WT/TPR/S/174 Trade Policy Review 
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II. TRADE AND INVESTMENT REGIMES 
(1) INSTITUTIONAL FRAMEWORK  
1. Since its independence in 1960, Chad has experi enced a series of socio-political crises.  A 
succession of political regimes coupled with a numbe r of constitutional revisions has resulted in an 
instability that has posed a fundamental problem fo r society and for development.  In 2004, the 
Government stated that the lack of dialogue be tween the different political actors and with civil 
society had precluded any progress towards transparent and participatory management of the country's 
affairs, i.e. good governance.1 
2. The current constitution was adopted in March 1996.  It was amended in 2005 following a 
referendum that resulted in the elimination of the provision limiting the number of presidential terms:  
the president can now be re-elected indefinitely.2  Under the Constitution, the President is the head of 
state and guarantor of the Constitution.  The pr esident has the power to dissolve the National 
Assembly in order to hold elections, to organize referendums on matters of na tional interest, and to 
conclude international treaties and agreements. 
3. Executive power is vested in the President toge ther with the government (including the Prime 
Minister) appointed by him.  The President may di smiss the government, at his own initiative or when 
the Prime Minister hands in his government's resignation, or following a vote of no-confidence or the adoption of a motion of censure by a majority of the National Assembly. 
4. The members of the unicameral National Assemb ly (the representatives) are elected by direct 
universal suffrage for a renewable term of four years.  The "decentralized authorities"
3, provided for 
under Title XI of the Constitution, have not yet been  established.  However, a ministry responsible for 
decentralization has been set up. 
5. Article 141 of the Constitution stipulates that "judicial power shall be independent of 
legislative power and executive power".  Judicial pow er is exercised by a single order of which the 
Supreme Court, created in 1999, is the highest authority.  It is made up of three sections:  a Judicial Section, an Administrative Sec tion, and an Audits Section.
4  The role of the Supreme Court is to make 
a genuine contribution to the consolidation of the rule of law and to establish good governance.5  
Under the authority of the Supreme Court, judicial power is exercised by the courts of appeal, the 
tribunals, and the magistrates' courts.  Commercia l courts were introduced in 2006 (Box II.1).  The 
magistrates are appointed by the Supreme Council of  Justice, presided over by the President of the 
Republic. 
                                                      
1 Ministry of Commerce (2006). 
2 Constitution adopted by referendum on 31 March 1996 and revised by Constitutional Law 
No. 08/PR/2005 of 15 July 2005. 
3 Chad's territory is divided into 29 departments,  which are sub-divided into electoral constituencies, 
each of which elects a representative. 
4 The Audits Section is responsible for controlling the legality of public expenditure.  In 2003, it 
observed that the figures for revenue and expenditure provided for in the initial Finance Law No. 01/PR/02 of 7 July 2002, voted by the National Assembly and promulgated by the President, differed from those contained in 
the administrative and management account of the Paymas ter General for the same year, modifications having 
been made by decree and order.  Republic of Chad (2003). 
5 Supreme Court, information online.  Consulted at http:www.coursupreme.td. Chad WT/TPR/S/174 
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6. The Chamber of Commerce, Industry, Agricu lture, Mining and Crafts (CCIAMA) aims, inter 
alia, to promote the private sector and to provide assist ance in relations with foreign countries.  Under 
its articles of association, the CCIAMA must be c onsulted on any changes in trade or investment 
regulations.6  It may also, on its own initiative, issue recommendations on any matters relating to the 
country's economic development.  With the suppor t of the World Bank Group's International Finance 
Cooperation (IFC), the CCIAMA created, in Decem ber 2004, the Centre for the Development of 
Enterprises (CDE) to provide enterprises w ith efficient technical assistance services. 
7. The Poverty Reduction Strategy Paper (PRSP - see Chapter I(1) encourages non-State actors 
to take part in national development and in policy fo rmulation.  It was to that end that the current 
Organization of Non-State Actors of Chad (OANET)  was created in 2003.  OANET brings together 
citizens and civil society groupings such as trade unions, consumer associations, and other specific 
interest groups.7  Several institutions were created in th e framework of the National Good Governance 
Strategy adopted in August 2002 by the Government in cooperation with the World Bank.  A Ministry 
of State Control and Ethics was created in 2005.  The Collège de Contrôle et de Surveillance des 
Ressources Pétrolières  (Oil Revenue Control and Supervision Board – CCSRP) is responsible for the 
                                                      
6 Law No. 26/PR/94 of 23 July 1994. 
7 For further details, see ECDPM (2003). Box II.1:  The commercial courts 
The first commercial courts opened in 2006 in the four main cities of the country for the purpose of 
streamlining and accelerating procedur es.  They have jurisdiction over commercial cases covered by the 
uniform acts of the Organization for the Harmonization of African Business Law (OHADA), namely: 
disputes relating to commitments and transactions between merchants, traders and bankers;  disputes 
between business partners and economic interest groups;  disputes concerning commercial transactions between persons;  and anything having to do with co llective actions for the settlement of liabilities.  There 
are a number of practical obstacles including a shortage  of judges and clerks and a lack of computers and 
other working tools. 
The president judge and the other judg es are magistrates.  They are ap pointed by decree of the President 
of the Republic after approval by the Supreme Council of Justice.  The commercial judges and their 
alternates are traders elected by their peers.  The list is transmitted by the Chamber of Commerce, 
Industry, Agriculture, Mining and Crafts (CCIAMA) to th e Ministry of Justice for ratification.  The Public 
Prosecutor to the court of first inst ance also serves the trade courts. 
Proceedings at the commercial  courts begin with an application addre ssed to the presiding judge, a writ of 
summons, or a direct summons.  The applicant must have an interest in the matter and  legal standing. 
The disputing parties are summoned to a conciliation he aring to present their arguments.  The purpose of 
the conciliation is to find an agreement or an arrangeme nt to put an end to the dispute.  Where the court 
determines that conciliation is not possible, it refers  the case to a public hear ing (in accordance with the 
rules governing civil cases).  Judgements of the commercial courts, cannot be appealed unless the dispute 
concerns an amount exceeding CFAF 6 million. 
The responsibilities of the presiding judge of a comme rcial court are similar to those of the presiding 
judge of a court of first instance.  The presiding judge sits alone and issues ordinances.  He may issue 
interim orders (in case of emergency or if there is a need for urgent action), or interim ex parte  orders 
(appointment of an expert or interlocutory measure). 
Source :  Roasngar Ablaye (2006), "L es tribunaux de commerce", Tchad & Culture , No. 245, March.
  Consulted at:  http://www .cefod.org [16 May 2006]. WT/TPR/S/174 Trade Policy Review 
Page 12 
 
