WORLD TRADE  
ORGANIZATION  WT/TPR/M/174 
27 February 2007 
 
 (07-0820) 
Trade Policy Review Body  
  
 
TRADE POLICY REVIEW 
 
CHAD 
 
Minutes of the Meeting
 
 
Chairperson:  HE Mrs Claudia Uribe (Colombia) 
 
 
Page  
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3  
II. OPENING STATEMENT BY THE REPRESENTATIVE OF CHAD 4  
III. STATEMENT BY THE DISCUSSANT 5  
IV. STATEMENTS BY MEMBERS 8  
V. REPLIES BY THE REPRESENTATIVE OF CHAD AND 
 ADDITIONAL COMMENTS 12  
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 16  
 
  
 
     
 
    
 
    
__________________________________________________________________________________ 
Note:   Advance written questions by WTO Me mbers and the replies provided by Chad are 
reproduced in document WT/TPR/M/174/Ad d.1 and will be available online at 
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/174 
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  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The first Trade Policy Review of Chad was held on 22 and 24 January 2007.  The 
Chairperson, HE Mrs Claudia Uribe (Colombia), welcomed the delegation of Chad, headed by 
HE Mr Youssouf Abassalah, Minister of Trade and Handicrafts, and the discussant HE Mr Jean Feyder (Luxembourg).  As usual, the discussant would speak in his personal capacity and 
not as a representative of his country.  In accord ance with established procedures, he had made 
available in advance a broad outline of the them es he intended to raise (document WT/TPR/D/150). 
2. The Chairperson recalled the purpose of the Trad e Policy Review and the main elements of 
the procedure of the meeting.  The report of Chad was contained in document WT/TPR/G/174 and 
that of the WTO Secretariat in document WT/TPR/S/174.  As indicated in document 
WT/TPR/6/Rev.1, the Member under review should pr ovide written answers, by the beginning of the 
review meeting, to questions submitted by at least  two weeks before the meeting.  Questions posed 
subsequently should be answered, to the extent possi ble, before the start of the second session of the 
meeting.  Questions left unanswered at the end of the second session should be answered in writing no 
later than one month after the meeting. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance of the meeting and had been transmitte d to the delegation of Chad:  The European 
Communities;  the United States;  Turkey;  Japan;  and Canada.  Copies of these questions and answers provided by the delegation of Chad were available in the meeting room.  Colombia and 
Brazil had submitted written questions after the two- week deadline.  These questions had also been 
transmitted to the delegation of Chad;  copies ther eof and the answers provided by the delegation of 
Chad were available in the meeting room.  Copies of all advance questions, as well as the responses 
received from the delegation of Chad, are reproduced in document WT/TPR/M/174/Add.1. 
4. The Chairperson noted that the commencement of oil production, together with the high price 
of oil, had given Chad the opportunity of tackli ng some of its main challenges, including poverty 
reduction through the redistribution of economic grow th, and the diversification of the economy.  In 
addition to tariffs ranging up to 30 per cent, Chad applied various other import duties and charges, as 
well as a number of export taxes.  Customs proce dures remained long and complex, and Chad had 
encountered certain difficulties in meeting its multilateral commitments on, inter alia , customs 
valuation, TRIPS and notifications.  Members were keen to know the reforms envisaged by Chad to 
address these issues, in particular to reduce the number and level of import and export taxes and to 
modernize customs procedures so as to meet its WTO commitments and create a favourable business 
environment that would attract needed foreign investment and stimulate growth. WT/TPR/M/174 
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  II. OPENING STATEMENT BY THE REPRESENTATIVE OF CHAD 
5. The representative of Chad
 recalled that the process for his country's first Trade Policy 
Review had begun in March 2006.  WT O experts had visited Chad to gather information.  A first 
Secretariat Report was submitted, for comments, to the different ministerial departments concerned.  The government had also produced a general policy report.  These two reports were provisional, and 
contained a number of shortcomings which needed to be corrected. 
6. The report of Chad was divided into five part s:  overview (geographical location, political 
regime and population, and membership in interna tional, regional and subreg ional organizations);  
economic environment (economic s ituation and investment regime);  trade policy formulation and 
implementation framework (trade policy instrume nts, including technical assistance);  sectoral 
policies (future action to ensure socioeconomic de velopment in the areas of  agriculture, livestock, 
fisheries, the environment, trade, industry, crafts , transport, mining and energy, tourism, postal and 
telecommunication services and oil);  and recommendations and conclusions. 
7. Chad's socioeconomic development policy aimed to contribute significantly to the country's 
growth in order to achieve overall objectives, in par ticular its integration into the multilateral trading 
system.  Indeed, it could not longer afford to be le ft out of this system, and had shown good will in 
trying to make its trade policy more transparent.  However, these objectives could not be attained 
without support from the international community, including the WTO. 
8. The representative thanked the Members – i.e. the European Communities, the United States, 
Canada, Japan, Turkey and Colombia – for their meaningful comments and questions.  Chad appreciated their concerns.  In spite of all of its problems, Chad had done its utmost to pass its Trade 
Policy Review.  The representative thanked all of the Members, the other organizations and the 
development partners for their efforts to ensure the success of the Review.  WT/TPR/M/174 
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  III. STATEMENT BY THE DISCUSSANT 
9. After making a few welcoming remarks and expressing his thanks, the discussant  stressed, 
using a number of examples, that Chad was one of the poorest countries on earth.  Its trade policy needed to be adjusted radically in order to serve  the country's development;  hence the importance of 
its National Poverty Reduction Strate gy (NPRS), developed in 2003 a nd currently being revised.  He 
was keen to know the status of this revision and the main results achieved.  The Millennium 
Development Goals (MDG) needed to be at the heart of this NPRS.  It was therefore essential that all 
of Chad's vital forces should be brought to bear. 
(i) Economic environment 
10. The political and security situation in Chad w as highly unstable and even worrying.  The 
