WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/TPR/G/131 
24 May 2004  
 
(04-2118) 
Trade Policy Review Body Original: French 
   
 
  
 
TRADE POLICY REVIEW 
 
BENIN 
 
Report by the Government 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by the Government of Benin is attached. 
 
 
Note: This report is subject to restricted circul ation and press embargo until the end of the meeting 
of the Trade Policy Review Body on Benin. Benin WT/TPR/G/131 
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CONTENTS 
 
 
           Page 
 
I. INTRODUCTION .................................................................................................................. .... 5 
II. ECONOMIC ENVIRONMENT ................................................................................................. 5  
(1) GENERAL ECONOMIC ENVIRONMENT  .......................................................................................... 5  
(2) ANALYSIS  OF THE  ECONOMY  BY SECTOR ....................................................................... 6  
(a) Primary sector ................................................................................................... 6  
(b) Secondary sector ............................................................................................... 7  
(c) Tertiary sector ................................................................................................... 7  
III. TRADE POLICY AND PRACTICE .......................................................................................... 8  
(1) GENERAL ECONOMIC AND TRADE POLICY OBJECTIVES  .............................................................. 8  
(2) SECTORAL TRADE POLICY OBJECTIVES  ....................................................................................... 8  
(a) Agriculture ........................................................................................................ 8  
(b) Services ........................................................................................................... 10  
(c) Industry ........................................................................................................... 11  
(d) Informal trade ................................................................................................. 13  
(e) Energy ............................................................................................................. 13  
(f) Strengthening economic competitiveness ....................................................... 14  
(g) Controlled economic management ................................................................. 15  
(h) Poverty alleviation .......................................................................................... 16  
(3) GENERAL DESCRIPTION OF TH E IMPORT AND EXPORT REGIME  ................................................. 17  
(a) Imports ............................................................................................................ 17  
(b) Exports ............................................................................................................ 17  
(4) TRADE POLICY FRAMEWORK  .................................................................................................... 17  
(a) Laws and regulations governing the implementation of trade policy ............. 17  
IV. FRAMEWORK FOR TRADE POLICY FORMULATION AND  
IMPLEMENTATION ............................................................................................................... 18 
(1) LEGISLATIVE AND REGULATORY FR AMEWORK FOR TRADE POLICY  ......................................... 18  
(a) Improvement of the institutional and regulatory environment for 
trade ................................................................................................................ 18 
Institutional measures ......................................................................... 18 Legislative and regulatory measures .................................................. 19 General conditions for setting up  a trading enterprise ........................ 20 
(2)
 INSTITUTIONAL STRUCTURE FOR TR ADE POLICY FORMULATION AND 
IMPLEMENTATION  ..................................................................................................................... 20  
(a) Trade development institutions ....................................................................... 20  
V. ECONOMIC  AND  TRADE PO LICY INSTRUMENTS ....................................................... 22  
(1) TARIFF MEASURES ..................................................................................................................... 22 
Customs duties ............................................................................................................. 22  WT/TPR/G/131 Trade Policy Review 
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Export taxes ..................................................................................................................  23 
Degressive protection tax ............................................................................................. 23 Common External Tariff .............................................................................................. 23 Domestic taxes ............................................................................................................. 23  
Customs valuation ........................................................................................................ 23 
(2)
 OTHER ECONOMIC AND TRADE POLICY INSTRUMENTS  ............................................................. 23  
(a) Preshipment inspection ................................................................................... 23  
(b) Community competition code ......................................................................... 24  
VI. CONCLUSION .................................................................................................................... ..... 24  
 
