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WT/TPR/S/371

24 April 2018(18-2554) Page: 1/88

Trade Policy Review Body

TRADE POLICY REVIEW

REPORT BY THE SECRETARIAT

MAURITANIA

This report, prepared for the third Trade Policy Review of Mauritania, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Mauritania on its trade policies and practices.

Any technical questions arising from this report may be addressed to Mr Jacques Degbelo (tel.:  022 739 5583), Ms Catherine Hennis-Pierre (tel.: 022 739 5640) and Ms Alya Belkhodja (tel.: 022 739 5162).

Document WT/TPR/G/371 contains the policy statement submitted by Mauritania.

Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Mauritania. This report was drafted in French.

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CONTENTSSUMMARY...................................................................................................................61   ECONOMIC ENVIRONMENT.......................................................................................91.1   Main features of the economy....................................................................................................91.2   Recent economic developments...............................................................................................121.3   Trade and investment trends....................................................................................................151.3.1   Merchandise trade.................................................................................................................151.3.2   Trade in services....................................................................................................................171.3.3   Foreign direct investment......................................................................................................172   TRADE AND INVESTMENT REGIMES........................................................................202.1   Overview...................................................................................................................................202.2   Trade policy formulation and objectives...................................................................................212.3   Trade agreements and arrangements......................................................................................232.3.1   World Trade Organization......................................................................................................232.3.2   Regional agreements.............................................................................................................242.3.2.1   Arab Maghreb Union...........................................................................................................242.3.2.2   Economic Community of West African States (ECOWAS)....................................................242.3.2.3   Relations with the European Union.....................................................................................252.3.2.4   Relations with the United States of America.......................................................................252.3.3   Other bilateral trade agreements..........................................................................................262.4   Investment regime....................................................................................................................262.4.1   Business environment............................................................................................................262.4.2   New Investment Code............................................................................................................282.4.3   International investment conventions and agreements.........................................................303   TRADE POLICIES AND PRACTICES BY MEASURE.......................................................313.1   Measures directly affecting imports..........................................................................................313.1.1   Customs procedures, valuation and requirements................................................................313.1.2   Rules of origin........................................................................................................................333.1.3   Customs duties......................................................................................................................343.1.3.1   MFN applied tariff................................................................................................................343.1.3.2   Bindings..............................................................................................................................383.1.3.3   Duty and tax concessions...................................................................................................393.1.3.4   Tariff preferences................................................................................................................413.1.4   Other duties and taxes (ODT) levied exclusively on imports.................................................413.1.5   Internal taxes.........................................................................................................................413.1.5.1   Value added tax (VAT)........................................................................................................413.1.5.2   Minimum flat-rate tax (IMF)................................................................................................423.1.5.3   Consumption taxes (excise duties).....................................................................................423.1.6   Prohibitions, restrictions and import licences........................................................................443.1.7   Anti-dumping, countervailing and safeguard measures.........................................................453.1.8   Other measures affecting imports.........................................................................................45

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3.2   Measures directly affecting exports..........................................................................................453.2.1   Procedures and requirements................................................................................................453.2.2   Taxes, charges and levies......................................................................................................453.2.3   Export prohibitions, licences and controls.............................................................................453.2.4   Export subsidies and promotion.............................................................................................463.2.5   Export financing, insurance and guarantees..........................................................................463.3   Measures relating to production and trade...............................................................................473.3.1   Incentives...............................................................................................................................473.3.2   Standards and other technical requirements.........................................................................473.3.2.1   Standards, technical regulations, testing, certification and accreditation..........................473.3.2.2   Packaging, labelling and marking.......................................................................................483.3.3   Sanitary and phytosanitary measures...................................................................................483.3.4   Competition policy and price control.....................................................................................503.3.4.1   Competition policy..............................................................................................................503.3.4.2   Price regulation...................................................................................................................513.3.5   State trading, State-owned enterprises and privatization......................................................513.3.6   Government procurement......................................................................................................533.3.7   Intellectual property rights.....................................................................................................564   TRADE POLICIES BY SECTOR..................................................................................584.1   Agriculture................................................................................................................................584.1.1   Overview................................................................................................................................584.1.2   Policies by subsector..............................................................................................................614.1.2.1   Rice and wheat, gum arabic................................................................................................614.1.2.2   Animal farming and products..............................................................................................624.1.2.3   Fisheries..............................................................................................................................634.1.2.3.1   Overview..........................................................................................................................634.1.2.3.2   International agreements and conventions.....................................................................644.1.2.3.2.1   Agreement with Senegal...............................................................................................644.1.2.3.2.2   Agreements with the European Union..........................................................................644.1.2.3.2.3   Agreements with China.................................................................................................654.1.2.3.3   National regulations.........................................................................................................664.1.2.3.4   Fish exports......................................................................................................................674.2   Extractive industries and energy..............................................................................................684.2.1   Upstream sector.....................................................................................................................684.2.2   Downstream sector................................................................................................................694.2.2.1   Import, distribution and storage.........................................................................................694.2.2.2   Hydrocarbon taxation and prices........................................................................................704.2.3   Electricity...............................................................................................................................714.2.4   Water.....................................................................................................................................724.3   Other mining products..............................................................................................................724.3.1   Principal products..................................................................................................................73

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4.3.2   Mining regulations..................................................................................................................744.4   Manufacturing...........................................................................................................................754.4.1   Cement and construction materials.......................................................................................764.4.2   Sugar......................................................................................................................................764.4.3   Other agri-food industries......................................................................................................774.4.4   Medicines...............................................................................................................................774.5   Services.....................................................................................................................................774.5.1   Overview................................................................................................................................774.5.2   Transport................................................................................................................................784.5.2.1   Road transport....................................................................................................................784.5.2.2   Maritime transport and port services..................................................................................794.5.2.3   Air transport and airport services.......................................................................................804.5.3   Telecommunications services................................................................................................814.5.4   Postal services.......................................................................................................................824.5.5   Insurance...............................................................................................................................824.5.6   Banking and other financial services.....................................................................................834.5.7   Tourism..................................................................................................................................855   APPENDIX TABLES.................................................................................................87

CHARTS

Chart 1.1 Trends in the Human Development Index, 1990-2015........................................................9Chart 1.2 Exchange rate...................................................................................................................12Chart 1.3 Structure of merchandise trade, 2010 and 2016..............................................................18Chart 1.4 Direction of merchandise trade, 2010 and 2016...............................................................19Chart 2.1 Trade, 2011-2016..............................................................................................................25Chart 2.2 Most problematic factors for doing business in Mauritania...............................................26Chart 3.1 Breakdown of applied MFN tariff rates, 2017....................................................................35Chart 3.2 Applied MFN duty rates, by WTO product group, 2010 and 2017.....................................35Chart 3.3 Escalation of applied MFN rates, by manufacturing industry, 2017..................................38Chart 4.1 Output of main agricultural products................................................................................58Chart 4.2 Food products imported by Mauritania, 2008-2016..........................................................60Chart 4.3 Rice production, 1990-2014..............................................................................................61Chart 4.4 Iron ore: prices and exports, 2010-2016...........................................................................73Chart 4.5 Imports of sugar (HS 1701) by Mauritania, 2011-2016.....................................................76

TABLES

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Table 1.1 Basic economic indicators, 2010-2017..............................................................................10Table 1.2 Balance of payments, 2010-2016......................................................................................15Table 2.1 Trade and investment laws and regulations issued since 2011........................................20Table 2.2 Aid-for-Trade commitments for Mauritania, 2010-2015....................................................23Table 3.1 Structure of MFN duties, 2010 and 2017...........................................................................36Table 3.2 Brief analysis of MFN duties, 2010 and 2017....................................................................37Table 3.3 Number of lines with applied rates higher than the bound rates......................................39Table 3.4 Exemptions from the normal VAT regime.........................................................................41Table 3.5 State revenue, 2011-2017.................................................................................................43Table 3.6 Sanitary requirements at importation and exportation.....................................................50Table 3.7 Some State-owned enterprises with commercial activities, 2016.....................................52Table 3.8 Government procurement legislation, 2018......................................................................53Table 3.9 Government procurement contracts, by award procedure, in numbers and share of the total, 2012-2016.....................................................................................................................56Table 4.1 Fisheries agreements, 2006-2019.....................................................................................64Table 4.2 Export taxes collected by the SMCP..................................................................................67Table 4.3 Tax expenditures relating to the exemption regimes for VAT, customs duty and special taxes, 2013...........................................................................................................................70Table 4.4 Main taxes and charges under the Mining Code...............................................................74Table 4.5 Loans granted by Mauritanian banks, 2010 and 2016......................................................84

BOXES

Box 1.1 Tax expenditures.................................................................................................................13Box 1.2 Foreign exchange regime....................................................................................................15Box 3.1 Concessions granted to exporters........................................................................................46

APPENDIX TABLES

Table A1. 1 Structure of imports, 2010-2016....................................................................................87Table A1. 2 Structure of exports, 2010-2016....................................................................................88Table A1. 3 Origin of imports, 2008-2016.........................................................................................89Table A1. 4 Destination of exports, 2010-2016.................................................................................90

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SUMMARY

1. Since its second Trade Policy Review (TPR) in 2011, Mauritania has experienced five years of steady economic growth at 5-6% per year, driven by the high world prices for its main export products (chiefly iron ore) and massive public investment in the new airport, the extension of the port of Nouakchott, and road infrastructure. Average per capita income continued its steep rise, reaching close to US$1,500 in 2014. However, unequal distribution of the country's wealth has meant that there has been no significant impact on the overall level of poverty among its population of 4.3 million. According to the United Nations, Mauritania remains a least developed country with low human development indices.

2. Mauritania has managed to maintain a certain macroeconomic stability in spite of the fall in world iron ore prices which led to a decrease in export revenue and a corresponding fall in fiscal revenue, aggravating the trade balance and budget deficits. In order to keep the budget deficit under control, Mauritania eliminated most of the subsidies for the consumption of diesel, butane gas and electricity, purged the government payroll and rationalized tax exemptions. As a result, the budget deficit (including grants) fell from its peak at 3.4% of GDP in 2014 to 0.5% of GDP in 2016. Coupled with the budgetary reforms, the tightening of the money supply, among other things by halting the Central Bank's financing of budget deficits, helped to bring inflation down to 1.6-2.5% in 2016-2017, or less than half of the 2011 level.

3. The rise in fish exports was not enough to compensate the decline in mining exports, so that the share of exports in GDP decreased from 51% in 2011 to 35% in 2016. Meanwhile, the share of imports in GDP decreased more moderately, from 53% to 50% during the period, with little change in their structure. The import basket remains dominated by food products (18%) and petroleum products (19%), and Mauritania depends entirely on imports for its fuel supply. Although its share has continued to decline, the EU is still Mauritania's main trading partner, together with China, the United Arab Emirates and Switzerland. While regional trade remains essentially informal and unrecorded, there has recently been a surge in fish exports to the countries of the West  African region, in particular Cote d'Ivoire and Nigeria.

4. During the period covered by its third TPR (2011-2016), Mauritania's participation in WTO activities was limited. As of March 2018, it had yet to ratify the Trade Facilitation Agreement or the Protocol Amending the TRIPS Agreement. It is still behind in submitting a large number of WTO notifications, inter alia with respect to State-trading enterprises, technical barriers to trade, sanitary and phytosanitary measures, and intellectual property rights. WTO technical assistance to Mauritania has been hampered by its failure to pay its contributions.

5. Mauritania's goods import and export mechanism has been modernized and simplified since 2011, and import clearance times have been reduced with the adoption, in January 2016, of the Automated Customs System ASYCUDA WORLD. The mandatory preshipment inspection programme was abolished in 2014. Thanks to these efforts, it was possible to reduce the import and export documentation required, and overall, the procedures were simplified. However, Customs does not have a website of its own on which to post the applicable laws and regulations, for instance the 2017 Customs Code.

6. Procedures for the banking domiciliation of imports and exports were also simplified in 2016. The exchange rate regime is reportedly about to be reformed with the help of the International Monetary Fund. However, the fact that certain companies are exempted from the obligation to repatriate export earnings and therefore have the advantage over the others of holding bank accounts abroad to deposit income earned from their activities in Mauritania, is creating a division within the Mauritanian economy.

7. Owing to the lack of competition in international trade transactions, Mauritania remains an expensive country by regional standards. Hence the need to ensure that the provisions of the Commercial Code (as amended in 2015) on competition are properly implemented, particularly with respect to State enterprises that have a monopoly on exports or imports in several sectors of the economy. In June 2011, Mauritania introduced new legislation to make government procurement more transparent.

8. At the WTO, Mauritania has bound 41% of its tariff lines, namely, all agricultural products and 31% of non-agricultural products, at ad valorem rates ranging from zero to 75%. The simple average of bound rates for all of these products is 20.4%, or 38.5% for agricultural products and 11% for non-agricultural products. A large proportion of agricultural products (85% of all

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agricultural tariff lines) are bound at rates of 25%, 30% and 50%. Higher bound rates (75%) are applied to coffee, tea, maté, spices, cereals, alcoholic and non-alcoholic beverages and tobacco products. On the other hand, the applied MFN tariff, ad valorem on all lines, comprises four rates (zero, 5%, 13% and 20%) with an average rate of 12.1% in 2017 (almost identical to 2010). The highest tariff rate of 20% applies to about 39% of tariff lines, essentially covering end consumer products.

9. For around 11% of Mauritania's tariff lines, the applied rates exceed the WTO bound rates. Moreover, the implementation by Mauritania of the ECOWAS CET, set for January 2019 in the free trade agreement concluded as a first stage towards an economic partnership agreement with the European Union, would lead to increases for approximately 39% of agricultural tariff lines, in particular fruits, vegetables, plants, and animal products.

10. Levied exclusively at importation, so-called consumption taxes (excise duties) were increased for a number of products. The standard VAT rate was also increased to 16%. Foreign goods trucks entering or transiting through Mauritania are taxed as well. Added to these different fees are new import taxes on services. Finally, there was a rise in certain export taxes during the review period. Indeed, export taxes remain heavy and include a 2% minimum flat rate tax, a statistical fee of 1%, and levies on hides, skins and leather; fishery products; and mining products.

11. Mauritania does not apply any anti-dumping, countervailing or safeguard measures. Exporting enterprises benefit from tax and customs concessions. The promotion of fish exports benefitted from the modern services of the laboratory of the National Office for Sanitary Inspection of Fishery and Aquaculture Products, accredited to international requirements since March 2013. On the other hand, the rest of the sanitary legislation for animal products dates back to the 1960s. Alignment with international standards would help to ensure the safety of products and to develop trade in meat and in hides, skins and leather, where Mauritania has definite comparative advantages.

12. At the sectoral level, Mauritania has thus far drawn part of its budgetary revenue (approximately 8% of public revenue) from the sale of fishing licences to foreign companies, particularly in the framework of agreements with the EU and China. Some 100 freezing or fresh fish-processing plants set up in the Nouadhibou free zone and enjoying tax, customs and exchange rate benefits, are supplying an export monopoly whose export taxes increased over the period.

13. The aim of the regulations in force in the mining and hydrocarbons sectors is to improve the benefits for Mauritania of exploiting its resources. Accordingly, Mauritania introduced a minimum free State share in the capital of the companies concerned, and a national preference clause for all contracts relating to construction, supply or provision of services. The end of crude oil exports was expected in 2017 following the depletion of the only oil field in operation. The importation and storage of petroleum products remains a monopoly with administered prices.

14. The National Industrial and Mining Company (SNIM), which is 78% State owned and produces mainly iron ore exported in the form of magnetite concentrate, remains the country's largest industry, and enjoys a whole range of customs and tax concessions. Foreign presence is possible in the mining sector and in particular in the extraction of copper and gold, essentially under mining agreements, often in partnership with the SNIM. In 2017, some 60 operators were working under 64 exploration licences. The shortage of electricity, which is currently thermal and whose generation, transmission and distribution is under a State monopoly, is an obstacle to industrialization and undermines the objective of processing the country's resources, including mineral resources.

15. The numerous plans for agriculture and livestock development have not sufficed to meet the stated priority goal of agricultural policy, namely to increase domestic food production and ensure the population's food security while cutting the import bill. Significant progress has been made, however, in rice production, showing that farmers respond rapidly to the appropriate measures. At the beginning of 2018, the State enterprise SONIMEX, which is responsible for importing essential foods for the low income population, went into liquidation.

16. Since 2011, efforts have been made to improve the country's services infrastructure, and to a lesser extent, to reform the relevant regulations. Extension work on the port of Nouakchott has led to an increase in its capacity. After several attempts, Mauritania once again created a new majority State-owned airline in 2011, which enjoys many trade benefits.

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17. A new telecommunications law has been enacted with a view to enhancing competition and the role of the Regulatory Authority. Meanwhile, the first ACE (Africa Coast to Europe) fibre optic cable linking Mauritania to Europe is now operational. The termination rates for international telephone calls to Mauritania are set at €0.22/minute, of which €0.08 goes to the State. In the financial sector, new texts were introduced to improve the external and internal audit of banks (but not insurance companies), to adopt the Basel II solvency standards, and to combat money laundering.

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1  ECONOMIC ENVIRONMENT

1.1  Main features of the economy

1.1.  Mauritania is located in north-west Africa, covering an area of 1,031,000 km2 (four fifths of which is desert). It has a population of 4.3 million, which is growing vigorously at an annual rate of 3%. Its human development indicators improved very slightly between 2010 and 2016 (Chart 1.1), but its overall ranking was 157th out of 176 countries in 2017, compared to 136th out of 169 in 2010. Life expectancy at birth is 63 years and the adult literacy rate (individuals aged over 15) is 52%. Mauritania thus remains a least developed country (LDC) with low human development indices (HDI), most particularly in terms of education, which hinders its capacity to develop its economy and international trade.

Chart 1.1 Trends in the Human Development Index, 1990-2015

0.38

0.440.49 0.49 0.50 0.51 0.51 0.51

0.590.62

0.65 0.65 0.66 0.66 0.66 0.67

0.18

0.28

0.34 0.350.36 0.37 0.38 0.38

0.51 0.510.53 0.53 0.53 0.54 0.54 0.54

0.360.39

0.47 0.48 0.49 0.49 0.49 0.50

0.10

0.20

0.30

0.40

0.50

0.60

0.70

1990 2000 2010 2011 2012 2013 2014 2015

HDI – MauritaniaHDI – Life expectancyHDI – EducationHDI – IncomeHDI – Low human development

Source: UNDP. Viewed at: http://hdr.undp.org/en/data.

1.2.  The upswing in the world prices of commodities exported by Mauritania, which lasted until 2013, was followed by a reduction in the average poverty rate, from 45% of the population in 2008 to 31% in 2014, measured relative to the official poverty threshold defined for that year of 169,445 old ouguiyas (US$565). Nonetheless, these statistics need to be viewed in the light of Mauritania's highly unequal distributions of income and wealth. A survey of household living standards in 2014 revealed that 16.6% of the population were living below the 2014 extreme poverty line of 126,035 old ouguiyas (US$420) per year, concentrated particularly in rural areas. The modal income level is therefore certainly well below the calculated and published mean.

1.3.  The sharp fall in iron-ore and gold prices after 2013 probably rekindled household poverty, and, indirectly, per capita GDP, which had more than doubled from US$541 per year in 2004 to US$1,200 in 2010, dropped back below this level in 2017 (Table 1.1). The informal sector – which is not directly linked to mining – remains very important, accounting for 75%-80% of total employment and around 37% of GDP.

Table 1.1 Basic economic indicators, 2010-20172010 2011 2012 2013 2014 2015 2016 2017a

MiscellaneousNominal GDP(billions of ouguiyas)

1,197 1,452 1,552 1,696 1,627 1,568 1,673 1,829

Nominal GDP (US$ million) 4,338 5,166 5,231 5,724 5,392 4,841 4,758 5,125Real GDP (annual variation (%))

4.8 4.7 5.8 6.1 5.6 0.8 1.6 3.1

GDP per capita (US$ at current prices)

1,201.8 1,389.7 1,365.8 1,429.2 1,322.1 1,155.5 1,096.3 n.a.

Unemployment rate (%) n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Inflation (CPI, variation (%)) 6.3 5.6 4.9 4.1 3.5 0.5 1.6 2.5

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2010 2011 2012 2013 2014 2015 2016 2017a

Population (million) 3.6 3.7 3.8 3.9 4.1 4.2 4.3 n.a.Life expectancy at birth (years)

62.0 62.3 62.6 62.8 63.1 63.2 n.a. n.a.

Adult literacy rate (individuals over 15 years of age)

n.a. n.a. n.a. n.a. n.a. 52.1 n.a. n.a.

National accounts at current prices (% of GDP)Final consumption 71.2 62.9 67.6 66.2 74.4 81.0 78.0 n.a. Public 19.9 18.1 19.8 19.3 21.4 23.1 21.8 n.a. Private 51.4 44.8 47.8 46.9 53.0 58.0 56.2 n.a.Gross fixed capital formation 36.5 37.7 50.3 55.0 54.3 43.7 38.1 n.a.Variation in inventories 2.6 5.7 8.5 1.0 -2.1 -5.0 1.5 n.a.External balance of goods and services

-10.4 -6.4 -26.4 -22.2 -26.6 -19.7 -17.7 n.a.

Exports 50.7 56.1 53.0 49.8 39.1 33.7 35.3 n.a. Imports 61.2 62.5 79.5 72.0 65.8 53.4 53.0 n.a.Sectoral distribution of GDP at current prices (% of GDP)Agriculture, fishing and forestry

21.7 18.3 19.7 19.7 24.3 27.3 26.5 24.9

Agriculture, forestry and logging

3.1 1.6 3.4 2.8 3.4 3.9 3.6 3.3

Livestock farming 16.6 14.6 14.0 15.1 18.9 21.5 20.7 19.4 Fishing 1.9 2.0 2.3 1.8 2.0 1.9 2.3 2.2Mining & quarrying 27.1 35.1 28.9 29.4 16.7 10.7 13.6 18.7

Extraction of petroleum products

3.5 3.4 2.6 3.4 4.3 2.3 1.9 2.3

Extractive industries, other than petroleum products

23.6 31.8 26.2 26.0 12.4 8.4 11.7 16.3

Extraction of metal ores 22.7 31.0 25.4 25.1 11.1 6.9 10.3 14.9 Iron 16.6 25.7 18.7 20.8 6.4 1.9 6.1 9.9 Gold and copper 6.1 5.3 6.7 4.3 4.7 5.0 4.2 5.0

Other mining and quarrying 0.9 0.7 0.8 0.9 1.3 1.5 1.4 1.4Manufacturing 8.1 7.3 8.1 7.6 9.1 10.2 8.9 8.4

Production and supply of water and electricity

0.5 0.0 -0.2 0.1 0.3 0.3 0.3 0.3

Other manufacturing 7.6 7.3 8.3 7.5 8.9 9.9 8.6 8.1Construction and public works 6.4 6.0 7.0 8.2 10.7 8.8 8.6 8.1Transport and telecommunications

4.8 4.5 5.8 5.2 6.1 6.4 6.1 5.6

Transport 1.6 1.6 2.5 1.7 2.4 2.6 2.4 2.3 Telecommunications 3.1 2.9 3.3 3.4 3.7 3.8 3.7 3.4Commerce 7.7 7.3 8.0 7.6 9.0 9.6 9.5 8.9Public administration 10.7 9.7 10.1 9.7 10.7 12.0 11.7 11.2Other services 15.3 13.6 14.2 14.2 15.5 17.1 17.3 16.3Financial intermediation services

-1.8 -1.7 -1.9 -1.5 -2.1 -2.3 -2.2 -2.1

Public finances (% of GDP)Total revenue and grants (including oil revenue)

21.9 22.3 24.4 30.1 26.1 29.3 27.8 n.a.

Non-oil revenue and grants 20.8 20.7 23.0 28.8 24.6 28.5 27.1 n.a.Tax receipts (excluding oil) 13.0 12.6 16.1 15.9 17.2 17.2 17.2 n.a.Taxes on income and profits

3.6 3.8 5.2 5.1 5.8 6.1 5.7 n.a.

Taxes on goods and services, of which:

6.6 6.9 8.6 8.0 8.5 8.3 8.8 n.a.

Domestic VAT 1.1 1.2 2.9 2.6 2.4 2.8 2.6 n.a.VAT on imports 3.1 3.2 3.6 3.5 3.9 3.8 3.8 n.a.Taxes on international trade, of which:

1.5 1.5 1.9 1.9 2.3 2.5 2.8 n.a.

Imports 1.2 1.3 1.5 1.6 2.0 2.1 2.5 n.a. Other fiscal revenue 1.3 0.5 0.3 0.9 0.4 0.6 0.5 n.a.

Non-fiscal revenue (excluding oil), of which:

6.9 7.6 6.4 12.3 7.2 9.5 8.1 n.a.

Oil revenue (net) 1.1 1.6 1.4 1.2 1.5 0.8 0.7 n.a.Grants 0.8 0.5 0.5 0.7 0.1 1.8 1.9 n.a.

Expenditures and net loans 22.5 22.3 27.7 25.8 29.5 32.7 28.3 n.a. Current expenditures, of which:

16.8 16.5 18.9 15.8 17.7 18.5 16.6 n.a.

Wages and salaries 7.0 6.1 6.1 6.1 6.8 7.6 7.4 n.a.Capital expenditure and net loans

5.4 5.9 8.8 10.0 11.8 14.0 11.7 n.a.

Restructuring and net lending

0.3 0.0 0.0 0.0 0.0 0.2 0.0 n.a.

Non-oil balance, including grants (deficit -)

-1.7 -1.6 -4.7 3.1 -4.9 -4.3 -1.2 -0.2

Overall balance; including grants (deficit -)

-0.6 0.0 -3.3 4.3 -3.4 -3.4 -0.5 n.a.

Total public debt (% of GDP) n.a. n.a. n.a. 70.6 80.4 98.4 99.3 n.a.External sectorOuguiyas per US$ (annual average)

275 280 296 300 302 324 352 357

Real effective exchange rate (variation %; - = depreciation)

n.a. -5.1 1.5 1.0 3.3 5.3 -5.9 -2.2

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2010 2011 2012 2013 2014 2015 2016 2017a

Nominal effective exchange rate(variation %; - = depreciation)

n.a. -5.1 -0.9 -0.9 1.5 5.9 -5.9 -2.7

Gross official reserves excluding oil account (end of period, US$ million)

287.8 504.5 961.9 996.4 639.1 822.8 824.5 n.a.

(months of imports of goods and services)

2.5 3.7 6.2 5.9 5.0 5.6 5.4 n.a.

FDI inflows (US$ million) 130.5 588.7 1.388.6 1.125.7 501.0 501.7 271.1 n.a. % of GDP 3.0 11.4 26.5 20.0 9.3 10.4 5.8 n.a.Inward FDI stock (US$ million) 2,372.2 2,961.0 4,349.6 5,475.2 5,976.3 6.478.4 6,750.0 n.a. % of GDP 54.7 57.3 83.1 97.1 111.2 134.1 143.2 n.a.Total external debt (US$ million)

n.a. n.a. n.a. 3,770.1 3,856.0 4,291.8 4,407.6 n.a.

Total foreign debt (% of GDP) n.a. n.a. n.a. 66 72 89 92 n.a.

n.a. Not available.a Provisional.Source: Statistical information provided by the authorities; Central Bank of Mauritania, Database, viewed at:

http://www.bcm.mr/index.php; IMF Country Report No. 17/324, October 2017; IMF, IMF DATA, viewed at: http://elibrary-data.imf.org; UNCTADstat, viewed at: http://unctadstat.unctad.org/EN/Index.html; and United Nations Development Programme, Human Development Data (1990-2015).

1.4.  Although mining remains the bedrock of the economy, the sector's GDP share fell from 27% to 19% between 2010 and 2017 following the fall in prices and depletion of the oil field. Another important sector is livestock farming, which accounts for nearly a fifth of GDP, provides income for about one million people, plays a key role in food security and enables the poorest people in particular to accumulate capital.1 Fishing, the products of which are mainly exported, like those of the mining sector (Section 4), became a major driver of the economy in 2010-2016, while the tertiary sector is mainly based on commerce, telecommunications, and public administration.

1.5.  The national currency is the ouguiya, and the issuing institution is the Central Bank of Mauritania (BCM).2 In January 2018, the BCM redenominated the currency at a conversion rate of 1:10 (Chart 1.2).3 According to the International Monetary Fund (IMF), Mauritania also changed its exchange rate regime in September 2014, from a "stabilized arrangement" to a "crawl-like arrangement" (see below).4

1 Online information viewed at: http://www.banquemondiale.org/fr/country/mauritania/overview.2 Mauritania accepted Article VIII of the IMF's Articles of Agreement on 19 July 1999. IMF (2008).3 Banknotes in the denominations 5,000, 2,000, 1,000 and 500 old ouguiyas are now worth 500, 200,

100 and 50 new ouguiyas, respectively. Old and new ouguiya banknotes will coexist for a period of six months, until June 2018. Central Bank of Mauritania (2018), Une ouguiya 10 fois plus forte. Viewed at: http://www.bcm.mr/IMG/pdf/brochure_nvlle_ouguiya_ar_fr.pdf.

4 International Monetary Fund (IMF) (2017), Annual Report on Exchange Arrangements and Exchange Restrictions 2016. Viewed at: https://www.imf.org/en/Publications/Annual-Report-on-Exchange-Arrangements-and-Exchange-Restrictions/Issues/2017/01/25/Annual-Report-on-Exchange-Arrangements-and-Exchange-Restrictions-2016-43741.

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Chart 1.2 Exchange rate, 2010-2017

275.89 (2010)

352.94 (2016)

354.35 (Dec. 2017)

35.24 (J an. 2018)

365.85 (2010) 389.93 (2016)

419.40 (Dec. 2017)

42.97 (J an. 2018)

0

50

100

150

200

250

300

350

400

450

01-1004-1007-1010-1001-1104-1107-1110-1101-1204-1207-1210-1201-1304-1307-1310-1301-1404-1407-1410-1401-1504-1507-1510-1501-1604-1607-1610-1601-1704-1707-1710-17

03-18

UM/US$ UM/€

Old ouguiya Newouguiya

Note: Annual average rates for 2010 and 2016. Estimate for March 2018.Source: IMF DATA, viewed at: http://elibrary-data.imf.org; and Central Bank of Mauritania.

1.6.  Another key feature of the Mauritanian economy is its large US$4.4 billion external public debt, which had grown to 87.8% of GDP by 2016 partly because the latter shrank during the period (Table 1.1). Debt service, at more than US$150 million per year, represents a growing foreign-currency expense for the State. In addition, its "passive" debt with Kuwait, contracted in the 1970s, amounted to US$900 million in 2016 and is said to be under renegotiation.5 Mauritania's debt has not been evaluated by the major rating agencies.

1.2  Recent economic developments

1.1.  Although the Mauritanian economy grew strongly in 2010-2014, thanks to the high prices received for its mineral exports, per capita income rose less than proportionately (Table 1.1) and actually fell in nominal terms in 2015 and 2016. During the rapid-growth years, exports of goods and services fell from 51% to 39% of GDP, before slipping further to 35% of GDP in 2016 (Table 1.1). Over the same period, the import share of GDP rose from 61% to 72% before dropping back to 53%. Since 2011-2012, public investment has more than doubled, contributing strongly to growth until 2014. The results include a new airport, a port expansion, and the creation of 4,000 km of asphalted roads, plus a programme of dirt roads.

1.2.  The collapse of iron-ore prices in 2014 increased the budget deficit in that year and the next (Table 1.1), to which the authorities responded rapidly with fiscal rebalancing measures in 2016, which were maintained in 2017. In particular, the formula for automatically adjusting the price of diesel to world prices, adopted in 2012, was not implemented in 2015 and 2016 as the world price plummeted. Subsidies to the State-owned electricity utility were discontinued in 2015 as the audit of water and electricity bills was intensified to eliminate estimated or erroneous billing. In 2017, the butane gas subsidy bill was reduced by 2 billion ouguiyas without any effect on prices.

1.3.  In terms of personnel expenses, the campaign to purge the government payroll, which began in 2016, made it possible to eliminate improper or unjustified payments. The Government has also maintained its freeze on public-sector pay and ongoing control of staffing. The overall deficit was almost eliminated in 2017 (Table 1.1).

1.4.  The authorities have launched efforts to reform fiscal policy and strengthen the tax administration. They are also working with the IMF to modernize corporate income tax with a view to increasing revenue and formalizing the economy. With assistance from the World Bank, they have also started to create a register of tax exemptions (or tax expenditures) and have undertaken

5 IMF (2017), Islamic Republic of Mauritania: 2017 Article IV Consultation. Viewed at: http://www.imf.org/~/media/Files/Publications/CR/2017/French/cr17324f.ashx.

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to publish them and eliminate those that are ineffective and distorting. The ratio of total tax expenditures to total tax receipts was 58% in 2013 (Box 1.1).6

Box 1.1 Tax expenditures

A study carried out in collaboration with the various relevant divisions of the Ministry of Finance and funded by German cooperation through its Good Governance Programme, identified 224 tax expenditure measures in 2013. These took the form of total or partial, temporary or definitive exemption, reductions, flat-rate taxation, allowances, deductions or liquidity facilities. These measures are found both in the ordinary-law regime (the General Tax Code and the Customs Code) and in special exemption regimes. They mainly concern indirect taxes (117 measures out of a total of 224), 42 of which relate to customs duties and 28 to value added tax (VAT).

Under the exemption regimes, most of the measures derive from the mining and hydrocarbons codes or the Free Zone Law, or else from special schemes to support specific segments of the private sector (urban transport) or public sector (agriculture, energy, health, education and fishing). The measures identified mainly benefit businesses (52%). Tax expenditures arising from ordinary-law measures and exemption regimes have been valued at 136 billion old ouguiyas for 2013 (about US$450 million), half of which relates to VAT, customs duties and other ordinary taxes.

The study recommended rationalizing tax expenditures and monitoring them more closely. Its proposals included an evaluation of the fiscal and customs impacts of the mining and petroleum codes and ways to make them as compatible as possible with tax revenue mobilization policies; and application of the regulations governing VAT refunds by ensuring fulfilment of the following requirements: (i) ensure VAT neutrality for businesses; (ii) limit the scope of exemptions, while leaving the management and monitoring of tax expenditures exclusively to the tax administration bodies (Directorate-General of Taxes (DGI) and Directorate-General of Customs (DGD)); and (iii) improve the synergy between these administrations and the respective technical departments (mines, hydrocarbons, fisheries).

A Tax Expenditure Commission has been created in the fisheries, mining and hydrocarbons sectors. IMF technical assistance is being provided for a report on tax expenditures in these areas, to be included as an annex to each budget law. Although it appears that the annual tax expenditure reports were appended to the 2014, 2015 and 2016 budget laws, it was impossible to obtain copies.

Source: WTO Secretariat, on the basis of information contained in the Good Governance Programme, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH (German agency for international cooperation), March 2015.

1.5.  On the revenue side, the Government has continued to gradually introduce a tax registration number (NIF) to improve tax collection among taxpayers, but the tax system as a whole remains cumbersome, complex and likely to discourage taxpayers and investors (Section 2.4.1).7 For example, repatriated dividends and profits are subject to a tax surcharge of 10%, and the top rate of personal income tax is 40%. Moreover, the 2013 Finance Law introduced a new 15% withholding tax on income from the sale of services in Mauritania by foreign companies and non-resident individuals.

1.6.  The institutional framework governing monetary policy has not changed much since the January 2007 reform and the passing of new legislation regulating the charter of the Central Bank of Mauritania (BCM).8 Maintaining price stability remains the BCM's main mission, which was successfully pursued during the review period, as the inflation rate dropped to 1.6% in 2016. In the following year, however, the rate climbed back to 2.5% owing to rising food prices.

1.7.  Mauritania's main banking law also dates from 2007.9 Under the BCM Charter (Article 73 of Law No. 2007-007 on the BCM Charter), central bank assistance to the State must not exceed 5% of the previous year's public revenue. In 2013, an agreement was signed to consolidate the BCM's claims on the State, authorizing the latter to take over credits owed to the central bank by certain public entities benefiting from a State guarantee, in particular the National Import-Export Company

6 Online information viewed at: https://www.giz.de/en/downloads/giz2013-fr-potrait-des-depenses-fiscales-en-Mauritanie.pdf .

