WT/TPR/M/318  
12 October 2015  
(15-5300)  Page: 1/30  
Trade Policy Review Body 
14 and 16 July 2015   
 
  TRADE POLICY REVIEW 
MADAGASCAR  
MINUTES OF THE MEETING 
Chairperson: H.E. Mr. Atanas Atanassov Paparizov (Bulgaria) 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 2  
2  OPENING STATEMENT BY THE REPR ESENTATIVE OF MADAGASCAR ............................. 4  
3  STATEMENT BY THE DISCUSSANT ................................................................................ 7  
4  STATEMENTS BY MEMBERS ........................................................................................ 10  
5  REPLIES BY THE REPRESENTATIVE OF MADAGASCAR AND ADDITIONAL 
COMMENTS ..................................................................................................................... 24  
6  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 29  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Madagascar are reproduced in docu ment WT/TPR/M/318/Add.1 and will be available 
online at http://www.wto.org/englis h/tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/318 • Madagascar 
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The third Trade Policy Review of Madagascar was held on 14 and 16 July 2015. The 
Chairperson H.E. Mr Atanas Atanassov Paparizov (Bulgaria) welcomed the delegation of Madagascar headed by H.E. Mr Henri Rabesahala, Minister of Trade and Consumer Affairs; 
Mr Solofo Razafitrimo, Minister Counsellor, Ch argé d'affaires, a.i., Permanent Mission of the 
Republic of Madagascar to the United Nations Offi ce at Geneva; the rest of the colleagues from the 
Mission in Geneva; and the discussant, H.E.  Ambassador Luc-Joseph Okio (Congo). 
1.2.  The Chairperson recalled the purpose of the Tr ade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Madagascar was contained in document WT/TPR/G/318 and that of the WT O Secretariat in WT/TPR/S/318. 
1.3.  Questions by the following delegations had been  submitted in writing before the deadline of 
5.30 p.m. of 30 June and had been transmitted to the delegation of Madagascar: the United 
States; Singapore; Australia; Canada; the Republic of Korea; and the European Union. The following delegations submitted written questions after the deadline: Argentina; Thailand; Brazil; 
and China. These questions had also been transmitted to the delegation of Madagascar. 
1.4.  The Chairperson was pleased to note that Madagascar was overcoming six years of a 
socio-political crisis, which had meant poor economic performance, a sharp rise in poverty, and a 
decline in the importance of trade for the economy. Its socio-economic indicators had significantly 
declined because of the crisis, and Madagascar remained an LDC. The Government had adopted a stabilization programme supported by the IMF, and a National Development Plan for the period 2015-19. It was interesting to know the state-of-play of these reforms. 
1.5.  Less sensitive to socio-political crises, mining had emerged as a main sector of the economy, 
contributing over a third of merchandise exports. Indeed, the country had become a major exporter of nickel, cobalt and other minerals. In contrast, Madagascar's huge potential for a 
diversified agriculture was not yet significantly expl oited, even if the sector accounted for 27% of 
exports. Tourism was a major source of foreign exchange, but it had been negatively affected by the crisis. The EU was Madagascar's main trading partner, followed by China and members of the 
Gulf Cooperation Council.   
1.6.  Madagascar had made significant progress in reforming its trade regime since its last Review 
in 2008, especially by further facilitating trade. Indeed, it had established an Electronic Single 
Window and had moved towards full paperless customs clearance procedures. Since March 2015, 
Madagascar had refrained from using minimum import values for customs valuation purposes. 
Many of the numerous institutions required to a pprove import and export transactions could now 
transmit their respective authorizations electronically to Customs, and work was in progress to 
ensure that all the fees they charged actually refl ected the cost of the services provided. However, 
there was a need to upgrade the legislative and institutional framework on standards, technical 
regulations, and sanitary and phytosanitary measures, in order to ensure higher quality for local 
products and boost exports.  
1.7.  Madagascar participated in the activities of the WTO, and was also signatory to, inter alia , 
COMESA, SADC, the Indian Ocean Commission, and was implementing its EPA with the European Union. Madagascar had made remarkable effort s to update its WTO notifications; its WTO 
Reference Centre was operational, and consequently local participation in WTO online training 
courses had significantly increased. Madagascar had reduced its tariff rates, essentially on agricultural inputs; this had brought its simple average applied MFN rate from 13% in 2008 down 
to 12.2% in 2015. However, applied rates exceeded the corresponding bound levels on several 
lines. Madagascar's GATS commitments were limited; it was interesting to know Madagascar's position on the proposed LDC services waiver.  
1.8.  Obviously, trade reforms alone could not suffice  to improve the standards of living of the 
population if they were not supported by an appropriate socio-political environment and its 
corollary, good governance. Madagascar needed to improve its overall business environment and 
make it conducive to investment as well. In this respect, Members were interested in the measures 
envisaged by Madagascar to achieve political and constitutional stability, and create an 
environment supportive of its socio-economic development.    WT/TPR/M/318 • Madagascar 
 
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  1.9.  The Chairperson closed his introductory remarks by wishing Madagascar a very successful 
third Trade Policy Review. He looked forwar d to its active engagement in this TPR. 
1.10.  He also noted that a podcast would be made of the meeting which could be accessed on the 
Members' website. WT/TPR/M/318 • Madagascar 
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF MADAGASCAR (H.E. MR HENRI 
RABESAHALA) 
2.1.  The very first words of the delegation I am lead ing today are words of thanks to all attending 
Members and all those who have shown an active interest in Madagascar and have expressed it 
through the written questions we have received. Madagascar will do its utmost to be transparent, 
sincere and responsible both during this review and subsequently, out of respect for this distinguished Organization and for all Members that  support our partners in one way or another. 
Indeed, Madagascar is an Aid for Trade beneficiary and the official development assistance 
provided by a number of developed and developi ng WTO Members. Our country is a supplier of 
services and agricultural, textile and mining products and purchases manufactures, services, hydrocarbons and heavy machinery from most of the Members here today. 
2.2.  Our thanks also go to the WTO Secretariat for in view of the support that it provided us in 
preparing this review, we have no doubt that it intends to go beyond the establishment of rules 
governing trade and dispute settlement. We see tec hnical assistance and capacity building as the 
knock on effects of this review. 
2.3.  In the wake of the Fifth Global Review of Aid for Trade, and on the ev e of dramatic changes 
such as mega deals, the establishment of th e Tripartite Free Trade Area, the forthcoming 
Ministerial Conference in Kenya, and, at the national level, the organization of a round table 
meeting of Madagascar's trading partners, we are especially proud to be with you today in order to outline our road map, answer your questions and potentially address any ambiguous situations that might arise from them. 
2.4.  The progress made with the recommendations put to Madagascar at its previous review in 
2008 may come as a surprise to some Members, because Madagascar has suffered an unprecedented crisis in terms of length as well as consequences for the economy. It took more 
than five years of transition, without any actual support from its partners, before constitutional 
order was restored in 2014. Hence, heavy public investment, in depth transformations and international commitments were simply impossible in light of the sanctions against Madagascar's 
leaders during that period. 
2.5.  The 2009 crisis had devastating effects on Madagascar's relations with its trading partners 
and its integration in regional and international markets. The country suffered, inter alia, the consequences of cancellation of Madagascar's participation in several summits and meetings, the 
suspension of preferences under the AGOA, non-di sbursement of the 10th European Development 
Fund, and postponement of the signing of a number of trade agreements. 
2.6.  The difficulties arising from the country's situation, compounded by an unfavourable 
international environment, have had serious consequences for the overall trade environment. 
These include the low rate of industrial growth , the marked deterioration of infrastructure 
detracting from the country's competitiveness, inad equate access to energy, and the effects of the 
combined introduction of the COMESA common external  tariff or the Tripartite FTA along with tariff 
reductions under the EPAs, which, as regimes, were not always clearly defined and communicated 
to the private sector. Moreover, services imports have not helped the country to innovate and move back up in the value chain as anticipated, business law reforms are not keeping pace with 
the rapidly rising needs and expectations of operat ors, and lastly, trade facilitation has led to a 
proliferation of imports without any genuine substitution by domestic production, or any significant expansion of exports. 
2.7.  Added to these structural problems are difficul ties ensuing from inadequate capacities among 
public and semi-public trade support bodies, cont inuing asymmetry of information penalizing the 
private sector, a relatively large informal sector, absence of innovation among SMEs, difficulties in 
obtaining access to finance, petty squabbling between various government services, lack of 
coordination in the provision of trade related technical and financial assistance, and failure to make proper use of trade preferences and flexibilities se cured at the bilateral, regional and multilateral 
levels. 
2.8.  Guided by President Hery Rajaonarimampianina, the two successive Governments 
nonetheless adopted ambitious positions and took bold decisions on rules and policies. Reforms WT/TPR/M/318 • Madagascar 
 
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  were initiated to strengthen the rule of law, improve governance in general and public finance 
management in particular, increase tax and customs revenue, promote market and product diversification, revise the texts regulating a num ber of sectors, including e commerce, consumer 
protection and guarantees and public private pa rtnership, and enhance the business environment. 
A whole series of other reforms are under way. 
2.9.  More broadly, the National Development Plan (PND) focuses on achieving sustainable and 
inclusive economic revival, promoting social de velopment, bolstering security, protecting the 
environment, and using diplomatic mechanisms as the lynchpin of trade, tourism and investment 
policy. Rapid and inclusive results based method s have been adopted under the Implementation 
Plan (PMO) carried out by the Government. 
2.10.  The crisis did not prevent Madagascar from fulfilling its WTO obligations, particularly in 
terms of notifications, contributions, and involvement in the WTO's work. Among other things, it 
communicated to the WTO its matrix of priority needs with a view to building up national capacity in order to advance acceptance and implementation of the WTO Agreement on Trade Related 
Aspects of Intellectual Property Rights (TRI PS Agreement), embarking on the process of 
establishing a national trade facilitation committee and categorizing the measures with support from the WTO and the World Bank, identifying non- tariff barriers to trade and taking concrete 
steps to remove them. 
2.11.  The customs administration has initiated a number of reforms over the past six years in 
partnership with the SGS and Gasynet, using tools such as ASYCUDA++, revising the Customs Code, and reviewing tariffs and procedures that presented inconsistencies in the past, whilst 
introducing far reaching changes in strategic human resource planning. 
2.12.  The adoption in 2013 of the Sectoral Programme for Agriculture, Livestock and Fisheries 
under the New Partnership for Africa's Development (NEPAD) is a major step forward in the 
development of productive capacity to vigorously boost exports in these sectors, the aim being to 
achieve Madagascar's ambition of becoming the "breadbasket" of the Indian Ocean region. Non-food agricultural products such as ethanol have also benefited from the establishment of an 
enabling legal framework and the introduction of incentives, in view of their potential for job 
creation, preserving biodiversity and generating revenue for the public purse. Lastly, the promotion of investment in the above sectors remains a priority in order to increase agricultural and industrial production and develop related trade in services. 
2.13.  At the political level and in the aftermath of five years of deep crisis, Madagascar is learning 
to preserve peace and consolidate stability, even though some information in circulation may at times give cause for concern to its partners and potential investors. The President's Office, the 
National Assembly and the Government are operating normally despite the political and labour 
unrest typical of any country in a post crisis situation. The State is preparing for negotiations with its technical and financial partners, particularly with a view to a meeting with the IMF in 
September and a donors' conference scheduled to take place in Paris this coming November. 
2.14.  Improvements have been made to infrastructure and the investment environment. New 
target markets have been identified in the tourism sector, and the private sector has invested in quality accommodation facilities. Progressive migration towards DTTV, the launching of 4G 
connection and optimized use of new development oriented technologies have been put in place. 
The restructuring of the national water and electricity company JIRAMA is moving ahead with support from Madagascar's partners, and hydro agricultural production sites are awaiting 
expressions of interest on the part of investors. International technical cooperation is reaching 
cruising speed in areas which include enhancing the regulatory framework for public private partnerships (PPP), public private dialogue, ra ising Madagascar's Doing Business score, regulating 
e commerce, improving trade in environmental goods, and promoting trade in services. 
2.15.  In order to find sustainable solutions to its various constraints, Madagascar has opted for 
more effective integration of trade in national development policy, using existing and future structures at the regional and international levels in support of targeted actions to enhance 
coordination between the actors involved, better domestic trade performance and visible 
competitiveness of Malagasy SMEs. Convinced as it is that trade facilitation can also benefit exports, Madagascar intends to make substantial advances in accepting the Protocol, notifying the WT/TPR/M/318 • Madagascar 
 