  Benin WT/TPR/G/131 
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I. INTRODUCTION 
1. Benin is a West African country bordered to the east by Nigeria, to the west by Togo, to the 
north by Burkina Faso and Niger,  and to south by the Atlantic Ocean. 
2. Benin covers an area of 114,763 km2...The  population was estimated at 6.75 million by the 
last population and housing census in 2002.  The rate  of demographic growth is 3.2 per cent per 
annum. 
3. Annual per capita income is US$390, placing Benin among the world's least developed 
countries. 
4. Benin is a secular, democratic socialist repub lic, and has been independent since 1 August 
1960. 
5. Under the Constitution of 11 December 1990, Beni n is governed by a presidential regime.  
The President is elected by universal suffrage for a five-year renewable term of office, and the age limit for candidates in presidential elections is 70 years.   
6. The President of the Republic holds executiv e power;  he determines State policy and 
appoints the members of the Government. 
7. The current President of the Republic of Benin is General Mathieu KEREKOU, who is 
serving a second term in office since elections were held in March 2001. 
8. Legislation in enacted by the National Assembly which is composed of 83 deputies. 
9. Since the adoption of Law No. 97-028 of 15 January 1999 organizing the territorial 
administration of the Republic of Benin, the country  has been divided into twelve departments each of 
which is placed under the authority of a Prefect. 
II. ECONOMIC ENVIRONMENT 
(1) G
ENERAL ECONOMIC ENVIRONMENT  
10. Since the first trade policy review in 1997 Be nin has continued the reform process begun in 
1990, under various structural adjustment progr ammes, with particular emphasis on poverty 
reduction.  Within this framework, while conti nuing its macroeconomic stabilization and structural 
reform programme, Benin has defined the main objec tives of its poverty reduction strategy, which  are 
to control government finance, support the common monetary policy  of the West African Economic and Monetary Union (WAEMU) and speed up structural  reforms (cotton subsector and public sector). 
11. Since the 1990s Benin has experienced an irre gular pattern of renewed economic growth.  
Thus, the growth rate of the gross domestic product (GDP) rose from 5.7 per cent in 1997 to  5.8 per 
cent in 2000, and 6 per cent in 2002. 
12. This trend was influenced by the 1998 energy cr isis and the  dramatic fall in earnings from the 
primary sector, given the serious difficulties faced by the main component of the sector, cotton, as a result of the payment of subsidies to cotton producers in certain developed countries. 
13. Benin has benefited from the implementati on of the WAEMU Common External Tariff 
(CET) since 31 January 2000.  In comparison to the previous five-year period (1992-1996), the WT/TPR/G/131 Trade Policy Review 
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economic situation has improved and the average grow th rate has climbed from 4.6 per cent to 5.2 per 
cent. 
14. Tertiary sector activities continue to domin ate Benin's economy, generating added value 
amounting to 48.5 per cent of GDP on average. 
15. From the early 1950s to the present day, Benin' s formal foreign trade has been characterized 
by an incremental increase in the structural trade deficit. 
16. The relatively high level of external trade is la rgely due to the volume of re-export activity.  
Benin's imports consist primarily  of food products,  capital goods, textiles, energy products and 
pharmaceuticals.    
17. Cotton products (fibres and seeds) are the chief exports, representing approximately 70 per 
cent of the total volume of exports.  Cashew nuts rank second, followed by tobacco and cigarettes. 
(2) ANALYSIS  OF THE  ECONOMY  BY SECTOR 
(a) Primary sector 
18. The primary sector accounts for slightly more  than one-third of GDP and provides 
employment for more than 65 per cent of the act ive population.  In terms of added value, it 
contributes on average 37 per cent to GDP formation.   The contribution of the primary sector to GDP 
growth developed unevenly between  1997 and 2002, falling from 2.3 per cent in 1997 to 1.7 per cent 
in 1999, before rising to 2.6 per cent in 2000. 
19. Agriculture, mainly cotton, palm oil and subsis tence crop production,  accounts for a 
significant proportion of GDP (37 per cent) and employs 70 per cent of the economically active 
population. 
20. All things considered, the primary sector is  plagued by fluctuating circumstances and 
shortcomings which prevent many of its  participants from overcoming poverty. 
21. The fisheries subsector  employs more than 43, 000 fishermen, 4, 000 of whom ply their 
trade at sea over an area of 3,100 square kilo metres, while 39, 000 work on inland bodies of water 
covering 6,700 hectares.  The fish catch amounts to 42,000 tonnes and fish consumption is close to 
60,000 tonnes.  The fisheries subsector provides a livelihood for over  300,000 persons.  Despite its 
social and economic importance, the subsector is not paid much attention and its development is 
thwarted by unresolved difficulties relating to the sal e of fish products, the deterioration of river and 
lagoon environments due to sedimentation and the filling of bodies of water. 
22. No policy exists for the promotion of aquaculture , which  is also handicapped by a lack of 
resources (credit-management) and poor in formation on fish species for breeding. 
23. Livestock subsector .  Almost the entire population of livestock animals may be divided into 
two traditional systems: pastoral and agro-pastoral  farming.  Domestic herds are estimated to 
comprise approximately 1,350,000 bovine animals, 1,650, 000 small ruminants, 500,000 pigs and 10,000,000 poultry of all types, which ar e all raised under the pastoral system. 
24. Commercial stock-raising is relatively limited a nd is based on the use of imported inputs. The 
animals raised are mainly rabbits, cane ra ts, poultry and pigs of  imported stock. Benin WT/TPR/G/131 
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25. This subsector plays an important role in domestic food production. 
(b) Secondary sector 
Industry 
26. The secondary sector is much less important to the productive capacity of Benin.  It employs 
less than 10 per cent of the labour force and on av erage contributed 14 per cent  to GDP formation 
between 1997 and 2001.  Its contribution to growth is insignificant;  from 0.6 per cent in 1997, it 
declined until 1999, before improving in 2000 and 2001, at rates of 1.3 and 1.4 per cent respectively,  
which is explained by the low level of investment in industry. 
(c) Tertiary sector 
27. Trade is the main activity in the tertiary sector .  It contributes close to 18 per cent of GDP 
formation on average but, for the most part, is co ncentrated in the informal sector.  Many of the 
poorest inhabitants engage in trading activities,  sometimes with the support of micro-finance 
facilities, confining themselves to micro-sales,  as a means of earning a subsistence income. 
28. The tertiary sector has consistently played a lead ing role in the economy of Benin.  It is the 
largest sector in terms of value added to GDP form ation (48.5 per cent of GDP).  Its share of GDP 
growth was 2.9 per cent in 1997 and 2.4 per cent in 2001 , falling to its lowest level, 1.9 per cent, in 
1998 and 2000.    
29. The transport subsector, an important branch of the tertiary sector, accounted for between 7 
and 8 per cent of economic activity during the period under consideration, and is primarily geared 
towards facilitating trade. It provides earnings in th e form of transit fees from international traffic 
(one-quarter of total traffic in the port of Cotono u, and almost two-thirds of rail traffic by the 
Organisation Commune Bénin-Niger des chemins de fer  (OCBN)), and promotes domestic products 
by providing links for them to reach local and regional markets. 
30. Transport is a major provider of jobs, despite the predominance of informal activities, which 
not doubt explains the low level of recorded earnings.  
31. The various modes of transportation exhibit shortcomings that need to be corrected. 
32. Maritime transport operations centred on the port constitute an essential trade link and 
deserve proper support to develop their full potential as a catalyst for port activity. 
33. The state of rail transport is a cause for concern.   Although it was restructured in the 1990s, 
the Organisation Commune Bénin-Niger des chemins de fer  is still besieged by problems, which have 
been exacerbated by competition from large carrier s following the asphalting of the Savè-Parakou and 
Parakou-Malanville roads. 
34. Road transport services are mainly provided by small poorly organized companies that 
operate with a few aging vehicles and without any market research. 
35. Air transport is marginal, with the exception of the Cotonou airport, which provides no 
domestic service.  WT/TPR/G/131 Trade Policy Review 
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III. TRADE POLICY AND PRACTICE 
(1) GENERAL ECONOMIC AND TRADE POLICY OBJECTIVES  
36. The Government Action Programme (PAG) a dopted by General Mathieu KEREKOU and his 
new Government at the conclusion of a semina r held from 7 to 9 June 2001 will enhance the 
Government's efforts to fulfil its constitutional mand ate and to plot a course determined on the basis 
of the guiding principles underpinning popular support for the Government's social project.  
37. The programme fully reflects the vision, appr oach and development objectives identified  
through long-range national studies initiated by the G overnment in 1996.  It was devised with an eye 
to the necessary transition toward s the Benin of 2025, "an exempl ary country, well governed, united 
and peaceful, with a prosperous and competitive economy,  structural influence and social well-being.  
38. The aim is to steer Benin's social and economic environment towards a harmonious, peaceful 
and prosperous future, and this involves the identif ication and consideration of precise and coherent 
multisectoral objectives, sensibly planned in terms of time and space. 
39. At the sectoral level, nine broad objectives have been outlined for implementation within 
precise time-frames, and these constitute the bluepr int for the Government's programme of action: 
 - Consolidation of democracy and good governance; 
  - strengthening the material basis of the economy;   - enhancing economic competitiveness; 
 
