updated and new
agreements are to be negotiated.  With a view to promoting trade relations, these agreements are based
on certain points such as:
- Most-favoured-nation clause treatment (MFN clause);
- payment in a freely convertible currency;
- participation in one another’s trade events;
- creation of a consultative framework.
48. Mali has also created the basis for the promotion, safeguarding and guaranteeing of inward
investment via agreements on investment protection and guarantees. Such agreements exist between
Mali and Tunisia, Algeria, South Africa and Egypt, and other agreements of this type are under
negotiation with Canada and Morocco.
(b) Regional agreements
49. These agreements are intended to encourage intra-community trade and to attract foreign
investors, who will benefit from a wider market.
50. Mali is a signatory member of the West African Economic and Monetary Union (WAEMU)
and the Economic Community of West African States (ECOWAS).
51. ECOWAS has adopted the trade liberalization plan, while WAEMU, in addition to the single
currency, intends to establish a customs union and a common external tariff.Mali WT/TPR/G/43
Page 11
52. Mali is a signatory to the Fourth Lomé Convention between the European Union and 71 ACP
(African, Caribbean and Pacific) countries.  This Convention grants tariff and non-tariff concessions
on the Community market to products originating in Mali, except for agricultural products to which
the common agricultural policy applies.
53. Mali is also a signatory to the Treaty Establishing the Organization for the Harmonization of
Business Law in Africa (OHADA).
54. In addition, Mali is a member of the West African Development Bank (BOAD), the Central
Bank of the West African States and the Islamic Conference Organization.
(c) Multilateral agreements55. Since becoming independent, Mali has applied certain GATT rules in practice and became a
contracting party to the General Agreement on 11 January 1993.
56. It has been a founder Member of the WTO since 31 May 1995.  Mali’s Ambassador in
Morocco, having received full powers, in fact signed the Uruguay Round Agreements on behalf of his
country.  Mali has entered into undertakings under all the WTO agreements, except for themultilateral agreements. As a least-developed country, Mali supports the economic and social
objectives of sustainable development which the WTO has set itself and genuinely hopes that the
measures taken to help developing countries, particularly the LDCs, will result in concrete action to
facilitate their integration into the world economy.
57.  Mali is a member of the United Nations and its agencies.  It is also a member of the
International Monetary Fund and the World Bank.
(d) Other agreements and arrangements
58. Mali is one of the recipients of the non-reciprocal benefits associated with the Generalized
System of Preferences (GSP) and granted by industrialized countries (exports of the originating
products in question enter these countries free of customs duties or at preferential rates).  Mali is alsoa member of the Common Fund for Commodities.
(5) I
MPLEMENTATION OF TRADE POLICY
(i) The trade policy measures applied in Mali can be summarized as follows:
(a) Customs duties
59. The tariff reforms embarked upon within the framework of economic liberalism were aimed
at:
- Simplifying the system of duties and taxes and making it less onerous;
- rationalizing the system for protecting locally produced goods.
60. In this connection certain measures have been taken, such as:
- The suspension of export duties and taxes;
- application of the Harmonized System (HS);
- the granting of tax benefits for imports of capital goods, raw materials and inputs. The
reforms have also enabled duties and taxes to be regrouped, the main ones being:
* customs duties (DD):  0-5 per cent;WT/TPR/G/43 Trade Policy Review
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* fiscal import duties (DEI):  0 - 15-30 per cent;
* the Community Solidarity Levy (PCS) 1 per cent;
- the tax on services (CPS):  5 per cent;
- value added tax (VAT):  10-17 per cent.
61. The amount on which taxes are based is the c.i.f. frontier value of the goods (the value applied
is based on the Brussels Definition).
62. With regard to the submission of declarations, the documents required are:
- The supplier’s invoice;
- the “Intention to import or export”;- the SGS inspection certificate for imports;
- the certificate of origin;
- health and phytosanitary certificates.
