WORLD TRADE WT/LDC/HL/12/Add.3
23October 1997
ORGANIZATION(97-4638)
High-Level Meeting onIntegrated Initiatives for
Least-Developed Countries 'Trade Development
COUNTRY-SPECIFIC ROUND TABLES: DOCUMENTATION
Djibouti
Addendum
Documentation fortheRound Table Meeting forDjibouti.WT/LDC/HL/12/Add.3
Page2
DJIBOUTI
Replies totheQuestionnaire
A. Trade policy
(a) What arethesectors thatyoubelieve haveunexploited orunderexploited export potential?
Thesectors having unexploited orunderexploited export potential are:
- Tourism;
- sea-fishing andprocessing itsproducts;
- stock-raising andprocessing itsproducts;
- exploitation ofsaltdeposits.
(b) Could youplease define yourcountry 'sperspective ofthereasons foranychanges inthe
structure anddirection ofexports andimports?
Until theearly1990s, therewerenomajor changes inthestructure anddirection oftradeflows:
- Thecountry isessentially animporter ofmost ofitsgoods andservices needs;
- theeconomy isstrongly dependent oninternational assistance services;
- themostintensive economic relations arewithEthiopia, which istheprincipal supplier
ofDjibouti inrespect offruitandvegetables.
Nevertheless, inrecent years, particularly 1992, aslight change hasbecome noticeable asa
result oftheexport oflocalproducts, suchassaltandfish,andinrespect ofre-exports.
More particularly, since theintroduction ofastructural adjustment plan, taxation hasbeen
usedasaninstrument offiscal policy.
Attheinternational level, theleastdeveloped countries inparticular havebeenconstrained,
under thepressure oftheinternational institutions, tooptforgrowth policies directed towards exports
rather thanthepolicy ofimport substitution previously practised.
Interms ofexports, theEuropean Union represented 81percentofthetotal, more thanhalf
ofwhich goestoFrance. Theshare ofEurope hasincreased, since ithadbeen4percentin1990.
Africa (other thanNorth Africa) comes insecond place with17percentofthetotal, having virtually
tripled incomparison with1990(6percent). Theshare oftheZEPcountries hasincreased considerably,
from 5percentin1990 to14percentin1994, almost atripling ofexports.
In1994, thechiefmarket intheZEPwasSomalia, which received almost 70percentofthe
total, thevalue ofwhich increased considerably (fourfold) during thesame period. Ethiopia isthe
second export market with18percentofthetotal. TheNearandMiddle Eastrepresent only4percent,
although theirshare in1990 hadbeen36percent.WT/LDC/HL/12/Add.3
Page3
Inthecaseofimports, theEuropean Union accounts for50percentofthetotal. Asiaisin
second place with20percentofthetotal, followed bytheNear andMiddle East(10percent). The
share ofeachofthesethreesuppliers hasremained relatively constant throughout thereference period.
Theshare oftheZEPcountries intotalDjibouti imports decreased during thisperiod, from
13percentin1990to9percentin1994. Ethiopia isthemainZEPsupplier ofDjibouti, with32per
centofimports. Nevertheless, imports fromEthiopia havefallen considerably andrepresented in1994
only43percentoftheir1990 value.
Interms ofmajor groups ofproducts, thefoodanddrink category hasalways come first,from
aminimum of19percentofthetotal(in1984) toamaximum of28percent(in1988 and1994).
In1994, thesecond category wasthatofmiscellaneous machinery andelectrical equipment
with121percentofthetotal(16percentin1984). Textiles andfootwear areinthirdplace (101per
centin1994and1984). Nextcome hydrocarbons andderivatives (8percentin1994), thepercentage
ofwhich hasremained fairly constant throughout theperiod, and,inequal place, chemicals andtransport
vehicles (7percentin1994) asagainst 5percentand11percentrespectively in1984.
(c) What have been theobjectives oftrade policy inthemost recent period, compared to,
say,twodecades ago?
Inview oftheweakness oftheagricultural andindustrial sectors, thecountry 'sauthorities
haveputtheemphasis ontrade andtheprivate sector astheengine foreconomic development.
Furthermore, theintroduction ofastructural adjustment programme hasmade itpossible to
define theguidelines forthereforms which havebeenundertaken since thebeginning of1996:
- Export promotion;
- gradual reduction ofthedebtlevelandofthedomestic arrears oftheState;
- acceleration ofthestructural reforms related tothedemobilization ofmilitary personnel;
- reform ofthecivilservice;
- restructuring ofpublic enterprises;
- liberalization ofthelabour market andstrengthening thesocial welfare system;
- harmonization ofDjibouti trade legislation withtheWTO provisions.
Withaviewtopromoting theprivate sector, theInvestment Code wasrevised in1994togive
some tempting taxadvantages:
Inthematter offoreign trade
- Thedevelopment andpromotion ofDjibouti asamajor international shipping, trading
andfinancial city;
- promotion oftertiary sector activities;WT/LDC/HL/12/Add.3
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- promotion ofprivate sector activities.