 - skilful management of the economy and public finance;   - regional planning and balanced development;   - intensified action to combat poverty; 
 
 - youth, gender and development;   - strengthening national unity and mana gement of social welfare programmes; 
 
 - promotion of international in fluence and African integration. 
  
(2) S
ECTORAL TRADE POLICY OBJECTIVES  
40. The specific objectives for strengthening the mate rial basis of the economy are summarized as 
follows: 
(a) Agriculture  
41. The Government's agricultural policy involves: 
 - Modernizing and developing agricultur e through improved modes and means of 
production, agricultural diversification, conservation and processing of agricultural 
products. Benin WT/TPR/G/131 
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42. In order to achieve this objective, the Govern ment of Benin intends to take the following 
action: 
 - Implement the declaration on rural development policy; 
 
 - implement the rural development master plan;   - reduce the factors of production through taxation and all other appropriate measures; 
 
 - support the promotion of local know ledge and appropriate technologies; 
  - create professional organizations and organizations for the management of 
agricultural industries; 
  - adopt measures to promote c onsumption of local products; 
 
 - draft plans for the development and impl ementation of schemes to promote certain 
agricultural products such as cassava and cashew nuts;  and 
  - ensure adequate funding for agriculture by: 
 
- Preparing an action plan for sustainable financing of  agriculture, livestock 
and fisheries; 
 
- continuing support for funding mechanisms specializing in agriculture. 
 
Animal production 
43. The aim of the Government is to modern ize animal production systems by promoting 
development of the livestock sector and the sust ainable development of small-scale fishing. 
44. The implementation of the following measures is essential to achieving this objective: 
 - Strengthening  technical support for producers; 
 
 - implementation of development policy;   - strengthening follow-up in health matters and veterinary inspection; 
 
 - special programme to combat epizootic diseases; 
  - development of fodder crops a nd management of water supply; 
  - preparation and implementation of the code on fisheries;  
 - development of fish farming on bodies of water; 
  - promotion of fishery products (processing and marketing);   - study for the construction of a small-scale fishing port. WT/TPR/G/131 Trade Policy Review 
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(b) Services 
Tourism 45. The Government's objectives  in the area of tourism include: 
 - Promotion of tourism development th rough the management of tourist sites; 
  - promotion of tourism resources and incentives to stimulate private investment in the 
tourism sector. 
 
46. This objective could be achieved by: 
 - Implementing the tourism plan of action; 
  - establishing a job training centre for the tourism sector;   - establishing a regional tourist development agency; 
 
 - classifying tourist sites and resources;   - concluding partnership agreements aimed at  building hotel and tourist infrastructure, 
particularly world class hotels. 
 
