Concluding remarks by the Chairperson

This third Review of Djibouti has offered a unique framework for Members' discussion of its trade and related policies and practices. Comprehensive reports by the WTO Secretariat and by the Government of Djibouti, together with Djibouti's introductory statement, insightful comments by our discussant H.E. (Dr.) Adamu Mohammed Abdulhamid, Ambassador of Nigeria, and valuable interventions by Members, have stimulated our dialogue during this two-day session.

I would like to highlight the active participation by H.E. Mr. Mohammed Warsama Dirieh, Minister of Trade and Tourism of Djibouti, and his high-level delegation in which I recognize H.E. Mrs. Hassan Kadra Ahmed, Ambassador and Permanent Representative of Djibouti to the WTO. Such an important delegation testifies the political commitment of Djibouti to this TPR exercise and the seriousness with which it has prepared this meeting.

Members praised Djibouti's strong macro-economic performance in terms of GDP growth and price stability during the period up to the Covid-19 pandemic. They took note of the ongoing rebound of the economy that has been fostered by large investments in infrastructure including railway, port, development of free trade zones, electricity supply through the interconnection with the Ethiopian grid, and renewable energies expected to reach 100% of total energies supplied by 2035. All these investments in infrastructure aim at strengthening the role of Djibouti as a key logistics Hub in Eastern Africa. Nonetheless, they have aggravated Djibouti's indebtedness and the dualism between its modern dynamic hub of re-export on the one hand and an informal sector that seems to be handicapped by the small size of the economy, high inputs costs and unskilled workforce.

Djibouti was commended on its successive growth strategies, namely the 2015-2019 Accelerated Growth and Employment Strategy (SCAPE) and the new “Inclusion, Connectivity, Institutions (ICI)” national development plan for 2020-24, both under the aegis of its long-term strategy document, “Vision 2035”. Members encouraged Djibouti to further focus on economic diversification and inclusiveness of, notably, gender and MSMEs, in its future strategies.

Members congratulated Djibouti for its active participation in the multilateral trading system embodied in the WTO, and for participating in the Joint-Statement Initiative on Investment Facilitation for Development. They noted that Djibouti was also engaged in regional and bilateral arrangements.

Djibouti was commended on its reform efforts that place it among the 20 fastest global reformist countries. In fact, during the period under review, Djibouti, inter alia, undertook legislative reforms; simplified its investment regime through the establishment of a single window system for all investors; implemented various trade facilitation measures, including the modernization and digitization of its customs system and port communities; and established a standards and technical regulations agency that remains to be operationalized.

Members encouraged Djibouti to pursue its efforts to improve its business environment, including governance and transparency. On its trade regime, Members noted that transparency could be improved through submission of overdue notifications to the WTO, in particular of domestic support in agriculture, State trading enterprises, TBT, and SPS measures. Djibouti was also encouraged to notify the dates for the implementation of its commitments on categories B and C measures under the WTO Agreement on Trade Facilitation. Concerns were expressed about the use of the internal consumption tax which was viewed as a customs tariff; some customs valuation practices; the lack of transparency in some import authorizations and charges; and the overall lack of trade data.

Members noted Djibouti's participation in several conventions related to the protection of intellectual property rights. They encouraged Djibouti to fully implement them with a view to further protecting the related rights. Some Members encouraged Djibouti to join the plurilateral Agreement on Government Procurement. Areas of interest to Members for further information include: importers' licensing procedures; adoption of a digital code; State-owned enterprises and their reforms; status of integration with other African countries; special economic zones; competitiveness and manufacturing; foreign investment and good governance in mining, port, and maritime activities.

Members appreciated the oral and written responses provided by the delegation of Djibouti to their questions and look forward to receiving further written responses to any outstanding and follow-up questions within one month.

This successfully concludes the third Trade Policy Review of Djibouti. The large number of 32 interventions by Members during the first session of this meeting, and 4 during the second session testifies their keen interest in Djibouti's trade and related policies, and its participation in the WTO. I encourage Djibouti to take Members' concerns and comments into account while considering future reforms of its trade regime. I also invite Members to consider granting special support to Djibouti, given its LDC status, and to assist it to address its trade and development challenges.