WT/TPR/S/250 Trade Policy Review 
Page 12 
  
  II. TRADE AND INVESTMENT REGIMES 
(1) GENERAL FRAMEWORK  
1. Between 2002 (the date of its previous TPR)1 and 2009, Mauritania went through several 
major political crises, including two coups d'état;  and the weak development of external trade and 
foreign investment during the period is partly explained by this political instability.  Since 2009, 
however, new prospects and progress in the mining sector have encouraged foreign investors and development partners to return. 
2. Mauritania adopted its first Constitution on 20 May 1961, establishing a presidential system 
with separation of powers;  but in 1964 all existing political parties were replaced by a single party, 
and the Constitution was altered in 1965 partly to  institutionalize this.  A succession of military 
regimes held power until 1991, when the military G overnment proclaimed the Constitution that is 
currently in force.  The head of the military Gove rnment was elected president in 1992 and re-elected 
in 1997 and again in 2003. 
3. Following a second coup d'état in August 2005, a transition Government was put in place 
with the stated objective of organizing democratic  elections.  A referendum held in June 2006, 
approved constitutional amendments which, for ex ample, restrict the number of consecutive 
presidential terms to two (lasting five years each);   introduce a 75-year age limit of for the President 
of the Republic;  reduce the President's capacity to govern by decree;  and strengthen the powers of 
Parliament.  This transition process culminat ed in presidential elections held on 11 and 
25 March 2007, which marked the r estoration of constitutional order. 
4. In August 2008, however, the country suffered a nother military coup.  This was followed by 
several months of political crisis, until the ruli ng military junta and the opposition signed the 
Dakar Accord in July 2009, and new elections confirmed the current president in his post. 
5. According to the 1991 Constitutio n, as amended in June 2006
2, the Mauritanian political 
system consists of an executive power, vested in  the President of the Republic, and a Government 
appointed by him;  a legislative power, exerci sed by the Parliament, which is composed of 
two chambers;  a judicial power;  and advisory in stitutions such as the Higher Islamic Council and the 
Economic and Social Council.  The Constitution estab lishes the primacy of the Executive, headed by 
the President of the Republic (necessarily a Muslim),  who is Head of State and responsible for seeing 
that the Constitution is observed.  The President formulates and conducts Mauritania's foreign policy, 
as well as defence and security policy;  and he appoint s the Prime Minister and Government ministers.  
He also promulgates laws, signs and ratifies treaties,  and holds a statutory powe r that can be delegated 
to the Prime Minister.  The latter defines Government policy under the authority of the Head of State. 
6. Parliament consists of a lower chamber (the National Assembly) of 79 seats, and an upper 
chamber (the Senate) of 56 seats.  Deputies are elec ted to the National Assembly by direct suffrage 
for five-year terms, while senators are elected indi rectly (by municipal councillors) for six years.  
One third of the senators are renewed every two years.  Sessions of the National Assembly and the 
Senate are open, and the minutes of their meetings are, in principle, accessible to the public.  The most recent parliamentary elections were held in 2007.  According to the law, new elections must 
be held after five years, in other words in 2012. 
                                                      
1 WTO (2002). 
2 The Constitution can be viewed at the official website of the National Assembly:  
http://www.assembleenationale.mr;  and http://www.portailnational.gov.mr/. Mauritania WT/TPR/S/250 
 Page 13 
 
 
  7. The Government and members of Parliament are responsible for proposing legislation.  
The deputies and senators have the right to am end the corresponding texts.  The President may 
dissolve the National Assembly and also has the power to bring a motion of censure or call a 
confidence vote in order to compel the Government to resign.  Draft legislation must be passed by 
both chambers.  In order to implement its prog ramme, the Government may request authorization 
from Parliament to order measures that should norma lly be in the form of laws, but these may only 
remain in effect for a limited period of time.  Such  measures enter into effect as of their publication, 
but become void if the draft law for their ratification is not tabled in Parliament before the date set by 
the enabling law. 
8. From a hierarchical point of view, in domes tic legislation, the Constitution is followed by 
laws, decrees, orders and circulars.  Ordinances have  been used in times of political emergency, when 
the Assembly was no longer sitting.  All laws and regulations are, in principle, published in the 
Official Journal, although in practice, some seconda ry legislative texts are not.  The Official Journal 
has a website but it does not contain texts later than 1999.3 
9. Under Article 78 of the Constitution, trade trea ties and treaties or agreements concerning 
international organizations (including the Agreem ent establishing the WTO);  treaties or agreements 
involving government finances;  and treaties modifyi ng provisions of a legislative nature all require 
ratification through a law and take effect only once they have been ratified or approved.  
The Agreement establishing the WTO was appr oved and ratified by Law No. 075/95 of 
13 January 1995.  Regularly ratified or approve d treaties and agreements have primacy over 
Mauritanian laws as soon as they have been publishe d, subject to application by the other party. 
10. As is the case in all other domains, trade-policy le gislation is introduced by law, by decree, or 
by order of the Ministry concerned.  For th e socio-political reasons mentioned above, few new 
regulatory texts on African foreign trade have been adopted since Mauritania's first TPR in 2002 (Table II.1). 
Table II.1 
African laws and regulations on trade and investment 
Legislation Sector Official Internet site (or other if not 
available) 
 Imports and exports  
Law No. 66-145 
(updated 1985) Customs Code http://www.droit-Afrique.com 
Decree No. 84-052 
(updated 2006) The customs agent profession  n.a. 
Interministerial Order 
No. R339 Implementing 
Decree No. 108/94  System for preshipment inspection of imports n.a. 
Decree No. 98-072 General regulations govern ing imports of plant material  n.a. 
Decree No. 93-024  Marketing and export of fisheries products subject to the 
landing requirement n.a. 
Decree No. 65-087 Import and export regulations  for animals and animal products n.a. 
Decree No. 69-132 Health authority regulations n.a. 
Order No. 81-206 Cattle and fresh meat export regulations n.a. 
Decree No. 75-111 Regulations governi ng transhumance and the export of 
animals and animal products n.a. 
Law No. 042-2000  Protection of plants and plant products n.a. 
Order No. 1256 Import and export regulati ons for plants and plant products n.a.
                                                      