63. It should be noted that the Common External Tariff (CET) is shortly to be established within
WAEMU.
(b) Preshipment inspection
64. Mali has had a preshipment inspection contract with Société générale de surveillance  (SGS)
since 1989 and this was renewed in 1995.
65. The SGS is responsible for inspecting prior to shipment the quality, quantity, price and
customs heading of goods to be imported with an f.o.b. value of CFAF 3 million or more.
66. A certificate is issued by the SGS following each inspection operation and this is attached to
the import papers for customs clearance purposes.
(ii) Current trade liberalization programme
67. Following independence, Mali adopted an interventionist economic policy in which the State
became the main economic operator in both fore ign trade transactions and the marketing of
agricultural products, as well as in the distribution of essential commodities and mass consumer
goods.
68. From 1980 onwards, after it was found that a number of economic and social imbalances were
persisting and intensifying, the Government embarked upon a massive programme of economic
reform in collaboration with its development partners.  The reforms gradually eased Mali into a free-
market system, in which the private sector has to  play a key role in promoting economic growth.
69. The revision of the trade policy was based on the following points:
- Withdrawal of the State from the agricultural sector and economic activities;
- opening-up of the marketing campaign to private traders;
- the introduction of freely determined prices and free competition;
- trade liberalization (no import or export quotas or restrictions);
- simplification, facilitation and relaxation of foreign trade procedures;- adaptation of Mali’s laws and regulations to the new economic environment and
restructuring of the support services for the private sector with a view to promoting
private enterprise.Mali WT/TPR/G/43
Page 13
(iii) Problems on the domestic and foreign markets
(a) Domestic market
70. Inadequate supplies on the domestic market are the result of a number of factors, the main
ones being:
- Climatic uncertainties, for a country which is mainly agro-pastoral;
- the poor performance of the 1960s and 70s;
- the inadequacy of the basic infrastructure;
- technological backwardness;
- the lack of professionalism among Malian firms and the failure to adapt training
structures to requirements;
- the non-existence of export credit and guarantees;
- obsolete production tools;
- weak or non-existent marketing;
- the failure to use information technologies  (Internet, CD-ROMs, diskettes, etc.) and
the problem of access to sources of information.
(b) Foreign markets
71. Mali’s imports continue to be dominated by intermediate and capital goods and hydrocarbons,
the bills for which remain exposed to pressures to which these products may be subject.
72.  Malian products receive or are eligible for preferential treatment under the Generalized
System of Preferences (GSP) or the Lomé Conv ention, although not all products are covered.
73. The expansion of Mali’s exports is hampered by certain barriers such as quantitative
restrictions, standards or other stringent regulations.
74. Mali has a trade deficit, even in its intra-community trade within WAEMU and ECOWAS.
75. Achievement of the community objectives must inevitably benefit all countries but do the
community rules have to be applied rigorously and conditions of complementarity established
between subregional undertakings?
IV. CONCLUSION
76. The economic reform programmes embarked upon in Mali from the 1980s onwards have been
aimed at economic liberalization and the emergence of a dynamic private sector.  The Malian
Government intends to maintain, continue and consolidate this free-market process by adapting the
legislative and regulatory texts and promotion structures, in conformity with the national, subregionaland international economic contexts.
77. The State has thus introduced a democratic process, the rule of law and good governance with
a view to continuing and reinforcing structural reforms in order to achieve sustainable growth and
economic development.
78. Mali is and will continue to be very active in promoting subregional integration (WAEMU,
ECOWAS) and intends to assume its obligations under the multilateral trading system.WT/TPR/G/43 Trade Policy Review
Page 14
79. However, Mali’s level of development and its specific economic and social requirements limit
the expression of this desire for an open-door policy.
80. If Mali’s technical assistance requirements continue to be taken care of by the international
Community and if this effort is stepped up, it will enable the Malian Government to remove certainproduction and promotion constraints and as a result facilitate Mali’s insertion into the world
economy, where the trend is towards globalization.
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