7 For overviews of mining taxation, see: https://eiti.org/fr/implementing_country/36#tax-and-legal-framework.

8 Ordinance No. 004/07 of 12 January 2007 on the BCM Charter. For a review of monetary policy in Mauritania see: http://www.bcm.mr/IMG/pdf/la_politique_monetaire_en_mauritanie.pdf.

9 Ordinance No. 020/07 of 13 March 2007 on the regulations governing credit institutions. Viewed at: http://www.bcm.mr/IMG/pdf/ordonnance_no_2007_020_portant_reglementation_des_etablissements_de_credit_version_fr.pdf.

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(SONIMEX), which went into liquidation in 2018) and two financial institutions (PROCAPEC and Crédit Agricole). These receivables amount to 153 billion old ouguiyas (US$437 million).10

1.8.  Unsterilized interventions on the foreign exchange market and the issuance or retirement of treasury bills are the main tools of monetary policy. The BCM has held its key interest rate at 9% since 2010, and has kept the required reserves ratio unchanged at 7% since 2007. The maximum commercial bank lending rate ("taux effectif global") also remained unchanged at 17% in 2010-2016. The weighted average interest rate on bank credit dropped from 15.1% in 2012 to 11.1% in 2013, before stabilizing around 12% in 2015-2017.

1.9.  Having been introduced in January 2007, the "stabilization arrangement" for the ouguiya-dollar exchange rate lasted until September 2014, when depreciation against the dollar gathered pace (Chart 1.2).11 Considering the 2010-2017 period as a whole, the domestic currency depreciated at an average rate of about 4% per year. The official foreign exchange market is open only to primary banks acting on their own account or on their clients' behalf, and to the BCM which is the main supplier of foreign exchange; transactions relate only to amounts denominated in US dollars and euros. The interbank market remains embryonic.

1.10.  The BCM uses a daily (Monday to Thursday) auction mechanism to recycle a portion of foreign exchange export earnings12, in particular those earned by the two main State-owned firms, mainly from the extraction of iron ore and the fishing industry (Section 4). As the central bank "fixes" the exchange rate at the time of the auction, it thus influences both the exchange rate and the quantity of foreign exchange placed on the market. Alongside this, a system of over-the-counter direct sales to private or public operators, generally at the Government's behest13, reportedly operated until mid-2016. According to the BCM, however, these direct sales have been discontinued. According to the IMF, lack of foreign exchange – especially for imports – is a chronic problem, and the BCM had to intervene massively on the foreign exchange market in 2016 and 2017 to mitigate the shortage.

1.11.  Mauritania's foreign exchange regulations, which were previously problematic for international operators, were simplified in 2016 (Box 1.2).14 Firms and individuals can open foreign currency accounts with local banks; but foreign-currency use is restricted.15 Fishing companies, or firms with a hydrocarbon exploration-production contract, and their foreign suppliers, may hold bank accounts abroad to deposit income earned from their activities in Mauritania, including the sale of hydrocarbons, and to make payments to their foreign-based suppliers.16 Nonetheless, this situation is likely to create a division within the Mauritanian economy between firms that enjoy assisted access to foreign banks and full control over their export earnings, and those that do not.

10 Central Bank of Mauritania (2017), Rapport d'audit des états financiers arrêtés au 31 décembre 2016. Viewed at: http://www.bcm.mr/IMG/pdf/bcm_-_rapport_d_audit_dec_-_2016.pdf.

11 IMF (2016), Annual Report on Exchange Arrangements and Exchange Restrictions 2016. Viewed at: https://www.imf.org. Mauritania accepted its obligations under Sections 2, 3 and 4 of Article VIII of the IMF Articles of Agreement on 19 July 1999.

12 BCM (2007), Manuel de procédures du marché des changes. Viewed at: http://www.bcm.mr/IMG/pdf/instruction_03__gr__2007_portant_manuel_de_procedure_du_marche_des_changes.pdf.

13 BCM (2007), Manuel de procédures du marché des changes; and IMF (2013), Islamic Republic of Mauritania: Sixth Review Under the Three Year Extended Credit Facility Arrangement and Request of Nonobservance of Performance Criterion. Viewed at: https://www.imf.org.

14 Instruction No. 2/GR/2013 of 14 November 2013. Viewed at: http://www.bcm.mr/IMG/pdf/instruction_002_gr_2013.pdf.

15 Instruction No. 04/GR/2005 of May 2005.16 2010 Hydrocarbons Code (Article 99).

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Box 1.2 Foreign exchange regime

Under the Mauritanian foreign exchange regulations issued by the BCM pursuant to Law No. 2004-042 of 25 July 2004 establishing the regime applicable to financial relations with foreign countries, trade between Mauritania and a third country, irrespective of amount, must be domiciled with an "authorized Mauritanian intermediary" (IAM), unless subject to a waiver (for example hydrocarbons). The authorities are planning to computerize manual procedures.

Importers are required to submit invoices issued by their foreign suppliers, or commercial contracts with them, to an IAM. This step, which is still paper-based, has been simplified by Circular No. 2/GR/2016, which abolished the requirements to channel each transaction through the BCM and to certify documents. Similarly, the domiciliation file has been eliminated; and a summary domiciliation table is now produced by the IAMs and sent to the central bank at the end of each week.

The banking domiciliation of exports and re-exports follows the procedures that were simplified in 2016. Export earnings must be repatriated (unless benefiting from a waiver), but they do not have to be converted into ouguiyas. Mining and petroleum companies may be exempted from the repatriation requirement, under an agreement signed with the Government. Similarly, fishing companies exporting via the SMCP monopoly may freely dispose of all their foreign exchange (direct sales in ouguiyas, sale on the foreign exchange market or transfer abroad). Legal and natural persons may hold a foreign currency account.

Capital outflows from Mauritania require presentation of relevant supporting documents. Current payments to third countries are allowed; the intermediary concerned is required to ask for supporting documents.

Investments made in a third country by a Mauritanian resident require prior authorization by the BCM. When liquidated, the proceeds must be repatriated to Mauritania, unless there is prior authorization for reinvestment. The purchase of foreign securities also requires authorization.

Source: WTO Secretariat, on the basis of Instructions No. 1/GR/2016 and No. 2/GR/2016, concerning the statistical recording of merchandise import and export data by Mauritanian licensed intermediaries, respectively; Instruction No. 003/GR/2012 defining the procedures for the repatriation of income obtained from fish exports by the Mauritanian Fish Marketing Company (SMCP); and information provided by the Mauritanian authorities.

1.3  Trade and investment trends

1.3.1  Merchandise trade

1.1.  Mauritania's current account deficit increased sharply to 15% of GDP in 2016 and 2017, as the prices of its exports fell on international markets (Table 1.2). Trade surpluses in 2010 and 2011 gave way to a deficit in 2012, which then worsened mainly because of the fall in world iron and gold prices.

1.2.  The services trade deficit, which had risen significantly in 2012 and 2013, fell back to US$400 million in 2015. The negative balance in factor income also grew during the review period, partly because of lower income from fishing rights; the factor income deficit also tends to grow in proportion to the profits and wages repatriated by foreign mining companies. The only surplus category was current transfers, consisting mainly of development assistance and remittances from Mauritanian nationals living abroad.

Table 1.2 Balance of payments, 2010-2016(US$ million)

2010 2011 2012 2013 2014 2015 2016Current account balance -319 -274.8 -1,226.1 -1,268.9 -1,470.7 -955.7 -707 Trade balance 138 281.2 -487.9 -392.9 -710.9 -559.4 -499 Exports 2,074 2,748.7 2,641 2,651.5 1,935.4 1,388.6 1,401 Iron ore 997 1,470.6 1,130.7 1,358.1 730.7 340 418 Oil 297 220.7 271.2 216.9 194.8 73.1 87 Copper 187 234.1 238 216.3 165.8 195.1 138 Gold 310 404.2 445.2 471.8 407.4 333.6 289 Fisheries 276 408 479 329.7 377.5 388.9 421 Other 7 11.2 76.7 58.8 59.1 57.8 47 Imports, f.o.b. -1,935 -2,467.4 -3,128.8 -3,044.3 -2,646.3 -1,948 -1,900 Food products -277 -290.8 -381.5 -377 -370.5 -395.3 -334 Petroleum products, of which: -365 -524.9 -656.5 -633.8 -595.9 -337.9 -355 National Industrial and Mining Company (SNIM)

-67 -86.7 -110.4 -109.5 -102 -55 -37

Mauritanian Copper Mines (MCM) -33 -43.5 -49.7 -46.1 -44.4 -28 -21

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2010 2011 2012 2013 2014 2015 2016 Tasiast gold mine (Tasiast) -27 -64.6 -111.9 -101.1 -4.1 -3.4 0 Extractive industries, of which: -853 -1,202.8 -1,625.2 -1,579.8 -1,018.8 -745.4 -466 National Industrial and Mining Company (SNIM)

-351 -361.6 -483.2 -489.3 -420.7 -199.4 -157

Mauritanian Copper Mines (MCM) -111 -155.1 -160.4 -139.5 -186.7 -84.3 -80 Tasiast gold mine (Tasiast) -184 -571.2 -966.6 -590.3 -130.9 -187.1 -166 Oil exploration -207 -114.9 -15 -360.7 -280.5 -274.7 -64 Other imports -441 -449.3 -465.5 -453.7 -661.1 -469.4 -744 Services (net), of which: -551 -551.8 -858.3 -813.7 -620.7 -394.6 -336  Fishing licences n.a. 58.2 11.7 27.7 110.3 66.5 76 Income (net), of which: -69 -155.6 -190.6 -203.2 -252.8 -180.1 -117  Fishing rights n.a. 104.3 89 91.2 0 60.3 59  Current transfers (net) 162 151.3 310.7 140.8 113.7 178.4 245  Private transfers (net) 59 31.4 42.7 56.9 49.8 77.3 75  Official transfers 103 120 268 83.9 63.9 101 170Capital and financial account 551 499.2 1,823.3 1,569.6 1,222.6 1,253.4 492  Capital account 209 0 40.7 4.8 16 31.2 8  Financial account 342 499.2 1,782.5 1,564.8 1,206.6 1,222.2 483  Direct investment (net), of which: 128 588.8 1,386.1 1126 501.9 501.7 271  Petroleum industries (net) 83 76.8 157.4 410.2 265.2 310.3 71  Official medium- and long-term loans 174 243.1 505.8 216 123.8 407.6 144  Disbursements 230 306.8 606 316.1 269.6 570.4 324  Principal due -56 -63.7 -100.2 -100.1 -145.8 -162.8 -180  Other private capital transactions 39 -332.6 -109.3 222.8 581 312.9 77Errors and omissions 4 28.6 -108.5 -285 -61.3 -138.3 135Overall balance 236 253.1 488.7 15.7 -309.4 159.4 -80Indicators (%)Current account balance/GDP -7.4 -5.3 -23.4 -22.5 -27.4 -19.8 -15.0Merchandise trade balance/GDP 3.2 5.4 -9.3 -7.0 -13.2 -11.6 -10.6

n.a. Not available.Source: Central Bank of Mauritania, database. Viewed at: http://www.bcm.mr/index.php.

1.3.  The capital and financial account remained strongly positive, reflecting direct investments that exceeded US$500 million per year throughout 2012-2016, especially in the gas, gold, copper and iron sectors. Another factor has been the steady flow of disbursements in respect of official loans and other private capital transactions.

1.4.  The structure of Mauritanian exports is still heavily biased towards commodities (mainly fishery products, whose share of total exports grew strongly during the period (Chart 1.3)) and mining products (copper, iron, gold). A new development was the end of crude oil exports following the depletion of the only oilfield in operation. A 38% drop in the terms of trade in 2014-2015 undermined export earnings from the extractive sector and diminished its share of total exports. In value terms, mineral exports increased from US$318 million in 2003 to US$1.65 billion in 2013, before dropping back to US$682 million in 2016 (Table A1.2). In the latter year, the extractive sector nonetheless generated 42% of total merchandise exports. Unofficial sources confirm that livestock is being exported to neighbouring countries, although this is not recorded in official statistics.

1.5.  The import basket remains dominated by food products (sugar, wheat, flour and rice) and fuels (Chart 1.3 and Table A1.1). The fall in oil prices has reduced the share of fuels in total imports (about 20% in 2008).

1.6.  Although China, followed by the European Union (EU), remained the leading destinations for Mauritania's exports (Table A1.4 and Chart 1.4), African countries, such as Côte d'Ivoire and Nigeria, have greatly increased their share of its fish exports. Switzerland's large share is explained by gold exports. On the import side, although the EU's share has declined, it remains the leading import source (particularly through France), followed by the United States (whose share increased following Mauritania's purchase of an aircraft and mining machinery) and then by the United Arab Emirates and China. Nonetheless, press reports indicate that the bulk of Mauritania's food imports come from Morocco and Senegal, mostly on an informal basis and therefore under-recorded. The African countries' official share of Mauritania's total imports increased from 7% to 9% in the review period (Table A1.3 and Chart 1.4).

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1.3.2  Trade in services

1.1.  Although Mauritania remains a net importer of services, its trade deficit in this category trended down during the period (Table 1.2). According to the BCM, a large proportion of services imports is destined for the mining and oil sectors; spending on services in these sectors increases when new mines are established or new drilling is undertaken, and it decreases once the respective production plants have been fully installed. Freight is also a major component of Mauritania's services imports, reflecting the cost of transporting imported goods, including the corresponding fuel and insurance costs. On the export side, following a sharp decline in tourism earnings, fishing licences now generate the most revenue, along with the transport services provided by Mauritania Airlines International.

1.3.3  Foreign direct investment

1.1.  Statistics on foreign direct investment (FDI) and its distribution, whether by sector of activity in Mauritania or by country of origin, are scarce. Inward FDI flows exceeded 9% of GDP throughout the 2011-2015 period, sometimes substantially (Table 1.1). The vast majority was absorbed by two mining ventures, the Tasiast gold mine and MCM (Section 4.3), and by the oil and gas sector (Section 4.2).

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Chart 1.3 Structure of merchandise trade, 2010 and 2016

2010 2016

(a) Exports (f.o.b.)

Other15.8%

Molluscs and aquatic

invertebrates15.2%

Copper ores and concentrates

12.2%

Non-monetary gold

14.0%

Agglomerated iron ores30.1%

Frozen fish12.8%

Fuels0.0%

Total: US$1.8 billion Total: US$1.6 billion

(b) I mports (c.i.f.)

Agriculture19.9%

Manufactures52.8%

Non-electrical machinery

19.0%

Other semi-finished products

6.6%

Other0.8%

Chemicals4.4%

Other manufactures3.5%

Iron and steel3.2%

Electrical machinery

2.7%Transport equipment

13.4%

Combustibles26.5%

Agriculture18.5%

Manufactures61.7%

Non-electrical machinery

13.8%

Other semi-finished products

6.3%

Other0.3%

Chemicals5.5%

Other manufactures

6.3%

Iron and steel3.0%

Electrical machinery

3.4%

Transport equipment23.4%

Fuels19.5%

Total: US$1.7 billion Total: US$2.2 billion

Other25.6%

Molluscs and aquatic

invertebrates5.9%

Copper ores and concentrates

6.7%

Non-monetary gold

13.3%

Agglomerated iron ores27.4%

Frozen fish6.6%

Fuels14.4%

Source: WTO Secretariat calculations based on data from the UNSD Comtrade database (SITC Rev.3).

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Chart 1.4 Direction of merchandise trade, 2010 and 2016

2010 2016

(a) Exports (f.o.b.)

CIS 5.0%

Other5.2%

EU (28)21.4%

J apan 7.6%

Switzerland13.5%

China36.9%

Africa 10.4%

Total: US$1.8 billion Total: US$1.6 billion

(b) I mports (c.i.f.)

EU (28)46.5%

China 6.3%

United States3.7%

Africa7.0%

United Arab Emirates12.1%

Other24.3%

EU (28)35.3%

China 8.9%

United States13.4%

Africa9.2%

United Arab Emirates11.9%

Other21.3%

Total: US$1.7 billion Total: US$2.2 billion

CIS 2.0%

Other5.8%

EU (28)31.3%

J apan 6.8%

Switzerland13.1%

China 39.4%

Africa 1.7%

Source: WTO Secretariat calculations based on data from the UNSD Comtrade database.

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2  TRADE AND INVESTMENT REGIMES

2.1  Overview

2.1.  After going through several major political crises, including two coups d'état between 2002 and 2009, Mauritania has been enjoying relative political stability since 2011. A constitutional change in August 2017 included a reform of the High Court of Justice, abolition of the post of Ombudsman, abolition of the Higher Islamic Council established in 2012, and replacement of the Senate with elected regional councils. The Constitution as amended in 2017 does not appear to be available on an official website.

2.2.  The political system consists in an executive power, vested in the President of the Republic and the Government appointed by him; a legislative power, exercised by the Parliament, which is now unicameral; a judicial power; and advisory institutions such as the Economic and Social Council.0 The Constitution establishes the primacy of the Executive, which formulates and conducts the country's foreign policy. The President appoints the Prime Minister and the other members of the Government. He also promulgates laws, signs and ratifies treaties, and holds a statutory power that may be delegated to the Prime Minister. The latter defines government policy under the authority of the Head of State. The second term of the current President, elected for a five-year term renewable once only, will end in 2019.

2.3.  Parliament, the National Assembly, is composed of some 150 deputies elected by direct universal suffrage for a term of five years. The most recent parliamentary elections were held in 2013, with the next to be held in 2018. Laws are initiated by the Government and by deputies, the latter having the right to amend proposed texts. Draft legislation must be passed by the Assembly. In order to implement its programme, the Government may request for authorization to adopt, by ordinance and for a limited period of time, measures that normally require legislation. Such measures enter into effect as of their publication, but become void if the draft law for their ratification is not tabled in Parliament before the date set by the enabling law.

2.4.  From a hierarchical point of view, in domestic legislation the Constitution is followed by laws, ordinances, decrees, orders and circulars. All laws and regulations are, in principle, published in the Official Journal, although in practice it appears that some secondary legislation is not. The Official Journal has not yet appeared online in 2018. Under Article 78 of the Constitution, trade treaties and treaties or agreements concerning international organizations (including the Agreement Establishing the WTO); treaties or agreements involving government finances; and treaties modifying provisions of a legislative nature all require ratification through a law in order to take effect in Mauritania. The Agreement Establishing the WTO was approved and ratified by Law No. 075/95 of 13 January 1995; the new WTO Agreement on Trade Facilitation was still pending ratification by Mauritania in March 2018.

2.5.  Ratified treaties and agreements take precedence over domestic laws once they have been published, provided that they are implemented by the other party. As is the case in all other domains, trade policy legislation is introduced by law, by decree or by order of the Ministry concerned. Few new texts on Mauritania's foreign trade have been adopted since the previous review of its trade policies in 2011 (Table 2.1).

Table 2.3 Trade and investment laws and regulations issued since 2011 Legislation (section of the report) SubjectSection 2Law No. 014–2016 of 15 April 2016 (2.1) Fight against corruptionAssociation Agreement with ECOWAS (2.3.2) Association agreement between Mauritania and the

ECOWAS Member StatesLaw No. 2012-052 of 31 July 2012; Decree No. 2012-282 of 18 December 2012 Order establishing the single window (2.4)

Investment CodeSingle window

Investment protection agreements (2.4) Unified Agreement for the Investment of Arab Capital in Arab Countries, 2013Agreement between Mauritania and the United Arab Emirates, 2015Agreement with Turkey, 2018

Section 3Customs Code (3.1) Law No. 2017-035 of 21 December 2017 containing the Customs

Code

0 Mauritania is divided into constituencies at two different levels: 13 wilayas (regions), which in turn are divided into smaller administrative and territorial units: mouqatâa (departments), which are 53 in number.

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Legislation (section of the report) SubjectPublic-private partnership (3.3.5) Law No. 2017-006 of 1 February 2017Law No. 2010-004 of 22 July 2010 (3.3.6) Law No. 2010-044 of 22 July 2010 containing the Government

Procurement CodeSection 4Fisheries (4.1.2) Law No. 2015-017 containing the Marine Fisheries CodeMerchant marine (4.5.1) Merchant Marine CodeCivil aviation (4.5.1.3) Law No. 2011-2020 containing the Civil Aviation Code

Source: WTO Secretariat, on the basis of information provided by the Mauritanian authorities.

2.6.  The Court of Audit is the higher institution responsible for the oversight of public finances. In the interests of transparency, the Government should submit to Parliament the annual budget execution law, drawn up by the Treasury, based on verification by the Court of Audit of monies spent. The new budget law cannot be voted before Parliament has approved the budget execution law, i.e. verification of the previous year's budget. The budget execution law was supposed to be published systematically as from the 2007 budget year. However, only the annual report for 2006 is available on the Court of Audit's website.0 The fight against mismanagement was the subject of two new laws, in 2015 and 2016.0

2.7.  The structure of Mauritania's judicial system has remained unchanged since 2011. Mauritania not being a member of OHADA, its judicial system differs substantially from that of the member countries of ECOWAS, with which Mauritania has recently signed an association agreement (Section 2.3). The courts of first instance include commercial chambers; the mouqatâa (departmental) courts specialize in commercial cases where the amount involved does not exceed 300,000 old ouguiyas (US$257). There are two commercial courts. The appeal courts constitute the second level.0 Mauritania's highest judicial authority, the Supreme Court, comprises four chambers with special jurisdiction: administrative, civil, social and penal. According to a 2017 report, corruption remains endemic, undermining the country's development.0 It appears to be encouraged by a widespread sense of impunity, which taints the business climate. In 2016, Transparency International ranked Mauritania 142nd out of 176 countries in terms of corruption perception, with no significant change since 2010.0 Its ranking in 2006 was 84th out of 163.

2.2  Trade policy formulation and objectives

2.1.  Primary responsibility for framing and implementing trade policy lies with the Ministry responsible for trade. This Ministry appears to be largely bereft of resources, and suffers from poor communications not only with other ministries, but also with the development partners. Thus, Mauritania is well behind schedule on most trade facilitation projects (Section 2.4), particularly where inter-State road transportation of goods is concerned.0

2.2.  The Ministry of Finance defines tax policy, including customs and tariff policy. Thanks to the efforts of the Directorate-General of Taxes (DGI), it should in future be possible to consult the finance laws and chart of government financial operations on the DGI website (http://impots.gov.mr). The Customs does not have a website of its own on which to post the applicable laws and regulations.0 The Ministries responsible for the economy and investment, agriculture and livestock, health, fisheries, and mining, as well as the Central Bank of Mauritania (BCM) (Section 1), can play a role in the area of trade policy.

2.3.  Private entities with the potential for involvement in Mauritania's trade policy are the Chamber of Commerce, Industry and Agriculture, and the National Employers Union of Mauritania, which encompasses the National Federations of Fisheries; Banks, Tourism and Services; Industry

0 Online information viewed at: http://www.cdcmr.mr/wp-content/uploads/2017/02/rapport2006.pdf.0 Framework Law No. 040-2015 of 23 December 2015 and Law No. 014–2016 of 15 April 2016 on the

fight against corruption. These laws do not appear to be available on an official website.0 Le Monde Afrique, 9 November 2017. Viewed at:

http://www.lemonde.fr/afrique/article/2017/11/09/mauritanie-le-blogueur-accuse-de-mecreance-echappe-a-la-peine-de-mort_5212821_3212.html.

0 Sherpa, "Corruption in Mauritania, a gigantic evaporation system". Viewed at: https://www.asso-sherpa.org/wp-content/uploads/2017/09/Sherpa-Corruption-in-Mauritania_A-gigagntic-evaporation-system-2017-1.pdf.

0 Online information from Transparency International, viewed at: https://www.transparency.org/news/feature/corruption_perceptions_index_2016 .

0 United Nations (2015), Economic Commission for Africa – Office for North Africa,"International Transport and Trade Facilitation in North Africa". Viewed at:

https://repository.uneca.org/bitstream/handle/10855/22710/b11542858.pdf?sequence=1.0 Online information viewed at: http://www.finances.gov.mr/index.php?id=1&id1=7&xDossier=11.

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and Mining (FIM); Agriculture and Livestock; Trade; and Transport. A national commission for dialogue on international trade is provided for but does not meet. According to the authorities, a process of ongoing dialogue with the private sector is in place, but is neither formal nor mandatory.

2.4.  Between 2015 and 2017, Mauritania updated its "Poverty-focused Trade Strategy" drawn up in 2001 (Section 2.3), but by 2017 had made no real progress in its implementation. Access to commercial occupations remains particularly constrained by the lack of import competition and the resulting high prices (Section 3.3.4). In those sectors in which Mauritania has a clear comparative advantage, such as fisheries and mining products (Sections 4.2 and 4.4), trade is essentially the preserve of State-owned enterprises or of large family-owned groups, having little effect on the incomes of vulnerable populations.

2.5.  In particular, the recent United Nations study on obstacles to international road trade in Mauritania observes that Mauritanian trade is severely hampered by a lack of infrastructure and of adequate support and logistical services at the country's borders (refuelling, vehicle maintenance and parking facilities, banks, insurance agencies, post offices, restaurants, hotels, etc.).0 The study points to high costs and to the poor quality of the customs control, security (gendarmerie, police) and sanitary and phytosanitary control services, as well as to the non-conformity of border posts with international standards. Administrative border services are inadequate, and there is a lack of coordination between the controls carried out on either side of the border, where hours of operation and business days differ. This results in repetitious document checks and frequent stoppages of the vehicle flow, adding to the time it takes to cross the border. According to the study, in 2015 Mauritania seems to be fully compliant with approximately 25% of the provisions of the Trade Facilitation Agreement (TFA), partly compliant with 25% of provisions and non-compliant with the remaining 50%.

2.6.  The importance of trade-related activities as a source of job creation, income, economic growth and "shared prosperity" (Section 1) has not been emphasized in the various development plans since the start of the millennium. Mauritania's first Poverty Reduction Strategy Paper (PRSP) was approved in December 2000 for the period 2001-2004, with the main long-term objective of reducing poverty and social inequalities. Four main themes were defined to achieve that objective: speeding up economic growth; increasing the productivity of the poor; developing human resources and access to basic infrastructure; and strengthening institutions. The paper did not identify trade as a factor in economic growth. The second PRSP covered the period 2006-2010 with the same long-term objective and the same four themes. The role of trade and export development in growth and poverty reduction was recognized more specifically, however, and the second PRSP explicitly acknowledged that infrastructure deficits, particularly in the transport, energy and telecommunication sectors, were obstructing the development of Mauritania's trade. Furthermore, several actions and reforms envisaged in the PRSP II were aimed at stimulating exports – particularly through tax incentives; institutional strengthening; the creation of export development centres in key sectors; and trade negotiation capacity building. A third PRSP, approved for the period 2011-2015, deals neither with trade facilitation nor with the need to eliminate the numerous barriers to trade.

2.3  Trade agreements and arrangements

2.3.1  World Trade Organization

2.1.  Mauritania is an original Member of the WTO and grants at least most-favoured-nation (MFN) treatment to all its trading partners.0 Prior to the signature of the Association Agreement with ECOWAS in September 2017 (Section 2.3.2), the WTO Agreement formed the sole basis for all Mauritania's trading relations, with all of its trade being conducted on an MFN basis. Mauritania was one of the very few WTO Members not to maintain reciprocal preferential trade relations with any other country.

2.2.  Under the monist system in force in Mauritania, the WTO rules and obligations may be invoked in all relevant cases before the Mauritanian courts, although no such case has arisen so far. Mauritania is neither a signatory to nor an observer in any of the protocols or agreements

0 United Nations (2015), Economic Commission for Africa – Office for North Africa,"International Transport and Trade Facilitation in North Africa". Viewed at:

https://repository.uneca.org/bitstream/handle/10855/22710/b11542858.pdf?sequence=1.0 Mauritania became a Contracting Party to the GATT on 30 September 1963, under the provisions of

Article XXVI:5(c).

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concluded under WTO auspices. It has not submitted any notification to the WTO since 2002, except for a contact point.

2.3.  WTO technical assistance to Mauritania has been limited since 2011 owing to the country's non-payment of its contributions for 29 years: in November 2017, its arrears stood at CHF 853,414. By way of comparison, this amount is roughly equivalent to the value of the technical assistance provided by the WTO to comparable LDCs over a three-year period, i.e. the monetary equivalent of the technical assistance of which Mauritania is depriving itself.0 Following the first TPR preparatory mission, in October 2017, Mauritania paid half of the aforementioned amount and announced its intention to pay the remaining half by May 2018. None of the three WTO Reference Centres, at the Ministry responsible for trade, the Chamber of Commerce and the University of Nouakchott, is still in operation.

2.4.  Since 2011, Mauritania has received support from its partners for various projects in the energy, transport and telecommunication sectors, which are generally covered under Aid for Trade (Table 2.2). However, it is well behind schedule in trade facilitation, despite this being a precondition for trade development. Firstly, its trade-related infrastructure is deficient and has not been the subject of a priority upgrading plan; and secondly, Mauritania's trade regulations require fundamental reform for there to be any chance of developing trade. To be able to assess the effects of any reforms that might be implemented, it is essential to improve the gathering and processing of statistical data on trade in goods, and above all on trade in services.

Table 2.4 Aid-for-Trade commitments for Mauritania, 2010-2015(US$ thousand)

2010 2011 2012 2013 2014 2015Agriculture 24,506 13,617 6,663 6,443 6,483 5,056Fisheries 3,382 7,828 5,420 9,420 6,528 4,358Forestry 1 492 0 0 1,726 1,270Mineral and mining resources 1,084 16,485 1,621 4,238 868 148Energy 65,789 64,876 121,478 34,777 51,791 56,211Industry 776 1,010 767 244 419 115Transport and storage 21,008 69,610 36,946 21,419 41,961 33,240Tourism 413 520 0 0 0 0Communications 204 6,877 1,763 171 4,038 959Banking and financial services 886 3,319 1,808 2,295 451 384Business and other services 646 9 0 0 110 0Trade policies and regulation 609 38 866 401 1,318 386Total Aid for Trade 119,302 184,681 177,332 79,408 115,694 102,127% of total ODA 29.1% 42.9% 37.9% 22.9% 35.7% 26.3%

Source: Aid-for-trade statistical queries database. Viewed at: http://www.oecd.org/dac/aft/aid-for- tradestatisticalqueries.htm.

2.5.  As a least developed country benefiting from the Enhanced Integrated Framework (EIF) programme, Mauritania was the subject, in 2001, of a Diagnostic Trade Integration Study (DTIS), entitled "A Poverty Focused Trade Strategy", which dealt specifically with the need for trade facilitation through customs reform, as well as identifying the main constraints on the growth of exports of fisheries and livestock products, and tourism.

2.6.  The DTIS also contained a plan of action with horizontal and sector-specific priorities. This plan of action and nine priority projects were presented at a roundtable in 2002 to raise the necessary financial resources. Four projects were funded by the Integrated Framework Trust Fund (support for the Chamber of Commerce; an export promotion project; support for craft exports; and a project to mobilize interest among DTIS stakeholders to implement the DTIS priorities). However, implementation of the DTIS plan of action, including the action matrix, was deficient owing to a lack of governance and capacity, as indicated in an update of the DTIS, validated in 2016, under the title "Des rentes à court terme vers une croissance macroéconomique et un développement durable fondé sur l'exportation" (From short-term rent-seeking towards macroeconomic growth and export-based sustainable development).0 A new Tier 1 institutional support project was

0 See in particular WTO (2015), Trade Policy Review - Madagascar. Viewed at: https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=Q:/WT/TPR/S318R1.pdf.

0 Online information viewed at: http://www.eif-mis.org/files/user/Mauritania_DTISU_2016.pdf.

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approved in November 2017. The Tier 1 projects already broadly identified in the 2001 DTIS were also approved in November 2017, which could allow for their implementation as well as for implementation of the 2001 action matrix.

2.3.2  Regional agreements

2.3.2.1  Arab Maghreb Union

2.1.  Mauritania is a founding member of the Arab Maghreb Union (AMU), established on 17 February 1989 at a meeting in Marrakesh of the Heads of State of Algeria, Libya, Mauritania, Morocco and Tunisia. The objectives of the Union were the free movement of goods and persons and a revision of customs regulations with a view to the establishment of a free-trade zone. However, the AMU is not yet operational. Despite having doubled between 2010 and 2016, the AMU's share of Mauritanian trade (on an MFN basis, of course) is very small (about 0.1% of exports and 3% of imports).

2.2.  Some 20 conventions and agreements have nevertheless been signed to date within the framework of the Union, of which 17 have been ratified by Mauritania. These include: the Treaty establishing the Arab Maghreb Union; an agreement on trade in agricultural products among AMU countries; an agreement on investment promotion and guarantees; an agreement on phytosanitary standards; an agreement on avoidance of double taxation and modalities of cooperation in fiscal matters; a convention establishing a Maghreb investment and foreign trade bank; a trade and tariff convention and annexes; a convention on maritime cooperation; a convention on the organization of government procurement in the infrastructure and public works sector; an agreement on the establishment of a Maghreb insurance and reinsurance committee; a protocol on certificates of origin; and a convention on mutual administrative cooperation for the prevention, investigation and repression of customs offences. None of these conventions is currently being implemented.

2.3.2.2  Economic Community of West African States (ECOWAS)

2.1.  Mauritania was a founding member of the Economic Community of West African States (ECOWAS). It remained a member until December 1999, when it left. Eighteen years later, in September 2017, it concluded its Association Agreement with ECOWAS, under which it belongs once again to the Community's trade liberalization scheme and is due to apply its common external tariff (CET) as from January 2019. This Agreement, which was not available on a public website at December 2017, has reportedly been implemented, in principle and on a provisional basis, since October 2017, when it was signed by all the members, pending its ratification by all the parties. The ECOWAS share of Mauritania's trade (on an MFN basis) grew strongly during the review period thanks to fish exports to Nigeria and Côte d'Ivoire, but nevertheless remains fairly limited (Chart 2.1).

Chart 2.5 Trade, 2011-2016(US$ million)

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43.9%

42.0%

51.7%

31.3% 26.3%

35.3%

5.1%

5.5%

3.9%

6.1%

5.2%

8.9%

2.6%

3.3%

3.0%

4.0%14.2%

6.9%

2.7%

2.2%

1.2%

1.0% 1,0%

1.4%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2011 2012 2013 2014 2015 2016

36,9%

44,1% 50,5%32,7%

31,6% 36,9%

38,3%

24,5% 20,2%

22,3

28,6 21,4

2,3%

3,5% 3,7%

8,4%

8,2%

9,2%

0

500

1,000

1,500

2,000

2,500

3,000

2011 2012 2013 2014 2015 2016

Importations Exportations

ECOWAS/WAEMU

AMU

China

United Arab Emirates United StatesEU-28Rest of worldJapanSwitzerland

36.9%

44.1% 50.5%32.7%

31.6% 36.9%

38.3%

24.5% 20.2%

22.3%

28.6% 21.4%

2.3%

3.5% 3.7%

8.4%

8.2%

9.2%

0

500

1,000

1,500

2,000

2,500

3,000

2011 2012 2013 2014 2015 2016

Imports Exports

Source: WTO Secretariat calculations based on data from the UNSD Comtrade database; and United Nations, ITC TradeMap.