3 Online information.  Viewed at:  http://www.maur itania.mr/legislation/index.php?service=3&id=26. WT/TPR/S/250 Trade Policy Review 
Page 14 
  
  Legislation Sector Official Internet site (or other if not 
available) 
Ordinance No. 82-178 Import reference prices n.a.
Ordinance No. 80-020 Mandatory goods or cargo insurance at importation n.a.
Decree No. 80-120 
 Implementation of Ordinance No. 80.020 of 25 January 1980 
introducing mandatory goods or cargo insurance at 
importation n.a.
Law No. 97-008  Tax and customs regime  applicable to government projects 
with external financing n.a.
Law No. 2001-053  Ratification of Ordinance No. 2001/05 of 26 June 2001 on 
Supplementary Agreement No. 1 signed on 19 June 2001 by 
the Islamic Republic of Mauritania and the National Industrial and Mining Company (SNIM) n.a.
 Production and trade  
Law No. 2000-05  Commercial Code http://www.droit-afrique.com/ 
Law No. 2000-06  Arbitration Code http://www.justice.gov.mr/ 
Law No. 2001-18  Regulatory Authority http://www.are.mr/ 
Law No. 2001-31 Code of Obligations and Contracts http://www.investinmauritania.gov.mr/ 
Law No. 2004-017  Labour Code http://www.ilo.org/ 
Law No. 2008-011 Mining Code http://www.mines.gov.mr/ 
Decree No. 2008-158  Mining taxes and royalties http://www.mines.gov.mr/ 
Law No. 2000-025  Marine Fisheries Code http://www.peches.gov.mr/ 
Decree No. 2002-073 General Regulations  implementing the Fisheries Code n.a. 
Ordinance No. 88-151  Legal and tax regime  applicable to the exploration and 
exploitation of hydrocarbons http://www.petrole.gov.mr/ 
Order No. 247 of 
10 March 2002 Maximum sales price of liquid hydrocarbons n.a.
Ordinance No. 91-09 Pricing freedom and competition  n.a.
 Internal taxation n.a.
Ordinance No. 82-060 
(Updated 2005)  General Tax Code n.a.
Law No. 94-010 General amendment to the General Tax Code introducing 
VAT n.a.
Finance Law  Finance Law and State Budge t Only the finance laws for 2006 and 2007 
are available (www.droit-afrique.com) 
Law No. 2001-053  Ratification of Ordinance No. 2001/05 of 26 June 2001 on 
Supplementary Agreement No. 1 signed on 19 June 2001 by 
the Islamic Republic of Mauritania and the SNIM n.a. 
Law No. 97-008 
(amended in 2006) Tax and customs regime appli cable to government projects 
with external financing http://www. droit-afrique.com 
 Investment  
Law No. 03-2002 Investment Code  http://www.maghrebarabe.org/admin_ 
files/code-investissements.pdf 
 Government procurement  
Decree No. 2002-08  Government Procurem ent Code http://www.droit-afrique.com 
Order No. R-540 of 
15 May 2002 Thresholds for the award, monitoring and approval of 
government procurement contracts and limits on the 
competence of procurement boards http://www.ccm.mr/Arrete.htm 
n.a. Not available. 
Source : WTO Secretariat, on the basis of information provided by the Mauritanian authorities. 
11. The Court of Audit undertakes verification, information and advisory activities to help 
safeguard the State's finances and improve management methods and techniques.4  For transparency 
purposes, the Government should submit to Par liament the annual Budget Execution Law based on 
                                                      
4 The annual reports for 2006 and 2005 (the first to be made public) are available on the website of the 
Court of Audit.  Viewed at:  http://www.cdcmr.mr. Mauritania WT/TPR/S/250 
 Page 15 
 
 
  verification by the Court of Audit of monies sp ent.  The new budget law cannot be voted before 
Parliament has approved the Budget Execution Law, i. e. verification of the previous year's budget.  
The Budget Execution Law was supposed to be published systematically as from the 2007 budget 
year, but the reports issued by the Court of Audit have never been followed up. 
12. The State Inspectorate-General (IGE), which reports directly to the Prime Minister, was 
created in 2005 and has an overall mandate to c ontrol and supervise the management of public 
administration in order to prevent the misappropriation of public funds.5  Unlike the Court of Audit, 
the IGE may negotiate with suspects before sending a case to court.  Its website does not contain any 
reports published since its creation. 
13. The Mauritanian judicial system has a two-tiered hierarchy:  courts of first instance (civil, 
commercial, administrative, penal and juvenile cour ts);  Moughataa courts (specializing in civil and 
commercial cases where the amount involved does not exceed UM 300,000);  and courts of appeal.  
Two commercial courts have also been set up since 2007.  Mauritania's highest judicial authority, the Supreme Court, consists of four chambers with special  jurisdiction:  administrative;  civil;  social;  
and penal.  Mauritania is not a member of the Or ganization for the Harmonization of Business Law in 
Africa (OHADA).  According to a 2005 interministeri al report cited by the World Bank, corruption in 
the judiciary system was widespread, Mauritania's courts being described as some of the country's 
most corrupt institutions.
6  Corruption appears to be encourag ed by a widespread sense of impunity, 
which taints the business climate.  In 2010, Tr ansparency International ranked Mauritania 143rd out of 
178 countries on its corruption perceptions index7, compared to 84th out of 163 in 2006. 
14. Primary responsibility for framing and implementing trade policy lies with the Ministry of 
Trade, Crafts and Tourism (MCAT).  This ministry appears to be largely bereft of resources, and suffers from poor communications not only with other ministries, but also with development partners.  
Thus, Mauritania is behind schedule on most Aid-for-Tr ade projects (Chapter II(4)).  The Ministry of 
Finance defines tariff and tax policy, including in re lation to customs.  It has been unable to provide 
the finance laws and chart of government financia l operations to the WTO Secretariat, nor are these 
available on its website.  Other ministries also part icipate in trade policy:  the Ministry of Economic 
Affairs and Development (MAED), and those responsible for agriculture, fisheries, and mining.  
The Central Bank of Mauritania (BCM) also plays a key role in this area. 
15. A number of private organizations are directly  or indirectly involved in foreign trade 
activities, export promotion, and/or private-sector support.  These include the Chamber of Commerce, 
Industry and Agriculture;  and the National Employers Union of Mauritania, which encompasses the 
National Federations of Fisheries;  Banks, Touris m and Services;  Industry and Mining (FIM);  
Agriculture and Livestock;  Trade;  and Transport. 
                                                      