 
use of this revenue for poverty reduction purposes (Box I.1)8;  and a National Technical Committee is 
in charge of monitoring the implementation of all projects funded by oil revenue, in particular the 
socio-economic, health and environmental component s.  In June 2003, the Government announced its 
intention to join the Extractive Industries Transpar ency Initiative (EITI), but little has been achieved 
in that respect to date.9 
8. According to a recent university study10, the capacity of the public sector is severely limited 
by a lack of qualified personnel and insufficient reso urces as well as a lack of motivation.  Added to 
this is the instability of appointments to high o ffices:  indeed, the average time spent by senior 
officials in responsible positions is less than one year .  This situation is aggravated by the institutional 
instability resulting from the constant restructuri ng of ministries and government offices.  And 
although an anti-corruption law was adopted in 200011, Chad was classified by Transparency 
International as the most corrupt country in the world in 2005.12  According to a recent government 
report, corruption undermines the efficiency of p ublic investment, slowing down economic growth 
and weakening the efforts being ma de to introduce good governance.13 
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
9. In principle, any policy, including trade policy, is enshrined in a legislative text.  Legislation 
may be initiated by the Government (draft law), or by the National Assembly (parliamentary bill).  
Parliamentary bills are submitted to the Government  for adoption.  Once they have been examined 
and adopted by the Council of Ministers, the draft laws or parliamentary bills are submitted to the 
National Assembly for approval.  Following their ad option by the Assembly they are promulgated by 
the President of the Republic after which, in principle, they are published in the Journal Officiel  
(Official Journal);  however, the Official J ournal has not been issued since March 2006.14 
10. Trade policy is under the responsibility of the Ministry of Commerce and Handicrafts, whose 
main task is to formulate, evaluate and implem ent trade policy and to ha ndle matters relating to 
Chad's participation in the WTO.  The other main entities involved in developing trade policy include 
the Office of the President of the Republic, the Office of the Prime Minister, and the ministries 
responsible for finance, agriculture and livestock (Chart II.1). 
                                                      
8 Collège de Contrôle et de Surveillance des Ressources Pétrolières , information online.  Consulted at:  
http://www.ccsrp-tchad.org [18 September 2006]. 
9 EITI, information online.  Consulted at:  http ://www.eitransparency.o rg/section/countries/ 
_congorepublic [15 July 2006]. 
10 University of Bordeaux, inform ation online.  Consulted at:  http://www.etat.sciencespobordeaux.fr/ 
institutionnel/tchad.html. 
11 Law No. 004/PR/2000 on the misuse of public property, corruption, pedalling of influence and 
similar offences of 16 February 2000. 
12 Transparency International, information online.  C onsulted at:  http://ww1.transparency.org.  See, in 
particular, Transparency International (undated). 
13 Ministry of Commerce (2006). 
14 Certain institutions gather together laws on specific subjects.  For example, the Centre d'Étude et de 
Formation Pour le Développement  (Centre for Development Studies and Training - CEFOD) gathers together 
all Chadian laws on public freedoms in order to "promote Chad's political, economic and social evolution towards a peaceful and democratic society".  CEFOD, in formation online.  Consulted at:  http://www.cefod.org. Chad WT/TPR/S/174 
 Page 13 
 