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  categories, and developing areas of cooperation with other customs administrations throughout 
the world. Since it believes that non-tariff barriers have a more negative impact than the tariffs themselves, Madagascar attaches the utmost importance to the work of the SPS and TBT Committees and to domestic implementation of th e resolutions, tools and provisions under both 
Agreements. 
2.16.  Trade extends well beyond the issue of rules, and it encompasses investment, the business 
climate, the ability of the country to cease being a supplier of raw materials alone or a large 
assembly plant and to become a major actor in global value chains, an innovative actor that places 
science and technology at the service of higher  value added and the promotion of its services 
exports. Madagascar has thus decided to enlist the support of other regional and multilateral 
agencies and institutions in its endeavours to achieve greater wellbeing for its population. Its 
UNCTAD Investment Policy Review will take place this year. An agreement has been signed with 
the ITC with a view to implementing a business competitiveness building programme, and our traditional partners are continuing to support us in one or more trade related sectors. We are 
currently seeking ways to expand the list to other countries that are already lending us trade 
related technical assistance, so as to broaden this partnership. We thus encourage countries that are actively involved in other areas of cooperation to appear more prominently in Madagascar's Aid 
for Trade matrix. 
2.17.  We extend our warmest thanks to all our past, current and future partners. Madagascar 
does not consider this review as an end in itself. Rather, it marks the beginning of a process of alignment of the actions of bilateral and multilateral partners, with the organization of a round 
table meeting including all of Madagascar's resident or non-resident partners, in order to follow up 
on the review's recommendations by pooling reso urces, with Madagascar taking ownership of the 
process, and harmonizing public policies at sectoral level. 
2.18.  Madagascar expects a positive outcome to the ongoing Doha Development Agenda 
negotiations. We are hoping for a wealth of results from the Tenth Ministerial Conference and a stronger development role for the WTO despite a few past disappointments. We are confident 
regarding the future of trade in the post 2015 system. 
2.19.  Lastly, I renew my thanks to those who helped  prepare this review, and especially the WTO 
team of experts, the colleagues from the various departments who actively contributed to the reports and the replies, the team from Madagascar's Permanent Mission in Geneva, all the 
translators, and our friend the Ambassador of Congo for his strong engagement in this mechanism 
in favour of Madagascar. Thank you. WT/TPR/M/318 • Madagascar 
 
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  3  STATEMENT BY THE DISCUSSANT 
3.1.  I feel honoured to have been chosen to act as the discussant for this third review of 
Madagascar's trade policy. 
3.2.  Before I begin, I should like to welcome the head of the Malagasy delegation, His Excellency 
Mr Henri Rabesahala, Minister of Trade and Consumer Affairs, the members of his delegation, and 
Mr Solofo Andrianjatovo Razafitrimo, Minister Co unsellor and Chargé d'Affaires at the Permanent 
Mission of Madagascar in Geneva. 
3.3.  This third review of Madagascar's trade policy is taking place under rather special 
circumstances, marked by the country's emergence from a long socio-political crisis. 
3.4.  The Government of Madagascar therefore has the privilege of undergoing a comprehensive 
trade policy review, so that it can learn from its practices and calmly consider the 
necessary reforms. 
3.5.  My statement and remarks will address the macroeconomic environment, trade policy and 
some sectoral policies. 
Macroeconomic environment 
3.6.  The economic upturn which began in 2014 has been boosted by the strong performance 
of rice farming and the extraction and subsequent export of heavy metals such as nickel, 
cobalt and titanium. 
3.7.  Services exports have also grown, in view of the importance of tourism. 
3.8.  Agri-food exports have become more divers ified, reflecting the immense wealth of 
Madagascar's land and know-how. 
3.9.  Government revenue unfortunately fell sharply over the same period, while operating 
expenses remained relatively high. As a result, the fiscal deficit amounted to 3.5% of GDP in May 2015. This led the Central Bank to help finance the deficit, with a resulting 
crowding-out effect. 
3.10.  The national currency, the Ariary Malagasy, did not fluctuate much, with an overall trend 
towards appreciation of the real effective exchange rate and, therefore, towards a less competitive 
domestic economy, which led to a decline in impo rts and exports of goods and services from 80% 
to less than 70% of GDP between 2008 and 2014, despite growth in mining exports. 
3.11.  State subsidies in the form of a parallel prefer ential exchange rate for imports of petroleum 
products and several successful rice-growing seas ons have gradually lowered inflation from 10% 
in 2007 to around 6% recently. 
Trade policy 3.12.  Madagascar's trade policy has been marked by a number of reforms, primarily in the area of 
trade facilitation, which have contributed to domestic economic recovery. The country has 
experienced far-reaching changes in the structure of its merchandise trade since the previous review of its trade policy in 2008. 
3.13.  Madagascar grants MFN treatment to all of its trading partners. It has never been involved 
as either complainant or defendant in a WTO dispute settlement process. The country has made remarkable efforts to update its WTO notifications; its WTO Reference Centre is operational, and local participation in WTO online training courses has increased significantly as a result. 
3.14.  Madagascar is party to trade agreements within the framework of the Common Market for 
Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC), the most recent of these being the interim Economic Partnership Agreement (EPA) 
between the EU and the Eastern and Southern Africa States, which entered into force in 2012. WT/TPR/M/318 • Madagascar 
 
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  Madagascar grants duty-free entry to its SADC an d COMESA partners, on a non-reciprocal basis, 
and tariff reduction under the EPA began in January 2014. 
3.15.  Madagascar is neither a member nor an observer of the Plurilateral Agreement on 
Government Procurement concluded under WTO auspices. It has nevertheless made significant 
efforts to be transparent by publishing its automated government procurement management 
system on the Internet. 
3.16.  As regards Customs, Madagascar has embarked on a process of tariff simplification and 
reduction. Significant progress has been made wi th the electronic single window, and the move 
towards paperless customs clearance procedures is very close to completion. However, efforts could be made to ensure that the fees assessed actually reflect the services provided. 
3.17.  The Secretariat report notes that there have been a number of tariff reductions, essentially 
on agricultural inputs, bringing simple average applied MFN rates down from 13% in 2008 
to 12.2% in 2015. 
3.18.  The report also indicates that less than one thir d of tariff lines have been bound and that for 
some lines the applied rates exceed the bound levels. Madagascar might consider adopting 
appropriate solutions to remedy this situation. 
Sectoral policies 
3.19.  For several years now, Madagascar has been promoting trade liberalization and gradual 
State withdrawal from a number of sectors. Howeve r, some sectors such as agriculture, tourism 
and transport have experienced difficulties in recent years. 
Agriculture and related activities 
3.20.  Madagascar's agricultural sector offers a wide range of export products such as cloves, 
vanilla, lychees, honey, groundnuts, cocoa paste and unroasted coffee. However, the sector experienced major difficulties when the rice and maize harvests were destroyed by swarms of 
locusts, a cyclone, flooding and drought, which led to a steep decline in production and an increase 
in imports of some products. 
3.21.  The Secretariat report notes that the country has vast swathes of as yet unexploited arable 
land, and that the land problem is one of the key obstacles to agricultural investment. 
3.22.  Madagascar's reform of land legislation, initiated in 2005, has already led to significant 
progress in making property ownership more secu re. Nonetheless, it prevents or restricts access 
by foreigners to real-estate ownership. 
3.23.  In this connection, it would be desirable to broaden this reform in order to re-examine 
conditions of access to real estate ownership by foreigners, and to adapt the existing regulations 
and publish them on the Internet, which is not currently the case. 
3.24.  Madagascar has substantial fisheries and aquacu lture potential, and its shrimp and crab 
exports are significant. However, deep-sea fishing in Madagascar's waters takes place under commercial conditions which are favourable to foreign companies, in that there are no maximum 
catch limits. Hence the need for reforms in order to achieve sustainable management of resources 
while maximizing income from fisheries. 
3.25.  Fauna and flora management has been affected by serious abuses, and the authorities have 
not yet succeeded in halting exports of rare timb ers (palisander and rosewood), or of crocodiles 
and other wild animals, despite commitments made  under the Convention on International Trade 
in Endangered Species of Wild Flora and Fauna (CITES). WT/TPR/M/318 • Madagascar 
 
