72782 v1 World Trade Indicators 2009/10 Togo Trade Brief Trade Policy percent. The weighted average rest of the world tariff (including preferences) faced by the country’s exports Togo applies the Common External Tariff (CET) of is 3.7 percent, with the rates for agricultural goods and the West African Economic and Monetary Union non-agricultural goods at 4.2 and 2.2 percent, (WAEMU). Judged by its MFN Tariff Trade respectively. Togo uses the CFA franc, which is Restrictiveness Index (TTRI)1 of 11 percent, Togo’s pegged to the euro. Over the course of 2008, the real tariff regime is in line with that of its Sub-Saharan effective exchange rate of the CFA franc, appreciated Africa (SSA) (11.3 percent) and low-income by 8.5 percent, making exports less competitive. comparators (11.6 percent). The agricultural sector is given higher tariff protection (13.1 percent) than its As negotiations between ECOWAS and the EU non-agricultural sector (10.7 percent). Based on the towards a comprehensive Economic Partnership MFN TTRI, Togo ranks 96th out of 125 countries, Agreement (EPA) stalled prior to the December 2007 where 1st is least restrictive. The country’s average deadline, the preferences under the Cotonou MFN applied tariff has been relatively constant over Agreement elapsed. Togo, however, maintains a the past decade and is now 11.9 percent. In line with similar level of preferences to the EU market under the WAEMU CET, the maximum MFN applied tariff the “Everything But Arms� (EBA) initiative for least (excluding alcohol and tobacco) is 20 percent. As a developed countries. The country continues to member of Economic Community of West African negotiate an EPA with the EU as part of the States (ECOWAS), the four band CET was revised in ECOWAS. June 2009 to include a fifth band of 35 percent, primarily at the behest of Nigeria. The trade policy Behind the Border Constraints space, as measured by the wedge between bound and applied tariffs (the overhang), is 66.2 percent. In terms of the conduciveness of its institutional Regarding its commitment to liberalizing services environment to business, Togo remained in the trade, Togo ranks 128th (out of 148) on the GATS bottom 10 percent, being ranked 165th out of 183 Commitments Index. countries in the 2009 Ease of Doing Business index. The Logistics Performance Index (LPI), a measure of the extent of trade facilitation, rates Togo at 2.25 on a External Environment scale of 1 to 5, compared to the average of 2.35 for the Togo’s exports face an unfavorable trading SSA region and 2.29 for countries in the low-income environment, especially when compared to the average group. It ranks 119th (out of 150) in the world and 26th SSA or low-income country. Togo’s Market Access (out of 39) in the SSA region (with South Africa TTRI2 (including preferences) is 6.9 percent, higher leading the regional group). Among the LPI categories, than the SSA country group average of 3.9 percent its best performance is in lowering domestic logistics and the low-income country group average of 5.6 costs while its weakest performance is in the efficiency and effectiveness of customs procedures. Unless otherwise indicated, all data are as of August 2009 Trade Outcomes and are drawn from the World Trade Indicators 2009/10 Trade grew at an estimated 3.1 percent in real Database. The database, Country Trade Briefs and (constant 2000 U.S. dollars) terms in 2008, down from Trade-at-a-Glance Tables, are available at 5.3 percent in 2007, and is expected to continue to http://www.worldbank.org/wti. register positive growth in 2009 but at a lower rate of If using information from this brief, please provide the 1.5 percent. Both import and export growths following source citation: World Bank. 2010. “Togo decelerated in 2008; imports from 5.4 percent in 2007 Trade Brief.� World Trade Indicators 2009/10: Country Trade to 3.9 percent in 2008 and exports from 5.2 percent in Briefs. Washington, DC: World Bank. Available at 2007 to 2.1 percent in 2008. This downward trend is http://www.worldbank.org/wti. World Trade Indicators 2009/10 Togo Trade Brief expected to continue in 2009, with imports growing by Notes 2.1 percent and exports by only 0.8 percent. 1. TTRI calculates the equivalent uniform tariff that In nominal terms, however, trade growth accelerated would keep domestic welfare constant. It is weighted by to an estimated 19.9 percent in 2008 from 9.2 percent import shares and import demand elasticity. in 2007. High global food and oil prices drove an 2. MA-TTRI calculates the equivalent uniform tariff of estimated import growth rate of 20.9 percent in 2008, trading partners that would keep their level of imports more than double the growth rate of 8.5 percent in constant. It is weighted by import values and import 2007. Exports are also estimated to have registered demand elasticities of trading partners. robust growth of 18.4 percent in 2008, up from 10.1 3. IMF, 2009, p. 8. percent in 2007. Goods exports rose by an estimated 19.7 percent, compared to 9.3 percent the previous year, thanks to exceptionally strong phosphate prices. References However, goods exports are expected to contract by Afrique en Ligne. 2009. “ECOWAS Leaders Approve 11.7 percent in 2009. This is due to the global New Common External Tariff Regime.� June 22, 2009. economic crisis pushing down the demand (and hence . Services exports rose by an estimated 14 percent in International Monetary Fund (IMF). 2009. IMF Country 2008 compared to 13.1 percent in 2007, and are Report No. 09/165. IMF, Washington, DC. May 2009. expected to be more resilient than goods exports in . constitute an important share of foreign exchange and World Trade Organization (WTO). 2006. “Trade Policy were equivalent to 8.1 percent of its GDP in 2008, Review—Togo.� WTO, Geneva. September 1, 2006. down from 9.7 percent in 2007. .