Craft trades 
47. The Government intends to promote the developm ent of crafts by improving the institutional 
and regulatory framework and putting pr omotional strategies into action. 
48. This objective could be met through: 
 - The organization of national and internati onal trade fairs and exhi bitions (trade shows 
to promote culture, crafts and tour ism and specialized exhibitions); 
  - media promotion of crafts sector.  Telecommunications 
49. The Government has set the following goals for the telecommunication sector: 
 - Development and modernization of te lecommunications by raising fixed-line 
teledensity telephone services from 1 per cent in 2001 to 4 per cent in 2005; 
  - development of inter-city telecommunication infrastructures; 
 
 - development and modernization of inte rnational telecommunication infrastructures. 
 50. The steps envisaged for achiev ing this objective include: 
 - Continued reform of the telecommunication sector; 
 Benin WT/TPR/G/131 
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 - completion of the  SAT 3 submarine cable link to Cotonou. 
 Transport 
51. Action will be taken to improve  the transport network, enhance the port's competitiveness and 
develop and modernize airport infrastructure. 
52. The construction and repair of major roads and modernization of the rail network will also be 
undertaken. 
53. This objective can be achieved by: 
 - Establishing community-wide computer links for port users; 
 
 - extending wharves; 
  - building a second port and/or dry dock;   - redeveloping the airport cargo and passenger terminals and airport parking facilities; 
 
 - renovating the Cotonou control tower;   - continuing management reforms in the Organisation Commune Bénin-Niger des 
chemins de fer; 
 
 - building and repairing rural dirt roads.  54. The building and repair of rural dirt roads entails the improvement and maintenance of 
11,700 kilometers of such roadways in all departments. 
(c) Industry 
55. The Government's aim is to revitalize the industrial sector through the adoption and 
implementation of a national strategy for the develo pment of industry and of small and medium-sized 
enterprises and industries. 
56. In pursuit of its vision for the industrializa tion of Benin, the Government has drawn up basic 
guidelines:   
 - Protection of existing industrial potential; 
  - increasing the density and diversity of the industrial fabric.  57. These guidelines form part of the economic liberalization package adopted during the 
Conference des Forces Vives de la Nation  (Conference of the nation's vital forces) in February 1990 
and arose out of decisions taken at the Nati onal Economic Conference in November 1996, which 
advocated:   
 - Total withdrawal of the State from the productive sector in general, and the industrial 
sector in particular; 
 
 - total involvement of the private sector in production; WT/TPR/G/131 Trade Policy Review 
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 - promotion of the private sector as  the true catalyst for industrial growth in Benin;   - the role of the State as the organizing  force for the institutional environment and 
regulator of the domestic economy. 
 58. The above-mentioned guidelines provide for the following objectives : 
 -  To ensure the sustainability of the existing industrial fabric; 
 
 - to promote the establishment and deve lopment of new and competitive industrial 
enterprises; 
  - to strengthen the instituti onal and regulatory environment; 
  - to promote frameworks for trade and coordination among the actors in the industrial 
sector; 
  - to strengthen business capacity and management structures.  59. In order to achieve these objectives, several steps involving government departments, the 
private sector and development partners are envisag ed.  The most important of these steps are the 
following: 
 - Restructuring or rehabilitation of existing industries; 
  - creation and operation of an industrial assistance fund;  
 - encouraging the consumption of local industrial products; 
  - specific mechanisms and instruments for the promotion of small and medium-sized 
enterprises (SMEs) and small and medium-sized industries (SMIs); 
 
 - continued improvement of the ins titutional and regulatory environment for 
enterprises; 
  - consolidation of instruments that fost er the promotion and  diversification of 
industrial output; 
 
 - promotion of research into crops other than cotton;   - establishment of a domestic instituti onal framework tailored to manufacturers, 
following consultations between the Government and the private sector; 
 
 - establishment of sectoral institutional fram eworks of a vocational nature, geared to 
manufacturers, in consultation with the private sector; 
  - promotion of the required synergy between  industries and research, development  and 
technical training institutions. 
 Benin WT/TPR/G/131 
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60. These steps are to be coherently implemented in the process of industrial development.  Some 
of them involve texts or administrative procedur es designed to facilitate harmonious and optimal 
development of the industrial sector.  Others i nvolve incentives aimed at attracting capital to the 
sector, as well as investment projects, designed in so me cases to bolster basic infrastructure crucial to 
the expansion of the sector, and in others to prom ote human capital in order to boost productivity and, 
by extension, Benin's industrial competitiveness.  Th e different measures are to be funded by the State 
and/or the private sector.  The establishment of a suitable institutional framework could provide an 
incentive for private economic operators to  invest more resources in the sector. 
(d) Informal trade 
61. Informal trade occupies an important place in Beni n's trade transactions with the rest of the 
world. 
62. Although most informal trade involves smuggling,  surveys on informal imports and exports 
have been conducted by the Laboratoire d'Analyse et de Recherche  (LARES) and the National 
Institute of Statistics and Economic Analysis (INSAE). 
Unrecorded  imports 
63. LARES has estimated the value of unrecorded imports from Nigeria in 1999 at approximately 
100 billion CFA francs, making that country Benin's main supplier, as opposed to France, which ranks 
first according to the official statistics.  An IN SAE estimate of imports from all sources for the same 
year showed that unrecorded imports totalled roughly 104 billion CFA francs.  It should be noted that 
official imports amounted to less than 429 billion CFA francs. 
Unrecorded exports 
64. Unrecorded exports have been estimated by the national accounting department of INSAE , 
using 1999 as the base year,  at approximately 140 billion CFA francs. 
65. The main products exported by Benin to border ing countries are frozen chicken,  fabrics, 
second-hand vehicles, worn clothing, ca nned tomatoes, and yam, among others. 
66. Nigeria is Benin's main customer, particular ly for trade in used vehicles and certain 
agricultural products. 
Re-export 67. Apart from a low level of official re-exports, in  quantitative and monetary terms, an informal 
trade in the re-export of prohibited products, or products which attract very high customs duties in 
Nigeria has emerged.  Several products are i nvolved and they vary depending on the economic 
climate and trade policy measures in Nigeria. 
68. Re-export traffic provides an income for many persons in Benin and provides the Government 
with substantial tax revenue.  The revenue from  around ten or so re-exported goods was estimated at 
more than 31 billion CFA francs in 1997. 
(e) Energy 
69. The Government intends to provide energy at  competitive rates by increasing the capacity for 
electricity production and developi ng new and renewable energy sources. WT/TPR/G/131 Trade Policy Review 
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70. This objective could be achieved through: 
 - The renovation of solar power stations a nd expansion of the network to include 20 
new sites; 
 