 
Chart II.1
Main entities involved in the development of trade and investment policy
Office of the President
General secretariat of the Government
(office in charge of government procurement)
Ministry of Commerce and Handicrafts
Ministry of Finance, Economy and Planning
Ministry of Livestock
 Ministry of Mines and Energy
Ministry of Post and New Communication TechnologiesMinistry of Agriculture
Ministry of Oil Resources
Organization of Non-State Actors of Chad
Source: Information provided by the Chadian authorities.Public sector
Private sector 
and advisory 
bodiesMinistry of InfrastructureOffice of the Prime Minister
Ministry of Foreign Affairs, Co-operation and African Integration
Ministry of Tourism Development
Ministry of the Environment and Fisheries
Ministry of Public Health
Chamber of Commerce, Industry, Agriculture, Mining and Crafts
 WT/TPR/S/174 Trade Policy Review 
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11. The Directorate-General of Customs and Indirect Duties (DDI) of the Ministry of Finance is 
responsible for levying duties and taxes at the bor der.  The Directorate-General of Taxes of the 
Ministry of Finance is in charge of initiating, developing and implementing fiscal policy, and of 
managing, controlling and collecti ng all domestic taxes in accordan ce with the General Tax Code.15 
(3) MAIN LAWS AND REGULATIONS  
12. After the Constitution, which is the supreme law of Chad, the other legal instruments are, in 
descending order of precedence and importance, the laws ,  the ordinances, the decrees, the orders and 
the decisions.16  Duly ratified or approved international treaties, conventions or agreements take 
precedence, as from their publication, over domestic la ws, subject in each case to their application by 
the other party (Article 217 of the Constitution).  Th us, the WTO Agreements form an integral part of 
Chad's domestic law17, and can therefore be invoked directly in  domestic courts, even in the absence 
of an implementing provision.  The other main la ws concerning trade and investment are listed in 
Table II.1 below. 
Table II.1 
Main trade and investment legislation, October 2006 
Title and/or field Text of law Date of last amendment 
WTO Agreement Law No. 12/PR/96 of 26 March 1996 1996 
CAEMC Customs Code Act No. 19/86-CD-1297 of 15 December 1986 2001 
Pre-shipment inspection Decree No. 521/PR/MEF/2003 of 18 
December 2003 2003 
General Tax Code Law on Finance 2006 
CAEMC Common External Tariff Act No. 7/93-UDEAC-556-SE1 2001 
Excise duty and value added tax Anne x 2 of Directive No. 1/99-CEMAC-028-
CM-03 1999 
Law on the Status of Traders and implementing 
regulations Law No. 06/PR/84 of 12 April 1984 and 
implementing regulations 1984 
Foreign Trader Card Law No. 20/67 of 9 June 1967;  Ordinance No. 
31/PR/ET of 4 October 1967 1967 
Procedures and regulations for the establishment of 
private commercial enterprises Seven uniform acts of the Organization for the 
Harmonization of Business Law in Africa (OHADA) No implementing regulations 
National Investment Code Ordinan ce No. 025/PR/87 of 8 December 1987 1987 
Concessions under the Investment Code (granting 
procedure) Decree No. 446/PR/MCI/87 of 8 December 
1987 1987 
CAEMC Investment Charter Regul ation No. 17/99/CEMAC-020-CM-03 1999 
National Government Procurement Code Decree No. 503/PM/SGG/2003 2003 
Mining Code Law No. 011/PR/1995 of 20 June 1995 1995 
Oil Law No. 001/PR/99 on the management of oil 
revenue 1999 
 Petroleum Code No. 07/PR/62 of 3 February 
1962 1962 
Forestry Code Law No. 36/PR/ 94 No implementing regulations 
Water Code Law No. 016/PR/99 of 18 August 1999 1999 
  (Table II.1 cont'd ) 
 
                                                      
15 Decree No. 076/PR/MF/2002 on the organization and responsibilities of the Ministry of Finance. 
16 An ordinance must in principle be ratified by a National Assembly at its next session, failing which it lapses. 
17 Law No. 12/PR/96 of 16 March 1996 on the ratification of the Marrakech Agreement Establishing 
the World Trade Organization (WTO). Chad WT/TPR/S/174 
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Title and/or field Text of law Date of last amendment 
Electricity Law No. 014/PR/99 on the generation, 
transport and distribution of electricity 1999 
Law on Pharmacy Law No. 024/PR/2000 2000 
Law on Telecommunications Law No. 009/PR/98 on telecommunications 1998 
Land Transport of Goods Uniform Act of 1 January 2003 2003 
Civil Aviation Code Law No. 032/PR/2000 2000 
Insurance Insurance Code of the Inter-African 
Conference on Insurance Markets (CIMA) 1992 
Source : Information 
13. Chad is a member of the Organization for the Harmonization of Business Law in Africa 
(OHADA), created by the treaty of October 1993.18  OHADA is made up of the countries of the West 
African Economic and Monetary Union (WAEMU) and the Central African Economic and Monetary 
Community (CAEMC).  The main objective of the treaty is to solve the problem of legal and judicial insecurity in the States parties by adopting common le gal texts in the form of the so called "uniform 
acts".
19 
(4) TRADE POLICY OBJECTIVES  
14. Poverty reduction is without any doubt the main objective of the government's economic 
policy, including trade and investment policy.  Chad  developed its national p overty reduction strategy 
in 2003 in cooperation with all of the donors.  Th is strategy covers the period from 2003 to 2015, and 
has five main components.  The government appears to be giving priority to the promotion of good governance, notably through the consolidation of the rule of law.  From an economic standpoint, the 
government's objectives are the promotion of the private sector through restructuring and 
privatization, priority development of in frastructure, and economic diversification. 
15. Promotion of international trade is at the heart of the economic revitalization and poverty 
reduction strategy, and relies on two main measures:   liberalization of imports with a view to 
promoting more dynamic and fluid local market s and better access for the population to essential 
goods and services
20;  and the promotion of exports as a m eans of boosting income, particularly in 
rural areas.  Chad's oil exports fit into this stra tegy, since the revenue thus generated must, under the 
Law on the management of oil revenue, be allocated to poverty reduction projects.  The authorities are 
aware that the objective of promoting trade as a central component of the market revitalization 
strategy means reducing the numerous duties and ta xes currently levied on imports and exports.  
Discussions are under way with the donors to find wa ys to compensate the losses in public revenue 
that would result from these reforms. 
                                                      