5 Online information.  Viewed at:  http://www.ma uritania.mr/fr/ige.php?coderub=4&codesousrub=8. 
6 World Bank (2008). 
7 Online information from Transparency International.  Viewed at:  
http://www.transparency.org/policy_resear ch/surveys_indices /cpi/2010/results. WT/TPR/S/250 Trade Policy Review 
Page 16 
  
  (2) TRADE AGREEMENTS AND ARRANGEMENTS  
(i) World Trade Organization 
16. Mauritania is one of the original WTO Member s and grants at least most-favoured-nation 
(MFN) treatment to all its trading partners.8  The WTO Agreement forms the basis for all Mauritania's 
trading relations;  and all of its trade is undertaken on a MFN basis.  Mauritania is, in fact, one of the 
very few WTO members not to maintain reciprocal  preferential trading relations with any other 
country. 
17. As a treaty, the Marrakesh Agreement Estab lishing the WTO is binding for Mauritania under 
current legislation:  WTO rules and obligations may be invoked in all re levant cases before the 
Mauritanian courts, although no such case has arisen so far.  Mauritania is neither a signatory to, nor 
an observer in, the plurilateral agreements (Agreeme nts on Trade in Civil Aircraft and Government 
Procurement). 
18. Mauritania submitted a schedule of tariff c oncessions on goods during the Uruguay Round 
(Chapter III(2)(ii)(f)).  The WTO Consolidated Tariff Schedule (CTS) database contains the bound 
tariff rates in the HS2002 nomenclature, grouping th e commitments undertaken in the Uruguay Round 
with those of 1947 and then the Annecy and Torqua y Rounds.  In order to bring the CTS database up 
to date, the Secretariat transposed Mauritania's unde rtakings to the HS2002 nomenclature.  As part of 
this exercise, the Secretariat prepared Mauritania' s transposition file and sent it to the Mauritanian 
Mission to the WTO on 7 December 2007.  This file was approved by the other Members on 16 October 2008, and should be certified. 
19. Mauritania has not been involved in any case unde r the WTO dispute settle ment mechanism.  
As a developing country, it was gi ven a transition period to implem ent several of its commitments 
under various WTO Agreements.  As regards the Agreement on Customs Valuation, Mauritania was 
granted a waiver of its obligations  until 31 May 2002 (Chapter III(2)). 
20. There has been very little participation by Maur itania in WTO activities.  It has not submitted 
any notification to the WTO since April 2002, except for an enquiry point, nor has it as yet fulfilled its 
obligations with respect to most of the annual notifications to be submitted under the 
WTO Agreements.  Delays in this respect seemed  to be partly due to a lack of communication 
between officials responsible for producing them in the different ministries involved.  The most recent 
technical assistance activity provided by the WT O on notifications took place in June 2006 in 
Nouakchott. 
21. In general, Mauritania has only sporadically availed itself of WTO technical assistance and 
takes little part in the Integrated Framework (Cha pter II(4)).  Many invitations to attend technical 
assistance seminars have gone unanswered.  There ar e not many WTO enquiry points in Mauritania.  
The main ones are the WTO Reference Centre in the Ministry of Trade;  the Information Centre for 
the private sector within the Chamber of Commerce;  and the Reference Centre at 
Nouakchott University.  According to the author ities, the WTO Reference Centre and its library, 
installed by the WTO on MCIAT premises in 1998 a nd upgraded in 2007, are no longer functioning.  
The same is true of the computer equipment locat ed at the university, which has steadily become 
obsolete.  Only the equipment in the Chamber of Commerce seems to be working.  The latter 
circulates documentation received regularly from th e WTO, the International Chamber of Commerce 
                                                      
8 Mauritania became a Contracting Party to the GATT on 30 September 1963, under the provisions of 
Article XXVI:5(c) and through the succession of States process. Mauritania WT/TPR/S/250 
 Page 17 
 
