WORLD TRADE
ORGANIZATIONWT/TPR/M/48
9 April 1999
(99-1403)
Trade Policy Review Body
27 and 28 January 1999
TRADE POLICY REVIEW
TOGO
Minutes of the Meeting
Chairperson:  H.E. Mr. Ali Said Mchumo (Tanzania)
Page
I. CHAIRMAN'S INTRODUCTORY REMARKS 2
II. OPENING STATEMENT BY THE REPRESENTATIVE OF TOGO 3
III. OPENING REMARKS OF THE FIRST DISCUSSANT 5
IV. REMARKS BY THE SECOND DISCUSSANT 6
V. REMARKS BY MEMBERS OF THE TRADE POLICY REVIEW BODY  8
VI. RESPONSES BY THE REPRESENTATIVE OF TOGO AND OTHER REMARKS  10
VII. CONCLUDING REMARKS BY THE CHAIRPERSON 14
ANNEX I 17
ANNEX II 26WT/TPR/M/48
Page 2
I. CHAIRMAN'S INTRODUCTORY REMARKS
1. The first Trade Policy Review of Togo took place on 27 and 28 January 1999.
H.E. Ambassador Ali Said Mchumo (Tanzania) chaired the meeting.  The Chairman welcomed the
Togolese delegation led by H.E. Mrs. Essivi Florence Djokpé, Delegate Minister to the
Prime Minister, Minister for Economic Restructuring and Modernization of the Administration, andthe two discussants, H.E. Mr. Patrick N. Sinyinza (Zambia) and Mr. Philippe Musquar
(European Union).  He expressed the hope that, in addition to a successful TPR, they would also take
advantage of discussions with other Members of the WTO Secretariat during their visit.  He also
welcomed the Members of the Trade Policy Review Mechanism (TPRM) and the observer for the
West African Economic and Monetary Union (WAEMU) who was participating in the meeting of an
ad hoc basis as had been agreed at the Trade Policy Review of Jamaica held on 29 and
30 October 1998.  At the request of the Chairman, a delegation from the Organization of AfricanUnity (OAU) was authorized by Members to attend the first session only of that meeting on an ad hoc
basis.
2. The Chairman recalled the purpose of the TPRM as set out in Annex 3 of the Marrakesh
Agreement, and the rules of procedure for the meeting.  The report of the Government of Togo was
contained in WT/TPR/G/48 and that of the Secretariat in document WT/TPR/S/48.  As usual, the twodiscussants would be speaking in a personal capacity and not as representatives of their respective
countries.  The main issues that they intended to raise had been outlined in document WT/TPR/D/33.
The delegation of Togo had received copies of written questions submitted by the delegations of
Hong Kong, China;  Japan;  Canada;  the European Union;  and the United States (Annex I).  Where it
was not possible to provide full answers to questions during the meeting, additional responses couldbe sent subsequently in writing.
3. The Chairman also informed delegates that an informal meeting of the TPRB had been held
the day before to begin appraisal of the Mechanism and that it had been agreed that the next informal
meeting on the matter would be held on 22 February  and that he would keep them fully informed of
any draft decisions arising from such informal meetings, which would be held periodically.WT/TPR/M/48
Page 3
II. OPENING STATEMENT BY THE REPRESENTATIVE OF TOGO
4. After stating how honoured she was to deputize for the Minister to Trade by leading her
delegation to the meeting to review her country's trade policy, the representative of Togo assured
participants of her Government's support for the development objectives of the Uruguay Round
Agreements.  She apologized on behalf of the Minister for Trade, who had been personally involvedin the work preparatory to the meeting but who had been detained at the last moment by government
business.  Her presence at the meeting was testimony to the manifest determination of the
Government of Togo to consolidate the process of macroeconomic and structural reforms started in
the 1980s and to ensure that it received high-level coordination and efficient follow-up and
evaluation.  The trade reforms carried out or underw ay were part of the Government's strategy and
objectives designed to boost the economy's international competitiveness and underpin its domestic
and external financial viability and to create a solid and stable macroeconomic environment forsustained growth with moderate inflation.
5. For over five decades the multilateral trading system had provided the international
community with a practical fram ework for world trade.  Indeed, under the GATT 1947, the system
had succeeded in reducing many forms of protectionism and bringing some transparency to trade
regimes, practices and exchanges across the world.  The ensuing rounds of multilateral tradenegotiations had gradually improved the performance of the system.  The most recent round, the
Uruguay Round, had revolutionalized the multilateral trading system.  The World Trade Organization
had been established, with the result, inter alia , that the trade in services and trade-related aspects of
intellectual property rights had been brought within the disciplines of the multilateral trade system;
the trade dispute settlement mechanism had been improved;  the trade policy review mechanisminstituted and the regulations on the different trade practices had been improved and strengthened.
6. The new world economic and trading system was based on the liberalization of economic and
commercial activities by the progressive roll-back of customs duties and the dismantling of non-tariff
barriers, the strengthening of trade capacities and the speedier economic development of countries in
general and of the developing countries (DCs) and least-developed countries (LDCs) in particular.The international community was thus committed to the cause of the multilateral trading system.
Despite certain persisting difficulties, the system had made decisive accomplishments that reflected
concerns with liberalization, globalization, interdep endence, the struggle against the marginalization
and exclusion of the weak by the strong, the in tegration of the world's economies and transparent
trade policies.
7. While it was commendable, this objective entailed advantages as well as disadvantages.  It
covered countries of all sizes and with widely varying circumstances and there was the obvious risk ofuneven benefits from the implementation of the principles:  the industrialized countries would stand to
gain more, while the DCs and LDCs risked being ma rginalized or even excluded.  Nevertheless, the
DCs and LDCs Members of the WTO who were endeavouring to meet the demands and
recommendations of its various bodies and carry out their work programmes could benefit from the
opportunities and limit the problems posed by the various agreements.  To that end, the WTO washelping the DCs and LDCs to become effectively integrated into the multilateral trading system.
However, these countries had to display a modicum of interest in its activities, pursuant to the
recommendations of the first conference of African Ministers responsible for trade, regional
integration and tourism, held in Addis-Ababa in February 1996.
8. Nevertheless, the WTO did not make its assistance conditional upon adoption of its
principles.  Rather, it was aware that the DCs and LDCs in Africa in particular needed to be motivated
by proper information.  That was why in December 1996 it launched the initiative of a tour of selected
African countries, including Togo, designed to provide them with information and raise their
awareness with regard to the trade policy review mechanism.  After the information meeting held in
December 1996 in Lomé, Togo's trade review process got underway.  Similarly, following the WTOWT/TPR/M/48
Page 4
working mission to Lomé in March 1997, the reports by Togo and the WTO Secretariat had been
drawn up for the meeting.  On behalf of her c ountry, the representative apologized to the WTO
Secretariat as a whole and to the trade policy review division in particular for the constraints that led
to a postponement of the meeting.
9. She described in broad outline the main points of the Government's report.  These were the
economic and trading environment, trade policies and practices, the trade policy framework, and
measures for the implementation and evaluation of Togo's trade policy.  She said that the economic
and trade information contained in the Government report was consistent with the general and sectoral
objectives of the Government's overall policy for the economic and social development of Togo.  It
was her hope that comments and suggestions from participants would help Togo to improve and
further adapt its trade policy to the demands of the multilateral trading system so as to avoid being
overwhelmed by the constraints and challenges of that system and to take advantage of itsopportunities.WT/TPR/M/48
Page 5
III. OPENING REMARKS OF THE FIRST DISCUSSANT
10. The first discussant, H.E. Mr. Patrick N. Sinyinza, after welcoming the delegation of Togo
reviewed that country's economic performance, which he regarded as impressive considering its
political and economic background and that it was an LDC.  The GDP growth figures taken from the
Government's report differed from those in the Secretariat's report in that they did not reflect realGDP.  Other commentators might have ascribed the impressive GDP growth figures to an element of
recovering from the economic slump caused by the political crisis that gripped Togo during its
democratic transition.  Togo's import duties, some of the lowest in the WAEMU, were designed to
stimulate transit and re-export trade.
11. The discussant also recalled the main characteristics of the Togolese economy, which was
predominantly agricultural (40 per cent of GDP, 50 per cent of export income, with cotton accounting
for about one quarter of total export earnings).  Togo was the fifth largest producer of calciumphosphates, which accounted for approximately one quarter of total export earnings.  The tertiary
sector represented 44 per cent of 1996 GDP and provided 396,000 jobs in 1997.  Despite Togo's trade
balances for 1994, 1995 and 1997, the services trade deficit due largely to interest payments on
foreign debt and expenditure on insurance and freight had caused a deficit in current account.  Togo's
main trading partners were Canada and South Africa for its phosphates exports, the European Unionfor coffee, Chinese Taipei and Brazil for cotton, and France, the main source of its imports.