country had been seriously affected by the Darfu r crisis, and matters were complicated by domestic 
political tensions.  It was to be hoped that Chad w ould be able, with the help of the international 
community, to stabilize its political situation and to create the climate of confidence so essential to its 
development and its economy.  Dialogue and nationa l reconciliation could help in that respect.  
Growing desertification was another major challenge, and it was essential to keep an eye on the 
sustainable dimension of development. 
11. Oil exploitation, begun in 2003, had given the economy a new and significant impetus.  Major 
investments and an increase in the price of oil had ensured strong growth during the period 2001-2005.  Oil production had doubl ed real GDP between 2000 and 2005.  The discussant wondered 
how these resources could be placed at the service of development.   
(ii) Trade policy 
12. Chad had been a WTO Member since 1996, with LDC status.  It granted MFN treatment to all 
Members.  Since 2004, it had taken part in the revised Integrated Framework (IF) for technical assistance to the LDCs.  The diagnostic study had iden tified Chad's technical assistance needs;  it was 
in the process of being revised.  Chad could further benefit from the IF, particularly in the area of 
capacity-building, reform of customs procedures, and tax collection at the border.  The discussant 
asked Chad to comment on the results of the assistance received and its proposals for enhanced 
application of the IF.   
13. Chad was a member of the AU, NEPAD, a nd above all the CAEMC.  However, inter-
CAEMC trade accounted for only 5 per cent of the tota l, and was still subject to levies, since customs 
regulations had not been harmonized.  The CAEMC' s objectives, including the customs union, were 
proving difficult to achieve, particularly when it came to tariff reduction.  The discussant wondered 
how much importance Chad attached to the CAEMC and to the development of its trade within the 
CAEMC.  What were the problems involved in this  development, and how could they be overcome?  
Did Chad intend to apply the CAEMC's CET and to harmonize its customs legislation? 
14. The EPA negotiations between the CAEMC and th e EU were scheduled to be completed at 
the end of 2007.  This agreement would considerab ly alter the context in which Chad conducted its 
trade.  Public opinion should be informed of what  was involved, and the economic actors consulted;  
there should also be inter-ministerial consultati ons.  The discussant wondered how Chad viewed these 
negotiations – what were the conclusions of its impact study and what was Chad's evaluation of 
adjustment costs? 
15. Chad was eligible for the AGOA.  The discu ssant wondered where matters stood and what the 
outlook was.   WT/TPR/M/174 
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  16. The development of investment depended largely on the legislation in force in that area.  
Chad had not transposed the CAEMC Charter of 1999 into its domestic legislation – the Investment 
Code continued to apply.  The discussant wondered what Chad's intentions were in that respect. 
17. The customs tariff, based on the CAEMC's CET, was the main instrument of trade policy and 
one of the country's chief sources of revenue.  It c onsisted of five rates, ranging from zero to 30 per 
cent.  Given the low productivity rate of the differe nt sectors of the economy, any revision of the tariff 
system would require a certain amount of care. 
18. Exports were hampered by a large number of duties and taxes.  Chad's competitiveness could 
benefit from a reduction and simplification of these levies and from more transparent and efficient 
customs procedures. 
(iii) Sectoral policies 
19. Agriculture provided employment for 80 per cent of the population, and had accounted for 
one third of GDP before oil exportation began.  Fo od security was a major ch allenge for Chad, which 
suffered from extremely low agricultural productivity,  drought, isolated settlement areas and difficult 
transport routes, as a result of which the supply  of agricultural products and market access were 
limited.  However, the potential for agriculture w as considerable:  only two million of the 39 million 
hectares of arable land were cultivated, and 30,000 of 5.4 million hectares were irrigated.  Chad should make food security, and hence the developm ent of food crops, its top priority.   
20. The discussant welcomed the fact that rura l development had been made a priority.  
Agriculture played a key role in poverty reducti on and should be the first sector to benefit from a 
generous share of the country's oil revenue.  Thus, the promised investment in transport infrastructure 
would help to improve lines of communication, while the planned investment in irrigation and the 
provision of inputs should enable Chad's agricultu ral potential to be better harnessed.  Land and State 
holdings needed to be reformed, and new areas made suitable for agriculture. 
21. Chad was a major cotton producer.  Some 2 million people relied on cotton for their 
subsistence, and the sector had accounted, in 2002, for more than 5 per cent of the GDP and 42 per 
cent of agricultural export revenue.  But in spite of its high level of production over the past years, the 
sector was in the midst of a deep crisis for several reasons:  the high cost of inputs and equipment;   
the low level of producers' purchase prices;  the inef ficiency of Cotontchad;  the dilapidated state of 
the road network;  the cost of energy;  the weakness of farmers' organizations;  and above all, the plummeting international cotton prices since 1998.  The discussant asked what reforms were planned 
in order to overcome these weaknesses.  The co mpetitiveness of Chadian cotton was seriously 
undermined by the subsidies paid to cotton producers in the industrialized countries, particularly in 
the United States.  Since 2003, Chad had participated  in the Sectoral Initiative in Favour of Cotton in 
the framework of the DDA.  This highlights the im portance for Chad of reaching a rapid and positive 
conclusion to the negotiations.  Co tton exports would be facilitated by implementing the "Everything 
but Arms" regime. 
22. Oil was altering Chad's economy considerably.  In  1999, Chad had entered into an agreement 
with the World Bank on the Chad-Cameroon petr oleum development and pipeline project, an 
agreement that was renegotiated in 2006.  In 200 5, oil exports had generated some US$2 billion in 
revenue, and total transfers to the State amounted to  US$342 million.  It was in Chad's interest  to 
make optimum use of its petroleum resources.  The discussant wondered what  follow-up mechanism 
ensured the implementation of the agreement with  the World Bank and whether civil society was 
involved.  WT/TPR/M/174 
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  23. Chad's economy was dependent on a limited number  of products.  The discussant wished to 