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  Mining sector 
3.26.  Madagascar has diversified into mining. The mining sector owes its strong performance to 
major foreign direct investment in mining projects to extract nickel, cobalt, titanium and other heavy metals, which began in 2013. 
3.27.  Nevertheless, the Secretariat report notes that this sector of the Malagasy economy 
contributes a mere 4% to GDP because of low electricity production for mineral processing. 
Electricity sector 
3.28.  Although the sector is, de jure , open to competition, the fact that electricity selling prices 
are fixed by the State at low levels (below production cost) does not encourage the entry of new operators. Some economic operators are obliged to lease costly and polluting generators in order to produce their own power. 
3.29.  Restructuring of the electricity operator JIRAMA, which holds a monopoly on the 
transmission and distribution of electricity, an d improving the country's electricity supply were 
singled out as priorities at the time of the previo us review in 2008. What is the current situation 
concerning that reform? 
Petroleum sector 3.30.  Madagascar imports all its oil requirements. The sector is still subject to State control 
through the Malagasy Hydrocarbons Office (OMH), which issues permits for the import, processing, 
transport, storage and sale of hydrocarbons and ensures supply of the national territory. 
3.31.  The drop in global prices in 2014 should prompt the Government to reinstate the "true price 
level" of these products on the domestic market and undertake a reform of the sector. 
Manufacturing sector 
3.32.  Madagascar's manufacturing sector offers exceptional opportunities, especially in the 
agri-food and handicrafts areas, because of the country's abundant flora and fauna, its rich waters 
and the wealth of Malagasy know-how. It is highly likely that growth in these areas will largely 
come from small-scale SMEs, as long as the State does away with the excessive, complicated and less than transparent taxation which is currently preventing them from moving out of the 
informal economy. 
3.33.  Industries, especially those which are export-oriented, are adversely impacted by the high 
taxes on businesses and cumbersome labour legislation, as well as by the difficulty of obtaining foreign currency to purchase inputs and the high ra tes of duty on the latter, long delays in the 
payment of VAT refunds, the high cost of impo rt controls, burdensome export documentation 
requirements and, lastly, the requirement that a portion of earnings be repatriated and converted 
into the national currency. 
Conclusion 
3.34.  The Malagasy authorities are aware that trade policy reform will not be effective unless it is 
underpinned by improvements in the country's political situation and governance. 
3.35.  This will involve, among other things, strengthening political and constitutional stability, 
enhancing the legal protection of persons and st rengthening their rights. Madagascar attaches 
particular importance to the development of basic infrastructure, which will play a key role in facilitating access to the different parts of the country and attracting more foreign direct 
investment, and will thus help Madagascar achieve its vast and diverse economic potential. 
3.36.  Madagascar, which has seen most of its social and economic indicators plummet over the 
past seven years, will have renewed cause for op timism once the scheduled reforms have been 
harmoniously implemented in a less heated political climate, with technical support from its 
bilateral and multilateral trading partners. WT/TPR/M/318 • Madagascar 
 
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  4  STATEMENTS BY MEMBERS 
UNITED  STATES 
4.1.  We appreciate the Government of Madagascar and the WTO Secretariat's reports. Each 
describes the various challenges that Madagascar must overcome and the questions it must 
address in order to achieve more effective participation in the global trading system, and to use 
trade as an instrument for realizing greater economic growth and development. I would also note our appreciation for the written replies to our questions submitted in advance of this review and 
we will give careful consideration to the responses. 
4.2.  Since the last trade policy review, we recognize the challenges that Madagascar has 
continued to face with respect to the negative economic repercussions of the socio-political crisis that lasted from 2009 to 2013. Despite the successful  resolution of this crisis, culminating in the 
return to democracy and political pluralism in 2014, this five-year period of instability has left an 
enduring mark on Madagascar's economy, includ ing a slowdown in GDP growth — indeed, the 
Government's report notes that between 2009 and 2013, growth averaged only 0.9% — low levels 
of investment in transport infrastructure, includ ing road and rail; reduced government services; 
and stubbornly high unemployment, with over 90% of  Madagascar's population living in poverty.  
4.3.  We agree with the Secretariat's report that restoring infrastructure and combating severe 
poverty are two of the most pressing issues Madagascar faces in 2015, and we commend the new 
Government for preparing and implementing a National Development Plan covering the period of 2015 to 2019 to address these issues. 
4.4.  Madagascar's political crisis of 2009 had a profound, negative, and lasting impact on 
U.S.-Madagascar bilateral trade. Prior to the crisis, U.S. imports from Madagascar stood at 
US$324 million in 2008, 85% of which entered under African Growth and Opportunity Act (AGOA) 
trade preferences — almost exclusively apparel prod ucts. The crisis, however, precipitated the loss 
of AGOA and with it, important duty-free U.S. ma rket access for Madagascar's textiles and apparel 
sector. The loss of AGOA led to the closure of at least 40 apparel and textile factories, the loss of 
an estimated 30,000-100,000 jobs, and the loss of millions of dollars in potential exports and 
foreign investment. As a result, the share of Malagasy exports to the United States plummeted 
from almost 18% in 2007 to 8.5% in 2014, as noted in the Secretariat's report. 
4.5.  We commend Madagascar's return to democracy and political pluralism as witnessed by the 
establishment of a democratically elected Government in January 2014, and are pleased that 
Madagascar regained its AGOA eligibility in June 2014 as a result. With the approval of its AGOA 
Apparel Visa System in December 2014, Madaga scar has already started exporting articles of 
apparel to the United States. We are committed to working with Madagascar not only to help it 
make greater use of the benefits of AGOA to increase bilateral trade, but also to help it improve its 
capacity to boost regional trade and make th e most of the opportunities afforded by its 
membership in the WTO. 
4.6.  However, as the Secretariat's report points out, Madagascar's participation in the multilateral 
trading system remains limited. We encourag e Madagascar to continue to work towards 
establishing a transparent trade policy process that will allow for more active engagement in the multilateral trading system and more follow-up on multilateral issues. We want to recognize 
Madagascar's progress to date on implementing  the WTO agreements, including the Customs 
Valuation, SPS, and TBT agreements. Madagascar's efforts to improve notification requirements 
and to update WTO notifications are particularly noteworthy, and we encourage Madagascar to 
continue these efforts, especially with respect to TBT notifications. 
4.7.  We recognize and commend Madagascar's efforts to improve its customs services in order to 
streamline the number of procedures required and reduce the time to trade across borders, as 
noted in the Secretariat's Report. We note that progress has been made on implementing the 
single electronic window and the move towards paperless customs clearance procedures. Yet, as the Secretariat's report points out, more work can be done to streamline documentation and physical control, particularly for exports. In addition, we agree with the Secretariat's report that 
fees associated with imports or export clearances should reflect the services provided, and we WT/TPR/M/318 • Madagascar 
 
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  therefore encourage Madagascar to ensure that fees  be limited in amount to the approximate cost 
of services rendered. 
4.8.  We note that the establishment of a national trade facilitation committee in Madagascar could 
help improve coordination among various border agencies. We agree with the Secretariat's report 
that a lack of coordination contributes to bord er delays and overall border costs that reduce 
Madagascar's competitiveness. The WTO Trade Facilitation Agreement (TFA) would set the stage for more efficient customs and border procedures and coordination in Madagascar, and we 
encourage Madagascar to ratify and implement th e agreement as soon as possible. The TFA is 
widely recognized as having broader developmen t benefits in addition to promoting regional 
integration, private-sector investment, and export promotion. The United States stands ready to work with Madagascar to ensure its timely implementation of the agreement. 
4.9.  To conclude, the United States recognizes the unique challenges Madagascar faces as it 
moves forward toward national reconciliation. We agree that efforts to reform trade policy to meet Madagascar's development objectives must be underpinned by improvements to its socio-political 
environment. The United States stands ready to work with Madagascar, and appreciates the 
opportunity to participate in this review of Ma dagascar's trade policy. We look forward to our 
dialogue with the Government, both within the WTO and on a bilateral basis. 
AUSTRALIA 
4.10.  Australia welcomes the opportunity to participate in the third Trade Policy Review of 
Madagascar. This review is taking place at an important juncture in the course of Madagascar's economic reforms, coming so soon after the recent political crisis. Australia commends these 
reforms and the Malagasy Government for its commi tment to inclusive, sustainable development. 
Australia believes from its own experience that the road to a stronger economy and increased prosperity lies in structural economic reforms and the ability to attract foreign investment.  
4.11.  Madagascar and Australia enjoy a modest but po sitive trading relationship. Two-way trade 
of goods and services was valued at $21 million in 2014. Most notably, Australia's mining interests in Madagascar continue to grow in strength, led by major investments in the extractives sector 
since the mid-2000s.  
4.12.  As current Chair of the Indian Ocean Rim Association (IORA), Australia has strengthened its 
collaboration with Madagascar. In this context, our Foreign Minister, the Honourable Julie Bishop MP, visited Madagascar in September 2014. She reaffirmed that, as IORA members, Australia and 
Madagascar are partners in promoting trade and investment facilitation as an area of priority in the 
Indian Ocean region.  
4.13.  At the WTO, Australia has this year also notified preferential treatment for services from 
LDCs. Under this regime, LDCs will benefit from preferential access in various sectors comprising 
tourism, transport (including air and maritime) and business services. Australia invites Madagascar to take advantage of the opportunities this creates.  
4.14.  To achieve Madagascar's potential for economic growth, it will be essential to upgrade basic 
infrastructure and services such as the national electricity provider and transport, including the national airline.  
4.15.  Reducing barriers to trade and investment is an important aspect of economic reform and 
will improve Madagascar's long-term competiveness and growth. Madagascar could reconsider 
affirmative action programs that apply to foreign equity limits and restrictions on mergers with local firms. Australia also encourages Madagascar to further liberalize its goods and services 
market, including for government procurement.   
4.16.  Australia is closely following Madagascar's mining code reform process. Australia welcomes 
the consultations initiated with stakeholders and encourages finalization of this process and early 
implementation of the revised mining code, which is essential for investor certainty. Australia 
further encourages Madagascar to continue to collaborate with the Extractive Industries Transparency Initiative (EITI), which is an internationally recognised benchmark for the sector. WT/TPR/M/318 • Madagascar 
 