18 Chad ratified the treaty on 13 April 1996 (Law No. 015/PR/96). 
19 The "uniform acts" are legislative texts adopted by the OHADA member countries having the status 
of laws.  They are applicable in the different member countries (" Actes Uniformes OHADA ".  Consulted at:  
http://www.ohada.com/textes.php?categorie=38). 
20 UNCTAD (2001). WT/TPR/S/174 Trade Policy Review 
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(5) TRADE AGREEMENTS AND ARRANGEMENTS  
(i) World Trade Organization (WTO) 
16. Chad has been a Member of the WTO since 19 October 1996.21  It has been recognized as a 
least developed country, within the WTO as well.  It  grants at least MFN treatment to all its trading 
partners.  It is not a party to any of the plurilateral agreements concluded under WTO auspices, and 
has not signed any of the WTO protocols concluded since 1995 in the areas of telecommunications and financial services.  Chad has not participated  in the Information Technology Agreement and has 
not signed the Pharmaceutical Understanding.  It was a party to the International Bovine Meat 
Agreement (1995-1997). 
17. Chad's commitments under the Uruguay Round are set forth in Schedule CV for tariff 
bindings (Chapter III (2)(iii)), and documents GATS/SC/108 for commitments under the General 
Agreement on Trade and Services (GATS) (Chapter IV (5)).  It has done little to fulfil its notification 
obligations (Table II.2), and its pa rticipation in WTO activities is li mited.  It has not notified its 
applied tariffs to the WTO Integrated Database (IDB).   Chad has had a diplomatic mission in Geneva 
since 2004. 
18. Until 2003, Chad was not directly involved, eith er as complainant or defendant, in any trade 
dispute settlement procedure.  In March 2003, th e WTO Dispute Settlement Body established a Panel 
under Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes 
to exam a complaint by Brazil concerning s ubsidies on upland cotton from the United States.
22  Chad 
reserved its rights as a third party. 
19. Chad's positions in the context of WTO activ ities have focussed on cotton and more broadly 
on agriculture.  At the Cancun Ministerial Confer ence in 2003, Chad joined the African Group in 
calling for "broader international market access for African products;  elimination of all measures 
leading to market distortions (primarily subsidies granted by wealthier countries to their farmers and 
exporters);  [and] recognition that cotton is a sp ecial and strategic product on account of its economic 
importance (...) and its contribution to poverty reduction."23  At the ministerial conference in 
Hong Kong, China, in December 2005, Chad and other members of the group of LDCs and the 
African Group recalled the economic hardships f aced by the economies and populations of the 
co-sponsors of the Sectoral Initiative in Favour of Cotton24 and other African cotton producing 
countries, in spite of their efforts, to particip ate in world trade.  These countries called for the 
implementation, at long last, of the Panel's reco mmendation of 2004 aimed at correcting the domestic 
support measures applied by certain WTO Members,  since these measures had caused considerable 
damage to the four co-sponsors of the Initiative. 
 
                                                      
21 Chad became a GATT contracting party on 4 July 1963 (Article XXVI:5(c)) after having applied the 
GATT de facto from 11 August 1960 onwards (GATT document L/2031, 12 July 1963). 
22 WTO documents WT/DS/267/7 of 7 February 2003;  TN/AG/GEN/4 of 16 May 2003;  and 
WT/DS267/AB/R of 3 March 2005. 
23 WTO document WT/MIN(03)/ST/112 of 13 September 2003. 
24 WTO document WT/MIN(05)/SR/4 of 24 February 2006. Chad WT/TPR/S/174 
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Table II.2 
Notifications to the WTO, October 2006 
WTO Agreement Description of co nditions Latest notification 
Enabling clause  
 Central African Economic and Monetary Community (CAEMC)  WT/COMTD/N/13a 
 29 September 2000 
 Text of the CAEMC Treaty  WT/COMTD/24 
 29 September 2000 
General Agreement on Trade in Services  
 Schedule of specific commitments on services  GATS/SC/108 
 30 August 1995 
Marrakech Agreement Establishing  the World Trade Organization 
Article IX:3 Waiver concerning the new AC P-EC Partnership Agreement  WT/MN(01)/15 
 14 November 2001 
GATT 1994, Article VI (Anti-Dumping Measures) 
Article 18.5 Laws and regul ations  G/ADP/N/1/TCD/1 
 25 August 1998 
GATT 1994, Article VII (Marrakech Agreement) 
Article 20.1 Delayed application of the provisi ons of Article VII of the GATT  WT/LET/237 
 27 August 1998 
GATT 1994 (State Trading) 
Article XVII:4(a) State trading enterprise  G/STR/N/7/TCD 
 5 July 2001 
Agreement on Import Licensing Procedures 
Articles 1.4(a), 8.2(b) and 7.3 Implementation of the Montreal Protocol  G/LIC/N/3/TCD/2 
 20 August 2001 
Articles 1.4(a) and 8.2(b) Import licensing regime  G/LIC/N/1/TCD/1 
 31 August 1998 
Agreement on Preshipment Inspection 
Article 5 No laws or regulations  G/PSI/N/1/Add.9 
 21 March 2001 
   G/PSI/N/1/Add.8 
 28 September 1999 
Agreement on Rules of Origin 
Article 5.1 and Annex II(4) No non- preferential rules  G/RO/N/22 
 16 September 1998 
Agreement on Subsidies a nd Countervailing Measures 
Article 32.6 Regulation  G/SCM/N/1/TCD/1 
 25 August 1998 
Agreement on Safeguards 
Article 12.6 Laws, regulations and admini strative procedures  G/SG/N/1/TCD/1 
 31 July 2000 
Agreement on Trade-Relate d Investment Measures 
Article 6.2 Laws and regula tions  G/TRIMS/N/2/Rev.5 
 22 February 1999 
Agreement on Trade-Related Aspect s of Intellectual Property Rights 
Article 63.2 Laws and regul ations  IP/N/1/TCD/1 
 11 September 2000 
Article 69 Contact points   IP/N/3/Rev.2/Add.10 
 17 September 1998 
a Cameroon, Central African Republic, the C ongo, Gabon, Equatorial Guinea and Chad.  
Source : WTO documents. 
(ii) Regional Agreements 
(a) African Union 
20. Chad is a founding member of the African Uni on (AU), the successor to the Organization of 
African Unity (OAU).25  In June 1991, the OAU founded th e African Economic Community (AEC) 
                                                      