2.3.2.3  Relations with the European Union

2.1.  The recent Association Agreement between Mauritania and the ECOWAS Member States (Section 2.3.2.1) was necessary to the Economic Partnership Agreement (EPA) between West Africa and the European Union, Mauritania being one of the 79 ACP countries with which the European Union concluded the Cotonou Agreement, which was signed on 23 June 2000 at Cotonou (Benin), covers the period up to 2020, and provides that regional EPAs must take over from its trade-related provisions as from 1 January 2008. Mauritania is one of the 16 States of the "West Africa" group in the regional EPA negotiations; however, it had not yet signed the EPA by the end of March  2018. A €195-million National Indicative Programme 2014-2020 has been signed between Mauritania and the EU within this framework.0 Its three main thrusts are food security and sustainable agriculture; the rule of law; and health.0

2.3.2.4  Relations with the United States of America

2.1.  Mauritania imports a significant share of its goods from the United States (Chart 2.1), under MFN conditions, the main products being mining machinery and vehicles, and petroleum products. As regards exports to the United States, throughout the period 2011-2017 Mauritania was one of the countries eligible for the programme set up by the United States under the African Growth and Opportunity Act (AGOA).0 After losing that status in January 2009 following the coup d'état in August 2008, the country then recovered it in January 2010. The countries covered by the AGOA enjoy duty-free, quota-free access to the United States market for a range of goods, including selected agricultural and textile products. In 2016, the bulk of Mauritanian exports to the United States (worth about US$48 million in 2013), particularly crude oil products (HS Chapter 27), entered the United States under the AGOA regime. To be eligible for the AGOA, African countries must make progress in: eliminating discriminatory barriers to United States trade and investment; protecting intellectual property; combating corruption; protecting human and workers' rights; and removing certain practices of child labour.

0 Online information viewed at: https://eeas.europa.eu/sites/eeas/files/20150422_fr.pdf.0 Online information viewed at: https://eeas.europa.eu/sites/eeas/files/20150422_fr.pdf.0 Online information about the AGOA, viewed at: https://agoa.info/about-agoa.html.

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2.3.3  Other bilateral trade agreements

2.1.  Mauritania has concluded various trade agreements within the framework of joint bilateral cooperation commissions. Four of those agreements (with Algeria (1997), The Gambia (2001), Morocco (1988) and Tunisia (1988)0 contain lists of products that are supposed to benefit from tariff concessions, which are not applied. The other countries with which Mauritania has signed such agreements are China, Kuwait (2006), Qatar (2006) and Turkey (2005).

2.4  Investment regime

2.4.1  Business environment

2.1.  The World Bank's Doing Business report shows a net improvement in the business environment, with Mauritania ranked 150th out of 190 in 2018 (165th out of 183 in 2010); the main problems still remaining in 2018 are those of taxation (see below) and cross-border trade. In its report, the World Bank notes that almost 60% of Mauritanian companies identified corruption as a major problem, with almost 40% of them identifying the judicial system as a significant obstacle. Mauritania remains one of the lowest-ranked countries (133rd out of 137 countries considered in 2017-2018) in the World Economic Forum's Global Competitiveness Index, this being a slight improvement on its ranking for 2016-2017 (136th out of 137). However, the trend since 2011 (135 th

out of 138) is not one of significant improvement in relation to the other countries surveyed.0 The most problematic factors for doing business, as identified by the Forum, are presented in Chart 2.2. A number of other observers in Mauritania continue to raise concerns about the lack of good governance and high level of corruption. Mauritania has not signed the OECD Convention on combating bribery of foreign public officials in international business transactions.0

Chart 2.6 Most problematic factors for doing business in Mauritania

25.921.9

19.711.1

5.73.02.82.7

1.71.6

1.11.0

0.70.60.5

0.0

0 5 10 15 20 25 30

Access to financingCorruptionTax ratesInflation

Inefficient government bureaucracyPolitical instability

Inadequate supply of infrastructureInadequately educated workforce

Poor work ethic in national labour forceGovernment instability/coupsForeign currency regulations

Tax regulationsRestrictive labour regulations

Insufficient capacity to innovateCrime and theft

Poor public health

(Score)Source: World Economic Forum, The Global Competitiveness Report 2017-2018.

2.2.  Mauritania has been taking steps to improve governance since 2005, for example by acceding to the Extractive Industries Transparency Initiative (EITI) (Section 4.4), and by adopting, in 2007, a Code of Ethics requiring a declaration of assets from public officials; a Law on the assets of senior government officials; and a law criminalizing bonded labour, which was strengthened in 2012 by an amendment abolishing the ten-year limitation period. Mauritania has also joined the new Fisheries Transparency Initiative (Section 4.1.2.3).

0 Online information viewed at: http://www.commerce.gov.tn/Fr/mauritanie_11_342.0 World Economic Forum (2017), The Global Competitiveness Report 2017–2018. Viewed at:

http://www3.weforum.org/docs/GCR2017-2018/05FullReport/TheGlobalCompetitivenessReport2017   per centE2   per cent80   per cent932018.pdf .

0 Online information from the OECD, viewed at: http://www.oecd.org.

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2.3.  As can be seen from Chart 2.2, the tax burden and tax regulations are obstacles referred to by investors (Section 1).0 Tax liabilities are assessed on the basis of the nature of the income in question rather than the legal status of the taxpayer (natural or legal person). The tax on industrial and commercial profits (BIC) is set at 25%. The tax on non-commercial profits (BNC) is charged at 30%, which implies a relatively high tax burden, despite the rate having being reduced from 35% in 2015. Moreover, individuals and legal entities liable for taxation on actual earnings are subject to a minimum flat-rate tax (IMF) at a rate of 2.5% of the turnover for the previous financial year, with a minimum leviable amount of 750,000 ouguiyas (about US$2,100). The IMF is fully deductible from the BIC tax. Amounts paid in excess appear to be counted as credit towards subsequent payments. In other words, the IMF is still payable even when a taxpayer records losses. However, the 2.5% IMF is also payable on the c.i.f. customs value of imports, inclusive of tax (Section 3.2).

2.4.  The labour legislation acts as a further disincentive to investment, except within the framework of the Investment Code (see below). In practice, the labour market is supplied mainly by the informal sector, which accounts for 75% to 80% of jobs.0 The 2004 Labour Code applies to all Mauritanian or foreign workers employed by a public or private enterprise, whether Mauritanian or foreign. It provides, however, for a relatively burdensome and complex procedure involving indefinite contracts (CDI) and fixed-term contracts (CDD). A CDD can be renewed only once and has a total duration of two years. Any CDD signed for a period longer than three months, or requiring the worker to find accommodation away from home, must be approved by the Labour and Social Security Inspectorate. The continuation of services after a CDD has expired entitles the worker to a CDI contract. According to the World Bank's Doing Business indicator, hiring costs are moderate, the minimum monthly wage for full-time work being in the order of US$91 in 2017, as against US$104 in 2014.

2.5.  The modalities for issuing a work permit to foreign workers, which were previously set by a 1974 decree, are now regulated by a 2009 decree which has simplified a number of areas.0 This decree has reduced the types of work permit from three to two: A and B. The A-permit authorizes the holder to occupy a specific job in the employ a specific employer. It cannot exceed two years but is renewable, adding to the bureaucratic red tape. One of the conditions for its issuance is that the post in question cannot be filled by a Mauritanian worker. A B-permit authorizes the holder to occupy any wage employment in the service of any employer established in Mauritania. It is issued on a reciprocal basis to any worker who is a national of a State that has signed relevant agreements, treaties or conventions with Mauritania. At November 2017, no such agreement had been signed. A B-permit can also be granted to any salaried or self-employed worker having resided without interruption and worked in Mauritania for at least eight full years.

2.6.  A five-year land reform programme was launched in 2016 with assistance from the World Bank and the African Development Bank, starting from the recognition that an appropriate land tenure policy could make a significant contribution to achieving the goal of food security. According to a recent United Nations report, the land tenure system is one of the three main factors perpetuating the extreme poverty in which three quarters of the Mauritanian population live. Land ownership is governed by a 1983 ordinance and by an implementing decree issued in 2010.0 A new Code of Real Rights was adopted in May 2017, introducing a mechanism for the settlement of land disputes; however, it had not yet come into effect by March 2018. The National Land Development Agency is responsible for the management of land tenure in each region.0

0 The basic legislation governing tax policy consists of the General Tax Code of 1982, as amended annually, and Law No. 94-010 of 1994 introducing VAT, as amended by subsequent finance laws. 2013 edition viewed at: http://www.investinmauritania.gov.mr/IMG/pdf/Code_General_des_Impots-2013.pdf.

0 Mauritanian Observatory for Human Rights and Democracy (2016), Report on the implementation in Mauritania of the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families. Viewed at: http://www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=19803&LangID=E.

0 Decree No. 2009-224 of 29 October 2009, repealing and replacing Decree No. 74-092 of 19 April 1974, establishing the conditions of employment of foreign workers and instituting the work permit for foreign workers. Viewed at: http://www.ilo.org/dyn/natlex/natlex4.detail?p_lang=fr&p_isn=84146 .

0 Decree No. 2010-080, repealing and replacing Decree No. 2000/089 of 17 July 2000, implementing Ordinance No. 83-127 of 5 June 1983 on the reorganization of land tenure and State holdings. Viewed at: http://anac.mr/ANAC/JOf/2010/1216%20fr%20sc.pdf .

0 Decree No. 2006–078 of 18 July 2006 creating the National Land Development Agency (ANAT) and establishing the rules for its organization and operation. Viewed at: http://extwprlegs1.fao.org/docs/pdf/mau136481.pdf .

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2.4.2  New Investment Code

2.1.  Since 2012, domestic and foreign private investment in Mauritania has been regulated by a new law, accompanied by an implementing decree.0 Its purpose is to encourage the investment of domestic and foreign capital, to safeguard such investment, and to facilitate the related administrative procedures. Filing for approval is not a requirement for an investor to be able to set up business in Mauritania but is mandatory if the investor wishes to take advantage of the privileges under the Code; any investor wishing to benefit from the Code's provisions must file an application for an investment certificate with the Directorate-General for Promotion of the Private Sector (Ministry of the Economy and Finance), via the single window for investment. Approvals granted prior to the entry into force of the Code remain valid until their original date of expiry.

2.2.  The Code applies to all sectors except trade (purchase for resale in the same state on the local market); activities governed by the law regulating banking, including leasing; activities governed by the regulations in force on insurance and reinsurance; and activities governed by the legislation on mining and hydrocarbons. It is therefore possible that most large-scale investments, particularly in the mining sector, are still being made under agreements that lie outside the scope of the Code.

2.3.  Title II of the law sets out the guarantees, rights and freedoms of enterprises in regard to access to raw materials, freedom of exchange, and transferability of capital and remuneration (for foreign investors), as well as against any measure of nationalization, expropriation or requisition. Equal treatment of nationals and foreigners is stipulated. Moreover, the stability of legal, tax and customs conditions is guaranteed for a period of 20 years as from the date on which the investment certificate is issued; and the investor benefits automatically from any favourable change in tax or customs conditions during the period of validity of the approval.

2.4.  The company may engage expatriate employees in key posts accounting for up to 10% of the management. In such cases, due authorization and a work permit must be obtained, subject to equivalent national skills not being available (Section 2.4.2.2). The gross salary of such expatriate employees is taxed at 20%.

2.5.  Provision is made for three new preferential regimes: the SME regime (RPME); the special economic zones, which include the export free zones (ZFEs) and the development hubs outside Nouakchott (PDHNs); and establishment agreements. The free points regime that existed under the former code for companies engaged solely in exportation has been abolished. Whichever the regime, however, profits are taxed under the ordinary law regime.

2.6.  The RPME applies to any investment between 50 and 200 million old ouguiyas (about US$143,000 to US$571,000) by a company liable for taxation on actual earnings and generating at least ten direct jobs. Among the benefits, a company under the RPME regime may, for a one-off payment of fiscal import duty at 3.5% (which is reportedly not applied by the Customs), import its capital goods (as listed in an Order of the Minister of Finance). Once operational, it can also benefit from the RPME for its spare parts. However, industrial inputs are subject to the rates stipulated in the customs tariff throughout the approval period.

2.7.  ZFEs may be private companies or public-private partnerships. The investment must be greater than 500 million ouguiyas (about US$1,430,000) and create at least ten permanent jobs, and the company must "show evidence of an export potential of at least 80%". The ZFE enjoys exemption from taxes based on wages and staff costs; business tax; property tax on developed land; property tax on undeveloped land; and the licence fee. All these taxes are replaced by a single communal tax which may not exceed 5 million ouguiyas (about US$14,000). ZFEs are subject to industrial and commercial profits tax under the ordinary law regime. The customs concessions consist in total relief from import duties and taxes on capital goods, equipment and utility vehicles intended for use in production (as listed in an order of the Minister of Finance); and in exemption from export duties and taxes.

2.8.  The Investment Code does not apply to the Nouadhibou free zone, where the regime is even more favourable than the ZFE regime. Any investment in the Nouadhibou ZFE must be registered

0 Law No. 2012-052 containing the Investment Code, viewed at: http://investmentpolicyhub.unctad.org/InvestmentLaws/laws/131; and Decree No. 2012-282 of 18 December 2012, viewed at: http://www.rimgerddes.org/wp-content/uploads/2014/01/JO1281.pdf.

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with the Nouadhibou Free Zone Authority, which is under the supervision of the Office of the President.

2.9.  The PDHN regime applies to any new investment made within a PDHN and exceeding 50 million ouguiyas (about US$143,000) by a company generating at least ten permanent jobs. The import concession under the RPME consists in duty-free importation of approved equipment, inputs being subject to the ordinary law regime. Furthermore, new companies and extensions of existing companies benefit, provided at least ten additional permanent jobs are created, from total exemption from the BIC tax for a period of eight years.

2.10.  In its Title III, the Investment Code provides for the possibility of concluding establishment agreements for substantial investment in the following areas:

agriculture, except for the purchase of land (5 billion ouguiyas (US$14.3 million), 100 direct jobs, at least 1,000 indirect jobs);

processing of livestock products (1 billion ouguiyas (US$2.8 million), 50 direct jobs, at least 200 indirect jobs);

the onland fisheries products industry, with the exception of fish meal (5 billion ouguiyas (US$14.3 million), 500 direct jobs, at least 2,000 indirect jobs);

development of small-scale and inshore fishing (2 billion ouguiyas (US$5.6 million), 100 direct jobs, at least 500 indirect jobs);

industrial and manufacturing units (2 billion ouguiyas (US$5.6 million), 50 direct jobs, at least 200 indirect jobs);

generation of renewable – wind and solar – energy (500 million ouguiyas (US$1.4 million), 50 direct jobs, at least 100 indirect jobs; and

the hotel trade and tourism outside Nouakchott (500 million ouguiyas (US$1.4 million), 20 direct jobs, at least 50 indirect jobs).

2.11.  Establishment agreements are for a period of 20 years. No exemption is possible in regard to: VAT; the tax on wages and salaries; the BIC tax (apart from the above-mentioned concessions for investment outside Nouakchott); or communal taxes.

2.12.  Finally, the Code sets out procedures for the settlement of disputes between foreign investors, or companies under foreign control established in Mauritania, and the Mauritanian authorities, in addition to the traditional judicial channels: through conciliation or arbitration, on the basis of an agreement between the two parties; or of investment protection agreements and treaties concluded between Mauritania and the State from which the investor originates; or through arbitration by the International Chamber of Mediation and Arbitration of Mauritania (CIMAM) or the International Centre for Settlement of Investment Disputes (ICSID).

2.13.  Although not provided for in the new Code, a dispute may also be settled through the establishment of an ad hoc tribunal constituted in conformity with the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL).0 Mauritania is also a member of the Multilateral Investment Guarantee Agency (MIGA), which insures foreign direct investment against political risks.0

2.14.  The new Investment Code provides for the simplification of administrative procedures through the single window for investment, which is responsible for receiving, providing guidance and information to, and assisting investors, and for registering investments. Since it centralizes the formalities required for the granting of concessions, this window could also serve to facilitate the issuing of work permits, including for the investors themselves, and the issuance of residence permits, thereby reducing the duration and complexity of the corresponding procedures for foreign investors. As things stand under the current foreign worker employment regime, the employer files work permit applications on a case-by-case basis, and must provide a job description and the

0 Online information from the United Nations Commission on International Trade Law (UNCITRAL), viewed at: http://www.uncitral.org.

0 Online information from MIGA, viewed at: https://www.miga.org.

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justification for not hiring a Mauritanian worker. The relevant government agency then reviews the applications, which is generally a fairly lengthy and costly procedure.

2.4.3  International investment conventions and agreements

2.1.  Mauritania has concluded some 20 bilateral investment promotion and protection agreements.0 In March 2018, such an agreement was concluded with Turkey. According to UNCTAD, most of the agreements have not been ratified. They reportedly contain very little detail and basically stipulate fair and equitable treatment; post-establishment national treatment; MFN treatment; protection against expropriation; the right to repatriate profits and the capital initially invested; and recourse to international arbitration.

2.2.  Mauritania reports that it has also signed four double taxation agreements, with Algeria (2016); France (1967)0 ; Senegal (1971); and Tunisia (1986).

0 UNCTAD, Investment Policy Hub. Viewed at: http://investmentpolicyhub.unctad.org/IIA/CountryBits/133#iiaInnerMenu.

0 Online information viewed at: https://www.impots.gouv.fr/portail/files/media/10_conventions/mauritanie/mauritanie_convention-avec-la-mauritanie_fd_1942.pdf .

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3  TRADE POLICIES AND PRACTICES BY MEASURE

3.1  Measures directly affecting imports

3.1.1  Customs procedures, valuation and requirements

3.1.  In principle, trading activities are open to Mauritanians and foreigners without distinction. All regular importers must be enrolled in the Central Importers Register. If they import at least 30 million old ouguiyas (US$86,000) worth per year, they must obtain a tax registration number (NIF) from the Customs. Every enterprise whose capital exceeds 5 million old ouguiyas (US$14,000) must possess an NIF, as must State suppliers. All NIFs, whatever the sector, have been unified since 2011.

3.2.  Since its last TPR in 2011, Mauritania has taken steps to facilitate trade and reduce the related costs, including import clearance times. In particular, trade facilitation measures were introduced following the adoption of a new Customs Code, which repealed and replaced the Law of 1966. These measures were designed to make the clearance system paperless by processing customs documents electronically.0 The implementing texts are in preparation. Among the innovations of the Code, the status of approved economic operator (AEO) was in the planning stage in March 2018.

3.3.  The simplification of customs procedures has enabled progress to be made in computerization, with the switching of all the customs offices using the automated customs system ASYCUDA++ over to ASYCUDA WORLD since January 2016. According to the authorities, 90% of customs offices are computerized, which is equivalent to 99% in terms of transactions. Mauritania has 27 customs offices across the country, of which seven are specialized in the following areas: three in mining, one in fishing, one in the Nouadhibou free zone, and two in hydrocarbons.

3.4.  Clearance formalities have been speeded up with the possibility of using an electronic manifest covering all transactions for both imports and exports. There is a project for enabling all the documents that accompany the manifest also to be provided in electronic form. The authorities are currently introducing scanning of the accompanying documents, with the paper documents being used for checking purposes.

3.5.  A single window called "Single Fees and Taxes" (RTU) was set up in June 2016 for the payment of non-customs taxes paid to the Chamber of Commerce, the transport authority and the urban commune of Nouakchott (550 old ouguiyas (US$1.6) per tonne). It is attached to the clearance chain. Electronic payment is not being used. The computerization of declarations has considerably simplified customs procedures and, according to the authorities, the time they take has been reduced from 48 hours in 2011 to two hours, thanks to the switch-over to ASYCUDA WORLD. Moreover, this ASYCUDA WORLD system provides a specific AEO module. A unit was in place for studying the eligibility criteria for AEO status.

3.6.  For every import or export operation, the goods must be declared by approved customs clearing agents or persons specially authorized to clear goods under conditions laid down by decree.0 The procedure begins with the file being transmitted to the approved customs clearing agent, the issuing of the declaration and its input into ASYCUDA WORLD. According to the World Bank's 2017 Doing Business report, the adoption of ASYCUDA WORLD has made it possible to speed up the processing of import and export documents.0

3.7.  Efforts have been made to reduce the documentation required for imports and exports. According to Article 113 of the new Customs Code, a "detailed declaration" must be lodged for all imported goods, together with the following documents: the commercial documents attesting to the purchase of the goods; the transport documents; and the sanitary/phytosanitary certificate, where appropriate. There is a data-processing charge of 3,000 old ouguiyas (US$8.6) per declaration.

0 Law No. 2017/035 of 21 December 2017 repealing and replacing the Law of 1966. This text has not been published on an official website.

0 Decree No. 84.052 of 12 March 1984 as amended by Decree No. 2006-123 of 14 December 2006.0 Online information from Doing Business, viewed at: http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual-Reports/English/DB17-

Report.pdf.

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3.8.  The clearance procedure comprises an examination of the declaration, an inspection (possibly with a physical examination of the goods), checking of the manifests/freight lists, and the payment of customs duties and taxes. There has been a relative improvement in the examination of the goods as a result of a relaxation of inspection depending on the quality and content of the information entered in the declaration.

3.9.  The new Customs Code (Article 117) provides for simplified clearance procedures, including the possibility of posting security, with the detailed declaration to follow later. Under Article 123 of the new Code, simplified clearance procedures may be applied to take into account the specific characteristics of certain sectors of activity and in accordance with the conditions laid down by orders issued by the Minister responsible for finance. The National Industrial and Mining Company (SNIM) is a beneficiary of these facilities (Section 4.4). The simplified declarations lodged for split or phased imports and exports do not require all the statements or documents listed in the regulations in force. Where non-customs controls are necessary, with notification of the results of an analysis, the procedure may last up to seven days.0

3.10.  The preshipment inspection programme implemented since 1994 by the Société générale de surveillance (SGS) was abolished in 2014. According to the authorities, this was a very expensive programme and the customs administration now takes care of customs valuation and tariff assignment. The role of the National Value Office, established in 2015, is to support the Customs in re-assuming the task of customs valuation, with the compilation of a consultation database containing the declarations from ASYCUDA WORLD.

3.11.  A multi-year technical assistance programme (PPAT) was set up with the aid of the IMF in 2014 and will continue until March 2018, to support and train inspectors and upgrade customs officers. Initially, this programme involved a choice of three products for applying the transaction value. It was then expanded to eight products (hydrocarbons, new vehicles, clinkers, telecommunications, rice, cigarettes, iron bars, and condensed milk), which generate the most revenue. The list will be further expanded to 23 products by the time the PPAT ends in March 2018. The products selected will have to be accompanied by an invoice. The inspector must document his choice of the method to be used.0

3.12.  Since the switch-over to ASYCUDA++ in 2010, goods have, in principle, been cleared through customs by means of four channels: a red channel (high-risk, for 40% of the goods) necessitating a physical inspection of the documents and the goods before clearance; a yellow channel (medium-risk, 40%), meaning clearance on the basis of a documentary inspection; a green channel (low-risk, 10%), for clearance without the need for inspection; and a blue channel (10%) for deferred control (rapid release). However, in December 2017, there was no risk analysis, with selectivity criteria, in place. In practice, inspections are rare and not based on scientific facts. Thus, the decision to inspect the goods depends mainly on the experience of the inspectors. According to the authorities, 60% of goods are not inspected.

3.13.  Scanners are available for carrying out free inspections in the four airports and the port of Nouakchott (currently out of service). Two truck-mounted mobile scanners are supposed to cover the road network.

3.14.  In principle, all imports require an authorization issued by the Ministry of Trade. However, in practice, this authorization is not required at clearance. New importers often ask for this authorization at the request of their suppliers or because of their lack of familiarity with the market.

3.15.  To facilitate clearance, economic operators are allowed to establish warehouses, clearance areas and container terminals to provide for the temporary storage of imports (which are not to be declared in detail immediately) and goods that have gone through the declaration formalities and have been assigned to a customs export or re-export procedure. The legal provisions are contained in Articles 105 to 110 of the new Customs Code. The concessionaires of these sites must, by way of guarantee, submit an annually renewable general customs bond. Operators have 15 days within which to lodge the customs declaration. Nine operators on clearance areas and four operators for warehouses were active at the end of 2017.

0 According to the United Nations report "International transport and trade facilitation in North Africa", 2015, and the Doing Business report for 2014.

0 Order No. 239/MF/DGD/2013.

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3.16.  The provisions of the WTO Agreement on Customs Valuation have been incorporated in the Customs Code since 2002. According to the authorities, Mauritania no longer resorts to minimum import values and applies the WTO Agreement. However, for used cars, the Argus (trade-in) minimum import value is still employed.

3.17.  In cases of infringement of the Customs Code and other import regulations, the sanctions range from the imposition of a fine of from 10,000 old ouguiyas (US$29) to 100,000 old ouguiyas (US$290) to confiscation of the goods and means of transport, or the imposition of a fine equal to four times the amount of the duties and taxes owed on the goods imported, depending on the seriousness of the offence. The penalty for smuggling is imprisonment for a maximum of three years.

3.18.  In the event of appeals arising from a possible dispute, the new Customs Code provides for the creation of two dispute settlement bodies: the National Commission for the Arbitration of Customs Disputes and the Administrative Commission for Conciliation and Settlement of Customs Disputes. At present, according to the authorities, amicable settlements are still very widespread. If the parties are not satisfied with the amicable settlement, the case is brought before a Values Committee and, as a last resort, before the courts.

3.19.  According to the United Nations report on international transport and trade facilitation in North Africa, the absence from Mauritanian border posts of certain non-customs control services (technical control and analysis of food exports, sanitary and phytosanitary controls) and the fact that the various services (customs, health, immigration, security) are not all located in a single place are largely responsible for the relatively poor performance of the border administrations. Moreover, the negative impact of this dispersion of the control services along the formalities chain is worsened by a lack of personnel or staff motivation at certain crossing points at which significant peaks in traveller and goods traffic are regularly recorded.

3.20.  Likewise, because of their location, some crossing points suffer from harsh weather conditions and frequent cuts in the power supply or network connections, with a corresponding reduction in the quality of the services provided, not to mention the average age of the computer equipment made available to the border administrations. Mauritania does not apply any international or bilateral transit convention.

3.21.  In March 2018, Mauritania had not yet ratified the WTO Trade Facilitation Agreement.

3.1.2  Rules of origin

3.1.  Mauritania has not made any notification to the WTO concerning preferential or non-preferential rules of origin.0 However, Article 25 of the new Customs Code contains provisions relating to the determination of the origin of a product. They define the country of origin of a product as that in which it was wholly obtained, that is to say, in which the product was harvested, raised or extracted from the soil. The origin criteria for processed products have not been defined by the Customs Code.

3.2.  The rules to be followed for the purpose of determining the origin of goods obtained in a country using products harvested, raised, extracted from the soil or manufactured in another country are established by agreements concluded by Mauritania with States or groups of States or by decree, on the proposal of the Minister responsible for finance. The provisions that bind Mauritania where rules of origin are concerned are those contained in its Association Agreement with ECOWAS (preferential rules of origin, Article 5(b). Certificates of origin for products exported within the context of tariff preferences accorded to Mauritania must be validated by the Mauritanian Customs.

3.1.3  Customs duties

3.1.3.1  MFN applied tariff

3.1.  The tariff communicated by Mauritania for the year 2017 is based on the 2012 version of the Harmonized Commodity Description and Coding System (HS). Called the fiscal import duty (DFI), it is ad valorem on all lines and comprises four rates (zero, 5%, 13% and 20%). Apart from the DFI, the Government collects a uniform statistical fee of 1% on more than 90% of tariff lines. The

0 WTO document G/RO/78 of 10 November 2016.

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Association Agreement with ECOWAS provides for Mauritania to implement the ECOWAS CET by 1 January 2019 at the latest; 70% of Mauritania's 2017 MFN tariff corresponds to the ECOWAS CET (see below). However, the Association Agreement does not mention the CET's accompanying measures.0

3.2.  The 5,457 ten-digit tariff lines are distributed as follows (Chart 3.1):

205 tariff lines, at the zero rate (zero category), relating to essential products of a social nature comprising health, educational, cultural and informational articles, together with inputs and equipment for agriculture, livestock and fishing;

2,163 tariff lines, at the 5% rate (category 1), intended for basic commodities, unprocessed raw materials and capital goods;

957 tariff lines, at the 13% rate (category 2), relating to semi-finished products and industrial inputs;

2,113 tariff lines, at the 20% rate (category 3), reserved for end-consumer products and other products not included in the other categories;

19 tariff lines for which the rates are missing.

3.3.  With the application of the 2017 tariff, the average rate of 12% remained almost identical with that of the tariff applied in 2010 (12.1%) (Table 3.1). The highest average rates are those applied to beverages and tobacco (20%), clothing (20%), and fish and fishery products (19.8%). The average tariff protection for agricultural products (WTO definition) declined slightly, whereas that accorded to other products remained unchanged. On average, the tariff rates have fallen by more than two percentage points on oilseeds, fats and oils; and 1.3 percentage points on cereals and other preparations. The average tariff protection increased by 2.5 percentage points on dairy products and 1.6 percentage points on beverages and tobacco (Chart 3.2).

Chart 3.7 Breakdown of applied MFN tariff rates, 2017Number of tariff lines

(3.7)

(39.6)

(17.5)

(38.7)

0

500

1,000

1,500

2,000

2,500

0% 5% 13% 20%

Note: The figures in parentheses correspond to the percentage of total lines. The figures do not add up to 100% because of the missing tariffs (19 lines).

Source: WTO Secretariat calculations based on data provided by the authorities.

3.4.  When the ISIC definition is used, manufactured products remain the most protected (with an average tariff of 12.3%), followed by agriculture (10.4%) and, finally, mining and quarrying (4.9%) (Table 3.1).

0 For a description of the ECOWAS CET accompanying measures, see WTO (2018), Trade Policy Review of Guinea. Viewed at: https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=R:/WT/TPR/S362R1.pdf https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=R:/WT/TPR/S370R1.pdf .

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Chart 3.8 Applied MFN duty rates, by WTO product group, 2010 and 2017(%)

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

2010 2017Average applied rate2010 - 12.1%2017 - 12.0%

1. Agriculture2. Products of animal origin3. Dairy products4. Fruit, vegetables, plants5. Coffee, tea6. Cereals and other preparations7. Oilseeds, fats & oils

8. Sugar and confectionery9. Beverages and tabacco10. Cotton11. Other agricultural products12. Non-agricultural products13. Fish and fishery products14. Metals and minerals

15. Chemical products16. Wood, paper, etc.17. Textiles18. Clothing

19. Leather, footwear, etc.20. Non-electrical machinery21. Electrical machinery22. Transport equipment23. Other manufactured articles n.e.s.24. Petroleum

Note: The tariff average calculations are based on 2010 (HS-07 nomenclature) and 2017 (HS-12 nomenclature).

Source: WTO Secretariat calculations based on data provided by the authorities.

3.5.  The rate dispersion has clearly deteriorated, with a coefficient of variation that has increased from 0.57 with the 2010 applied tariff to 0.59 with that for 2017. However, the proportion of international tariff peaks has remained almost the same with 38% of the total number of lines under the 2010 applied tariff as against 38.7% in 2017. Global tariff escalation in 2017 remains comparable with that in 2010 with a slightly higher rate for raw materials. In other words, nominal and effective protection levels remain comparable with those of 2010.

Table 3.5 Structure of MFN duties, 2010 and 2017

2010 2017 Bound duty ratesa

1. Bound tariff lines (% of total lines) N/A N/A 41.12. Simple average of applied MFN rates 12.1 12.0 20.4

Agricultural products (WTO definition) 11.6 11.2 38.5Non-agricultural products (WTO definition) 12.2 12.2 11.0Agriculture, hunting, forestry and fishing (ISIC 1) 9.5 10.4 39.9Mining & quarrying (ISIC 2) 5.0 4.9 0.0Manufacturing (ISIC 3) 12.4 12.3 17.4

3. Duty-free tariff lines (% of all tariff lines) 2.0 3.8 0.84. Simple average rates (dutiable lines) 12.3 12.5 20.85. Non-ad valorem duties (% of all tariff lines) 0.0 0.0 0.06. Tariff quotas (% of all tariff lines) 0.0 0.0 0.07. National tariff peaks (% of all tariff lines)b 0.0 0.0 1.88. International tariff peaks (% of all tariff lines)c 38.0 38.7 19.29. Global standard deviation of applied rates 6.9 7.1 17.810. Coefficient of variation 0.6 0.6 0.911. "Nuisance" applied rates (% of all tariff lines)d 0.0 0.0 0.0

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Note: The 2010 tariff consists of 5,268 tariff lines (ten-digit, in accordance with the HS-07 nomenclature).The 2017 tariff consists of 5,457 tariff lines (ten-digit, in accordance with the HS-12 nomenclature).Calculations based on the national tariff line level.In the 2017 tariff the rates are missing for 19 tariff lines.

N/A Not applicable.a The final bound rates are based on WTO, consolidated tariff schedule (CTS) database

(5,343 eight-digit tariff lines, except for 1302190001 and 1302190002 (ten-digit), in accordance with the HS-12 nomenclature).

b National tariff peaks are duties that are higher than three times the simple average of all applied rates.

c International tariff peaks are duties that exceed 15%.d Nuisance duties are rates higher than zero but less than or equal to 2%.Source: WTO Secretariat calculations based on data provided by the authorities and the WTO database.

3.6.  Overall, the tariff is characterized by positive escalation (Table 3.2), from raw materials (9.8%) to semi-finished products (10.3%) and then towards finished products (13.7%). A breakdown at ISIC two-digit level reveals positive tariff escalation in the textiles and clothing; wood and articles of wood; paper, articles of paper, printing and publishing; non-metallic mineral product and other manufacturing industries (Chart 3.3). The positive escalation does not encourage the industries concerned to seek competitiveness on international markets and hence to develop. The tariff escalation is mixed in the other industries, which increases the production costs of enterprises that use taxed inputs and/or gives them no incentive to enhance their competitiveness.

Table 3.6 Brief analysis of MFN duties, 2010 and 2017 2017 2010 ECOWAS

CETsimple

average rate(%)

Number of lines

Simple average

rate(%)

Rate bracket

(%)

CVa Duty-free tariff lines

(%)b

Simple average

rate(%)

Total 5,457 12.0 0-20 0.6 3.8 12.1 12.3Harmonized system (HS)Chapters 1 to 24 931 13.6 0-20 0.5 3.5 13.4 16.1Chapters 25 to 97 4,526 11.7 0-20 0.6 3.8 11.9 11.4By WTO definitionAgriculture 775 11.2 0-20 0.6 4.6 11.6 15.5

Animal products 111 18.4 5-20 0.2 0.0 18.6 24.1Dairy products 21 14.5 0-20 0.6 23.8 12.0 16.0Fruit, vegetables, plants 206 7.8 5-20 0.7 0.0 8.1 17.6Coffee, tea 24 15.8 5-20 0.4 0.0 15.8 14.2Cereals and other preparations

101 11.1 0-20 0.7 6.9 12.4 13.6

Oilseeds, fats & oils 102 8.2 0-20 0.7 14.7 10.3 11.8Sugars and sugar confectionery

20 8.8 0-20 0.8 10.0 9.6 13.5

Beverages and tobacco 48 20.0 20.0 0.0 0.0 18.4 17.0Cotton 5 5.0 5.0 0.0 0.0 5.0 5.0Other agricultural products

137 9.4 0-20 0.7 5.1 9.3 9.5

Non-agricultural products

4,682 12.2 0-20 0.6 3.6 12.2 11.7

Fish and fishery products

224 19.8 5-20 0.1 0.0 19.6 15.4

Metals and minerals 949 12.4 0-20 0.6 0.7 12.3 11.7Chemical products 875 6.9 0-20 0.8 16.1 7.4 8.0Wood, paper, etc. 263 11.3 0-20 0.6 4.2 11.6 11.5Textiles 630 16.5 0-20 0.3 0.3 16.7 16.3Clothing 218 20.0 20.0 0.0 0.0 20.0 20.0Leather, footwear, etc. 161 14.0 5-20 0.4 0.0 14.0 12.8Non-electrical machinery

524 7.3 0-20 0.6 0.6 7.4 7.1

Electrical machinery 248 13.1 5-20 0.5 0.0 13.0 11.2Transport equipment 180 9.7 0-20 0.7 0.6 9.7 8.6Other manufactured articles n.e.s.