know Chad's intentions with respect to diversif ication.  This could involve strengthening the 
economic base (stepping up the produc tion or importation of electricity, exploiting Chad's aeolian or 
solar energy potential, mobilizing water reserves);  developing SMEs and new i ndustries, in particular 
agri-food industries;  exploiting mineral resources ( gold, iron, bauxite, salt a nd natron);  and making 
the best use of petroleum resources, inter alia  by building up refining capacity. 
24. Lack of qualified personnel, inadequate r esources and poor motivation, instability of 
appointments to high posts, and corruption severel y limited the capacity of the public sector.  The 
discussant wished to know how Chad intended to remedy this problem.  Capacity-building was 
crucial, with priority for training scientists, engine ers and technicians, particularly in the areas of 
agriculture, chemistry, the agro-industry and services. 
(iv) Conclusions 
25. While new and promising economic prospects we re opening up for Chad, they were unlikely 
to materialize without peace and stability, and e ffective reconciliation among the Chadian people.  
Chad could achieve this through dialogue and cooperation. 
26. The exploitation of oil resources was fundamenta lly altering the economic situation.  It was 
up to Chad to draw the right lessons from the failu res of the past in other countries and to place this 
new source of wealth at the service of the NPRS and the MDGs.  A balance needed to be struck between social expenditures – education, health , access to water – and expenditures aimed at 
strengthening the economic base and productive capacity .  Agriculture would require special attention 
in this connection.  Efforts to open up the country should continue. 
27. Trade could help to harness the country's deve lopment potential.  Legislative reforms could 
contribute in this respect, particularly the harm onization of customs, regulatory and investment 
legislation with that of the CAEMC.  Priority shou ld also be given to the development and effective 
operation of a regional market. 
28. Chad needed to take on the challenges of goo d governance, the elimination of corruption and 
capacity-building.  One of the keys to building a bette r future was to involve all of the country's vital 
forces and those of civil society in preparing and implementing the NPRS. WT/TPR/M/174 
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  IV. STATEMENTS BY MEMBERS 
29. The representative of th e European Communities
 recalled the important role played by trade 
policy in growth, poverty reduction and sustainabl e development.  The EC supported Chad in its 
economic, social and political transition, and was k een to know Chad's plans with respect to the 
diversification of its economy;  its objectives for improving the economic environment;  and the 
results and objectives of its NPRS.  The reforms s hould go hand in hand with the regional integration 
process.  The EC welcomed Chad's intention to  pursue good governance.  Referring to the EPA 
negotiations between the EC and the CAEMC, the representative noted that the EC had long been 
contributing to technical assistance for Chad.  Ho wever, technical assistance could not replace trade 
and investment as the main engine for development.  The EC encouraged Chad to continue its efforts 
to apply the relevant WTO provisions.  Chad's trad e policy should aim for social, environmental and 
economic development in the regional framework , as well as poverty reduction.  The EC wondered 
what initiatives Chad planned to ensure proper syne rgy between trade and sustainable development.  
Greater regional and multilateral inte gration would help it to build up its economic and trade capacity 
and ensure the country's sustainable development. 
30. The representative of the United States  recalled the trade capacity-building assistance the US 
had provided Chad.  Moreover, Chad also benef ited from regional USAID programmes in that area.  
It had recently become one of the leading beneficiaries of the AGOA, although its current AGOA trade consisted entirely of oil.  The United States s upported Chad's efforts to diversify its exports by 
sponsoring, for example, the participation of  representatives from Chad in a regional AGOA 
workshop.  The United States had worked very cl osely with the C-4 to move forward on cotton-
related issues, and would continue to do so.  It en couraged Chad to step up its reforms in the cotton 
sector.  In order to improve its trade regime and create an open and predictable climate for trade and 
FDI, the United States encouraged Chad:  to extend its tariff bindings and reduce its bound rates;  to 
consider the benefits of making further commi tments under the GATS;  to address governance 
matters;  and to fulfil its notifica tion obligations.  The United States wished to learn more about what 
Chad was doing to improve the investment climate. 
31. The representative of Turkey
 noted Chad's limited socioeconomic development.  Turkey 
hoped that the continuation of the country's structural  reforms, the diversifica tion of its economic base 
and the successful conclusion of the Doha Round w ould significantly improve the situation.  Oil's 
contribution to the country's socioeconomic structur e was considerable and th e redistribution of oil 
revenue to the productive sectors would foster economic  growth.  Chad had enormous potential in the 
investment area, since many products and servi ces were supplied by inefficient monopolies.  
However, investment, including FDI, was made di fficult by an economic environment that was not 
particularly business friendly.  Turkey encouraged Chad to take the necessary steps to overcome this 
problem.  The difficulties Chad faced in fulfilling its obligations and implementing the WTO agreements stemmed from its technical assistance need s.  However, it had also taken certain measures 
that were contrary to its commitments, and Turkey encouraged better compliance. 
32. The representative of Japan
 referred to the written questions  it had submitted.  Japan hoped 
that this review would enable Chad to further de velop its economy and would help it to participate in 
the multilateral trading system. 
33. The representative of Canada  referred to the modest volume of bilateral trade between Canada 
and Chad in 2005.  Chad's development had been sporadically disrupted;  but its commitment with 
respect to multilateral donors and the construction of the Doba-Kribi pipeline were encouraging signs 
of a positive outlook for economic development, wh ich would also require stability and security.  
Canada encouraged Chad to incor porate the results of the diagnostic study in its NPRS.  In 2003, 
Chad had submitted the Sectoral Initiative in Fa vour of Cotton, taking account of the need for 
coherence between trade and development.  Cana da welcomed Chad's de termination to restore  WT/TPR/M/174 
 Page 9 
 