12. The 1989 Investment Code had been designed to promote export-oriented activities, small-
and medium-sized enterprises, the use of domestic resources and the decentralization of economic
activity.  It granted the same rights to national and foreign enterprises.  A community code had been
envisaged within the WAEMU framework.  A free zone had been in operation since 1989.  Within theWTO, which Togo joined in 1995, it accorded MFN treatment to all its partners and had bound some
duties.  As an LDC, the country benefited from the delayed implementation of some provisions and
from exemptions and under certain rules and disciplines especially in the agricultural sector.
Moreover, the WAEMU, of which Togo was a member, was to give way to an economic union
through the harmonization of member country policies.  The timetable for the creation of anECOWAS customs union was not being kept, however.
13. After this review of some points of the two reports, the discussant asked about measures
envisaged by Togo to maintain economic growth (w ith a very bleak world market outlook for cotton)
and improve competitiveness considering that State monopolies over the supply of services led to
higher production costs.  He raised questions about the expected impact (fiscal, productivity, export
and re-export) of the WAEMU Customs Union on Togo, the impact of the Asian crisis on that
economy (as the destination of some 25 per cent of Togolese exports), about Togo's strategy withregard to foreign capital in the light of the Asian crisis, the way Togo was managing regional and
bilateral agreements, about its participation in the WAEMU (how Togo's export processing zone
would fit into the projected WAEMU Investment Code and transitional measures towards the
institution of the common external tariff, including products considered sensitive by Togo).  Referring
to Togo's limited participation in WTO activities, the discussant asked how that country intended toimprove that situation.WT/TPR/M/48
Page 6
IV. REMARKS BY THE SECOND DISCUSSANT
14. The second discussant, Mr. Philippe Musquar, said that his remarks were based on the
realization of the importance to Togo of all matters relevant to the movement of goods, in other words
to a particular trade policy option chosen by that country.  He was not downplaying the negative
repercussions on the Togolese economy of cyclical factors such as the effects of the social andpolitical upheavals early in the decade or the recent energy crisis induced by the fall in output in the
Akosombo dam in Ghana, or structural factors such as the poor state of transportation infrastructure or
the problems of storage and preservation of certain agricultural products.
15. Unlike other countries the subregion such as Burkina Faso and Mali, one of Togo's major
assets is its geography and the presence of a deep-water port at Lomé which made it a natural corridor
between the ocean and the land-locked countries of the Sahel.  This obviously pre-disposed Togo
towards commerce, which the national authorities seemed keen on developing by putting in place arange of regulatory regimes.  Yet the rather di scouraging situation of the trade balance and the
services trade balance and the persistently low level of private investment justifiably raised questions
about the validity and good functioning of some of those regimes and the need to overhaul their
regulatory framework.
16. Noting that the tariff bindings notified by Togo within the framew ork of the Uruguay Round
covered only a very small range of products and still left an appreciable differential with respect to the
applicable duties which, – with an arithmetic average of 19.5 per cent, were still among the lowest in
the WAEMU, the discussant wondered whether more systematic tariff bindings at levels closer to the
applicable duties would not usefully help to bring about more secure trade and to foster a more
favourable climate for foreign investment.  Togo's  tariff structure was further complicated by the
simultaneous existence of the Import Fiscal Duty (DFE) a Statistical Tax (TS), a tax known as the
"Infrastructure Protection Tax" (TPI) and two community levies assessed respectively for the
WAEMU (PCS) and the ECOWAS (PC) and it would be desirable to simplify that structure.  The
negative tariff escalation spanning semi-finished to finished products existing in many sectors of the
Togolese tariff structure was perhaps a serious obstacle to the development of new local processingindustries while the maintenance of high duties on some products for which an industry already
existed was penalizing consumers and risked inhibiting the competitiveness of the companies
concerned.
17. The example of wax cloth imported from Holland and taxed and 0 per cent in Togo even
though it was considered a luxury item and taxed accordingly in most of the neighbouring countries
was evidence of a conscious attempt by the Togolese authorities to make that country a crossroads for
regional re-export trade, mostly to the benefit of the well-known "Nana-Benz", a class of dynamicbusinesswomen whose activities were entirely dependent on this somewhat artificial comparative
advantage.  The discussant described this phenomenon as the expression of a certain "African reality"
and added that this type of trade was possible only because, by one means or another, the import
duties normally payable in Burkina Faso, Niger or Mali were not being collected when the goods in
question entered their customs territories, which was tantamount to contraband.  He enquired whatwould be the reaction of the Togolese authorities to the fact that the introduction of a genuine
WAEMU or ECOWAS common external tariff should in theory stop this traffic once and for all.
18. Turning to the trade policy review meetings of Burkina Faso and Mali, the discussant asked
whether the implementation of the ECOWAS customs union scheduled for the year 2000 had already
begun.  He asked questions about the issuance of certificates of origin in that framework, thedistribution of products according to the structure of the WAEMU common external tariff that had
been envisaged for 1 July 1998, the definition of a "local speciality" as opposed to a "product
originating (in the WAEMU)", the application of the "conditions of approval" within the WAEMU
framework, the compatibility of maintaining MFN duties beyond 1 January 2000 in intra-WAEMU
trade for products not originating within it – there was a very high risk of the double taxation of theseWT/TPR/M/48
Page 7
products if they were re-exported from one member country to another, having been imported from a
third country – as well as the competition that should be faced by the autonomous seaport of Lomé
from the ports of Abidjan, Accra or Cotonou , once the customs unions had been set up.
19. Despite major efforts at foreign trade liberalization since 1988 – when the import monopoly
of the Société Nationale de Commerce  (SONACOM) was eliminated – Togo still maintained far too
many import barriers.  These arose specifically from the systematic intervention of a preshipment
inspection company, which was costly and occasioned delays and extra formalities for operators, and
which was needlessly retarding the changeover to  transaction value pursuant to the Agreement on
Implementation of Article VII of GATT.  In addition, there was an extremely complicated system of
importer registration which seemed primarily tax-related and which was also giving rise to excessive
constraints both in terms of cost and the delays  associated with compulsory formalities.  The
computerization of customs declaration proces sing based on the UNCTAD Automated Systems for
Customs Data (ASYCUDA) was in turn welcomed and the modernization of the customs
administration machinery encouraged.  The attention of the Togolese authorities was drawn to the
usefulness of the ideas being exchanged in that connection within the ongoing WTO work programme
on trade facilitation.
20. A key component of Togos trade policy was export encouragement under the free zone
regime.  The success of the free zone both in terms of increased exports and the number of jobs
generated in Togo had been possible at the expense of all other duty free systems envisaged under the
Customs Code and the investment regimes under the Investment Code, with the result that virtually allthe country's already limited private industrial activity had become concentrated in the Lomé free
zone.  What is more, there seemed little doubt that the system was plagued by systematic instances of
fraud with respect to the 20 per cent ceiling on output that could be sold on the domestic market.  He
underlined the disincentive that was the tax regime governing companies outside the free zone and the
need to stamp out the transactions known as "false transit".
21. After mentioning some monopoly state enterprises or others enjoying exclusive rights in their
domain of activity, the discussant stated that the determined pursuit of the privatization process in
keeping with commitments made to the World Bank  was indispensable to the development of the
national economy.  The effective protection of intellectual property rights – within the framework of
African Intellectual Property Organization (OAPI) – and the adoption of new rules on competition
now being discussed in the National Assembly were also worthy of attention.WT/TPR/M/48
Page 8
V. REMARKS BY MEMBERS OF THE TRADE POLICY REVIEW BODY
22. Delegates congratulated Togo on the economic liberalization and reforms it had already
effected, which made it one of West Africa's most  open economies.  They took note of the important
role in regard to trade liberalization and regional integration played by the WAEMU, which should be
fully set up by the year 2000 and called on Togo to further strengthen its commitment to themultilateral trade system.
23. Noting that there was no time-limit given to  the preshipment inspection company for the
issuance of inspection certificates, the representative of Hong Kong, China urged Togo to take up
with the company the possibility of setting such  limits.  He pointed out that the Government
Procurement Code did not establish a precise procedure for given purchases or situations and that
preferential margins were granted to public enterprises and goods with local content, and called upon
Togo to open government contracts to all suppliers.  Lastly, he mentioned some service-relatedactivities in respect of which Togo had made undertakings within the WTO and encouraged that
country to look into the liberalization of other services.  Questions had been submitted in writing to
the Delegation of Togo before the meeting.