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  Such collaboration would reinforce Madagascar's good governance and accountability 
commitments for international donors and investors.  
4.17.  For this review, Australia submitted a number of written questions relating to Madagascar's 
trade and investment regime. We look forward to Madagascar's response to these questions. 
CANADA 
4.18.  The Secretariat Report very clearly describes the challenges that Madagascar has been 
facing since the previous review of its trad e policy in 2008, including the 2009 crisis and its 
negative repercussions on overall growth. Canada welcomes Madagascar's endeavours over the 
past two years to restore democracy after many years of political instability. It encourages all stakeholders to continue taking steps to promote political stability and good governance. Canadian businesses have long recognized Madagascar's potential and are maintaining their investments 
despite the prevailing uncertainty, thus providing the country with an economic basis on which to 
lean. Madagascar's potential is highlighted in the IMF's April 2015 World Economic Outlook, in which the GDP growth rate of 3% in 2014 is pr ojected to rise to 5% in 2015 and 2016. The 
designation of Madagascar as a priority market und er Canada's Global Markets Action Plan (GMAP) 
bears witness to our confidence in the country. 
4.19.  I wish to emphasize Madagascar's efforts to remain open to trade liberalization, as shown by 
its participation in the Common Market for Eastern and Southern Africa (COMESA) and the 
measures taken to improve its customs services and facilitate trade. The Secretariat report's recognition of Madagascar's targeted endeavours to implement trade facilitation measures is highly relevant since the results are positive: according to the World Bank's Doing Business 2015  report, 
Madagascar has improved its ranking by one place on the "trading across borders" indicator and 
the key sub-indicators all exceed the average for Sub-Saharan Africa. I therefore encourage Madagascar to ratify the WTO Trade Facilitation Agreement and to inform WTO Members of its 
technical assistance needs in this regard without delay, so that the benefits of the reforms aimed 
at facilitating trade under the TFA can be delivered more effectively. 
4.20.  Canada recognizes the persistent difficulties facing the Malagasy Government as it seeks to 
rebuild its infrastructure and institutions, which deteriorated over the years that followed the coup 
d'état in 2009. As we see it, the best way for the Government to show the importance that it 
attaches to rebuilding the country's society and ec onomy is to ensure transparency and to comply 
with international rules. It may be very tempting to  deal with the most pressing issues in order to 
address short-term challenges, but the only way for a country to earn and maintain the trust of its 
international partners is by fulfilling its international obligations. Investors will not give their trust unless they are sure that rules are respected and their investments protected. With that in mind, 
Canada is looking forward to signing a comprehensive and high-quality foreign investment 
promotion and protection agreement (FIPA) with Madagascar. 
4.21.  Canada has world-class expertise in mining exploration and extraction of minerals such as 
those on which Madagascar could rely in order to ensure more specific and efficient management 
of its geological resources. As emphasized in th e Secretariat report, even though the increase in 
production and exports in the mining sector since the previous review has given an essential boost to the Malagasy economy, the sector could cont ribute a great deal more in economic terms, 
considering that it still only accounts for 4% of  the economy. Canadian survey, exploration and 
mining companies can help Madagascar appreciate the opportunities offered by its geological resources. Canada accordingly wishes to encourag e Madagascar to secure a stable and predictable 
environment conducive to business, and in particular to refund VAT credits as provided for under 
Madagascar's own legislation. 
4.22.  Although Madagascar has experienced a number of  difficulties, it is a vast country with 
numerous resources and huge potential. Canada considers that the Malagasy Government is on 
the right path and that good governance and politic al stability will lead to sound economic growth. 
W e  l o o k  f o r w a r d  t o  s e e i n g  t h e  M a l a g a s y  e c o n o m y  f l o u r i s h  a n d  h o p e  t o  b e  a b l e  t o  c o n t i n u e  strengthening our relations in the future. WT/TPR/M/318 • Madagascar 
 
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  REPUBLIC  OF KOREA 
4.23.  I am pleased to note that even though th e bilateral trade volume between Korea and 
Madagascar shrank over the past few years, it has greatly increased in 2013, reaching US$196 million, the highest to date. With respect to  FDI, Korea was the third largest investor in 
Madagascar in 2011 with US$2.9 billion. Korea indeed hopes that its economic partnership with 
Madagascar will continue to grow and develop in the future. 
4.24.  Turning to Madagascar's economic trends, I wish to note that the Malagasy economy is 
showing signs of recovery from the crisis, driven by the strong performance of rice farming, new 
exports of mining products and the recovery of foreign aid flows. Though Madagascar's growth 
rate dropped from 6% in 2007-2008 to an average of  zero during the review period, based on this 
economic upturn, the IMF forecast GDP growth of 3% in 2014, rising to 5% in 2015.  
4.25.  In particular, I would like to acknowledge Madaga scar for sustaining the high quality of its 
health and education system as well as its high-skilled labour force which continued to grow during the review period. Accordingly, as the Secretariat report pointed out, its human development level 
is comparable to those of higher-income African countries. 
4.26.  Let me now turn to our particular concern with respect to the non-reimbursement of VAT 
credits. According to the current Malagasy regu lations, exports benefit from the zero-rate VAT 
regime, which in principle gives entitlement to the refund of duties and taxes levied on the inputs 
used to produce them. However, some large comp anies complain of never recovering their VAT 
credits.  
4.27.  Particularly, the Korea Resource Corporation has repeatedly expressed concerns about the 
significant accumulation of arrears since 2012 and it s possible future increases. Along these lines, 
we would like to encourage the Malagasy Government to solve this issue in a way that is consistent with its relevant regulations as soon as possible. We emphasize that this will contribute 
to attracting foreign investment into Madagascar in the future as well as ensure its businesses' 
economic feasibility and predictability. 
4.28.  We have submitted advance written questions to Madagascar. The questions posed by our 
delegation touch upon the Malagasy Government's endeavours to improve the business 
environment, the establishment of the National Au thority for Trade Remedies and possible plans to 
open up consecutive cabotage service. We thank the Malagasy delegation for providing answers to those questions this morning. We will review carefully and revert back if necessary. 
4.29.  It is also our hope that Madagascar will continue to actively participate in helping not only 
strengthen the WTO multilateral trading system as a whole, but also advance the DDA negotiations.  
EUROPEAN
 UNION 
4.30.  As the Secretariat report points out, Madagascar's economic growth in the period 
2009-2014 (averaging less than 1% per year) remained well below potential, as the country 
emerged from its fourth socio-political crisis in 20 years. Despite the serious consequences of the 
crisis, the Malagasy Government has undertaken major trade reforms. The European Union welcomes these efforts and encourages Madagascar to develop both the vast resource potential of 
its land and its know-how, so as to contribute more  to the economic recovery that began last year. 
4.31.  European development cooperation has been active in Madagascar since 1959. 
The partnership between Madagascar and the E U  b e c a m e  p a r t  o f  t h e  R e v i s e d  C o t o n o u  
ACP-EU Partnership Agreement on 23 June 2000. 
4.32.  Relations between the EU and Madagascar have become stronger since the conclusion, 
in 2009, of an economic partnership agreement (signed by Madagascar, Mauritius, Seychelles and Zimbabwe), the provisional implementation of which began on 14 May 2012. This is a market 
access agreement containing chapters on rules of origin, development cooperation, fishery 
products, trade defence and a dispute settle ment mechanism. It aims to enhance the 
well-established relationship between the EU and the countries of Eastern and Southern Africa, WT/TPR/M/318 • Madagascar 
 
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  broadening the partnership to increase trade, investment and cooperation. It is expected to foster 
sustainable development and better use of the ec onomic potential of these countries, to support 
their efforts to implement reforms and adopt rule s for better integration in world trade, and to 
contribute to more effective economic and trade integration of the Eastern and Southern Africa 
region. 
4.33.  Madagascar is an important partner in the region, especially in the context of the Indian 
Ocean Commission (IOC). However, its integration within the region is hampered by the weakness 
of its infrastructure. Its trade remains modest, and it still has a long way to go in terms of 
economic integration. 
4.34.  If Madagascar is to succeed in its developm ent and poverty reduction drive by reviving 
sustainable and inclusive growth, it is important for the country to press on with reforms, primarily 
those aimed at enhancing governance and infrastructure as levers for public and private 
investment. 
4.35.  Under its development cooperation policy and the 11th European Development Fund in 
particular, the EU has allocated €518 million for th e period 2014-2020, with support focusing on 
governance, economic development-targeted  infrastructure and rural development. 
4.36.  As regards trade reforms, the European Unio n welcomes the remarkable efforts recently 
made by Madagascar, especially in updating its WTO notifications, including its Integrated 
Database (IDB) notifications, and strongly urges it to continue along that path by taking the necessary steps in order to notify the WTO of the categorization of each provision of the Trade Facilitation Agreement. 
4.37.  Lastly, the EU hopes that political and institutional stability will swiftly return to Madagascar 
so that the country can rapidly harness its abundant resources and pursue its objectives of building a stable, inclusive, sustainable and diversified economy open to the world. 
ARGENTINA 
4.38.  Argentina welcomes Madagascar's economic progress, in particular since 2014. This upturn 
was driven by sound performance in the rice-growing sector and by the extraction and export of 
ores such as nickel, cobalt and titanium. 
4.39.  At the bilateral level, we would like to emphasize that trade between Argentina and 
Madagascar has increased in recent years. This means that there is great potential for development and that the complementarities between our countries can be harnessed in a very 
positive manner. 
4.40.  The highly important issue of development of th e African countries is a matter of particular 
interest that prompted Argentina to participate in this review of Madagascar's trade policy, as 
indeed it was in preparing our written questions. 
4.41.  In particular, Argentina would like to take this opportunity to learn more about the main 
challenges facing Madagascar in developing its value-added exports of agricultural products, its 
difficulties in gaining access to markets for such products and its interest and experience in 
protecting its fisheries stocks and resources from over-fishing and depletion. 
4.42.  Lastly, while reiterating our appreciation of this renewed opportunity to exchange points of 
view and comments on the trade policies and prac tices of Madagascar, we would like to draw 
attention once again to the importance of this ex ercise in transparency from every point of view, 
and to wish the Malagasy authorities a successful conclusion to this review. 
THAILAND 
4.43.  Thailand has a cordial trade relation with Madagascar, as our bilateral trade value has risen 
at an average rate 12.52% per year during the past five years. In 2014, the bilateral trade between Thailand and Madagascar valued over US$60 million, with export valued at US$58 million 
and import value at US$1.96 million.  WT/TPR/M/318 • Madagascar 
 
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  4.44.  Although the bilateral trade between Thailand and Madagascar is still relatively small, there 
is great potential for the expansion of trade in goods, services and investment between the two 
countries. We believe that for exports, such potential exist in agricultural and industrial products such as rice, sugar, plastics, chemical products, and vehicles. While fish and precious stones are 
considered high-potential imports.   
4.45.  We are pleased to note that Madagascar's GDP growth has increased to 3% in 2014 and has 
been projected by the IMF to rise to 5% for 2015,  showing signs of recovery since its GDP growth 
collapsed from above 6% in 2007-2008 to an  average of zero in 2009-2013 due to its 
socio-political crisis.  
4.46.  Thailand would like to commend Madagascar for the significant progress made in its trade 
reforms. We note that there have been a number of tariff reductions, especially on agricultural 
inputs, lowering Madagascar's average applied MFN rates down from 13% in 2008 to 12.2% in 
2015. However, we do observe that a few of the applied rates exceed the bound level, such as those of textile articles, foot wears, and tools and cutlery of base metal, we encourage Madagascar 
to bring it back to the commitment level. We are pleased with the vast improvement in trade 
facilitation, with the establishment of a national committee on Trade Facilitation, set up an electronic Single Window, and the near completion of the shift towards paperless customs 
clearance procedures.  
4.47.  In this review, Thailand submitted few questions to Madagascar, covering, among others, 
the WTO consistency of prohibitions on the production and importation of plastic bags, and Madagascar's plans and policy regarding the liberalization of market access in the tourism sector. 
We look forward to receiving Madagascar's response in due course and will study them in detail 
with great interest.  
4.48.  In conclusion, Thailand would like to express our appreciation to the delegation of 
Madagascar for today's presentation. We are thankful for the cooperation with Madagascar in both 
Geneva-based and Capital-based levels. 
BRAZIL 
4.49.  It is a matter of great satisfaction for Brazil to take part in the third TPR of Madagascar. The 
participation of Madagascar in this important exercise shows us its strong commitment to the multilateral trading system and to this Organization. We do recognize Madagascar's efforts to put together all the required information for this peer review and present us its trade policy covering a 
period of distressing turmoil in the country. We recognize the impact that institutional changes 
have on the capacity of economies to growth. But we also recognize the important role that trade has got to foster socio-economic development and to alleviate poverty, social inequality and 
vulnerability. 
4.50.  Between 2008 and 2014, the period covered by this review, Madagascar's economy grew 
near to 1% per year, reflecting this period of po litical instability and uncertainty. Nonetheless, the 
IMF forecasts GDP growth of 5% in 2015, which re veals a great capacity of recovery and potential 
to further growth. 
4.51.  Bilateral commerce between our two countries increased considerably from US$9.4 million 
in 2007, the last year covered by Madagascar's previous TPR, to US$24.6 million in 2014, reaching 
a peak of US$35.2 million in 2012. Despite this incr ease in value, trade flows remain very modest 
and benefit from little diversity: Brazil's main export to Madagascar continues to be sugar, followed by soybean meal and rubber, which togeth er amount to 92% of the value of our exports 
in 2014. Madagascar's main exports to Brazil are cl othing and organic chemicals, which correspond 
to 75% of the value of its total exports in the same year. We certainly can do better than that. 
4.52.  From the comprehensive reports presented today, we observe that Madagascar's economy 
has recently experienced a major shift towards mining and agriculture. Both areas were identified 
by the Malagasy Government as strategic for development, and both offer potential for bilateral cooperation and partnership. WT/TPR/M/318 • Madagascar 
 
