RESTRICTEDWORLD  TRADE
ORGANIZATIONWT/TPR/S/48
10 December 1998
(98-4908)
Trade Policy Review Body
TRADE POLICY REVIEW
TOGO
Report by the Secretariat
This report, prepared for the  Trade Policy Review of Togo, has been drawn up
by the WTO Secretariat on its own responsibility.  The Secretariat has, as
required by the Agreement establishing the Trade Policy Review Mechanism
(Annex 3 of the Marrakesh Agreement Establishing the World Trade
Organization), sought clarification from  the Government of Togo on its trade
policies and practices.
Document WT/TPR/G/48 contains the policy statement submitted by the
Government of Togo
Note: This report is subject to restricted circulation and press embargo until the end of the meeting
of the Trade Policy Review Body on Togo.Togo WT/TPR/S/48
Page iii
CONTENTS
SUMMARY OBSERVATIONS  ix
(1) THE ECONOMIC ENVIRONMENT  ix
(2) INSTITUTIONAL FRAMEWORK   x
(3) TRADE POLICY FEATURES  xi
(i) Trade policy instruments and their impact  xi
(ii) Policies by sector xiii
(4) TRADE POLICIES AND TRADING PARTNERS xiv
I. THE ECONOMIC ENVIRONMENT  1
(1) M AJOR FEATURES OF THE ECONOMY  1
(2) E CONOMIC DEVELOPMENTS  3
(i) From independence to the end of the 1980s  3
(ii) Economic situation in the 1990s  4
(3) TRADE PERFORMANCE  6
(i) Trade in goods  7
(ii) Trade in services 10
(4) INVESTMENT 12
(5) OUTLOOK 12
ANNEX I.1:  EXCHANGE REGULATION 13
II. TRADE AND INVESTMENT REGIMES 15
(1) I NSTITUTIONAL FRAMEWORK 15
(2) F ORMULATION AND IMPLEMENTATION OF POLICIES 15
(3) POLICY OBJECTIVES 17
(4) LAWS AND REGULATIONS 17
(i) Trade legislation 18
(ii) Investment Code and Mining Code 18
(iii) Free zones 21
(5) TRADE AND INVESTMENT AGREEMENTS AND ARRANGEMENTS 22
(i) Multilateral agreements 22
(ii) Regional agreements 23
(iii) Other trade agreements or arrangements 25
(iv) Trade disputes and consultations 26
(v) Investment agreements or arrangements 27
III. ANALYSIS OF TRADE POLICY INSTRUMENTS 28
(1) I NTRODUCTION 28WT/TPR/S/48 Trade Policies Review
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__________________________________________________________________________________(2) M EASURES DIRECTLY AFFECTING IMPORTS 29
(i) Registration and documents 29
(ii) Inspection, customs valuation and customs clearance 29
(iii) Import duties 31
(iv) Rules of origin 39
(v) Anti-dumping, countervailing and safeguard measures 40(vi) Prohibitions, quantitative restrictions and licensing 40
(vii) Standards and ecological and other technical requirements 40
(viii) Government procurement 42
(ix) Local content requirements 43
(x) Other measures 43
(3)
MEASURES DIRECTLY AFFECTING EXPORTS 43
(i) Regulations 43
(ii) Export duties and taxes 44
(iii) Prohibitions, licences and other measures restricting exports 44
(iv) Export subsidies 44(v) Duty and tax concessions 45
(vi) Advantages connected with the free zone regime 45
(vii) Export promotion, financing and assistance 46
(4)
OTHER MEASURES AFFECTING PRODUCTION AND TRADE 46
(i) State trading, state enterprises and privatization 46
(ii) Subsidies and other forms of production assistance 49
(iii) Price regulation and competition policy 49(iv) Regional promotion measures and assistance to adjustment,
and research and development 50
(v) Measures for the protection of intellectual property rights 51
IV. TRADE POLICIES AND PRACTICES 54
(1)
INTRODUCTION 54
(2) AGRICULTURE , LIVESTOCK , FISHERIES , FORESTRY AND RELATED INDUSTRIES 55
(i) General 55
(ii) Policy by product category 56
(3) M INING , ENERGY AND WATER 63
(i) Mining products 63
(ii) Petroleum products and natural gas 64
(iii) Electric power and water 65
(4) M ANUFACTURING SECTOR 66
(i) Food processing 66
(ii) Textiles and clothing 67(iii) Chemicals 67
(iv) Non-metallic mineral products 67
(v) Metal working 68
(vi) Paper and printing 68Togo WT/TPR/S/48
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(vii) Woodworking and wooden articles 68
(5) SERVICES 68
(i) Transport services 69
(ii) Tourism, hotel and restaurant services 72
(iii) Post and telecommunications 73(iv) Financial services 75
REFERENCES 78WT/TPR/S/48 Trade Policies Review
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__________________________________________________________________________________CHARTS