 - support for the inter-State gas pipeline project; 
  - promotion of biogas and substitution of gas for coal in households;   - efforts to encourage the substitution of natural gas for fuel in industrial use; 
 
 - the creation of a regional centre for rese arch and development of new technologies to 
promote the use of new and renewable energy sources. 
 (f) Strengthening economic competitiveness 
71. One of the specific objectives in this area is to improve the economic environment for 
enterprises. 
72. This objective can be achieved only through: 
 - Analysis and implementation of business-friendly measures;   
  - review of Benin's trade law; 
 
 - adoption of legislation on competition;   - adoption and implementation of a national trade development policy; 
  - promotion of an interface for foreign investors; 
 
 - a special SME/SMI promotion programme;   - strengthening the standardiza tion and quality control system. 
 
73. Continued economic liberalization. 
 
74. Various approaches to economic liber alization have been envisaged: 
 - Adoption of regulations on economic liberalization; 
 
 - continued liberalization of the wate r, energy and telecommunication sectors; 
  - continued liberalization of the cotton industry;   - continued implementation of the private sector revitalization programme.  Benin WT/TPR/G/131 
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(g) Controlled economic management 
75. The Government's specific objectives for the controlled management of the economy and 
finances include the following: 
76. - Capacity building for the strategic management of development and macroeconomic 
management through: 
 
 - Implementation of a prudent monetary policy for improved inflation control and 
sustainable growth; 
 
 - control of the prices of mass consumption goods; 
  - improved public expenditure management ;   - adoption of an economic policy that conforms with macroeconomic convergence 
criteria within the West African Economic and Monetary Union. 
 
77. - Reorganization of the State's portfolio: 
 - Improvement of mechanisms for the  mobilization of resources. 
 78. The attainment of these objectives will requi re the following steps to be taken: 
 - Maintaining the rate of inflation below 3 per cent; 
  - continuation and strengthening of structural reforms;   - expansion of storage capacity and creation of cereal buffer stocks;  
 - greater control over public expenditure commitments; 
  - adherence to convergence criteria in the formulation and implementation of economic 
policies; 
 
 - settlement of arrears in domestic State debt; 
  - streamlining payment procedures in the area of State expenditure;   - improvement in capacities for fund rais ing and monitoring the management of 
mobilized resources. 
 79. - Continuation of budgetary reforms: 
 - strengthening domestic fi nancial institutions;  and  
  - streamlining the management of public enterprises. 
 
80. The achievement of these objectives calls for the following steps to be taken: WT/TPR/G/131 Trade Policy Review 
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 - Consolidation of reforms aimed at increasing State revenues; 
  - centralized management of the revenue of autonomous bodies under the general State 
budget; 
 
 - managed preparation of a standardized budget;   - sound implementation of the code on public procurement; 
 
 - capacity building for the preparation, follow-up and evaluation of public investment 
programmes and projects; 
  - development and reinforcement of micro-credit structures;   - reorganization and restructuring of public enterprises, 
 
(h) Poverty alleviation 
81. With a view to stepping up action to combat  poverty, the Government has set the following 
goals, among others: 
 - Implementation of recommendations cont ained in the Poverty Reduction Strategy 
Paper (PRSP); 
  - implementation of a policy to protect the most disadvantaged groups;   - improvement of health indicators;  
 - raising the rate of health infrastructure coverage from 80 per cent in 2001 to 100 per 
cent by 2006; 
  - combating HIV/AIDS, malaria and other major diseases;  
 - promotion of basic education; 
  - promotion of low-cost housing provision;   - extending the electricity grid by raising coverage from 22 per cent in 2001 to 27 per 
cent by 2006. 
 82. The Government has prepared the following plan of action in order to achieve the objectives 
deemed to have priority in the fight against poverty: 
 - Raising public awareness of the Poverty Reduction Strategy Paper (PRSP); 
 
 - promotion of micro-finance activities; 
  - preparation and implementation of the social welfare policy;   - improved in the functioning of existing health structures; 
 Benin WT/TPR/G/131 
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 - strengthening capacity for the preservation of vaccines; 
  - capacity building for the management of expanded vaccination programmes;  
 - training of hygiene specialists, health technicians and health wardens; 
  - implementation of the national strategy to combat HIV/AIDS;   - ensuring a regular supply of anti-retrovira l drugs to health centres for the improved 
care of persons living with HIV/AIDS. 
 