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  4.53.  The Malagasy Government deserves praise for its National Development Plan. It sets a 
framework for sustainable growth with specific proj ects and activities to enable the achievement of 
a clear set of objectives. Brazil encourages Madaga scar to persevere in the establishment of a long 
term institutional framework, enabling investment from the private sector and contributing to the 
implementation of public policies. 
4.54.  Madagascar's efforts to modernize its economy and lower costs are admirable. Specifically 
let me note that the NDP has prioritized the development of basic infrastructure and construction 
as main targets to foster investment in the next years. In both areas, we can identify avenues for 
exchange between our two countries. 
CHINA 4.55.  China is very pleased to note that Madagascar is recovering from the socio-political crisis 
since 2009, which is mainly attributed to the growth in mining export and rice farming. Yet, we 
have to acknowledge that the foundation for the current recovery is still weak. The aging infrastructures, high fiscal deficit and inflation, as well as inadequate investment are still 
constituting challenges for its development in the future. Madagascar boasts substantial 
potentiality in mining, agriculture, fishery, and many other sectors, and China encourages Madagascar to bring these potentialities into full play by continuing its ongoing economic reform so 
as to further facilitate external trade and boost both domestic and foreign investment. 
4.56.  On the bilateral front, though affected by the socio-political crisis of Madagascar in 2009, 
China and Madagascar bilateral trade started to recover since 2011, achieving US$871 million in 2014, representing a 68.5% growth compared to the pre-crisis level in 2008. As the Secretariat 
report has pointed out, China has become the third largest import source and fifth largest export 
destination of Madagascar. Yet, China's investment in Madagascar was growing at a much slower pace, as our direct investment in Madagascar is merely about US$26.75 million in the year 2014, 
which is only about 40% of the pre-crisis leve l in 2008. China is willing to promote liberal 
investment with Madagascar, and encourages Madagascar to facilitate the major obstacles Chinese investors are facing by streamlining approval process and easing labour licensing requirements. 
4.57.  On the multilateral front, China commends the positive role of Madagascar in the 
multilateral trading system, as a member of the African Group and the ACP countries. At this critical juncture of the Doha Development Agenda , China looks forward to cooperate closely with 
Madagascar and other Members, to achieve a long-expected successful conclusion of this round in 
the coming months. 
THE
 SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
4.58.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu is particularly 
pleased to note that Madagascar is gradually recovering from the socio-political crisis since the 
December 2013 presidential election. The Government has been able to turn its attention to the key development areas of infrastructure and the legal and regulatory framework. The National 
Development Plan 2015-2019 is impressive, we sincerely hope that all these very worthy efforts 
will lead to economic recovery, and help Madagascar to realize its macroeconomic stabilization and sectoral reforms. 
4.59.  At the multilateral level, the decision to hold the 10th WTO Ministerial Conference in Africa 
for the first time in 20 years is a clear demonstration of the commitment of the international 
community to integrate Africa including Madagascar into the multilateral trading system. We would encourage Madagascar to make good use of the WTO's trade-related capacity-building, technical 
assistance, and "Aid for Trade" resources. These can help Madagascar trade diversification and 
have a direct effect on raising the standard of living of its people. 
4.60.  As far as our trading relationship with Madagascar is concerned, the value of the two-way 
trade between Madagascar and the Separate Cust oms Territory of Taiwan, Penghu, Kinmen and 
Matsu was about US$34 million in 2014. There are certainly potential exists for greater economic cooperation and trade expansion in the future between us. WT/TPR/M/318 • Madagascar 
 
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  MAURITIUS 
4.61.  Given our proximity in the Indian Ocean, Madagascar is one of our main trading partners in 
the region. Under the IOC, SADC and COMESA, Mauritius and Madagascar continue to strengthen their economic and commercial ties. Mauritius businesses have also invested in the economy of 
Madagascar in sectors including textiles, agriculture, services, to mention a few. 
4.62.  We commend the efforts of the Government of the Republic of Madagascar to redress the 
economy and uplift the economic and social well-be ing of their population after years of growth 
constriction due to lingered political crisis and economic uncertainty. This course taken, we expect 
real GDP growth to accelerate. We also hope the agricultural sector, which provides livelihood for most Malagasies, to play a crucial role in growth and development. 
4.63.  We are also pleased that there has been reco very in exports from Madagascar under AGOA. 
Mauritius lent a strong support for Madagascar's re-insertion in the list of AGOA beneficiary 
countries.  
4.64.  My delegation wishes to commend the Government of Madagascar for the new three year 
economic development strategy including a set of reforms aimed at reinvigorating the economy 
and reducing poverty. We note an increase in public investment expenditure particularly on infrastructure and the productive sectors. We call on the development community to continue their 
sustained support to Madagascar's efforts as they endeavour to overcome key development 
bottlenecks. 
4.65.  Last week in a similar TPR exercise, my dele gation pointed out the sheer vulnerability of 
States which are heavily dependent on external ma rkets. Fragile economic recovery in the EU, our 
main source of tourists and investment, as well as leading destination for exports, affects us both 
in Mauritius and Madagascar alike. 
4.66.  Mauritius and Madagascar pursue the same objectives in respect of regional integration. In 
this regard, Mauritius has consistently supported Madagascar's strong participation in regional 
organisations such as the COMESA, SADC, IOC, IOR and now the Tripartite FTA including the AU Continental FTA. Mauritius and Madagascar, along with Seychelles and Zimbabwe are implanting 
the interim-EPA with the EU. We believe in dynamic intra-regional trade which augur well for 
deepened trade and investment and opportunities and for enhancing dynamic economic complementarities. We are working with a number of countries in the region, including Madagascar to address removal of barriers to trade and improving the ease of doing business, this with a view 
to facilitate greater trade and investment in the countries in the region. 
KINGDOM
 OF MOROCCO 
4.67.  As an African country, it is a great pleasure for the Kingdom of Morocco and its delegation to 
participate today in the third review of Madagascar's trade policies, which, I am convinced, will 
enable Members of this Organization to take stock of the progress made by this fellow nation and friend in the multilateral trading system. 
4.68.  The exercise before us today and the day after tomorrow will also be an opportunity for the 
Government of Madagascar to present the different facets and underpinnings of its trade policies, determined as it is to honour its commitments and to participate fully in multilateral trade. 
4.69.  Madagascar and the Kingdom of Morocco have maintained excellent fraternal ties for many 
years now as well as cooperation based on solidarity, which, in view of the two countries' strong 
determination, will undoubtedly grow stronger. 
4.70.  Over the years, my country has shared its cutting-edge expertise with its partners, 
especially as regards water and agriculture, and also has more than 30 years of management 
training experience in a variety of specialized fields. 
4.71.  Today, considering Morocco's particular interest in South-South cooperation, I am happy 
and proud to reiterate that the Kingdom is firmly committed to pursuing and increasing bilateral 
cooperation and to broaden its scope to encompass all sectors. WT/TPR/M/318 • Madagascar 
 
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  4.72.  Madagascar is slowly recovering from the socio-political crisis which broke out in 2009 and 
was brought to an end by the December 2013 pres idential elections. The economic upturn which 
began in 2014 has been boosted by strong perfor mance in rice farming and the extraction and 
export of heavy metals such as nickel, cobalt and titanium. Trade reforms, especially in the area of 
trade facilitation, have also played a part. 
4.73.  Nonetheless, we regret the slowdown in economic activity resulting from the decline in 
commodity prices and the weather-related disasters that hit the country. Severe flooding in the 
northern half of Madagascar and drought in the south have badly affected the population, which 
lives primarily from agriculture. 
4.74.  I would like to commend Madagascar for its effo rts in making further headway and achieving 
greater stability, and to pay tribute to the international community as a whole for supporting the 
country and for its engagement and invaluable assistance in accompanying Madagascar in its 
incipient development process. 
4.75.  However, the consolidation of democracy and good governance cannot be genuinely 
irreversible or even sustainable over time if the country's uncertain and fragile economic outlook 
persists. Our duty is to help Madagascar capitalize on its achievements and continue along the development path. 
4.76.  Support and backing from the international community will clearly lead to the consolidation 
and growth of the national economy, sustainable development, poverty reduction and trade facilitation. First and foremost, they will make a substantial contribution to Madagascar's integration in the global economy. 
4.77.  Whilst reiterating Morocco's willingness and firm commitment to continue and step up its 
development aid and assistance for Madagascar, I appeal to all friendly countries, donors and development partners to redouble their efforts to maintain and intensify their own support for the 
country. 
4.78.  We are pleased to note today that Madagascar has taken measures to integrate trade in its 
national development strategies. It has benefited from Aid for Trade. Nonetheless, it needs further 
assistance to eliminate the bottlenecks hampering its efforts to turn trade into one of the key 
drivers of its economic development. 
4.79.  We are convinced that economic integration is key to the development of the African 
continent. Efforts should be intensified to accelerate regional economic integration, the 
development of cross-border infrastructure and inter-African trade so that African countries can 
achieve lasting economic development in the nearest possible future. 
4.80.  Africa has not yet made the most of all its strengths, nor has it been able to draw benefit 
from the significant size of its market, population and resources through inter-African trade. 
4.81.  The imperative for a strong and united Africa lies in the fact that economic synergy 
progresses through integration, because the economic advantage of any economic community is 
greater than the sum of the economic advantages of each of its individual member countries. The 
promotion of trade among African countries should be considered a priority given that it can serve as a route to growth, job creation and wealth. 
4.82.  I would like to congratulate the Government of Madagascar for its successful and laudable 
performance in recent years, and for its dynamism  in promoting trade across this important region 
of the African continent. 
INDIA 
4.83.  India and Madagascar enjoy cordial bilateral relations. India has had maritime links with 
Madagascar for several centuries. The late nineteenth century and early years of the twentieth century witnessed a steady increase in people to people exchanges, particularly in the area of 
trade and investments. India opened a Consulate in Antananarivo in 1954 and last year, we 
commemorated sixty years of the establishment of diplomatic ties between India and Madagascar. WT/TPR/M/318 • Madagascar 
 