 
  (ICC) and the United Nations Conference on Trade and Development (UNCTAD).  It charges fees for 
its services, however. 
(ii) Regional agreements 
22. Mauritania was a member of the Economic Community of West African States (ECOWAS) 
until December 1999, but then withdrew.  Accordi ng to Mauritanian economic  operators in various 
sectors, the consequence of that decision was to r estrict their access to the markets of Senegal and 
Mali as a result of a 5 to 20 per cent hike in  customs duties on most Mauritanian exports.  
Mauritania's pelagic fish products, which used to enjoy duty-free access to the other ECOWAS 
markets, have also been penalized. 
(a) Arab Maghreb Union (AMU) 
23. Mauritania is a founding member of the Arab Maghreb Union (AMU), established on 
17 February 1989 at a meeting in Marrakesh of the Heads of State of Algeria, Libya, Mauritania, 
Morocco and Tunisia.  The objectives of the Union are the free movement of goods and persons and a 
revision of customs regulations with a view to th e establishment of a free-trade zone.  Nonetheless, 
the AMU is not operational in practice, and it does not  give rise to any trade preferences either in 
favour of, or granted by, Mauritania.  The AMU' s share of Mauritanian trade is very small 
(about 0.2 per cent of exports and 2.3 per cent of imports in 2008, including oil products).  Political 
discord between certain AMU countries continues to block the integration process. 
24. Some 20 conventions and agreem ents have nevertheless been signed to date within the 
framework of the Union, of which 17 have been ratified by Mauritania.  These include:  the Treaty 
establishing the Arab Maghreb Union;  an agreem ent on trade in agricultural products among 
AMU countries;  an agreement on investment promotion and guarantees;  an agreement on 
phytosanitary standards;  an agreement on avoi dance of double taxation and modalities of cooperation 
in fiscal matters;  a convention establishing a Maghreb investment and foreign trade bank;  a trade and tariff convention and annexes;  a convention on maritime c ooperation;  a convention on the 
organization of government procurement in the infra structure and public works sector;  an agreement 
on the establishment of a Maghreb insurance and rein surance committee (Chapter IV(8));  a protocol 
on certificates of origin;  and a convention on mutu al administrative cooperation for the prevention, 
investigation, and repression of customs offences.  None of these conventions is currently being 
implemented. 
(b) Pan-Arab Free Trade Area 
25. Pursuant to the Declaration of February 19 97 of the Economic and Social Council of the 
League of Arab States, in July 1998, Mauritani a ratified the Agreement to Facilitate and Develop 
Trade Among Arab Countries (including the AMU member  countries).  The aim of this agreement is 
to create a pan-Arab free trade area within a period of ten years starting on 1 January 1998.  Mauritania has not yet take any steps to grant trade preferences (tariff or otherwise) under this 
agreement. 
(c) Bilateral trade agreements 
26. Mauritania has concluded several trade agreem ents with countries such as Algeria (1997), 
Gambia (2001), Morocco (1998) and Tunisia (1964).  Th e annexes to these agreements contain lists of 
products benefiting from tariff con cessions, which are not applied. WT/TPR/S/250 Trade Policy Review 
Page 18 
  
  (iii) Relations with the European Union 
27. Mauritania is one of the 79 African, Caribbean  and Pacific (ACP) countries with which the 
European Union signed an agreement on 23 June 2000 at Cotonou (Benin)9, to replace the 
Lomé Convention.  The Cotonou Agreement covers  the period to 2020, and its trade provisions 
constitute one of the mechanisms for cooperati on between ACP countries and the EU.  The latter 
granted duty-free admission for non-agricultural prod ucts and most agricultural products originating 
in 78 ACP countries (excluding South Africa) on a non-reciprocal basis up to 31 December 2007.10  
Since 2008, Mauritania has benefited from the EU's "Everything but Arms" initiative, which grants 
duty-free entry for all products from least developed countries (LDCs) except for arms and 
ammunition. 
28. The Cotonou Agreement provides for the nego tiation of regional economic partnership 
agreements (EPAs) due to take over from the trade provisions set out in the Agreement as from 1 January 2008.  Mauritania is part of the "West  Africa" group in the regional EPA negotiations.  
EPA negotiations with West Africa are still under way.
11 
(iv) Relations with the United States of America 
29. Mauritania is one of the countries eligible for the programme set up by the United States 
under the African Growth and Opportunity Act (AGOA).12  Beneficiary countries are granted 
duty-and quota-free access to the US market un til 2015 for a range of goods, including selected 
agricultural and textile products.  Nonetheless, th e bulk of Mauritanian exports to the United States 
(worth about US$53 million in 2010) consists of crude oil products (HS Chapter 27), which benefited 
mainly from the Generalized System of Preferences (GSP) in 2008 and 2009.  In 2010, the AGOA 
provisions were invoked for half of these exports, wh ile the other half enters United States under the 
MFN regime (Table II.2). 
Table II.2 
United States imports from Mauritania, by tariff regime, 2008-2010 
(US$ thousand)  
Regimes 2008 2009 2010 
MFN 1,872 593 26,468 
AGOA (excluding GSP) 0 n.a. 26,396 
GSP 44,402 34,160 0 
Total 46,275 34,753 52,864 
n.a. Not available. 
Source : US International Trade Commission.  
                                                      
9 Online information on the Coto nou Agreement.  Viewed at:  
http://europa.eu/legislation_summaries/development/a frican_caribbean_pacific_states/r12101_fr.htm. 
10 WTO Members had granted the EU a waiver from its obligations under Article I:1 of the 
GATT 1994 (on MFN treatment) for the period extendi ng from 1 March 2000 to 31 December 2007 
(WTO document WT/MIN(01)/15, of 14 November 2001). 
11 Online information.  Viewed at:  http://www.acp-eu-trade.org;  and 
http://ec.europa.eu/trade/wider-agenda/ development/economic-partnerships/. 
12 AGOA online information.  Viewed at:  http://agoa.gov. Mauritania WT/TPR/S/250 
 Page 19 
 
 
  (v) Generalized System of Preferences 
30. Mauritania benefits from the Generalized System  of Preferences offered by industrialized 
countries.  Japan ranks first since it allows Mauritani a to export octopus (one of the country's main 
exports) at a zero rate of duty. 
(3) INVESTMENT REGIME  
31. Private investment in Mauritania, whether domestic or foreign, is governed in principle by the 
Investment Code.  In practice, however, most large-scale investments, particularly in the mining sector, appear to be implemente d through conventions that lie out side the scope of the Code's 
provisions, particularly those regarding transparency and review. 
(i) Recent developments 
32. Since 2002, when the Investment Code was pub lished, the authorities' stated objective has 
been to attract and promote foreign direct inv estment (FDI) to stimulate the country's economic 
growth and development.  An Investment Guid e to Mauritania, published jointly by UNCTAD and 
the ICC in 2004, considered that the economy's recen t liberalization, vigorously expanding investment 
sectors, and its strategic geographic situation we re three good reasons to invest in Mauritania.
13 
33. Although the exploitation of mining deposits si nce 2006 has resulted in a vigorous increase in 
FDI flows to Mauritania (previously weak by region al standards), the available statistics show that 
these flows are still very small outside the mining sect or (Chapter I(3)(iv)).  They have basically 
accompanied the liberalization of the telecommunications sector, specifically with the involvement of the Tunisian telecommunications operator, Tunisie Télécom, and investment by Tunis Air in the new 
private airline Mauritania Airways (Chapter IV(8)). 
34. Government entities responsible for promoting i nvestment (both domestic and foreign) have 
undergone many changes since the previous TPR in 2002.  The Private Investment Promotion 
Department (DGPIP) has been replaced by the Investment Promotion Commission (CPI)
14 , within the 
Office of the President of Republic.  It had been e xpected that the relevant services would be attached 
to the Ministry of Economic Affairs.  The distri bution of tasks between the different bodies does not 
seem to be clear, nor is the role to be played by  the ministries responsible for the sectors receiving the 
investments (mining or fisheries, for example).  Although this lack of institutional stability has probably not had an impact on major investments, pa rticularly in the mining sector, it is also unlikely 
to encourage the implementation of structures to facilitate private investment in general. 
(ii) Investment Code 
35. The Investment Code, enacted on 20 January 2002
15 is premised on the principle of national 
treatment.  It defines the concept of direct investment  (Article 1) as contribu tions in kind, labour and 
capital that investors undertake, whether individua ls or legal entities, "regardless of nationality, 
                                                      