I. THE ECONOMIC ENVIRONMENT
I.1 Sectoral distribution of GDP, 1992 and 1996  2
I.2 Growth rates of real GDP, 1970-1997  4
I.3 Exports and imports according to main product groups, 1992 and 1997  9
I.4 Exports and imports according to trading partner, 1992 and 1997 11
III. ANALYSIS OF TRADE POLICY INSTRUMENTS
III.1 Average import duties (excluding PC, PCS and TPI) by category of goods,
excluding petroleum products, March 1998 34
III.2 Average tariff according to degree of processing, March 1998 35
IV. TRADE POLICIES AND PRACTICESIV.1 Production of cash crops in Togo, 1987-1997 58
IV.2 Structure of the price of cotton, 1993-1996 58
IV.3 Evolution of tourist service earnings in Togo, 1980-1995 72Togo WT/TPR/S/48
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TABLES
I. THE ECONOMIC ENVIRONMENT
I.1 Basic social data, 1970-1995  1
I.2 Basic economic indicators, 1990-1997  5I.3 Evolution of the balance of payments, 1993-1997  7
I.4 Evolution of exports and imports, 1991-1997  8
I.5 Investment, 1990-1997 12
II. TRADE AND INVESTMENT REGIMES
II.1 Main advantages provided for by the Investment Code 20
II.2 Main advantages granted to enterprises in the free zones or to free points 22
II.3 Establishment of the common WAEMU external tariff 25
III. ANALYSIS OF TRADE POLICY INSTRUMENTSIII.1 Customs tariff according to degree of processing, March 1998 28
III.2 Imports by "occasionals", according to the main customs regimes, 1997 29
III.3 Import duties and domestic taxes on imports collected by the customs, March 1998 32
III.4 Specific tax on petroleum products, 1997 33
III.5 Consumption taxes, March 1998 36
III.6 Togolese industrial products certified under the TPC, March 1998 38III.7 Proportion of exempted imports in the total cleared for domestic use, 1994-1997 39
III.8 Distribution of exempted imports by categories, 1997 39
III.9 Free zone statistics as at 31 December 1997 46
III.10 List of State-owned  enterprises at the end of 1997 48
IV. TRADE POLICIES AND PRACTICES
IV.1 Cost of energy, water, telecommunications and transport:
comparison with the other WAEMU countries 55
IV.2 Togo's food balance sheet, 1995-1997 57IV.3 Producer purchase price and f.o.b. price of cotton, coffee and
cocoa (CFAF/kg.), 1991-1997 59
IV.4 Areas under coffee and cacao plantations in 1995 59
IV.5 Development of livestock in Togo, 1993-1996 61
IV.6 Main destinations of phosphate exports, 1997 64IV.7 Schedule of specific commitments under the General Agreement
on Trade in Services (GATS) 69
IV.8 Evolution of import and e xport traffic of the Autonomous
Port of Lomé, 1995-1997 70
IV.9 Hotels by category, 1998 72
IV.10 Hotel statistics in Togo, 1989-1996 73
IV.11 Telecommunication basic indicators, 1994-1997 74IV.12 Telephone tariffs in certain countries, 1994 74
IV.13 Evolution of policies issued per company, 1994-1996 77WT/TPR/S/48 Trade Policies Review
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__________________________________________________________________________________APPENDIX TABLES
III. ANALYSIS OF TRADE POLICY INSTRUMENTS
AIII.1 Tariff accordin g to degree of processing, 1998 81
IV. TRADE POLICIES AND PRACTICESAIV.1 Import duties by HS Chapter, 1998 84Togo WT/TPR/S/48
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__________________________________________________________________________________SUMMARY OBSERVATIONS
(1) THE ECONOMIC ENVIRONMENT
1. Situated on the west coast of Africa,
Togo is a least-developed country (LDC) whichbecame independent on 27 April 1960.  In the
second half of the 1970s the Togolese authorities
undertook a programme of public investment to
diversify the economy that was strongly
dependant on phosphates.  The difficultiesencountered with the State-owned enterprises
created for that purpose, together with Togo's
natural difficulties as a LCD and the large public
deficits associated with this investment and a
rapid expansion of the wages and salary bill ledto a substantial increase in internal and external
payment arrears.  From 1979 onwards the
authorities introduced a series of structural
adjustment programmes (SAP) intended to
correct these imbalances.