25 The Charter establishing the OAU was signed on 25 May 1963.  The Constitutive Act of the African 
Union was adopted at the summit held in July 2000 in Lomé (Togo).  The African Union, which has now 
replaced the OAU, was proclaimed on 11 July 2001 in Lusaka (http://www.africa-union.org/).  See WTO (2006) 
for further details. WT/TPR/S/174 Trade Policy Review 
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under the terms of the Treaty of Abuja.  Specifically , the treaty provides for the creation of an African 
common market in six stages spread over 34 year s.  This integration process is based on the 
coordination and harmonization of tariff and non-tariff measures, between various commercial and 
subregional groups (known as regional economic comm unities (REC)), with a view to establishing a 
continental customs union.  The process has t hus far produced little in the way of results. 
21. The New Partnership for Africa's Development (NEPAD), adopted at the Lusaka (Zambia) 
Summit, is an AU programme managed at the centr al African level by the Economic Community of 
Central African States (ECCAS).  This progr amme also has trade integration objectives.26  Its work in 
the area of integration has come up against a numb er of obstacles, including  conflicts, institutional 
shortcomings, and lack of commitment by the member states.27 
(b) Economic Community of Central African States (ECCAS) 
22. ECCAS was established in 1983 by the six member  States of the CAEMC, namely Sao-Tomé 
and Principe, the Democratic Republic of the Congo, Rwanda, Burundi and Angola.  Its mandate is to 
ensure political dialogue in the region and to creat e a customs union within a minimum of 12 years 
and a maximum of 20 years, as well to establish common sectoral policies. 
23. ECCAS's institutional framework consists of  the Conference of Heads of State and 
Government, the Council of Ministers, a Court of Justice (not yet established), the General 
Secretariat, the Consultative Commission, and specialized technical committees.  ECCAS also includes a specialist body, the Central African Energy Pool (PEAC), created on 2 April 2003 as a platform for subregional consultation and decisions relating to energy. 
24. After a long period of inactivity, ECCAS is now  regarded as one of the pillars of the AU's 
AEC (Section (a) above) and signed the Protocol on relations between the AEC and the RECs in 
October 1999.  One important achieve ment, considering the numerous conf licts that have afflicted the 
region, is the creation of a mechanism for promoti ng peace, security and stability in Central Africa 
known as the "Council for Peace, Security and Stability in Central Africa" (COPAX).
28  O n  
24 January 2003, with a view to the conclusion of  an Economic Partnership Agreement (EPA) with 
Central Africa, the European Union signed a fi nancial agreement with ECCAS and the CAEMC for 
the purpose of supporting subregional integration.29  This agreement provides for the merger of 
ECCAS and CAEMC. 
25. ECCAS member countries have adopted a scheme for reducing the tariffs on intra-
Community trade, known as ECCAS Preferential Tariff30, with rules of origin harmonized on those of 
the CAEMC (Chapter III(2)(iv));  this coincided w ith the launch of ECCAS free-trade area project on 
27 January 2004.31  The free-trade area is due to be es tablished on 31 December 2007, in accordance 
with the timetable for the EPA with the EU (Secti on (iii) (a) below).  However, as of October 2006, 
the tariff reduction process leading to the establishment of a free-trade area had not yet begun. 
                                                      
26 For further information on th ese objectives, see NEPAD (2001). 
27 Delegation of the European Commission in the Central African Republic (2003). 
28 Decision No. 001Y/FEV/25/1999. 
29 Delegation of the European Commission in the Central African Republic (2003). 
30 Decision No. 03/CEEAC/CCEG/XI/04. 
31 Agence France Presse (2004). Chad WT/TPR/S/174 
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(c) Central African Economic and Monetary Community (CAEMC) 
26. Chad and its neighbours have a long common histor y of regional integration, which formally 
began with independence, with the creation of the Central African Customs and Economic Union 
(CACEU) by the Treaty of Brazzaville of 1964.  The process of economic integration within this 
Union was re-launched in the early 1990s (a period also marked by the devaluation of the CFA franc) 
by the treaty establishing the CAEMC.32  With a view to the negotiation of an EPA between the EU 
and Central Africa, consisting of the CAEMC coun tries and Sao Tomé and Principe, the CAEMC is 
in the process of negotiating a free trade agreement with Sao Tomé and Principe.  The Democratic 
Republic of the Congo is associated with these negotia tions between the EU and Central Africa;  thus, 
a free trade agreement should be concluded between  the CAEMC and the Democratic Republic of the 
Congo in the near future. 
27. The CAEMC's institutional framework consists of the Conference of Heads of State and 
Government, the Council of Ministers, the Executiv e Secretariat, the Inte r-State Committee (whose 
chief task is to make preparations for the deliber ations of the Council of Ministers), the Community 
Court of Justice (operational since 2000), and the Community Parliament (whose Convention will be 
ratified later).33 
28. The CAEMC is based on two unions:  the Central African Economic Union (CAEU)34 and  
the Central African Monetary Union (CAMU).  The CAEU seeks to achieve the following objectives:  
strengthen the competitiveness of econom ic and financial activities by ha rmonizing the relevant rules;  
achieve convergence towards sustainable performan ce by coordinating econom ic policy and aligning 
national budgetary policies with common monetary policy;  create a common market founded on the 
free movement of goods, services, capital and people;   and institute coordina tion of national sectoral 
policies, implement joint measures and adopt common policies, particularly in the following areas:  
agriculture, livestock and fisheries, industry, trade,  tourism, transport, telecommunications, energy, 
environment, research, edu cation and vocational training.35 
29. These objectives were to be achieved in three fi ve-year stages:  from June 1999 to June 2004 
– laying the groundwork for the implementation of the free movement of goods, services, capital and 
natural persons;  from June 2004 to June 2009 – implementing free movement;  from June 2009 to 
June 2014 – developing common sectoral policies.  According to the report on the first stage, the 
members of the CAEMC concentrated on enhancin g the four freedoms of movement within the 
common market.36  With respect to the free movement of  goods, members took the following steps:  
harmonization of the principles governing the applica tion of VAT and excise duties (and not the rates) 
(Chapter III (2)(iii))37;  revision, in 2001, of the common external tariff (CET) adopted in June 1993 
                                                      