24. The representative of Japan stated that his country strongly supported the economic and social
development as well as the political stability of African countries.  In the previous October, Japan,
together with the United Nations, had organized the second Tokyo Conference on African
Development (TICAD II) which had adopted the Tokyo Agenda for African Development in the
21st Century.  The agenda was based on the principles of ownership and global partnership, its main
theme being the reduction of poverty and the effective integration of African economies into the
world economy.  The representative noted that import duties on industrial goods were below25 per cent while, except for Chapters 43, 75 and 78 of the Harmonized System (HS) the tariffs on
these goods had not been bound, and asked whether Togo intended to bind these tariffs at the
applicable levels.  He sought clarification as to the differences in the application of standards to local
and imported products, the draft intended to replace standardization law considered outdated and
concerning draft laws on competition and telecommunications that had been tabled in the NationalAssembly.  Noting that Togo had made very few WTO commitments on the trade of services he also
asked whether it intended to liberalize that sector (especially financial and telecommunications
services) and to make any additional commitments.  Japan had submitted questions in writing to the
Delegation of Togo before the meeting.
25. The representative of Canada said that his country was among Togo's main trading partners
and was the largest market for its phosphates.  He mentioned trade flows between the two countries
noting that it concerned a single product and a small number of enterprises.  He recalled that Canadahad submitted written questions to the Delegation of Togo.
26. The representative of the European Union pointed out that the EU had submitted questions in
writing to the Togolese Delegation concerning regional integration (WAEMU) and internal matters of
decisive importance for trade policy and commerce.  He noted that Togo's main export products were
two raw materials, phosphates and cotton, which were still being traded by two state enterprisesincluding the partially privatized Togolese Phosphates Office, and sought clarification as to the
timetable for the realization of privatization commitments made by Togo to the World Bank, failure to
respect which had triggered the suspension of certain financial facilities.  He wished to know whether
Togo intended to accede to the fourth WTO protocol on basic telecommunications, how Togo
intended to solve the problem of tariff increases  following the introduction of the CET considering
that its economy was largely geared towards trade, and the measures envisaged by Togo to improve
its infrastructure and ensure its proper functioning where necessary.
27. The representative of the United States noted that in spite of reforms already carried out,
Togo had still failed to attract fresh foreign capital on any signifigant scale.  Some policy ofWT/TPR/M/48
Page 9
liberalization was therefore essential in order to ma ke Togo attractive to foreign investors.  After
recalling the headway made by WAEMU in trade liberalization, she said that her country hoped to
participate in the realization of these regional init iatives through the Trade and Investment Framework
Agreement that would probably be signed this year with the WAEMU.  As part of a global initiative
to assist Africa, the United States was planning to provide technical assistance to the countriesmembers of the WAEMU and the ECOWAS in conne ction with WTO projects and the Generalized
System of Preferences.  She noted that her country had submitted wr itten questions to the delegation
of Togo and asked for additional information on liberalization programmes in the services sector, new
commitments by Togo in regard to the trade of services, how Togo would deal with the import duty
increases resulting from the institution of the CET of the WAEMU, the investment regime, the
implementation of the WTO TRIPS Agreement and concerning the future of SOTOCO, a state
enterprise responsible for marketing cotton.
28. The representative of Senegal, recalled Togo's record of economic reform, including trade
reform, the importance of Togo's geographic location to other countries in the subregion and that
country's commitment to the multilateral trading sy stem, that the success of those efforts was still
dependent on the technical assistance requested by that country.  He expressed his satisfaction at allthe common endeavours of the WAEMU countries.  He recalled the constraints being faced by the
Togolaise economy and, turning to the planned ag reement between the United States and the
WAEMU, said that regional rapprochement  was one answer to those problems.  He welcomed Togo's
initiative to enact a law on competition.
29. The representative of Côte d'Ivoire recalled the reforms already carried out by Togo in a
difficult economic and political climate.  She pointed out the importance of these reforms to the West
African subregion and to the world economy.
30. The representative of Mexico expressed his country's interest in the information on the
WAEMU contained in the reports.  Thanks to Mexi co's chairmanship of the informal working group
on developing countries he had become familiar with some of the problems and difficulties facing
certain of those countries.  He took note of the reforms completed by Togo adding that, it needed,
inter alia,  to step up and improve its participation in WTO activities in order to furnish Member
countries with more information on its economy.  He wished all the statements made during the
meeting to be translated into Spanish.
31. The representative of Nigeria said that Togo was an important member of the ECOWAS and
had close links with his country.  The reforms effected by Togo in quest of stability were therefore
important to the region.  He invited the Togolese delegation to take careful note of the remarks and
comments made by participants.  Togo's problems within the multilateral trading system were the
same ones facing developing countries in general and African countries in particular and the WTOshould honour its commitments to those countries so that they could participate fully in its activities
and fulfil their obligations under the multilateral trading system.WT/TPR/M/48
Page 10
VI. RESPONSES BY THE REPRESENTATIVE OF TOGO AND OTHER REMARKS
32. The Chairman of the TPRB opened the session by mentioning the two main topics that had
emerged from the previous day's session:  (i)  the economic environment;  and (ii)  trade measures and
sectoral policies.  He then invited the representative of Togo to convey to participants her delegation's
answers to the various questions asked the previous day.
(i) Economic Environment
33. The representative of Togo said that to ensure continued economic growth her country had
adopted a policy of export diversification by means of developing and promoting non-traditional
products, especially foodstuffs.  Thanks to the removal of the monopolies, these products were
already doing very well.  The strategy also encompassed in the processing and development of some
specific products in sectors such as agriculture (manufacture of cottonseed oil) and mining.  In the
mining sector, marble production had been left up to  the private sector and the production capacity for
cement was being expanded.  The pertinent studies were being conducted in each sector.  The creation
of the WAEMU Customs Union should favour that process by facilitating access to the regional
common market.
34. Mindful of the lessons learned from the Asian financial crisis and its impact on the Togolese
economy (owing to Togo's trading relations with the Asian countries), the country intended todiversify its outlets by taking advantage of the opportunities stemming from the TICAD II, which
envisaged new cooperative relations between the African and Asian countries.  To improve its current
account situation, Togo intended to promote the services sector by rehabilitating tourist
infrastructures, speeding up the privatization process and better managing its external debt.
35. Despite legal and judicial reforms, the establishment of the private sector forum and
promotional measures, private investments had shown no substantial increase as the environment had
not been propitious.  The existing legal provisions would be replaced in the year 2000 by those of the
WAEMU Community Investment Code.  Besides, the common code and institutional framework
envisaged for WAEMU were designed to replace small domestic markets with a common regional
market that could attract much more substantial investment flows.
36. The delay in completing the privatization proces s was attributable to the need to establish in
advance (based on the findings of audits) an ap propriate strategy for each case, unsuccessful public
tenders and to the time-frame required for adopting redundancy mitigation measures to help victims
of deflation.  The privatization programme was nevertheless proceeding.  A Community law on
competition and a draft anti-dumping code we re being studied by the WAEMU Commission.  The
devaluation of the CFA franc and the establishment of the WAEMU were two measures taken by the
Heads of State of the West African Monetary Union (WAMU) to boost the competitiveness ofmember economies on a lasting basis and to pave the way for the implementation of the
Uruguay Round Agreements.
37. WAEMU initiatives were not in contradiction with those of the ECOWAS.  The timetable for
tariff reduction, both internally and externally, were being respected by the countries members of the
WAEMU, which body was helping to speed up the process of integration in West Africa and buttressthe activities of the ECOWAS.  Moreover, the West African States had agreed that, in the long run,
the ECOWAS would be the only economic integration body in the region.  The risks of any
inconsistencies between the reforms were well in hand, as the WAEMU had taken account of the
accomplishments of the ECOWAS in regard, inter alia , to the tariff and statistics nomenclature, the
(single) customs document, while reciprocally, the CET of ECOWAS took the WAEMU CET intoaccount.  Besides, a mechanism had been put in place for coordination between the ECOWAS
Executive Secretariat and the WAEMU Commission.WT/TPR/M/48
Page 11
38. The reforms effected under the structural adjustment programmes and within the WAEMU
were conceived to prepare the national economies for the competition that would follow the
implementation of deferred measures under the Marrakesh Agreement Establishing the WTO.
Nevertheless, Togo needed the support of the inte rnational community in effecting these reforms,
including programmes of private sector restruct uring and repositioning.  Debt relief was also
desirable.  The Secretariat's technical assistance had been requested in setting up the appropriate
structure for managing the WTO agreements and work was underway in Togo in this regard.
Moreover, the WAEMU Commission planned to draw up a common list of concessions that would
replace those submitted by Member states.  Lastly, and although the provisions of the Lomé
Convention would seem incompatible with WTO rules, meetings of ACP States had brought out the
need to preserve those countries' competitiven ess if they were not to be marginalized.