(3) G
ENERAL DESCRIPTION OF THE IMPORT AND EXPORT REGIME  
General rules 
83. In the framework of the trade liberalization polic y, statutes or regulations deemed restrictive 
have for the most part been rescinded or amended. 
(a) Imports 
84. Import licences were eliminated under the Stru ctural Adjustment Programme (Law No. 90-
005 of 15 May 1990 and Law No. 93-007 of 29 March 1993) in an effort to promote economic liberalization. 
85. However, the importation of certain goods  is prohibited for health reasons.  
86. The importation of goods that are dangerous to hu man health and State security is subject to 
special authorization. 
(b) Exports 
87. Beninese exports merely require an authoriza tion from the Directorate of Foreign Trade.  
88. In order to maintain the country's natural res ources (flora), exportation of teak in the rough is 
prohibited, and only processed wood may be exported. 
(4) T
RADE POLICY FRAMEWORK  
(a) Laws and regulations governing th e implementation of trade policy 
89. The Constitution is the supreme law of the Republic  of Benin.  Legislative power is in the 
hands of a single national assembly. 
90. The National Assembly adopts the laws, includi ng finance laws setting the Government's 
income and expenditure targets. 
91. The President of the Republic has the power to negotiate and conc lude international 
agreements, and may delegate that power to a mini ster or a member of the Executive.  Where it is 
necessary to amend laws to make them consistent wi th the provisions of an agreement, the Parliament 
must pass a law authorizing that amendment. WT/TPR/G/131 Trade Policy Review 
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92. Trade policy is applied by several govern ment institutions and executive bodies.  The 
Minister responsible for trade may submit draft laws if need be. 
93. The laws relating to trade cover several areas: 
 - Tourism; 
 
 - control of goods;   - competition;  
 - weights and measures; 
  - investment;   - banking and finance;  
 - trade activities; 
  - privatization. 
 
IV. FRAMEWORK FOR TRADE POLICY FORMULATION AND  IMPLEMENTATION 
(1) LEGISLATIVE AND REGULATORY FRAMEWORK FOR TRADE POLICY  
(a) Improvement of the institutional and regulatory environment for trade 
Institutional measures 
94. Important measures have been taken by the G overnment, within the framework of various 
structural adjustment programmes, in an effort to  create an institutional and regulatory environment 
favourable  to the development of trade. 
95. The measures relating to the instituti onal environment include the following: 
 - The establishment of the Centre de Formalité des Entreprises  (Centre for Business 
Formalities) commonly referred to as the "single window", established by Decree No. 
97-292 of 19 June 1997.  Its purpose is to pr ovide a one-stop, expedited and low-cost 
service enabling domestic and foreign economic operators, natural or legal persons, to 
complete the formalities and declarations required by the laws and regulations in 
force, in connection with the legal, administ rative, social, fiscal and statistical aspects 
of setting up businesses, modifications thereto, establishing secondary establishments, 
winding-up of operations, and the dissolution of companies; 
  - the establishment of the Association de Dével oppement des Exportations   (Export 
Development Association (ADEX)), bringi ng together public and private sector 
representatives involved in the export chain, in order to promote, develop and 
diversify production and exports.  The A ssociation uses support funds, under a shared 
cost formula, to conduct studies on existi ng industries and on products with high 
export potential.  It also helps to finance activities in support of enterprises in the export chain and their association;  Benin WT/TPR/G/131 
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 - the establishment of promotional mech anisms such as the Business Opportunities 
Centre ( Observatoire des Opportuni tés d'Affaires- OBOPAF )  and the  Benin 
Standardization and Quality Control Centre (CEBENOR); 
 
 - the establishment of mechanisms for consultation among the actors in various sectors 
of activity:   
   - Textiles, fruits and vegetables, cashew nuts; 
 
  - oilseeds and cassava;     - cement and petroleum products.   - introduction of an information system to facilitate the regulation of prices and stocks; 
 
 - establishment of an industrial free zone at Sème Kraké, in the de partment of Ouémé. 
 Legislative and regulatory measures 
96. Under this heading, mention may be made of the adoption of Law No. 90-005 of 
15 May 1990 laying down the conditions for the ex ercise of trading activities in the Republic of 
Benin, as an important step towards economic liberalization.  It guarantees non-discrimination between public and private, domestic and foreign ec onomic operators in terms of the conditions for 
setting up businesses and engaging in trade.  The la w has also made it possible to lift a number of 
trade restrictions, through the elimination of: 
 - The need for prior approval by the Minist er responsible for trade of the establishment 
of foreign traders in Benin or the tran sfer to a local bank of foreign currency 
equivalent to one hundred m illion (100,000,000) CFA francs; 
  - all forms of quotas or prohibitions on importe d goods, with the exce ption of  products 
considered hazardous to human or animal life or to State security; and  
 
 - the obligation for importers to justify inv estment in fixed capital after three years of 
economic activity. 
  