 
  stability and security, and encouraged it to strengt hen its political institutions, and wished to know 
where Chad stood on the issues of corruption, agricu lture, improvement of FDI, intellectual property, 
telecommunications and customs and tax procedures. 
34. The representative of Colombia  noted that Chad's sources of revenue were agriculture and oil, 
while manufacturing and services remained embryonic.  In order to modernize its economy and raise 
its standard of living, Chad needed to reduce poverty an d exploit its vast oilfields.  It also needed to 
move resolutely and more rapidly towards a more op en and transparent market that would enable it to 
develop its production capacity and foster competitiveness.   To that end, it would have to substantially 
reduce its import levies, its average applied tariff rate , and certain export duties;  and it would have to 
improve its customs procedures and speed up its pr ivatization programme.  These measures, coupled 
with an improved transport infrastructure, would reduce the cost of inputs and the price of end 
products, thereby favouring investment and povert y reduction.  Chad's remarkable GDP growth 
provided an excellent opportunity to lay the groun dwork for solid economic growth accompanied by 
poverty reduction.  Chad needed to redouble its e fforts to promote private initiative, competition and 
transparency.  
35. The representative of Brazil  commended Chad for the marked improvement in its economic 
performance in recent years.  He highlighted th e good performance in the agricultural sector, and 
noted the major role of cotton exports.  Chad was a paradigmatic example of how distortions in the 
global market for agricultural products hampered development, but also a good example of the role 
played by developing countries in the Doha Round.  The C-4 and the Sectoral Initiative in Favour of 
Cotton were essential to the negotiatio ns on agriculture.  Brazil hoped that the cotton issue would be 
addressed expeditiously, specifically and ambitiously, a nd that there could be increased assistance in 
capacity-building.  A strong and prosperous Chad coul d be an engine of growth in the region.  Brazil 
encouraged Chad's economic and structural refo rm efforts.  The representative noted, with 
appreciation, Chad's National Poverty Reduction Strategy. 
36. The representative of Benin  stressed that in spite of all the physical and climatic constraints, 
Chad was courageously pursuing the organization of  its economic activities and its participation in 
international trade.  He recalled the share of agriculture, the secondary sector (oil excluded) and 
livestock in the country's GDP as well as the central role within the primary sector of the production and exportation of cotton.  In that area, the country  was faced with disruptions due to the subsidies 
granted by certain developed countries to their co tton producers and exporters, which had led the C-4 
to submit to the WTO the Sectoral Initiative in Fav our of Cotton with a view to finding a just and 
lasting solution.  Chad's efforts to introduce regul atory and institutional reform s in order to apply the 
rules and principles of the WTO should be suppor ted through appropriate technical and financial 
assistance.  Its determination to participate in in ternational trade and combat poverty also deserved 
support. 
37. The representative of Burkina Faso
 highlighted a number of similarities between his country 
and Chad, and recalled that they were both co-sponsor s of the Sectoral Initiative in Favour of Cotton.  
He also noted that Chad had undertaken a number of reforms in order to foster development.  The revision of its NPRS went hand in  hand with the MDGs and the D oha Development Agenda (DDA).  
Burkina Faso hoped for stability in the region and soci al peace in Chad.  It welcomed the technical 
and financial assistance provided by the international community.  
38. The representative of Morocco
 welcomed Chad's institutional and regulatory reforms and 
recalled some of the objectives that has been set.  He also pointed to the measures taken to create 
suitable conditions for good governance;  the adoption of the NPRS;  and the scope of the Law on the management of oil revenue.  Chad being an or iginal Member of the WTO, its trade policy was 
consistent with the Organization's rules and require ments.  The representative recalled that Chad had 
made commitments under all of the WTO agreements;  that it granted MFN treatment to all of its WT/TPR/M/174 
Page 10  
 