32 The treaty was signed on 16 March 1994 by Cameroon, Central African Republic, Chad, Congo, 
Equatorial Guinea and Gabon.  Any ot her African State may join by appl ying for accession to the members of 
the CAEMC.  The CAEMC commenced its activities on 1 Ja nuary 1998.  On 5 February 1998, the Heads of 
State proclaimed the end of the CACEU a nd the birth of the CAEMC (Decision No. 6/98-UDEAC-CEMAC-
CE-33).  The former CACEU Secretar iat building in Bangui, in the Central African Republic, now houses the 
CAEMC Secretariat. 
33 An Interparliamentary Commission was provisionally set up on 22 June 2000.  It is composed of five 
members from each country, ap pointed by the legislative body of each member State, and aims to contribute, 
through dialogue and debate, to the efforts to bring about the integration of the Community in the areas covered 
by the Treaty and subsequent texts.  The Commission expresses its views in the form of resolutions or reports. 
34 WTO documents WT/COMTD/N/13 and WT/COMTD/24, 29 September 2000. 
35 Article 2 of the CAEU Convention. 
36 CAEMC Executive Se cretariat (2005). 
37 Directive No. 1/99-CEMAC-028-CM-03 on harmoni zing the legislation of the member States on 
value added tax (VAT) and excise duty. WT/TPR/S/174 Trade Policy Review 
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in order to bring it into conformity w ith the 2002 version of the Harmonized System38, and a study of 
the establishment of a common third-country trade policy;  amendment of the CAEMC Customs Code 
with the incorporation of the Acts and Regula tions relating to economic procedures, customs 
valuation under WTO rules, and rules of origin ;  and acceptance of regulations applicable to 
enterprises and government aid to ensure  free competition in the common market.39 
30. Moreover, the free movement of capital was fa cilitated by the adoption of the Investment 
Charter in 1999.40  The members of the CAEMC also consider it important to harmonize and 
coordinate the national policies of the Member St ates in the transportation and telecommunication 
subsectors. 
31. According to the conclusions drawn by th e Executive Secretariat, from the practical 
standpoint the CAEMC has to contend with political, financial and institutional (at headquarters level) 
constraints and with problems of communication.  In particular, "many acts (regulations and other 
directives) are still having insufficient influence on the development programmes and policies being 
implemented in most of the countries in the area".41  The difficulties relate, in particular, to 
"misapplication of the tax and customs codes and regulations, tariff and non-tariff barriers to intra-
regional trade, poor compliance with the rules of origin and Community provisions on the regulation 
of competition".  According to a recent study, the CAEMC is also encountering problems of a financial nature
42, owing to the failure of some member countries to pay the Community Integration 
Tax (TCI) and the consequent accumulation of substantial arrears.43  The TCI was introduced in 2002 
to finance the CAEMC's activities and is collected  by the customs services of the CAEMC member 
countries.  The Congo is the only CAEMC member country to have scrupulously complied with the 
provisions concerning the payment of the TCI.  Th e development of intra-Community trade is being 
hampered by the similarity of the agricultural, agro-industrial and mining economies of the countries 
of the subregion. 
(iii) Other agreements and arrangements 
(a) Relations with the European Union (EU) 
32. Chad is one of the 79 ACP countries with wh ich the EU concluded the Cotonou Agreement 
that entered provisionally into force on 1 March 2000.44  The trade provisions constitute one of the 
mechanisms for cooperation between the ACP coun tries and the EU.  The latter grants duty-free 
admission to industrial products and processed agri cultural products originating in 78 ACP countries 
(excluding South Africa) on a non-reciprocal basis. 
33. The Members of the WTO have granted th e EU a waiver from its obligations under 
Article I:1 of the GATT 1994 (on MFN treatment)  for the period extending from 1 March 2000 to 
31 December 2007, at which date new trading arra ngements consistent with WTO rules must be 
                                                      
38 Regulation No. 16/03-CEMAC-1368-CM-11 approving the alignment of the CAEMC Common 
External Tariff (CET) on the 2002 version of the Harmonized System (HS). 
39 Regulation No. 1/99/UEAC-CM-639 on the regulation of anti-competitive commercial practices. 
40 Regulation No. 17/99/CEMAC-020-CM-03. 
41 CAEMC Executive Secret ariat (2005), p. 24. 
42 Performances Management Consulting and ECDPM (2006).  
43 Among the reasons for non-payment is the dissatisfaction of certain States with the use made of these 
resources. 
44 This Agreement was signed on 23 June 2000 in Cotonou, Benin, and officially entered into force on 
1 April 2003 after ratification.  The Agreement repl aced the Lomé Convention, in  effect since 1975, whose 
fourth extension expired at the end of February 2000. Chad WT/TPR/S/174 
 Page 21 
 
