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WORLD TRADE ORGANIZATION

O

RGANISATION MONDIALE DU COMMERCE

O

RGANIZACIÓN MUNDIAL DEL COMERCIO

WT/TPR/M/197/Add.1

14 May 2008

(08-2222)

Trade Policy Review Body

2 and 4 April 2008 Original: English/French

anglais/français inglés/francés

TRADE POLICY REVIEW

MADAGASCAR

Minutes of Meeting

Addendum

Chairperson: H.E. Mr. Mario Matus (Chile)

This document contains the advance written questions, and replies provided by Madagascar. 1

Organe d'examen des politiques commerciales

2 et 4 avril 2008

EXAMEN DES POLITIQUES COMMERCIALES

MADAGASCAR

Compte rendu de la réunion

Addendum

Président: S.E. M. Mario Matus (Chili)

Le présent document contient les questions écrites communiquées à l'avance et les réponses

fournies par Madagascar. 1 Órgano de Examen de las Políticas Comerciales

2 y 4 de abril de 2008

EXAMEN DE LAS POLÍTICAS COMERCIALES

MADAGASCAR

Acta de la reunión

Addendum

Presidente: Excmo. Sr. Mario Matus (Chile)

En el presente documento figuran las preguntas presentadas anticipadamente por escrito, junto con las respuestas facilitadas por Madagascar. 1 1

In English and French only./En anglais et français seulement./En inglés y francés solamente.

WT/TPR/M/197/Add.1

Page 3

QUESTIONS ÉCRITES À MADAGASCAR

BRAZIL

With respect to investment in the Industrial Free Zone (IFZ), the Report by the Secretariat states that a

new framework is planned for 2008 (Section II (2), paragraph 7) and that the Malagasy authorities "have indicated that the investment and IFZ regimes are due to be modified from 2008 onwards" (section II (4), paragraph 36). Can Madagascar provide an indication of the actual changes that are envisaged for the IFZ regime? INDIA Q1. Para 2 of Madagascar's Report, identifies problems of access to financing and electrical energy supplies hampering enterprise development. However, it appears from Para 13, that not much public investment or FDI has entered the country's electrical energy sector. We request Madagascar to

provide details of the investments made in the electrical energy e.g. generation, transmission, break-

up in terms of utilization in agriculture, industrial and domestic sectors since its last Trade Policy

Review in 2001 both in terms of value in US$ and units in megawatt. Q2. Para 72 of Madagascar's report speaks of a 5 year road map to reduce poverty in accordance with MDGs. What is the current proportion of people living on less than a dollar a day, proportion of

people who suffer from hunger and if any verifiable timetable and targets have been set for achieving

this Goal. What has been the progress of MAP on this front since its launch in January 2007? Q3. Has Madagascar done a comprehensive evaluation of its existing infrastructure, plans to develop/re-develop, and shared with its development partners in seeking 20% increase in its trade [Para 83 of Madagascar report refers]? Q4. Para 91 mentions that improvement to the business climate is a major concern. Could Madagascar share details of its plans put in place a plan to attract investment including FDI?

Q5. In Para 97, Madagascar states that it attaches importance to the social field and putting in place

infrastructures which are needed for the development of the private sector. As it appear clear from

Para 101, the main hindrance to the development of small private sector is high borrowing rate. What

are the steps Madagascar proposing to take to make credit available to the private sector on attractive

terms?

Q6. We request Madagascar to share details of rice cultivation e.g. area under cultivation, varieties

planted, yields etc. and the quantity she plans to export to India as mentioned in Para 107 of its report.

Q7. Para 159 highlights Madagascar's defined projects and activities for increasing competitiveness of

its exports, has Madagascar set forth any timeline, financial and technical assistance internal and external needed to put into practice these activities? Q8. Para 191, 193 and 208 indicate broad areas and reiterates need respectively of Technical Assistance of Madagascar. Has Madagascar identified and quantified these needs, plans for availing

the Technical Assistance, career plans for its human resource, in-service officers for making optimum

use of offers from its partners? Q9. The Secretariat Report in Para 3 points out that Government finance is facing considerable structural problems, particularly because of the common practice of giving tax and customs exemptions. Does Madagascar plan to reduce such practices in order to improve its financial situation?