Trade activities
- Renovating andmodernizing theport,airport, road, railway andstorage infrastructures
inorder tofacilitate transit andgoods-distribution activities;
- improving competitiveness ascompared withrivalregional infrastructures;
- seeking ways ofencouraging anincrease inpassenger andgoods traffic attheairport
through airagreements;
- encouraging theestablishment ofnational enterprises intheareaofinternational road
andseatransport;
- encouraging theestablishment ofeconomic interest groupings forjointimports;
- training ininternational trade financial techniques; and
- spreading knowledge oftechniques foraccess tointernational databases onproduct
prices andmarket research.
Investment
- Strengthening regional cooperation programmes inthevarious industrial activities;
- possible offshore installation ofnational orforeign private undertakings, banks, trade
representation offices andother activities; and
- simplifying administrative procedures bysetting upasingle formalities centre for
enterprises.
(d) What aretheMinistries incharge oftrade policy matters, including formulation,
implementation,enforcementandmonitoring?Howiscoordinationmade?Whataretherespective
rolesoftherelevant Ministries (giveparticular attention totariff policies andother policies directly
affecting exports andimports ofgoods andservices)?
- TheMinistry ofTrade andTourism isresponsible forformulating andfollowing up
trade policies andforadjusting instruments andmeasures according tofluctuations
intheeconomic situation;
- thePlanningMinistryhasthetaskofestablishingthemainguidelinesforthecommercial
sector, theobjectives tobereached inthemedium andlongterms anddetermining
ways andmeans ofpromoting thesector, inkeeping withtheother guidelines and
priorities ofthenational economy;
- theMinistry ofEconomic Affairs andFinance isresponsible forinstituting thevarious
taxes andregulations concerning theaccess andtransit ofgoods andservices andfor
collecting therelevant duties;WT/LDC/HL/12/Add.3
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- theMinistryofTransportandTelecommunicationsisresponsibleforpreparingadequate
reception structures andsupplying thenecessary equipment forimproved promotion
ofnational andinternational trade (port, airport, roads andrailways);
- theMinistry ofAgriculture ensures thehealth andphytosanitary inspection ofimported
products andtheirrespect fornational andinternational standards withregard tothe
protection ofpublic health andtheenvironment;
- theMinistry ofJustice hastogiverulings concerning disputes anddifferences between
economic operators andtheadministration; and
- theMinistry ofIndustry, Energy andMines isresponsible interaliafortheexploitation
ofmineral andenergy resources, forpromoting theindustrial sector andfordefining
industrial policy.
Inaddition, theDjibouti International Chamber ofCommerce andIndustry (CICID) isgenerally
involved intheformulation ofeconomic policy (economic guidelines, development plans andfinance
acts)andintrading policy inparticular, especially ontheoccasion ofthemeetings ofthevarious
commissions, including theJoint Djibouti-Ethiopia Commission.
Lastly, thebanking sector -theDjibouti Development Bank andtheprivate banks -andthe
insurance companies playaconsiderable roleinformulating thetradepolicy oftheRepublic ofDjibouti.
There isnocoordination among thevarious administrative departments, ontheonehand, and
between these andtheprivate sector, ontheother. Nevertheless, atechnical assistance project for
institutional reform hasjustbeeninitiated through anational commission forinstitutional reform made
upofthree committees responsible forgovernance, coordination among thevarious departments and
administrative reform, respectively.
(e) Howaretheprivate sector andacademic institutions associated withtheformulation and
conduct oftrade policy?
Theacademic institutions areinanembryonic stateandarenotassociated withtheformulation
andconduct oftrade policy. Nevertheless, there isagrowing tendency forthepublic authorities to
associatethemmoreandmorewiththedefinitionandimplementationoftradepolicybytheestablishment
ofaBTS(brevet detechnicien supérieur) ininternational trade andatraining institution (LIC).
TheDjibouti International Chamber ofCommerce andIndustry, therepresentative oftheprivate
sector, hasadvisory powers onlyand,consequently, doesnotplayasufficient roleindecision-making
andtheformulation oftrade policy.
(f) What aretheinstitutions inyour country thatcanplayaroleinimplementation ofa
trade-related project atthelocal level? State their respective roles.
- TheMinistry ofTrade andTourism isresponsible fordefining andapplying tradepolicy
andalsoforinternational trade, development andthepromotion offoreign trade, etc.
- Thebanking andinsurance sector isresponsible forpromoting theprivate sector by
granting credit facilities andplaying anactive partinfinancing investment projects.WT/LDC/HL/12/Add.3
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- TheMinistry ofIndustry, Energy andMines actstoexploit mineral andenergy
resources, topromote theindustrial sector, etc.
- TheMinistry ofTransport andTelecommunications canhelptodevelop trade by
renovating theexisting infrastructures andbyusing thenewtechnologies (Internet,
CD-ROM, etc.)inrespect oftelecommunications andservices.
- TheCICID cansupply thenecessary commercial information, particularly withregard
toimport andexport management, andorganize training sessions oninternational trade
techniques.
- TheMinistry ofFinance andEconomic Affairs dealswithmatters relating toeconomic
andtaxpolicy andtoquestions connected withcustoms policy.
- TheDevelopment Bank (BD) canhelptofinance development projects.
- TheEconomic Affairs Service canprotect consumers andimporters bycontrolling
quality andstandards.
- TheNational Tourism Office canhelptopromote handicrafts.
(g) What arethemain lawsandregulations dealing withtrade policy -onexports andimports?
Please provide ashort description ofeach.