39. The first discussant pointed out that the impacts of the Asian crisis on the economy of Togo
should be reflected in the economic performances for 1997-1999, the global statistics for those years
not having been available on time for the report – and that mere export diversification was not enough
to cushion those impacts.  Togo needed to participate in the world economy, though the regional
integration process could drive economic change, bearing in mind the advantages deriving from
regional markets.  The discussant urged Togo to liberalize the services sector in order to reduceproduction costs.
40. The second discussant underscored the importance of privatization to Togo, citing examples
of performances in the coffee/cocoa industries which had already been deregulated.  He noted that
SOTOCO was still responsible for marketing cotton,  which merited top priority.  Furthermore, an
appropriate legal climate should be created to attract foreign capital.  The discussant enquired whetherECOWAS was to give rise to a customs union with a common external tariff or simply to a free-trade
area.  He sought information about the compatibility of WAEMU and ECOWAS agreements in the
light of differences in rules of origin and preferences for traffic between those countries.  Double
taxation could result from confusion between internal WAEMU duties and the common external
tariff.
41. The representative of Togo said that the Asian crisis and domestic variables such as the 1998
energy crisis had been factored into 1999 forecasts.  The power generation sector was of strategic
importance to Togo and a communication on the successful privatization of power distribution was
under preparation.  The timetable for the privatization of other activities had been discussed with the
development partners.  It was still too early to comment on the outcome of liberalization in the
coffee/cocoa industry and any successes observed could be provisional.  The privatization of
SOTOCO was under way.
42. The ECOWAS was to give way to a customs union but there was no precise time line for the
implementation of the CET of the ECOWAS and this  did not therefore seem likely by the year 2000.
Similarly, failure to abide by the timetable for trade liberalization among the members of ECOWAS
had led to the creation of the WAEMU.  This latter body intended, in the year 2000, to replace the
current provisional rules of origin with new and more WTO-compliant ones that were also moreconsistent with World Customs Organization pr ovisions.  Once the ECOWAS customs union was
established, it should replace the WAEMU.  Furthermore, considering their importance to the
countries members of the Union, customs receipts had not been pooled.  Nevertheless, goods in transit
were not subject to import duties.
43. The representative of the United States enquired about the programme for the privatization of
the cotton industry and of services such as teleco mmunications.  He also wished to know how Togo
intended to solve the problems that would be posed by the increased duties resulting from the CET.WT/TPR/M/48
Page 12
44. After mentioning the importance of Togo's ongoing privatization endeavours, the
representative of Japan requested details on matters such as the objectives and main facts of the draft
law on competition currently before the National Assembly.
45. The representative of the European Union proposed that the technical assistance requested by
Togo should be granted in connection with its problems of regional integration.  Turning to the
privatization process, he said that excessive flexibility on the part of Togo regarding a commitment
made to the World Bank would make it more difficult to disburse foreign funding.  He sought
clarifications concerning the implementati on and operation of the Investment Code.
46. The representative of Canada requested information on the privatization of
telecommunications services.
47. The representative of Togo took note of the different statements, especially that concerning
technical assistance.  In connection with privatization, she said that the funding agencies with which
the programme had been finalized had failed to take proper account of the costs involved.  The delays
in the process had been made up by the end of 1998.  The programme was still underway and
companies such as la Brasserie du Bémin, the Grands moulins and the cement company had already
been privatized.  Some companies had been liquidated and the telecommunications and postal
services separated.  Other services were being restructured.  There had been a delay in the hotelindustry for lack of investors, tenders had been invited, to no avail.
48. The representative of Togo said that her country was trying to work out with the WAEMU
Commission a solution (complete with timetable) to the problem that would arise from increased
Togolese tariffs once the CET is instituted.  The withdrawal of the Government had left a vacuum that
had been filled by the private sector, with scant regard for the basic principles of competition.  Theprojected law on competition was intended to remedy those shortcomings.
(ii) Trade measures and sectoral policies
49. The representative of Togo said that the law on the single window had already been adopted
by Parliament and that a suitable structure would be put in place within the Chamber of Commerce to
provide operators with the requisite start-up information.  Provided the necessary conditions were
met, the formalities could be completed in 72 hours at most.  The representative took note of the
pertinent comments by participants advocating an evaluation of the use of the free zone regime and its
impact on the Togolese economy.  The advance tax had been instituted with informal operators in
mind, with a view to assessing them for a minimum tax and improving the collection of direct taxes.
50. The control of imports by COTECMA had been an IMF demand that had been very
negatively received by importers.  It was to be reviewed for its effectiveness.  At all events theimplementation of the WTO Agreement on Customs Valuation was envisaged for 1 January 2000
within the WAEMU.  The CET of the WAEMU had simplified the structure of Togo's import duties
and taxes, albeit without affecting Togo's tariff levels under which a 20 per cent import tax ceiling had
been set.  Nevertheless, the product classificatio ns resulting from the CET led to a reimposition of
tariffs on products such as waxcloth, sugar and milk.  Even though the CET was helping to correctTogo's tariff escalation, a solution – even an interim one – to the inflationary pressures and social
problems that would be triggered by this tariff correction was being studied in cooperation with the
WAEMU Commission.  As separate income-earning mechanisms for the two organizations of which
Togo was a member, the WAEMU community solidar ity tax and the ECOWAS community tax could
not be affected by the simplification of import duties and taxes.
51. In drawing up the common WAEMU list, account could be taken of remarks by participants
concerning the small number of non-farm products for which tariff bindings had been notified.  In an
attempt to counteract contraband, arrangements had been made for customs escort services to theWT/TPR/M/48
Page 13
border of destination.  Moreover, the WAEMU Commission was planning to buttress the
administrative capacity of customs, devise an action plan to combat fraud and to enact Community
provisions on import prohibitions, domestic content and standards.
52. The representative took note of the suggestions concerning Togo's accession to the
Plurilateral Agreement on Government Procurement.   The Bangui Agreement was being brought into
line with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights within the
OAPI.  Given the strategic nature of the agricultural sector, the Government was withdrawing from it
according to a carefully set timetable.  The adopted maritime transport strategy was aimed at
improved efficiencies through the quality of services provided;  the Lomé port infrastructure had been
refurbished and its management was being modernized.  A law for the liberalization of all segments of
the telecommunications market had been adopted by the National Assembly in early 1998.  The
process started with the grant of a mobile phone operating licence, and also involves setting up aregulatory agency for the sector and a frequency management unit;  it should culminate in an offer of
TOGOTELCOM capital to private investors before th e year 2001.  Lastly, the strategy for the ongoing
privatization of banks and financial services was aimed at scaling back the Government's role in that
sector.
53. The second discussant asked whether the requirement that foreign recipients of government
contracts subcontract 30 per cent of them to nationals was applicable to all kinds of service including
supply contracts.  He took note of the provisions in force concerning the protection of intellectual
property and underscored the importance of implementing them.  He sought clarification as to the
October 1998 decree instituting capital transfer controls.
54. The representative of Japan asked whether Togo intended to assume commitments within the
WTO concerning trade in services such as telecommunications, and whether the draft
telecommunications law envisaged foreign participation in TOGOTELCOM equity and the opening-
up of the market for mobile phone service providers.  He enquired about provisions limiting the
management or administration of financial institutions to WAEMU citizens and about the programme
to change standards in Togo.
55. The representative of the European Union sought clarifications concerning the 1998 Decree
on capital control and the progress of the privatization process, specifically in such areas as cotton,
phosphates and telecommunications.
56. The representative of Togo said that the subcontracting requirement was aimed at
encouraging the transfer of technology and that it did not apply to supply contracts.  The law on
capital controls was nothing more than the gene ral application of an already existing practice.
Furthermore, although Togo had not participated in the Uruguay Round negotiations it had madesignificant commitments in that context;  and any new commitments would be dependent on success
in managing the consequences of previous ones.  The State was present only in four sectors,
sometimes for lack of investors.  Foreign participation was possible in the provision of mobile phone
services.  In contrast, the terms of establishment, management and administration of banks were
common to WAEMU member States.  However, the market was open to foreigners.  She repeated herreply to questions regarding privatization by saying that the process was continuing;  the pertinent
commitments made to the World Bank were applicable up to the year 2000.  A study on standard-
setting and standardization within the WAEMU was under way, with European Union funding.WT/TPR/M/48
Page 14
VII. CONCLUDING REMARKS BY THE CHAIRPERSON
57. The first Trade Policy Review of Togo was conducted by the TPR Body on 27 and
28 January 1999.  These remarks, prepared on my own responsibility, are intended to summarize the
main points of the discussion;  they are not intended as a full report.  Further details of the discussion
will be fully reflected in the minutes.
