Concluding remarks by the Chairperson

This first joint Trade Policy Review of Djibouti and Mauritius, which constitutes the second review of Djibouti and the fourth of Mauritius, has offered a unique framework for discussion of both countries' trade and related policies and practices. Comprehensive reports by the WTO Secretariat, the Governments of Djibouti and Mauritius, together with insightful comments by our discussant H.E. Gabriel Duque, Ambassador of Colombia, and valuable interventions by Members have stimulated our dialogue during this two-day session.

I would like to praise the full participation of the high-level delegations, led by H.E. Mr. Hassan Ahmed Boulaleh, Minister Delegate for Trade of Djibouti, and by H.E. Mrs. Usha Dwarka-Canabady, Secretary for Foreign Affairs of Mauritius, as well as the rest of the two delegations, including H.E. Mr. Mohamed Siad Douale, Ambassador and Permanent Representative of Djibouti and H.E. Mr. Israhyananda Dhalladoo, Ambassador and Permanent Representative of Mauritius.

Members recognized that Djibouti and Mauritius are both small countries highly exposed to exogenous shocks, including fluctuating international market and climatic conditions. Both countries have recorded relatively good GDP growth in spite of the global economic crisis. Development strategies are being implemented to further stimulate long term growth and improve living standards. Members commended both Djibouti and Mauritius on their ongoing reform efforts to facilitate trade and further improve their business environments including through the dismantling of their remaining restrictions to investment and through investment in relevant infrastructure. They urged Mauritius to ensure that its import permit system is not used to protect domestic producers, and Djibouti to fully implement the WTO Customs Valuation Agreement. Some Members encouraged both countries to ensure the sustainability of their ongoing reforms with a view to further diversifying their economies, particularly in the case of Djibouti.

Members commended Djibouti and Mauritius for their support to the multilateral trading system; and congratulated Mauritius for having already submitted its trade facilitation category A commitments. Djibouti and Mauritius were also encouraged to meet their notification obligations and to further align their procedures for developing and implementing standards and technical regulations with international norms. Given the constraints faced by both countries, technical assistance from other WTO Members in this matter would be most helpful.

Noting that Djibouti and Mauritius were promoting their regional trade flows and economic development under COMESA, Members sought information about progress made so far in ensuring smoother and more effective implementation of this Regional Trade Agreement.

Members also questioned the effectiveness and consistency of tax policies and practices in Djibouti and Mauritius. Some Members expressed concerns about the possible distortive effects of Djibouti's taxation system on business development. Attention was drawn to Mauritius' low level of tariff bindings, while its recent tariff liberalization was appreciated. Mauritius was also asked to comply with its national treatment commitments when imposing excise taxes on spirit drinks.

Members were appreciative of steps taken by Djibouti and Mauritius to improve their regulatory frameworks. Both countries have undertaken initiatives towards strengthening their intellectual property rights regimes. They were urged to accelerate their efforts in this regard and ensure their full participation in related treaties. Members took note of the large-scale State intervention in both economies, and sought further clarifications on state-owned enterprises in Mauritius and the standstill in privatization processes in Djibouti. Some Members sought information about foreign participation in government procurement, in particular existing mechanisms to ensure internationally competitive bidding processes.

Members welcomed agricultural reforms in Mauritius, and energy and services reforms in both countries. They believed that further openness in these sectors should continue, with a view to attracting more investment flows.

Members appreciated the oral and written responses to their questions provided by both delegations, and look forward to receiving further written responses to outstanding questions within one month.

This successfully concludes the joint Review of Djibouti and Mauritius. Members have shown a keen interest in their trade and related policies and their participation in the WTO. I encourage the two countries under review to take Members' concerns into account in order to enrich their reform processes. I also invite Members to grant special support to Djibouti, given its LDC status, and to assist both Djibouti and Mauritius in meeting their respective challenges.