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  4.84.  Bilateral trade between India and Madagascar ha s been steadily growing from a level of 
US$ 206.38 million in 2011-12 to US$291.58 in 2013-14. Imports from India had a market share of about 6% in total imports of Madagascar during the year 2014. Madagascar is a beneficiary country under the Duty Free Tariff Preference Scheme of India for least-developed countries 
(LDCs), which provides duty free market access on about 96% of India's tariff lines and 
preferential access on about 2.2% of the lines.  
4.85.  As part of South-South Cooperation, India's focus has been on capacity building including 
training in technical fields through courses, which are offered under Indian Technical and Economic 
Cooperation (ITEC) Programme and India Africa Fo rum Summit Scholarships. Madagascar is also a 
beneficiary of the Pan African e-network project, which has been extended till 2016. During the period under review, the Government of India had al so extended a concessional Line of Credit of 
US$25 million to Madagascar for raising productivity of rice and setting up of fertilizer plants. 
4.86.  We have noted that Madagascar is slowly recovering from the socio-political crisis, which 
broke out in 2009 and was subsequently brought to  an end in 2013. We note with concern the 
slow pace of economic growth during the period  under review (2009-14) averaging less than 1% 
per year, which is well below its potential. We have noted a decline in trade of goods and services, which fell from 80% of the GDP in 2008 to less than 70% of the GDP in 2014. While Madagascar 
became a major exporter of nickel and other minerals and ores during the period under review, 
the exports of clothing and other manufactures ha ve plummeted. Madagascar's services exports 
with income of about US$1.4 billion is mainly de pendent on tourism sector with an annual growth 
rate of over 32% since 2009. While Madagascar's agriculture has been through some difficult years 
since 2010, the sector offers tremendous export potential through a range of niche products, such 
as cloves, vanilla, groundnuts, cocoa paste, co ffee etc. The manufacturing sector also offers 
exceptional opportunities, especially in the agri-food and handicrafts area. We encourage 
Madagascar to continue to take prudent reform measures so that SMEs could benefit from the 
opportunities offered by the manufacturing sector. 
4.87.  We commend the remarkable efforts made by Madagascar to fulfil WTO notification 
requirements. We appreciate Madagascar for bringing simple average applied MFN tariffs down 
from 13% in 2008 to 12.2% in 2015 and for making significant progress in improving its customs services with electronic Single Window system. We also commend Madagascar's efforts to bring transparency in its government procurement through automated government procurement 
management system on the Internet. We have also noted that Madagascar is party to trade 
agreements covering over 50 trading partners, including COMESA and the SADC. 
BENIN 
4.88.  The delegation of Benin welcomes the opportunity  to take part in the trade policy review of 
Madagascar, which is a developing, least developed island country that remains committed to the promotion of trade and sustainable development. 
4.89.  Indeed, Madagascar has embarked on a number of reforms to enhance its economic and 
institutional environment and to improve the physical underpinnings of production, investment and exports of goods and services. 
4.90.  It is interesting to note the macroeconomic stabilization and sectoral reforms programme, 
which comprises, inter alia , the National Development Plan 2015-2019, the Integrated Public 
Finances Management System (SIGFP), and the reforms to the customs system, the investment 
regime and government procurement, and the inte rnal auditing and inspection of businesses and 
government departments. 
4.91.  Further implementation of these reforms will lead to economic growth projected to 
surpass 10% by 2019. 
4.92.  In order to make the most of the country's considerable potential in terms of agriculture, 
biodiversity, natural resources, mining and fisheries, it is essential first and foremost to address issues such as the high cost of access to financ ing, the inadequacy and/or prohibitive cost of 
energy, and the weakness or lack of trade-related infrastructure. WT/TPR/M/318 • Madagascar 
 
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  4.93.  The delegation of Benin accordingly takes this opportunity to encourage the community of 
development partners to give all due consideration to Madagascar's needs and to provide it with the technical and financial support required for it to continue implementing its National Development Plan in particular. 
4.94.  Useful support such as this would boost Madagascar's endeavours, the most prominent 
results of which have been a reduction in the external current account deficit to 10.2% of GDP compared to 18.9% in 2008, with the country's exports rising at a faster pace than imports. 
4.95.  Since Madagascar is actively involved in bilateral and multilateral relations with a view to 
the country's harmonious development, it remains committed to the consolidation of a multilateral trading system providing the clear, transparent and predictable rules for all that are essential to the prosperity of trading nations - in this case the most vulnerable among them, namely the least 
developed countries. 
4.96.  The delegation of Benin is pleased to share wi th the delegation of Madagascar the conviction 
that every effort must be made to draw up, with out delay, a post-Bali work programme taking into 
account the Ministers' instructions. 
4.97.  Efforts will have to be pursued in the medium term with a view to the conclusion of the 
Doha Development Agenda in a manner that takes into consideration the development dimension. 
4.98.  Madagascar's Government report highlights the country's technical assistance needs in a 
number of areas, such as the implementation of trade-related agreements; participation in the WTO's day-to-day activities; capacity building for participation in trade negotiations and for trade policy formulation; removal of supply-side constraints; and integration of trade and development 
policies. 
4.99.  Financial and technical support is also required for the Trade Ministry's trade promotion 
channel, namely the National Institute of Trade and Competition (INCC). 
4.100.  In addition, the Malagasy Government has identified a number of areas relating to 
implementation of the WTO Agreements. Its conc erns include anti-dumping, countervailing and 
safeguard measures; sanitary and phytosanitary measures (SPS); technical barriers to trade 
(TBT); trade-related aspects of intellectual pr operty rights (TRIPS); and trade facilitation. 
4.101.  The delegation of Benin strongly recommends that Madagascar receive the technical and 
financial assistance that it needs to support its trade promotion and sustainable development endeavours. 
PAKISTAN 
4.102.  Madagascar has the potential and natural resources to recover from the economic 
downturn as a result of socio-political crisis. There is an important mining sector, important 
maritime resources for fishery and aquaculture, important niche markets in exports of agriculture 
products, agri-foods and handicrafts, growing rice farming. 
4.103.  Bilateral trade between the two countries has increased for the last three years; however, 
trade potentials are underexploited. Pakistan exports consist of rice and cements, and trade 
balance is in favour of Pakistan. Bilateral trade has increased by 14.5% in 2014 as compared to the previous year: trade went from US$120 million in 2013 to US$138 million in 2014. 
4.104.  Implementing the adequate economic reforms are necessary and required to benefit and 
take full advantage of the economic potentials given the important natural resources that the 
country has: reforming the energy sector which has already been noted during the last TPR, 
reforming trade policies in agriculture, mining and fishery sectors. 
4.105.  We commend the efforts that have already been undertaken mainly in trade facilitation but 
more has to be done and we encourage the Government to implement those economic reforms. Economic reforms as all of us are aware have to go hand in hand with political stability that we 
encourage the Government to put and maintain into place. WT/TPR/M/318 • Madagascar 
 
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  JAPAN 
4.106.  According to the report by the Secretariat, the average GDP growth rate of Madagascar 
from 2009 to 2014 stayed below 1% due to unstable domestic politics from 2009 to 2013 as well as the socio-political crisis over the years. However, Madagascar has been recovering, as the IMF 
forecasted the GDP growth by 3% in 2014, rising to 5% in 2015. 
4.107.  In order to maintain this positive trend and accelerate economic growth, Madagascar's vast 
unexploited land, abundant mineral resources and fishery products should be better utilized. 
Well-functioning economic policies such as improving infrastructure and inviting sustainable foreign 
direct investment (FDI) will be key elements for taking advantage of Madagascar's huge growth 
potential. Recognizing that Madagascar's "National Development Plan" aims at a 10% or more annual growth rate by 2019, Japan expects Malaga sy future efforts to achieve this objective. 
4.108.  Geographically speaking, Madagascar is located in a key position in the Indian Ocean. It 
has great potential to be a trade and investment hub to the African Continent. Japan would like to develop closer cooperation with Madagascar, supporting for Japanese industries that contribute to 
the Malagasy economy. 
4.109.  At the outset, the structure of Malagasy trade has become highly diversified with regard to 
not only the share of trading partners but also th e composition of export goods. In addition to 
traditional agricultural commodities, nickels and other minerals have become the major group of 
exports, while Asian countries' share of Madagascar's export markets has grown. Japan commends Madagascar's efforts aiming diversification in trade and industries in a time of high volatility of natural resources and agricultural product prices. 
4.110.  Let me make brief comments on the WTO. Japan expresses our respect for Madagascar's 
considerable work to update its WTO notification s resulting in transparency of the multilateral 
trading system under the WTO. 
4.111.  Regarding trade facilitation, Japan commends that Madagascar has been striving 
constantly to improve its customs procedures. Given that the electronic Single Window is important to improve Madagascar's trade environm ent, Japan expects that Madagascar's lasting 
progress for facilitating custom procedures will result in the expansion of Madagascar's trade. 
Japan also expects that Madagascar will submit its notification of Category A commitment to the WTO and will finalize its domestic procedures for the acceptance of TF Agreement in a timely manner. 
4.112.  Before concluding, let me touch upon one specific issue. 
4.113.  Despite the already-mentioned commendable e fforts, we have a serious concern with 
respect to the value-added tax (VAT). According to the report by the Secretariat, one of the main 
concerns of exporting companies is the non-reimbursement of VAT credits. Although Malagasy tax 
law gives the exporting companies an entitlement for the refund of VAT paid through procurement 
of goods and services in the domestic market, so metimes they cannot receive the refund of their 
VAT credits due to fiscal and budgetary reasons. Considering that this problem has a significant 
impact on foreign direct investment, Japan hopes that Madagascar will address this matter promptly. We will submit our questions on this issue in a written form later. 
4.114.  In conclusion, I would like to express our strong wish to continue our cooperation. We 
expect that Madagascar will make the most of its potential and realize continuous economic 
growth. 
CENTRAL
 AFRICAN  REPUBLIC 
4.115.  The Secretariat report on the one hand shows the difficulties faced by Madagascar over the 
course of the successive crises that undermined the country's economic structures and, on the other, highlights the Government's efforts to revive the economy. WT/TPR/M/318 • Madagascar 
 