2. The implementation of the programmes
was interrupted several times, in particular bythe social and political crisis that Togo went
through in 1991 at the beginning of its transition
to democracy.  In January 1994 the African
Financial Community franc (CFA franc) was
devalued:  its parity changed from CFAF 50 to1 French franc to its present level of CFAF 100
to 1 French franc.  Following the devaluation
Togo introduced a new SAP for 1994-1997
intended to create an environment conducive to
favourable economic activity.  To that end, thefirst stage of privatization, which also involves
the Togolese Phosphates Office (OTP), has been
almost completed.
3. In general terms the reforms have led to
a simplification of the structure of import duties,and the rates of these duties are now among the
lowest in the West African Economic and
Monetary Union (WAEMU), of which Togo is a
member.  The improvement in the performance of
the tax authorities and customs administration
and the tax components of the reforms made it
possible to increase the internal revenue from10.9 per cent of the Gross Domestic Product(GDP) in 1993 to more than 18 per cent in
1996 and to about 16 per cent in 1997.  An
upturn in real GDP was recorded from 1994
onwards, at rates above 8 per cent, except in
1997 when growth was estimated at 3.9 per
cent, although these rates are partly areflection of the process of catching up
following the major falls in the years 1992 and
1993.  The external balances also improved.
However, the Togolese economy, having
already been weakened by the crisis and thestrong demand for local goods partly induced
by the substitution effect of devaluation,
sustained inflation, whose rates had not, by
1997, returned to their previous level.
4. The Togolese economy is mainly
dependent on agriculture (cotton, cocoa,
coffee and food crops), which accounts for
about 40 per cent of the GDP, three quarters
of the jobs and over half the export earnings.
Cotton accounts for about a quarter of these
earnings.  Togo is the fifth world producer of
calcium phosphate and possesses largereserves with a high phosphate content.  The
subsoil also contains marble (now being
exploited) and iron ore (not exploited).  The
mining sector accounts for over a third of
export earnings, of which phosphatecontributes about a quarter.  The
manufacturing sector, mainly turned towards
the domestic market (principally on account of
the size of the production units) represents less
than 10 per cent of the GDP.  The food-processing industry is the most important
branch of the sector.  A considerable portion
of the GDP (44 per cent in 1996) comes from
the tertiary sector, whose development has
been assisted by transit operations through theport of Lomé, from which an important road
network leads to the land-locked countries to
the north of Togo.  In addition, the main
supplier of jobs in Togo (396,000 jobs in
1997) is the informal sector (excluding
agriculture), which considerably developed
during the crisis of 1991-1993.  It representsabout 33 per cent of the value added of the
manufacturing sector, 52 per cent of theWT/TPR/S/48 Trade Policies Review
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__________________________________________________________________________________services sector and 37 per cent of the trade
sector.
5. Long in deficit, the Togo balance of
trade was in surplus in 1994, 1995 and 1997
(estimate).  On the other hand, the balance of
services is in chronic deficit, which sustains thatof the balance on current account.  The latter has
increased since devaluation as a result of the
increase in CFA franc terms of the interest on
foreign debt and expenditure on insurance and
freight.  Togo's foreign trade mainly involves theimport of food and petroleum products and
textiles and clothing and the export of
phosphates, cotton, coffee and cocoa.  Re-exports
represent over a quarter of the total of goods
exported by Togo.