13 United Nations Conference on Trade and Deve lopment - International Chamber of Commerce 
(UNCTAD-ICC, 2004). 
14 CPI information online.  Viewed at:  http://www.investinmauritania.gov.mr/home.php?article8. 
15 Law No. 2002-03 of 20 January 2002 establishing the Investment Code, Official Journal of the 
Islamic Republic of Mauritania (2002), No. 1020, April, Nouakchott.  Viewed at:  
http://www.justice.gov.mr/NR/rdonlyres/D5FD2187-2D48-4360-967922C886437CCE/0/Codedesinvestissemen
tFR.pdf.ntFR.pdf. WT/TPR/S/250 Trade Policy Review 
Page 20 
  
  residence, or scale of the investment or enterprise".  The benefits specified in the Code are applicable 
to all sectors of the economy except purchase for re sale on the local market;  activities governed by 
current legislation on banking regul ations (except for leasing activities);  insurance and reinsurance 
activities;  and activities in the mining and hydr ocarbons sectors, which are governed by special 
legislation.  All sectors of the economy are open to  foreign investors, and there are no restrictions on 
foreign shareholding, except for a few reserved se ctors (certain postal services, for example). 
36. The Code lists the basic principles applicable  to all forms of investment:  freedom of 
establishment and investment;  equal treatment of fore ign and national investors;  freedom of recourse 
to either national or international arbitration (at the foreign investor's choice) for the settlement of 
disputes;  freedom to transfer capital and income;  and compensation in the event of expropriation, 
nationalization or requisition. 
37. Article 5 of the Code guarantees the transfer of  capital in convertible foreign exchange to 
individuals and legal entities that have made an inv estment financed by foreign capital (in other words 
funds raised outside Mauritania), irrespective of  the investor's nationality.  According to the 
UNCTAD review of Mauritania's investment policy published in 2009, certain capital transfers, such 
as profits other than dividends, or repayments of principal on a loan contracted abroad, are not 
guaranteed by the Code.16  Article 6.1 introduces a reciprocity clause that seems to contradict the 
national treatment proclaimed in Article 6.2. 
38. The tax and customs privileges envisaged by the Code are reserved for direct or indirect 
exporting enterprises established as free points (Articl es 8-10, Chapter III(3)).  Such points may also 
more easily hire foreign workers.  In practice, a bout half a dozen free points operate on a regular basis 
(Chapter III(3)(iii)), although none of the processed -fish exporting enterprises (the country's main 
manufacturing activity, Chapter IV(3)) seem s to have been set up in this way. 
39. The procedure for investing and taking advantage of the provisions of the Code (Article 12) 
involves filing a declaration.  Although this is not a requirement for an investor to be able to set up business in Mauritania, it is obligator y if the investor (whether domestic or foreign) wishes to take 
advantage of the Code's privileges.  However, as noted above, the only benefits provided by the Code 
are incentives to export en terprises.  Investors are required to declare all of their activities and 
expenses;  and they have to complete their invest ment programme within three years counted from the 
date of notification of the investment certificate.  It has not been possible to obtain statistics on the 
investments declared under the Investment Code. 
40. The Code states that the declaration must be  made through a single window responsible for 
receiving, providing guidance and information, and assisting investors.  This facility should handle 
investors' applications, issue the documents or titl es they need to avail themselves of privileges and 
follow up on the realization of the investments in  conjunction with the ministerial departments 
concerned.  In practice, however, the single window has still not been put into operation. 
41. Under the Code, foreign individuals or legal entities have access to the courts under exactly 
the same conditions as Mauritanian natural or lega l persons (Article 6.4).  Disputes stemming from 
interpretation or application of the Investment Code  are settled by arbitration or conciliation or by the 
competent Mauritanian courts (Article 7).  The Ar bitration Code of 2000 enables the State and other 
                                                      