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  4.116.  These efforts bear witness to Madagascar's determination to align itself with international 
trends in general and to comply with the WTO principles and rules in particular, in spite of its limited capacity. 
4.117.  Nonetheless, we note that Madagascar's tourism and agricultural potential are still 
underdeveloped, although there are some positive indicators for the services sector. 
4.118.  To enable Madagascar to implement the ambitious development programmes currently 
under way, it is therefore important for the country to receive technical assistance from its 
partners. We welcome Madagascar's participation in the Enhanced Integrated Framework 
programme as an LDC Aid for Trade beneficiary. 
4.119.  Lastly, my delegation wishes the Government of Madagascar every success with its 
large-scale project whose final objective is to turn Madagascar into the Indian Ocean's 
"breadbasket". 
ZIMBABWE 4.120.  We note with great pleasure that following a period of deep crisis which negatively 
impacted on the economy and the well-being of the people, Madagascar has been able to 
progressively recover. This has been achieved through a set of sound economic reforms that include an improvement in public policies, management of public funds, product diversification and 
consumer protection. 
4.121.  Madagascar has also managed to liberalize its trade; however more has to be done to 
improve competitiveness. The country has great po tential to increase investment in agriculture 
and agro-industries in order to further transform the economy and reduce poverty. 
4.122.  Bilateral trade between Zimbabwe and Madagascar is still low; however, both countries are 
members of SADC, COMESA and CFTA and are also in the same Eastern and Southern Africa interim Economic Partnership Agreement configuration. We hope that Madagascar's economic 
recovery will present opportunities for greater economic cooperation with Zimbabwe. 
4.123.  We call upon the donor community and development partners to support Madagascar' 
economic recovery programs. Our delegation wishes Madagascar full economic recovery and a 
successful third Trade Policy Review. 
MOZAMBIQUE 4.124.  Mozambique aligns itself with the statements presented previously by other Members and 
wishes to register the recognition of efforts made by the Government of Madagascar for the 
consolidation of peace and reconciliation in this country, a basic condition for the trade and 
business to flourish, and for the promotion of favourable environment through economic development. 
4.125.  Mozambique notes with satisfaction that the country adopted a national plan 2015-2019 
and embarked with a range of processes and reforms which aim development. 
4.126.  My delegation is pleased to see encouraging signs in the implementation of strategies 
which aim to foster export of products and diversify the economy. 
4.127.  We are aware of the various challenges faced by  this country in many areas of concern to 
development, especially the infrastructure. We praise the country's initiatives throughout all these measures that have been taken, notably the development of a wide range of regulations. 
4.128.  We are all of the view that Madagascar must be assisted in the implementation of these 
reforms and the assistance in all the WTO Agreements have encouraged the country to continue its efforts aiming at diversification of the economy by redirecting investment on infrastructure, 
agriculture, services, industries, tourism, fisheries and other areas of potential for economic 
development. WT/TPR/M/318 • Madagascar 
 
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  4.129.  We are confident that the country will succeed in the implementation of the reforms and its 
national plan and we encourage the continuation with policies that reinforce its involvement in 
regional initiatives. Those actions are likely to contribute to attain the right aspirations of the coming active player in the regional and global trading system. WT/TPR/M/318 • Madagascar 
 
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  5  REPLIES BY THE REPRESENTATIVE OF MADAGASCAR AND ADDITIONAL COMMENTS 
5.1.  The Government of Madagascar consistently aimed for the utmost transparency in describing 
the strengths and weaknesses of its trading system in the report submitted for this review. In its 
replies to questions, it took care to be as spec ific as possible and clearly present its plans aiming 
to sustainably resolve the problems underpinning the questions received. We are grateful, first and 
foremost, for the 19 remarkable statements which the various Permanent Representatives were kind enough to deliver in the course of the first part of the review last Tuesday. We would like to 
extend our warmest thanks to Your Excellencies for gracing this second session with your 
presence. 
5.2.  We hear you and will convey the messages received here to our Government and our private 
sector. We will summarize these statements as follows: 
5.3.  Stability is not merely a political issue, nor is it a mere absence of crisis. Stability stems from 
a combination of factors guaranteeing private investment, employment, economic growth and a consistently acceptable level of macroeconomic indicators. Prior to inclusive and sustainable 
development, peace and stability are prerequisites for improving public services, promoting official 
development assistance, sustaining gains, preserving and maintaining infrastructure, and strengthening the reforms in progress. 
5.4.  Madagascar's trading partners have an understanding for the crisis situations and natural 
disasters suffered by our country and are sympat hetic to its plight. Those with limited trade 
relations with our country aspire to expand an d diversify trade and in vestment. Other Members 
are hoping to establish new forms of trade with Madagascar. 
5.5.  As regards the measures to be taken, priority should be given to upgrading and bringing 
infrastructure up to standard, in-depth refo rms to ensure better governance, improving the 
business climate, strengthening institutions, and enhancing services and the operating conditions 
of the national electricity and air transport companies. 
5.6.  Some Members have highlighted difficulties relating to the refund of VAT to exporting 
enterprises, whilst acknowledging the Gove rnment's efforts to remedy the problem. 
5.7.  Your words of encouragement and support and the specific offers of technical assistance and 
cooperation received further strengthen our determination to press on with the reforms at customs level in order to: 
 streamline procedures and reduce customs clearance times; 
 integrate trade more effectively in the implementation of the national development plan; 
 coordinate trade in such a way as to derive greater benefits from the preferences and 
waivers granted, in the services sector in particular; and 
 restore confidence by applying simple, transparent and predictable trade rules. 
5.8.  Madagascar's efforts to further liberalize access to the services market have led the 
Government to consider a statutory audit and any other accompanying measure that would enable 
it to implement the necessary reforms in the relevant sectors. Such an audit would make it 
possible to identify gains in competitiveness, e nhance services, and reduce the costs to consumers 
resulting from the opening up of certain sectors. 
5.9.  In addition to the success recorded in export ing mining and agricultural products, we are 
convinced that it is entirely feasible to diversify our export goods and services by implementing 
appropriate economic reforms in a large number of sectors. In order to achieve this goal: 
 It is necessary to build up the regulatory bodies' capacities to carry out reforms in these 
sectors. WT/TPR/M/318 • Madagascar 
 
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   Physical transport, telecommunications and electricity infrastructure should underpin the 
development of new market opportunities. 
 Compliance with SPS and environmental standards will also be improved. 
 Cooperation and better inter-ministerial coordi nation will be prioritized in implementing 
these new plans. 
5.10.  The Government's priority is to exploit upstream mining and hydrocarbon potential since 
both sectors are posting fairly healthy growth margins in terms of royalties, export revenue and 
potential job creation in the years to come. 
5.11.  New technologies will also play a role in accelerating achievement of the sustainable 
development goals through the expansion of trade opportunities and by strengthening Madagascar's position in global value chains. 
5.12.  Sustainable and inclusive tourism will be developed and the rules governing investment in 
the sector are gradually incorporating notions such as inclusiveness and sustainability, especially as regards workers' rights, respect for the environment and loss reduction through the 
establishment of closer links between local stakeholders, in line with the well-known phrase 
"more links, fewer leaks". 
5.13.  As regards the business climate, a new law on public-private partnership will shortly be 
submitted to the National Assembly. The Economic  Development Board of Madagascar (EDBM) is 
working very hard with partners such as the International Finance Corporation to ensure that the quality of this environment is the primary ince ntive – more so even than tax benefits - for 
investors to set up business in Madagascar. A permanent dialogue will be maintained between 
private sector and government in order to lift the remaining obstacles to trade that hamper the 
private sector and its export competitiveness. 
5.14.  In order to accelerate the country's growth, Madagascar will focus on the combined impact 
of public and private investment to create the conditions necessary for innovation, 
entrepreneurship and increased domestic productive  capacity overall. The spatial distribution of 
investment will create outlets for those manufacturing high-value products. Public governance at 
all levels, including local authorities, will ensure improved tax collection and the entry of informal 
businesses into the formal sector, and build trust on the part of Malagasy or foreign private investors. 
5.15.  The land reforms initiated with the support of the development partners are beginning to 
bear fruit by making it possible to avoid competition among sectors (e.g. mining, tourism, 
agriculture, conservation) and are thus reducing th e pressure on land with high business potential. 
5.16.  Increased and enhanced coordination of Aid for Trade is being considered in order to build 
up the country's capacities for further trade de velopment. In view of the encouraging results 
achieved by the Enhanced Integrated Framework's National Steering Committee and of the need for Madagascar to set up half a dozen national committees, the official establishment of a national 
council responsible for all trade-related matters has been decided. The council will, as needed, 
assume the functions of National Steering Committee, national trade facilitation committee, SPS committee, TBT committee, NTB committee, an d trade negotiations coordinating committee. 
This will ensure that the focal points are accountable to a council or committee at national level 
and that the proceedings of these various committees are mutually consistent and beneficial. 
Lastly, the pooling of resources will ensure a systematic monitoring of progress and coherence in terms of notifications, reforms, international coop eration and negotiating positions, topic by topic. 
5.17.  A round table meeting, extended to Madagascar's resident or non-resident technical and 
financial partners, will be held in order to follow up on the trade policy review's recommendations. This meeting will also be an opportunity for the partners to work together to endorse and, where 
necessary, provide financial support for a number of reforms. 
5.18.  The Ministry responsible for trade has undertaken to ensure that the numerous bilateral 
trade agreements signed by Madagascar are duly recorded and that the various preferential rules WT/TPR/M/318 • Madagascar 
 