6. Togo's main trading partners are
France, Canada, Brazil and the WAEMU
countries.  South Africa, Indonesia and Malaysia
have become important outlets for Togolese
products in recent years.  Togo exports
phosphates to Canada (the main destination forTogolese products) and South Africa.  Cotton is
mainly sent to Chinese Taipei and Brazil and
coffee to the European Union.  Despite a
decrease in its share of Togolese imports, France
is still Togo's main supplier.  In all about onefifth of Togolese imports come from countries in
the West African subregion.  However, apart
from the increase of imports from Côte d'Ivoire
and Senegal, the devaluation of the CFA franc
does not seem to have favoured the substitutionof goods from WAEMU countries for those of
other suppliers.  The same is true of Togolese
products going to other WAEMU countries.
(2) 
INSTITUTIONAL FRAMEWORK
7. In accordance with the provisions of the
1992 Constitution, Togo is a democratic State.
The President of the Republic is the Head of
State;  he is elected by universal suffrage for a
five-year term renewable only once.  As the
holder of executive power, he establishes the
broad outlines of State policy and appoints thePrime Minister and the other members of the
Government.  The National Assembly exerciseslegislative power.  An Economic and Social
Council gives its advice on all matters brought
to its attention by the President of the
Republic, the Government, the National
Assembly or any other public institution;  it
must also be consulted on every draft plan,programme or instrument having an economic
and social character.
8. Togo has no commercial code and
French law is applied in many areas.Nevertheless, national laws and regulations do
exist.  Coming into force in 1989, the
Investment Code (Code of 1965 revised on
several occasions) is intended to encourage
export-oriented investment, increase theemployment of Togolese workers, promote the
establishment of SMEs, encourage the
decentralization of economic activities and
make optimum use of the country's natural
resources.  It guarantees the same rights and
obligations to national and foreign
enterprises.  Similarly, it guarantees thefreedom of capital transfer and of income and
salaries for foreign natural or legal persons.
Plans to revise it are subordinated to the
expected introduction of a community
investment code in the WAEMU framework.In addition, in accordance with the provisions
of the Mining Code of 1996, any natural or
legal person, whether Togolese or foreign,
having the necessary technical and financial
capacity, is entitled to exploit mineralsubstances.  However, the right to engage in
such operations can be acquired only by virtue
of mining titles issued by the Ministry of
Mines.  The Code gives advantages, especially
fiscal advantages, to mining companies.Finally, important advantages, including fiscal
and customs advantages, are granted under
the free zone regime, which Togo has had
since 1989.  This regime is one of the most
important in West Africa.
9. Togo became a Member of the WTO
on 31 May 1995, after having de facto applied
the GATT from April 1960.  It grants at least
most-favoured-nation (MFN) treatment to all
its trading partners.  Togo, following theTogo WT/TPR/S/48
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__________________________________________________________________________________example of other WTO Members, has adopted in
their entirety the results of the Uruguay Round
and entered into commitm ents in the form of
binding of duties and measures relating to the
modes of supply of certain services.  It has
benefited from the treatment granted to the least-developed countries, notably in the form of
exemptions or delayed implementation of certain
provisions, and it should benefit in particular
from the strengthening of rules and disciplines in
the multilateral trading system in sectors such asagriculture, which are particularly important for
the country.  Togo hopes that the integrated
programme launched by the WTO and other
organizations at the High-Level Meeting held in
Geneva in October 1997 will go beyond thetechnical assistance objectives therein:  Togo's
main concern is to increase and diversify
production so as to be able to take better
advantage of the opportunities available as well
as those which should result from the continued
liberalization at the multilateral level.
10. Togo is a founder member of the West
African Economic and Monetary Union
(WAEMU).  This organization's aim is to create
an economic union through the convergence of
macroeconomic and sectoral policies and the
harmonization of member countries' fiscallegislation;  monetary integration, with a
common central bank, the Central Bank of the
West African States (BCEAO), and a common
currency (the African Financial Community
franc), has already been achieved.  The structureof the Common External Tariff (CET) with four
rates (1 per cent, 6 per cent, 11 per cent and
21 per cent plus the Community levies totalling
1 per cent) has been defined, and the transition
towards implementation began in July 1998 andshould end in January 2000, by which date the
customs union should have been completed.
Togo is also a member of the Economic
Community of West African States (ECOWAS)
whose Treaty also envisages the creation of a
customs union, although the timetable for
establishing the union has not been respected.