16 UNCTAD (2009). Mauritania WT/TPR/S/250 
 Page 21 
 
 
  public entities to reach agreement on disputes aris ing from international economic, commercial, or 
financial relations.17 
42. A dispute between a foreign natural or legal person and the Islamic Republic of Mauritania, 
can also be settled by arbitration or conciliation unde r any of the following mechanisms:  (i) bilateral 
agreements or treaties;  (ii) the International Ce ntre for Settlement of Investment Disputes (ICSID), 
established by the 1965 Convention on the Settlement  of Investment Disputes between States and 
Nationals of Other States;  or (iii) an ad hoc tr ibunal constituted in conformity with the arbitration 
rules of the United Nations Commission on International Trade Law (UNCITRAL).18 
43. Mauritania is also a member of the Multilate ral Investment Guarantee Agency (MIGA), 
which insures foreign direct investment against political risks.  In particular, MIGA insured the 
investment of US$70 million by Tunisie Telecom (Chapter IV(8)(ii)), providing 15-year cover on 
risks of restrictions being placed on capital transfer s, expropriation, and military or civil conflicts.19 
(iii) Other factors affecting investments 
(a) Tax legislation 
44. The basic legislation governing tax policy cons ists of the General Tax Code of 1982, as 
amended, and Law No. 94-010 of 1994 introducin g VAT, as amended by subsequent finance laws.  
The relevant texts are not available on an official Mauritanian website.  Recent  finance laws were not 
available for the preparation of this report. 
45. Tax liabilities are assessed on the basis of the nature  of the income in question rather than the 
legal status of the taxpayer (private person or legal entity).  The tax on industrial and commercial 
profits (BIC) is set at 25 per cent;  and the tax on non-commercial profits is charged on income from 
non-commercial professions or activities at a 35 per cent rate, which implies a relatively high tax burden.  Moreover, individuals and legal entities lia ble for taxation on actual earnings are subject to a 
minimum flat-rate tax (IMF).  The rate of this ta x for the year in question is 2.5 per cent of the 
turnover for the previous financial year, with a minimum of UM 750,000 (about US$2,700).  The IMF 
is perceived as high despite a recent cut in the ra te from 4 per cent to 2.5 per cent.  Moreover, 
although it is fully deductible from the BIC levy, the fraction of the IMF in excess of the amount due 
is retained by the Treasury, ther eby increasing the tax burden because the IMF is still payable even 
when a taxpayer records losses.  Nonetheless, amounts paid in excess appear to be counted as credit 
towards subsequent payments.  The 2.5 per cent IMF is also payable on the customs value of imports 
(Chapter III(2)). 
(b) Labour legislation 
46. Labour productivity in Mauritania is low, wh ile wages (both the minimum and the average 
wage) are fairly high by regional standa rds.  According to the World Bank's Doing Business  indicator, 
the difficulty-of-hiring index is relatively high in Mauritania compared to the regional average, and 
employment conditions are in some respects rigi d.  Nonetheless, the difficulty-of-redundancy index 
ranks Mauritania 59
th out of 175 countries, which is quite satisfactory despite the almost systematic 
                                                      
17 Online information from the Official Journal.   Viewed at:  http://w ww.justice.gov.mr/NR/ 
rdonlyres/AC17EE6A-5B2F-4414-9C6E-92C55AD80685/0/CodeArbitrageFr.pdf. 
18 Online information from the United Nations Commission on International Trade Law.  Viewed at:  
http://www.uncitral.org. 
19 MIGA online information.  Viewed at:  h ttp://www.miga.org/projects/index_sv.cfm?pid=506. WT/TPR/S/250 Trade Policy Review 
Page 22 
  
  recourse to the courts, involving lengthy procedures that are perceived as arbitrary by employers.  
Doing Business  also shows that hiring or redundancy costs are moderate. 
47. The 2004 Labour Code applies to all workers em ployed by a public or private enterprise, 
whether Mauritanian or foreign.  The Code provide s for indefinite contracts (CDI) and fixed-term 
contracts (CDD).  CDDs can only be renewed once and last two years altogether.  Any CDD signed 
for a period longer than three months, or requir ing the worker to find accommodation away from 
home, must be approved by the Labour and Social S ecurity Inspectorate.  The continuation of services 
after a CDD has expired entitles the worker to a CDI contract.  Certain temporary or seasonal 
activities are exempt from these rules. 
48. Mauritania does not restrict the number of foreign employees (through quotas for example).  
The modalities for issuing a work permit are still set by a 1974 decree - an instrument which, 
according to UNCTAD, is obsolete and poorly adapte d to the new Code.  The decree provides for 
three types of work permit:  A, B and C.  The A-pe rmit is relevant to foreign investors because it does 
not require continuous residency or wage-ear ning or self-employed activity in Mauritania.  
This permit authorizes the holder to occupy a specifi c job in the employ a specific employer.  The fact 
that it cannot exceed two years but can be renewed one or more times imposes an administrative 
burden on both employers and employees and also  on the Government.  When an A-permit is 
renewed, the employer has to explain why it cannot hire a Mauritanian worker.  Moreover, for firms 
with over ten employees, authorization to hire a fo reign worker can only be given if a "progressive 
and rational plan to replace foreign workers with Ma uritanians" is previously presented and approved.  
This makes the process lengthy and complicated, and is  not in Mauritania's interest given the country's 
lack of skilled labour. 
49. The conditions for using the B- and C-permits  are more stringent, but information on the 
practical differences between them could not be obtai ned.  Applicants must have lived and worked in 
Mauritania for at least four years.  In the event of denial or cancellation of a work permit, the party concerned may appeal under the conditions specifi ed by the decree.  The decree does not, however, 
provide special provisions for granting permits to th e investors themselves;  and the Investment Code 
does not fill this gap. 
50. Moreover, the granting of a work permit and au thorization for residency are not linked, which 
makes the procedures even longer and more comp licated for investors.  The foreign-worker 
employment regime operates as follows:  the employer files work permit applications on a 
case-by-case basis, and must provide information such  as the description of the job in question and the 
justification for not hiring a national worker.  Th e relevant government agency then reviews the 
applications, which is generally a fa irly lengthy and costly procedure. 
(c) Legislation on land ow nership and tenure 
51. There is no legal provision preventing foreigners  from owning real estate in Mauritania.  Land 
ownership is governed by a 1983 Ordinance and by the Sharia.
20  In practice, the procedure for 
purchasing property is the same for nationals and for foreigners.  According to the Ordinance, State 
concessions on "large land areas" are only granted if the projected investment has a "significant 
economic and social impact".  Concessions, both rura l and urban, are first granted provisionally;  the 
definitive concession is granted at the request of the provisional concession-holder after a certain 
period and after completion of the property deve lopment programme.  According to UNCTAD, this 
                                                      