Intheabsence ofaframework trade policy actandofanational commercial code, certain
provisions oftheFrench Commercial Code areinforce.
Djibouti hasalsoageneral taxation codeandafinance actproviding interaliaforataxation
system.
Atpresent, themain lawsandregulations dealing withtrade policy -exports andimports -
are:
1. Trade legislation
- Actrelating tovarious social-order measures;
- Actrelating tovarious means ofpromoting exports -export processing zone;
and
- Acttofacilitate thestart-up andfunctioning ofenterprises.
2. Investment Code
TheCode, established in1984 andrevised in1994, isdesigned toencourage
thestart-up ofenterprises bygiving them taxadvantages foraperiod offromfiveto
tenyears according toregime.
Regime A:forinvestments between fiveand50million.
Regime B:forinvestments exceeding 50million.WT/LDC/HL/12/Add.3
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Investment Code approval isgranted toenterprises having anactivity which comes within the
scope oftheInvestment Code.
(h) What arethemain instruments oftrade policy -onexports andimports? Please elaborate
(e.g.onimport restrictions, thequestions might be:onwhat products arethere anyimport bans;
onwhat products arethere quantitative import restrictions; licensing requirements, etc.; What
isthehighest tariff ratecurrently inuse;arethere anyexcise taxes, other "domestic" taxes that
areapplied differentially toimported goods, ortogoods ofatypethatareprincipally imported).
There arenoquantitative, qualitative ortariff restrictions oneither imports orexports.
Themain instruments oftrade policy -onexports andimports -are:
1. Import measures
(a) Customs formalities
Imports arechecked before andafterconsignment byCOTECNA, acompany setup
bytheDjibouti authorities on20January 1996 toprevent taxevasion.
Apart from thisveryrecent control, customs regulations areveryflexible.
(b) Domestic Consumption Tax
Adomestic consumption tax(TIC) ispayable onallimported products. Under the
Finance Actof1997, andforsocial reasons, theTICaffects imports progressively inthe
following way:
- 5and10percentonvitalcommodities;
- 28percentonbuilding materials;
- 33percentonmost products (textiles, furniture, etc.); and
- 40percentonluxury products (televisions sets,videos, electronic products,
non-utility vehicles, etc.).
Thehighest import dutyisapplied tocertain alcohols inthefollowing way: 33per
centofTICplus160percentofsurtax.
Asforexcise taxes, there isonlyonedomestic product which istaxed, i.e.mineral
waters andnon-alcoholic drinks, while theproducts described assensitive toimports areall
surtaxed: oilproducts, tobacco, alcohols andkhat.
There hasnever beenapreferential customs regime inDjibouti.
(c) Tariff ratequotas
Because oftheliberal nature ofitseconomy, Djibouti hasnotariff ratequotas.
(d) Other levies andtaxes
There arenoother levies ortaxes inourcountry.WT/LDC/HL/12/Add.3
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(e) Import bans, quantitative import restrictions andlicensing requirements
Generally speaking, there havenever beenbans, quantitative restrictions orlicensing
requirements forimports. Nevertheless, animport licence isrequired inthecontext ofthe
khattrade.
Forreasonsofsecurity,publichealthandmorality,certainproductsarestrictlyregulated.
3. Export measures
(b) Export duties andtaxes
There arenoexport duties andtaxes inourcountry.
(c) Subsidies, licences, bansandother measures limiting exports
Thelegalexport regime doesnotprovide foranylicence, subsidy, banorothermeasure
restricting exports orre-exports.
(i) IncaseyouareaWTO Member orareintheprocess ofacceding, howisyour country
preparing itself tocomply withtheWTO Agreements?
Atpresent, Djibouti istrying toharmonize itslegislation withthatstemming fromthevarious
multilateral tradeagreements oftheUruguay Round. Technical assistance fromthevarious institutions
organizing theHigh-Level Meeting onLeast Developed Countries (27-28 October 1997, atGeneva)
isthusofcrucial importance toputintoeffect theharmonization process thatmust beaddressed.
(j) What isthestate offamiliarity withtheWTO framework:
- Among government andgovernment-related agencies?
- Intheprivate sector?
Theregulations oftheWTO framework agreement aretootechnical and,consequently, too
complex forboththeadministration andtheprivate sector. Oneofthechief duties oftheMinistry
ofTrade andTourism istomake boththepublic sector andtheprivate sector aware oftheWTO rules
andregulations. Consequently, theMinistry ofTrade isorganizing aseminar ontrade policy inthe
month ofOctober 1997 atDjibouti, thepurpose ofwhich istoinform alltheeconomic operators of
thenewrules ofinternational trade.
(k) What areyour technical assistance requirements withregard toyour compliance with
theWTO Agreements?
Ifitistomake fulluseofitsgeographical advantages anditseconomic liberalism, playan
active roleinregional tradeandobtain access toworld trade, itisdesirable thattheRepublic ofDjibouti
should havethetechnical, financial andhuman assistance needed toestablish anadequate tradepolicy.