 
concluded between the two parties.45  In accordance with the Coton ou Agreement, these arrangements 
will take the form of Economic Partnership Ag reements (EPA) between the EU and various ACP 
regional groupings. 
34. The EU initiated the EPA negotiation process on 27 September 2002:  the first phase involved 
all the ACP countries and the EU and concerned horizont al issues of interest to all the parties;  the 
second phase began with the start of EPA negotia tions with Central Africa in October 200346, 
followed by the opening of negotiations on other EPA s (section (ii)(c) above).  The road map for 
these negotiations was jointly signed by the parties on 20 July 2004 and prov ides, among other things, 
for the establishment of a WTO-consistent free-trad e area between the parties, over a 12-year period 
starting in January 2008.47 
35. The EU's Generalised System of Preferences (GSP) incorporates the "Everything but Arms" 
initiative48, under which the EU grants duty-free access, with no quantitative restrictions, to products 
(except for arms and ammunition) originating in  least developed countries such as Chad.  These 
market access opportunities have existed since 2001, with temporary exceptions  for bananas (until the 
end of 2005), rice and suga r (until the end of 2009).49 
(b) Relations with the United States 
36. Chad is among the African countries eligible fo r the programme set up by the United States in 
2000 under the Africa Growth and Opportunity Act (AGOA).  The provisions of the AGOA have 
since been modified, extending its application until 2015.  The AGOA also provides for increased 
technical assistance, from which Chad benefits.  The bulk of US imports from Chad is made up of 
petroleum products (€1.2 billion in 2005), whic h enter duty free under the AGOA regime.  The only 
other Chadian export product to the United States is  Gum Arabic (€13 million in 2005), imported into 
the United States at zero duty under the MFN regime. 
(c) Other agreements 
37. Most of the products exported by Chad enter duty-free into several industrialized countries 
under the GSP.  However, Chad's use of this tari ff programme has considerably receded, particularly 
since the introduction of the AGOA by the United St ates and of the "Everything But Arms" initiative 
by the European Union.  Although it has not signed the Agreement on the Global System of Trade Preferences (GSTP) among developing countries, Chad, as an LDC, is granted tariff preferences by certain signatories.
50 
(6) INVESTMENT REGIME  
38. The Government's policy is directed toward s encouraging private investment, including 
foreign investment, in all sectors of the economy.  Only the cotton, water, fixed telephony, postal 
                                                      
45 WTO document WT/MIN(01)/15 of 14 November 2001.  The waiver (WT/L/186) granted by the 
WTO, which extended the waiver under Article I (MFN treatment) of the GATT for the Fourth Lomé Convention between the ACP countries and the EEC (GATT document GATT L/7604), ended on 29 February 2000. 
46 Press release from the European Commi ssion's DG Trade, dated 3 October 2003. 
47 "Roadmap for the negotiations on the Economic Partnership Agreement between Central Africa and 
the European Union", 16 July 2004. 
48 WTO document WT/COMTD/57 of 29 March 2006. 
49 For further details, see Chapter II of WTO document WT/TPR/S/119 of 30 June 2003. 
50 For further details, see UNCTAD , information online.  Consulted at:  http://www.unctad.org. WT/TPR/S/174 Trade Policy Review 
Page 22 
 
 
services, and electricity sectors are still partly controlled by a monopoly.  The ministry in charge of 
commerce is responsible for investment policy. 
39. Chad has concluded several trade, invest ments protection, and technical cooperation 
agreements.51  As of October 2006, the common investme nt regime of the CAEMC – the Community 
Investment Charter of 1999 as amended in 200352 – had not yet been transposed into Chad's domestic 
legislation.  This Charter establishes a "Code of  Fair Practice" for governments and investors, 
particularly in the areas of protection against expr opriation by the State and remittance of profits.  The 
Charter reiterates the principle of free movement of capital for current transactions (Chapter I(1)).  It 
also provides for an exemption from profits tax fo r a period of three years, the possibility of 
accelerated depreciation, loss carry forward, and tax exemptions for technological research or training 
expenditures. 
40. Generally speaking, the planned measures to facilitate the establishment of companies in 
Chad have not yet been fully implemented.  Sin ce 2002, the Government has been examining a draft 
national charter containing the principles of the Community Investment Charter, a draft which 
reproduces the advantages offered by the Community charter.  A project involving the creation of a 
national investment and export promotion agency was being implemented within the Ministry of 
Commerce as of October 2006.  This project provides for a single window. 
41. For the time being, a number of provisions of th e Investment Code of 1987 remain in force.  
This Code provided for one ordinary-law ta x regime and four privileged tax regimes.53  In practice, 
potential investors negotiate establishment agreem ents with the Government, with specified 
concessions being granted.  The c oncessions generally include income  tax exemptions for employees 
and companies for a period of five years, renewabl e if the investment project is big enough or the 
enterprises are established in sparsely industrialized areas.  In addition, enterprises are offered the 
possibility of accelerated depreciation.  In exercising their professional activities under the 
ordinary-law regime, foreign em ployers and workers are treated as nationals.  According to the 
authorities, the agreements do not cover indirect du ties and taxes.  However, indirect duty and tax 
exemptions may be granted by arrêté  (order).  Moreover, the Investment Code does not cover the oil, 
mining and forestry sectors or most services activ ities, which are regulated by the specific codes 
described in Chapter IV. 
                                                      
51 The partners are South Africa, the OPEC Fund for International Development, Mauritius, Libya, 
Lebanon, Morocco, the Republic of Guin ea, and Switzerland.  In respect of Switzerland, see the "Agreement on 
Trade, Investment Protection and Technical Cooperation between the Swiss Confederat ion and the Republic of 
Chad.  Consulted at:  http://www.admin.ch/ch/f/rs/i9/0.946.297.361.fr.pdf. 
52 Regulation No. 17/99/CEMAC-020-CM-03 on the CAEMC Investment Charter.  Consulted at:  
http://www.izf.net/izf/Documentation/Journa lOfficiel/AfriqueCentrale/REG_17_99.htm. 
53 Regime "A" for small and medium-sized enterprises with a majority domestic ownership;  
regime "B" applicable to enterprises whose activities are limited to the national territory;  a regime "C" 
applicable to enterprises and establishments set up in Ch ad whose market extends to the territories of two or 
several CAEMC countries;  and regime "D" reserved for en terprises considered to be of great importance for the 
country's economic and social development an d whose levels investment are very high. Chad WT/TPR/S/174 
 Page 23 
 