382 14.8 5-20 0.4 0.0 14.9 14.2

Petroleum 28 11.0 0-20 0.7 14.3 11.3 7.9By ISIC sectorc

Agriculture, hunting, forestry and fishing

369 10.4 0-20 0.7 0.5 9.5 11.9

Mining and quarrying 97 4.9 0-13 0.3 4.1 5.0 5.1Manufacturing 4,990 12.3 0-20 0.6 4.0 12.4 12.4By stage of processing

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2017 2010 ECOWAS CET

simple average

rate(%)

Number of lines

Simple average

rate(%)

Rate bracket

(%)

CVa Duty-free tariff lines

(%)b

Simple average

rate(%)

Raw materials 737 9.8 0-20 0.7 0.9 8.9 10.4Semi-finished products 1,801 10.3 0-20 0.6 4.1 10.4 10.1Finished products 2,919 13.7 0-20 0.5 4.2 13.8 13.9Note: The 2010 tariff consists of 5,268 tariff lines (ten-digit, in accordance with the HS-07 nomenclature).

The 2017 tariff consists of 5,457 tariff lines (ten-digit, in accordance with the HS-12 nomenclature).The ECOWAS CET consists of 5,899 tariff lines (ten-digit, in accordance with the HS-12 nomenclature). Calculations based on the national tariff line level.

a Coefficient of variation (CV).b Percentage of total lines.c International Standard Industrial Classification of All Economic Activities (Rev.2), electricity, gas and

water excluded (one tariff line).Source: WTO Secretariat calculations based on data provided by the authorities and the WTO database.

3.7.  A comparison between the 2017 applied tariff and the ECOWAS CET shows that the implementation of the CET would involve changes in the 2017 tariff for around 30% of tariff lines. In particular, 39% of agricultural products and 6% of non-agricultural products would see customs duties increase, whereas there would be reductions for 12% of agricultural products and 21% of non-agricultural products. The rate increases would more particularly affect fruit, vegetables and plants, together with chemical products. The rate reductions would primarily affect the following categories: textiles, metals and minerals, chemical products, and fish and fishery products.

Chart 3.9 Escalation of applied MFN rates, by manufacturing industry, 2017

0.0

5.0

10.0

15.0

20.0

25.0%

Not a

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able

Unmanufacturedproducts

Semi-manufacturedproducts Finished products

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ap

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ring

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rage

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od

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ting

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Chem

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Note: The groups of products are those defined by the two-digit ISIC.Source: WTO Secretariat calculations based on data provided by the authorities.

3.1.3.2  Bindings

3.1.  Mauritania's Schedule of Concessions was transposed into the 2002 version and then into the 2007 version of the Harmonized System (HS) and these schedules were certified in 2011 and in 2014 within the context of the transposition exercise carried out by the WTO Secretariat. More recently, it was transposed into the 2012 version of the HS and approved by all Members during the multilateral review of 15 January 2018. In the absence of reservations on the part of WTO Members within 90 days, it will be certified at the end of April 2018. The following analysis is based on the Schedule of Concessions in the 2012 version.

3.2.  Mauritania has bound 41.1% of its tariff lines, namely, all agricultural products and 31.4% of non-agricultural products. The rates are ad valorem and range from zero to 75%. The simple

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average of bound rates for all products is 20.4%, or 38.5% for agricultural products and 11% for non-agricultural products. A large proportion of agricultural products (85% of all agricultural tariff lines) are bound at rates of 25%, 30% and 50%. Higher bound rates (75%) are applied to coffee, tea, maté, spices, cereals, alcoholic and non-alcoholic beverages and tobacco products. Lower bound rates (5%-10%) are applied to a few agricultural products such as wheat flour, pig fat, ship's biscuit, milk, cream and beer.

3.3.  A large proportion of non-agricultural lines are bound at rates of up to 20% (89% of non-agricultural bound tariff lines); the highest bound rates (25%, 30% and 50%) are applied to products such as inorganic or organic compounds, tyres, inner tubes, engines for boats and vehicles, motor vehicles, tractors, motor vehicle parts and accessories, crustaceans and molluscs, flour, juices, fish fats and oils, caviar, leather and hides, artificial flowers and wigs, boats and coral.

3.4.  At present, for 621 tariff lines (around 11% of total lines), the applied rates exceed the bound rates. The majority of the lines concerned relate to non-agricultural products, chiefly clothing and electrical and non-electrical machinery (Table 3.3). The difference between the average applied rate (12.0%) and the average bound rate (20.4%), together with the small proportion of bound tariff lines, is not such as to ensure the predictability of Mauritania's tariff regime. The other duties and taxes are bound at zero or 15%. Consequently, the application of other import duties and taxes by Mauritania (Section 3.1.4), including the data-processing fee and the statistical fee, poses a problem of compliance with commitments with respect to the goods for which these duties and taxes have been bound at zero.

Table 3.7 Number of lines with applied rates higher than the bound ratesNumber of ten-digit lines

Total 621Agriculture 7 Dairy products 4 Cereals and other preparations 1 Oilseeds, fats and oils 1 Beverages and tobacco 1Non-agricultural products 614 Fish and fishery products 23 Metals and minerals 47 Chemical products 6 Wood, paper, etc. 2 Textiles 41 Clothing 154 Leather, footwear, etc. 22 Non-electrical machinery 123 Electrical machinery 160 Transport equipment 23 Other manufactured articles n.e.s. 8 Petroleum 5

Source: WTO Secretariat calculations based on data provided by the authorities and the WTO database.

3.1.3.3  Duty and tax concessions

3.1.  Exonerations and exemptions from import duties and taxes are still numerous and can be found in various laws and regulations. The granting procedure, which involves various ministries, and the monitoring of these special regimes contribute to a significant loss of public revenue (Box 1.1).

3.2.  Exemptions and exonerations can be classified in the following categories: exemptions granted to certain companies, in particular, the National Industrial and Mining Company (SNIM) and the Mauritanian Electricity Company (SOMELEC); exemptions granted under the Investment Code; aid and grants; diplomatic exemptions; special exemptions; and other exemptions and exonerations. They may be granted, in particular, under the various Finance Laws within the context of ratified international conventions, provisions of the Investment Code, the Mining Code (Section 4.4), bilateral agreements, or under agreements made with certain enterprises at the time of their establishment.

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3.3.  Various import procedures enable operators to escape general border taxation. Mauritania's new Customs Code provides for a number of customs procedures that make it possible to import goods with relief from customs duties and taxes, including consumption taxes as well as all other duties and taxes.0 These are: transit, customs warehousing, temporary admission (for inward and outward processing), processing under customs control (bonded factories), drawback and the free zone. Although there is provision for it in the new Code, the drawback procedure has not yet been employed.

3.4.  Goods under customs control or placed under some procedure that offers relief from duties, taxes or prohibitions must be covered by a bond-note comprising, apart from the detailed goods declaration, the joint and several undertaking of the principal obligor and his surety to fulfil, within the time-limits fixed and subject to the statutory penalties, the obligations for which the laws and regulations provide. If the goods are not prohibited, the surety guarantee may be replaced by the deposit of the duties and taxes. The undertakings given are cancelled and, where appropriate, the sums deposited are refunded on sight of the discharge certificate issued by customs attesting that the obligations have been fulfilled. However, the Director-General of Customs may, to prevent fraud and guarantee the export of certain goods, make the discharge of the bond-note subject to the production of a certificate, issued by the Mauritanian or foreign authorities, confirming that the goods in question have left the customs territory.

3.5.  Goods in transit from one customs office to another are exempt from duties and taxes. At entry, they must be declared in detail and verified under the same conditions as goods declared for consumption.

3.6.  The new Customs Code provides for the customs warehouse procedure, which enables goods to be stored for a specified period in premises subject to the approval and control of the customs administration. There are four categories of customs warehouse: public, special, private and industrial.0 In principle, warehousing suspends the application of duties, taxes and prohibitions as well as of any other economic, fiscal or customs measures to which imported goods are subject.

3.7.  For public warehouses, the maximum stay of the goods is fixed at six months (three times renewable). At the end of this period, goods stored in a public warehouse must be re-exported or, if they are not prohibited, subjected to import duties and taxes. However, failing re-exportation, the Director-General of Customs may authorize either the destruction of imported goods that have been damaged in the public warehouse, on condition that the duties and taxes payable on the remains of the destruction process are paid; or subject the goods, in the state in which they are presented to the customs administration, to the payment of duties and taxes. The surveillance of these warehouses by the customs administration and the procedures for allocating the related costs are determined by order of the Minister responsible for finance.

3.8.  Bonded factories are establishments under the permanent surveillance of the customs administration with a view to allowing the use or manufacture of products with total or partial relief from the duties and taxes payable. The bonded factory procedure is granted by a decree that establishes the regulations applicable and the obligations upon the operators.

3.9.  Temporary admission with total or partial relief from duties and taxes is granted for goods provisionally introduced into Mauritania with a view to being re-exported after processing or re-exported in the same state. If the goods are not re-exported or warehoused, the discharge of the temporary admission bond-note may exceptionally be authorized against payment of the duties and taxes in force on the date of registration of the notes in question.0

3.10.  Authorization for temporary admission is granted by the Minister responsible for finance on the favourable opinion of the Ministry responsible for industry. The Customs Code distinguishes between:

temporary admission for inward processing. The benefit of the inward processing procedure is granted by decision of the Director-General of Customs. The procedure is reserved for natural and legal persons who, cumulatively:

0 Articles 156 to 164 of the new Customs Code.0 Ibid., Articles 180 to 212.0 Ibid. Article 231.

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- have the installations and equipment necessary to work, manufacture or process imported raw materials or semi-finished products;

- have been active for at least two years; and- export at least 90% of the quantity produced.

temporary admission in the same state for, among other things, objects imported for repair, testing or experiment; for empty packaging to be re-exported empty or filled with domestic products; for packaging imported full and intended to be re-exported empty or filled with domestic products; for motor vehicles imported by tourists not engaged in any commercial activity; and for objects whose importation is individual and exceptional in nature and unlikely to become generalized; and

the special temporary admission of equipment imported by construction enterprises. The benefit of the procedure may be granted for one year and possibly renewed. In this case, duties are levied on a pro rata basis using the depreciated value.

3.11.  The new 2012 Investment Code provides for various incentive regimes comprising duty and tax concessions during the investment implementation period (Section 2.4.2).

3.1.3.4  Tariff preferences

3.1.  Under the Association Agreement with ECOWAS, total exemption from import duties and taxes is granted to ECOWAS-area products when they are deemed to be originating and accompanied by the required certificates of origin (Section 3.1.3.1). The Tariff Commission was established in February 2018 to deal with all matters linked with the effective implementation of the ECOWAS CET. No tariff preferences are granted to Morocco, Tunisia or Algeria.

3.1.4  Other duties and taxes (ODT) levied exclusively on imports

3.1.  A data-processing fee is charged at the rate of 3,000 old ouguiyas per declaration, whatever the customs procedure0, and all imports are subject to a 1% statistical fee. Moreover, consumption taxes (excise duties, see below) are levied exclusively at importation.

3.2.  Since 2011 a 1% culture and sports promotion tax (PCS) has been levied on the c.i.f. value of imports of products of HS chapters 21 to 98, with the exclusion of minibuses, medicinal products, and agricultural tools and equipment.

3.1.5  Internal taxes

3.1.5.1  Value added tax (VAT)

3.1.  Since its last TPR, Mauritania has increased the standard rate of VAT from 14% to 16% (2016 Finance Law). VAT has risen to 20% on petroleum products (in 2015) and to 16% on telephony (in 2018). VAT at 5% is applied to procurement by SOMELEC, including imports made under its programme contract.

3.2.  Pursuant to the General Tax Code (CGI) as revised in 2017, VAT is collected on operations relating to an economic activity (including industrial, commercial and craft activities) that constitute an importation, a delivery of goods or a provision of services, carried out for consideration on Mauritanian territory by a taxable person.0 All natural or legal persons who come under the regime for the taxation of actual industrial and commercial profits or non-commercial profits are automatically subject to VAT. Liability to the VAT regime becomes definitive, except where a business is sold or an activity ceases.

3.3.  Where domestic products are concerned, VAT is applied to the delivery prices of goods and services. VAT on imports is calculated on the c.i.f. value (customs value), plus import duties and taxes, including the tariff and, where appropriate, consumption tax. Traders collect VAT when they sell their goods. Other reforms were introduced in 2015 at the transfer price and undercapitalization level (Article 10.D of the 2017 CGI). Since its last review, Mauritania has also

0 Under the 2016 Finance Law, the rate of this tax is fixed at 1,000 old ouguiyas per manifest line with a minimum of 3,000 old ouguiyas per manifest.

0 Article 177.B of the CGI as revised in 2017. The General Tax Code revised in 2016 is available at: http://www.impots.gov.mr/sites/default/files/99-CGI-2016.pdf.

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revised the exemption regimes, including that relating to VAT on "essential" products. The products exempt from VAT are listed in Table 3.4.

Table 3.8 Exemptions from the normal VAT regimeVATa

1. Operations carried out by natural or legal persons relating to the flat-rate regime with respect to the industrial and commercial profits tax (BIC) and operations subject to the simplified tax regime under Article 28 of the 2016 CGI;

2. Medical acts, hospitalization costs and haemodialysis equipment and inputs;3. Sales made by administrative services or bodies, with the exception of public establishments of an

industrial and commercial nature;4. Repair and conversion operations relating to:

- aircraft intended for airline companies whose services to or from abroad account for at least 80% of all the services they operate;

- aircraft belonging to the national airline;- vessels for maritime navigation and vessels for international river navigation registered as such;

5. Sales to the airlines mentioned under item 4 of products to be incorporated in their aircraft;6. The sale of goods or products for supplying ships or aircraft of the airlines mentioned under item 4;7. Income from the composition and printing of newspapers and periodicals, excluding advertising

income, and sales of those same newspapers and periodicals;8. Operations having as their purpose the transfer of the ownership or usufruct of goodwill or a

customer base, subject to the formality of registration;9. Operations carried out by insurance and reinsurance companies or other insurers, whatever the

nature of the risks insured, and which are subject to the single insurance tax;10. Operations carried out by banking institutions, finance institutions and credit agencies subject to the

tax on the provision of services;11. Air transport to foreign destinations and ticketing operations carried out by travel agencies in

connection with air transport;12. Transport operations carried out by public passenger or freight carriers enrolled in the business

register in that capacity and possessing the regulatory authorizations;13. Sales to shipping companies and professional fishermen of products to be incorporated in the

vessels, together with gear and nets for sea fishing;14. The following goods:

a. bread and bakery products and pastry;b. vegetables, meat, fish, shellfish and crustaceans, provided that these foods are fresh or dried,

salted or smoked;c. seed potatoes, seeds, spores, fruits, bulbs, corms, tubers for sowing, crowns and rhizomes

dormant, in growth or in flower, other live plants and roots, including cuttings and slips, and mushroom spawn (mycelium);

d. fresh fruit, normally intended to be eaten in the natural state, excluding kolas;e. ice;f. water and electricity supplied in quantities of 8 m3 and 150 kW/h per month and per consumer

(16 m3 and 300 kW/h per invoice if the latter covers two months), as well as public standpipes supplying low-income households;

g. domestic production of milk, pasta, couscous, flour and biscuits;15. The products and goods cited in Annex 1 to the 2016 CGI.

a Article 177 of the General Tax Code as revised in 2016. Source: Online information viewed at: http://www.impots.gov.mr/sites/default/files/99-CGI-2016.pdf.

3.4.  Exports of goods and services are subject to VAT at the zero rate, which means that VAT is refunded on inputs used in producing the goods and services concerned.0 In principle, to be eligible for a refund, exporters must have regularly carried out export operations and be in credit with respect to VAT by a minimum of 1 million old ouguiyas (US$2,860). According to the authorities, however, requests for the refunding of VAT are still rare in Mauritania, apparently due to the fear among businesses that such a request would trigger a tax investigation.

3.1.5.2  Minimum flat-rate tax (IMF)

3.1.  Imports (other than grants) are also subject to the payment of a minimum flat-rate tax (IMF), which is wholly deductible from the BIC (at the rate of 25%), being regarded as an advance payment on the latter. Since Mauritania's last TPR in 2011, the rate of this tax has remained at 2.5% of the turnover of the most recent closed financial year, with a minimum levy of 750,000 old ouguiyas (US$2,143); at importation, it is levied at the rate of 2.5% of the c.i.f. customs value. The IMF is also imposed on exports of pelagic fish at the rate of 2% of the value of the products exported (Section 4.1.2.3) and on mining products (Table 4.4).

0 Article 181 of the 2017 CGI.

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3.1.5.3  Consumption taxes (excise duties)

3.1.  Consumption taxes are applicable only at importation. Two of them are applied to petroleum products (Section 4.2.3.2). Specific consumption taxes are also levied on cement and concrete reinforcing bars. That on cement is 3,000 old ouguiyas (US$8.6) per tonne (Article 230 of the 2017 CGI), while that on concrete reinforcing bars, introduced in 2016 at 4,000 old ouguiyas (US$11.43) per tonne, was raised to 15,000 old ouguiyas per tonne in the 2018 CGI.0

3.2.  Consumption taxes are ad valorem on tea (20%) and lump and powdered sugar (7.5%). Since Mauritania's last review, some products have been affected by several successive increases. Article 227 bis of the 2015 Finance Law introduced an anti-cancer research tax of 7% of the c.i.f. value of tobacco products. The 2016 Finance Law introduced a consumption tax on poultry meat and edible offal (20%) and on yoghourt and other sweetened dairy products (15%) and raised that on tobacco to 40%, that on scratch-cards to 15%, and that on mineral water to 50%.0 Article 225 of the 2017 CGI introduced a consumption tax on alcoholic beverages (from 195% to 294% depending on the nature of the beverage).0 With the 2018 Finance Law, consumption taxes were raised to 60% for all tobacco including cigarettes, to 80% for mineral water, and to 60% on yoghourt and other sweetened dairy products, while a new 30% consumption tax was applied to pasta.0

3.3.  Consumption taxes are levied on the customs value plus import duties and taxes. In principle, every importer liable for consumption taxes must keep a journal showing the dates of the import declarations or the delivery dates, the quantities imported or received, and the dates and numbers of the receipts relating to the payments. The journal must be initialled by the Director-General of Customs or his representative.

3.4.  The revenue generated by customs duties more than doubled between 2011 and 2016, whereas that from VAT on imports increased to a lesser extent with a slight slowdown in 2015 (Table 3.5). As a proportion of total State revenue, that generated by import duties has increased since 2011, whereas that from VAT on imports decreased slightly between 2011 and 2016. There was also an increase in terms of value and as a proportion of the total for revenue linked with the excise duties and the tax on petroleum products. The revenue generated by the statistical tax remained stable during the period. Following a fall in 2012, revenue from pelagic fees increased, thanks to the granting of licences to foreigners.

Table 3.9 State revenue, 2011-2017(Billions of old ouguiyas and %)

2011 2012 2013 2014 2015 2016 2017 (January-July)

Total revenue and grants (including oil revenue)

324(100.0)

378(100.0)

510(100.0)

424(100.0)

460(100.0)

461(100.0)

281(100.0)

Tax receipts (excluding oil) 184(56.7)

251(66.2)

269(52.8)

280(66.1)

270(58.6)

285(61.8)

199(70.9)

Of which taxes on goods and services

100(31.0)

133(35.3)

136(26.8)

138(32.5)

131(28.4)

147(31.8)

99(35.1)

Domestic VAT 18(5.5)

45(11.8)

43(8.5)

40 (9.3) 45(9.7)

44(9.4)

25(8.9)

VAT on imports 47(14.5)

57(14.9)

59(11.5)

64(14.9)

60(12.9)

63(13.6)

40(14.1)

Of which VAT SNIM 12(3.7)

13(3.5)

8(1.5)

13(3.1)

n.a. n.a. n.a.

Turnover tax (SNIM) 30(9.3)

24(6.3)

23(4.6)

20(4.7)

7(1.6)

10(2.2)

16(5.7)

Tax on petroleum products 2(0.8)

3(0.8)

3(0.7)

4(0.8)

6(1.3)

12(2.6)

7(2.4)

Excise duties (tea, tobacco, sugar, cement)

1(0.4)

4(1.2)

6(1.1)

9(2.0)

10(2.3)

15(3.3)

8(3.0)

Other taxes (insurance, vehicles, airport)

2(0.6)

1(0.3)

2(0.4)

3(0.7)

3(0.7)

3(0.7)

3(1.0)

Taxes on international trade 22(6.9)

29(7.7)

32(6.3)

37(8.8)

39(8.4)

47(10.2)

31(10.9)

Imports 18(5.6)

24(6.2)

27(5.3)

32(7.5)

33(7.2)

41(9.0)

27(9.6)

0 Article 249 of the 2018 CGI.0 Article 230 of the 2017 CGI.0 The following products are exempt from the consumption tax on alcoholic beverages: medicinal

products containing alcohol, with the exception of mint alcohol; alcoholic beverages produced in Mauritania from alcohol already taxed in Mauritania; alcoholic beverages intended to be shipped outside Mauritania; and pure alcohol intended for the teaching or research laboratories of scientific and educational institutions.

0 Articles 226 and 230 of the 2018 CGI.

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2011 2012 2013 2014 2015 2016 2017 (January-July)

Statistical tax 4(1.3)

6(1.5)

5(1.0)

5(1.3)

6(1.2)

6(1.2)

4(1.3)

Other fiscal revenue 7(2.2)

5(1.3)

15(2.9)

7(1.6)

9(2.0)

9(1.9)

10(3.7)

Non-fiscal revenue 110(33.9)

99(26.2)

209(40.9)

117(27.7)

149(32.4)

134(29.0)

63(22.5)

Revenue from fishing 37(11.4)

9(2.3)

65(12.7)

36(8.4)

44(9.6)

59(12.7)

24(8.6)

Of which pelagic fees 14(4.3)

4(1.1)

9(1.7)

33(7.7)

21(4.5)

29(6.3)

15(5.4)

n.a. n.a. n.a. n.a. n.a. n.a. 3(0.6)

2(0.7)

Licences (foreigners) 14(4.3)

4(1.1)

9(1.7)

33(7.7)

21(4.5)

26(5.7)

13(4.7)

Mining revenue 10(3.0)

8(2.2)

7(1.4)

8(1.8)

6(1.3)

6(1.3)

4(1.4)

Dividends and dues from State-owned enterprises

33(10.1)

62(16.4)

50(9.8)

46(10.7)

14(3.1)

10(2.1)

9(3.1)

Grants 8(2.4)

7(1.9)

11(2.2)

2(0.5)

28(6.1)

31(6.8)

5(1.7)

Oil revenue (net) 23(7.1)

21 (5.7) 21(4.1)

24(5.7)

13(2.9)

11(2.4)

14(4.8)

n.a. Not available.Source: Information provided by the authorities.

3.1.6  Prohibitions, restrictions and import licences

3.1.  Since acceding to the WTO, Mauritania has not made any notification under the Import Licensing Agreement.0 According to the authorities, Mauritania is not currently applying any quantitative restriction on imports for economic purposes.

3.2.  For reasons of safety, health or religious morality, the importing of some products is prohibited. Under Article 157 of the new Customs Code the following goods are prohibited:

- animals and goods from contaminated countries, under the conditions envisaged in the legislation on health, veterinary and phytosanitary policy;

- narcotic drugs and psychotropic substances;

- arms, parts of arms and ammunition, with the exception of arms, parts of arms and ammunition intended for the national army or security forces; arms, ammunition, military uniforms and decorations may be imported only by the competent authorities;

- pornographic writings, printed matter, drawings, posters, engravings, paintings, photographs, negatives, moulds, reproductions and any object contrary to morality or such as to disturb public order;

- natural or manufactured products of foreign origin bearing directly on the products themselves or on the packaging a trademark or trade name, name, mark, label or decorative motif comprising a reproduction of national decorations, coats of arms or emblems such as to induce the mistaken belief that they were manufactured in Mauritania or are of Mauritanian origin.

3.3.  The Customs Code does not contain any prohibitions on imports of alcoholic beverages or pig meat. The importation of prohibited or restricted products may reportedly be authorized by a competent government authority. The importation of fishing boats is subject to the prior authorization of the Minister responsible for fisheries.0 A special regime continues to be applied to imports of petroleum products; the import authorizations are managed by the Ministry responsible for petroleum and energy (Section 4.2.3.1). Moreover, in Mauritania there are three lists of plants and plant products which are, in principle, prohibited from being imported or subject to

0 WTO document G/LIC/M/38 of 28 February 2014.0 Article 8 of the 2015 Fisheries Code. Viewed at: http://www.peches.gov.mr/IMG/pdf/code_peches_2015-

017_fr_version_finale_scannee.pdf.

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authorization (Section 3.3.3). Finally, a decree on the prohibition of plastic bags in Mauritania entered into force in January 2013.0

3.1.7  Anti-dumping, countervailing and safeguard measures

3.1.  Mauritania does not have any special legislation concerning anti-dumping, countervailing or safeguard measures. However, certain provisions concerning anti-dumping measures can be found in the Customs Code currently in force. Article 14 of the new Customs Code confers upon the President of the Republic the right to apply anti-dumping and countervailing measures by ordinance, if necessary. However, no measure of this kind has yet been applied.

3.1.8  Other measures affecting imports

3.1.  No agreement has been concluded with foreign governments or enterprises with a view to influencing the quantity or value of goods and services exported to Mauritania. Likewise, the authorities have no knowledge of any such agreement between Mauritanian and foreign enterprises.

3.2.  Mauritania does not maintain any local content requirements to gain advantages or provide incentives with a view to promoting the consumption or use of local goods and services (however, in the case of hydrocarbons see Section 4.2.2). Strategic stocks of petroleum are maintained through the Mauritanian Petroleum Products Storage Company (MEPP), the only institution authorized by the State for that purpose (Section 4.2.2.1). Where cereals are concerned, the Food Security Commission (CSA) is responsible for maintaining reserves equivalent to three months' consumption (Section 4.1). Mauritania participates in the international trade sanctions decided on by the United Nations Security Council or by the regional bodies in which it participates.

3.2  Measures directly affecting exports

3.2.1  Procedures and requirements

3.1.  Under the Customs Code, exports are subject to a "detailed declaration", which must be accompanied by a sanitary certificate and a certificate of origin, if the importing country so requires. The Ministry responsible for agriculture issues phytosanitary, sanitary or re-export certificates to exporters, on request. In the case of cattle exports, an exit authorization is also required.

3.2.  At the exporter's request, the Ministry of Trade will issue an export authorization mentioning the name of the buyer, the description of the product, the destination, the quantity and the value, for a fee of US$20-25 per authorization.

3.3.  According to the BCM, in most cases export earnings must be repatriated (Section 1.2).

3.2.2  Taxes, charges and levies

3.1.  Exports of all products are subject to the minimum flat-rate tax (IMF), at the rate of 2%, and to a 1% statistical charge.

3.2.  In the case of cattle exports, the exporters are understood to be subject to a municipal shipment tax (by order of the commune). Mauritanian legislation also provides for a fiscal export duty on the following products: 10% on hides, skins and leather of HS Chapter 41; 15% on ferrous waste and scrap. Since 2016, export duty has been payable on the customs value of fishery products (Section 4.1.2.3.4). Export duty is also charged on certain mining products pursuant to the Mining Code (Section 4.3.2). Mauritania applies VAT to exports at the zero rate (however, see Section 3.1.5.1).

3.2.3  Export prohibitions, licences and controls

3.1.  According to the authorities, Mauritania is not currently applying any prohibition or quantitative restriction on exports and does not require export licences. However, to export fishing

0 Decree No. 2012-157 of 21 June 2012 prohibiting the manufacture, importation, marketing and use of flexible plastic sacks and bags.

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boats it is necessary to obtain the prior authorization of the Minister responsible for fisheries.0 Moreover, in order to combat malnutrition and iodine deficiency, in 2008 the Government decided to prohibit the export of some species of fish, such as grey mullet, and to open sales outlets for fish in the hinterland.

3.2.4  Export subsidies and promotion

3.1.  In Mauritania, there is no special law on export promotion. However, the Customs Code has various procedures for importing goods with relief from duties and taxes with a view to encouraging exports, such as temporary admission or drawback (Section 3.1.3.3).

3.2.  The 2012 Investment Code provides for advantages conditional on export. Enterprises established in the free zones benefit from tax and customs concessions (Box 3.1 and Section 2.4.2). In agreement with the State, basic infrastructure can be installed by private businesses, individually or within the context of a public-private partnership. Concessions are assigned to free export enterprises at a rental rate fixed by joint decision of the supervisory Minister and the Minister of Finance, at the proposal of the authority responsible for the management of the free zone.

3.3.  Since its last TPR, Mauritania has set up a free zone under Law No. 2013/001 establishing the Nouadhibou free zone and its implementing regulations. A customs office has been installed to manage the free zone and the products eligible for the free zone regime.

3.4.  Mauritania has also made significant changes in its free point regime. This regime, introduced in the 2002 Investment Code and intended for wholly exporting enterprises, was abolished by the 2012 Investment Code. However, the customs and tax concessions granted to the enterprises that qualified for the regime remain valid up to the end of their specified period of validity.0

Box 3.3 Concessions granted to exporters

In the 2017 Customs CodeTemporary admission for inward processing proceduresRelief from duties and taxes granted for products intended for processing, working or further handling in the customs territory, with a view to being re-exported.

DrawbackImportation free of duties and taxes of products of the same kind as those used in the manufacture of previously exported goods; and the total or partial refund of customs duties and taxes on raw materials processed in Mauritania and re-exported.

In the 2012 Investment Code 2012Export free zones (ZFEs) (for enterprises that have invested at least 500 million old ouguiyas and created at least 50 permanent jobs in the free zones and show evidence of an export potential of at least 80%):

- are exempt from all taxes based on wages and staff costs, business tax, property tax on developed land, property tax on undeveloped land, and the licence fee. This exemption is replaced by a single communal tax which may not exceed an annual amount of 5 million ouguiyas;

- are subject to the industrial and commercial profits tax (BIC) under the ordinary law regime;- the customs concessions consist in total relief from import duties and taxes on capital goods,

equipment and utility vehicles intended for use in production (as listed in an order of the Minister of Finance); and in exemption from export duties and taxes.

Concessions granted on a case-by-case basisThese concessions are determined for a particular enterprise by order of the Ministry of Finance.

Source: Customs Code; Investment Code (2012).

3.2.5  Export financing, insurance and guarantees

3.1.  According to the authorities, Mauritania does not have any export financing and/or guarantee mechanism.

0 Article 8 of the 2015 Fisheries Code.0 Article 35 of the 2012 Investment Code.

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3.3  Measures relating to production and trade

3.3.1  Incentives

3.1.  In some cases the Government may grant subsidies to enterprises. These subsidies are decided in the Council of Ministers, then recorded in the Finance Law. Mauritania has not notified the WTO Committee on Subsidies and Countervailing Measures of any assistance programmes or measures.

3.2.  The new Investment Code adopted in 2012 instituted preferential regimes which grant tax and customs concessions for investment during the installation and operational phases (Section 2.4.2). It provides for concessions at exportation (Section 3.2.4) and under the development hubs regime (Section 2.4.2). The Mining Code also provides for a preferential customs and tax regime (Section 4.3).

3.3.  VAT refunds for investors are possible under certain conditions (Section 3.1.5.1). There is understood to be tax relief for promoting non-industrial fishing (Section 4.1.2.3.3).

3.3.2  Standards and other technical requirements

3.3.2.1  Standards, technical regulations, testing, certification and accreditation

3.1.  Mauritania has not made any notification under Article 15.2 of the WTO TBT Agreement. At the end of March 2018, there was no national enquiry point for TBTs in place. Mauritania has experienced difficulties in implementing its legislation relating to the standardization, certification and accreditation process. Despite the adoption of a law in 2010, the regulatory framework for standardization, certification and accreditation remains weak in the absence of implementing decrees. The accreditation system envisaged for 2013 is not yet operational.

3.2.  The legislation on standardization and quality promotion has not changed since Mauritania's last TPR in 2011. Under Article 2 of Law No. 2010-003 of 14 January 2010, standardization, certification and accreditation activities are coordinated and monitored by the Minister responsible for industry. Since 2011, the following measures, among others, have been adopted:

Decree No. 198/2014 of 14 October 2014 amending the Ministry's organization chart in order to strengthen the powers of the Standardization and Quality Promotion Directorate (DNPQ)0; and

the national quality policy, on 8 May 2016.

3.3.  The national standardization, metrology and quality promotion system consists of the following bodies:

the National Standardization and Quality Promotion Council, responsible, in particular, for helping the Government to define national policy in the field and to give its opinion on any strategic question relating to these areas;

the Mauritanian Accreditation Committee, responsible for giving its opinion on accreditation requests from certification bodies;

the National Standardization and Metrology Office, which is not yet operational; and

the national technical committees: the Agri-Food Standards Committee, which existed at the time of Mauritania's last TPR in 2011; and other committees established since then, namely, the Committee on Rice and Wheat established by prime-ministerial order in 2016, the Electrotechnical Committee, the Anti-Corruption Committee, the Construction Committee (with a technical regulation on cement), and the Chemistry Committee, which also deals with mineral water.

3.4.  The initiative for drafting a new standard may come from any operator or international institution. All the bodies interested in the preparation of a standard may submit their proposals,

0 See website at: http://www.dnpq.mr.

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together with the necessary supporting documents, to the DNPQ. The decision may be based on economic (importance of the sector for imports or exports, risks for the individual) or non-economic criteria. A standardization programme is drawn up each year. The technical committee competent for the area concerned prepares a draft standard which undergoes a two-month public consultation stage; and letters are also sent to the bodies concerned for comment. The secretariat of the committee in question finalizes and adopts the standard, which is then published by the DNPQ.

3.5.  The standard is made compulsory by order of the Minister responsible for industry, if it concerns health, the environment, or following a reasoned request. The order is published in the Official Journal. Changes in technical regulations are published in the Official Journal and copies are distributed among the interested public bodies. Since 2010 there have been a dozen technical regulations covering food products (in particular, edible oils and wheat flour) and mineral water. Provisions adopted by other national institutions have also introduced other technical regulations. In practice, it would seem that for reasons such as safety and health, international standards (including those of the Codex Alimentarius) are likely to be required for certain imports.

3.6.  According to the National Strategy for Accelerated Growth and Shared Prosperity (SCAPP) report, where the analytical and testing laboratory and conformity control infrastructure is concerned, there is still a lack of equipment and qualified human resources as well as funding, with performance often dependent on external support. The DNPQ has a national metrology laboratory, which takes a quality approach, and a legal metrology laboratory.

3.7.  The inspections are mainly focused on the hygienic condition and safety of food (including fishery) products, medicinal products and other mass consumables, including hydrocarbons. These inspections are intended to guarantee the quality of the products, protect the public, and ensure healthy competition on the domestic market by suppressing bad commercial practices, while conforming to the commitments made under the WTO Agreements on Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary Measures (SPS). However, the quality control facilities are modest and controls are rare, with Mauritania accepting conformity certificates issued by recognized foreign bodies.

3.8.  Fishery products constitute an exception. Controls, through inspections and analyses, are carried out on all fishing activities. The laboratory of the National Office for the Sanitary Inspection of Fishery and Aquaculture Products (ONISPA) has been accredited to international requirements since March 2013 for purposes of analysis and testing (Section 4.1.2.3.3). It appears that cattle also undergo veterinary inspection at border posts and in the ports (Section 3.3.3).

3.9.  Mauritania does not yet have a national accreditation system. It is a member of the Arab Accreditation Council with Iraq, for calibration purposes. Mauritania has signed cooperation agreements with Tunisia and Algeria, Senegal and Sudan for the purpose of making joint assessments.

3.3.2.2  Packaging, labelling and marking

3.1.  Mandatory labelling requirements apply to a number of goods, such as food products, cigarettes, and matches. The labelling must always be in French and/or Arabic. In the case of food products, labelling must indicate the nature of the product, the ingredients and the quantity, as well as the place of production and the use-by date. In addition, according to Decree No. 2009-102 of 6 April 2009 regulating veterinary pharmacy in Mauritania, the packaging of medicated feedstuffs for animals must necessarily bear a label indicating their full composition, as well as their date of manufacture and use-by date.