Toenable thecountry tocomply withtheWTO Agreements, theforms oftechnical assistance
needed fortheapplication oftheprovisions andrules oftheWTO multilateral agreements are:
- Technical assistance tomake government institutions andtheprivate sector familiar
withtheWTO Agreements;WT/LDC/HL/12/Add.3
Page9
- technical assistance toassestheimpact oftheseAgreements ontheeconomy ofDjibouti;
- technical assistance totraintheofficials oftheMinistry ofTrade andother government
andgovernment-related agencies intheformulation, implementation andmonitoring
ofatrade policy specific toourcountry, withdueregard foritsadvantages and
weaknesses;
- technical assistance toequip thecountry with newcommunications techniques
(computerization, CD-ROM, Internet etc.)andforthenecessary training intheuse
ofthese tools.
(l) Inwhich specific areas oftheWTO Agreements doyouhave technical assistance needs
(e.g.market access, agriculture, rules (anti-dumping, subsidies, import licensing, rules oforigin,
safeguards etc.), TBT andSPS, services, TRIPS)?
Thespecific areas inwhich Djibouti requires technical assistance areasfollows:
- Thelegislative andregulatory textsonimports andexports, i.e.regarding market access
andrules oforigin;
- services (telecommunications andshipping);
- themachinery forhealth andphytosanitary standards, quality controls etc;
- TRIPS; and
- complying withtheobligations incumbent uponDjibouti asaresult ofitsmembership
ofWTO.
(m) What isyourassessment ofyourexisting trade analysis andnegotiating capacities, both
multilateralandbilateral,inareasalreadycoveredbytheWTOAgreementsandothertrade-related
areas, e.g.competition policy andtrade andenvironment?
Atpresent,wearestillincapableofhandlingtheWTOtradeanalysisandnegotiatinginstruments,
intheabsence ofanational information service ontheWTO provisions.
B. Obstacles totrade expansion
Obstaclestotradeencompassingproblemsinexportmarkets,infrastructure,humancapacities,
institutional bottlenecks, trade financing problems andgapsintrade information caninhibit
aleastdeveloped country from taking fulladvantage oftrading opportunities.
(a) What arethemain bottlenecks inhibiting thedevelopment ofsustained export capacity
ofgoods andservices (e.g.customs facilitation, freight charges, quality management, elimination
ofcumbersomelegalandadministrativeprocedures,paucityofhumanskills,accessatinternational
prices toimported inputs, orinadequate telecommunication, portandtransport facilities, etc.)?
Thechief elements constituting bottlenecks inhibiting theexpansion oftrade aremainly due
tophysical andstructural constraints:
- Inclemency oftheclimate;WT/LDC/HL/12/Add.3
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- virtual absence ofcultivable land;
- highcostoflocalproduction factors (electricity, water, land, labour etc.);
- narrowness ofthelocalmarket;
- inadequate development ofthehuman factor;
- levelofpersonnel skills;
- facilitation ofpassage through thecustoms (pre-consignment inspection);
- absence ofquality controls;
- absence ofaDjibouti trade promotion service;
- lackofskilled personnel intheforeign trade service;
- inadequate linkswiththeland-locked countries oftheregion which haveshown interest
inDjibouti products; and
- absence ofatrade promotion policy intheport.
(b) Arethere anyinstitutional bottlenecks, which mayimpede theefficient conduct ofyour
country 'strade policies? Provide details. Forexample, what aretheproblems perceived bythe
different actors, e.g.exporters, producers, service providers (banks, insurance companies, quality
control,transportersetc),professionalassociationsandMinistries?Areproblemsmainlyperceived
inthearea of:
(i) Human resources;
(ii) management oftheinstitution;
(iii) financial andmaterial resources;
(iv) communication.
Thechief institutional elements constituting bottlenecks are:
- Thelevelofskills andtraining ofhuman resources;
- thelackofcoordination among thevarious administrative departments andbetween
theadministration andtheprivate sector;
- bureaucratic delays inadministration;
- lackofcapital andofcredit available forinvestment andthelackofthematerial
equipment needed tocarry outsuccessfully theactivities undertaken.
(c) What arethemain bottlenecks toexport diversification ?
Thisquestion islinked withthereply to(a)above.
(d) Ifinvestment intheproduction ofgoods andservices isinadequate, what arethemain
reasons? Please elaborate them (e.g. structural constraints, difficulties inattracting foreign
investment, limited enterprise development, financing, lackofappropriate technology, etc.).
- Inclemency oftheclimate;WT/LDC/HL/12/Add.3
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- virtual absence ofcultivable land;
- highcostoflocalproduction factors (electricity, water, land, labour, etc.);
- lackofcapital andofcredit available forinvestment andthelackofthematerial
equipment needed tocarry outsuccessfully theactivities undertaken;
- narrowness ofthelocalmarket;
- inadequate development ofthehuman factor;
- absence ofaDjibouti trade promotion service toattract foreign capital;
- lackofskilled personnel forinvestment promotion;
- theabsence ofsatisfactory roadinfrastructures;
- inadequate linkswiththeland-locked countries oftheregion which haveshown interest
inDjibouti products; and
- absence ofmachinery tofacilitate investment financing.
(e) Isthere anational policy toencourage export-related investment opportunities? Please
elaborate. What arrangements areinplace forreviewing, drafting andnegotiating contractual
arrangements withforeign investors?
Thenational policy toencourage export-related investment takes theform oftheadvantages
arising from:
- TheInvestment Code;
- theexport processing zoneActof1994;
- theportcustoms-free zoneActofJuly1971;
- theportcustoms-free zoneextension ActofJuly1980; and
- thefreeenterprise ActofOctober 1994.