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  of origin in effect are harmonized. Monitoring progress in Madagascar's undertaking to establish 
the Tripartite Free Trade Area's planned common extern al tariff and bringing it into line with the 
aforementioned trade agreements are at  the top of the Ministry's agenda. 
5.19.  We can solemnly declare to the Membership today that: 
 Madagascar will ratify the Trade Facilitation Agreement without delay and notify the WTO 
of the Category A measures; 
 trade facilitation capacity building will continue and the actions of the various entities 
involved will be harmonized; 
 a single window for exports is currently being put into place with UNDP support in 
particular; 
 customs and trade-related coordination at the border will be continuously improved; and 
 violations of tariff bindings will gradually be reduced in order to enable the country to 
comply with its commitments. 
5.20.  As regards notifications, Madagascar will make every effort to continue addressing its 
backlog in this respect. 
5.21.  The promotion of cooperatives and large-scale farming, the building of infrastructure and 
irrigation facilities and the upgrading of production  and animal and plant protection techniques will 
lead in the long run to increased productivity in the agriculture, livestock and fisheries sectors. 
Protection of the environment, mitigation of th e adverse effects of climate change, and greater 
resilience of social ecosystems to shocks - whether nature-induced or otherwise - are part of the measures in support of the innovative approa ch that is currently being put into place. 
5.22.  The widening of Madagascar's commitments in well targeted services sectors will lead to 
more competitive domestic enterprises and more effective regional integration in terms of goods and services sold. Madagascar is considering taking advantage of the opportunities offered by 
partner countries and bilaterally and regionally negotiating better market access for Malagasy 
services providers. 
5.23.  All the written questions submitted, including those received after the deadline set by the 
WTO have already been answered in writing. Nonetheless, I would like to reiterate some of the 
responses to specific questions concerning the refund of VAT. 
5.24.  As regards accumulated arrears up to end 2014, a payment schedule extending up to 2019 
has been decided with the enterprises concerned. The revised Finance Law for 2015 provides for 
payment of the 2015 segment of the schedule. Re funds of 2015 VAT payments are also planned 
with the Tax Directorate and the Treasury in order to avoid any accumulation of backlog. 
5.25.  However, these payments are subject to the av ailability of funds from the Ministry of 
Finance and the Budget. The Malagasy State is currently negotiating with its financial partners in 
order to secure the facilities needed to clear its VAT arrears as soon as possible. 
5.26.  Madagascar reiterates the appeal launched at th e beginning of this statement. It would like 
to see more investors from your respective countries investing in Madagascar. We are also 
counting on our trading partners to ensure substantial official development assistance in order to remove barriers to trade, and to provide high quality and properly coordinated trade-related technical and financial assistance as well as a sizeable financial package in support of the revival of 
Madagascar's trade. 
5.27.  A round table meeting will identify urgent and feasible measures, recognized by all 
stakeholders as pressing, useful and relevant. The main conclusions of this third review will be 
compared with the conclusions of UNCTAD's ongoing Investment Policy Review so as to ensure 
better alignment of trade policies and practices. WT/TPR/M/318 • Madagascar 
 
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  5.28.  Madagascar reiterates its commitment to multilateralism in its current form. 
5.29.  We express grateful thanks to each of the countries that took part in our review. Our thanks 
also go to you, Mr Chairman, for the way in which you conducted our proceedings and, once again, to the WTO Secretariat for the quality of its repo rt, as well as to the interpreters. Thank you. 
DISCUSSANT 
5.30.  This brings us to the end of this third trad e policy review of Madagascar, which has enabled 
us to carry out an in-depth analysis of every component of the country's trade policy. 
5.31.  I am pleased to note the good atmosphere that prevailed throughout the meeting and the 
quality of the work accomplished. 
5.32.  I thank and commend the Government of Madagascar for the quality of its replies and 
explanations in response to the various concerns raised by WTO Members. 
5.33.  It is my sincere hope that the comments and recommendations put forward during this 
review will be taken into account in areas of Madagascar's economic and trade policy programmes where inconsistencies have been brought to the fore. 
5.34.  Indeed, the Malagasy people expect a great deal from their Government in order to make 
the most of the end of the country's protracted socio-political crisis. It would remiss of me not to echo Your Excellency's reiterated appeal to your bilateral and multilateral partners to support your 
country in its drive for reform. 
5.35.  Lastly, I wish Your Excellency and all members of the delegation accompanying you a safe 
return to Madagascar. 
5.36.  You may rest assured of the WTO Secretariat's readiness to support your country in 
implementing the recommendations put forward today. Thank you. 
JAPAN 5.37.  First of all, let me express my appreciation  to the Madagascar delegation for making 
significant efforts to prepare the TPR and providing us with an informative presentation. We also 
would like to extend our gratitude for the insightful remarks from the discussant. 
5.38.  Japan has submitted a follow-up question regarding the VAT credits. We are looking forward 
to receiving an answer to the question in due course. 
5.39.  As I said in the last session, Madagascar is blessed with abundant resources which have 
enormous potential to promote economic growth. Japan would like to work closely with Madagascar, together with other Members,  for our future discussions in the WTO. 
5.40.  We congratulate Madagascar on its success in this TPR. 
THE
 SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
5.41.  Madagascar, a beautiful island country located in the South-East coast of Africa, has 
abundant natural resources and is rich in ecological diversity as well as tourist attraction. 
5.42.  Madagascar, I believe, is full of potential to promote economic growth. I would like to recall 
the shrimps imported from Madagascar and the innovated entrepreneurial spirit in the seminar 
organized for the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu in May 2014 
that was so attractive for all participants.  
5.43.  Following the remarks made during the TPR on 14 July, we encourage Madagascar to make 
use of the WTO's trade related capacity, including technical assistance and the aid for trade 
resources. We are a stronger supporter of the aid for trade and this year we signed an MOU with WT/TPR/M/318 • Madagascar 
 
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  the WTO Secretariat for contributing to the Stan dards Trade Development Facility Fund for three 
more years. This means US$240 000 in total to be spent in improving SPS measures in developing countries and LDCs. We hope that Madagascar could, through the WTO, make good use of the fund for its trade and development. 
EUROPEAN
 UNION 
5.44.  The European Union thanks the delegation of Madagascar for its replies to Members' 
questions and especially for its responses to those raised by the European Union. 
5.45.  We have given very careful consideration to Madagascar's replies and are satisfied with the 
clarifications provided. 
5.46.  This morning in particular we would like to express thanks to Madagascar for the 
information and reactions shared and to the Minister for his statement. We believe that these 
additional details have given us a deeper insight into Madagascar's trade policy. 
5.47.  To conclude, we highly appreciate Madagascar' s engagement throughout this exercise and 
look forward to further exchanges of views in the future. 
UNITED  STATES 
5.48.  The United States would like to once again express our appreciation to Minister Rabesahala 
and his excellent team for their hard work and valuable contributions made to ensure the 
comprehensive review documentation and for the valuable insights gained from the discussion 
during the meeting. 
5.49.  In particular, in today's summary presentation, Madagascar sets out a very encouraging 
reform agenda for development, including efforts towards export diversification; improving 
interagency coordination mechanisms; rapid ratification of the Trade Facilitation Agreement and 
scheduling of implementation of all provisions efforts to create a Single Window; and efforts to improve its notifications of TBT and SPS measures. We just wanted to thank Madagascar and note 
our interest in following these developments very closely. 
5.50.  We also want to express our appreciation for the written responses to our questions. We 
have found them to be very thorough and comprehensive. 
5.51.  Finally, we congratulate Madagascar on its successful Trade Policy Review and wish them all 
for the future.  WT/TPR/M/318 • Madagascar 
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  The third Trade Policy Review of Madagascar has allowed us to have a better understanding 
of the evolution of its socio-economic, trade and investment policies since its last Review in 2008, and the challenges it is facing. Our discussion has benefitted from the constructive participation of 
the delegation of Madagascar, headed by H.E. Mr Henri Rabesahala, Minister of Trade and 
Consumer Affairs, and by the valuable comments from the discussant, Ambassador and Permanent Representative of Congo to the WTO, H.E. Mr Luc-Joseph Okio. Members appreciated Madagascar's 
responses to the 68 advance written questions, an d look forward to answers to any outstanding 
questions no later than one month after this meeting. 
6.2.  Madagascar is slowly recovering from a six-year socio-political crisis that has further delayed 
its economic development. Its economic growth ha s been weak, despite increased exploitation of 
Madagascar's mining resources, and poverty has ri sen sharply. Rebuilding infrastructure, including 
energy and transport, would accelerate the recovery of the economy. In addition, further improvements in the investment approval proc ess and the business environment through better 
enforcement of law, and facilitation of access to credit, to construction permits and to property 
would also help. 
6.3.  Noting that agri-food and other agricultural production growth has remained weak, Members 
enquired about measures envisaged to effectively boost production. Some Members asked about 
actions envisaged by Madagascar to stop illegal lo gging and poaching of wild animals, and their 
subsequent exports. Concerns were also expressed about over-fishing in Madagascar's continental waters, including by unregulated foreign fleets. Several participants welcomed Madagascar's new 
mining policy and sought information about opportunities for foreign operators. Members 
commended Madagascar on its plan to broade n its GATS commitments in professional, 
communication, financial and tourism services. They also suggested that domestic air transport be 
further liberalized in order to support the tourism industry. 
6.4.  Members praised Madagascar for continued progress in Customs reforms. Its Electronic 
Single Window was operational, and paperless customs clearance procedures are very close to 
completion. Most border control institutions can now transmit their respective authorizations 
electronically to Customs. However, noting that the number of these institutions remains too high by international comparison, several Members encouraged Madagascar to restructure its border control, ratify the TFA, and take steps toward notification of its TFA commitment categories. 
I welcome the statement made by the Minister in this respect. Some sought information on the 
impact of cargo tracking notes, and encouraged Madagascar to make Customs fees reflect the cost 
of services rendered. They praised Madagascar for renouncing the use of minimum import values 
for customs valuation purposes. Madagascar has also made efforts to update its WTO notifications; 
its WTO Reference Centre is operational, and local participation in WTO online training courses has increased significantly. 
6.5.  Participants also noted that tariff reductions, mainly on agricultural inputs, have lowered 
Madagascar's average applied MFN rates from 13% in 2008 to 12.2% in 2015. However, applied rates still exceed the corresponding bound levels on 52 lines; they encouraged Madagascar to take appropriate steps to address this inconsistency. Clarifications were sought about the progress 
towards the conclusion of the Tripartite Free Trade negotiations between COMESA, EAC and SADC. 
They also asked about effects of the im plementation of the EPA with the EU. 
6.6.  Several participants called for an upgrade of the regimes on standards and technical 
regulations, and sanitary and phytosanitary measures, particularly to boost exports; and for the 
establishment of the appropriate national committees and coordination mechanisms. Some participants queried the continued non-reimbursement of VAT credits to exporters, whilst others 
asked about prospects for reform of the Export Free Zone scheme. Concerns were expressed about 
the numerous levies on exports. Members also asked about the implementation of the WIPO 
Internet Treaties, about the possible extension of the term of protection for software, and about 
the protection of trademarks and geographical indications in Madagascar. 
6.7.  In conclusion, Members congratulated Madagascar for its engagement in trade facilitation, 
but urged the country to ensure political and cons titutional stability, and establish an environment 
conducive to socio-economic development. Continued liberalization and structural reforms would WT/TPR/M/318 • Madagascar 
 
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  be essential. In this respect, the declaration by the Minister includes an encouraging agenda. I 
hope that Madagascar will take into account the results of this review to further develop its trade and economic policies to the benefit of all its citizens. Members are encouraged to support Madagascar in its efforts by keeping their markets open to its goods and services, and by 
responding favourably to its needs for assistance. 
6.8.  Finally, I would like to thank H.E. Minister Henri Rabesahala and the rest of the delegation of 
Madagascar, the discussant, the Members, and the Se cretariat for their contribution to the third 
Trade Policy Review of Madagascar. I would also like to thank the interpreters for their accurate 
work. 
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