3.3.3  Sanitary and phytosanitary measures

3.1.  Mauritania has not notified the WTO of any sanitary or phytosanitary (SPS) measures. Within the framework of its transparency obligations under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures, Mauritania has notified the Foreign Trade Protection Directorate as its national enquiry point for the WTO and has designated the Director of Livestock and Agriculture as the authority responsible for WTO notification procedures.0

0 WTO documents G/SPS/ENQ/26 of 11 March 2011; and G/SPS/NNA/16 of 11 March 2011.

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3.2.  Mauritania acceded to the FAO's International Plant Protection Convention (IPPC) on 29 April 2002.0 It is also a member of the World Organisation for Animal Health (OIE) and of the FAO/WHO Codex Alimentarius Commission. In particular, the OIE has carried out a veterinary legislation mission with the Veterinary Services Directorate; launched the PVS Pathway for effective veterinary services; and prepared the Gap Analysis report in 2010; however, the relevant reports have not been made public.0 In 2011, Mauritania also benefited from a mission to support the organization of a donors' round table.0

3.3.  Sanitary and phytosanitary control is characterized by the presence of different services without any real coordination. These are, in particular, the Ministry responsible for health, for hygiene and food safety; the Ministry responsible for fisheries, for fishery product quality control carried out through the Fishery Product Promotion Directorate (DPPP); and the Ministry responsible for rural development and the environment, for phytosanitary and animal health controls carried out, respectively, by the Agriculture Directorate and by the Directorate responsible for livestock. Despite the diversity of the participants, effective food quality and hygiene control is still limited.

3.4.  Sanitary and phytosanitary inspection fees, the method of collection and the processing charges will have to be determined jointly by the Ministry responsible for agriculture and that responsible for finance. A draft Decree for setting the amounts of the sanitary and phytosanitary inspection fees is in preparation. Law No. 042 of 26 July 2000 defines the rules governing the protection of plant species and their products. Under the terms of this law, the importation into Mauritania of plant species, their products, soil, compost, and packaging used for transporting them is subject to the production of a phytosanitary certificate issued by the country of origin.

3.5.  In 2002, the Ministry responsible for agriculture published three different lists indicating the plant species, their products and the other products whose importation is, respectively, prohibited, subject to prior authorization or subject only to the production of a phytosanitary certificate. According to the authorities, these three lists, included in Mauritania's last TPR, are not being applied.0

3.6.  The equivalent legislation for sanitary measures dates from the 1960s. The Livestock Code in force was adopted in 2004. According to the authorities, the OIE is currently helping Mauritania to modernize its livestock code. The importation of certain animals is understood to be subject to prior authorization from the Ministry responsible for livestock. However, a list of these animals is not available.

3.7.  The sanitary inspection and safety of animal products intended for human consumption continue to be regulated by a decree dating from 1965.0 Surveillance of the premises, sanitary control of the animals, and sanitary inspection of the safety of the products are mandatory but are carried out only when a duly accredited member of the veterinary services resides in the vicinity of the abattoir or slaughter yard.

3.8.  The import and export of animals and animal products are regulated by Decree No. 65.087 of 19 May 1965, which stipulates that all imported animals must be accompanied by a sanitary certificate not more than one month old. This certificate must stipulate that the animals are free of certain diseases and have been vaccinated against epidemics prevalent in the exporting country (Table 3.6).

Table 3.10 Sanitary requirements at importation and exportation Product Requirements relating to diseasesBovine animals (Europe, America, Asia) Free of tuberculosis, brucellosis, vaccinated against

foot-and-mouth disease less than two months previouslyBovine animals (Africa, Asia) Vaccinated against rinderpest (cattle plague) more than

15 days and less than 1 year previouslySheep and goats Free of brucellosis

0 Online information viewed at: http://www.fao.org/legal/traites/traites-en-vertu-de-larticle-xiv/fr.0 Online information viewed at: http://www.oie.int/fr/appui-aux-membres-de-loie/analyse-des-ecarts-pvs/

rapports-devaluation-danalyse-des-ecarts-pvs-de-loie.0 Online information viewed at:

http://www.fao.org/fileadmin/user_upload/remesa/docs/REMESA/5%C3   per centA8me_r%C3%A9union/7_CPC_Rabat_Activit%C3%A9s_OIE.pdf.

0 WTO Trade Policy Review of Mauritania, Report by the Secretariat, 24 August 2011.0 Decree No. 65.153 of 19 October 1965.

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Product Requirements relating to diseasesEquine animals Free of glandersPoultry Raised under official veterinary surveillance, free of

contagious diseases affecting the species. Aviary birds of the Psittacidae family may not be imported into Mauritania without special authorization from the veterinary services

Swine Free of swine fever (classical and African) and foot-and-mouth disease

Carnivores, dogs and cats Valid international rabies vaccination certificate and certificate of good healthThe certificate of good health must have been made out less than three days before departure from the place of shipmentDogs less than three months old are exempt from the rabies vaccination certificate, but not from the certificate of good health; the same provisions apply to cats less than three months old

Dead poultry, eggs, dead game Certificate attesting to their origin and provenance from a region free from contagious diseases of the species

Sperm for artificial insemination Certificate from the official veterinary authorities providing information relating to the collection conditions and the identity and state of health of the donors, which must be free of venereal diseases

Prepared meat products, canned goods Certificate establishing their origin and attesting to their preparation in establishments under veterinary control

Source: Mauritanian authorities, Decree No. 65.087 of 19 May 1965 regulating the import and export of animals and animal products.

3.9.  The laboratory of the National Office for the Sanitary Inspection of Fishery and Aquaculture Products (ONISPA) has been accredited to international requirements for analysis and testing purposes since March 2013 (Section 4.1.2.3.3).

3.10.  Mauritania has no domestic regulations concerning GMOs. The authorities have indicated that they comply with the directives of the Permanent Interstate Committee for Drought Control in the Sahel (CILSS).

3.3.4  Competition policy and price control

3.3.4.1  Competition policy

3.1.  The Mauritanian distribution market is characterized by a small number of importers in an apparently oligopolistic position, reflecting the fact that only these private enterprises have the financial strength and control of trade channels needed to be able to operate profitably.

3.2.  Mauritania does not have any legislation dealing specifically with competition and price regulation. However, the 2000 Commercial Code as revised in 2015 includes in its Title V a section on the competition regime.0 This applies, in principle, to private and public enterprises and to all production, distribution and services activities, and makes no distinction between Mauritanian and foreign enterprises. Its provisions prohibit any concerted action, agreement, understanding or other combine intended to obstruct the determination of prices by the market; to restrict access to the market; to limit or control production, outlets and investment; or to divide up markets and/or sources of supply. Nor may an enterprise or group of enterprises take undue advantage of its dominant position in the domestic market or of the state of economic dependence upon it of any of its customers or suppliers. These provisions do not apply to practices resulting from a law or regulation, or where the persons engaging in such practices can show that these have the effect of ensuring economic and social progress.0 In this latter case, the enterprise must obtain a waiver from the Council of Ministers, which will determine its terms.

3.3.  The 2015 revision of the Code strengthened the provisions relating to free pricing and competition and those that apply in liquidation and bankruptcy situations.0 Natural persons who have participated in the devising, organization and implementation of anti-competitive practices

0 Law No. 2000-05 of 18 January 2000, Title V, "On competition and free pricing".0 According to Article 1 213, "any restriction on competition must be justified on grounds of general

interest and be proportionate to the ends pursued".

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are liable to imprisonment (for a term of one month up to two years) and/or a fine (varying in amount from 50,000 (US$143) to 800,000 old ouguiyas (US$2,286). Moreover, a maximum fine of 5% of the turnover in Mauritania is applicable to enterprises for offences relating to anti-competitive practices. If the offender is not an enterprise, the maximum is 3,000,000 old ouguiyas (US$8,571). In addition, any trader who, directly or indirectly, imposes on another reselling trader a minimum selling price for a good or service or a minimum profit margin will be liable to a fine of 100,000 to 200,000 old ouguiyas.

3.4.  A 2007 decree supplements and clarifies the competition-related provisions of the Commercial Code regarding aspects such as market organization and surveillance, sanctions, and the obligation to declare stocks of essentials (including rice, flour, sugar, milk, and oils).0 Consumer associations must be approved by the Ministry of the Interior, on the proposal of the Minister of Trade.0

3.5.  The surveillance of domestic commercial activity is the responsibility of the Directorate-General of Competition and Markets in the Ministry responsible for trade. A Market Surveillance Committee is supposed to be consulted by the Government in connection with the drafting of laws and regulations and to give its opinion to the Minister responsible for trade in connection with the investigation of complaints of non-compliance with the provisions of the Code relating to competition and anti-competitive practices (without the possibility of appeal). However, in March 2018 this committee did not exist. There are several regulatory authorities that oversee competition within their respective areas of competence, in particular, the Government Procurement Control Authority (Section 3.3.6), the Transport Regulatory Authority (Section 4.5.1); and the Multisectoral Regulatory Authority in the water, electricity, telecommunications and postal sectors (Section 4.5).

3.3.4.2  Price regulation

3.1.  In general, the Commercial Code (Article 1215) guarantees free pricing, except for products and services understood to be listed by decree. However, no decree of this kind appears to have been published. In monopoly situations or situations where there are persistent supply problems, or laws or regulations that restrict price competition, or excessive price hikes due to crisis situations or exceptional or abnormal circumstances, the Commercial Code allows for temporary measures to regulate prices. According to the authorities, price controls are in force only for petroleum products (Section 4.2.2.2), water and electricity (Sections 4.2.3 and 4.2.4), medicines (Section 4.4.4), motor vehicle insurance (Section 4.5.4), and bread. The Commercial Code also provides for the creation of a local price and consumer committee in each of the 53 mouqatâa (departments).

3.3.5  State trading, State-owned enterprises and privatization

3.1.  Mauritania has not made any notification to the WTO concerning State trading.0 However, several enterprises (mostly State-owned) continue to dominate international trade in Mauritania. Moreover, the State continues to hold majority stakes in several commercial enterprises, to which it accords various concessions in the form of tax relief or subsidies. The National Industrial and Mining Company (SNIM), which is 78% State-owned, is the main exporter of mining products. The Mauritanian State also has a majority holding in the SNIM's subsidiary, the Arab Iron and Steel Company (SAFA). The Mauritanian Fish Marketing Company (SMCP) has a monopoly on exports of several varieties of fish. The other State-owned enterprises involved in importing and exporting include, in particular, the Mauritanian Gas Company (SOMAGAZ) and the Central Procurement Agency for Medicines, Medical Equipment and Medical Consumables (CAMEC) (Table 3.7). Moreover, some new State-owned enterprises have appeared since 2010, such as the Digital Infrastructure Development Company, the Mauritanian Sugar and Sugar Products Company (COMASUD), and the Mauritanian Dairy Products Company.

0 Law No. 2015-032 abrogating, amending and supplementing certain provisions of Law No. 2000-05 of 18 January 2000 containing the Commercial Code.

0 Decree No. 2007-088/PM/MCAT establishing the list of products and goods subject to the monthly mandatory declaration of stocks and the conditions of that declaration.

0 Decree No. 2003-030 of 11 May 2003 establishing the conditions of approval of consumer associations.0 WTO document G/L/1196 and G/STR/18 of 9 November 2017.

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Table 3.11 Some State-owned enterprises with commercial activities, 2016

Status Field of activityState

holding(%)

Port autonome de Nouadhibou (PAN) EPIC Transport 100Port autonome de Nouakchott ou port de l'amitié (PANPA) EPIC Transport n.a.Société des bacs de Mauritanie (SBM) EPIC Transport 100Société pour le développement des infrastructures numériques SN Telecommunications 100Société nationale de développement rural (SONADER) EPIC Services n.a.Agence pour le développement de l'électrification rurale (ADER) Association Energy n.a.Société mauritanienne de produits laitiers SN Dairy products 100Agence nationale de l'aviation civile (ANAC) EPIC Transport 100Laboratoire national des travaux publics (LNTP) EPIC Services 100Société mauritanienne des postes (MAURIPOST) SN Telecommunications 100Société mauritanienne d'électricité (SOMELEC) SN Energy 100Société nationale des eaux (SNDE) SN Energy 100Sociétés nationales des puits et forages (SNPF) SN Energy 100Sté nationale des aménagements agricoles et travaux SN Agriculture 100Centrale d'achat de médicaments essentiels, matériels et consommation de médicaments (CAMEC)

SN Health 100

Société mauritanienne des transports publics SN Transport n.a.Société nationale ISKAN (ANAT SOCOGIM) SN Finance 100Chinguetty Bank (Ch BANK) SEM Finance 28.58Société des Chantiers Navals de Mauritanie SN Shipyards 100Compagnie mauritanienne de sucre et dérivés (COMASUD) SEM Sugar 79.14Société des aéroports de Mauritanie SEM Airports 66Société des abattoirs de Nouakchott (SAN) SEM Livestock 70.60Société mauritanienne pour la commercialisation du poisson (SMPC)

SEM Fishing 70

Société mauritanienne de télécommunications (MAURITEL) SEM Telecommunications 46Société nationale d'importation et d'exportation (SONIMEX) SEM Services 63Société mauritanienne de gaz (SOMAGAZ) SEM Energy 34Société mauritanienne des hydrocarbures (SMH) SEM Energy n.a.Mauritanian Airlines International SEM Transport 51.64Société nationale industrielle et minière (SNIM) SEM Transport 78.35Société arabe de fer et d'acier (SAFA) SEM Mines 58.90Société arabe mauritanienne de manutention d'acconage SEM Port services 40.90

n.a. Not available.Note SN: national company; SEM: semi-public company; EPIC: industrial and commercial public

establishment.Source: Ministry of Finance; Directorate-General of State Lands and Assets; and Mauritanian Financial

Supervision Directorate.

3.2.  In 2016, faced with the decline in budget revenue following the fall in the prices of raw materials, the Government undertook reforms and restructuring in several large State-owned enterprises, namely, the National Import-Export Company (SONIMEX); the National Road Maintenance Enterprise; the Mauritanian Gas Company (SOMAGAZ); the National Water Company (SNDE); and Mauritanian Television. The Mauritanian State had entrusted SONIMEX, in liquidation since January 2018, with the sale of basic food products (sugar, rice, tea) to low-income households at affordable prices throughout the national territory. SONIMEX was a State commercial enterprise created in 1966 with the Mauritanian State holding 51% of the capital. It was required to maintain food security stocks equivalent to three months' consumption. The Food Security Commission (CSA) is henceforth responsible for managing these security stocks.0

3.3.  The purpose of a new law on public-private partnership (PPP), adopted in February 2017, is to define the legal regime and the institutional framework for PPP contracts in Mauritania.0 This law applies to all sectors of economic and social life in Mauritania subject to the provisions applicable to the Nouadhibou free zone and to already regulated authorizations, agreements, licences and contracts in the following sectors: the mining sector; the crude hydrocarbons sector; and the telecommunications sector, which remain governed by, in the case of the free zone, its own

0 Online information viewed at: http://www.csa.gov.mr.0 Law No. 2017-006 of 1 February 2017 relating to public-private partnership (PPP).

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legislation and, in the case of the aforementioned sectors, their sectoral legislation. The institutional framework includes an interministerial committee, under the Prime Minister, a technical support committee and a PPP unit under the Minister responsible for the economy.

3.3.6   Government procurement

3.1.  Mauritania is not a member of the WTO plurilateral Agreement on Government Procurement nor is it an observer. In 2010, a new Government Procurement Code was enacted to regulate the system for awarding public contracts.0 Several implementing texts have been adopted to this end (Table 3.8).

Table 3.12 Government procurement legislation, 2018Legislation introduced since 2010 Date

LawLaw No. 2010-044 of 22 July 2010 containing the Government Procurement Code 2010

DecreesDecree No. 2011-111 of 8 May 2011 on the organization and functioning of the Government Procurement Regulatory Authority

2011

Decree No. 2011-178 of 7 July 2011 on the organization and functioning of procurement bodies 2011Decree No. 2012-082 of 4 April 2012 amending certain provisions of Decree No. 2011-178 of 7 July 2011 on the organization and functioning of procurement bodies

2012

Decree No. 2011-179/PM of 7 July 2011 on the organization and functioning of the National Government Procurement Control Board

2011

Decree No. 2012-083 of 4 April 2012 amending certain provisions of Decree No. 2011-179/PM of 7 July 2011 on the organization and functioning of the National Government Procurement Control Board

2012

Decree No. 2011-180 of 7 July 2011 on the application of certain provisions of Law No. 2010-044 of 22 July 2010 containing the Government Procurement Code

2011

Decree No. 2012-084 of 4 April 2012 amending certain provisions of Decree No. 2011-180 of 7 July 2011 on the application of certain provisions of Law No. 2010-044 of 22 July 2010 containing the Government Procurement Code

2012

OrdersOrder No. 211 of 14 February 2012 on the competence thresholds of procurement and procurement monitoring bodies and the membership of procurement committees

2012

Order No. 718 of 3 April 2012 amending certain provisions of Order No. 211 61 of 14 February 2012 on the application of certain provisions of Law No. 2010-044 of 22 July 2010 containing the Government Procurement Code and its implementing decrees

2012

Order No. 213 of 15 February 2012 clarifying certain transitional provisions of Law No. 2010-044 of 22 July 2010 containing the Government Procurement Code

2012

Order No. 729 of 8 April 2012 establishing the list of public entities with special procurement bodies

2012

Order No. 829 supplementing Order No. 729 of 8 April 2012, as amended, establishing the list of public entities with special government procurement bodies

2012

Order No. 844 of 3 May 2012 establishing the procedures for appointing the Chairman and members of the special government procurement bodies

2012

Order No. 903 of 10 May 2012 establishing the competence threshold of the government procurement body of the National Import-Export Company (SONIMEX)

2012

Order No. 1868/MF of 30 September 2013 establishing the procedures for the collection of the proceeds of the sale of tender dossiers and the levying and remittance of certain resources of the Government Procurement Regulatory Authority

2013

Source: Compendium of texts relating to the government procurement system published by the Government Procurement Regulatory Authority in October 2012.

3.2.  The framework put in place by the new law envisages several institutions with responsibility for awarding, monitoring and regulating government procurement:

the Procurement Committee at contracting authority level;

the National Government Procurement Control Board (CNCMP); and

the Government Procurement Regulatory Authority (ARMP).

0 Law No. 2010-044 of 22 October 2010 containing the Government Procurement Code.

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3.3.  The Code applies to public contracts awarded by the State, administrative public establishments, decentralized regional and local authorities, industrial and commercial public establishments, other bodies, agencies or offices, national or State-owned companies or an association formed by one or more of these legal persons under public law with a view to the execution of public works and the supply of goods and services. Contracts with outside financing are subject to the Government Procurement Code, insofar as the latter is not contrary to the provisions of international financing treaties and agreements. The provisions of the law in question apply to public contracts whose estimated value, all taxes included, is equal to the contract awarding thresholds as defined by prime-ministerial order.

3.4.  A Procurement Committee, set up within each contracting authority and chaired by the person responsible for public contracts, is charged with the planning, awarding and monitoring of government procurement. It may be appointed to manage the procurement procedures of several contracting authorities, in accordance with the terms of the relevant regulations. When the contract is financed from outside resources, the donor(s)' representatives are authorized to attend the assessment and award meetings, if their procedures so permit. The Procurement Committee entrusts an analysis sub-committee with the assessment and classification of applications and bids in accordance with the relevant regulations. The threshold of competence of the procurement committees is fixed at 10 million old ouguiyas (US$28,570).0 The threshold is raised to 50 million old ouguiyas for the following institutions: the Food Security Committee (CSA), the Agency for the Promotion of Universal Access to Services, SOMELEC, the National Road Maintenance Enterprise and the SNDE.

3.5.  The National Government Procurement Control Board (CNCMP) is placed under the supervision of the Prime Minister. Regional government procurement control boards may be established by regulation. They provide for the prior and post facto control of the contract award and performance procedures implemented by the contracting authorities in accordance with a threshold determined by prime-ministerial order. The CNCMP is responsible for the prior control of all contracts with a threshold in excess of 100 million old ouguiyas for supply contracts and 200 million old ouguiyas for works contracts.0 In addition, the CNCMP exercises prior control over all contracts awarded under exceptional procedures (direct negotiation and restricted tender).

3.6.  A Government Procurement Regulatory Authority (ARMP) has been set up in the form of an independent and tripartite administrative authority (public sector, private sector, civil society) with legal personality and autonomous administrative and financial management. The ARMP is comprised of: a Regulatory Council, an Audits and Inquiries Committee, a Dispute Settlement Board, a Disciplinary Board and a Directorate-General. The Regulatory Council is the supreme body which brings together all the members of the ARMP. The Dispute Settlement Board is tasked with ruling on disputes. The composition of this Board is tripartite: its members are appointed on the proposal of, respectively, the Government, the private sector and civil society. The ARMP initiates independent post facto audits of the conformity of the awarding and performance of public contracts for each budget year. The resulting summary report is transmitted to the competent authorities for consideration.

3.7.  As methods of awarding public contracts, the Code provides for: open invitations to tender; restricted invitations to tender; two-stage invitations to tender; and, exceptionally, contracts after simplified consultation and direct negotiation (private contract). In principle, the invitation to tender is the default procedure in government procurement. An open invitation to tender may be preceded by a pre-qualification stage in the case of important or complex works or equipment or specialized services. Restricted invitations to tender may only be envisaged if the contract requirements can only be met by a particular group of suppliers and must be preceded by an open call for expressions of interest. Two-stage invitations to tender may also be used to formulate detailed specifications.

3.8.  The simplified consultation procedure involves arranging a competition, with a reduced technical dossier, between a limited number of providers (at least three). This method is suitable for simple services or low-value products widely available in trade and amounts below the procurement threshold defined in Article 5 of the Code. Simplified consultation contracts are awarded only in the following cases: lack of acceptable bids; unforeseeable circumstances and cases of force majeure; urgent performance in place of defaulting contract holders; performance for purposes of research, testing, experimentation or adjustment; and the impossibility of dissociating the supplies, services or works from the initial contract. The cases of directly

0 Article 5 of Law No. 2010-044 of 22 July 2010 containing the Government Procurement Code.0 Ibid., Articles 11 and 12.

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negotiated contracts must be limited to situations of verified legal or de facto monopoly, exceptional circumstances when responding to natural disasters, and to cases in which the circumstances require that the performance of the services be kept secret. Contracts for intellectual services are awarded after consultation, with the establishment of a restricted list and the submission of proposals, in accordance with the provisions of Article 29 of the Code.

3.9.  To prevent abuse of the possibility of splitting up the expenditure, the Code supports framework agreements and indefinite-quantity contracts. Framework agreements are recommended when it is not possible to predict, at the beginning of the year, the exact amount of the purchases, or if the orders exceed the storage capacity. A minimum and a maximum threshold, in value terms, for the supplies that could be ordered in the course of a period of not more than one year are fixed. Indefinite-quantity contracts differ from framework agreements in that the contracting authority undertakes to entrust to the chosen supplier, for a period of not more than one year, the provision of all or part of the specified services without fixing the quantity or value. The procedure is the same in both cases and consists in fixing, after an invitation to tender, the unit prices of the deliveries, which will be spread out over time as the contracting authority places its orders, in accordance with its needs.

3.10.  Open invitations to tender are announced by inserting a notice in the Official Procurement Bulletin or any national and/or international publication, for 30 days in the case of local and 45 days in the case of international invitations to tender, as well as electronically.0 In order to be able to participate in a tender procedure, an enterprise must be installed in Mauritania and enrolled in the Commercial Register.0 However, this provision may be waived in the case of international invitations to tender when the works, supplies or services cannot be provided by enterprises installed in Mauritania. In addition to informing the chosen candidate in writing, the contracting authority must inform the other bidders of the rejection of their bids and refund their provisional deposits.

3.11.  The legislation provides for the possibility of according preferential treatment to national enterprises on condition that their bids are equivalent in quality to those of the foreign bidders. The preferential margin is 15% of the amount of the bids in the case of building works and national public works, where the cost of producing the manufactured goods includes at least 30% of value added in Mauritania, or where at least 30% of national inputs is used or at least 70% of the personnel are Mauritanians. For consultancy bureaux and design offices, the preferential margin is fixed at 10% if the enterprises bid as a group with foreign consultancies and if their participation amounts to at least 30% of the study.

3.12.  The CNCMP's statistics indicate the predominance of invitations to tender from 2012 to 2016, as was already the case at the time of Mauritania's last TPR. However, there has generally been a tendency for the share of procurement by invitation to tender to decline since 2014 (Table 3.9). The annual audits carried out by the ARMP show that most of the criteria employed in connection with the awarding and performance of contracts are not respected. According to the audit for 2014, 12% of authorities awarded contracts which had (i) not been previously included in a forward plan; (ii) not been submitted for assessment by the CNCMP; or (iii) not been published in a national newspaper. The audit also noted, in 56% of cases, exceeding of the time-limits for the assessment of bids by the analysis sub-committees and, for 65% of the contracts awarded, non-compliance with the contractual time-limits for the delivery of supplies, the provision of intellectual services and the execution of the works. A dozen of the contracts awarded by direct negotiation had not received prior authorization from the CNCMP.

Table 3.13 Government procurement contracts, by award procedure, in numbers and share of the total, 2012-2016

2012 2013 2014 2015 2016Invitations to tender 348 (87%) 543 (98%) 540 (95%) 437 (71%) 376 (57%)Direct negotiation 33 (13%) 26 (2%) 118 (5%) 34 (7%) 49 (40%)Supplementary agreementa n.a. n.a. n.a. 32 (22%) 25 (3%)Total 381 (100%) 569 (100%) 658 (100%) 503 (100%) 450 (100%)( ) The share of the total is shown in parentheses.n.a. Not available.

0 International invitations to tender are also published in the international press. National invitations to tender are published only in the local press.

0 Subject to contrary provisions contained in international agreements.

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a Modifying one or more terms of the initial contract.Source: Statistics provided by the Mauritanian authorities.

3.3.7  Intellectual property rights

3.1.  Mauritania is a member of the World Intellectual Property Organization (WIPO) and of the African Intellectual Property Organization (OAPI), created by the Bangui Agreement (1977) and revised by the Bangui Act (1999). It is also party to the Paris Convention for the Protection of Industrial Property, to the Berne Convention for the Protection of Literary and Artistic Works, to the Patent Cooperation Treaty, and to the Stockholm Convention on Persistent Organic Pollutants ratified in 2004. Mauritania ratified the new Act revising the Bangui Agreement in December 2015.

3.2.  The Mauritanian service responsible for relations with WIPO and the OAPI is the Technology and Industrial Property Service of the Ministry responsible for industry. In Mauritania, industrial property rights are managed by the national service for liaison (SNL) between Mauritania and the OAPI, which receives applications for registration in Mauritania and passes them on to the OAPI. Statistics on the depositing of applications with the OAPI by the SNL are said to be available in the OAPI's annual report.0

3.3.  Mauritania has not yet notified the WTO of its legislation on intellectual property rights. It has not ratified the Protocol Amending the TRIPS Agreement. Nor has it designated a contact point under Article 69 of the TRIPS Agreement.

3.4.  Copyright and related rights are managed by Ministry responsible for culture. In Mauritania, the legislative and regulatory framework for copyright underwent substantial reform with the adoption of Law No. 2012-038 of 17 July 2012 on literary and artistic property. However, the implementing texts have not yet been adopted.

3.5.  The provisions of the 2012 Law guarantee protection of the rights of the author of literary or artistic works, of the performer, of the phonogram or video producer, and of radio or television broadcasting organizations. The areas covered include literary and artistic works, including computer programs and orally expressed works; theatrical works; musical works; cinematographic works; plastic and applied art works; works of architecture and technical works; graphical or typographical works; photographic works; works inspired by folklore; and the creations of clothing, fashion and adornment designers.

3.6.  The following are also protected as works; translations, adaptations, music arrangements and other original transformations of literary or artistic works; compendiums and anthologies of works, collections of works forming part of the traditional cultural heritage and databases. Protection is conferred on the author of derived works without prejudice to the rights of the authors of the originals.

3.7.  The 2012 Law stipulates that the non-pecuniary rights enjoyed by the author cannot be renounced and are inalienable and indefeasible. However, they are transferable by succession or by will. Pecuniary rights are protected for the benefit of the author during his lifetime and for 70 years after his death, for the benefit of the persons so entitled. The legislation also confers on the author the right to publish his work, under his own name or a pseudonym. He may confer this right on a third party. The author's pecuniary rights are assignable against consideration or free of charge. The assignment of these rights must be agreed by written contract and may be total or partial. The term of protection of copyright and related rights is 70 years.

3.8.  The new law led to the formation of a Copyright and Related Rights Unit in the Ministry of Culture charged with the legal protection of these rights. Order No. 647 of 15 April 2015 establishes its functions and its organizational and operational procedures. The Unit is authorized collectively to represent the authors, their heirs and other owners of rights with a view to acting as an intermediary with the users, for authorizing the legal exploitation of the works and performances and collecting the relevant fees and distributing them among the beneficiaries. It is required to protect the rights of domestic authors or any other domestic right-holder, and of foreign authors or any other foreign right-holder, whether or not resident in Mauritania. It is also responsible for protecting works in the public domain and works of the traditional cultural heritage.

0 Online information viewed at: http://www.oapi.int.

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3.9.  Infringements of copyright are subject to civil sanctions such as the payment of damages and interest, the suspension of any manufacturing that takes place in the course of the unlawful reproduction of the work and the seizure of counterfeit media and any equipment used in manufacturing them. Infringements of copyright and related rights are established by the police or sworn officials of the Copyright and Related Rights Unit, who are also authorized to make seizures, provided that they are placed under the custody of the Unit. Sanctions, however, are the responsibility of the courts.

3.10.  Criminal sanctions may be ordered, in the form of a term of imprisonment of six months to three years or a fine ranging from 1 million to 2 million old ouguiyas, regardless of whether publication took place in Mauritania or abroad. In the case of a repeat offence, the penalty for which the law provides is doubled.

3.11.  Since its creation, the Copyright and Related Rights Unit has made the regional delegates of the Ministry of Culture responsible for awareness-raising by explaining the usefulness of intellectual property protection as a vehicle for development and for combating piracy. The implantation of the Unit in all the wilayas, with limited resources, has made it possible to speed up awareness-raising which, according to the authorities, has led to a significant improvement in respect for these rights.

3.12.  The offences most commonly recorded in Mauritania where intellectual property rights are concerned are counterfeiting and forgery. They relate to trademarks, copyright and related rights and affect, among other things, books, textiles, cosmetic and food products, medicines, video and audio cassettes, and mobile phones. Most of these articles appear to be imported. Weak implementation of the legislation seems to be the main reason for the infringement of intellectual property rights.

3.13.  According to the authorities, the basic problems encountered are linked with raising awareness of these issues among the public and the players. There are very few cases of copyright holders seeking redress in Mauritania because copyright is still very poorly understood.

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4  TRADE POLICIES BY SECTOR

4.1  Agriculture

4.1.1   Overview

4.1.  Mauritania's land is mostly desert (0.5% is arable), and suffers from an increasing rainfall shortage, lack of investment and rural exodus. The total area farmed was in the order of 240,000 hectares in 2017, i.e. less than half its potential of 500,000 hectares, with only 46,000 of the irrigable 135,000 hectares actually irrigated.0 There is a chronic shortfall in food crops and 70% of staple food needs are imported with sizeable budget subsidies (see below). Greater competition on the import side would seem a priority in order to bring down high food costs. Mauritania continued to be hit by sharp rises in its food import bill in 2010-2011 and again in 2016 and 2018.0 On the other hand, the coverage rate for rice, dates and vegetables improved significantly in 2017 as a result of government efforts in terms of infrastructure for processing, storage etc. The other types of agricultural production do not appear to have grown faster than the population over the period 2008-2016 (Chart 4.1).

Chart 4.10 Output of main agricultural products(Annual growth rate, 2008-2016 (%))

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Dried

bea

ns

Date

s

Maize

(cor

n)

Dry

peas

Pulse

s n.

e.s

Padd

y ric

e

Sorg

hum

Cam

elid

mea

t

Bovin

e m

eat

Chick

en

Goat

mea

t

Shee

p m

eat

Cam

el m

eat

Cow

milk

Goat

milk

Shee

p m

ilk

Hen

eggs

in sh

ell

Production Population

Agricultural crops

Domestic meat Whole fresh milk

Source: FAOSTAT. Viewed at: http://faostat3.fao.org/home/E (database accessed in November 2017).

4.2.  The Ministry of Agriculture is responsible for regulating agriculture and the Ministry of Livestock for livestock farming (Section 4.2.5 below); animal products and crops are the main agri-food products. The share of expenditure of the Ministries responsible for agriculture, livestock, fisheries and other matters related to food security amounts to 1.3% of total government expenditure (excluding debt interest). The stated priority goal of agricultural policy is to increase domestic production so as to better ensure the low-income population's food security, and cut the import bill.

4.3.  A multitude of plans, projects and programmes to develop agricultural and livestock production have been drawn up over the past decade, in particular with Mauritania's development partners, including in connection with the Poverty Reduction Strategy Paper (PRSP):

0 Ministry of the Economy and Finance (2016), Stratégie nationale de croissance accélérée et de prospérité partagée (SCAPP) 2016-2030, August 2016.

0 Online information viewed at: http://afrique360.com/2016/01/18/mauritanie-hausse-vertigineuse-des-prix-des-denrees-alimentaires; http://mauriweb.info/node/4369; and at: http://apanews.net/index.php/news/mauritanie-forte-hausse-des-prix-des-produits-alimentaires-a-nouadhibou.

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the National Agricultural Development Plan 2015-2025 was prepared in 2013 together with the FAO with the aim of developing agriculture that is "modern, sustainable and competitive, by developing highly productive crop farming"0;

the National Food Security Strategy (SNSA, 2012), which led to the National Agricultural and Food Security Investment Programme (PNIA);

the Rural Development Strategy 2025 (SDSR, 2012), together with

the Agropastoral Framework Law (LOAP) adopted in 2012; and

the National Strategy for Accelerated Growth and Shared Prosperity (SCAPP, 2016).

4.4.  In the past, these plans have often lacked framework laws or sufficient resources for their implementation.0 However, since 2011 tangible efforts to boost rice production (and to a much lesser extent wheat production) have borne fruit, which confirms that farmers do indeed respond to suitable policies.

4.5.  In particular, Mauritania does not participate in the ECOWAS Regional Food Security Storage Strategy, whose Regional Food Security Reserve constitutes a third line of response to crises, after local/community-level and national food reserves. Adopted by ECOWAS in February 2013, the Reserve is composed of a physical component (one third of expenditure) aimed at securing rapid supply and a financial component (two thirds); Mauritania's participation in this mechanism could help to improve food security while facilitating regional trade in foodstuffs. Nor is Mauritania a participant in the sub-regional West Africa Agricultural Productivity Programme (WAAPP).0

4.6.  One of the priorities of the €195-million National Indicative Programme 2014-2020 signed with the EU is to strengthen the land tenure system. A five-year land reform programme was launched in 2016 with World Bank assistance, starting from the recognition that an appropriate land tenure policy could make a significant contribution to achieving the goal of food security by raising food production. According to a recent United Nations report, the land tenure system is one of the three main factors perpetuating the extreme poverty in which three quarters of the Mauritanian population live.0 According to this report, because they lack land titles and identity documents, the poorest cannot obtain loans for seeds and fertilizer and are often under threat of eviction without compensation by rich landowners or foreign investors; agricultural land may be purchased by foreigners by setting up a company under Mauritanian law and taking out a long-term lease. According to the authorities, on the contrary, the State attaches great importance to access to land by village cooperatives and access to agricultural credit, and to overhauling the land tenure system, on which an interministerial committee is working; and there have never been any cases of expropriation. Moreover, it would seem that the process for attributing rural concessions needs to be simplified, as these are first granted on a provisional basis (Section 2.4).0

4.7.  The household food security survey carried out by the World Food Programme (WFP) in 2013 showed the scale of food insecurity and its relationship with imports: in January 2013, 16.5% of Mauritanian households suffered from food insecurity. In 2015, the same survey reported a rate of 26.8%, and even 34.7%, in rural areas. The national food supply consists of about 70% of imported cereals, of which between 5% and 25%, according to the year, is provided by international food aid. Facilitating imports would therefore directly help to reduce hunger.