Asforthequestion concerning contractual arrangements withforeign investors, thecountry 's
investment promotion legislation doesnotdiscriminate between citizens andforeigners. Consequently,
thenational Investment Code applies tobothcitizens andforeigners.
(f) What arethemain obstacles tothetransfer, development andacquisition oftechnology?
Isthere anynational policy/strategy inthisarea? Please elaborate.
Theweakness oftheproduction machinery isnotconducive tothetransfer oftechnology.
Consequently, there isnonational strategy todevelop technology.WT/LDC/HL/12/Add.3
Page12
(g) What areyour technical assistance orother assistance needs with respect tosupply
constraints?
Thetechnical assistance needed todevelop supply isconnected with:
- Theestablishment ofanational policy andstructure topromote investment inDjibouti;
- thereduction ofthecostofproduction factors. Forexample, electricity isvery
expensive inDjibouti andresearch ongeothermal andwindenergy should beupdated
andcontinued;
- training ofhuman resources;
- investment financing;
- international promotion ofDjibouti 'sadvantages; and
- development ofthevarious means oftransport connecting Djibouti totheland-locked
countries oftheregion soastostrengthen theroleofDjibouti asatransit port.
Trade promotion andtrade support services
(h) Doyour enterprises, especially small andmedium enterprises, experience difficulties in
expanding their exports? What arethese problems inthemajor export sectors?
Small andmedium enterprises havedifficulties inexpanding theirexports. Theproblems
encountered aremainly ofafinancial andmarketing nature. Moreover, there isalackofpersonnel
skilled ininternational trade techniques. Sofar,there arenoorganizations inDjibouti which are
especially responsible forpromoting exports.
(i) Whataretheproblemsforyourenterprisesinobtainingreliableandup-to-dateinformation
onexport/import business opportunities?
Theabsence ofatradeinformation centre capable ofsupplying themostreliable andmostrecent
data, inviewofthelackofmodern means ofcommunication.
(j) Canyour enterprises offer products ofinternationally acceptable design, quality and
packaging toforeign buyers? Ifnot,what aretheproblems?
Theweakness oftheproduction machinery prevents localproducers from offering products
ofinternationallyacceptablequality.Nevertheless,someserviceenterprisessuchastelecommunications,
theport, etc.areabletooffer services ofverygood quality.
(k) What problems, other thaninterms oftrade policy, doyouanticipate indeveloping the
export ofservices (e.g.computer software, tourism)?
Thelackoffinancial resources andofanappropriate strategy limits thedevelopment of
advantages concerning thesupply ofservices. There isalsoaproblem connected withpromotion and
market research.WT/LDC/HL/12/Add.3
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(l) What arethetechnical/professional problems encountered bytrade support institutions
(e.g.trade promotion council, chamber ofcommerce, exporters association, etc.)inyourcountry
inproviding their services toexport/import enterprises?
There arenotmany trade support institutions inDjibouti. Only theChamber ofCommerce
canplaythisrole.Thelackoftechnical andfinancial resources andofpersonnel experienced inadvising
enterprises results inanunsatisfactory situation inthisarea.
(m) What problems anddeficiencies areexperienced byenterprises intheir international
purchasing andinventory management?
Problems inthisareaareusually connected withthelackofinformation onthemostinteresting
sources ofsupply andalackofknowledge ofinternational tradetechniques. There isalsoaninadequacy
oftraining inmodern management techniques fortheenterprises. Thepre-consignment inspection
introduced byCOTECNA isregarded bytheenterprises asabottleneck.
(n) What arethepresent availability andarrangements fortrade finance facilities (e.g.export
credit guarantees, etc.)? Arethere anyperceived deficiencies inthisarea?
There arenofacilities forexporters.
(o) What arethemain problems inthewayofimproving export/import management skills
ofyour business enterprises? Doyouhave training programmes inthecountry? What arethe
deficiencies?
Atraining programme ininternational tradetechniques uptoBTSstandard hasbeenorganized
atDjibouti. Nevertheless, on-the-job training oftheemployees ofenterprises inimport/export
management isnon-existent.
(p) Does your trade representation service actively promote your trade? What arethe
weaknesses?
Thetrade representation offices outside thecountry arenotsufficiently developed toplayan
active partintrade promotion.
(q) Briefly describe yourtechnical assistance needs intheareaoftrade promotion andsupport
services.
Technical assistance needs intheareaoftrade promotion relate to:
- Training enterprise staffininternational trade techniques andstock management;
- theestablishment ofatradeinformation andadvice agency, staffed byqualified persons
andhaving modern resources forthecollection anddistribution ofinformation;
- theestablishment ofanadvisory centre onquality control andproduct packaging;
- theestablishment offinancing andexport support mechanisms; and
- strengthening financial andmaterial resources andtheskills ofthestaffoftrade
representation offices.WT/LDC/HL/12/Add.3
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Market access
(r) What areyour main market access problems?
Theproduction andexport mechanisms arenotsufficiently developed forthisquestion tobe
properly assessed. Nevertheless, problems linked withtheavailability ofinformation concerning foreign
markets andtheability tohandle international marketing circuits could bequoted asobstacles tomarket
access.
(s) What specific problems orbarriers, andinwhich countries, aremost troublesome for
your exporters?