  trading partners, fulfilled its notification obligatio ns, and effectively implemented certain of the 
Uruguay Round agreements.  In order to improve its multilateral commitments and to enhance the 
credibility and predictability of its trade regime, Chad had extended its tariff bindings, reduced its 
bound rates, and strengthened its commitments under the GATS.  The crucial importance of cotton for 
the country's development was reflected in its co mmitment to the Sectoral Initiative in Favour of 
Cotton.  The continuation of the reform process would be a considerable asset in bringing its 
legislation into conformity with WTO rules.  Ch ad's trade policy could no t achieve its objectives 
without support measures from the WT O and the international community. 
39. The representative of Mauritania
 recalled the achievements of Chad's vast economic reform 
programme as well as the various elements of its NPRS .  In order to take full advantage of trade as a 
tool for sustainable development, Chad had revi sed its legislative and regulatory framework for 
business by liberalizing trade;  abolishing import a nd export licensing;  applying the CAEMC's CET;  
and revising its Investment Code.  At the same  time, it was working on implementing the WTO 
agreements.  The representative underscored the measures taken to ensure good governance.  Chad 
had bound all of its tariff lines on agricultural products .  This was particularly important in that, as a 
cotton exporter, it was faced with distortions created  by the support that several developing countries 
granted to their cotton sector.  Together with live cattle and hydrocarbons, cotton was one of Chad's 
main export products.  It was essential that Chad s hould benefit from all of the technical assistance 
needed to diversify its exports. 
40. The representative of China  recalled the factors contributing to the strong recovery of Chad's 
economy during the period 2001-2005.  China encourag ed Chad to diversify its agriculture-based 
economy.  Growing technical assistance, both multilate ral and bilateral, would be necessary in this 
connection.  The representative noted the volume of bilateral trade between China and Chad:  China 
was Chad's second export market.  China was rea dy to further promote their bilateral trade and 
economic cooperation in the future. 
41. The representative of Singapore  noted that bilateral trade flows between his country and Chad 
were rather modest.  However, there was scope for gr eater growth in the future.  Chad was faced with 
the challenge of further integrating itself into the world economy, and the WTO trade policy review 
mechanism played an important ro le in LDC integration.  Singapore recognized the importance Chad 
accorded to trade-related development issues in th e context of the Doha Round.  It commended Chad 
for promulgating a Government Proc urement Code.  There was scope fo r improvement in the range of 
the bound rates and the reduction of applied rates.   Further commitments under the GATS would help 
Chad to make its regime more credible and predicta ble, and hence attractive to investors.  Thanks to 
its oil driven growth and the support of the interna tional community Chad appeared to be in a position 
to address some of its challenges.  In that connec tion, it could also ascertain how the trade facilitation 
negotiations could be useful to it.  The representa tive recalled that the successful conclusion of the 
DDA negotiations was particularly important for the LDCs.  
42. The representative of Gabon  recalled that security and peace were important to economic 
development.  Gabon called upon the international comm unity to help Chad in its effort to create 
viable conditions conducive to economic  development.  The holding of th is Review would help in this 
respect.  Gabon encouraged Chad to persevere in implementing its development policies.  
Involvement in the DDA negotiations, the CAEMC, and the negotiations with the EU represented 
Chad's best chance of moving forward.  A deserved increased support from the international 
community. 
43. The representative of Nigeria  expressed the hope that the Review would help Chad to 
improve the formulation and implementation of its  trade policy.  He commended Chad for making 
poverty reduction and the fight against corruption an in tegral part of its trade policy, and praised it for 
its exceptional economic growth as well as for some of its accomplishments.  He recalled the  WT/TPR/M/174 
 Page 11 
 
