WORLD TRADE
ORGANIZATIONWT/COMTD/IF/32
2 April 1998
(98-1334)
Committee on Trade and Development
Integrated Framework for Trade-Related
Technical AssistanceOriginal:  English
TRADE-RELATED TECHNICAL ASSISTANCE NEEDS-ASSESSMENT
PRESENTED BY THE SOLOMON ISLANDS
INTEGRATED RESPONSES BY IMF, ITC, UNCTAD,
UNDP, WORLD BANK AND WTO1
SOLOMON ISLANDS
                                                     
1Published pursuant to the provisions of paragraph 5 (e) of the Integrated Framework for Trade-Related
Technical Assistance (WT/LDC/HL/1/Rev.1).WT/COMTD/IF/32
Page 2
TRADE-RELATED TECHNICAL ASSISTANCE NEEDS-ASSESSMENT
PRESENTED BY SOLOMON ISLANDS
A. Trade policy
(a) What are the sectors that you believe have unexploited or underexploited export
potential?
Six economic sectors have unexploited or under-exploited export potential:
- Agriculture:  the three leading export products have been palm oil, copra and cocoa,
which represented 11.6 per cent, 5,7 per cent and 2.3 per cent of the total value of
exports, respectively, in 1995.  Subject to alleviation of some obstacles to trade, a
number of other exportable products also demonstrate potential for development.
These includes spices (chili, with export markets in Asia), honey, vanilla, fruits
(exports presently hampered by fruit-fly problems), root crops and horticulture;
- Forestry:  there is potential for sustainable export-oriented development of forestry
resources with processing of rattan as well as increased downstream processing of
logs into sawn timber and possibly other products.
- Fisheries:  the sector of goods with the greatest export potential is the fisheries sector.
The Solomon Islands has only one cannery, and tuna resources can be exploited in a
sustainable manner.  This would justify the opening of the least one more largecannery;
- Mining:  at present, a gold mine is being developed at Gold Ridge on Guadalcanal,
and there are further prospects for development of the mining sector;
- Manufacturing:  there is potential, in the country, for light manufacturing and
processing industries.  The economy would gain from diversifying intoenvironmentally sustainable manufacturing activities that can provide new
employment and income opportunities, particularly in rural areas;
- Tourism:  the sector with the great last potential for development is tourism.  The
country has under-utilized resources for eco-tourism as well as other specialized
forms and tourism (water sports, cultural attractions).  At present, there are onlyapproximately 12.000 visitors per year.  It is estimated that this number could be
doubled within five years if the accommodation infrastructure is expanded, which
implies improvement in the physical environment and air transport communications,
and increased confidence in the economic climate facing potential investors.
(b) Could you please define your country's pers pective of the reasons for any changes in the
structure and direction of exports and imports?
The Solomon Islands have moved from a situation of high dependence on tree crop and
unprocessed tuna exports in the early post-independence period, to a situation of increased
dependence on log and processed fish exports.  The main reason for the shift toward unprocessed
timber exports was that, in the early 1990s, Malaysian logging companies that needed logs for the
North Asian market sought sources of supply in Melanesia, and in particular, in the Solomon Islands.
The shift from unprocessed tuna to processed tuna was the result of a government policy and of thetrade preferences that have been available to the Solomon Islands through the Lomé Convention.WT/COMTD/IF/32
Page 3
The relative decline of tropical tree crop exports has been associated with the stagnation or
decline of coconut oil prices.  There has been some diversification toward oil palm and cocoa
production.  The government has also encouraged the development of small local export products,
including honey and forest products.
Since 1994, merchandise trade has ceased to be in deficit.  A trade surplus equivalent to
22 per cent of the total imports was recorded in 1996.
(c) What have been the objectives of tr ade policy in the most recent period,
compared to, say, two decades ago?
Trade policy, in the years following independence, focused on import substitution, although
this option was never pursued vigorously given the small size of the market.  The policy is now firmly
oriented toward the development of export activities that will be sustainable in the longer run.  By
joining the WTO, the Solomon Islands has demonstrated its determination to participate in the
globalized economy and avoid the risk of economic marginalization.  Efforts will aim at increasingthe international competitiveness of the economy in order to maintain and increase export levels for
the currently dominant commodities, and develop new trading opportunities on "niche" markets for
products of ecological value with export potential.  In  the field of international services, efforts will be
concentrated in developing tourism by enhancing the quality of the domestic product.