Thereply tothisquestion isclosely connected withtheprevious one.
(t) Regional andsubregional trading arrangements (RTAs): please listRTAs towhich your
country belongs. Areyousatisfied withtheperformance ofthese RTAs? Please statetheproblems
ofeach. Doyouhave suggestions onhowtosolve these?
TheRepublic ofDjibouti isamember of:
- TheACP Group
- COMESA;
- IGAD; and
- TheArab League.
However, theabsence ofcooperation andthelackofthenecessary resources handicap the
effective performance ofthese institutions. Auseful firststepwould betobecome acquainted with
theoperating mechanisms andthetextssetting upthese organizations.
(u) Arethere anyproblems inutilizing theexisting market access preferences, suchasGSP,
GSTP? Please state thenature ofproblems relating toeachofthese.
There isnopossibility ofusing theexisting market access preferences (e.g.within thecontext
oftheLomé Agreement) because oftheweakness oftheproduction machinery. Nevertheless, the
lackofknowledge oftheprovisions ofthese systems prevent thefewnational exporters from taking
advantage ofthepreference system.
(v) What areyour technical assistance needs withrespect tomarket access?
Thetechnical assistance needs inthisareaare:
- Developing theawareness andtraining needed tomake better useofthese preference
systems; and
- theestablishment ofatrade information circuit concerning foreign markets.WT/LDC/HL/12/Add.3
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C. Technical assistance
Technical assistance isnormally provided todeveloping andleastdeveloped countries to
build orenhance their human resources andinstitutional capacities, provide trade information
andtrade-related legal support, aswellasimprove their supply capabilities inorder tomake
them more active players inthefieldofmultilateral trade.
(a) Totheextent thatthiskind ofinformation iseasily available, could youplease briefly
describe what trade-related assistance youhave received overthepastfiveyears from bilateral
andmultilateral sources andwhat projects/programmes arepresently under consideration inthis
area?
InJune1997, anITC/CICID seminar washeld, fortheprivate sector, toimprove knowledge
oftheWTO Agreements withrespect toservices while, inMarch 1996, aWTO/Ministry ofTrade
seminar washeldformembers ofthecivilservice inorder toimprove knowledge oftheWTO
Agreements within theadministration.
(b) Please summarize your technical assistance needs aswellasother needs asreflected in
thischeck-list. Please rank them interms ofpriority.
Ifitistomake fulluseofitsgeographical advantages anditseconomic liberalism, playan
active roleinregional tradeandobtain access toworld trade, itisdesirable thattheRepublic ofDjibouti
should havethetechnical, financial andhuman assistance needed toestablish anadequate tradepolicy.
Toenable thecountry tocomply withtheWTO Agreements, theforms oftechnical assistance
needed fortheapplication oftheprovisions andrules oftheWTO multilateral Agreements are:
- Technical assistance tomake government institutions andtheprivate sector familiar
withtheWTO Agreements;
- technical assistance toassess theimpact ofthese Agreements ontheeconomy of
Djibouti;
- technical assistance totrainofficials oftheMinistry ofTrade andofother government
andgovernment-related agencies intheformulation, implementation andmonitoring
ofatrade policy specific toourcountry, withdueregard foritsadvantages and
weaknesses;
- technical assistance toequip thecountry with newcommunications techniques
(computerization, CD-ROM, Internet, etc.)andforthenecessary training intheuse
ofthese tools.
Thespecific areas oftheWTO Agreements inwhich Djibouti requires technical assistance
areasfollows:
- Thelegislative andregulatory textsonimports andexports, i.e.regarding market access
andrules oforigin;
- services (telecommunications andshipping);
- themachinery forhealth andphytosanitary standards, quality controls, etc.;WT/LDC/HL/12/Add.3
Page16
- TRIPS; and
- complying withtheobligations incumbent uponDjibouti asaresult ofitsmembership
ofWTO.
Thetechnical assistance needed todevelop supply isconnected with:
- Theestablishment ofanational policy andstructure topromote investment inDjibouti;
- thereduction ofthecostofproduction factors. Forexample, electricity isvery
expensive inDjibouti andresearch ongeothermal andwindenergy should beupdated
andcontinued;
- training ofhuman resources;
- investment financing;
- international promotion ofDjibouti 'sadvantages; and
- development ofthevarious means oftransport connecting Djibouti tothelandlocked
countries oftheregion soastostrengthen theroleofDjibouti asatransit port.
Ourtechnical assistance needs inthematter ofpromoting trade relate to:
- Training enterprise staffintheinternational trade techniques andstock management;
- theestablishment ofatradeinformation andadvice agency, staffed byqualified persons
andhaving modern resources forthecollection anddistribution ofinformation;
- theestablishment ofanadvisory centre onquality control andproduct packaging;
- theestablishment offinancing andexport support mechanisms; and
- strengthening financial andmaterial resources andtheskills ofthestaffoftrade
representation offices.
Technical assistance needs withrespect tomarket access are:
- Developing theawareness andtraining needed tomake better useofthese preference
systems; and
- theestablishment ofatrade information circuit concerning foreign markets.
(c) Inthelight oftheinformation youhave been abletoprovide sofarinresponse tothe
questions inthischeck-list, what types ofinformation are,inyour view, stillmissing orcould
beimproved upon? Inorder toassist youinproviding thismissing information, would youneed
technical assistance?