 
  similarities between Nigeria and Chad, and called upon Members to support Chad in its efforts.  He 
urged Chad to redouble its efforts to implement its multilateral commitments.  The preponderance of 
its informal sector needed to be corrected, and Ch ad needed to pursue active economic diversification. 
44. The representative of Mali  highlighted the numerous similarities between Mali and Chad.  He 
recalled that the C-4 had submitted the Sectoral Init iative in Favour of Cotton in 2003;  since then, 
Chad had twice participated as a third party in a cotton dispute between Brazil and the United States.  
Cotton was vital to Chad's economy.  While its socioeconomic development needed to rest on a 
diversified base, the considerable potential that co tton offered for rural development needed to be 
preserved from certain practices.  Fortunately, oi l exploitation guaranteed Chad a new source of 
financial revenue, and Mali commended Chad for its effi cient monitoring and control of its use.  Chad 
was faced with a variety of challenges in the economic and trade areas.  Mali called upon Members to 
pursue and intensify their technical assistance and capacity-building efforts. 
45. The representative of the Separate Customs Te rritory of Taiwan, Penghu, Kinmen and Matsu 
(Chinese Taipei ) was pleased to learn that following a serie s of socio-political crises, Chad appeared 
to be pursuing its investment in human resources and infrastructure as well as its liberalization and 
poverty reduction programmes.  While its economic growth was encouraging, its total debt remained 
high.  It was essential for Chad to revise its NPRS and to take effective measures, including good 
governance measures, to sustain its economic deve lopment.  Improved implementation of the WTO 
Agreements would help Chad to attract more FDI an d to take better advantage of the trade preferences 
it has been granted.  Chinese Taipei urged Chad to  develop its oil exports while at the same time 
diversifying its economic base.  The representative mentioned the bilateral trade between Chinese 
Taipei and Chad and the possible future expansi on of that trade.  Chinese Taipei supported an 
ambitious, specific and expeditious solution to the cotton issue in the framework of the Doha Round. 
46. The representative of Tunisia  reaffirmed his country's support for Chad's reform efforts, and 
stressed the importance of providing Chad with in creased technical and financial assistance.  Tunisia 
backed Chad's efforts to ensure  that the Sectoral Initiative in Favour of Cotton was given proper 
treatment, and urged Members to examine the possi bility of stepping up their assistance to Chad. WT/TPR/M/174 
Page 12  
 