11. As a signatory to the Fourth Lomé
Convention, Togo receives aid from theEuropean Union and benefits from the
Stabilization System for Export Earnings
(STABEX).  Under the Convention, many
Togolese exports to the EU enjoy non-
reciprocal preferential treatment in the form
of exemption from im port duties.  Likewise,
Togo's goods enjoy non-reciprocal
preferential access to the markets of developed
countries other than the members States of the
European Union under the Generalized
System of Preferences.  The scope of this non-reciprocal preferential treatment is limited,
especially owing to the small number of
products exported by Togo, namely raw
materials that are generally subject to zero or
very low MFN import duties in the importingcountries.  As at July 1998, Togo had not been
involved in any dispute settlement proceedings
under the GATT, the WTO or any other trade
agreement signed by it.
(3) 
TRADE POLICY FEATURES
(i) Trade policy instruments and their
impact
12. Togo's trade policy is essentially
based on duties and taxes.  The reforms
introduced by Togo as part of its structural
adjustment programmes have enabled it to
liberalize foreign trade operations, abolishcertain monopolies and simplify the structure
of import duties.  In 1990 Togo adopted the
Harmonized System Nomenclature and has
applied the 1996 version since
1 January 1998.  The entry duties currentlylevied on imports consist of a fiscal import
duty (DFE) of 5, 10 or 20 per cent; a
statistical tax (TS) at the single rate of 3 per
cent;  an infrastructure protection tax (TPI) of
CFAF 2,000 per tonne;  and community taxeslevied on behalf of WAEMU (PSC) and
ECOWAS (PC) at 0.5 per cent each.  The
simple arithmetic average of these import
duties (excluding PCS, PC and TPI) is
19.5 per cent, with a minimum of 3 per cent
and a maximum of 23 per cent.  With their
very low level of dispersion, the import dutyrates show a generally negative escalationWT/TPR/S/48 Trade Policies Review
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__________________________________________________________________________________from semi-processed goods to finished products.
The most heavily taxed goods are fishery
products, tobacco, clothing, footwear, leather
goods and articles made of plastic.  On the other
hand, mining products, printed matter and non-
electrical machines are the least heavily taxedgoods.
13. In addition to import duties and taxes,
value-added tax (VAT) at three rates (0, 7 per
cent and 18 per cent) was introduced in 1995.
Certain products, principally medicines andmedical equipment and agricultural and
fisheries, inputs are exempt.  Specific duties are
also levied on imports of beverages, tobacco,
flour, oils and fats, cement and industrial gas;
these taxes sometimes vary according to theorigin of the products (Togo, ECOWAS or other
countries).  A tax on the consumption of
petroleum products (TCPP), in an amount of
CFAF 50 per litre, is payable on all petroleum
products except paraffin for domestic use (which
is exempted).  A down payment (of 1 per cent for
registered importers and 5 per cent for non-registered importers) on business profits and on
the corporate tax is also levied on importation on
behalf of the Directorate General of Taxation.
14. Under the Uruguay Round, Togo has
bound the import duties and taxes onagricultural products (like other WTO Member
countries) and those applicable to products
coming under Chapters 43 (furskins and
artificial fur), 75 (nickel and articles thereof)
and 78 (lead and articles thereof) of theHarmonized System at the ceiling rate of 80 per
cent.  Thus, the bindings cover a relatively small
number of products and leave Togo a great deal
of room for manoeuvre in view of the large gap
between the bound rates and rates actuallyapplied.  The other duties and taxes on these
products have also been bound:  the statistical
tax at the rate of 3 per cent, the toll on sea cargo
in an amount of CFAF 200 per tonne and the
customs stamp on the taxes collected at the rate
of 4 per cent where the product enters with
exemption from the DFE.  With the introductionof the TEC, the WAEMU Commission intends torenegotiate the tariff concessions of all
Member countries.
15. Togo possesses 45 national standards,
all of which have been approved, in particular
on water, building materials and tinned foods.
It has dismantled most of the quantitativerestrictions on imports and those currently in
force are retained for reasons of health,
security or morals.  However, imports of
potatoes can be prohibited from August to
February, when local production covers localdemand.  The importation of gold requires
prior authorization by the Minister of Finance
and Economic Affairs.  Furthermore, within
the framework of the imports inspection
programme, execution of which was entrustedto the COTECNA company in 1995, all
importers of goods of an f.o.b. value exceeding
CFAF 1.5 million in the case of those arriving
by air or sea and CFAF 1 million in the case
of those arriving by land must complete an
Intention to Import form and lodge it with the
inspection company.  The COTECNAprocedures connected with the Intention to
Import take about two weeks.  Togo has no
national legislation regarding anti-dumping,
countervailing or safeguard measures.