WT/TPR/M/197/Add.1

Page 4

Q10. We would appreciate to receive details from Madagascar of the steps it has taken or proposes to take to address the trade deficit it has been experiencing since 2002. Q11. Para 36 under Trade and Investment Regimes of the Secretariat Report states that the general framework for investment in Madagascar did not change substantially since its first TPR in 2001 and

that authorities have indicated that the investment in Industrial Free Zone (IFZ) regimes are due to be

emphasized from 2008 onwards. We request Madagascar to share the plans and the timelines in this regard.

UNITED STATES

WT/TPR/S/197

SUMMARY OBSERVATIONS

(1) ECONOMIC ENVIRONMENT

Page vii, paragraph 3:

According to the Secretariat, "government finance is facing considerable structural problems, particularly because of the common practice of giving tax and customs exemptions and the narrow tax base as a result of the size of the informal sector (estimated to be around 30 per cent of total GDP). Improvements are expected as regards governance, including transparency in fiscal management." The United States welcomes Madagascar's plans to improve its governance and transparency in fiscal management, as announced in the 2008 Budget. The Secretariat Report, nonetheless, seems to highlight an important issue of transparency in fiscal management. With regard to "the common practice of giving tax and customs exemptions," how can interested parties determine what the rules are? Where are the rules published? What will be the primary focus of reforms to the tax and customs administrations, announced in the 2008 Budget? Has the government already begun work on the reforms? How will the results of the reforms be made public?

II. TRADE AND INVESTMENT

(3) TRADE AGREEMENTS AND ARRANGEMENTS (ii) Regional Agreements (f) Relations with the United States of America

Page 19, Paragraph 34:

The United States notes that "Madagascar has been eligible, since

1 March 2002,

for the special provision on the inclusion of fabrics from third countries..." According to U.S. data, U.S. imports of Malagasy textile exports under the AGOA in 2006 were US$230 million (rather than the US$195 million cited in the Secretariat's report). What steps is Madagascar taking to ensure it remains competitive in this sector and to exploit its AGOA market access opportunities in other sectors? (4) INVESTMENT

Page 20, Paragraph 36:

We understand that the National Assembly adopted a new Investment Law in December 2007. Where is it published? How can investors determine what the new Law says? We The United States notes that Madagascar's eligibility dates from 6 March 2001, rather than

1 March 2002.

WT/TPR/M/197/Add.1

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note that a number of the points in this section of the Secretariat's report need updating to reflect the

new law. The United States would be grateful to receive such updated information.

III. TRADE POLICIES AND PRACTICES BY MEASURE

(2) MEASURES DIRECTLY AFFECTING IMPORTS (ii) Customs procedures

Page 27, paragraph 8:

We note that Madagascar last notified the WTO under Article 22 of the Customs Valuation Agreement in April 2001. Now that Madagascar has incorporated the Customs Valuation Agreement into its Customs Code, will Madagascar amend its April 2001 WTO notification to reflect this action? (iv) Customs levies Page 35, Paragraph 22 and Table III.4: The Secretariat's report notes that the 2008 Finance Law introduced certain excise duties and charges that are higher on imported products than on domestically produced goods. Please explain how they are applied in a manner that would comply with GATT Article III. (v) Prohibitions, quantitative restrictions and licences Page 36, paragraph 26: Are the licenses required for import into Madagascar automatic or non- automatic? (vi) Standardization, accreditation and certification

Pages 37-38, Paragraphs 29 and 30

: When will Madagascar notify its technical regulations (i.e. mandatory standards) to the WTO? What process does Madagascar follow to turn a voluntary standard into a (mandatory) technical regulation? Is a draft regulation published? Is there an opportunity for interested parties to comment? Is the final version published as adopted in the Official Journal? What criteria does Madagascar use to recognize independent laboratories? Why does Madagascar find self-declarations of conformity unacceptable? (vii) Sanitary and phytosanitary (SPS) measures

Page 38, paragraph 32

: Has Madagascar identified an SPS inquiry point? What steps is Madagascar taking to begin notifying SPS measures to the WTO? How are members currently informed of changes as your regulatory agencies draft new or revised existing regulations? (4) MEASURES AFFECTING PRODUCTION AND TRADE (ii) Competition and price controls

Page 42, paragraphs 49-50

: When will Madagascar publicize and implement its regulatory framework for competition? This is an important question of transparency for companies that would like to conduct business with Malagasy businesses. (v) Protection of intellectual property rights What, if any, are the differences in the procedures for foreign and domestic filers of trademark applications? How may a rights holder object to or seek to invalidate a trademark registration?