(d) What are the Ministries in charge of trade policy matters, including formulation,
implementation, enforcement and monitoring?  How is coordination made?  What are the
respective roles of the relevant Ministries (give particular attention to tariff policies and other
policies directly affecting exports and imports of goods and services)?
The following ministries are involved in th e process of formulating, implementing and
enforcing trade policy:
1. Ministry of Commerce and Tourism:  responsible for domestic and international trade policy
formulation.
2. Ministry of Foreign Affairs:  directly deals with agencies such as WTO and UNCTAD, and
with governments on regional and international trading arrangements.
3. Ministry of Finance:  responsible, through the Customs Department, for the implementation
of policies regarding tariffs and concessions from tariffs in key areas of investment.
4. Ministry of National Planning and Development:  responsible for development planning and
coordination activities.
So far, the coordination of trade policies has been undertaken on an ad hoc  basis by the
Ministry of Commerce and Tourism through inter-departmental consultations.  In the absence of aformal policy framework, these coordination efforts have not always resulted in a coherent decision-
making process, because different departments have pursued separate policy lines.  The new
government, which took up its duties in September 1997, is expected to establish the policy
framework that will allow appropriate coordination of all economic policies, including trade policy.
One important element of this institutional improvement will be the implementation of a wide tax
reform.  In this context, the revision of tariff schedules will be possible in accordance with the
country's WTO commitments, and in the light of the government's incentive policy in favour ofinvestment.WT/COMTD/IF/32
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The government is determined to carry out its contractual Trade Policy Review in 1998.  This
exercise will facilitate the elaboration of a national trade policy, and the latter will be implemented
within the reformed government policy framework.
(e) How are the private sector and academic in stitutions associated with the formulation
and conduct of trade policy?
The Solomon Islands Chamber of Commerce and Employers, which succeeded in 1997 to the
Solomon Islands Federation of Employers, has been involved in the formulation of the National trade
policy.  There are regular meetings to discuss policy issues, and the Chamber is invited to participate
in international meetings where trade and economic issues are discussed.  Direct consultations with
enterprises are less frequent, although government officials have sought advice from private
entrepreneurs on specific issues in the recent past, including in the context of the negotiations that led
to the Solomon Islands accession to WTO.
There is no university in the country, but the government has used the services of staff from
the University of the South Pacific for consultancy work in areas of relevance to international trade
policy.
(f) What are the institutions in your country th at can play a role in implementation of a
trade-related project at the local level?  State their respective roles.
The following groups of organizations other than private sector enterprises can implement
commercial projects:
1. Church groups:  in several parts of the country, church groups have developed local
businesses, some of which have been relatively successful.  Financial accountability problems tend to
be less severe in such groups.
2. Other NGOs:  in the area of eco-forestry products, several NGOs have demonstrated their
capacity to carry out export-oriented business, and they could be used to develop other rural projects.
3. Public enterprises:  some government-related enterprises and public companies are involved
in buying and exporting agricultural export commodities.
(g) What are the main laws and regulations de aling with trade policy - on exports and
imports?  Please provide a short description of each.
The main national laws relevant to international trade area:
1. Customs and Excise Act:  sets out rates of duties on imports and exports and the powers of
the Minister and various public servants granting development-related exemptions.
2. Income Tax Act:  sets out rates of income and corporate taxes and exemptions that are
available for enterprises operating export-oriented business.
3. Foreign Investment Act:  establishes rules on investment in all areas, including trade-related
sectors.  The Act regards national as well as foreign investors.WT/COMTD/IF/32
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4. The Central Bank of the Solomon Islands, through relevant legislation, regulates banking and
other financial services in the country, including movements of foreign exchange relating to
international trade.
There are also several sector-specific pieces of legislation, such as the Fisheries Act and the
Forestry Act, that impact upon trade.
(h) What are the main instruments of trade policy - on exports and imports?  Please
elaborate (e.g. on import restrictions, the ques tions might be:  on what products are there any
import bans; on what products are there quantitative import restrictions; licensing
requirements, etc.; what is the highest tariff ra te currently in use; are there any excise taxes,
other "domestic" taxes that are applied differenti ally to imported goods, or to goods of a type
that are principally imported?).