  V. REPLIES BY THE REPRESENTATIVE OF CHAD AND ADDITIONAL 
COMMENTS 
47. After expressing his thanks the representative of Chad
, referring to the questions received, 
informed Members that the missing replies would be communicated to the Secretariat as soon as 
possible.   
(i) Economic environment 
48. With the support of its development partners , Chad had undertaken significant economic and 
structural reforms to make its economy efficient.  The Poverty Reduction Strategy Paper contained the 
results of these reforms in terms of economic prosp ects.  The start-up of oil production had generated 
financial resources that were allocated to the priori ty sectors (education, health, agriculture, livestock, 
social welfare and employment).  There had been progress on the privatization front as well:  of the 
47 State enterprises, 18 had been privatized, 14 wound up, and a number of others were in the process 
of being privatized.  The financial, banking and insurance sectors had been privatized.   
49. In order to make the environment more business friendly, efforts had been made to promote 
the private sector.  At the same time, the legal and judicial environment had been improved through 
the adoption of legislative and regulatory texts (OHADA Treaty and Government Procurement Code), 
streamlined issuance of administrative documents, and the elimination of almost all tariff barriers.  
Draft laws on the national investment charter, co mpetition and consumer protection were also in the 
process of being finalized.  A certain number of institutional tools (trade courts and a National 
Investment and Export Promotion Agency) had been introduced. 
50. Other economic and financial re forms had been undertaken:  implementation of the anti-
corruption law, creation of a Ministry in charge of general State control and ethics and the Court of 
Audit, and adoption of national good governance a nd poverty reduction strategies.  The NPRS was 
being revised in order to incorporate the MDGs a nd the results of the diagnostic study as a means of 
gearing it towards sustainable development. 
51. Chad had signed and ratified the Act containi ng the results of the Uruguay Round and the 
Marrakesh Agreement Establishing the WTO, of whic h it became an original Member in 1996.  The 
multilateral trading system could contribute to th e socioeconomic development of all countries, 
including the LDCs.  In that connection, Chad pa rticipated actively in the negotiations under the DDA 
with a view to eliminating all forms of subsidi es granted by the developed countries;  ensuring free 
access for LDC products to the markets of the industrialized countries;  and improving special and differential treatment and dealing with other issues of interest to the LDCs. 
52. Cotton played an important economic and social  role in Chad.  However, cotton production 
and exports were seriously threatened by the subsid ies that the developed countries granted to their 
cotton producers and exporters, which had led to a shar p fall in world prices.  In this context, Chad, 
Benin, Burkina Faso and Mali had submitted, in 2003,  the Sectoral Initiative in Favour of Cotton with 
a view to finding a just and lasting solution.  Faced with enormous difficulties in implementing the 
WTO Agreements and improving its supply capacity, Ch ad had stated its technical assistance needs.  
This had led to the preparation of the Integrated Framework Diagnostic Study.   Chad intended to use 
the Window II funds to finance a couple of priority projects. 
53. Chad attached particular importance to bilateral,  subregional and regional cooperation.  As an 
ACP country and an LDC, its products enjoyed pr eferential access to the markets of the EU (Cotonou 
Agreement) and the United States (AGOA).  The ro admap for the negotiation of an EPA between the 
ACP and the EU had been signed, and the different  stages already completed.  However, Chad hoped 
that the EU would set up a specific fund to cover possible adjustment costs in connection with the  WT/TPR/M/174 
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  liberalization resulting from that agreement and to cover the costs of capacity-building and upgrading 
of production units.  The representative reaffi rmed Chad's commitment to the CAEMC and to 
regional development.  The low-level inter-CAEMA C trade was due to the low production capacity of 
its members – its development depended on build ing up the production capacity of the countries 
concerned.  This was the approach that the CA EMC members had adopted in the EPA negotiations. 
54. Chad did not yet have a national policy for standardization and metrology, which were 
essential tools for boosting its exports.  A project was cu rrently under way.  All of the provisions of 
the Government Procurement Code were applied.   The Appeals and Conciliation Committee settled 
disputes between candidates for public contracts a nd the State.  Intellectual property rights were 
protected under the revised Bangui Agreement.  Copyright was protected by Law No. 005/PR/2003 
on the protection of copyright, related rights and expressions of folklore, and by the Bangui 
Agreement, Annex VII.  The  Bangui Agreement was considered to be part of the country's domestic 
legislation. 
(ii) Trade policy 
55. Much remained to be done in order to improve  customs clearance.  Procedures needed to be 
streamlined and certain taxes abolished.  In 1999,  Chad had introduced the ASYCUDA computerized 
system.  Although its operation had not been trouble-fr ee, efforts had been made, with the help of 
UNCTAD, to improve matters.  The Action Plan for the modernization of public finance management 
took account of this problem.  Export taxes on agricultu ral products had been e liminated in 1995, with 
the exception of livestock and dried fish, and th e inspection and packaging tax as well as the 
absorption levy had just been abolished. 
56. The delay in implementing the WTO Agreem ent on Customs Valuation was somewhat 
attenuated by the involvement of BIVAC Interna tional, which certified the value of goods and 
conducted pre-shipment inspections of all goods des tined for Chad.  However, Chad had undertaken 
to comply with WTO rul es in the near future. 
(iii) Sectoral policies 
57. Agricultural policy aimed to boost production on  a sustainable basis and in a preserved 
environment as a means of improving the standard of  living of producers and reducing poverty.  One 
of the components of that policy was food security, which meant overcoming the grain shortage by 2010.  In order to reduce the heavy reliance on th e vagaries of the climate and make agricultural 
products accessible, particular emphasis was being placed on water management, intensification and 
diversification of production, a nd improving access to production areas. 
58. With regard to livestock breeding, Chad was se eking to improve pastoral water resources and 
breeder access to by-products of the agro-indu strial units in order progressively to reduce 
transhumance, and to create an environment conducive to the exportation of live cattle. 
59. The reform of the cotton sector was a priority, and a number of urgent measures had already 
been taken to revive production and secure the financ ial recovery of CotonChad.  The road map had 
identified the decisions and actions to be take n prior to the privatization of CotonChad in 
January 2008, allocated the responsibilities, and worked out a time-frame.  Several activities had 
already produced results, while others had not yet done so, and some remained to be implemented. 
60. The country's subsoil contained crude oil r eserves of more than 1 billion barrels, and 
prospecting was still under way.  Although the da ily production initially planned had not been 
achieved, the prospects were good.  In order to st ep up its involvement, the Government had created 
the Société des Hydrocarbures du Tchad  (Chad Hydrocarbons Company), among other things to WT/TPR/M/174 
Page 14  
 