58. The discussion developed under two main themes:  (i) economic environment;  and (ii) trade
measures and sectoral policies.
(i) Economic environment
59. Members commended Togo on its unilateral liberalization and economic reforms.
Government revenue had increased with improved revenue collection.  The reforms and the
devaluation of the CFA franc in 1994 had resulted in high economic growth, although this contained acatch-up element given the economic slump resulting from the socio-political crisis of the
early 1990s. Noting that progress in addressing the current account situation had been limited by
service deficits and that export competitiveness was hampered by the high costs of utilities, under
monopolist public enterprises, Members asked Togo about measures envisaged to maintain economic
growth and diversify exports.  They inquired about the impact of the Asian financial crisis, Asia beinga destination for about one quarter of exports from Togo, and the expected effects of the WAEMU
customs union, on the economy of Togo.
60. Noting Togo's limited WTO involvement, some Members asked how this might be remedied.
They also inquired about progress on trade-related technical assistance to Togo under the Integrated
Programme, and sought information on measures to adjust to any reduction of preferences resultingfrom multilateral liberalization.
61. Questions were asked about the coherence and coordination of overlapping regional
agreements, especially WAEMU and ECOWAS, to which Togo was party.  Some Members asked
about measures being taken by Togo to guard against investment distortions, particularly with respect
to export processing zones, and inquired about the impact of the WAEMU's forthcoming commoninvestment regime.  Participants also sought clarification on steps being taken to implement the
WAEMU Common External Tariff (CET) in January 2000, including with respect to sensitive
products, and on the way Togo intended to manage its bilateral trade agreements under the WAEMU
customs union.
62. The representative of Togo responded that in order to maintain economic growth and
diversify exports Togo was promoting non-traditiona l products, including processed agricultural and
mineral goods;  regional integration would contribute to this by increasing market access.  Noting thatTogo's legal environment had not contributed to the promotion of investment, she said that the
planned WAEMU common investment code, and co mmon institutional framework, would help to
attract foreign direct investment.  WAEMU was studying the introduction of common legislation on
competition and on anti-dumping.  Technical assi stance, including under the Integrated Programme,
was needed to improve Togo's involvement in the WTO.
63. In light of the impact of the Asian financial crisis on its economy, Togo intended to diversify
the destinations of its exports.  The current account would be improved through the liberalization of
the services sector, the promotion of tourism and a better management of foreign debt.  On
privatization, she indicated the need for specific strategies for each public enterprise, and that a
shortage of investors had delayed implementation, but that nevertheless the process was ongoing.Structural adjustment programmes and the move to the CET were preparing the economies of
WAEMU members for increased competition;  support from the international community was
necessary.  Coordination between the ECOWAS Secretariat and the WAEMU CommissionWT/TPR/M/48
Page 15
contributed to avoiding inconsistencies between these two regional agreements.  ECOWAS members
agreed that, in the long run, it would be the only regional agreement in West Africa.  Therefore, fast
liberalization under WAEMU would contribute to spee dier regional integration in West Africa.  On
preferential treatment, discussions among African ACP countries had stressed the need for
ACP members to maintain their commercial position.
(ii) Trade measures and sectoral policies
64. Members expressed their appreciation of Togo's considerable progress in liberalizing its trade
regime. Togo's import duties were among the lowest in WAEMU.  There was some concern that,
despite a certain simplification, the structure of border duties remained complicated;  similarly, there
was a certain worry about the high margins between bound and applied tariffs, and about the low level
of bindings for non-agricultural products.  It was pointed out that Togo's unilateral liberalization in theservices sector was not reflected in its limited WTO commitments.
65. Members inquired about the consistency of Togo's import duties with its economic
development objectives, and about the probable consequences of the introduction of the CET on
activities, such as re-exportation, which were currently favoured by low tariffs.  There was a certain
concern about the discriminatory application of internal specific taxes, smuggling, seasonalprohibition of imports of potatoes and price approvals in the tourism branch.
66. Specific questions were raised regarding local content schemes, Togo's transit regime,
registration and customs formalities, preshipment inspection, standards, and measures to liberalize the
regimes for cotton, phosphates and basic services, including harbour facilities, telecommunications
and financial services.  Members sought clarification on the protection of intellectual property in Togoand on steps being taken to bring the Bangui Agr eement into compliance with TRIPS.  Togo was
encouraged to sign the plurilateral Government Procurement Agreement.
67. In reply, the representative said that a single window had been established to simplify the
formalities applicable to foreign trade and the establishment of enterprises.  She took note of pertinent
comments by participants on Togo's free zone regime and pointed out that preshipment inspection inTogo was required by the IMF.  On customs valuation, she confirmed that WAEMU members would
apply the "transaction-value" basis from the year 2000.  She noted that the introduction of the CET
would simplify the structure of border duties;  it would, however, also increase tariffs on products
such as "waxcloth", sugar and milk, and she indicated that Togo and the WAEMU Commission were
looking for remedies to the socio-economic consequences of the CET.  She also indicated that with
the introduction of the CET, the WAEMU intended to renegotiate the WTO tariff concessions of its
members.  The community solidarity levy (PCS) and the community levy (PC) were collected by all
members on behalf of WAEMU and ECOWAS, respectively.
68. On smuggling, goods in transit were transported under escort of customs agents to the border
of importing countries;  customs administration in WAEMU member countries would be restructured
for efficiency purposes.  On issues such as quantitative restrictions and standards, common legislation
was scheduled to be introduced within the WAEMU framework.  The Bangui Agreement onintellectual property rights was being revised to br ing it into conformity with TRIPS.  The port of
Lomé had been restored and its management was being improved.  The liberalization of
telecommunication services was scheduled to lead to the privatization of Togo Telecom before the
year 2001, and the privatization of state-owned banks was under way.
69. In conclusion, it is my feeling that Members welcomed the participation by Togo in the
review process and the significant steps taken by Togo towards more open and deregulated economic
and trade regimes.  Members recognized the difficul ties of such major adaptation, particularly given
the challenges faced by Togo as a least-developed country with a small resource base, and in the wake
of recent socio-political problems.  They offered strong encouragement to Togo to consolidate andWT/TPR/M/48
Page 16
build on the achievements of recent years.  Members were conscious that, if the policies pursued
domestically are to achieve the desired results, it would be important that Togo continue to build a
favourable environment for private capital, and that it would also be important for Togo to receive
support at the regional level and within the multilateral trading system.
_______________WT/TPR/M/48
Page 17
ANNEX I
PRELIMINARY WRITTEN QUESTIONS
QUESTIONS FROM HONG KONG, CHINA
Regional agreements
(WT/TPR/S/48, p. 24-25, para. 40)
It is stated that under the WAEMU's external tariff regime, a degressive protection tax is
provided for in order to offer certain "particularly sensitive" products a temporary additional
protection, and a temporary import levy is designated to make it possible to neutralize any erraticfluctuations in world prices.  Would the Togolese Government inform us the coverage, rates and
duration of the tax and the temporary levy?
Registration and documents
(WT/TPR/S/48, p. 29, paras. 4-7 )
We note that the fees for installation licences and importer/exporter's and shipper's cards are
different between ECOWAS citizens and non-citizens; and these registration formalities take three to
six months.  The length of these time, frames, particularly in the case of foreigner, is found to bedeplorable by the economic operators.  It is also mentioned that the economic operators would like to
see the establishment of a single window and a refo rm of the regulatory framework for foreign trade,
We would like to hear the response of the Togolese Government and to know if there is any plan to
simplify the procedures.
Tariffs and additional duties
(WT/TPR/S/48, p. 31, para. 15; p. 38-39, paras. 30-31)
We are pleased to see that Togo has been simplifying and its tariff structure and reducing the
duty rates since 1995.  However, the existing tariff structure is still very complicated with different
kinds of duties and taxes levied on imports.  We would therefore like to know if Togo has any plans to
further simplify its tariff structure and reduce the duty rates so as to create a more facilitating
environment for trade.
(WT/TPR/S/48, P. 31, para. 14 and p. 32, Table III.3)
We note that a Community Solidarity Levy (PCS) and a Community Levy (PS) are levied on
imports from outside WAEMU and ECOWAS on behalf  of the CUS respectively.  We would like to
know the purpose of collecting these levies and whether other WAEMU and ECOWAS MemberStates are also collecting such levies from third countries.
State trading, state enterprises and privatization
(WT/TPR/S/48, p. 47, para. 69)
We note that Togo is undergoing a programme for the disengagement of the State from
economic activities and that no sector was, in principle, excluded from the privatization process.  It is
stated that the Togolese Government "reserves the right to take steps, by decree, to protect theWT/TPR/M/48
Page 18
national interest."  We are interested to know under what criteria the Togolese Government will
exercise such right and what "steps" it will take to protect national interest.