20 Ordinance No. 83-127 on the reorganization of land and State holdings and its Implementing Decree 
No. 2000-089. Mauritania WT/TPR/S/250 
 Page 23 
 
 
  system gives rise to multiple stakeholders.  It is still hard to obtain a definitive title, because the 
provisional title has to be obtained first. 
(d) Transparency and governance 
52. Governance problems have deep social roots in Mauritania and reflect decades of 
development based on rent seeking.21  Wealth has traditionally been redistributed on the basis of 
ethnic and tribal membership in the framework of th e Mauritanian social system.  For example, tribal 
chiefs were rewarded for their loyalty through government posts or jobs in key sectors of the 
economy, which gave them access to public funds to  benefit their constituents.  Access to these jobs 
was rotated, to widen the circle of beneficiaries of State resources and restrict defection to the 
opposition.  These practices have marked the coun try's political and administrative institutions, 
thereby weakening accountability mechanisms. 
53. Mauritania has taken steps to improve governance since 2005, for example by acceding to the 
Extractive Industries Transparency Initiative (EITI) (Chapter IV(4));  by adopting a Code of Ethics requiring a declaration of assets from public officials;   and a Law on the Assets of Senior Government 
Officials, together with a law criminalizi ng bonded labour.  Mauritania has not signed the 
OECD Convention on Combating Bribery of Forei gn Public Officials in International Business 
Transactions.
22 
(iv) International agreements 
54. Apparently most FDI, particularly in the mining sector, is undertaken through agreements 
signed between the Government and private inv estors.  There is no formal legal process for 
systematically reviewing such agreements in order to ensure that they will benefit the country's 
economy.  The result is a lack of transparency in  the criteria for approval and the precise content of 
the agreements, which entails th e risk of arbitrary decisions. 
55. Mauritania has signed several bilateral investme nt promotion and protection agreements with 
AMU countries (Algeria, Libya, Morocco, Tunisia);  the Belgium-Luxembourg Economic Union;  France and Romania;  Burkina Faso;  Cameroon;  Gambia;  Ghana;  Guinea;  and Mauritius.  
According to UNCTAD, most of these have not been ratified, and those that have been ratified have 
not been notified to the WTO Secretariat.  These ag reements contain very lit tle detail and basically 
stipulate fair and equitable treatment;  post-establishment national treatment;  MFN treatment;  protection against expropriation;  the right to repatr iate profits and the capital initially invested;  and 
recourse to international arbitration. 
56. Mauritania reports that it has also signed four  double taxation agreements, with Algeria;  
France (1967);  Senegal (1971);  and Tunisia (1986). 
(4) A
ID FOR TRADE  
(i) Integration of trade in development strategy 
57. Mauritania's first Poverty Reduction Strategy Paper (PRSP) was approved in December 2000 
for the period 2001-2004, with the main long- term objective of reducing poverty and social 
inequalities.  Four main themes were defined to ach ieve that objective:  (i) to speed up economic 
                                                      
21 World Bank (2008). 
22 OECD information online.  Viewed at:  http://www.oecd.org/dataoecd/11/35/13566279.pdf. WT/TPR/S/250 Trade Policy Review 
Page 24 
  
  growth;  (ii) to increase the productivity of the p oor;  (iii) to develop human resources and access to 
basic infrastructure;  and (iv) to strengthen ins titutions.  Although trade was not identified as one of 
the main factors driving economic growth, the matr ix of priority actions annexed to the PRSP 
contained measures to encourage export development,  particularly in the fisheries, mining, and 
tourism sectors. 
58. The second PRSP covered the period 2006-2010 with  the same long-term objective and the 
same four themes.  The role of trade and export development in growth a nd poverty reduction is now 
recognized more specifically, however, and the second  PRSP contains specific sections on petroleum, 
fisheries, mining, tourism and livestock breeding.  In addition, the PRSP II explicitly recognizes that 
infrastructure deficits, particularly in transport,  energy and telecommunications, are obstructing the 
development of Mauritania's trade.  Furthermore, several actions and reforms envisaged in the PRSP II are aimed at stimulating exports - par ticularly through tax incentives;  institutional 
strengthening;  the creation of export developmen t centres in key sectors;  and trade negotiation 
capacity building. 
59. So far, the WTO Secretariat has not receive d any document setting out  Mauritania's trade 
strategy.  A paper provided by the focal point of th e Enhanced Integrated Framework (EIF) refers to a 
strategy apparently established in 2007, but  the corresponding document is not available. 
(ii) Integrated framework 
(a) Support under the Integrated Framework 
60. Mauritania has benefited from the Integrated Fr amework.  In 2001 it conducted and then 
validated a Diagnostic Trade In tegration Study (DTIS), entitled Stratégie commerciale centrée sur la 
pauvreté  (Poverty-focused trade strategy) and ar ticulated around four horizontal themes:  
(i) diversifying exports;  (ii) improving the comp etitiveness of the economy;  (iii) facilitating trade 
through customs reform;  and (iv)  strengthening the institutions r esponsible for external trade.  
The study also identified the main constraints on th e growth of exports of fisheries and livestock 
products, and tourism.  It was validated in the Counc il of Ministers in 2002.  The DTIS also contains a 
plan of action with horizontal and sector-specific prio rities.  This plan of action and nine priority 
projects were presented at a roundtable in 2002 to raise the necessary financial resources.  
Four "Window II" projects were financed by the Integrated Framework Trust Fund (support for the 
Chamber of Commerce;  an export promotion projec t;  support for craft exports;  and a project to 
mobilize interest among DTIS stakeholders to implement the DTIS priorities). 
61. The DTIS has to some extent helped to integr ate trade in Mauritania's PRSP II.  Nonetheless, 
the inclusion of foreign trade in sector-specific strategies has not been very successful.  Moreover, 
implementation of the DTIS plan of action, incl uding the action matrix, was deficient and was not 
officially evaluated ex-post.  The main reasons fo r these problems seem to be a lack of interest on the 
part of both the Government and the private sec tor, and a lack of financing resulting from an 
ineffective communication strategy. 
(b) Support under the Enhanced Integrated Framework 
62. Thus far, Mauritania has not requested support under the Enhanced Integrated 
Framework (EIF).  The EIF focal point participated  in a regional workshop for West African countries 
in Bamako (Mali) in December 2010.  The follow-up  agreed upon during the workshop has not taken 
place, however, despite the proposals put forward by the WTO.  Similarly, no Mauritanian participant Mauritania WT/TPR/S/250 
 Page 25 
 
