WT/L/109 8 
14 October  2020 
(20-7059) Page: 1/3 
General Council  
13-14 October 2020  Original:  English  
 
  
UNITED STATES – FORMER TRUST TERRITORY OF THE PACIFIC ISLANDS  
REPORT OF THE GOVERNMENT OF THE UNITED STATES FOR THE YEAR  2019 
UNDER THE DECISION OF 7 DECEMBER  20161 
The following communication, dated 9 October 2020 , is being circulated at the request of the 
Delegation of the United States.  
 
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1  INTRODUCTION  
1.1.  On 7 December  2016, the United States was granted a renewal of the waiver2 from its 
obligations under paragraph 1 of Article I of the G ATT 1994 to the extent necessary to permit the 
United  States Government to provide preferential treatment for eligible imports into the United 
States from the Republic of the Marshall Islands, the Federated States of Micronesia, the Republic 
of Palau, and the Commonwe alth of the Northern Mariana Islands, all formerly part of the Trust 
Territory of the Pacific Islands (TTPI) .3 This waiver expires  31 December  2026. 
1.2.  Under the terms of this waiver, the United States is required to submit to the General Council 
an annual r eport on the implementation of the trade -related provisions of the programme with a 
view to facilitating the annual review provided for in paragraph 4 of Article IX of the Agreement 
establishing the WTO .4 This report covers the calendar year 201 9, the most recent year for which 
full-year data is available.  
2  PREFERENTIAL TREATMENT FOR THE FORMER TRUST TERRITORY OF THE PACIFIC 
ISLANDS  
2.1.  In 1986, the entry into force of the Covenant establishing the Commonwealth of the Northern 
Mariana Islands, the Compacts o f Free Association Between  the United States and the Republic of 
the Marshall Islands, and Between the United States and the Federated States of Micronesia, and, 
in 1994, of the Compact of Free Association Between  the United States and the Republic of Pala u, 
terminated the applicability of the Trusteeship Agreement  for the Territory of the Pacific Islands , 
established on 2 April 1947, with respect to these islands . US law provides for the continuation  of 
 
1 WT/L/1000.  
2 WT/L/183.  
3 These four entities formerly comprised the three geographic island groups known as the Marshall, 
Caroline, and Mariana Islands, which are located in the western Pacific Ocean region and known as the 
Micronesian region.  During 1986, the Covenant establishing the Commonwealth of the Northern Mariana Islan ds 
("CNMI ") ("Covenant "), an insular area of the United States, and Compacts of Free Association ( "Compacts ") 
with the United States for the Republic of the Marshall Islands (RMI ), and the Federated States of Micronesia 
(FSM) came into effect. With the entry into force of the Covenant with CNMI and the Compacts with the RMI and 
FSM, and the agreement of the Trusteeship Council of the United Nations, the UN Security Council determi ned 
that the applicability of the Trusteeship Agreement with respect to the RMI and FSM had terminated. In 1994, 
the Compact of Free Association with the United States for the Republic of Palau came into effect. With the entry 
into force of the Compact wit h Palau and the agreement of the Trusteeship Council of the United Nations, the UN 
Security Council determined that the applicability of the Trusteeship Agreement with respect to Palau had been 
terminated.  
4 Marrakesh Agreement Establishing the World Trade  Organization (WTO), consulted at: 
https://www.wto.org/english/docs_e/legal_e/04 -wto_e.htm .  WT/L/109 8 
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  the preferential trade treatment to the  islands under  the TTPI . These preferences are similar to 
historical preferences the United States provides to the US Virgin Islands, Guam , and American 
Samoa, which were US possessions on 1 July 1939, and which are included in Annex D to Article I 
of the GATT  1994. The primary purpose of this preference system has been to promote the 
expansion of trade and the economic development of the beneficiaries in a manner consistent with 
the objectives of the GATT and with the trade, financial , and development needs of the benef iciary 
countries.  
2.2.  Under General Notes 3(a)(iv) and 10 of the Harmonized Tariff Schedule of the United States, 
duty-free treatment is accorded to all products of the for mer TTPI, with some exceptions . Certain 
fishery products are subject to quantity limitat ions, while watches and watch movements, and  
buttons, certain textile, apparel, footwear and luggage products are subject to duty in s ome or all 
of the former TTPI . Duty-free treatment is only accorded to the in -quota quantity of the agricultural 
products subject to a tariff -rate quota.  
3  PERFORMANCE  
3.1.  A very small volume of production and trade is involved in this program . Taken together, 
US imports from the Republic of the Marshall Islands, the Republic of Palau, the Federated States of 
Micronesia, and the Co mmonwealth of the Northern Mariana Islands in 201 9 totalled about 
US$15 million . 
3.2.  From 201 8 to 201 9, total US imports from the former TTPI decreased by about 57 per cent , 
from approximately  US$25.6 million to approximately US$14.6 million. D uring the past year, 
US imports from both the Republic of the Marshall I slands  and the Commonwealth of the Northern 
Mariana Islands dropped by 50  per cent , while imports from the Federal States of Micronesia  almost 
doubled . Imports from the Republic of Palau increas ed by about 11  per cent  from US$1.3  million  in 
2018 to US$1.5  million  in 2019.  
3.3.  The Republic of the Marshall Islands was the largest exp orter, responsible for approximately 
72 per cent  of total exports to the United States  from the former TTPI in 201 9. The Federal States 
of Micronesia  and the Republic of Palau were the next largest exporters in 201 9, followed by the  
Commonwealth of the Northern Mariana Islands . The following table provides summary information 
on US  imports from the former TTPI for 200 4-2019. 
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TABLE 1  
US IMPORTS FOR CONSUMPTION FROM THE FORMER TRUST TERRITORY OF THE PACIFIC ISLANDS, BY SOURCES, 200 5-2019 
Source  2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 
 (1,000 d (1,000 dollars ) 
Republic of the Marshall 
Islands  17,205  14,521  13,138  20,219  13,650  11,820  14,939  18,947  16,966  14,481  29,067  39,347  35,364  20,968  10,524  
Federal States of 
Micronesia  1,558  885 4,069  3,552  2,918  4,218  1,602  904 1,787  412 713 536 921 854 1,558  
Republic of Palau  485 605 386 1,138  80 148 210 455 350 555 545 1,067  574 1,306  1,474  
Commonwealth of the 
Northern Mariana 
Islands  679,560  498,362  319,171  105,299  5,959  1,163  627 1,581  923 900 1,804  1,545  2,672  2,428  1,031  
Total  698,807  514,374  336,764  130,209  22,607  17,349  17,378  21,887  20,025  16,348  32,129  42,494  39,530  25,556  14,586  
 
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