0 Ministry of Agriculture. Viewed at: http://www.agriculture.gov.mr/spip.php?article87.0 SCAPP (2016).0 Online information viewed at: http://www.waapp-ppaao.org/fr.0 United Nations (2017), Report of the Special Rapporteur on extreme poverty and human rights on his

mission to Mauritania. Viewed at: https://documents-dds-ny.un.org/doc/UNDOC/GEN/G17/053/84/PDF/G1705384.pdf?OpenElement.

0 For a summary of Mauritanian land law, see Foncier & développement, viewed at: https://www.foncier-developpement.fr/wp-content/uploads/fiche-pays-mauritanie.pdf .

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Chart 4.11 Food products imported by Mauritania, 2008-2016

28.3%

29.1%

19.4%

14.5% 15.2%

11.0%12.0%

13.3%

18.1%

11.6%10.6%

7.7% 6.9%8.7%

7.7% 8.1%10.2%

8.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016

Food imports as a percentage of total importsFodd imports as a percentage of GDP

Note: Food products based on the WTO definition of agriculture.Source: WTO Secretariat calculations based on data from the UNSD Comtrade database; and United Nations,

ITC TradeMap.

4.8.  The main trade policy instruments relating to agriculture and food are customs tariffs, which the Government occasionally raised during the period 2010-2016, in particular when it decided to encourage domestic production (see below in the case of rice). Mauritania has not notified the WTO Committee on Agriculture concerning domestic support for agricultural production, which is probably sizeable in relation to the value of production of certain food products such as rice (see below); or concerning export subsidies, which do not exist given the lack of any exportable output. The EMEL Programme was introduced in 2011 following a severe drought; the products sold were all imported by National Import-Export Company (SONIMEX) (Section 3.3.5). Government spending on this programme reached nearly 22 billion old ouguiyas in 2016 (almost US$63 million). The programme came under criticism in September 2012 because of the direct award of five contracts amounting to over €30 million under conditions that reportedly did not comply with the Government Procurement Code (Section 3.3.4).0 In March 2018 the activity of the Emel shops dwindled following the liquidation of SONIMEX.0

4.9.  The foods sold at subsidized prices in the Emel shops consist primarily of the following staples: sugar, rice, pasta, milk, potatoes and onions.0 Mindful that subsidized imports of food and other agricultural products could have a seriously destabilizing impact on agricultural production systems and in particular block the development of specific segments, in 2017 the World Bank drew up a project for a Social Register of all poor households that would receive cash transfers of 15,000 old ouguiyas, or about US$42) every quarter instead of food sales. This amount corresponds to about one third of the reference income for the national poverty threshold, i.e. US$1.34 per day.

4.10.  Mauritania's food market is characterized by a small number of "interest groups linked to major local players" that dominate the wholesale distribution of rice and the other main foods, which somewhat seems to explain the fact that in 2015 "the domestic price of imported rice was twice the world price and the domestic price of wheat was 60% higher".0 These importers

0 Online information viewed at: http://www.fr.alakhbar.info/4945-0-Mauritanie---Emel-2012-plus-de-12-milliards-engloutis-dans-le-gre-a-gre.html.

0 CRIDEM, Mauritanie: la disparition des boutiques EMEL inquiète les populations pauvres du pays. Viewed at: http://cridem.org/C_Info.php?article=708108.

0 Online information viewed at: http://afrique.le360.ma/mauritanie/societe/2016/06/06/2938-un-milliard-douguiyas-pour-la-subvention-des-produits-pendant-le-ramadan-2938.

0 Enhanced Integrated Framework (2015), République islamique de Mauritanie - Actualisation de l'Étude diagnostique pour l'intégration du commerce: de rentes à court terme vers une croissance macroéconomique et un développement durable fondé sur l'exportation, World Bank. Viewed at: http://www.commerce.gov.mr/IMG/pdf/strategie_commerciale.pdf.

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apparently enjoy an oligopolistic position and their speculative practices are likely to undermine food security.

4.1.2  Policies by subsector

4.1.2.1  Rice and wheat, gum arabic

4.1.  Rice and wheat are the main agricultural products for which significant production aids have borne fruit (Chart 4.3).

Chart 4.12 Rice production, 1990-2014

0

50

100

150

200

250

300

350

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

(Volume: 1,000 tonnes)

Source: FAOSTAT. Viewed at: http://faostat3.fao.org/home/E (database accessed in November 2017).

4.2.  Government production support for agriculture has taken the form of hydro-agricultural works on behalf of the poorest village communities, as well as subsidized agricultural inputs (in particular fertilizer and herbicides and seeds for rice, wheat and vegetable production). Farmed areas have been rehabilitated and developed, and paddy rice processing and local storage have been improved. In 2014-2015 output neared 300,000 tonnes, but according to the president of the Association for Farm Modernization and Diversification, yield per hectare did not exceed 2.5 tonnes in 2015-2016 compared with 4 tonnes previously.

4.3.  In August 2015 guaranteed producer prices were raised from 80 to 130 old ouguiyas per kilo, but in early 2016 domestic producers were hit by a slump in imported rice prices.0 Production thus became unviable without government support for fertilizers and inputs. The Government then raised customs tariffs. In 2011, the fiscal import duty (DFI) on rice, which had previously been exempt, was raised to 5% for broken rice and 13% for milled rice (see below).

4.4.  Wheat production also increased tenfold between 2004 and 2014, but remains modest at 7,000 tonnes compared with imports of over 500,000 tonnes in 2015, costing the State US$125 million.0

4.5.  Gum arabic (of the acacia family) production began in Mauritania in the 15th century, and the country was once a major exporter.0 However, its importance for the country collapsed following the droughts of 1970 and 1980. Annual production is currently below 500 tonnes. The World Bank is working with the country to promote this crop, which helps to combat desertification thanks to its deep roots that retain water, as well as for its economic value. The Sahel and West Africa Programme (SAWAP), endowed with US$1.1 billion, is jointly implemented by the World Bank and the Global Environment Facility (GEF) to support the "Great Green Wall" initiative.

0 Online information viewed at: http://www.noorinfo.com/Le-riz-mauritanien-La-frustration-des-producteurs-nationaux_a17265.html.

0 SCAPP (2016).0 For a gum arabic market study, see UNCTAD (2015). Viewed at:

http://unctad.org/en/PublicationsLibrary/INFOCOMM_cp06_GumArabic_fr.pdf.

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4.1.2.2  Animal farming and products

4.1.  Mauritania has a large livestock population of about 20 million head, reflecting the comparative advantage of its vast territory. In 2010 the herd was estimated at 1.7 million cattle; 1.4 million camelids; 8.7 million sheep; 5.8 million goats; and 4.2 million poultry. Livestock farming represents on average 16% of GDP, provides a livelihood for about one million people, plays a key role in food security, and is a means of accumulating capital, in particular for the poorest. However, the heavy concentration of the herd in grazing areas has hastened deforestation and land degradation, thereby speeding up the country's severe desertification. The survival of livestock farming therefore calls for a radical revision of policy in order to take account of the fight against desertification, access to animal feed and its cost, and the reform of extensive farming so as to improve productivity.0

4.2.  Many plans, programmes, projects or strategies have been published on Mauritanian livestock farming, but few have been implemented.0 Most of them agree on the need to provide considerably more resources in order to stabilize and regenerate the areas concerned; facilitate access to inputs for producers; improve animal health; collect statistical data and the commercial information needed for monitoring the sector; and rehabilitation of the necessary public infrastructure.

4.3.  The current Livestock Code was adopted in 2004.0 A new National Livestock Development Plan 2018-2025 was mentioned (but unavailable) in December 2017 on the Ministry of Livestock's website. Its total cost was said to be 112 billion old ouguiyas (US$320 million), of which nearly half had already been raised in June 2017 according to the Ministry.0 In fact, the operating budget allocated to the Ministry of Livestock in 2017 (1.1 billion old ouguiyas, or about US$3 million) represents 0.4% of total government expenditure (excluding debt interest).

4.4.  The National Union of Livestock Savings and Loan Cooperatives (UNCECEL) was set up in 2009 to palliate the major handicap of lack of access to credit for livestock farmers. However, although it has received an annual budgetary allocation since then, the body has never begun either to function or to grant loans.0 Again, the Livestock Input Supply Pool could supply the market for animal feed and veterinary products and ensure its stability, if it had adequate working capital.

4.5.  As for the health of the herd, repeated epidemics regularly cause deaths and economic losses. Only a minority of animals appear to be vaccinated. Hence, in October 2017 an annual vaccination campaign was launched for six million animals, (i.e. less than half the total), in particular against contagious bovine pleuropneumonia and sheep and goat plague (peste des petits ruminants (PPR)).0

4.6.  The lack of a laboratory for the control and certification of animal products is another handicap. The National Livestock and Veterinary Research Centre (CNERV) could include such a laboratory but lacks the financial resources for doing so.

4.7.  For all these reasons, Mauritania is one of the few countries of which one of the main export products is mostly exported informally. Mauritania is in fact traditionally considered the largest exporter of live cattle in the region. The authorities estimate that traditional exports to the Gambian, Malian, Moroccan and Senegalese markets amount to between 30,000 and 70,000 cattle and 300,000 sheep a year.0 However, this trade is essentially conducted informally.

0 Online information viewed at: http://afrique.le360.ma/mauritanie/economie/2017/10/17/15842-mauritanie-secheresse-nouveau-cri-de-detresse-des-eleveurs-15842.

0 See, for example, Ministry of Rural Development and the Environment, Rural Development Strategy 2015. Viewed at: http://cda.portail-omvs.org/sites/cda.portail-omvs.org/files/sites/default/files/fichiers_joint/10390_ocr.pdf.

0 Law No. 2004-024 of 13 July 2004 containing the Mauritanian Livestock Code. Viewed at: http://www.cciammr.com/images/Code%20de%20lelevage.pdf.

0 Online information viewed at: http://www.elevagerim.com/fr/2017/06/ministre-de-lelevage-presente-communication-relative-a-lapprobation-plan-national-developpement-de-lelevage-2018-2025.

0 Online information viewed at: http://documents.banquemondiale.org/curated/fr/492991468049878598/pdf/Mauritania-DTIS-French-FINAL-GreyCover.pdf. See for example the allocation of 60 million old ouguiyas in the 2015 Finance Law.

0 Online information viewed at https://lesmauritanies.com/2017/10/02/mauritanie-vers-limmunisation-de-6-millions-de-tetes-de-betail.

0 This trade is in principle governed by Decree No. 65-087 of 19 May 1965 regulating the import and export of animals and animal products.

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4.8.  The Investment Code (Section 2.4.2) provides favourable conditions for investment in the livestock and animal product sector. It seems that since 2011 some public-private partnership (PPP) investments have helped increase domestic production of animal products with the aim of reducing the import bill: the Mauritanian Dairy Company (SMPL), a State enterprise, started up operations in 2016 in the Nema region (1,100 kilometres to the east of Nouakchott), where Tivilski, a private company, is already operating.0

4.9.  Another PPP for poultry production was started up in 2015 in Nouakchott.0 The Nouakchott Abattoir Company (SAN) is also a semi-public company.

4.10.  Some private tanneries were set up in Nouakchott in the 2000s, but in 2017 they all appear to have come to a halt.0

4.11.  Imports of dairy products and white meat remain high. The country is self-sufficient only in red meat. In 2016, customs duties on poultry were raised to 20% when a poultry farm started up production. By comparison, the ECOWAS common external tariff (CET) rates for poultry, to which Mauritania should now adhere, are 35%. Powdered milk is considered an input for dairies and carries a 5% duty, the same rate as under the ECOWAS CET.

4.12.  Imports of milk and poultry are sold at subsidized prices that are set by the Ministry of Trade.

4.13.  The 2016 Finance Law introduced "consumption taxes" on imports of poultry meat and edible offal, as well as yoghourt and other dairy products (Section 3.1.5.3).

4.1.2.3  Fisheries

4.1.2.3.1  Overview

4.1.  Mauritania's coastal waters are among the richest in the world as far as fisheries resources are concerned. The country's Exclusive Economic Zone (ZEE) covers an area of 230,000 km2. The Atlantic coastline extends for 720 km, and there are 750 km of riverbanks along the Senegal River dividing Mauritania from Senegal.0 Fish account for around 13% of total goods exports (Chart 1.3). There are also the catches by the foreign fishing fleet directly dispatched overseas. The fisheries sector contributed about 8.4% of government budget revenue in 2015, primarily from licence fees and royalties. Small-scale fishing and coastal catches have increased sharply, from 43,000 tonnes in 2006 to 333,000 tonnes in 2013. Fish-processing activities have also developed very strongly, with more than a hundred plants compared with a single plant in 2006.

4.2.  In 2016 the Ministry of Fisheries and the Maritime Economy published a final report on the investment framework for sustainable fisheries development in Mauritania 2015-2020 in order to implement the Government's new national strategy for responsible and sustainable fisheries management.0 In that year Mauritania was the first country to commit itself at the regional level in favour of the Fisheries Transparency Initiative, which was launched in Nouakchott in February 2016. The National Multi-Stakeholder Group (MSG), established in January 2017 is responsible for supervising the implementation of the Initiative in Mauritania.0 It is steered by the Ministry of the Economy and Finance.

4.1.2.3.2  International agreements and conventions

4.1.  In April 2012, in Nouakchott, Mauritania ratified the Convention for Cooperation in the Protection, Management and Development of the Marine and Coastal Environment of the Atlantic Coast of the West, Central and Southern African Region (Abidjan Convention).0 Mauritania had

0 Online information viewed at: http://www.inter-reseaux.org/IMG/pdf/Note_Tiviski_final.pdf.0 For an analysis of the poultry sector, see Fall, M. (2009), Revue du secteur avicole, FAO. Viewed at:

http://www.fao.org/3/a-ak141f.pdf.0 Mauritanian Centre for Policy Analysis (2010), Analyse des politiques publiques dans le domaine de

l'élevage. Viewed at: http://www.cmap.mr/PA2010/ETUDE%20ELEVAGE%20VF.pdf.0 Online information from FAO, viewed at: http://www.fao.org/fishery/countrysector/FI-CP_MR/fr.0 Online information viewed at:

http://www.peches.gov.mr/IMG/pdf/rapport_finalcadre_d_investissement.pdf.0 Online information from the Fisheries Transparency Initiative, viewed at:

http://fisheriestransparency.org/fr/mauritania-launches-its-fiti-national-multi-stakeholder-group.0 Online information viewed at: http://www.prcmarine.org/fr/la-mauritanie-ratifie-la-convention-dabidjan.

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ratified the United Nations Convention on the Law of the Sea on 10 December 1982.0 Mauritania has also signed several international fishing agreements. As international agreements, they take precedence over domestic law, including the Fisheries Code.

4.1.2.3.2.1  Agreement with Senegal

4.1.  A 2001 agreement with Senegal in principle allowed registered Senegalese fishermen to engage in small-scale fishing without having to land their entire catch in Mauritania, as a waiver to Mauritanian legislation (see below). The agreement provided for annual protocols that were concluded until 2014, in which year Senegal obtained 400 fishing licences for a maximum volume of 50,000 tonnes of fish that could be landed in Senegal. Such protocols have been suspended since 2015.

4.1.2.3.2.2  Agreements with the European Union

4.1.  Since 1987, successive fisheries agreements have been signed with the EU. A Fisheries Partnership Framework Agreement was signed in 2006, initially for six years up to 31 July 2012 and then extended until the end of 2018. Several protocols have been signed on the basis of this agreement, for 2006-2008, 2008-2012, 2012-2014 and 2015-2019.0 These agreements authorize EU-registered vessels to fish in Mauritania's ZEE in exchange for an annual financial contribution specified in the protocol. This contribution includes support for the development of the fisheries sector (Table 4.1), which has been declining over the period, and is intended for enhanced surveillance, the maritime academy, the protection of marine areas, and the development of small-scale fishing.

Table 4.14 Fisheries agreements, 2006-2019Duration Maximum tonnage (royalty) No. of

vessels at the same time

Average annual royalty

(€ million)

Of which: average annual

sectoral aid

(€ million)2006-2008 440,000 200 76.5 n.a.2008-2012 250,000 130 76.3 16.32012-2014 326,700 110 70.0 3.02015-2019 287,500, of which:

1. Crustaceans excluding crawfish and crab: 5,000 (royalty: €400/tonne)

25 59.1 4.1

2. Non-freezer trawlers and bottom longliners for black hake: 6,000(royalty: €90/tonne)

6 n.a. n.a.

3. Demersal species other than hake, non-trawling: 3,000 (€105/tonne)

n.a. n.a. n.a.

4. Tuna seiners: 125,000(€60-70/tonne plus €1,750 per vessel)

25 n.a. n.a.

5. Pole-and–line tuna vessels and surface longliners: 7,500(€60-70/tonne +€2,500-€3,500 per vessel)

15 n.a. n.a.

6. Freezer pelagic trawlers: 220,000 (€123/tonne)

19 n.a. n.a.

Non-freezer pelagic vessels: 15,000(€123/tonne)

n.a. n.a. n.a.

n.a. Not available.Source: WTO Secretariat on the basis of the Fisheries Agreement.

4.2.  Under the protocol, European vessels pay an annual royalty. Article 1.5 of the agreement provides that these royalties must also be paid by all other foreign fleets operating in the fishing zone. The royalty amounts to €400/tonne for crustaceans with the exception of crawfish and crab; €105 for demersal species (with the exception of €90/tonne for black hake). For tuna, the royalty is €60/tonne for the first two years, rising to reach €70 in the fourth year, plus a fixed royalty of €1,750 per tuna seiner. In the case of pole-and-line tuna vessels or bottom longliners, the royalty rises to €2,500 and 3,000 per vessel respectively. Fishing for cephalopods is banned.

0 Online information from the United Nations, viewed at: http://www.un.org/french/law/ los/index.htm.0 Protocol setting out the fishing opportunities and financial contribution provided for in the Fisheries

Partnership Agreement between the European Community and the Islamic Republic of Mauritania for a period of four years. Viewed at: http://eur-lex.europa.eu/legal-content/FR/TXT/PDF/?uri=CELEX:22015A1201(01)&from=EN; and at: https://ec.europa.eu/fisheries/cfp/international/agreements/mauritania.

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4.3.  In addition, the agreement provides for a "royalty in kind": vessels must transfer free of charge a volume corresponding to 2% of their pelagic catches transhipped or landed, all species combined, to the National Fish Distribution Company (SNDP), a State enterprise (see below) that only distributes fish within the country. As large vessels cannot approach the port for technical reasons, small boats have to collect the catch in order to land it. Furthermore, this payment in kind would appear to compete with the small-scale fishing that supplies the domestic market.

4.4.  The agreement specifies annual catch ceilings and maximum volumes per vessel, including tuna vessels (Article 2.7). The vessels report their catch volume data at the end of each fishing year. Freezer pelagic trawlers can fish 225,000 tonnes annually, plus the 2% in kind mentioned above, with a possible excess of 10% without affecting the financial counterpart, against a royalty of €123 (Table 4.1).

4.5.  Foreign vessels have a transhipment obligation (which, however, does not include the obligation of storage and local processing), unlike the domestic fleet, which does have to land and process its catches. However, the non-freezer pelagic fleet is subject to a landing obligation "within the limits of the reception capacity of the processing units at Nouadhibou and actual market demand". In addition, the current protocol (like its predecessors) stipulates that 60% of total crews of European vessels (Chapter IX) must consist of Mauritanian seamen, and also provides for the presence of some scientific observers at the Mauritanian Government's expense.

4.6.  Since 2010, an increasing number of Mauritanian production units (freezer vessels, plants producing fishmeal or ready-made meals) have been included in the EU's list of countries and territories from which imports of fishery products are authorized. The latest list dates from 2018 and contains over 130 enterprises.0 The latest health audit of the fisheries sector by the European Commission dates from 2011. Enterprises are certified by the Mauritanian Ministry of Fisheries and the Maritime Economy as meeting EU hygiene standards.

4.1.2.3.2.3  Agreements with China

4.1.  The work of the Mauritania-China Joint Fisheries Commission led to the signing in October 2017 of a new cooperation agreement to replace the 1991 agreement. This new agreement is said to include provisions concerning the renewal of the national fleet, approval of the sanitary inspection system for fishery products, and access to the Chinese market for fishery products, based, according to the authorities, on the provisions of the agreement with the EU. The Ministry website does not appear to contain this agreement.

4.2.  In 2010, the Government signed a fisheries agreement with a Chinese private company (Poly Hong Dong) in order to establish a fisheries hub at Nouadhibou. In exchange for investment in kind assessed at US$100 million over a 25-year period (construction of a fishing wharf, a fish-processing plant with a capacity of 300 tonnes per day, refrigerated storage units, etc.), the company obtained a 25-year fishing licence. According to the authorities, this agreement with Mauritania does not exempt Hong Dong from the payment of all internal duties and taxes (VAT, etc.), customs duties, the 2.5% minimum flat-rate tax (IMF), and the export tax. The company is one of about 100 enterprises approved to export to the European market.0

4.1.2.3.3  National regulations

4.1.  The Ministry of Fisheries and the Maritime Economy is responsible for government policy in the fisheries sector.0 It is thus tasked with implementing the laws governing fishing in Mauritanian waters and ensuring that they are consistent with international agreements. The Ministry also oversees, inter alia, the Mauritanian Fish Marketing Company (SMCP) (see below), the SNDP and Mauritania's shipyards.

4.2.  Mauritania has undertaken to implement the international regulations against illegal, unreported and unregulated (IUU) fishing0, which came into force on 1 January 2010.0 Under these

0 Online information viewed at: https://webgate.ec.europa.eu/sanco/traces/output/MR/FFP_MR_en.pdf.0 Idem.0 The Ministry's website was working in January 2018. Viewed at: http://www.peches.gov.mr/index.

php?lang=fr.0 Council Regulation No. 1005/2008 of 29 September 2008. Viewed at: http://eurlex.europa.eu; and at:

http://ec.europa.eu/fisheries/cfp/illegal_fishing/index_fr.htm.0 Online information viewed at:http://www.cape-cffa.org/IMG/pdf/CAPE_annonce_ bateaux_INN_mauritanie_3fev2006.pdf.

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regulations, vessels must be registered, be in possession of a fishing licence, and each trip out to sea has to be declared. Products exported by processors or shipowners (approved by the sanitary authorities) must be traceable.

4.3.  The national fisheries resource management system is mainly the responsibility of the Ministry of Fisheries, the Fisheries Surveillance and Maritime Control Department (DSPCM) and the Mauritanian Institute for Oceanographic and Fisheries Research (IMROP).0 According to the authorities, the system is effective and provides a reliable estimate of the current state of marine resources. In particular, again according to the authorities, each vessel keeps a fishing log with statistics concerning catches, which are transmitted to the DSPCM. The National Office for the Sanitary Inspection of Fishery and Aquaculture Products (ONISPA) is the sanitary authority for fishery products and is certified ISO 17025.

4.4.  The new 2015 Fisheries Code introduced, among other things, a system of individual quotas for maximum catches per vessel; specified fishing gear and methods (Article 29); and revised the applicable taxation.0 The new legislation abolishes the distinction between small-scale fishing and industrial fishing, and instead distinguishes between small-scale fishing, coastal fishing and deep-sea fishing according to the vessel's size and equipment and the fishing zone.

4.5.  The Code provides for two types of treatment: a national regime subject to landing in Mauritania and reserved for Mauritanian-registered vessels or bareboat charters; and a foreign vessel regime. The foreign regime is an exceptional one that is granted under international fishing agreements or other arrangements (see above, international agreements). In the absence of an international agreement stipulating otherwise, a vessel operating under the foreign regime must land its entire catch in Mauritania; and at least 60% of the on-board crew must be Mauritanian nationals, including the captain and officers.0 The fishing access duty differs under the two regimes; it includes a direct access duty and a royalty. The direct duty is based on the species, fishing zone, fishing category, fishing gear and mode of conservation.0 The royalty is based on the species and value of catches. Some species are reserved for the national regime, which enjoys lower royalties in exchange for the obligation to land catches and process them locally.

4.6.  Several tax breaks are available in order to encourage the development of small-scale and coastal fishing. The turnover derived from artisanal fishery products is not subject to the minimum flat-rate tax (IMF), with the exception of the turnover from sales of pelagic products, which are subject to a 2% IMF. The exemptions from VAT, internal consumption taxes (for example the tax on petrol) and customs duty on petroleum products used for small-scale fishing amounted to 8 billion old ouguiyas (about US$23 million) in 2013 alone.0

4.1.2.3.4  Fish exports

4.1.  Exports of frozen unprocessed fishery products (with the exception of small pelagic fish) that are subject to the landing obligation remains the monopoly of the SMCP, a semi-public company set up in 1984, with 70% of its capital owned by the State and the remainder by the Mauritanian private sector.0 The SMCP has not been notified to the WTO Committee on State Trading. In 2016, its turnover, entirely from export, amounted to about US$416 million.

4.2.  The SMCP is ISO 9001-2008 certified. Its activities are governed by a new decree of 2017.0 For products for which it has an export monopoly, the SMCP is responsible for the inspection of commercial quality (size, etc.) and marketing up to export. The SMCP asks interested buyers to submit price proposals; fishers or producers are remunerated on the basis of the export price

0 Online information viewed at: http://www.imrop.mr.0 Law No. 2015-017 containing the Marine Fisheries Code. Viewed at:

http://www.peches.gov.mr/IMG/pdf/code_peches_2015-017_fr_version_finale_scannee.pdf.0 Article 47 of Decree No. 2015-159 implementing Law No. 017-2015. Viewed at:

http://www.peches.gov.mr/IMG/pdf/dcret_2015159_application_loi_0172015_portant_code_des_pches__01102015.pdf.

0 Decree No. 2015-176.0 Ministry of Finance (2015), Portrait des dépenses fiscales de l'année 2013 de la République islamique

de Mauritanie. Viewed at: https://www.giz.de/en/downloads/giz2013-fr-potrait-des-depenses-fiscales-en-Mauritanie.pdf.

0 Online information viewed at: http://smcp.mr.0 Decree No. 2017-027 on the marketing of fishery products for export. Viewed at:

http://www.peches.gov.mr/IMG/pdf/decret_smcp_prix_de_reference_fr.pdf. See also World Bank (2015), Islamic Republic of Mauritania, Diagnostic Trade Integration Study. Viewed at: http://www.eif-mis.org/files/user/Mauritania_DTISU_2016.pdf.

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obtained by the SMCP after deduction of a commission of 0.5%-1.5% according to the product exported. However, Poly Hong Dong's exports (see above) are not subject to the SMCP monopoly.

4.3.  The SMCP's sphere of activity was broadened in 2017. The new decree specifies that it is also responsible for controlling, inspecting and monitoring the marketing and export of a second group of products on which it does not have an export monopoly, namely frozen small pelagic fish, fishmeal and fish oil. Catches are transferred directly by fishers to their clients on the basis of the floor price set by the Commission responsible for setting export reference prices (Article 8); the commission is once again 0.5%-1.5% according to the product. The Commission also publishes a floor price for a third group of products, namely fresh and live products. In addition, the SMCP levies export taxes at the rates indicated in Table 4.2.

Table 4.15 Export taxes collected by the SMCPSpecies Tax as a percentage of catch valueWhole products

Frozen on land 5%Frozen on board 6%Fresh demersals 4%Fresh pelagics 2%Live crustaceans 10%

Processed and/or prepared productsa

On board 4%On land 3%Fish meal and oil 8%

Finished productsb 1%a "Processed and/or prepared products" means any product that has undergone mechanical

transformation that adds value.b Finished products are defined as products ready for consumption.Source: Decree No. 2015-176 on the methods for setting access duty for fisheries resources. Viewed at:

http://www.peches.gov.mr/IMG/pdf/decret_2015-176_du_041215_ modalites_de_fixation_du_droit_d_acces_fr.pdf.

4.4.  Consumption of fish per capita in Mauritania did not increase between 2011 and 2016, although the Government decided in 2008 to encourage domestic consumption by banning exports of certain species of fish (such as mullet) and to open up sales outlets for fish in the interior.

4.2  Extractive industries and energy

4.1.  The Ministry of Petroleum, Energy and Mining (MPEM) is responsible for government policy on refined and unrefined hydrocarbons, mining and electricity. The Ministry has a website containing the applicable legislation as well as a Note on the hydrocarbons sector.0 Foreign investment is actively encouraged in this market, in the framework of production-sharing contracts with the State.

4.2.1  Upstream sector

4.1.  Two sedimentary basins have been identified as likely to contain hydrocarbons: the Taoudenni basin (500,000 km²) and the coastal basin (180,000 km²). In 2018, several oil companies were prospecting but as a whole the hydrocarbons sector has retreated significantly since the previous TPR owing to the steady fall in both oil prices and extraction. The only petroleum field being exploited, in the coastal basin, produced about 6,000 barrels per day in 2017. At the end of 2017, Petronas, a Malaysian company that was marketing and exporting all Mauritanian crude oil, was negotiating the winding up of its operation with the Mauritanian State, which has a 12% stake in the consortium.0

4.2.  The prospects of large gas reserves in the coastal fields of Banda and Pélican have led a number of multinationals to embark upon prospection. Among recent developments, in 2018 Mauritania was carrying out, with World Bank assistance, an energy production project based on the Banda Gas-to-Power field 70 km off the Mauritanian coast. Downstream this project includes two 180 MW and 120 MW gas-fired power stations as well as the transport infrastructure required

0 Online information from the Ministry of Petroleum, Energy and Mining, viewed at: http://www.petrole.gov.mr/MinesIndustrie/PetroleDocs.aspx.

0 Online information viewed at: https://www.chezvlane.com/Petronas-quitte-la-Mauritanie_a4254.html.

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to export electricity (see below Section 4.3.3) to Senegal and Mali.0 The project partners are the State and the Gas-Fired Electricity Generation Company (SPEG) owned by the Mauritanian Electricity Company (SOMELEC), the National Industrial and Mining Company (SNIM) and Tasiast Mauritania (see above).

4.3.  In order to update the legal framework dating from 19880 and encourage onshore and offshore prospection activities, in 2010 the Parliament adopted a new Crude Hydrocarbons Code. According to the Sectoral Note published by the MPEM, the Code "modernizes the conditions for the granting of oil licences, aims to optimize the State's share and strengthen the national enterprise (10% henceforth for the Mauritanian Hydrocarbons and Mining Assets Company (SMHPM)) during exploration, with financial costs borne by the operators, while maintaining an acceptable level of commitment by the petroleum operators".0 In addition to offshore foreign exchange regulations (Section 1), the Code (Article 34) introduces a national preference clause "for all contracts relating to construction, supply or provision of services on equivalent terms as regards quality, quantity, price, supply and payment conditions. Companies must employ Mauritanian personnel (where qualifications are equivalent) and train Mauritanian managerial and technical staff under the terms of the exploration/production contract".

4.4.  The regulations containing the model production-sharing contract, which dated from 1994, were updated in 2011.0 In 2012-2016, ten exploration/production contracts had already been signed on the basis of the new Code. According to the Sectoral Note, most of the provisions of the contract are negotiable on a case-by-case basis. Production-sharing contracts signed under the old Code remain valid.

4.5.  The SMHPM, established in 2004, is a government-owned corporate industrial and commercial institution, in principle with financial autonomy.0 Its purpose is prospection, development, production and marketing of petroleum and gas throughout Mauritania and in the ZEE. It advises the Government on petroleum matters and acts on behalf of the State in all operations relating to production, treatment, processing, exploitation, development and transport of hydrocarbons. The State's share of the petroleum marketed by production companies ("profit oil") goes to the SMHPM.

4.6.  In 2007 Mauritania became a member of the Extractive Industries Transparency Initiative (EITI).0 A National Committee is responsible for implementing and following up the EITI.0 According to the authorities, this accession has led to greater transparency in the operations of the State and mining companies. Nine EITI reports have been published since 2007, the latest dating from December 2017 concerning the year 2015.0 The National Hydrocarbons Earnings Fund (FNRH) was set up in 2006, following Mauritania's accession to the EITI, in order to enhance transparency and the management of petroleum and gas earnings. Transfers by the FNRH to the State budget reportedly amounted to the equivalent of US$55 million in 2016, thereby greatly reducing the balance.0

4.7.  A 2004 law introduced a "simplified tax regime restricted to foreign enterprises established in Mauritania providing services to oil companies", such as logistics, construction, supplies and security, potentially giving them advantages over local companies.0 The tax on industrial and commercial profits of these companies is calculated on the basis of a profit estimated at a flat rate of 16% of operating revenue, excluding tax imposed in Mauritania; the tax on wages and salaries is calculated on the basis of a fixed salary specified in US dollars in the law; and companies subject to

0 Online information viewed at: http://www.petrole.gov.mr/IMG/pdf/code_des_hb.pdf.0 Ordinance No. 88.151 on the legal and fiscal regime for hydrocarbon exploration and exploitation.0 Sectoral Note on hydrocarbons. Viewed at:

http://www.petrole.gov.mr/IMG/pdf/note_sectorielle_hydrocarbures.pdf.0 Online information viewed at: http://www.petrole.gov.mr/IMG/pdf/cep_type_definitif_-

_23_octobre_2011.pdf.0 Decree No. 039-2004 of 19 April 2004.0 Online information from the Extractive Industries Transparency Initiative, viewed at: http://eiti.org/fr.0 Online information from the National Committee responsible for implementing and following up the

EITI, viewed at: http://www.cnitie.mr/article.php?categ=3.0 Online information viewed at: http://www.cnitie.mr/itie-fr/images/pv1/Rapport-ITIE-2015-VF-28-12-

2017-min.pdf.0 Online information viewed at: http://afrique.le360.ma/mauritanie/economie/2016/08/15/4794-

mauritanie-une-forte-ponction-sur-le-fonds-national-des-revenus-des-hydrocarbures-4794.0 Hydrocarbons Law No. 2004-029 on the creation of the simplified tax regime for the petroleum

industry. Viewed at: http://www.petrole.gov.mr/NR/rdonlyres/CFEB44AC-739B-4205-B68A-38F6E1E869E4/0/LoiRFS.pdf.

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the simplified regime are exempt from all other taxes or fees. The impact of this law appears to have been evaluated in the annual reports on fiscal expenditure annexed to the finance laws.

4.2.2  Downstream sector

4.2.2.1  Import, distribution and storage

4.1.  At end-2017, no petroleum products were being refined in Mauritania; refined products are all imported, mainly from Algeria. A refinery with a capacity of 20,000 barrels/bay in Nouadhibou has not been operating since 2001; the Government is seeking investment to refurbish it. There was no gas liquefaction activity either in 2017. The downstream sector therefore consists of the importation, transportation, stocking and marketing of oil and gas products. It is governed by an Ordinance of 2002 and an Ordinance of 1984 on "classified establishments".0 The Mauritanian Refineries Company (SOMIR) is responsible for monitoring the management of oil refining and storage infrastructure on behalf of the State, as well as for inspection and quality and quantity control in the downstream sector.0

4.2.  The share of petroleum products within total imports shrank considerably between 2011 and 2016 as a result of the fall in world prices, but still represents 20% of total imports, for an amount of about US$425 million in 2016 (Chart 1.3). Hence the authorities' objective of managing imports as efficiently as possible in order to cut this cost.

4.3.  There are some 20 importers of petroleum products, 12 of whom are also engaged in distribution, i.e. double the 2010 figure. The main companies are STAR, PETRODIS and TOTAL. Distribution is concentrated in the capital (Nouakchott), which has 137 petrol stations out of the 370 in the country. There are several operators that stock liquid products, with a capacity of 380,000 m3 (GIP, SMHPM and the Mauritanian Petroleum Products Storage Company (MEPP).

4.4.  Distributors are obliged to participate in the capital of the MEPP, which is the public establishment responsible for the storage, stocking and transport of hydrocarbons in Mauritania, notably in Nouakchott, where it manages storage facilities for petroleum products. In Nouadhibou, SOMIR is responsible for stocking hydrocarbons against payment for each tonne stocked, which is reportedly handed over to the MEPP. The MEPP belongs to the Petroleum Products Marketing Company (SMCPP), a semi-public company 40% of whose capital belongs to Mauritanian and foreign private shareholders.