General conditions for setting up a trading enterprise  
97. The conditions to be met by all traders, dom estic and foreign, in setting up business and 
engaging in trade in the Republic of Benin may be summarized as follows: 
 - Registration in the trade register kept by the registry; 
  - possession of a professional trader's permit (issued by the office responsible for 
domestic trade); 
  - registration with the Benin Chamber of Commerce and Industry .  WT/TPR/G/131 Trade Policy Review 
Page 20 
  
98. Unlike the situation under the former law, wher eby only foreigners were required to obtain a 
professional trader's permit in order to engage in activity in Benin, under the new law such  permits 
are to be issued to all categories of local and fore ign traders, on the basis of uniform criteria defined 
by Council of Ministers decrees. 
(2) INSTITUTIONAL STRUCTURE FOR TRADE PO LICY FORMULATION AND IMPLEMENTATION  
99. The Ministry of Industry, Trade and Employme nt Promotion is responsible for devising and 
implementing and administering trade policy in Be nin, in cooperation with the competent State 
institutions, viz: 
 - The Ministry of Finance and the Economy (Economic Affairs, Customs and Indirect 
Taxation, and General Budget Departments); 
  - the Ministry of Planning, Forecasting and Development;    - the Ministry of Agriculture, Livestock and Fisheries;  
 - the Ministry of Justice, Legislation and Human Rights, among others. 
 100. Trade policy measures are devised and elaborated in cooperation with the private sector 
(Benin Chamber of Commerce and Industry,
 Chamber of Agriculture, National Council of Employers 
(Conseil National du Patronat ), National Consumers' Associa tion and other trade institutions. 
(Association Nationale des consommateurs ). 
(a) Trade development institutions  
101. The institutions involved in the develo pment of trade are as the following: 
102. The bodies responsible for export promotion: 
 - The Benin Foreign Trade Centre; 
  
 - the National Export Council; 
   - the Export Development Association.  (Association de Développement des 
Exportations)  
 103. The bodies responsible for trade information: 
 - The Benin Business Opportunities Centre; 
  - the Benin Chamber of Commerce and Industry.  
104. The body responsible for investment promotion: 
 - The Investment Promotion Centre. 
 105. The Inter-Institutional Commission (CII) 
106. In the area of multilateral trade negotiations, th e Government of Benin, with the support of 
the Joint ITC/UNCTAD/WTO Integrated Technical A ssistance Programme (JITAP), has established Benin WT/TPR/G/131 
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an inter-institutional Commission with responsibility for follow-up and application of World Trade 
Organization (WTO) agreements. 
107. The Commission was established by Decree No. 99-022 of 22 January 1999,  and consists of 
roughly 40 members representing the ministries i nvolved in the management of the multilateral 
trading system, the private sector and civil society.  It is made up of  four working groups on issues 
related to topics under negotiation at the WTO:   
 - Working group on goods; 
  - working group on services; 
 
 - working group on the trade-related aspects of intellectual property rights ;   - working group on the Singapore issues.  108. The Commission's function among other things, is to: 
 - provide a consultative platform to assist  in decision-making on trade policy and to 
ensure coordination of the legislative a nd institutional adjustments required under 
commitments undertaken within the frame work of regional, plurilateral and 
multilateral trade agreements; 
 
 - serve as a forum for the analysis and offe r of negotiations for Benin, to prepare and 
assist participants in future trade negotia tions on the basis of a positive agenda and 
clearly defined objectives; 
  - ensure coherence between regi onal and multilateral trade objectives. 
 
109. All in all, through its activities the inter-i nstitutional Commission has increased understanding 
of the issues at stake in multilateral, plurilatera l and regional negotiations, particularly those under 
way at WTO. 
110. However, the lack of material  and logistical resources and the absence of a budget prevents 
the Commission from playing its full role. 
The Africa, Caribbean and Pacific-Europ ean Economic Community (ACP-EEC) National 
Commission and its permanent secretariat 
111. The ACP-EEC National Commission, establishe d by Decree No. 88-261 of 30 June 1988, 
concerns itself with relations between the countries of Africa, the Caribbean and the Pacific and the 
members of the European Economic Community (EEC) and is responsible for: 
 - Monitoring the state of relations between the Republic of Benin and EEC countries, 
and between Benin and the ACP countries; 
  - discussing all issues relating to ACP-EEC  cooperation and defining Benin's position 
on those issues. 
 WT/TPR/G/131 Trade Policy Review 
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112. Bearing in mind the innovations introduced by the Cotonou Agreement, such as the inclusion 
of new non-State actors (civil society, private sect or, non-economic actors) in the partnership, the 
implementation of the Agreement itself will require th at the Decree be adapted to the new realities. 
113. In implementing the decree, the non-State actors and the ministerial departments responsible 
for managing them need to be taken into account.   
 
National Commission on the African Growth and Opportunity Act (AGOA) 
114. The functions of the National Commission on AGOA, which was established by Decree 
No. 2003-480 of 1 December 2003, include: 
 - Advising the Government on any procedur es whereby Benin could benefit from trade 
preferences under the United States law on growth and opportunity in sub-Saharan 
Africa; 
   - initiating and monitoring the implementation of all measures and actions to encourage 
and facilitate  the relocation of enterprises and joint ventures with foreign firms 
wishing to participate in textile and ga rment manufacturing and other buoyant sectors 
of Benin's economy; 
  - initiating and monitoring the implementati on of all measures aimed at developing 
strategies for agriculture, trad e, industry, crafts and tourism, consistent with the 
opportunities offered by the law. 
 