16. Except for phosphates, which are still
subject to licensing, there are no longer any
quantitative restrictions on exports.  However,
the export of local food products can be
temporarily suspended in case of shortage.
The only export duties and taxes still in forceare levied on re-exports and transit
operations.  Thus, a special re-export tax
(TSR) is levied on rice and sugar at a rate of
1 per cent and on other products at a rate of
4 per cent;  vehicles are exempt.  In practice,no taxes are levied on transit operations to the
land-locked countries of the Sahel, although
the TS, the TPI and the customs stamp (TD)
are levied on transits to other countries.
17. In order to stimulate exports, the
Togolese authorities have provided foradvantages through the Investment Code and
established the free zone regime.  Thus,Togo WT/TPR/S/48
Page xiii
__________________________________________________________________________________enterprises approved under the Investment Code
which export part of their production are
exempted on a portion of their profits (for
calculating the corporate tax (IS)) and on a
portion of their turnover (for the calculation of
the minimum formula tax).  This is equal to aproportion of the turnover exported in the course
of a financial year as compared with the global
turnover excluding VAT.  In addition, enterprises
processing raw materials and intermediate
products of Togolese origin, representing invalue at least 60 per cent of the total purchases
of these materials and products entering their
factories enjoy total exemption from the
minimum formula tax for seven years.   The
enterprises with free zone status (they mustexport at least 80 per cent of their production)
enjoy, inter alia, partial exemptions from
customs duties, and tax exemptions, including
corporation tax.  Additional advantages are also
offered to them, in particular, the possibility of
having a foreign currency account, freedom to
transfer capital and preferential tariffs for portservices and the consumption of water, electricity
and telecommunications services (e.g. 6 per cent
discount for the telephone).
18. Since 1967 the prices of goods and
services have been fixed freely by the economic
operators in Togo, except for the prices of water,
electricity, petroleum products and gas, which
are regulated.  A bill to organize competition in
Togo has been placed before the NationalAssembly with a view to updating the provisions
of the price regulations and the rules applicable
in matters of competition.  This provision, which
is now being examined, envisages the
establishment of a National Competition andConsumption Commission.  In addition, new
impetus was given at the beginning of the 1990s
to the programme of State disengagement from
production and marketing operations, which had
been launched in 1983.
19. Intellectual property rights are protected
in Togo by the Bangui Industrial Property
Agreement signed by some 15 African countries,
under which the African Intellectual Property
Organization (AIPO) was set up, as well as by alaw of June 1991 and  its application texts to
protect copyright, folklore and related rights.
Work is in progress in AIPO to bring the
provisions of the Bangui Agreement into line
with the obligations of the WTO Member
countries contained in the Agreement onTrade-Related Aspects of Intellectual Property
Rights.  In Togo most of the disputes
concerning intellectual property (the most
common infringements mainly relate to the
counterfeiting of a trademark) are settledprivately:  the absence of coordination and the
limited resources of the administrative
departments acting in this area (including
those responsible for enforcement) are
probably the main reasons.
(ii) Policies by sector
20. The Togolese economy is organized
around its main port, the Lomé Autonomous
Port (PAL).  Most of Togo's foreign trade
passes through this port, which serves as a
transit point for goods intended for the land-locked countries of the Sahel such as Burkina
Faso, Mali and Niger.  Exploitation of this
position has encouraged the installation of
communication networks linking the port to
the land-locked countries and, at the sametime, the opening up of Togo to the outside
world.  The structure of the import duties, by
encouraging the transit and importation of
certain goods for which there is a strong
demand in the subregion, has also helped toensure the preponderance of the services
sector within the Togolese economy.  The
social and political crisis that Togo
experienced at the beginning of the 1990s
impaired the dynamism of this sector, whichthe Government is currently trying to restore.
However, the State continues to have a strong
presence in the sector through its wholly
owned enterprises.