4.5.  Among the gas importers/distributors, the Mauritanian Gas Company (SOMAGAZ) has a large share of the import, conditioning and distribution of butane gas cylinders at retail level throughout Mauritania. Its capital is owned by the State (34%), Naftec SA (Algeria, 33%), and private Mauritanian shareholders.0 SOMAGAZ has six bottling centres. Total gas stocking capacity is about 8,000 tonnes, shared between SOMAGAZ, BSA Gaz, and RIM Gaz.

4.6.  The National Hydrocarbons Commission assesses the country's hydrocarbon and gas requirements, issues international calls for bids and selects suppliers of petroleum products for the country as a whole, usually giving out two-year contracts which contain formulas for determining prices, quantities and the minimum buffer stocks to be kept. The latest contract covered the period 2016-2018. During this period, the only imports authorized are those by the importers approved under the contract.

4.2.2.2  Hydrocarbon taxation and prices

4.1.  Prices are fixed by a joint interministerial order issued fortnightly by the Ministry responsible for finance through the National Hydrocarbons Commission. There is a ceiling on the price of bottles of gas (2,000 old ouguiyas for a 12-kg bottle in 2011).0 A decree of 2012 establishes the

0 Law governing the downstream activities of the hydrocarbons sector; Ordinance No. 2002-005 of 28 March 2002; see the Note on the hydrocarbons sector. Viewed at: http://www.petrole.gov.mr/spip.php?article12.

0 Decree No. 2009-214 amending the provisions of Article 5 of Decree No. 88/117 dated 31 August 1988 creating a public industrial and commercial establishment under the name Société mauritanienne des industries de raffinage (Mauritanian Refineries Company) (SOMIR). Viewed at: http://www.exteriores.gob.es/Embajadas/NOUAKCHOTT/es/VivirEn/Documents/Decret%20224-2009.pdf.

0 SOMAGAZ no longer appeared to have a website in 2018.0 Decree No. 2007-041 of 1 February 2007 and Amendment No. 2009-024 of 26 January 2009

establishing the components of the price structure for butane gas.

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components of the price structure for liquid hydrocarbons.0 In February 2018, the retail price of fuel was around 4,115 old ouguiyas (about US$1.2 dollar) per litre for petrol and 3,846 old ouguiyas (about US$1) for diesel. In 2014 these retail prices for petroleum products were subsidized at a level of 50-60% of the import price in 2014, but in 2018 the subsidy had disappeared.0

4.2.  Hydrocarbon sales are in principle subject to customs duty and VAT upon importation. However, many companies, in particular petroleum and mining companies, are exempt, which complicates regulation, reduces fiscal revenues by about 15% of the total, diminishes transparency and increases the possibilities of fraud (Table 4.3). Nearly one third of imported petroleum products are generally purchased tax free by the country's three largest State enterprises (SNIM, SOMELEC and SOMAGAZ).

Table 4.16 Tax expenditures relating to the exemption regimes for VAT, customs duty and special taxes, 2013

Exemption regime Amounts(millions of old ouguiyas)

1- Internal VATSOMELEC 8042 – VAT at the customs cordonMining sector 5,650- MCM 5,529SOMELEC 3,927Hydrocarbons sector 2,202- TOTAL / DAVA 456- TULLOW 1,7463 – Customs duty and consumption taxesMining sector 15,193- MCM 2,392- TASIAST 3,447- SNIM 9,281SOMELEC 3,694Hydrocarbons sector 1,334- TOTAL / DAVA 270- TULLOW 1,064Total tax expenditures, mining, hydrocarbons and electricity 32,804TOTAL tax expenditures 38,838 % 84.4% % of total tax revenue 14.1%

Source: Ministry of Finance (2015), Portrait des dépenses fiscales de l'année 2013 de la République islamique de Mauritanie.

4.3.  Under the General Tax Code (CGI) as revised in 2017, the two taxes on petroleum products are the consumption tax and the gross margin tax (TMB) on businesses. The consumption tax is levied on refined liquid hydrocarbons except for aviation fuel. The tax rates are: 25 old ouguiyas per litre for premium grade petrol; 24 old ouguiyas per litre for ordinary petrol; 0.86 old ouguiyas per litre for kerosene; 5.5 old ouguiyas per litre for diesel fuel; 4.5 old ouguiyas per litre for diesel and fuel oil, light or heavy; 4.2 old ouguiyas per kg for lubricating oil and lubricants; and 1.04 old ouguiyas per kg for liquefied gaseous hydrocarbons (propane). According to Article 222 of the 2017 CGI, these consumption taxes were raised by 30 old ouguiyas per litre and/or kg, with the exception of domestic fuel oil, and light and heavy fuel oil.

4.4.  The TMB is 300 old ouguiyas per hectolitre on ordinary and premium grade petrol and 120 old ouguiyas on diesel. Products delivered to oceangoing vessels or fishing vessels for consumption at sea and to commercial aircraft are exempt from both these taxes.

4.2.3  Electricity

4.1.  As mentioned above, the new gas-fired power plant at Banda should come on stream in 2020 and greatly increase Mauritania's electricity generating capacity. Hitherto, the SOMELEC thermal power stations have been essentially fuelled by imported petroleum products.

0 Decree No. 2012-128 of 28 May 2012 establishing the components of the price structure for liquid hydrocarbons, as amended in 2014.

0 Online information from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) (German agency for international cooperation) (2015), International Fuel Prices, viewed at: https://www.giz.de/expertise/html/4317.html.

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4.2.  The project has involved the construction of 500 km of medium-voltage and 1,000 km of low-voltage grid, partly in order to export about 60% of this new production to Senegal and Mali. 0 Out of a generating capacity of about 300 MW, about 60% are expected to be exported to Senegal and Mali while about 40% will be reserved for the domestic market. In addition, Wartsila (Finland) was chosen in 2017 by the Kinross Gold Corporation (see below) to build a 60-MW dual power station for SOMELEC at a cost of €154 million.

4.3.  These projects should reduce Mauritania's large power generation shortfall, which has acted as a constraint not only on consumer demand but also on the development of new mining projects. Under the 2001 Electricity Code the Mauritanian electricity market was in principle open to competition. The text of the Code is available on the website of the Electricity Regulatory Authority (ARE), together with a number of orders determining the specifications for the various domestic power generating companies.0

4.4.  The Mauritanian Electricity Company (SOMELEC), a State-owned company created by decree in 2001, still has a monopoly of the generation, transport and distribution of electricity within urban and suburban areas throughout the country. Large subsidies come not only from tax exemption for SOMELEC's diesel fuel imports but also from aid paid by the State: in 2013 the State subsidy to SOMELEC amounted to 6 billion old ouguiyas, or US$18.5 million. Yet the company enjoys a number of advantages paid for by taxpayers: it collects VAT at a rate of 14% but pays it on at a rate of 5%, and enjoys exemptions from VAT, customs duty and the IMF on its imports.

4.5.  The new plants recently electrified come under the authority of the ARE. In 2011, electricity was generated in 19 cities in the country by some 20 electric power stations, four of which used hydroelectricity, with the others using diesel fuel. The infrastructure is built and renewed by the State, and then managed by private operators under a lease. The regional facilities are not interlinked. Rates are set by the ARE for each production unit and are shown on the ARE's website. They are subsidized, with around 40% of the cost borne by the State.

4.6.  Mauritania has advantages for the development of renewable energy: a wind power potential of 7-9 m/second on average on the coast; and solar energy potential of 3.5–6 kWh/m²/d for eight hours each day. According to the authorities, an additional 280 megawatts of solar power were available in 2017.

4.2.4  Water

4.1.  In a country that comprises 90% desert, water is a particularly critical resource for economic development.0 Under Law No. 2005-030 containing the Water Code, the Ministry of Water Resources and Sanitation (MHA) has the task of designing and implementing national water policies and of ensuring the follow-up to all issues related to the building and operation of works for the protection, transport and distribution of drinking water, as well as works for collecting, channelling and treating waste water. The multisectoral Regulatory Authority is responsible for regulating the water sector.0 The MHA supervises, inter alia, the National Water Company (SNDE) and the National Wells and Boreholes Company (SNFP). In addition, the National Agency for Water Services in Rural Areas was created in 2010.

4.2.  In principle, the SNDE is responsible for supplying water in urban areas pursuant to Decree No. 008/2003, which gives it sole responsibility for the production, transport, distribution and sale of water, as well as for other related activities. The SNDE is managed by a Governing Board whose members are appointed by decree of the Council of Ministers. Pursuant to Article 34 of Law No. 30 of 2 February 2005, the SNDE, like any other operator engaged in the production or distribution of water, must ensure that its product meets the standards for human consumption laid down in the laws and regulations in force. According to the Court of Audit, however, most of the SNDE's plants are unable to undertake rapid analyses of water quality because they do not have any chlorination equipment to purify the water. A large number of subscribers do not receive any water because of the low level of production in comparison with consumers' needs.

0 Online information viewed at: http://projects.banquemondiale.org/procurement/noticeoverview?id=OP00033528&lang=fr&print=Y.

0 Online information from the Regulatory Authority, viewed at: http://www.are.mr.0 Online information viewed at: https://www.chezvlane.com/Demarrage-des-travaux-d-un-atelier-de-

presentation-du-bilan-des-DSP_a5369.html.0 Online information from the Regulatory Authority, viewed at: http://www.are.mr.

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4.3.  In January 2011 the Prime Minister announced several projects aimed at improving access to drinking water in rural areas, seen as a priority by the Government, which is seeking the financial resources needed to carry them out. At the institutional level, the National Water Council and the regional councils have been put into operation; a Hydrology and Dams Directorate has been set up to promote and to make use of surface water; and the SNFP's responsibilities have been expanded under a programme contract with the State to facilitate the implementation of annual drilling programmes.

4.3  Other mining products

4.1.  Mauritania has a number of large mineral deposits, which have attracted foreign investors. Exports of iron ore, copper and gold bring in almost US$1 billion annually in government revenue (Chart 1.3), or the equivalent of 80% of earnings from goods exports. Mauritania also has cobalt, diamonds, uranium, gypsum and phosphate. In 2016, the mining sector rebounded slightly to reach 5.6% of real GDP as against 4.9% in 2015, after a second iron ore enrichment plant came on stream at the Guelb II field managed by the SNIM.0 Mining sector income declined sharply during the period 2011-2016 following the downward trend in commodity prices (Table 1.2).

4.2.  The SNIM enjoys various advantages, including in particular exemption from VAT on capital goods used exclusively for mining. Despite the concessions granted to the SNIM, which is 80% State-owned but has not yet been notified to the WTO, the Mauritanian State authorizes foreign presence under mining agreements, often in partnership with the SNIM. In 2017 some 60 operators were working under 64 exploration licences. So far there has been little investment in local processing industries. The large energy shortfall (see above) is a constraint on the development of value added in this sector.

4.3.1  Principal products

4.1.  Mauritania is among the world's top 15 producers of iron ore, which is basically exported in the form of magnetite concentrate.0 In addition, a new product, TZFC, containing iron ore and silica, has been exported to China for several years. Strong demand from the emerging countries, particularly China, helped to drive up iron prices on world markets, but since 2014 the prices and export earnings from mining products have fallen sharply (Chart 4.4).

Chart 4.13 Iron ore: prices and exports, 2010-2016

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Source: WTO Secretariat calculations based on data from the UNSD Comtrade database; and online information from the World Bank.

0 Online information from the SNIM, viewed at: http://www.snim.com/index.php/recherche-a-developpement/developpement/projets/6-projet-guelb-ii.html.

0 USGS (2013), 2013 Minerals Yearbook, Mauritania. Viewed at: https://minerals.usgs.gov/minerals/pubs/country/2013/myb3-2013-mr.pdf.

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4.2.  The SNIM is the country's largest industry0, accounting for about 15% of GDP. It exports all its output, particularly to Europe and Japan. The SNIM is active throughout the production chain, from mine to port. In 2014, its production of iron ore amounted to 13 million tonnes (11.6 million tonnes in 2010), with a turnover of close to US$1 billion.

4.3.  Gold production started in 2007. Together with copper, gold mining represents about 2.6% of GDP (2016). The main producer, Tasiast, is wholly owned by a Canada-based company, Kinross. It operates gold mines some 300 km north of Nouakchott under a mining agreement with the Mauritanian State. The State has no shares in this project (see below). Output amounted to almost 160,000 ounces in 2009, rising to 220,000 ounces (6.2 tonnes) in 2015.0 The Tasiast gold mine reportedly presents serious environmental and social dangers, in particular from cyanide pollution, air pollution, and the health and safety impact on the thousand employees and the neighbouring communities.0 Two general strikes closed the mine in May 2016 and from June to August 2016, with employees demanding wage rises. Corruption investigations have also targeted the activities of Kinross at Tasiast.0

4.4.  Since 2006, Mauritanian Copper Mines, owned by Canadian capital, has been producing about 180,000 tonnes of copper concentrate (mixed with gold), with concentration of 25%, or around 30,000 tonnes of pure copper annually. The company states that it contributes over 5.5% of GDP to the Mauritanian economy and employs 1,400 people.0

4.5.  The phosphate deposit in Bofal was discovered in 1983, and the country's phosphate potential is estimated at 136 million tonnes of high-quality phosphate. Various exploitation permits have been issued since 1998, in particular to the Mauritania Phosphates Company (SOPHOSMA) and then to the SNIM in 2011, and to the Bofal Indo Mining Company (BIMC). Marketing the phosphate would require transport infrastructure to the Atlantic coast.

4.6.  The Government has also issued permits for uranium prospecting to some foreign companies. In addition, south-west of Tasiast the Indian company Quartz Inc. and Ferroquartz, a Spanish company, have begun mining and processing quartz, a raw material for the metallic alloys used in the manufacture of solar panels.

4.3.2  Mining regulations

4.1.  The taxation applicable to the various types of mining project is determined on a case-by-case basis under the mining agreements for each project, and under the 2008 Mining Code, which was revised in 2009, 2012 and 2014. The amendment of 2012 in particular modified the groups of products and the corresponding rates of the mining royalties. In 2012 legislation was adopted on the model mining agreement that serves as the reference framework for mining agreements.0

4.2.  The main provisions of the 2008 Mining Code are described in Table 4.4. The titles needed to operate in the mining sector include the prospecting permit, the operating permit, and the industrial quarrying authorization. There are also many exemptions from VAT and customs duties mentioned in Table 4.3 above.

Table 4.17 Main taxes and charges under the Mining Code Type of tax DescriptionAdministrative service tax and annual area charge

On the granting, renewal and transfer of prospecting permits: 2 million old ouguiyas; as well as 2,000 old ouguiyas/km2 (first year) to 24,000 old ouguiyas/km2 (9th year)On the granting, renewal, transfer and capitalization of operating permits: 10 million old ouguiyasOn the granting and renewal of small-scale mining permits: 2.5 million old ouguiyasOn declaring the exploitation of a large-scale quarry: 2 million old ouguiyas

0 Online information from the SNIM, viewed at: http://www.snim.com.0 Online information viewed at: http://www.mining.com/kinross-gold-suspends-work-at-tasiast-mine-in-

mauritania-shares-dive.0 Online information viewed at: https://www.miga.org/Documents/SPGDisclosures/Mauritania%20Kinross

%20Tasiast%20ESRS%20Final%20For%20Disclosure.docx.0 Publish What You Pay. Viewed at: http://www.publishwhatyoupay.org/suspicions-of-corruption-in-

kinross-tasiast-mauritania-what-are-our-leaders-waiting-for.0 Online information from MCM, viewed at: http://www.mcmnews.com/English/Home/default.aspx.0 Law No. 2012-012 regulating mining agreements and approving the model mining agreement. Viewed

at: http://www.petrole.gov.mr/IMG/pdf/convention_2012_fr.compressed.pdf.

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Type of tax DescriptionTax on industrial and commercial profits (BIC) and IMF

Exemption for the period of the tax holiday. Thereafter, the ordinary rate of BIC (25% in 2018) is applicable. The minimum flat-rate tax (IMF) is payable on all sales or exports after a three-year exemption period. The annual rate is half the ordinary IMF rate, with a ceiling of 1.75%

Tax on wages and salaries (ITS)

Expatriate personnel of a permit holder or direct contractor of the permit holder are subject to the ITS at the ordinary rate. This applies to the salary paid in money and advantages in kind provided by the employer under the ordinary legal conditions

Operating royalty Calculated on the selling price of the product resulting from the final stage of processing of the ore in Mauritania or the f.o.b. export value:- Group 1: iron, manganese, titanium (rock), chrome, vanadium: 2%- Group 2: copper, lead, zinc, cadmium, germanium, indium, selenium, tellurium, molybdenum, tin, tungsten, nickel, cobalt, platinum group, silver, magnesium, antimony, barium, borium, fluorite, sulphur, arsenic, bismuth, strontium, mercury, titanium and zirconium (sand), rare earths: 3%, except for gold and PGE at 4%- Group 3: coal and other fossil fuels: 1.5%- Group 4: uranium and other radioactive elements: 3.5%- Group 5: phosphate, bauxite, sodium and potassium salts, alum, sulphates other than alkaline earth sulphates and any other metallic mineral substance used for industrial purposes; all industrial or ornamental rocks, other than quarried mineral substances used for industrial purposes, such as asbestos, talc, mica, graphite, kaolin, pyrophillite, onyx, chalcedony and opal: 2.5%- Group 6: rubies, sapphires, emeralds, garnets, beryls, topazes and other semi-precious stones: 5%- Group 7: diamonds: 6%- Industrial quarries:- Subgroup 1: construction materials: 1.4% (the State reserves the right to exploit Group 1, Article 82 (new))- Subgroup 2: materials for industrial use: 1.6%- Subgroup 3: ornamental materials: 1.8%The royalty is deductible from the taxable profit up to a ceiling equivalent to 7% of the turnover for the same financial year

Tax on dividends Dividends paid to a Mauritanian enterprise: exemptionOther dividends paid by the permit holder: 10%

Customs duties Equipment, materials, supplies and products of all kinds (including fuel) intended for:prospection:total exemption or exceptional temporary admission procedureoperations:total exemption for the first five years of operation; thereafter, a single rate of 5% applies to all imported goods and products, except for fuel, lubricants and spare parts

Note: In November 2017 the exchange rate for US$1 was about 350 old ouguiyas.Source: Law No. 2008-011 of 27 April 2008 containing the Mining Code, as amended in April 2009 by Law

No. 2009-026 amending certain provisions of the 2008 Mining Code; by Law No. 2012-014 of 22 February 2012; and by Law No. 2014-008 of 29 April 2014. Viewed at: http://www.petrole.gov.mr29.

4.3.  For example, the establishment agreement between the State and Mauritanian Copper Mines (MCM) reportedly stipulates that MCM should pay 3% of its sales revenue from copper and 4% of its revenue from gold sales as mining royalties. A sum of US$0.75/tonne of mineral ore has to be added to the mining royalty, but was only paid once the first 15 million tonnes of copper had been treated, so that at a rate of 2 million tonnes annually this means a franchise for close to eight years. In any event, there is a ceiling of US$8.5 million on amounts levied for the whole duration of the exploitation. For income tax purposes, MCM may deduct from its profits pre-production amortization, which can be brought forward and cumulated without any limit for the first five years of production. The other benefits include availability of a port and wharf; land concessions in Akjoujt and Nouakchott; freedom to import equipment, including vehicles, duty free for the first five years; and freedom to open a shop for sales to employees.

4.4.  The government entity responsible for this sector is the MPEM, which maintains a website on which the regulations could be viewed.0 Since 1999, a number of institutional strengthening projects for the mining sector, partly financed by the World Bank, the Islamic Development Bank and French cooperation, have enhanced the geological infrastructure and led to the drawing up of a mining and geological map and register. The Code also establishes a Mining Police, a control body that is separate from the bodies promoting the sector. It also stipulates a 10% State share in all mining companies, and provides for an option to buy a further 10%; An interministerial committee is responsible for monitoring and overseeing mining revenue. The Code has four implementing texts that have come into force.

0 Online information from the MPEM, viewed at: http://www.petrole.gov.mr.

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4.4  Manufacturing

4.1.  A Strategy for the Development of the Mauritanian Industrial Sector (2015-2019) was adopted in 20150, the fifth since the 1960s. The manufacturing sector, excluding the fish-processing industry (Section 4.2), accounted for about 4% of GDP in 2017. It included heavy industrial activity in the extractive industries (for example iron ore enrichment, see Section 4.4); a formal manufacturing sector consisting of a few SMEs engaged in processing local and import-substitution products; and the informal sector comprising many primarily artisanal activities. Any attempt to develop industrial activity in Mauritania faces many constraints (arid climate, narrow domestic market, difficulties for companies to access water, energy, skilled labour and credit; red tape and governance problems; and heavy, cumbersome taxation).

4.4.1  Cement and construction materials

4.1.  Nevertheless, some industrial units have managed to develop and even to find outlets in subregional markets. For example, the construction industry and its products are divided up among a few government-owned companies and around half-a-dozen private groups, which control both imports and domestic production. Other industrial units have developed in partnership with foreign investors. Thus, cement is partly imported even though Mauritania has several cement plants such as Ciments de Mauritanie (ASLM Group0), or the recent Ciments du Sahel (Senegal) set up in 2016. There is a "consumption" tax on cement imports of 3,000 old ouguiyas per tonne according to Article 230 of the 2017 CGI (Section 3.1.5.3).

4.2.  The Arab Metal Industries Company (SAMIA) is based in Nouakchott and mines local quarries for plaster, gypsum and marble. It has a capacity of 100,000 tonnes, and is owned 50% by the State company SNIM and 50% by the Industrial Bank of Kuwait; it exports gypsum. 0 For these products, the applied rate of customs duty increases progressively with the level of processing, which means that the effective protection given to producers of finished goods is greater than that indicated by the nominal rates. Overall, imports of products that compete with domestic products are highly taxed: on arrival, the cost of products such as tiles, sanitary ware and window glass rises by some 50%; for reinforcing bars, plaster and paint, the increase is one third. The consumption tax of 4,000 old ouguiyas per tonne on imports of reinforcing bars (HS 721590) introduced by the 2016 Finance Law has been raised to 15,000 old ouguiyas per tonne in the 2018 CGI (Section 3.1.5.3).

4.4.2  Sugar

4.1.  Mauritania imports more than 200,000 tonnes of sugar annually, or about 30 kg per capita, making it one of the world's biggest consumers. Mauritanian imports of sugar come partly from Brazil (Chart 4.5).

4.2.  According to the authorities, Mauritania is not currently applying any quantitative restriction on imports of sugar for economic purposes. However, a consumption tax of 7.5% is levied (solely) on imports of lump and powdered sugar (Section 3.1.5.3).

0 Online information viewed at: http://www.commerce.gov.mr/IMG/pdf/strategie_industrielle_ccm_aout_2015.pdf.

0 Online information viewed at: http://www.asmlgroup.mr/construccion.html.0 Online information viewed at: http://www.samia.mr.

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Chart 4.14 Imports of sugar (HS 1701) by Mauritania, 2011-2016

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Source: WTO Secretariat calculations based on data from the UNSD Comtrade database; and United Nations, ITC TradeMap.

4.3.  Mauritania's dependence on imports of sugar, whose world price has soared since 2008, burdening the country's foreign exchange reserves, has led the authorities to envisage domestic production. A US$340 million integrated project was launched in 2010, including the growing of sugar cane and the production of refined sugar, electricity, ethanol, animal feed, bags of molasses and fertilizer. The reservoir of the Foum Gleita dam holds 500 million m3 that can be extended to 1,100 million m3. The aim of the project is to produce 50% of domestic sugar needs by 2020 and contribute to improving access to electricity. The Mauritanian Government and its international partners, in particular the Sudanese company Kenana, were to have financed 60% of the construction of the sugar production complex. However, after the sugar plant was established the Sudanese partners apparently withdrew. There was no production in 2017.

4.4.3  Other agri-food industries

4.1.  A number of food industries (such as the Mauritanian milling company Grands moulins de Mauritanie0) are the outcome of partnerships between foreign private groups and Mauritanian groups. At the time of their creation these enterprises may receive, by ministerial order, a whole range of tax breaks, whether or not they export. For example, the company FAMO Mauritanie, set up in 1982 by French and Mauritanian industrialists and specializing in the marketing and manufacture of edible pasta and couscous, obtained, at the time of its creation by order, full exemption from customs duties and charges on inputs used in the manufacture of exported products.0 This is necessary because for agri-food products and for beverages the average applied rate of customs duty on imports of inputs is higher than the rates applied to semi-processed and processed exported products, in all likelihood producing negative effective protection that harms the competitiveness of processed goods.

4.2.  The 2014 Finance Law created a "consumption tax" on imported mineral water (HS 2201), which was raised to 50% of the customs value by the 2016 Finance Law and to 80% by the 2018 Finance Law (Section 3.1.5.3).

4.4.4  Medicines

4.1.  The trade and distribution of medicines fall under the responsibility of the Ministry responsible for health (MS), and specifically the Directorate of Pharmacy and Laboratories (DPL), which in principle controls the registration and wholesale price, before tax, of medicines and their import and sales structures. The Government has given exclusive import and distribution rights for a list of pharmaceutical products to the Central Procurement Agency for Medicines, Medical Equipment and Medical Consumables (CAMEC). CAMEC carries out its procurement by tendering and sells on the

0 Online information viewed at: http://grandsmoulinsmauritanie.com/presentation-2.0 Online information viewed at: http://anac.mr/ANAC/JOf/1998/934%20fr%20sc.pdf.

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products to approved distributors with margins fixed by the State at each stage of the distribution channel.0

4.2.  Nevertheless, illegal imports of medicines flourish in the absence of effective import controls.0 It is difficult to obtain the list of authorized products; hundreds of unauthorized products reportedly circulate in the country. However, the DPL has made efforts leading to the publication of a national nomenclature of registered products (about 2,000 presentations in 2011). An analysis of this nomenclature shows that dozens of products that are highly prescribed and sold in Mauritania are not included and are therefore non-compliant. The official wholesale medicine importers are in principle obliged to have their imports approved by the DPL but it appears that some do not do so and others only partially.

4.5  Services

4.5.1  Overview

4.1.  Most of Mauritania's trade in services consists of the sale of fishing licences, as far as income is concerned, and freight charges, but above all engineering services for mining companies, in the case of expenditure. The only notification made by Mauritania concerning trade in services since 2002 was the contact point for matters relating to trade in services, namely the Foreign Trade Directorate in the Ministry of Trade, Crafts and Tourism. Overall, the ministries concerned do not appear to have been made aware of matters relating to international trade in services or the General Agreement on Trade in Services (GATS).

4.2.  However, Mauritania has several regulatory authorities that are responsible for supervising competition within their respective areas of competence, in particular the Government Procurement Control Authority, the Transport Regulatory Authority (Section 4.5.1), and the Multisectoral Regulatory Authority, responsible for regulating activities in the water, electricity, telecommunications and postal services sectors.0 The transport sector has its own regulatory authority.

4.5.2   Transport

4.1.  Since 2010 the Government has launched various reforms of the transport sector as described in a sectoral policy letter covering the period 2011-2025. The stated aim of these reforms is to make the transport sector a factor for economic development and the reduction of regional imbalances, which could encourage international trade and regional integration, thereby helping to open up the country both internally and externally, reduce transport costs, improve the safety and quality of transport services and produce greater competition among the various modes of transport.0 Shortcomings in the transport system and the weaknesses of the road network effectively increase the cost of products, making them less competitive on world markets.

4.2.  The Government therefore decided to build the 150-km Nouakchott–Boutilimit highway, after the construction of the road linking Nouakchott and Nouadhibou. Completion of these projects would facilitate Mauritania's participation in trade between Europe, the Maghreb and Sub-Saharan Africa. The Ministry of Infrastructure and Transport (MET), responsible for regulating this sector, has a website on which some laws and regulations on the road transport sector in particular can be found.0 Rail transport is not very developed. The only railway (675 km long), managed by the SNIM (Section 4.3), links Zouérate with the port of Nouadhibou and is mainly used for transporting iron ore.

4.5.2.1  Road transport

4.1.  The North-South road corridor along the Mauritanian coast is one of the only viable and active transport routes between North Africa and Sub-Saharan Africa. Traffic appears to have grown strongly since 2011, reaching over 1,000 trucks per month (excluding trade in used vehicles). The trucks are either destined for Mauritania or in transit to Mali or Senegal. This corridor has potential

0 Online information viewed at: http://www.camec.mr.0 Ministry of Health (2011), Processus d'élaboration du Plan national de développement sanitaire

(2012-20).0 Law No. 2001-18 of 25 January 2001.0 Transport sector policy letter (2011–2025).0 Online information from the MET, viewed at: http://www.transports.gov.mr/index.php?lang=fr.

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for further development to become an export route for Mauritania's exports, in particular from Nouadhibou. According to the Diagnostic Trade Integration Study (DTIS)0, the northbound return journey of empty trucks offers the Nouadhibou fishing industry an opportunity to open up export markets for fish towards southern Europe. In November 2017, Mauritania and Algeria signed an agreement for the opening of a border crossing point at Tindouf. The objective of the agreement is to establish a second North-South corridor.

4.2.  Following the 2005 reform which reorganized and liberalized road transport (Ordinance No. 2005-010 of 8 November 2005), in 2011 Mauritania established an Authority for the Regulation and Organization of Road Transport (AROTR) under the MET.0 The purpose of the authority is to ensure that road transport (passenger and freight) is organized in such a way as to ensure a level playing field among the various actors. Mauritania has not ratified any of the main conventions on goods road transport, inter alia those of ECOWAS, but its recent legislation is quite close to the ECOWAS legislation. In particular, foreign-owned companies are authorized to establish passenger and goods transport companies in Mauritania.

4.3.  Mauritania has a bilateral road transport agreement for goods (but not passengers) with Mali, signed on 29 April 1987. An agreement with Senegal dates from 15 February 2005 but was suspended as at March 2018. Mauritania has reportedly also signed a road transport agreement with Morocco allowing Mauritanian trucks to operate in Morocco. On the other hand, the Mauritanian regulations at March 2018 restricted the entry and movement of goods transport vehicles from Senegal, which are obliged to transfer their loads to Mauritanian trucks. In fact, most of the traffic on the North-South road corridor appears to consist of Moroccan trucks.

4.4.  The "taxes" levied on foreign goods trucks entering Mauritania rose sharply in January 2017, according to press reports.0 A "tax" was reportedly raised from 440,000 old ouguiyas (about €1,000) to 637,000 old ouguiyas per heavy truck. According to the Customs, the tax is only 106,000 old ouguiyas (long-chassis lorries) or 76,000 old ouguiyas (short-chassis vehicles). The charge for vehicles in transit appears to vary between 148,000 and 246,000 old ouguiyas.

4.5.  In 2010, the Government established a public passenger transport company covering the whole of the national territory, under the supervision of the MET, in order to improve the supply of urban transport. Private companies have recently begun to provide interurban transport. The public transport company is currently engaged in urban passenger transport; its bylaws would also allow it to provide goods transport.

4.5.2.2  Maritime transport and port services

4.1.  Mauritania has a liberal market access policy as regards maritime transport services, partly reflecting the absence of any significant national fleet. Commercial navigation between Mauritanian ports (cabotage) is reserved for Mauritanian-registered vessels except in the case of a reciprocity agreement.0 The 1995 Merchant Marine Code was replaced by a new Code in 2013 but the latter was not available on the MET website. The market for international liner shipping services is dominated by two foreign-owned consortiums (Delmas and Maersk), which together account for 85% of the market.

4.2.  The port infrastructure consists primarily of the Autonomous Port of Nouakchott, called the Friendship Port (PAN-PA), under the supervision of the MET, and the Autonomous Port of Nouadhibou, under the responsibility of the Nouadhibou free zone. They are both government-owned industrial and commercial establishments. The Nouadhibou Port is a free port and includes a mineral ore port and a petroleum terminal, as well as a fishing and commercial port. The SNIM runs the mineral ore port, while NAFTAL manages the petroleum terminal. The PAN-PA claims that it complies with the provisions of the ISPS Code.0 It receives most of Mauritania's imports.0 Traffic in the PAN-PA has grown at an average annual rate of 9.5% since starting operations in 1986, rising from under 400,000 tonnes in 1987 to 3.8 million tonnes in 2015.

0 Diagnostic Trade Integration Study.0 Law No. 2011-031 of 5 July 2011 and Decree No. 2011-221 of 22 September 2011.0 Online information viewed at: http://afrique.le360.ma/mauritanie/economie/2017/01/08/8784-

mauritanie-forte-hausse-de-la-taxe-douaniere-sur-les-camions-en-provenance-du-maroc-8784.0 Online information from the MET, viewed at: http://www.transports.gov.mr.0 The ISPS is the International Ship and Port Facility Security Code, which came into force on 1 July 2004.

It consists of measures aimed at strengthening the security of ships and port facilities, adopted by the International Maritime Organization (IMO).

0 The PAN-PA has a website that is regularly updated. Viewed at: http://www.panpa.mr.

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Container traffic has risen from 56,500 20-foot equivalent units (TEU) in 1988 to 117,000 TEU in 2015, an average growth of 12.5% per year.

4.3.  The volumes imported are ten times those exported, the main products being cement, petroleum products, wheat and sugar. There are no regular maritime links between Mauritania and its neighbours. Rapid growth has meant that current capacity (900,000 tonnes) of the PAN-PA has been exceeded, and ships must often wait for a long time to unload their cargoes, especially containers. Expansion works to address these problems were completed in 2014, increasing the PAN-PA's total capacity from three to seven berths, which can take third-generation container vessels and 35,000- to 40,000-deadweight tonne (dwt) tankers, and a petroleum jetty for 10,000-dwt vessels.

4.4.  Studies were being undertaken in 2017 for the construction of a container terminal at the PAN-PA. Negotiations were apparently also under way in March 2018 with a number of potential concessionaires for its management, as well as a new delimitation of the port zone with a view to the creation of the container terminal.

4.5.  There is no explicit limitation on foreign capital participation in companies supplying port services (with the exception of pilot, towing and berthing services, which are provided solely by the PAN-PA and the Autonomous Port of Nouadhibou). Handling operations at the PAN-PA are carried out by private operators who have established the Port Facilities Company (SEP), a privately owned company, to manage the handling equipment leased to its shareholders. Shipping agencies are also private.

4.6.  However, the port infrastructure still suffers from the multiplicity of supervisory authorities (the lack of an independent single authority for the management of port affairs), the uncontrolled liberalization of transport auxiliaries, the insufficient professionalization of operators and actors, the non-existence of a legal framework for consultation and coordination that would facilitate the passage of goods through the ports, and the marginal nature of river traffic.0 It was partly to address these problems that the Maritime Affairs Coordination and Study Unit was set up in 2007 for the purpose of upgrading the maritime sector with a view to its development and preparing it for opening up to private investment. According to the authorities, studies are being carried out to bring down the cost of port use, and to introduce stricter regulations for the approval and control of auxiliaries in order to make them more professional.

4.5.2.3  Air transport and airport services

4.1.  Following several unprofitable forays in the air transport field (Air Mauritanie, Mauritania Airways), in January 2011 the Government established a new majority State-owned company (Table 3.7), Mauritania Airlines International (MAI), under the responsibility of the MET. In 2017 MAI served eight destinations in Africa (and Las Palmas de Gran Canaria) as well as three domestic destinations, using four aircraft, the latest acquired in December 2017 (the Government supported MAI's operations by providing two new aircraft).

4.2.  In 2017, MAI announced that it was nearing profitability after six years in operation. A new international airport was inaugurated in 2016, 25 km from the capital Nouakchott, with a capacity of two million passengers, far more than the 210,000 passengers transiting through the airport every year. The country has two other airports, as well as seven secondary airfields.

4.3.  As the sole national company, MAI enjoys many commercial privileges. However, Mauritania is a signatory to the Yamoussoukro Declaration and Memorandum of 1988, which liberalized the African air space and allows full competition among African companies. The other air agreements signed by Mauritania with non-African companies generally cover the first four freedoms of the air.