Transportation
(WT/TPR/G/48, p. 10, para. 29;  WT/TR/S/48, p. 70, paras. 76-77)
One of the objectives of the Togolese Govern ment in the transport sector is the further
liberalization of the maritime transport services.  In this connection, it is mentioned that freight
distribution has been eliminated so that economic operators could choose their means of transport
freely and that the Autonomous Port of Lomé (PAL), a state-owned company, would have its
cargo-handling services transferred to a private company.  Will foreign investors' participation be
allowed after liberalization?  Apart from the a bove privatization, we would like to know whether
Togo has any other long-term plans to further liberalize the maritime transport services sector,e.g. privatize other port services.
Tourism, hotel and restaurant services
(WT/TPR/G/48, p. 6, para. 12;  WT/TPR/S/48, p. 73, para. 93)
It is stated that the Togolese Government has been using price approval and controls as one of
the interventionist  measures although Togo has generally adopted open door policy since 1970s.  It is
also mentioned that the prices proposed by the persons operating tourism establishments must be
approved by a joint order of the Ministers of Tourism and Commerce, What is the policy objective of
this measure?  Would the Togolese Government consider relaxing such measure so that the prices
could reflect market demand?
Telecommunications services
(WT/TPR/G/48, p. 10, para. 30;  WT/TPR/S/48, p. 74, para. 98)
It is stated that telecommunications servi ces are monopolised by TOGOTELCOM, except for
cellular telephone services where an invitation to tender has been issued for the granting of a secondlicence.  We would like to know the general criteria for awarding licence.  Are both local and foreign
services suppliers eligible and subject to the same requirements?  It is also mentioned that the
liberalization of telecommunications services would culminate in 1999 and that the long-term
objective is the liberalization of all segments of th e market.  We would like to have more information
on the plans and the time-frame.
Financial services
(WT/TPR/S/48, p. 75, para. 103)
We note that only citizens of the West African Economic and Monetary Union (WAEMU)
member countries may direct, administer or manage  a bank, a financial institution or one of their
branches unless there is an establishment agreement.  What is an "establishment agreement"?  Are
financial institutions of all other foreign countries afforded equal opportunity to concludeestablishment agreements?  Are these any specific criteria for concluding an establishment
agreements?  Would the Government consider relaxing such requirement?WT/TPR/M/48
Page 19
(WT/TPR/S/48, p. 76, para. 108)
Under the Insurance Code of the Treaty Establishing an Intra-African Insurance Market
Conference, foreign insurance companies are prohibited from establishing branches or subsidiaries in
Togo though they may do business in the form of companies established under domestic law.  Does
the Government of Togo have any plans to remove this restriction?
JAPAN'S QUESTIONS TO TOGO
Tariff
Import duties on the products of HS Chapters 43, 75 and 78 have been bound at 80 per cent.
However, other industrial products are unbound.  Why are those products are unbound?
Applied tariff rates of industrial products are below 25 per cent.  Please explain Togo's view
on binding tariff rates at the level of its applied tariff rates.
(Chart III.1 (p. 34) & para. 26 (p. 37) of the Secretariat Report)
Why does Togo collect statistical tax? (para. 25, p.37)
Standards, testing and certification
It is reported that Togolese standards and regulations do not distinguish between imported
products and national products, unless there is some specific characteristic at the level of the product
concerned:
- Please explain in which case a product has some specific characteristic.
- Please also explain how the standard differs between imported products and national
products in case there are any specific characteristic (para. 39, p. 41, of the Secretariat
Report).
It is reported that some of the standard regulations are now out of date and need to be
replaced.  Please explain the schedule for the replacement (para. 138, p. 25, of the Government
Report).
Local content requirements
It is reported that some specific advantages are provided for by Article 17 of the Investment
Code in favour of enterprises processing raw materials and intermediate products of Togolese origin
which represent in value terms at least 60 per cent of the total purchases of such materials and
products entering into their manufacture.  Please explain the details of this scheme (para. 50, p. 43, of
the Secretariat Report).
Competition policy
(Para. 78 (p. 49) of the Secretariat Report, para. 174 (p. 29) of the Government Report)
Please explain the regime for the enforcement.  For example, how does the Togolese authority
take action against price fixing among enterprises?
Please provide information on the title of the draft competition law adopted by the
Government on 4 February 1998 and the name of the enforcement body.  Please also outline theWT/TPR/M/48
Page 20
scheme provided for in the draft law.  What is the situation of deliberations on the draft law in the
National Assembly?  If available, please provide a copy of the draft law.
Please explain the activities of the competition authority: such as, the number of personnel,
budget and current enforcement situation of competition law and policy.  If available, please provide acopy of the annual report of the competition authority.
Forestry and wood products
It is reported in paragraph 39 (p. 63) of the Secretariat Report that there is a tax for
environmental purposes collected by the Treasury on charcoal sold locally and that other taxes are
provided for in the Environmental Code.  Please  list the "other taxes" provided for in the
Environmental Code and outline the scheme under the Code.
Services
Togo has made no commitments on distribution services.
Please outline the regulations in this sector which limit national treatment or market access.Is there any subsector of distribution services in which Togo can consider making
commitments?
Port services
According to paragraph 77 (p. 70) of the Secretariat Report, it was decided, a year ago, that
cargo-handling services would be transferred to a private company.
Has the transfer been already done?Does the private company maintain monopoly status in the cargo-handling services?Does the private company operate any service other than cargo-handling services and the
management of containers?
Telecommunications services
It is reported in paragraph 98 (p. 74) of the Secretariat Report that a draft bill to regulate the
liberalization of telecommunication services has been submitted to the National Assembly.
Please outline the content of the draft bill, including regulations which limit market access or
national treatment, if any.
Please explain the present situation of deliberations on the draft bill in the National Assembly,
including the prospect of the adoption of the draft bill.
Banking services
It is reported that only citizens of a WAEMU member country may direct, administer or
manage a bank, a financial institution or one of their branches, unless there is an establishment
agreement (para. 103, p. 75, of the Secretariat Report).
Please give further details of this scheme, especially regarding the "establishment agreement".
If it is an agreement to be concluded between each bank, this may be contrary to the MFN principle.WT/TPR/M/48
Page 21
Such regulation has the effect of limiting the commercial presence of foreign banks other than
those of WAEMU member countries.  Does Togo have any intention of eliminating or relaxing it?
Insurance services
It is reported that the Insurance Code prohibits the establishment in Togo of branches and
subsidiaries of foreign companies.  Does Togo have any intention of eliminating this regulation
(para. 108, p. 76, of the Secretariat Report)?
WRITTEN QUESTIONS FROM CANADA
FROM GOVERNMENT REPORT (WT/TPR/G/48)
On telecommunications
With reference to Chapter II, Section 2, sub-section iii (Services), Togo has indicated its
objective of liberalizing all segments of the market.  We would appreciate receiving more information
as to how Togo will go about opening its market, in terms of which sub-sectors will be liberalized firstand the projected timeframe.
On Technical Assistance and High Level Meeting on Integration of Least-developed Countries
With reference to Chapter II, Section 1, para. 21, please clarify what role, if any, trade-related
technical assistance has played in the changes that Togo will make in its trade-related infrastructure?
With reference to Chapter II, Section 3, para. 52, fourth objective, does Togo have any views
on how the high level process is unfolding to date?  Does Togo have any preliminary observations on
the integrated replies on the international organisations?
REMARKS AND PRELIMINARY QUESTIONS FROM THE EUROPEAN UNION
Remarks:
From very early on, Togo decided to liberalize its economy externally in order to derive
maximum benefit from its situation as a transit country.  Hence, in terms of customs duties, Togo is
one of the most open countries in the subregion.
In the years ahead, Togo's commercial policy will be largely dominated by economic
integration within the WAEMU framework.
The institution of a CET within the WAEMU, the average level of which should not be lower
than Togo's current tariff, should have no major fiscal and budgetary impact.  Instead, it should
simplify the tariff structure and make it possible to eliminate part of its tariff escalation (duties
currently lower on some finished goods than on semi-finished products).
Economic integration on the other hand could affect trade flows in the subregion causing a
loss of competitiveness of the transit economies that  are currently the most liberal and could lead to
significant diversion of traffic towards the more industrialized economies in the subregion.  A recent
study into the training needs of the autonomous port of Lomé highlighted its weak management and
lack of productivity.  Being heavily dependant on the quality of the road network, the port could be
hard-hit by these developments in the absence of thoroughgoing reforms.WT/TPR/M/48
Page 22
Questions:
What are the reforms planned by the Government of Togo, and according to what timetable,
to make available national accounts and a flow-of- funds table according to community standards and
in line with international criteria?