The principal instruments of trade policy are tariffs and specific bans.  There is no
quantitative restriction on imports in the Solomon Islands.  The highest ad valorem  rate of import duty
is 370 per cent for motor vehicles, and high specific rates exist for tobacco and alcohol.  An average
rate of tariffs (before the upcoming revision of the tariff schedule in accordance with WTO
commitments) is 60 per cent.  Excise taxes exist on tobacco products, and there is a 10 per cent value-
added tax.
(i) In case you are a WTO Member or are in the process of acceding, how is your country
preparing itself to comply  with the WTO Agreements?
In 1998, the Solomon Islands will begin the introduction of a Customs Valuation Code.  It
also intends to bring laws into conformity with its obligations under the Agreement on TRIPs
(beginning in 1999/2000 so as to ensure that this process will be completed by 2004).  The country
will undertake a Trade Policy Review in 1998.  This will permit to determine what policies are inneed of a review according to WTO obligations.
(j) What is the state of familiarity with the WTO framework:
- among government and government-related agencies?
- in the private sector?
A very small number of civil servants in the Departments of trade and customs have been
familiarized with the WTO framework through a number of national or regional training events.  The
Forum Secretariat conducted one national seminar for government officials and the Chamber of
Commerce and Employers, and some officials have attended relevant week-long seminars in Papua
New Guinea, Fiji and New Zealand.  There is a major need for improvement of the familiarity with
the multilateral trade framework, in the government, as  well as in the private sector.  More generally,
there is a need, at the national level, to understand the implications of globalization for the Solomon
Islands.
(k) What are your technical assistance require ments with regard to your compliance with
the WTO Agreements?
Technical assistance is required to study the impact of changes in import/export tariffs on
government revenue, and examine possible options to comply with WTO-related commitments
without depriving the government of vital revenue.  This issue will have implications for taxes andother aspects of economic policy.WT/COMTD/IF/32
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Another major need is to assist the government in implementing its obligations on
notification, with a view to establishing an administrative mechanism to allow automatic notification.
There is a need for technical assistance from WIPO to prepare officials for the eventual
implementation of the Agreement on TRIPs and the preparation of relevant legislation.
Technical assistance in the form of specialized training for officials in the trade and customs
departments is also imperative, in order to stre ngthen the national capacity to comply with WTO-
related obligations and derive maximum benefits from the country's participation in the multilateral
trade framework.  It is important that the training seminars be empirical, based on examples and case
studies.
(l) In which specific areas of the WTO Agreements do you have technical assistance needs
(e.g. market access, agriculture, rules (anti-dumpin g, subsidies, import licensing, rules of origin,
safeguards etc.), TBT and SPS, Services, TRIPs)?
Technical assistance is required in the following areas of the WTO system, in descending
order of importance:
1. a general understanding of what membership in WTO permits and what types of trade
policy measures are not allowed, especially with respect to trade in goods;
2. customs valuation code, pre-shipment inspection, rules of origin;
3. TRIPs obligations;4. Agreement on Agriculture;
5. General Agreement on Trade in Services and its implications for tourism, banking,
telecommunications, insurances, shipping, etc.
6. sanitary and phytosanitary measures;
7. import licensing rules.
(m) What is your assessment of your existing trade analysis and negotiating capacities, both
multilateral and bilateral, in areas already co vered by the WTO Agreements and other trade-
related areas, e.g. competition policy and trade and environment?
There is a need to enhance the national capacity in trade analysis and in negotiations.  In
particular, training of key officials in negotiating skills is highly desirable.
B. Obstacles to trade expansion
Obstacles to trade encompassing problems in export markets, infrastructure, human
capacities, institutional bottlenecks, trade financing problems and gaps in trade information can
inhibit a least-developed country from taking full advantage of trading opportunities.
Supply constraints, including institutional bottlenecks
(a) What are the main bottlenecks inhibiting the development of sustained export capacity
of goods and services (e.g. customs facilitation, freight charges, quality management,
elimination of cumbersome legal and administrative procedures, paucity of human skills, access
at international prices to imported inputs, or inadequate telecommunication, port and transport
facilities etc.)?