 
ANNEX II:1:  TRADE-RELATED TECHNICAL ASSISTANCE  
1. Trade-related technical assistance is meant to provide a better understanding of WTO rules 
and Chad's participation in the multilateral trading syst em in order to help Chad to take advantage of 
the different opportunities offered by its various trade arrangements.  Since 2004, Chad has been 
participating in the revised Integrated Framework (IF) for Trade-Related Technical Assistance offered 
to the LDCs that satisfy certain criteria.1  In this framework, a diagnostic study of Chad was 
conducted in June 2004, including a re view of its technical assistance needs.  That study was being 
revised in October 2006. 
(1) SUPPLY -SIDE CONSTRAINTS  
2. The main constraints to the development of trade in Chad are not linked its trade policy only, 
but also to its socio-political instability (inclu ding insecurity) which acts as a disincentive for 
investors.  And to make matters worse, the shortage of basic infrastructure (transport, telecommunications, energy, etc.) adds to produc tion costs and limits the competitiveness of local 
products. 
3. Among the supply-side constraints identified in th e IF diagnostic study are barriers within the 
country, including the weakness of basic infrastructure and public services, the poor investment 
climate, institutional instability and governance probl ems.  Such constraints are also the result of 
Chad's trade barriers (Chapter III), in particular th e inefficiency of its customs administration and its 
high duties.  The elimination of these constraints, inter alia  through a technical assistance programme, 
should help to boost Chad's participation in world trade.
2 
(2) IMPLEMENTATION OF AGREEMENTS AND POLICY FORMULATION  
4. Since 1996, the WTO has conducted a number of technical assistance activ ities in Chad.  In 
1998, it set up a reference centre at the Ministry  of Commerce in N'Djamena and financed the 
necessary Internet connections together with the re levant training.  Howeve r, as of October 2006 the 
reference centre was experiencing operational probl ems.  The WTO also conducted a number of 
national seminars in N'Djamena including one on notification requirements, and Chad took part in 
several seminars and courses organized by the WTO, some of them regional.3 
5. The overhaul of the customs regime is one of the main areas requiring technical assistance.  
Although CAEMC members have a common legislativ e and regulatory system for customs, Chad 
needs assistance in transposing that regime into its legal system.  The system of taxes on trade 
comprises several duties and taxes on exports and/ or imports.  The CAEMC Customs Code has not 
been incorporated in Chadian laws and regulations, pa rticularly in the area of customs valuation;  and 
the procedures for appealing against customs decisions provided for under the CAEMC Customs 
Code are not applied in Chad (Chapter III(2)). 
6. WTO technical assistance could also be helpful in the following areas:  (i) alignment of the 
customs tariff with the CAEMC's CET;  (ii) assessment of the budgetary and economic impact 
(including the impact on trade) of other import duties and taxes;  and (iii) identification of the required 
duty and tax reforms.  At the CAEMC level, the WTO could also provide technical assistance in 
                                                      
1 Consulted at: http://www.integratedframework.org. 
2 Ministry of Commerce (2006). 
3 For further information concerning technical assistance activities in Chad, see "WTO, Doha 
Development Agenda, Trade Capacity-Building Database, Chad".  Consulted at:  http://tcbdb.wto.org/ben_ country.asp?ctry=24&maxyear=2006&lang=ENG. WT/TPR/S/174 Trade Policy Review 
Page 24 
 
 
introducing a single entry point in order to redu ce the numerous levies and procedures impeding trade 
flows.  Reduced taxation should help to control sm uggling and hence to curtail the informal sector. 
7. The reform of import and export procedures s hould be another of Chad's trade-related 
technical assistance priorities, since this is an e ssential component of trade facilitation, particularly 
when it comes to food crops on which the popula tion generally depends.  From the regulatory 
standpoint, the IMF has already conducted a detail ed study of the simplification and proper and 
efficient application of customs procedures, the chief conclusions of which have not yet been 
implemented.4  The main problems include the lack of e ffective supervision of the different customs 
offices, which tend to be managed autonomously and informally, and the numerous official or 
unofficial levies that this entails.  In order to f acilitate the reform of customs procedures, technical 
assistance would need to be provided for the trai ning of customs officials and agents, and their 
remuneration improved. 
8. Chad also has a need for tec hnical assistance in reforming and ensuring the proper application 
of its investment regime, i.e. in developing a na tional investment regime.  Better training of persons 
concerned by investment legislation is needed to ensure compliance with the WTO Agreement on 
Trade-Related Investment Measures. 
9. In connection with the negotiations on trade in  services, technical assistance is needed in 
determining how to structure and formulate specifi c commitments.  This training would concern not 
only the negotiators, but also Ministry officials re sponsible for policy formulation in the services area, 
with a view to identifying how sectoral reforms co uld translate into concrete commitments at the 
multilateral level.  It could also include the main private operators in the services subsectors, such as 
telecommunications, transportation, postal services, professional services and tourism. 
10. Another priority area in connection with the implementation of multila teral obligations is 
sanitary and phytosanitary (SPS) measures and technical  regulations.  Chad stands to gain building up 
its capacity in this respect in order to bring its SPS/TBT regime into line with WTO provisions.  
Above all, Chad needs a national framework for st andardization and a quality control system that 
would help it to gain access for its exports to re gional and international markets and enable it to 
control the quality of its imports.  Technical assistan ce could help in this respect.  Chad has yet to 
notify its intellectual property legislation, and to  harmonize its domestic copyright and neighbouring 
rights regime with the relevant provisions of the TR IPS Agreement.  Assistance could be provided to 
that end. 
11. Chad has not complied with most of its WTO notification obligations.  Consequently, other 
WTO Members are relatively unfamiliar with its trad e policy.  Appropriate technical assistance could 
help Chad to fulfil these obligations.   
(3) INTEGRATION OF TRADE IN DEVELOPMENT STRATEGIES  
12. Chad is currently at a turning point in its ec onomic development:  it is faced with the major 
challenge of ensuring that its entire population sh ares the benefits of its oil revenue.  By taking 
account of the main conclusions of this TPR report in its development and poverty reduction 
strategies, and with the help of targeted and sustai ned technical assistance in the different trade policy 
areas, Chad should be able to take up this chal lenge by using its oil revenue to finance the 
diversification of its economy. 
                                                      
4 IMF (2003).