  follow up oil production on behalf of the State.  Tr ansparency in the management of oil revenue was 
one of the main components of Chad's good govern ance and poverty reduction strategies.  Since 1999, 
their allocation had been governed by Law No. 001 ( 70 per cent for priority sectors).  This law went 
hand in hand with the Collège de Contrôle et de Surveillance des Ressources Pétrolières  (Oil 
Revenue Control and Supervision Bo ard), made up of representatives of civil society, Parliament, the 
Supreme Court and the Government.  The marketi ng of finished oil products was liberalized.  
61. Electricity coverage and availa bility represented a major challenge.  Electricity was thermally 
generated.  In spite of the costs involved, Chad pl anned to set up an atmos pheric distillation unit at the 
Doba oil field with the support of the Consortium a nd the World Bank, in order to produce diesel fuel 
essentially to be used for the Electricity and Wa ter Company.  A far reaching extension of the 
electricity network was planned, and the sector was in the process of being restructured. 
62. While the manufacturing industry stood to bene fit from a sizeable subregional market, the 
high production factor costs, Chad's land-locked pos ition, and the conditions for access to financing 
stood in the way of its development.  Chad was pl anning on an industrial development strategy based 
on its comparative advantages with  respect to the subregion. 
63. The discussant
 noted Chad's efforts to comply with its multilateral obligations, reform its 
economy and privatize a certain number of companies, as well as its efforts in the areas of government procurement and the streamlining of cust oms procedures.  The trade courts helped to 
improve legal certainty.  The incorporation of the M DGs and the results of the Diagnostic Study in the 
NPRS was testified to Chad's close cooperation with  the different internati onal organizations involved 
in development.  He noted Chad's commitment in  the Doha Round negotiatio ns.  He welcomed the 
reforms that were under way in the areas of techni cal standards and regulation, intellectual property 
and customs procedures.  He took note of Chad's s ectoral policies and the importance of agriculture in 
its economy.  A fair share of petroleum resources were used to strengthen the agricultural sector.  Reform efforts were under way in the cotton industry,  particularly with respect to CotonChad.  The 
discussant wondered whether Chad maintained contac ts with its neighbours (Mali and Burkina Faso) 
in order to share their experiences in reforming the marketing structure for cotton.  He referred to the 
Control and Supervision Board and transparency in  the allocation of oil revenue as a significant and 
unique innovation that could be of interest to ot her countries.  He asked Chad to elaborate on its 
proposals for the implementation of the Integrated Framework. 
64. The representative of Chad
 acknowledged that having been the leading cotton producer, the 
reverse was now true.  The road map aimed to harm onize the restructuring of the cotton sector at the 
regional and African level.  Progress had also been made since cotton had become one of the central 
negotiating issues under the Doha Round.  Chad's re form timetable, set to be completed in 2008, 
provided for the privatization of CotonChad.  While there was no monopoly in force in Chad, cotton was of no interest to any investor.  CotonChad, wh ich operated at a consider able loss, was not in a 
position to pursue a policy aimed at improving its performance without State support.  At the same 
time, the State could not continue to subsidize it fore ver.  The subsidies granted by certain countries to 
their producers and exporters were exerting down ward pressure on world prices, aggravating the 
situation of the poor cotton producers.  The fundament al issue at stake was the elimination of these 
subsidies.  This would represent, for the Chadian producers and for Africans in general, a substantial 
gain.  Meanwhile, instead of subs idizing their enterprises that were  operating at a loss owing to low 
world prices, the countries concerned could use that income for education and health, or to speed up 
their economic diversification.  It was mere ly a matter of complying with WTO rules. 
65. The Supervision Board was a special mechanism that used oil revenue to kick-start the 
economy.  Its role was to supervise the applicati on of Law No. 001, which provided for the allocation 
of 70 per cent of oil export revenue to the priority  sectors (education, health, environment, agriculture, 
livestock and transport) and 30 per cent to the ot her sectors.  Made up of representatives of the  WT/TPR/M/174 
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  government, the unions and civil society, the Board in tervened at every stage from the preparation of 
the budget to its implementation.  It was important in  ensuring transparency in the management of oil 
revenue and in responding to the national poverty reduction and good governance requirements and 
strategies. 
66. The results of the Integrated Framework had been incorporated in the national good 
governance strategy.  Chad was awaiting WTO tec hnical assistance in that connection.  Good 
governance and macroeconomic stability were essential to the proper fu lfilment of the MDGs.  Chad 
needed the help of the intern ational community, since its resources fell short of its needs. 
67. The representative of Djibouti  felt that Chad's efforts should be  backed by technical assistance 
from the WTO and the United Nations institutions.  Technical assistance to the LDCs should be 
doubled in order to enable them to implement th eir development programmes, at least in certain 
priority areas.  Djibouti invited Chad to attend a me eting on the Integrated Framework to be held in 
Geneva. 
68. The representative of the United States  reaffirmed her country's commitment to the 
development aspect of the cotton issue.  The Unite d States was also working to achieve progress on 
cotton related issues in the context of the Doha Round.   
69. The representative of Nigeria  noted that the redistribution of oil revenue to priority sectors 
contributed towards the elimination of poverty.  The Control and Supervision Board was an excellent innovation.  Concerned by the low level of intra-Afri can trade, Nigeria encour aged Chad to give it 
more attention.   
70. The discussant
 wondered what the negotiation of an EPA between the CAEMC and the EU 
represented for Chad.  This EPA appeared to create a new trade context.  EPAs reflected the EU's 
wish to comply with the provisions of Article XXIV of the GATT;  the conclusion was that non- 
reciprocity could no longer apply but that free tr ade areas should be created.  He wondered how Chad 
could participate in, and prepare itself for such ne gotiations – whether Chad's economic actors were 
ready and what the impact would be on Chad's trade.   He asked for information on Chad's interests in 
the negotiations, in the context of the CAEMC. 
71. The representative of the European Communities  noted that Chad's trade policy objectives 
were social, environmental and economic developm ent and poverty reduction.  The EC hoped that 
Chad would take all of the necessary measures to build up its economic and trade capacity, and to 
guarantee sustainable development.  It needed technical assistance, including trade assistance. 
72. The representative of the United States  encouraged Chad to move forward in the negotiations 
on infrastructure services (transport, energy, communi cation and information technologies) in order to 
attract the investment needed for its development. WT/TPR/M/174 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
73. This first Trade Policy Review of Chad has fostered a better understanding of its economic 
environment and of the challenges it faces.  Our disc ussions have benefited from the engagement of 
the delegation of Chad, led by His Excellency Mr Youssouf Abassalah, Minister of Trade and 
Handicraft, the excellent contributions of the di scussant, Ambassador Feyder, and interventions by 
Members. 
74. Members noted the strong economic growth that accompanied the development of oil 
production by Chad, and encouraged it to further redirect oil revenues into priority projects to improve its Human Development Index;  its GDP per capita doubled between 2002 and 2004.  They 
suggested incorporating trade policy elements into  Chad's Poverty Reduction Strategy Paper, and 
linking them to such issues as sustainable devel opment and protecting the environment.  The Darfur 
crisis has had a severe influence on the Ch adian economy.  Plans to improve the business 
environment, including measures to address governance issues and promote investment, and adoption of an Investment Charter would be welcome.  Members were interested in the degree of trade integration within the Central African Econom ic and Monetary Community and the Economic 
Community of Central African States, and in the advancement of nego tiations on an Economic 
Partnership Agreement with the European Communities. 
75. Members enquired about Chad's technical assist ance needs in trade facilitation, and in 
customs-related areas.  They urged Chad to si mplify its registration and customs procedures, 
terminate its recourse to minimal import valu es, and fully implement the WTO Agreement on 
Customs Valuation.  Members invited Chad to redu ce its high border taxation and noted that in doing 
so it would better comply with its WTO commitments, which could be improved.  Many duties and 
taxes are imposed on imports despite being bound by Chad at zero.  Concerns were expressed about 
the imposition of various export taxes.  Member s encouraged Chad to fulfil its notification 
obligations, including on an update d version of its tariff, and on TBT and SPS measures.  Interest was 
expressed in the announced competition law. 
76. Members encouraged Chad to liberalize its ser vices sector (including the privatization of 
SOTEL Tchad), as it has a central role in the perfo rmance of the economy.  Such liberalization, 
together with increased productivity in agriculture  (80 per cent of total employment) and further 
reforms in the cotton subsector (including the Co tonchad company), should contribute to the 
diversification of the economy and sustain growth.  Other issues of interest to Members include 
structural reforms (e.g. privatization of State monopoli es);  application of intern al taxes to imports and 
domestic production;  government procurement;  intell ectual property protection;  and the creation of 
a domestic refinery. 
77. Members appreciated the responses provided by the delegation of Chad , and look forward to 
receiving written answers to any outstanding questions. 
78. In conclusion, Chad's future economic pe rformance remains dependent upon its socio-
political stability and the strengthening of its diversif ication efforts.  Full implementation of the WTO 
Agreements by Chad and improvement of its multilateral commitments on goods and services would 
enhance the transparency and predictability of its tr ade regime, and help to attract the foreign direct 
investment needed for diversification purposes.  I urge both the WTO Membership and the Secretariat 
to be receptive to Chad's assist ance needs.  Such assistance, to gether with economic reforms and 
further multilateral trade liberalization (including in  the cotton subsector), would help it to better 
integrate into the multilateral trading system.  
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