21. The agricultural sector has been
substantially liberalized and price controls on
most products have been abolished.  Thisliberalization has encouraged the arrival of
private exporters in areas such as coffee andWT/TPR/S/48 Trade Policies Review
Page xiv
__________________________________________________________________________________cocoa.  However, cotton, Togo's main cash crop,
continues to be dominated by a State- owned
company, the Togolese Cotton Company, which
intervenes in production (outreach action) and
marketing.  One of the chief problems facing
agriculture in Togo is that of storing andpreserving produce, which is the reason for
major seasonal price fluctuations (very low
prices at harvest time and excessively high prices
during transition periods and drought years).
This problem is aggravated by the lack ofinfrastructure which makes access to certain
regions difficult (particularly during the rainy
seasons), including the main production areas.
Agriculture also suffers from the difficulty of
access of peasant farmers to credit.
22. Limited to the exploitation of phosphate
and limestone, the mining activities, which so far
have been dominated by a State-owned company,
the Togolese Phosphates Office (OTP), could be
developed with privatization, including that of
part of this enterprise's capital, which is
envisaged as part of the measures formulated bythe Government to attract investors into the
sector.  The Mining Code was revised in 1996 to
that end.  Furthermore, in terms of import duties,
the mining sector is the least protected in Togo.
23. Since 1989, the free zone regime has
reflected the direction given to Togo's industrial
policy, namely the promotion of export-oriented
enterprises (particularly industrial ones).
Despite the potential of the Togolese economy
for development of this sector, factors such as thesocial and political crisis, the structure of the
import duties, which the advantages offered by
the various codes should correct, the lack of
integration of the various sectors and the
increase in the cost of inputs as a result of thedevaluation of the CFA franc in 1994 have held
back industrial development in Togo.  The
manufacturing sector is the most protected (in
terms of import duties) of all economic activities
in Togo and, in fact, a large number of products
of the sector are subject to import duties of over
20 per cent.  However, the negative escalation ofthese duties, from semi-finished products to
finished products, could hold back, withoutprejudice to exemptions, the development of
final processing activities in Togo;  this could
be an explanation for the predominance of the
production of semi-finished goods in the
sector.
24. The preponderance of State-owned
enterprises in the services sector is a reflection
of the slowness by the Togolese authorities in
liberalizing this sector.  Moreover, the
bindings carried out by Togo remain limited to
the measures relating to the modes ofsupplying construction and related
engineering services, tourism and travel-
related services and recreational, cultural and
sporting services;  this does not reflect the
liberalization effort unilaterally carried out byTogo in this sector.
(4) 
TRADE POLICIES AND TRADING
PARTNERS
25. The major liberalization efforts
unilaterally carried out by Togo were
undermined by the social and political crisisthat shook the country from 1991 to 1993.  The
Togolese economy is recovering slowly from
this experience, and Togo possesses the
necessary potentialities to take up such a
challenge.  Its economy, which is among themost open in the West African subregion, has
generally operated according to market rules,
even at a time several State-owned enterprises
were operating there.  The main constraint
remains investment, especially foreigninvestment, which has been at a low level since
the crisis.
26. The establishment of the WAEMU
customs union could increase the nominalprotective tariff and the rates of effective
protection in Togo.  Since the Togolese
economy is already quite liberal in
comparison with those of other WAEMU
countries, the advent of the union should not
cause too much anxiety to local producers:
Togolese products did not receive strongcompetition from products from other
WAEMU members following the devaluationTogo WT/TPR/S/48
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__________________________________________________________________________________of the CFA franc.  Given its current advantages,
in particular, its infrastructure, Togo could
become one of the poles of attraction for the
investment that the establishment of the customs
union should encourage, with access to the
markets of the union being at stake.  However,the advantages provided by Togo's free zone
regime could be compromised by the entry into
force of the Community Investment Code, since
Togo is one of the few countries of the union to
have managed to establish one;  that regime isalso greatly preferred by investors to that of the
Investment Code.
27. Togo would like technical assistance to
be provided so as to help the WTO Agreementsbecome better known.  In accordance with thewishes of the Togolese authorities, this
assistance should, inter alia, enable the
country to identify the opportunities offered
by the multilateral trading system and gain a
better understanding of the scope of its
undertakings so that they may be betterrespected.  In addition, as the bindings carried
out by Togo fall short of the liberalization
efforts undertaken by the country in trade in
services, such assistance could help to
improve its performance in this area and, bygiving investors confidence in the irreversible
nature of the reforms, attract finance,
especially from abroad.