 
  attended the June 2011 workshop organized by the United Nations Industrial Development 
Organization (UNIDO) on harmonizing technical  standards and regulations (see below). 
(iii) Mauritania's Aid-for-Trade needs 
63. Mauritania did not respond to the OECD/WTO questionnaire on Aid for Trade (AFT) in 
2008 and 2011.  During the Brussels roundtable for Mauritania held in June  2010, none of the 
presentations made to the development partner comm unity referred explicitly to  trade development or 
Aid-for-Trade needs.  Yet the portfolio of prio rity projects for which financing was requested 
included projects in the tourism, fisheries and mini ng sectors, which could therefore be encompassed 
under AFT.  The portfolio also included projects in the energy, transport and telecommunications 
sectors, which are also generally covered by AFT. 
(iv) Aid for Trade for Mauritania 
64. Mauritania's development partners do not ye t seem to have established a mechanism for 
coordinating trade-related technical assistance or Aid for Trade generally. 
(a) Aid-for-Trade flows 
65. According to statistics obtained from the Aid Activity Database of the OECD Creditor 
Reporting System (CRS), AFT figures have been in significant since 2006.  While total development 
assistance has remained above US$150 million in te rms of commitments since 2002, Aid for Trade 
dropped from an annual average of US$118 milli on in 2002-2005 to US$19 million in 2009, and 
accounts for only 9 per cent of total assistance, possibl y owing - at least in part - to weak demand. 
66. In comparison to neighbouring countries, per capita amounts of AFT going to Mauritania 
have indeed been extremely low:  in 2007, Ma uritania received US$5.9 in AFT per capita, which is 
close to the levels prevailing in Senegal (US$6. 8), Guinea-Bissau (US$8.6) and Benin (US$7), but 
well below the amounts for Mali (US$45.2) Guinea (US$12.7), Liberia (US$22.2) and Sierra Leone (US$12.4). 
Table II.3 
Aid-for-Trade commitments for Mauritania, 2002-2005 and 2006-2009  
(US$ thousand) 
Activity 2002-2005a2006 2007 2008 2009 
Transport and storage  39,292 110,811  3,164  4,393 188 
Communications  346 38 2,169 44 81 
Energy  11,357  27,998  5,815  2,285 4,956 
Banking and financial services   2,106 77 9,409 982 923 
Agriculture  36,516 17,503 6,682 4,362 11,496 
Fisheries  12,266 5,630 1,032 26,686 33 
Industry  6,924  8,088 48 120 1,053 
Mineral and mining resources  8,431 4,675 73 130 n.a. 
Trade policies and regulation  606 780 1,474 204 459 
Tourism  337 2,234 n.a. 56 42 
Total Aid for Trade 118,252 177,838 29,903 39,474 19,378 
Total development assistance 212,523 385,809 156,825 148,945 221,242 
n.a. Not available. 
a Annual average. 
Source : Aid Activity Database of the OECD Creditor Reporting System.  WT/TPR/S/250 Trade Policy Review 
Page 26 
  
  (b) Mauritania's main Aid-for-Trade partners 
67. Mauritania's main AFT partners are the Worl d Bank, the African Development Bank (AfDB) 
and the European Union.  Aid provided by the World Bank is targeted on the mining sector, and on sustainable development and water supply.  A ssistance provided by the AfDB is focused on 
infrastructure projects such as irrigation, water manage ment and transport.  It has also supported the 
mining and fisheries sectors.  In its strategy docume nt pertaining to Mauritania, the AfDB states that 
for 2011-2015, its aid for trade will mainly be targ eted on the energy and transport sectors.  Since 
2008, Mauritania has also benefited from a re gional project to develop competitiveness and 
harmonize technical regulations, which is being fina nced by the European Union and implemented by 
UNIDO.  The project beneficiaries are member countries of the West African Economic and 
Monetary Union (WAEMU) and the Economic Comm unity of West African States (ECOWAS) and 
Mauritania.  The European Union is also providi ng support for transport infrastructure and rural 
development. 
(c) Technical assistance provided by the WTO 
68. Since its previous TPR in 2002 and up to the end of 2010, Mauritania had been invited to 
participate in close to 290 technical assistance activ ities identified by the WTO Institute for Training 
and Technical Cooperation, in Geneva, in the re gions (including an activity on the Integrated 
Framework) and through online training.  A total of 224 Mauritanian particip ants were involved in 
138 activities.  Some 20 national seminars and works hops were organized in Mauritania, including a 
briefing for a WTO Ministerial Conference;  a seminar on the WTO and the multilateral trading 
system for customs agents;  a seminar on trade in services;  a seminar on regional trade agreements;  
a seminar on WTO reference centres (of which two out of the three in Mauritania are not currently operating (see Chapter II(2)(i));  and a seminar to  prepare the meeting of the Consultative Group on 
Mauritania, sponsored by the World Bank, in 2007.  Mauritania hosted a regional seminar on the Joint 
Integrated Technical Assistance Program (JITAP) in 2005;  a regional course on dispute settlement in 
2006;  and a course on special and differential treatment  in 2007.  In terms of the number of activities 
and effective participation, Mauritania is within  the average range for countries in the region. 
69. Between 2008 and 2010, Mauritania benefited from an initiative of the Standards and Trade 
Development Facility (STDF) to improve fish expor ts from certain African countries (Benin, Gambia, 
Mauritania, Senegal and Sierra Leone).  The aim of  this initiative was to de velop public and private 
sector capacities so as to ensure that sanitary and phytosanitary constraints are understood and 
properly dealt with.  A database on technical regulati ons and trade was also set up under this project. 
70. Mauritania has filed a request for an evaluation of trade facilitation needs but has been unable 
to complete the project.  It has also been invite d to participate in a technical assistance project 
designed to enable capital-based experts to take pa rt in meetings of the Negotiating Group on Trade 
Facilitation, but so far no Maurita nian participant has attended.