V. ECONOMIC  AND  TRADE POLICY INSTRUMENTS 
(1) T
ARIFF MEASURES  
Customs duties 
115. Benin's tariff policy is in line with the WA EMU trade policy which entered into force on 
31 January 2000.  This policy calls for: 
 - Implementation of a common external tariff (CET); 
  - dismantling of tariffs;  
 - establishment of a supplementary taxation regime. 
 116. The duties and taxes included in the CET are the following: 
 - Custom duties: the tariff structure of cu stoms duties comprise four rates (0 per cent, 
5 per cent, 10 per cent and 20 per cent), whic h are applied according to the nature of 
products,  which are divided into categories; 
  - statistical fee:  applied at a single rate of 1 per cent;   - Community solidarity levy (PCS):  this consists of a single rate of 1 per cent of the 
customs value of goods imported from third countries by member States of the 
Union.  The basis of the levy is the custom s value applicable in each member State;  Benin WT/TPR/G/131 
 Page 23 
 
 
receipts from the levy are used to cover the loss of earnings suffered by States 
importing goods from other member States of the Union, as a result of the application 
of preferences. 
 
 - temporary duties:  Degressive Protection Tax (DPT), for which there are to be two 
rates,  and the Special Import Tax (SIT); 
  - the SIT rate is set at 10 per cent of the value determined by the trigger price.  
Export taxes 
117. Benin has no export tax. 
Degressive protection tax 118. Benin does not apply a degressive protection ta x or special import tax.  However, as a 
member of WAEMU and ECOWAS (where the statisti cal fee is 1 per cent ad valorem), it levies 
supplementary duties which are permanent and ar e applied exclusively to imports from third 
countries.  Benin also applies the WAEMU common trade policy. 
Common External Tariff 119. Pursuant to the WAEMU directive on the common external tariff, the Government of Benin 
adopted Ordinance No. 2000/01 of 2 January 2000 on the finance management law for 2000, followed 
up by service note No. 168/DGDDI/DAR of 27 Janua ry 2000 on the implementation of the WAEMU 
common external tariff (CET) in Benin.   
Domestic taxes Value added tax (VAT) 
 120. VAT was introduced in Benin in 1991 and is app lied at a single rate of 18 per cent on the sale 
of goods and services. However, certain products  are exempt (drugs, pharmaceutical products and 
patent medicines, and products used in veterinary medicine). 
Customs valuation 121. Since 1 January 2003, and pursuant to Order No. 101/MFE/DC/SGM/DGDDI/DAR of 
17 September 2002, implementing as from 1 September 2002 WAEMU Regulation No. 055/CM/WAEMU of 6 August 1999 on the custom s value of imported goo ds, Benin has applied 
the WTO Agreement on Customs Valuation. 
(2) O
THER ECONOMIC AND TRADE POLICY INSTRUMENTS  
(a) Preshipment inspection 
122. A compulsory preshipment inspection system h as been in force since 1991.  All imports of 
goods must therefore comply with the formalities pr escribed by the inspection company, as follows:   
 - Submission of an import application for all invoices over 3 million CFA francs 
(maritime cargo); 
 WT/TPR/G/131 Trade Policy Review 
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 - preshipment inspection of goods; 
  - production of final invoice after inspection;  
 - obtainment of a customs valuation certificate which must be presented to the customs 
service when the goods are undergoing clearance.  
 123. If goods are undervalued the inspection comp any rejects the amounts appearing on the 
invoice and makes the necessary adjustments on the basis of information obtained from the importing 
country, or in the light of the value of like products.  This is noted on the customs valuation 
certificate. 
124. In Benin, preshipment inspection has been  carried out by the company BIVAC since 
October 1994. 
(b) Community competition code 
125. Since the beginning of 2003, competition policy in  the domestic market has been governed by 
a set of WAEMU negotiations which apply to  anti-competitive practices and State aid. 
VI. CONCLUSION 
126. Following the Conférence des forces vives de la Nation  in 1990 which marked the end of the 
State monopoly over the sectors of the economy, Benin has opted for a system of economic liberalization.  Under the International Moneta ry Fund and World Bank structural adjustment 
programmes,  Benin has launched a number of reforms aimed at creating a business-friendly 
economic and institutio nal environment. 
127. A new law governing trade activities (Law No. 90-005 of 15 May 1990) was adopted for the 
purpose of liberalizing trade in the Republic of Benin. 
128. Various obstacles to trade, quantitative restri ctions or quotas, and import licences have been 
abolished. 
129. With respect to tariff reforms and taxation,  the 1991 and 1994 tariff reforms have allowed 
Benin to reduce the number of duties levied on imports to two,  and to lower the rates from 16 to 5 per 
cent,  while export taxes have been completely e liminated.  The Government introduced VAT in 1991 
and eased and simplified direct taxation while at th e same time broadening the tax base.  Since 1990, 
several laws have been adopted by the National Assembly to create more reliable and attractive 
conditions for commercial and investment activity.  Codes on  public procurement, customs and 
investment had been adopted for that purpose. 
130. To sum up, the Government is committed to pl aying its full role, with the support of its 
development partners.  A number of measures have been identified and are included in the 
Government's Programme of Action (PAGII).  Othe rs have already been executed or are being 
implemented within the framework of the Public I nvestment Programme (PIP).  The Government will 
request technical and financial support from its deve lopment partners to ensure the comprehensive 
implementation of this policy. 
 
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