WT/TPR/M/197/Add.1

Page 6

How does Madagascar prevent the use of false or misleading foreign or domestic geographical indications?

Pages 50 and 51, paragraphs 60 and 66:

According to the Secretariat, Malagasy "...authorities point

out that they are continuing their efforts, already mentioned in the first TPR, to bring the national

legislation into conformity with the provisions of the TRIPS Agreement. . ." What efforts has the government undertaken to bring national legislation into conformity with TRIPS?

Page 50, paragraph 64

: Are there criminal sanctions for copyright infringement similar to those provided for violation of industrial property rights?

Page 51, paragraph 65:

Does Article 29 of the Customs Code (2007) apply equally to copyrighted goods as it does to trademarked goods?

Page 51, paragraph

68: The Secretariat's report states: "Since 2006, it has been possible to carry out

seizures without a prior complaint from the authors or their beneficiaries." How many seizures have occurred and what has been seized as a result?

IV. TRADE POLICIES AND PRACTICES BY SECTOR

(3) MINING, ENERGY, AND WATER (iii) Electricity and Water

Page 67, paragraph 61:

What is the government's plan to restructure JIRAMA to assure investors of a steady power supply? What are the government's regulations and plans concerning Independent

Power Producers?

CANADA

Rapport du Secrétariat WT/TPR/S/197

III. POLITIQUES ET PRATIQUES COMMERCIALES PAR MESURE: (4) Mesures agissant sur la production et le commerce, (v) Protection des droits de propriété intellectuelle, paragraphe 60, page 51:

Le Canada note que selon le Rapport du Secrétariat, "[les autorités malgaches] précisent qu'elles

poursuivent les efforts déjà signalés au moment du premier EPC afin de mettre la législation nationale

en conformité avec les dispositions de l'Accord sur les ADPIC."

1. Le Canada apprécierait que Madagascar fasse le point sur ce processus.

III. POLITIQUES ET PRATIQUES COMMERCIALES PAR MESURE: (4) Mesures agissant sur la production et le commerce, (v) Protection des droits de propriété intellectuelle, paragraphe 63, page 52:

Selon le Rapport du Secrétariat: "[l]a protection par un brevet est accordée pour une durée de 15 ans

... [et une] durée supplémentaire de protection de cinq ans peut être accordée sur demande, à

condition que l'intérêt national le commande et que l'exploitation sur place s'effectue de manière

sérieuse et satisfaisante"

2. Le Canada apprécierait que Madagascar fournisse:

a. de plus amples renseignements sur la façon de déterminer si l'intérêt national justifie

une telle prolongation;

WT/TPR/M/197/Add.1

Page 7

b. des précisions quant à la définition de "sérieuse et satisfaisante";

c. des détails sur des cas particuliers où la protection par un brevet a été prolongée.

III. POLITIQUES ET PRATIQUES COMMERCIALES PAR MESURE: (4) Mesures agissant sur la production et le commerce, (v) Protection des droits de propriété intellectuelle, paragraphe 65, page 52:

Le Rapport du Secrétariat indique que "[l]es principaux produits touchés par la contrefaçon à

Madagascar sont les vêtements, les articles de parfumerie et les supports CD et DVD de films et de

musique."

3. Le Canada apprécierait que Madagascar fournisse de plus amples renseignements sur les activités

de contrefaçon qui ont lieu dans le pays. IV. ANALYSE DE POLITIQUE ET PRATIQUE COMMERCIALES PAR SECTEUR: (5) Services, (ii) Tourisme, paragraphe 86, page 76:

Selon le Rapport du Secrétariat "[e]n principe, les établissements touristiques doivent obtenir une

autorisation et se conformer aux normes établies."

4. Par autorisation, entend-on une licence? Veuillez préciser.

Selon la liste des engagements pris par Madagascar au chapitre des services (GATS/SC/51), "Les

entreprises doivent obtenir l'agrément des autorités concernées et respecter les performances

déterminées et souscrites dans le dossier agréé suivant les critères stipulés, entre autres le nombre

d'emplois nationaux créés et le critère de la valeur ajoutée nationale."