Theinformation already provided inthisquestionnaire covers thevarious components ofour
trade policy andourtechnical assistance needs inthevarious areas.
(d) Does your country have thetechnological capacity andhuman resources tomake useof
thenewinformation/communication technology toolssuchasCD-ROM, theInternet etc?WhatWT/LDC/HL/12/Add.3
Page17
assistance would youneedtoenable yourcountry tousethese toolsinthecontext oftraining and,
more generally, inthecontext oftrade development?
Thetechnological capacity available inthevarious institutions intheRepublic ofDjibouti,
isinadequate.
Consequently, assistance isneeded toprovide computer equipment andthetraining necessary
foritsuseinthenational institutions involved inquestions oftradepolicy andthepromotion offoreign
trade.WT/LDC/HL/12/Add.3
Page18
DJIBOUTI
Integrated Response
Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion A(k):
Technical assistance tocomply with
theWTO Agreements
Technical assistance tofamiliarize
government institutions andthe
private sector withthe
WTO Agreements.UNDP/
UNCTADTheRAB/96/001 Regional Programme will
supply assistance totheGovernment of
Djibouti toaddress partofitsneeds inthis
area. Additional financing isrequired.
WTO -In1998, WTO willorganize anational
seminar inDjibouti onthemultilateral
trading system, mainly forthebenefit of
theministries concerned withquestions
relating totrade policy.
-Specialized regional seminars willbe
organized forthebenefit oftheFrench-
speaking least developed countries (1998
and1999).
Technical assistance toassess the
impact ofthese Agreements onthe
economy ofDjibouti.UNDP/
UNCTADTheRAB/96/001 Regional Programme will
supply assistance totheGovernment of
Djibouti toaddress partofitsneeds inthis
area. Additional financing isrequired.
World Bank Theeffects ofthesubmissions toGATS
could beestablished intheframework ofthe
programme onprivatization ofpublic
enterprises, acomponent ofPATARE
(technical assistance project foreconomic
reform).
Technical assistance totrain officials
oftheMinistry ofTrade andofother
government andgovernment-related
agencies intheformulation,
implementation andmonitoring ofa
trade policy specific toourcountry,
withdueregard foritsadvantages
andweaknesses.World Bank ApartofPATARE (technical assistance
project foreconomic reform) should involve
senior officials oftheMinistry ofTrade.
WTO -Athree-week trade policy course willbe
organized in1998 and1999 forthe
French-speaking least developed
countries, including Djibouti.
-Technical assistance willbesupplied on
thedevelopment andimplementation of
theWTO Agreements. SeeA(l)below.WT/LDC/HL/12/Add.3
Page19
Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion A(k):
Technical assistance forequipment
withnewcommunications techniques
(computerization, CD-ROM,
Internet, etc.) andforthenecessary
training intheuseofthese tools.UNCTAD Supply oftheTrade Analysis andInformation
System (TRAINS) byCD-ROM. Assistance
inusing anddistributing thesystem.* See
alsoB(q)Trade Point.
World Bank Intheframework ofPATARE, computers
andtheInternet networks willbefinanced as
wellasthenecessary training.
WTO SeeC(d).WT/LDC/HL/12/Add.3
Page20
Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion A(l):
Technical assistance inspecific areas
oftheWTO Agreements
Legislative andregulatory texts on
imports andexports, e.g.concerning
market access andrules oforigin.IMF Togiveassistance:
(1) Toreview andupdate customs
legislation andregulations toalign them
toWTO rules andstandards, including
aligning thecustoms valuation system
totheWTO requirements; and
(2) torationalize theimport tariff and
coordinate itwiththedomestic indirect
taxsystem, toassure efficient
collection ofrevenues. (1998:
Commitment inprinciple).
UNDP/
UNCTADTheRAB/96/001 Regional Programme will
supply assistance totheGovernment of
Djibouti toaddress partofitsneeds inthis
area. Additional finance isrequired.
WTO Specific assistance willalsobesupplied by
WTO toenable Djibouti toimplement the
WTO Agreements.
Thisassistance willconsist inaiding the
country toformulate/revise itstrade
legislation andestablish itsnotifications
procedures (1998-2000).
Services (telecommunications and
shipping)WTO Atechnical assistance mission willbesentin
1998 toensure thedistribution ofinformation
concerning thelegal framework and
negotiations onservices.
SPS: themachinery relating to
health andphytosanitary standards,
quality controls, etc.ITC ASPSseminar inthecontext ofthecurrent
project onfollow-up totheWTO Agreements
could beorganized inearly 1998.
WTO WTO willassist Djibouti tomake better use
oftheAgreement byinformational activities
such asthespecialized seminars tobeheldin
1998 and1999 andbysupplying teaching
material ontheSPSAgreement.
TRIPS WTO Inaccordance withtheTechnical Cooperation
Agreement between WTO andWIPO,
assistance willbegiven totrain Djibouti
personnel intheform ofinformation supplied
atspecialized seminars (seeA(k)) andby
supplying teaching material onTRIPS.
