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Press release:
Socio-political stability and ambitious reforms could improve economic
performance
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1. This second Trade Policy Review of Togo has revealed its reform
efforts since its first review in 1999, and the challenges it faces,
as a least-developed country, in participating in the multilateral
trading system. Our discussions have benefited greatly from the full
engagement of the delegation of Togo, led by H.E. Mr. Jean-Lucien Savi
de Tove, Minister of Trade, Industry and Handcraft, insightful
contributions by the discussant, Mr. Gunther Sleeuwagen, and comments
by participants.
2. Members congratulated Togo on its reform efforts, in particular
the advance of its privatization programme. Nevertheless, the
privatizations of the flagship phosphate and electricity companies
were reversed. Subsequently, cement overtook phosphate as Togo's
leading export. Despite rising volumes, cotton export receipts have
been adversely affected in recent years by weak world prices, as well
as the appreciation of the euro. Because of socio-political turmoil,
the business environment has not been sufficiently compelling to
attract significant investment. These factors, together with the
suspension of foreign aid (on which Togo is heavily dependent), and
the high costs of inputs (including petroleum products), have led to
sluggish economic growth, causing per capita income to decline and
poverty to become more significant.
3. Members commended Togo on the trade liberalization that has
taken place in the context of the establishment of the Common External
Tariff of the West African Economic and Monetary Union (WAEMU). They
sought information on the full establishment of the free-trade area
component of both WAEMU and the wider Economic Community of West
African States, as well as on the plan for their merger. Members
enquired about Togo's use of the trade preferences available to it,
and about its current and future participation in bilateral trade
agreements. They encouraged Togo to further integrate its trade policy
into its overall economic policy for the purposes of further
exploitation of its comparative advantages (the deep-water port of
Lomé, substantial reserves of phosphates, and significant
cotton-producing capacity); sustainable development; and reduction of
poverty and unemployment.
4. Noting that, in addition to customs tariffs, various other
duties and charges also apply to imports, Members enquired about the
conformity of the value-based inspection and verification charge with
Article VIII of GATT 1994, and of the special tax on beverages with
Article III. They encouraged Togo to improve its multilateral
commitments by reducing bound tariff rates, and enlarging the coverage
of its commitments on goods and services. Members also sought
clarification on a number of issues, notably: customs procedures and
valuation, and the transit regime; TBT and SPS measures; export
processing zone and investment regimes; public procurement; protection
of intellectual property rights; agriculture (food security and
foreign exchange earnings); and tourism, financial and
telecommunications services.
5. Members appreciated the responses provided by the delegation of
Togo.
6. In conclusion, I congratulate Togo on its liberalization
efforts, and encourage it to pursue its reforms and its agenda for
political changes. The reforms, together with socio-political
stability, should enable Togo's access to debt-reduction initiatives,
liberate resources for the purpose of poverty reduction, and enhance
the confidence of and support by development partners, including
through trade-related technical assistance. Such assistance would have
a significant role in sustaining the momentum of the reforms and
strengthening Togo’s adherence to WTO principles as well as its
ability to participate in the WTO, notably the Doha Development
Agenda. |
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