What are the measures envisaged by the Government of Togo to comply with community
convergence criteria and deal with the impact of economic integration (CET) (customs organization,
changed competitiveness and diversion of trade flows – sectoral policies)?
Trade policy falls within the community purview  and decisions must be taken by the Council
of Ministers.  What is Togo's position on the system of introducing national transitional measures
(applied nationally or regionally) in the form of degressive protection taxes, short-term import taxes
and reference values?
Remarks:
The credibility of any trade policy in Togo will be strongly influenced by its success in
improving the quality of its management of public affairs.  Already there is a major problem of failure
to abide by the macroeconomic convergence criteria imposed under the WAEMU (growth, public
finances …).  This is the result of the political and economic uncertainties that are paralysing thecountry, but also the result of bad governance:  no clear dividing line between public and private
goods, lack of transparency in the management of public funds, the erosion of professional ethics in
the Civil Service, insecurity and the arbitrary functioning of the judicial system, among other things.
Any trade policy adopted must be tested against the capacity and will of the Government to
undertake:
- The elimination of non-tariff barriers (highway controls);- customs reform to make it possible to reap the benefits (in terms of fiscal receipts and
equal treatment) of a simplification of the customs classification;
- fiscal reform to avoid unlawful pressure on companies (excessive advance tax
payments, and so on);
- judicial reform enabling investors to avail themselves of the rights accorded to them
under the investments codes, OHADA business law,  and so on;
- budget reform designed to put an end to the accumulation of defaults on domestic
government debt which is undermining the entire production and financial system;
- continued privatizations and the institution of a genuinely monopoly-free market so
that market forces can take root free of arbitrary government interference.
The move towards "good governance" goes hand in hand with the strengthening of
democracy in the country, which should be based on the genuine independence of the executive,
legislative and judicial branches and the creation of monitoring institutions with effective means of
action (constitutional court, court of audit, economic and social council, national human rightscommission).
Questions:WT/TPR/M/48
Page 23
What are the macroeconomic recovery measures being contemplated by the Government of
Togo?
What administrative, judicial and customs reforms does the Government of Togo intend to
take to ensure greater transparency, reliability and neutrality in the treatment of the private sector?
What are the steps planned to reform the public sector and in particular, private sector support
services (port of Lomé, financial system, chambers of commerce, infrastructure, water, electricity, for
instance)?
WRITTEN QUESTIONS FROM THE UNITED STATES
Services
Given Togo's strategic location and its port at Lomé, the country's services sector offers
considerable potential.  However, although services account for a substantial proportion of national
production, Togo consistently runs a trade deficit in services, thereby leading to a persistent current
account deficit despite a trade surplus in goods.  The service sector is dominated by governmentmonopolies and suffers from a severe lack of investment.  As a result, services infrastructure is
woefully inadequate.  Does the Government of Togo intend to privatize its state-owned enterprises in
the services sectors?  If so, which sectors and when?
One way to encourage more foreign investment would be to improve upon Togo's existing
market access commitments for services.  We appl aud Togo for providing initial commitments for
travel and tourism, entertainment, and some construction services.  These commitments, however, are
not indicative of the extent of liberalization that has been carried out by Togo.  Additional
commitments are required to provide predictability  for investors in the services sectors.  The
Government should give serious consideration to including other key sectors in its schedule, includingtelecommunications services financial services, distribution services, professional services, and
transportation services.  By making the reforms irreversible, additional commitments will boost
confidence and help to attract foreign investment.  And attracting foreign investment in many of these
areas is a cost-free way to achieve vitally needed infrastructure improvements that will have a
favorable impact on the entire economy and on future growth rates.  Has Togo given thought to
making additional services commitments?  If so, which sectors are under current consideration?
According to the Secretariat's report, an invita tion to tender has been issued for the granting
of a second license for the supply of cellular telephone services and a draft bill to regulate the
liberalization of telecommunication services has been submitted to the National Assembly.  In
addition, the capital of Togo Telecom is supposed to be opened up to private sector participation in
1999.  What is the status of these initiatives?
The Secretariat's report points out that the Togolese banking system is excessively liquid and
that banks limit their loans and investments because the legal system does not guarantee the recovery
of debts that are at risk.  Does the Government have any plans to amend the legal code to correct this
problem?
Tariffs
As we have already observed, WAEMU generally acts as a positive force for trade
liberalization.  However, as a member of WAEMU, Togo may face some problems next year with theadvent of the organization's Common External Tariff (CET).  Togo has already lowered its import
duties and simplified its Import Fiscal Duty to a three-tier system.  In fact, Togo's import duties are
among the lowest of the WAEMU countries.  The CET may require Togo to raise some of its import
duties and will erode the advantage it now enjoys by having lower duties than some of its neighbours.
Has Togo estimated what the impact of the CET will be on its import duties?  In addition, what willWT/TPR/M/48
Page 24
be the impact of the CET on goods re-exported by Togo which are currently subject to a duty of only
4 per cent.
Agriculture
Togo is to be commended for its progress in liberalizing this sector and abolishing price
controls on most products.  As a result, we have seen the appearance of private exporters of such
products as coffee and cocoa.  However, we note that Togo's main cash crop, cotton, continues to be
dominated by a state-owned company.  Is Togo considering the privatization of the Togolese Cotton
Company?  If so, when might this privatization occur?
Investment
According to the Secretariat's report, since 1994, CFAF 17 billion has been invested in
enterprises under the free zone regime, while no investment has been approved under the investment
code since 1993.  Has Togo considered that its investment regime may overly favor investments in the
free zone, which is geared for the export market, to the detriment of investments under the investmentcode.  By encouraging, exclusively or primarily, export-oriented investment, the current regime may
be acting as a disincentive to other kinds of needed investment.  We also note that free zones can be a
source of distortion and unfair competition in th e domestic market.  Although free zone enterprises
pay duties and taxes when they sell up to 20 per cent of their production on the domestic market, it is
not certain that they are compelled to do so for their intermediate consumption.  What measures arebeing taken to guard against these distortions?  In addition, how will WAEMU's forthcoming
common investment code affect Togo's free zone regime?
Although the regulations that govern the establishment of foreign and domestic entities are
well defined, implementation of these regulations is often discretionary and can lead todiscrimination.  What steps is the Government of Togo taking to achieve greater regulatory and
judicial transparency?
Privatization
According to the Secretariat's report, at th e end of 1997, there were still 25 state-owned
companies and eight parastatals operating in Togo.  The movement towards privatization appears tohave slowed significantly in 1998.  What are the plans for 1999?  We encourage the Government to
continue with privatization and phase out the monopolies for those state enterprises that remain in
operation.
Miscellaneous
According to the Secretariat's report, registration formalities for importers and exporters,
particularly foreigners, can take three to six months.  Are there any plans to revise the regulatory
framework for foreign trade or to establish a one-stop window as traders have suggested?
Streamlining these procedures might also encourage more informal importers to register.
We note that government institutions grant preferences to Togolese companies in awarding
contracts.  Foreign companies that are awarded a public contract are also required subcontract at least
30 per cent of it to a Togolese company.  We encourage Togo to join the WTO Agreement on
Government Procurement.  Has Togo given any thought to joining this agreement?
According to the Secretariat's report, a bill to organize competition which would emphasize
government action on control of competition instead of prices was submitted to the National
Assembly in 1998.  What is the current status of this bill?WT/TPR/M/48
Page 25
What steps are being taken to bring the Bangui Agreement on intellectual property, to which
Togo is a signatory, into compliance with TRIPS?
We encourage Togo to upgrade its legal system and improve the process of judicial training
and impartial application of laws.  The emphasis should be on creating a better commercialenvironment for the private sector through freer trade, more open investment, and regional economic
integration.  Please describe any steps that are being taken to address these items.WT/TPR/M/48
Page 26
ANNEX II
ANSWERS AS PROVIDED BY THE TOGOLESE AUTHORITIES TO
THE QUESTIONS ASKED
I. ECONOMIC ENVIRONMENT
Economic growth and export diversification;  Asian financial crisis
To ensure continued economic growth, Togo adopted a policy of export diversification by
means of developing and promoting non-traditional products, more specially foodstuffs.  Thanks to
the elimination of the monopolies, these products are already turning in good performances.
The strategy also covers the processing and development of certain selected products in
sectors such as agriculture (manufacture of cottons eed oil) and mining.  In the mining sector, marble
production has been entrusted to the private sector;  and cement manufacturing capacity is now being
expanded.
As part of a research policy, studies are being conducted along these lines in each sector.
One of the strategies agreed by the States members of WAEMU to sustain lasting economic
growth is to eliminate the constraints stemming from the small size of our domestic markets by
speeding up the creation of a regional common market.