4.4.  Mauritania has also adopted a new Law No. 2011-2020 containing the Civil Aviation Code, to replace the 1978 legislation. The Code provides that "air tariffs for passengers, freight and mail may be set freely by airline carriers in line with market conditions and subject to prior information or approval of the competent administrative authority", by decree of the Council of Ministers, which is tantamount to control of the tariffs charged.0

0 Communication concerning the Transport Sector Policy Letter 2011, 25 September 2012.0 Online information viewed at:

http://www.anac.mr/IMG/pdf/DECRET_PORTANT_TEXTE_APPLICATION_CODE_Fr.pdf.

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4.5.  The Mauritanian Airports Company (SAM) enjoys exclusive rights for 30 years (granted in 1994) for the installation, operation and maintenance of airport facilities under a concession (Nouakchott and Nouadhibou) or management contract (other domestic airports), with the exception of the tasks coming under the authority of the Agency for Aerial Navigation Safety in Africa and Madagascar (ASECNA). The SAM is a limited company in which the State holds 10% of the capital, in association with ASECNA (10% of the capital), private national shareholders (78% of the capital), and the Bordeaux Chamber of Commerce (2%). ASECNA provides guidance for aircraft at Nouakchott and Nouadhibou, air traffic control, in-flight information, forecasting and transmission of meteorological data, and is in charge of the design, introduction and management of installations and services whose purpose is to transmit technical messages and handle traffic. 0 Ground handling services were apparently liberalized by the 2011 law but are said to remain exclusively reserved for MAI.0

4.6.  The National Civil Aviation Agency (ANAC), created in 2004, is the air transport sector's regulatory authority, under the supervision of the MET.0 It implements government policy on civil aviation; it is also responsible for the promotion of civil aviation and draws up technical regulations in accordance with International Civil Aviation Organization (ICAO) standards. Once the ANAC had considerably enhanced the control of Mauritanian air safety, MAI was again allowed to enter European skies in December 2012, and Mauritanian carriers were accordingly removed from the EU's "black list" showing all the airlines banned from operating in its airspace.0

4.5.3  Telecommunications services

4.1.  Telecommunications services in Mauritania have benefitted from several reforms since the previous TPR in 2011, in particular with the adoption of a new law in 2013 that replaced the earlier Law No. 99-019. The latter had already opened up cellular, paging and internet services to competition, and also opened up the capital of the national telecommunications company as well as the fixed network. A relatively large inflow of foreign investment followed liberalization of the sector. The aim of the 2013 law is to enhance competition and the role of the Regulatory Authority (ARE) created in 2003 on the basis of a law of 2001; since then the ARE has been authorized to act ex post. The new law also facilitates the supply of services that do not involve spectrum use, under a general authorization. The ARE has a website that is regularly updated, from which all the regulations can be downloaded.0

4.2.  Three companies (all partly foreign-owned) are present in Mauritania's market under global licences. Among these, the national company Mauritel was privatized in 2001 (54% of its shares went to Maroc Telecom, of which 3% were retroceded to employees); all three operate in all segments (fixed, mobile and 3G internet). Tunisie Télécom owns 51% of Mattel, the country's leading mobile telephony operator, unchanged since 2011, while Chinguitel (90% owned by Sudatel (Sudan)) has had the third licence since July 2006.

4.3.  The National Regulatory Council decides whether or not to allow another operator, on the basis of the level of competition in the market. It issues licences and takes all the strategic decisions. In 2016, Chinguitel was chosen as the universal access provider. Universal services are, in principle, financed through the Joint Universal Service Fund, to which operators pay 3% of their turnover net of their interconnection charges. In 2011, a decree required that at least 1% of the funds should go to telecommunications whereas previously they had been spent chiefly on electrification (the ARE is responsible for regulating electricity, telecommunications and postal services, see Section 4.5.1).

4.4.  The rates for fixed, mobile and internet (data) services are determined by the operators but require prior approval by the ARE; the rates for mobile services must be the same throughout the country. The rates for fixed services are set by the ARE and can vary depending on the region and the distance. "Off-net" (between two networks) and "on-net" (within the same network) rates must be identical in order to avoid "club effects" whereby operators try to promote calls within their network so as not to have to pay the call termination charge.

0 Online information viewed at: http://www.ais-asecna.org/pdf/circulaires/dakar/aic16go02b.pdf.0 The conditions are laid down in the decree implementing the law. Viewed at:

http://www.anac.mr/IMG/pdf/DECRET_PORTANT_TEXTE_APPLICATION_CODE_Fr.pdf. See also Order No. 0664 of 7 March 2010 entrusting the exercise of ground handling services to MAI. Viewed at: http://anac.mr/ANAC/JOf/2010/1218%20fr%20sc.pdf.

0 Online information from the ANAC, viewed at: http://anac.mr.0 Online information viewed at: http://ec.europa.eu/transport/air-ban/doc/list_fr.pdf.0 Online information from the ARE, viewed at: http://www.are.mr.

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4.5.  Interconnection is mandatory and negotiated among operators and then submitted to the ARE for endorsement; the tariffs must be duly approved. The ARE regularly monitors compliance by operators with their commitments, in particular as regards quality.0

4.6.  In December 2010, the Government introduced a minimum threshold for termination rates for international telephone calls to Mauritania.0 The threshold is set at €0.22/minute payable by foreign companies to Mauritanian operators, of which at least €0.08 is taken by the State as tax. Previously there was no threshold and the share going to Mauritanian operators had reportedly fallen below €0.05.

4.7.  The first fibre optic cable linking Mauritania to Europe and the other West African countries, on which work was launched in December 2010, is said to be operational. The European Investment Bank (EIB) financed €8 million, or 35% of the cost, and the three operators participate in the financing. The ARE supervises cable access tariffs. Internet capacity has risen from 1-2 GB/s to 15 GB/s, compared with a total ACE (Africa Coast to Europe) capacity of 269 GB/s.

4.5.4  Postal services

4.1.  The Postal Law dates from 2004.0 It provides for three different regimes. The first is a regime of exclusivity reserved to the historical operator Mauritanian Postal Services Company (Mauripost), set up in 1999; Mauripost has exclusive responsibility for all mail weighing up to 1 kg. Over this weight, private postal operators may provide services under an authorization issued by the ARE. However, as the reserved weight of 1 kg is highly restrictive for private operators, and given that most of their turnover comes from this reserved segment, in order to stimulate the market and boost competition in 2012 the ARE reduced the threshold to 300 grams for domestic or international delivery. Mauripost also offers postal services, including the universal postal service, and private operators contribute 2% of their turnover to its funding. The second regime, approval, is open to any natural or legal person wishing to operate in the segments open to competition. Six operators have been authorized to provide these non-reserved services, including several international operators.0 The third regime concerns postal financial services.

4.5.5  Insurance

4.1.  Mauritania's insurance market is not very developed, partly because of poor management and partly because of the population's low purchasing power. National insurers may use the reinsurance services of foreign companies without restriction.0 However, of the 16 approved insurance companies only two or three are both solvent and able to seek international reinsurance. The market also has insurance brokers (Gras Savoye and Ascoma) with majority foreign-owned capital. No significant changes have taken place in the legislation or regulations governing the Mauritanian insurance sector since 2010, but in February 2016 the press reported that the Government was seeking to improve the regulatory situation.0

4.2.  The regulations in force are not available on a website open to the public. The main law is the Insurance Code of 1993.0 Mauritanian or foreign insurance companies wishing to engage in business locally must obtain approval granted by order of the relevant Ministry, and must, in principle, be established in the form of public limited companies. Branches of foreign companies may also be approved provided they are set up in the form of a public limited insurance company after three years. The same company may offer both life and non-life insurance services.

4.3.  In March 2018, the market was still regulated by the Insurance Supervisory Directorate in the Ministry of Trade, Industry and Tourism (MCIT). The creation of an independent regulator to ensure effective control of the sector and be able to withdraw approval from non-compliant companies has

0 See for example: http://www.are.mr/index.php/qualite-de-services/1221-sanctions-pecuniaires-appliquees-aux-operateurs-des-telecommunications.

0 Decree No. 2010-268 of 12 December 2010.0 Law No. 2004-015 on postal services.0 Online information from the ARE, viewed at: http://www.are.mr/details-2-13-156.html . 0 Decree No. 98-46 of 18 June 1998 authorizing approval of insurance and reinsurance companies in

Mauritania.0 Online information viewed at: http://fr.le360.ma/monde/mauritanie-vers-une-reorganisation-du-secteur-

des-assurances-63757.0 Law No. 93-40 of 20 July 1993 containing the Insurance Code, Article 198. Viewed at: http://www.droit-

afrique.com/images/textes/Mauritanie/Mauritanie%20-%20Code%20assurances.pdf.

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apparently been envisaged since 2016. In any event, the sector seems primarily to require major assistance for the training of insurers, reinsurers and actuaries.

4.4.  The Mauritanian Insurers' Technical Committee should in principle represent the interests of insurance companies operating in the market (Article 341 of the Code) and give its opinion on new approvals, but in March 2018 this Committee did not exist. No statistics are published, nor is there any annual report on the sector.

4.5.  In 2017, the market focused primarily on the compulsory civil liability insurance for motor vehicles, which represented about 80% of premiums collected according to the press – an abnormally high figure even by regional comparison.0 In practice, the majority of other risks are insured abroad either through optional reinsurance or against a commission paid to the local insurance companies ("fronting" commission), which act essentially as intermediaries. This situation reflects the local market's lack of capacity. Although the Insurance Code (Article 199) stipulates that, failing a waiver, only resident companies may insure risks within Mauritania, "fronting", although forbidden by the Government0, is the rule for major risks, especially in mining.

4.6.  Since July 2017 the minimum capital requirement is 300 million old ouguiyas (about US$860,000). A recent decree reportedly requires that this minimum capital be deposited in a blocked account with the Public Treasury, which represents a disadvantageous immobilization of assets for insurers.

4.7.  Civil liability insurance for motor vehicles is compulsory, as are insurance of imported goods and construction risk insurance (Article 180). Premiums are determined freely by the insurance companies, with the exception of civil liability insurance for motor vehicles and imported goods insurance, for which there is a minimum rate. However, some insurance companies are said to offer the motor vehicle civil liability insurance at a third of the official rate of 31,006 old ouguyias (US$89) per year.

4.8.  All imports of goods into Mauritania must be insured by an insurance company approved by the Ministry responsible for trade (Article 177 of the Code). In practice, despite a provision establishing a fine of 25% of the value of the imported goods in the event of violation, the requirement that import insurance be taken out with an approved insurance company in Mauritania is apparently not implemented. An upward adjustment in the customs value of the imports is said to be made by the Customs if the goods are not accompanied by a local insurance certificate. According to the Insurance Supervisory Directorate, the insurance sector is highly disorganized and totally opaque.

4.5.6  Banking and other financial services

4.1.  A financial sector development strategy for the period 2012-2017 was adopted in 2012. The goals of the strategy are to: (i) increase the sector's stability and transparency; (ii) ensure access to financial services at reasonable cost for all actors; (iii) improve the legal and judicial framework; and (iv) develop bank savings and lending in the country. New regulatory texts were adopted in 2012 in order to improve in particular the external audit of banks; internal control of banks; adoption of the Basel II solvency standards; and combat money laundering.0

4.2.  In this new framework, the Central Bank of Mauritania (BCM) has gradually introduced risk-based preventive supervision as well as a secure line with banks for real-time data transmission, and finalized the banking chart of accounts in accordance with international accounting standards (IFRS). These modernization efforts have been supported by AFRITAC in cooperation with the Mauritania Professional Banking Association. The Government has also taken into account the recommendations of the financial sector evaluation programme carried out in 2014 with IMF technical assistance. Implementation of the new regulations concerning the

0 Online information viewed at: http://afrique.le360.ma/mauritanie/economie/2017/07/07/13224-mauritanie-une-garantie-de-300-millions-douguiyas-exigee-pour-creer-une-compagnie-dassurance.

0 See Circular letter of 17 July 2014. Viewed at:http://www.damane-assurances.com/wp-content/uploads/2014/07/Ciculaire-Interdisant-le-fronting-en-

RIM.pdf.0 These texts are Instruction No. 02/GR/2012 specifying the external audit conditions for credit

institutions, Instruction No. 01/GR/2012 on internal control conditions for credit institutions, Instruction No. 009/GR/2012 establishing a minimum capital requirement and rules for calculating the net worth of credit institutions, and Law No. 2016-013 of 15 April 2016 amending certain provisions of Law No. 2005-048 on combating money laundering and the financing of terrorism.

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classification of loans and constitution of provisions has led to a decline in the rate of non-performing loans from 28% in 2010 to under 20% in 2015.

4.3.  Five new banks, as well as a leasing company, were approved between 2010 and 2017 following the favourable opinion of the Monetary Policy Council (Table 4.5). Five of the active banks are private, with a majority of the capital foreign-owned. Bank credit totalled 411 billion old ouguiyas in 2016 (US$1.17 billion, or 25% of GDP). Short-term loans continue to represent 74% of total credit. The non-bank financial system comprises some 20 microfinance institutions, a deposit and development fund, the postal financial services, insurance companies (see above), two social security schemes and some 30 authorized exchange bureaux.

Table 4.18 Loans granted by Mauritanian banks, 2010 and 2016Name of bank Loans

(billions of old ouguiyas)2010 2016

Banque Al Amana pour le développement et l'habitat (BEA) 15.1 37.6Banque Al Wava mauritanienne (BAMIS) 13.7 21.2Banque mauritanienne pour le commerce international (BMCI) 45.4 62.1Banque nationale de Mauritanie 32.5 64.5Banque pour le commerce et l'industrie SA. Mauritanie (BCI) 17.0 27.0Banque pour le commerce et l'investissement en Mauritanie (BACIM) 7.2 12.7Attijariwafa (ex BNP PARIBAS) 7.2 42.9Chinguity Banque 4.4 7.4Générale banque de Mauritanie (GBM) 32.2 30.8Qatar National Bank n.a. 5.4Société générale de Mauritanie 13.8 32.4Banque Islamique de Mauritanie (BIM) n.a. 7.8Banque Mouamalat Sahiha (BMS) n.a. 16.9Banque Populaire de Mauritanie (PM) n.a. 29.0Nouvelle Banque de Mauritanie (NBM) n.a. 13.6Total 188.5 410.8

n.a. Not available.Note: In June 2011, US$1 = c. 275 old ouguiyas, and in 2016 US$1 = 353 old ouguiyas.Source: Central Bank of Mauritania.

4.4.  The increase in the number of banks operating in Mauritania has been followed by a significant reduction in the weighted average interest rate on bank credit (Section 1.2.1), and the intensification of competition among banks has also led to an improvement in the financial inclusion indicators: in 2014, only 20% of the adult population in Mauritania had an account with a financial institution. In 2017 the figure rose to 29%, a level that is nearer to the averages observed in comparable income countries. One bank (Chinguity Bank) is jointly owned by the Mauritanian State and the State of Libya; all the other banks are private.

4.5.  The BCM regulates the Mauritanian financial sector and has a website on which the texts of the various applicable laws are posted. There have been no major changes affecting market access or national treatment of foreign banks since the previous TPR in 2010. The sector is open to credit institutions whose head offices are abroad. Pursuant to Ordinance No. 2007/020, which is the main regulation governing credit institutions, the terms for their approval must be "at least equivalent to those for banks established in Mauritania". According to the BCM, all the operating banking institutions had put up minimum capital equivalent to at least 6 billion old ouguiyas (US$17 million), as provided for by a BCM instruction of 2009.0

4.6.  Pursuant to Article 14 of the Ordinance, credit operations by institutions whose head offices are abroad "shall be limited by not taking into account, when calculating their prudential ratios, the guarantees granted by their parent companies".0 Consequently, when calculating their prudential ratios, subsidiaries of foreign institutions may not deduct from their commitments the guarantees from their parent companies. As indicated by UNCTAD, it is possible that this provision deprives the Mauritanian financial market of financial cover by the international banks present in Mauritania.0

0 Online information from the Central Bank of Mauritania, viewed at: http://www.bcm.mr/R%C3%A9glementation/Prudentielle/Documents/Instruction%2007_GR_2009.pdf.

0 Online information viewed at: http://www.bcm.mr/IMG/pdf/ordonnance_no_2007_020_portant_reglementation_des_etablissements_de_credit_version_fr.pdf.

0 UNCTAD (2009).

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4.7.  There is also an Islamic financial system in Mauritania, whose basic principle is a prohibition on speculation and interest. Profit margins or cost-plus (Mourabaha) are acceptable. Under this system, the bank finances the purchase of a good or asset by buying it on behalf of the customer and increases the price before selling it on to the customer.

4.8.  Banks are subject to the BIC tax. In addition, the tax on financial operations (TOF) applies to the interest, commissions and other fees received by banks and financial institutions at a rate of 14% (CGI Articles 202 to 212); it is paid on the credit and debit interest of customers. However, in order to encourage loans under the Investment Code it is not levied on income from first investment loans or credit for the extension of activities contracted with banks and financial institutions under medium- and long-term financing agreements.

4.9.  The reforms also aimed to strengthen the prudential and management standards applicable to microfinance institutions. In 2015 the sector comprised some 20 approved institutions, including four networks, with an estimated membership of over 272,000. Despite a 14% increase in 2015, the stock of outstanding loans distributed by microfinance institutions remains very low, about 1.8 billion old ouguiyas, or barely 0.64% of total lending by the banking system. Some microfinance institutions are partly owned by foreign companies.

4.5.7  Tourism

4.1.  Mauritania still has plans for a new National Tourism Development Strategy.0 In this context, a diagnostic study of the tourism sector's problems was carried out with UNDP support in 2006-2007. With over 700 km of Atlantic coast composed of beaches; two natural parks (the Banc d'Arguin in the north and Diawling in the south), classified as world heritage sites by UNESCO; and the ancient cities of Chinguetti, Ouadane, Tichitt, and Oualata in the heart of the Sahara desert, with their medieval buildings, their libraries and their rare manuscripts, Mauritania has undoubted tourism potential. The country's tourism image has, however, been considerably damaged by the repeated kidnapping of European tourists in 2007.

4.2.  The total number of charter flights to Mauritania, which stood at 80 flights for the 2005-2006 season, has now fallen to zero. According to the diagnostic study of the sector carried out in 2017, the resumption of charter flights will be essential to revive international tourism in Mauritania, owing to the lack of competition in air transport (Section 4.7.2.4), so as to be competitive in price terms with competing destinations.

4.3.  The total number of visitors, as measured by passenger arrivals at Nouakchott Airport, was estimated at 163,000 visitors in 2015 compared with 132,000 in 2010. The number traveling for tourism purposes was 12,000 in 2003 and estimated to be 3,000 in 2017. Accommodation capacity in 2016 was about 66 hotels and some 241 hostels and 58 furnished apartment hotels for a total of over 3,300 rooms. This is a clear increase over the 42 hotels and 105 hostels and apartments recorded in 2009.

4.4.  Mauritania has several legislative texts governing tourism in principle, which are available on the website of the Ministry of Trade, and which have not changed since the previous TPR in 2010, with the exception of a new Order published in October 2016, putting in place the standards for the classification of hotels laid down in Decree No. 98-63 of 16 August 1998.0 Provided that they are applied and regularly monitored, the new classification standards should lead to an overall upgrading of establishments. The possibility of obtaining a visa upon entry into Mauritania is another encouraging factor for tourism.

4.5.  Travel agencies, in particular for international transport ticketing, must have a Mauritanian majority partner.0 There is no restriction on foreign participation in tour operators. In Mauritania, only Mauritanian citizens may be guides. Decree No. 97-030 draws a distinction between national guides, who can work throughout Mauritania, and local guides, who work as guides permanently in a local area or wilaya. Tourism is the only services sector in which Mauritania made specific commitments under the GATS during the Uruguay Round.

0 Online information viewed at: http://www.commerce.gov.mr/spip.php?article137.0 Order No. 934 of 21 October 2016 establishing the standards for the classification of tourist

accommodation and catering establishments defined by Article 2 of Decree No. 98-063 of 16 August 1998.0 Decree No. 2000-05/PM/MCAT establishing the regulations on travel agencies and offices. Viewed at:

http://www.droit-afrique.com/upload/doc/mauritanie/Mauritanie-Decret-2000-05-agences-bureaux-voyage.pdf.

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4.6.  In 2018 tourism was under the authority of the Ministry responsible for trade. The Directorate of Tourism is responsible for government policy on tourism development. The Directorate's financial resources are very scant. In 2016 its annual budget was 8.7 million old ouguiyas (US$250,000), less than in 2015 when it was over 10 million old ouguiyas. Overall, its budget has shrunk by 20% since 2007.

4.7.  Set up in 2002, the National Tourism Board (ONT) is a government institution responsible for managing, protecting and promoting the tourism heritage, including accommodation; the launching of new tourism destinations; and the preparation and coordination of all national and international tourism events. It has an annual budget of around 300 million old ouguiyas, coming almost entirely from a State subsidy. Its payroll accounts for 80% of its budget. Currently, according to the 2017 diagnostic study, the activities of the Directorate of Tourism and the ONT overlap because there is no guiding strategy.

4.8.  The tourism promotion tax (200 old ouguiyas (US$5.7) per person per night) provided for in Law No. 98-026 has not changed. It is payable in tourism accommodation establishments with the exception of youth hostels, and brings in between 15 and 20 million old ouguiyas a year.

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5  APPENDIX TABLES

Table A1. 1 Structure of imports, 2010-2016(US$ million and %)

2010 2011 2012 2013 2014 2015 2016World (US$ million) 1,707.7 2,452.7 2,970.6 3,978.5 3,641.8 3,703.4 2,173.8

(Percentage share)Total primary products 46.6 43.0 42.5 31.6 33.2 29.8 38.3 Agriculture 19.9 14.9 15.6 11.3 12.3 13.5 18.5 Food 19.4 14.5 15.2 11.0 12.0 13.3 18.2 0411 - Durum wheat, unmilled 4.8 4.0 4.7 2.7 3.0 2.9 3.9 0222 - Milk and cream, concentrated or

sweetened2.0 1.5 1.5 1.3 1.4 2.0 2.1

4211 - Soya bean oil and its fractions 1.4 1.2 1.1 1.0 1.0 1.1 1.8 0423 - Rice, semi-milled or wholly milled,

whether or not polished, glazed, parboiled or converted

2.2 1.3 1.8 1.4 1.6 1.6 1.4

0612 - Other beet or cane sugar and chemically pure sucrose, in solid form

2.7 1.0 0.7 0.5 0.3 0.7 1.1

1222 - Cigarettes containing tobacco 1.2 1.0 0.9 0.6 0.7 0.7 1.1 0741 - Tea, whether or not flavoured 0.6 0.5 0.5 0.4 0.5 0.4 0.9 Agricultural raw materials 0.5 0.5 0.4 0.3 0.3 0.2 0.3 Mining 26.7 28.1 26.8 20.3 20.8 16.3 19.8 Ores and other minerals 0.2 0.2 0.2 0.1 0.2 0.2 0.2 Non-ferrous metals 0.0 0.1 0.1 0.0 0.1 0.4 0.1 Fuels 26.5 27.8 26.6 20.1 20.6 15.7 19.5 3425 - Butanes, liquefied 1.3 2.1 1.6 1.3 1.2 1.0 1.3Manufactures 52.8 57.0 57.5 68.4 66.8 68.7 61.7 Iron and steel 3.2 4.7 2.6 1.8 2.6 3.4 3.0 6764 - Other bars and rods of iron and steel 0.0 1.5 1.4 0.8 1.1 0.8 1.6 Chemicals 4.4 3.5 5.1 4.0 4.1 3.9 5.5 5429 - Medicaments, n.e.s. 0.2 0.2 0.3 0.3 0.5 0.5 0.9 Other semi-manufactures 6.6 6.6 11.0 6.4 8.7 5.2 6.3 6612 - Portland cement, aluminous cement,

slag cement, supersulphate cement and similar hydraulic cements, whether or not coloured

2.2 1.5 1.4 1.2 1.7 1.6 1.9

Machinery and transport equipment 35.1 38.6 34.3 53.5 48.5 52.3 40.6 Power-generating machinery 6.0 3.0 2.2 1.0 3.7 1.3 1.6 Other non-electrical machinery 13.0 20.5 18.6 17.8 11.5 11.9 12.2 7239 - Parts, n.e.s. 4.1 7.9 5.2 5.9 5.4 5.2 5.5 7283 - Machinery 1.0 0.9 2.9 1.6 1.1 0.8 2.6 Agricultural machinery and tractors 0.4 0.4 0.4 0.4 0.2 0.2 0.3 Office machines and telecommunications equipment

1.0 1.4 1.2 0.7 0.8 1.0 1.6

Other electrical machinery 1.7 1.3 1.0 1.4 2.1 1.3 1.8 Automotive products 7.4 6.5 7.5 5.3 4.7 3.7 4.9 7812 - Motor vehicles for the transport of

persons, n.e.s.3.0 2.9 3.6 2.6 2.9 1.6 2.6

7843 - Other parts and accessories of motor vehicles

0.3 0.2 0.3 0.2 0.3 0.8 0.9

Other transport equipment 6.0 5.7 3.7 27.3 25.6 33.1 18.5 7937 - Tugs and pusher craft 3.5 1.0 0.0 1.9 2.5 9.0 10.2 7935 - Light vessels, fire-floats, dredgers 0.7 2.4 0.7 23.3 18.9 20.2 2.8 7921 - Helicopters 0.2 0.0 0.0 0.6 0.0 1.8 2.1 7929 - Parts, n.e.s. 0.0 0.0 0.0 0.0 0.8 0.2 1.3 Textiles 1.2 1.1 1.0 0.7 1.0 1.0 2.1 Articles of apparel 0.3 0.4 0.3 0.3 0.5 0.3 0.6 Other consumer goods 1.9 2.1 3.2 1.6 1.4 2.7 3.6Other 0.6 0.0 0.0 0.0 0.0 1.5 0.0

Source: WTO Secretariat calculations based on data from the UNSD Comtrade database (SITC Rev.3); and United Nations, ITC TradeMap for 2015.

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Table A1. 2 Structure of exports, 2010-2016(US$ million and %)

2010 2011 2012 2013 2014 2015 2016World (US$ million) 1,818.7 2,458.0 2,623.8 2,462.5 2,139.8 1,831.7 1,622.8

(Percentage share)Total primary products 64.3 86.6 87.9 85.7 84.9 83.8 81.2 Agriculture 14.5 17.7 23.5 18.9 31.6 38.5 38.8 Food 14.5 17.6 23.5 18.8 31.6 38.4 38.8 0363 - Molluscs and aquatic invertebrates,

fresh, chilled, frozen, dried, salted or in brine

5.9 10.3 14.5 8.1 10.6 14.6 15.2

0342 - Fish, frozen 6.6 4.0 5.5 6.8 13.5 11.8 12.8 0814 - Flours, meals and pellets, of meat

etc.0.6 1.4 1.4 1.7 3.6 5.6 5.6

0341 - Fish, fresh or chilled 0.6 0.7 1.1 1.0 1.2 2.9 2.0 4111 - Fats and oils and their fractions, of

fish or marine mammals0.0 0.1 0.2 0.6 0.8 2.0 1.5

0362 - Crustaceans 0.0 0.0 0.1 0.1 0.2 0.0 0.6 0344 - Fish fillets, frozen 0.0 0.0 0.0 0.0 0.0 0.0 0.4 0361 - Crustaceans, frozen 0.4 0.9 0.4 0.2 1.0 0.7 0.3 0371 - Fish, prepared or preserved, n.e.s. 0.1 0.2 0.2 0.1 0.3 0.1 0.2 0372 - Crustaceans, prepared or preserved 0.2 0.1 0.1 0.1 0.1 0.0 0.1 0121 - Meat of sheep or goats, fresh,

chilled or frozen0.0 0.0 0.0 0.0 0.0 0.0 0.0

Agricultural raw materials 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Mining 49.8 68.9 64.4 66.8 53.3 45.4 42.4 Ores and other minerals 35.4 64.5 51.2 64.3 50.6 41.0 42.42816 - Iron ore agglomerates (sinters,

pellets, briquettes, etc.)27.4 56.9 17.7 51.5 34.9 24.2 30.1

2831 - Copper ores and concentrates 6.7 7.3 11.9 12.3 10.1 16.3 12.2 2823 - Other ferrous waste and scrap 0.1 0.1 0.6 0.4 0.4 0.3 0.0 2732 - Gypsum, plasters, limestone flux,

limestone and other calcareous stone of a kind used for the manufacture of lime or cement

0.0 0.0 0.0 0.0 0.0 0.1 0.0

2882 - Other non-ferrous base metal waste and scrap, n.e.s.

0.0 0.0 0.0 0.0 0.0 0.0 0.0

2785 - Quartz, mica, feldspar, fluorspar, cryolite and chiolite

0.0 0.0 0.0 0.0 0.0 0.0 0.0

Non-ferrous metals 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Fuels 14.4 4.4 13.2 2.5 2.8 4.4 0.0Manufactures 0.0 0.0 0.0 0.0 0.0 0.0 0.1 Iron and steel 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Chemicals 0.0 0.0 0.0 0.0 0.0 0.0 0.1 5989 - Chemical products and

preparations, n.e.s.0.0 0.0 0.0 0.0 0.0 0.0 0.1

Other semi-manufactures 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Textiles 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Articles of apparel 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other consumer goods 0.0 0.0 0.0 0.0 0.0 0.0 0.0Other 35.7 13.4 12.1 14.3 15.1 16.2 18.7 9710 - Gold, non-monetary (excluding gold

ores and concentrates)13.3 13.4 12.1 14.3 15.1 16.2 14.0

Source: WTO Secretariat calculations based on data from the UNSD Comtrade database (SITC Rev.3); and United Nations, ITC TradeMap for 2015.

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Table A1. 3 Origin of imports, 2008-2016(US$ million and %)

2010 2011 2012 2013 2014 2015 2016World (US$ million) 1,707.7 2,452.7 2,970.6 3,978.5 3,641.8 3,703.4 2,173.8

(Percentage share)America 7.1 6.0 9.7 9.4 26.6 24.9 15.5 United States 3.7 3.0 4.9 5.7 23.8 23.5 13.4 Other America 3.4 3.0 4.8 3.8 2.9 1.3 2.0 Brazil 2.8 1.4 2.1 1.3 0.9 1.2 1.5Europe 49.1 47.1 46.2 55.3 33.9 30.9 38.9 EU (28) 46.5 43.9 42.0 51.7 31.3 26.3 35.3 Belgium 9.9 14.0 15.6 9.6 6.4 9.1 9.2 Netherlands 10.6 2.7 1.7 1.1 1.9 3.1 7.1 France 14.1 12.2 11.2 9.8 10.0 5.3 6.6 Spain 4.7 4.2 5.5 3.8 4.9 3.5 3.8 Italy 1.1 0.3 0.7 1.1 0.8 1.5 2.7 Germany 2.7 2.7 3.1 3.1 1.5 1.2 2.2 United Kingdom 1.1 6.0 0.6 0.7 1.8 0.9 1.1 Sweden 0.7 0.3 0.5 0.1 0.1 0.0 0.9 EFTA 1.0 1.6 0.9 1.7 0.7 1.7 0.7 Other Europe 1.6 1.6 3.3 1.9 1.9 2.9 2.9 Turkey 1.4 1.5 3.3 1.9 1.8 2.5 2.3Commonwealth of Independent States (CIS)

1.8 1.1 0.4 0.9 1.2 0.9 1.7

Russian Federation 1.8 0.7 0.1 0.4 1.0 0.6 1.1Africa 7.0 7.1 7.4 5.5 6.8 15.9 9.2 Morocco 2.3 2.2 3.0 2.2 3.5 13.4 6.3 Senegal 2.5 2.3 1.5 0.9 0.8 0.6 0.7Middle East 12.9 26.3 23.9 19.6 18.8 12.5 12.2 United Arab Emirates 12.1 25.9 23.5 18.9 18.5 12.1 11.9Asia 18.5 12.3 12.4 9.3 12.7 15.0 22.5 China 6.3 5.1 5.5 3.9 6.1 5.2 8.9 Japan 2.6 1.9 2.2 1.3 2.1 2.0 2.9 Other Asia 9.5 5.3 4.7 4.1 4.5 7.8 10.6 Vanuatu 0.0 0.0 0.0 0.2 0.0 3.4 5.0 Singapore 4.6 0.3 0.4 0.6 0.8 0.8 1.2 Indonesia 0.1 0.2 0.3 0.3 0.6 0.7 0.8 Thailand 1.3 0.9 0.7 0.3 0.5 0.7 0.8 India 0.6 0.4 0.4 0.4 0.6 0.8 0.8 Malaysia 1.4 1.1 1.1 0.6 0.4 0.2 0.7Other 3.6 0.0 0.0 0.0 0.0 0.0 0.0

Source: WTO Secretariat calculations based on data from the UNSD Comtrade database; and United Nations, ITC TradeMap for 2015.

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Table A1. 4 Destination of exports, 2010-2016(US$ million and %)

2010 2011 2012 2013 2014 2015 2016World (US$ million) 1,818.7 2,458.0 2,623.8 2,462.5 2,139.8 1,831.7 1,622.8

(Percentage share)America 0.0 0.1 0.1 1.2 0.1 0.2 0.1 United States 0.0 0.0 0.0 1.1 0.1 0.0 0.0 Other America 0.0 0.1 0.1 0.1 0.0 0.1 0.1Europe 44.3 51.9 35.2 34.0 45.9 45.6 35.9 EU (28) 31.3 38.3 24.5 20.2 22.3 28.6 21.4 Spain 7.2 6.8 5.1 2.8 6.6 9.2 8.9 Italy 6.3 10.0 6.9 6.4 4.7 8.2 4.1 Germany 6.2 6.2 4.5 5.0 5.0 4.3 3.4 France 7.8 8.5 4.7 3.5 2.6 2.0 1.7 Portugal 0.4 0.6 0.7 0.4 1.1 1.2 1.1 Denmark 0.0 0.1 0.2 0.9 0.7 1.8 1.0 Netherlands 0.6 0.2 0.3 0.1 1.4 1.6 0.5 Greece 0.2 0.3 0.2 0.2 0.0 0.3 0.3 EFTA 13.1 13.6 10.7 13.7 17.2 16.3 13.6 Switzerland 13.1 13.6 10.7 13.5 17.1 16.2 13.5 Other Europe 0.0 0.0 0.0 0.1 6.4 0.6 1.0 Turkey 0.0 0.0 0.0 0.1 0.5 0.6 1.0Commonwealth of Independent States (CIS)

2.0 1.6 1.8 1.9 2.8 2.5 5.0

Russian Federation 1.8 1.1 1.1 1.8 2.7 2.1 4.8Africa 1.7 3.6 5.7 4.1 9.2 9.4 10.4 Nigeria 0.3 0.2 1.4 1.4 2.3 5.0 4.1 Côte d'Ivoire 0.2 0.7 0.7 1.6 4.5 2.0 3.3 Ghana 0.4 0.7 1.1 0.4 0.3 0.4 0.6 Mali 0.1 0.1 0.0 0.1 0.2 0.5 0.6 Cameroon 0.0 0.0 0.1 0.2 0.2 0.3 0.5 South Africa 0.2 1.0 0.4 0.0 0.0 0.0 0.2Middle East 0.0 0.0 2.8 2.5 2.9 0.5 0.7 United Arab Emirates 0.0 0.0 2.8 2.5 2.7 0.0 0.5Asia 46.5 42.8 54.4 56.3 39.2 41.8 47.8 China 39.4 36.9 44.1 50.5 32.7 31.6 36.9 Japan 6.8 5.2 8.9 4.3 4.2 5.6 7.6 Other Asia 0.3 0.7 1.4 1.6 2.3 4.5 3.3 Korea, Republic of 0.1 0.1 0.3 0.4 0.8 1.7 1.6 Viet Nam 0.0 0.0 0.2 0.4 0.5 1.6 1.1Other 5.4 0.0 0.0 0.0 0.0 0.0 0.0

Source: WTO Secretariat calculations based on data from the UNSD Comtrade database; and United Nations, ITC TradeMap for 2015.

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