5. Quels sont les autres critères à respecter pour qu'une autorisation soit accordée?

6. Qu'entend-on par "normes établies"?

7. Qui établit ces normes?

IV. ANALYSE DE POLITIQUE ET PRATIQUE COMMERCIALES PAR SECTEUR: (5) Services, (iii) Télécommunications et postes, paragraphe 92, page 77:

Le Canada se réjouit des progrès réalisés récemment par Madagascar quant à la libéralisation du

secteur des télécommunications, ainsi que des efforts que le pays a déployés pour encourager

l'expansion de ce secteur.

8. Madagascar envisage-t-elle de prendre des engagements quant à son système actuel de

télécommunications dans le cadre de l'AGCS? IV. ANALYSE DE POLITIQUE ET PRATIQUE COMMERCIALES PAR SECTEUR: (5) Services, (iii) Télécommunications et postes, paragraphe 93, page 77-78:

Selon le Rapport du Secrétariat "[d]e nombreux opérateurs privés ont obtenu des licences pour

proposer des services de courrier express (par exemple, DHL), en dehors de ceux proposés par La

Poste."

9. Madagascar pourrait-elle fournir au Canada une définition de ce qu'elle entend par services de

courrier express dans ce contexte?

WT/TPR/M/197/Add.1

Page 8

Le rapport sous-entend que ces licences concernent les services de courrier express et qu'elles s'ajoutent à celles délivrées ou proposées par La Poste.

10. Madagascar pourrait-elle indiquer quel type de services de courrier express offre La Poste et si

ces services font concurrence à ceux offerts par les opérateurs privés?

11. S'il est jugé que ces services n'entrent pas en concurrence avec ceux du privé, Madagascar

pourrait-elle clarifier en quoi les services de courrier express offerts par La Poste diffèrent de

ceux fournis par les opérateurs privés?

Autre question:

Loi sur les investissements à Madagascar (Loi Numéro 2007-036 du 14 janvier 2008) Lors des récentes négociations entre le Canada et Madagascar pour un Accord de promotion et de protection des investissements étrangers, le Canada a pris connaissance de la loi sur les investissements à Madagascar (Loi Numéro 2007-036 du 14 janvier 2008) qui stipule que les

transactions en capital et opérations financières sont libres mais doivent être soumises à déclaration

auprès du Ministère chargé des Finances. Le Canada aimerait obtenir des précisions sur la définition

du terme déclaration et aimerait aussi savoir si le Ministre chargé des Finance a un pouvoir d'autorisation des transactions en capital et opérations financières.

12. Le Canada aimerait obtenir des précisions sur la définition du terme déclaration et aimerait aussi

savoir si le Ministre chargé des Finance a un pouvoir d'autorisation des transactions en capital et

opérations financières.

COLOMBIE

1. Dans la section de pêche et aquaculture le rapport du Secrétariat fait mention de l'existence des

accords bilatérales avec l'Union Européenne et le Japon pour la pêche hauturière des ressources

thoniers. Existent-ils d'autres accords bilatéraux?

2. Quels mécanismes existent-ils pour le contrôle des entreprises qui exploitent des zones de pêche de

capture marine?

3. Quelle est la situation actuelle des stocks de crevettes? Existe-t-il surpêche?

JAPAN

The Government Report (WT/TPR/S/197)

III. TRADE POLICIES AND PRACTICES MEASURES

(2) MEASURES DIRECTLY AFFECTING IMPORTS (vi) Standardization, accreditation and certification (vii) Sanitary and phytosanitary (SPS) measures (Question 1: page 37-39, paragraph 29-36) According to the Secretariat report, Madagascar has not made any notification to the WTO concerning

its standardization regime, its accreditation and certification procedures as well as concerning sanitary

and phytosanitary measures. Japan is of the view that this should be improved in light of transparency.

WT/TPR/M/197/Add.1

Page 9

(1) Could the Government of Madagascar provide specific view on this issue?

The Secretariat report states that in Madagascar the only mandatory standards that affect imports are

those on condoms, reflector strips, and soaps and detergents. (2) Please explain specific reason why the Government of Madagascar has not made notification concerning these mandatory standards to the WTO committee despite the fact that these standards affect imports.

HONG KONG, CHINA

Standardization, accreditation and certification

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