As regards the Asian financial crisis, it has certainly had repercussions on the Togolese
economy by reason of Togo's trading links with the countries in that region (cotton fibre used by their
factories).
Drawing on the lessons from the Asian financial crisis and the impacts on its economy, Togo
intends to diversify its outlets by taking advantage of the opportunities offered by TICAD II, which is
establishing new cooperative relations between the countries of Africa and Asia.
Deficit in current account and in the services trade;  capital flows
To correct this short-term situation, the following steps have been taken:
- Giving fresh impetus to the tourism sector by refurbishing its infrastructure;
- speeding up the privatization process, especially of telecommunications services.Besides, it is planned to restructure public debt service.Lastly, Togo has stepped up its efforts to identify concessional funding from non-traditional
funding sources.
Foreign direct investment:  legal provisions and application;  WAEMU community code
As regards foreign direct investment, despite reforms and incentives to private investment, the
latter has shown no appreciable increase as the environment has not been propitious.  The measures
taken include improving the legal and judicial business environment, the overhaul of the justice
system, private sector reform and the holding of a forum on the private sector.  Current legalprovisions will be replaced in the year 2000 by  those of the WAEMU community investment code.WT/TPR/M/48
Page 27
Moreover, the community investment code, the customs union, the harmonization of domestic
fiscal systems, and the harmonization of laws are all reforms envisaged to replace small domestic
markets with a regional common market that co uld attract much larger investment flows.
Privatization
There are two key reasons for the tardiness of the privatization process:
- The need to draw up in advance an appropriate strategy for each case based on the
findings of audits (simple liquidation, restructuring, privatization, divestment of
assets, and so on);
- unsuccessful public tenders.
In addition, there is the process of examining and adopting redundancy mitigation measures
to assist the victims of deflation.
We note that the programme is continuing.
Competition policy
As regards competition within the Union, a study is underway into the drafting of a
community competition law.  A draft anti-dumping code is under study by the Commission to protectcommunity production against dumping.
Compatibility of WAEMU-ECOWAS reforms
The WAEMU was established in January 1994 to act as a proper foundation for the common
currency, the CFA franc, and to speed up the process of economic integration in West Africa.
The devaluation of the CFA franc and the creation of the WAEMU are two measures taken by
the Heads of State of the West African Monetary Union (WAMU) to enhance the competitiveness of
the economies of Member States on a lasting basis, especially in preparation for 1 January 2000 when
the Uruguay Round Agreements were to enter into force.
The WAEMU approach is not inconsistent with  the ECOWAS.  Although the objectives are
very similar, there is a problem in regard to the pace at which these are being achieved.  In preparation
for 1 January 2000, the liberalization of intra-WAEMU trade is spread over three and a half years
(01/07/96 to 31/12/99), while the convergence of national tariff structures towards the CET is
programmed over one and a half years (01/07/98 to 31/12/99).
The timetables for dismantling the tariffs, both internal and external, are being respected by
the Member states and, accordingly, WAEMU has undoubtedly helped to speed up the integration
process in West Africa and to reinforce the activities of ECOWAS.
Moreover, the West African states have agreed that ECOWAS would ultimately be the sole
economic integration organization in the region.
Meanwhile, the risks of inconsistency in the reforms are completely under control.  For
example, in preparing the customs union sc heme WAEMU has taken account of ECOWAS's
achievements in that regard:  a tariff and statistical nomenclature, harmonization of foreign tradestatistics, a single customs document, and so on but, conversely, the ECOWAS/CET would take the
WAEMU/CET data into account.  Furthermore, dialogue had been instituted between the ECOWAS
Executive Secretariat and the WAEMU Commission.WT/TPR/M/48
Page 28
Intra-Regional and External Competitiveness
The reforms undertaken within the framework of structural adjustment programmes and the
WAEMU are intended to strengthen the competitiv eness of the national economy in preparation for
the increased competition that will result from the implementation of the deferred measures under the
Marrakesh Agreement establishing the WTO.
Nevertheless, Togo needs the support of the international community in implementing the
reforms, which will give rise to both budgetary a nd economic transitional costs.  Substantial resources
are needed to support programmes for the restructuring and repositioning of the private sector.  The
question of debt relief should also be taken into account.
Limited participation by Togo in WTO activities
In regard to notifications, the appropriate structure for managing WTO agreements is lacking.
Togo is engaged in setting up such a structure and is requesting the assistance of the WTO Secretariatand for it to be considered within the integrated technical assistance framework.
As to the small number of tariff bindings and services,  the WAEMU has pledged to draw up
a common list of concessions to replace the individual lists submitted by Member states.
Preferential agreements:  Lomé;  erosion of preferences
Although these agreements would seem incomp atible with WTO rules, meetings of ACP
states have shown the need to protect the competitive position of our countries so that they are not
marginalized.
II. TRADE MEASURES AND SECTORAL POLICIES
Registration and documents
The law on the single window has already been adopted by parliament.  It will lead to the
creation of an appropriate structure within the Chamber of Commerce to provide investors with theinformation needed for setting up their operations.  The aim is to respond to investors within 72 hours,
provided that all the necessary conditions are met.
Customs:  transparency, pre-shipment inspection
As regards existing exemptions, many have already been eliminated.
Free zone:  commentators have said that the development of activities in the free zone is
being done at the expense of other customs regimes with the result that private initiative can only be
exercised under a derogation regime, even when the products manufactured are intended for thedomestic market.
The free zone was created, inter alia,  to stimulate exports and job creation.  However, the
delegation notes the pertinent remarks by WTO Members in favour of an evaluation of the use of this
regime and of its impact on the economy.
Advance tax payment:  the delegation has noted the remarks made but underlines that the
advance payment had been instituted, on the one hand, primarily with informal operators in mind, as a
means of assessing them for a minimum tax and, on the other, to improve the collection of direct
taxes.WT/TPR/M/48
Page 29
As regards the monopoly of COTECMA it had been very badly received by importers but it
was an IMF demand.  It would therefore be appropriat e to review the situation for convincing results.
At all events, it is envisaged that the WTO Agreement on Customs Evaluation will be
implemented within the WAEMU fr amework as from 1 January 2000.
Tariffs:  simplification, PCS, PC, cons olidation, domestic taxes, contraband
The WAEMU/CET has simplified the structure of Togo's import duties and taxes.  The CET
does not affect Togo's tariff structure, which has a 20 per cent import tariff ceiling.
Nevertheless, the product classification resulting from the CET was leading to the
reintroduction of customs duties on some products such as waxcloth mentioned by two speakers,
sugar, milk and so on.
Although the CET is helping to correct Togo's customs tariff escalation as identified by WTO,
a formula should be found, even in the short-term, for dealing with the inflationary pressures and the
social problems that will result from this tariff increase.  Togo is currently working with the WAEMU
Commission in search of a solution to this problem.
The simplification of the structure of import taxes and duties cannot include the
WAEMU/PCS and the ECOWAS/PC.  These are separate income-earning mechanisms for these two
organizations of which Togo is a member.
As to the limited number of tariff bindings, it is to be hoped that the ongoing task of drawing
up a common WAEMU list will take account of the comments made by WTO Members.
To counteract contraband trading of in-transit goods that are making their way into the
national territory, a customs escort has been instituted to the border of the country of destination.
Furthermore, a WAEMU study is under way with a view to strengthening the capacity of
customs administrations and drawing up a plan of action to combat fraud.
Import prohibitions:  domestic content;  standards
In regard to the above matters, action is being taken within the WAEMU with a view to
enacting the relevant community provisions.
Government procurement
The delegation takes note of suggestions concerning Togo's accession to the Plurilateral
Agreement on Government Procurement.
TRIPS:  Bangui Agreement
Togo does apply the Bangui Agreement, which is being revised within the OAPI.  The
revision is designed to bring the new texts into line with those of the WTO.
Agriculture:  public enterprises
As the sector is a strategic one, the Government's withdrawal is taking place according to a
carefully set timetable.WT/TPR/M/48
Page 30
Services:  maritime transport, Port of Lomé;  telecommunications
In the sphere of maritime transport, the strategy is to improve efficiencies through the
enhanced quality of the services provided.
The Lomé port infrastructure has been refurbished and its management is being upgraded to
make it more efficient.
Telecommunications:  a law was adopted by the National Assembly early in 1998 for the
liberalization of all segments of the market.  The process started with the grant of a licence to provide
mobile phone services and also entails the establishment of a regulatory agency for the sector and a
frequency management unit.
By 2001 the liberalization of the sector should culminate in the opening of the capital of
TOGO Telecom to private investors.
Financial services:  the privatization process of banks and financial services is progressing.
The adopted strategy is designed to diminish the Government's role in the sector.
__________