Implementing theobligations
incumbent upon Djibouti asaresult
ofitsmembership ofWTO.WTO Seereply toquestion A(k).WT/LDC/HL/12/Add.3
Page21
Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion A(m):
Assessment oftrade analysis and
negotiating capacities
Isstillincapable ofmastering theset
ofWTO trade analysis and
negotiating instruments, owing tothe
lackofanational information service
ontheWTO provisions.UNDP/
UNCTADTheRAB/96/001 Regional Programme will
supply assistance totheGovernment of
Djibouti toaddress partofitsneeds inthis
area. Additional financing isrequired.
WTO Inthecontext ofimproving theincorporation
ofDjibouti intothemultilateral trading
system, WTO will, regularly supply the
ministries concerned withdocumentation on
themultilateral andplurilateral agreements
andonthework inprogress inWTO
(1998-2000).WT/LDC/HL/12/Add.3
Page22
Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion B(g):
Technical assistance needs to
alleviate supply constraints
Establishing anational policy anda
structure toencourage thepromotion
ofinvestments.UNDP/
UNCTADTheRAB/96/001 Regional Programme will
supply assistance totheGovernment of
Djibouti toaddress partofitsneeds inthis
area. Additional financing isrequired.
Reduction ofthecostofproduction
factors (e.g. electricity isexpensive
inDjibouti andresearch on
geothermal andwind energy should
beupdated andcontinued).World Bank Inthecontext oftheprivatization ofpublic
enterprises, there isaninstitutional research
component fortheenergy sector.
Training ofhuman resources ITC SeeitemA(l).
WTO SeeA(k), A(l)andA(m).
Investment financing
Policy topromote Djibouti 's
advantages internationally.World Bank Intheframework ofthepublic enterprises
component ofPATARE, adiagnostic study
onthissubject byaninternational consultant
isprovided for.
Thesetting upofvarious transport
modes toconnect Djibouti tothe
land-locked countries oftheregion
andthusstrengthen theroleof
Djibouti asatransit port.Theagencies have indicated their willingness
tocooperate withtheGovernment in
identifying specific operational needs and
establishing priorities.
Further consultations withtheGovernment
willbeneeded todevelop specific projects
andprogrammes andexplore ways and
means offinancing.WT/LDC/HL/12/Add.3
Page23
Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion B(q):
Technical assistance needs inthearea
oftrade promotion andsupport
services
Training enterprise personnel inthe
techniques ofinternational trade and
stock management.ITC Anadvisory mission toidentify training
needs willbeorganized inearly 1998.
World Bank Aseminar willbeorganized intheUnited
Kingdom inlateOctober 1997 onport
management (two Djibouti participants).
Establishment ofatrade information
andadvice agency staffed by
qualified persons andhaving modern
resources forcollecting and
distributing information.ITC Following themission mentioned above, a
technical cooperation project tostrengthen
existing commercial training capacities will
beprepared.*
UNCTAD -Supply oftheTRAINS CD-ROM.
-Establishment ofaTrade Point linked to
theTrade Point Global Network.*
Establishment ofanadvisory centre
onquality control andproduct
packaging.
Establishment ofexport financing and
support machinery.ITC Seeabove. Thiscomponent could form part
oftheproject tobeprepared.
Strengthening financial andmaterial
resources andtheskills -ofthestaffs
ofthetrade representation offices.WT/LDC/HL/12/Add.3
Page24
Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion B(v):
Technical assistance needs with
respect tomarket access
Improving theawareness andtraining
needed forabetter utilization ofthe
existing preference systems.UNDP/
UNCTADTheRAB/96/001 Regional Programme will
supply assistance totheGovernment of
Djibouti toaddress partofitsneeds inthis
area.
UNCTAD Aproject isbeing launched fortraining in
theskills needed toresolve thedifficulties
connected withtheuseofGSP and
information onmarket-access conditions in
general.*
Establishing atrade information
circuit onforeign markets.ITC SeeB(q).
UNDP TheRAB/96/001 Regional Programme will
supply assistance totheGovernment of
Djibouti toaddress partofitsneeds inthis
area.WT/LDC/HL/12/Add.3
Page25
Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion C(b):
Summary oftechnical assistance
needs interms ofpriority
Precisely thesame asthereplies to
questions A(k), A(l), B(g), B(q)and
B(v).Precisely thesame astherelevant replies of
theorganizations.WT/LDC/HL/12/Add.3
Page26
Technical assistance needs identified
inthequestionnaireOrganization Reply
Inreply toquestion C(d):
Technological capacity andhuman
resources tomake useofthenew
information/communication
technology tools
Thetechnological capacity available
inthevarious institutions is
inadequate.World Bank PartofPATARE (technical assistance
programme foreconomic reform) will
involve thesenior officials oftheMinistry of
Trade. Inthecontext ofPATARE,
computers andInternet networks willbe
financed aswellasthenecessary training.
Assistance willbeneeded for
equipment withcomputers and
training intheir useforthenational
institutions involved inmatters of
trade policy andthepromotion of
foreign trade.World Bank Seeabove.
UNCTAD/
ITCSeeB(q).
WTO WTO willbeabletosupply acomputer and
alaser printer fortheGovernment 'sfocal
point oftheGovernment onquestions relating
totheMultilateral Trading System (1998).
WTO willalsobeabletoestablish the
necessary connections ofthefocal point to
Internet andsupply Djibouti withCD-ROMs.
Training intheuseofthecomputer and
electronic equipment supplied willalsobe
assured byWTO (1998).