EXECUTIVE SUMMARY __________________________________________________________________________ 3.42 At the same time, it is useful to consider the WAEMU Common External Tariff (CET), which Benin implemented in 2000 over its entire territory. As regards the tax system, the CRM noted that tax pressure on the corporate sector in Benin is around the average in WAEMU, but is high in comparison to the country’s level of development. In particular, the value-added tax (VAT) and corporate tax penalise the private sector excessively. On the other hand, community legislation on anti-competition practices adopted by WAEMU in 2002 is not yet in force in Benin. These provisions, which bind all WAEMU member states, seem not to be effectively implemented by some countries in the subregion, including Benin. 3.43 It was noted that Benin is still taxing its exports, be they intra-WAEMU, intraEconomic Community of West African States (ECOWAS) or to the world market, which shows nonconformity of Benin’s national trade policies with regional community integration standards. Similarly, the WAEMU directive on transparency in the privatisation process is not yet applied in Benin. This shows a lack of compliance with commitments made at the regional level, meaning that access to the phase of free trade zone has not yet been achieved. 3.44 Based on these findings, the APR Panel makes suggestions for compliance with the secondary convergence criteria; ECOWAS and WAEMU provisions and directives not yet applied or implemented; acceleration of progress to the establishment of a free trade zone; improvement of transparency in the privatisation process in accordance with WAEMU directives; and consultation with countries in the region and other less developed countries (LDCs). 3.3 Corporate governance 3.45 After a long period of political instability, Benin adopted a new constitution in December 1990 that established democracy, the rule of law and political freedoms, as well as the right of free enterprise. However, despite this success (marking the country as a model of democracy in Africa), Benin recorded limited progress in poverty reduction and sustainable development. The democratic institutions that arose as a result of elections have not played their role in promoting good corporate governance and establishing mechanisms to stimulate growth and investment. 3.46 Standards and codes relating to corporate governance in Benin. Although Benin ratified most of the international conventions and the public authorities are driving efforts to make the conventions and laws known, their implementation does not always follow. This applies mainly to the uniform acts of OHADA, which Benin’s legal system is increasingly trying to integrate but which are not yet completely accepted by all the economic players in Benin. The same applies to international accounting and audit standards, which encounter problems of regional coordination, the relatively young age of the Association of Chartered and Certified Accountants of Benin, and practices that deviate from the texts in force (i.e. with the OHADA accounting system, or SYSCOHADA). 16