- Land-locked countries may face addition al problems, such as having to ship
using costly or unreliable transport and ports systems.  In case this applies to your country,please indicate such problems.  What kind of technical assistance would help you work out these
problems?WT/COMTD/IF/32
Page 7
Some of the main supply constraints stem from the lack of infrastructure facilities, the high
costs of utilities, the land-tenure system (which entails a lack of availability of land for lease other
than customary land), the lack of skilled manpower and entrepreneurial and management capabilities,
the lack of access to low-cost investment financing,  and the shortages of government support services
to the private sector due to resource limitations.
The Solomon Islands has relatively good direct international shipping connections (with
Australia, New Zealand, Papua New Guinea, Asia and Europe).  Freight rates are described by
shipping agents as competitive, but average shipping costs are relatively high for many small-scale
traders.
In the forestry sector, the country has been unable to move to downstream processing of logs
to any significant degree.  The reason is that, the companies involved in logging have found that there
are insufficient economies of scale to make the establishment of saw mills economical.  Several
NGOs have developed processed "eco-timber" exports to the EU, Australia and New Zealand, andthere seems to be scope for further developments in this sector.
(b) Are there any institutional bottlenecks, wh ich may impede the efficient conduct of your
country's trade policies?  Provide details. For example, what are the problems perceived by the
different actors, e.g. exporters, producers, service providers (banks, insurance companies,
quality control, transporters etc), professional associations and Ministries?  Are problemsmainly perceived in the area of:
(i) human resources
(ii) management of the institution
(iii) financial and material resources
(iv) communication
One major problem faced by the private sector is the difficulty to secure investment funds
from lending institutions, and the high lending costs.  There is also a lack of coordination between the
government, the private sector, and the local financial institutions to deal with this problem.
(c) What are the main bottlenecks to export diversification?
The outward-looking orientation of trade policy, with clear trade liberalization measures
creates a better climate for trade expansion than before, but is not in itself sufficient to stimulate the
diversification of the economy.  There are structural obstacles to entrepreneurship and
competitiveness that play against investment and diversification.  These obstacles include the absence
of business culture among the largest part of the rural population, the lack of access to capital and
trade financing for potential investors, and the lack of businesses and technical skills amongentrepreneurs.  The latter factor explains the lack of trade efficiency in the microeconomic
environment of enterprises. In this context, which adds to the island-specific disadvantages of
smallness and remoteness, the scope for diversification and a re-specialization of the economy is
limited.
(d) If investment in the production of goods a nd services is inadequate, what are the main
reasons?  Please elaborate them (e.g. structural co nstraints, difficulties in attracting foreign
investment, limited enterprise development, financing, lack of appropriate technology, etc)WT/COMTD/IF/32
Page 8
The lack of an appropriate trade-related and transport infrastructure, of a sufficient skilled
labour force (except for fisheries and forestry), and of adequate professional services has explained
the reluctance of potential entrepreneurs to select the Solomon Islands as a host country.  In the
tourism sector, for example, hotel developers would see the insufficient air communications and the
absence of steady domestic supplies of certain important goods and services as overridingly limiting
factors.  In other sectors, the absence of a sizeable domestic market and the distances to large marketswould discourage foreign investment.
One also observes that, even the incentive offered by the emergence of a free trade zone
within the Melanesian Spearhead Group is not significant enough because of the lack of frequency of
shipping links from Honiara to Papua New Guinea.  The current maritime links, with more
connections from PNG to the Solomon Islands than in the opposite direction, do not benefit potential
exporters who would like to take advantage of preferential access to the PNG market.
(e) Is there a national policy to encourage export-related investment opportunities?  Please
elaborate.  What arrangements are in place fo r reviewing, drafting and negotiating contractual
arrangements with foreign investors?
There is a national policy to encourage export-related investment.  The foreign Investment
Act (1990), the Income Tax Amendment Act (4990) and the Customs and Excise Act provide
incentives in the form of tax holidays (up to 10 years), import duty remissions on capital equipmentand imported raw materials for processing, and deduction of training costs from taxable profit.  The
incentives for different activities (e.g., agriculture, fisheries, manufacturing) are formulated distinctly
in the Foreign Investment Act.
Fisheries and tourism are the two sectors in wh ich investment prospects are reasonably good,
considering the magnitude of existing natural resources.  Tourism development, however, will dependon the progress in developing support services and the appropriate infrastructure.  Investment in the
mining sector, an area in which the participation of Solomon Islanders will remain limited, will
depend on the results of prospection efforts.
(f) What are the main obstacles to the transfer, development and acquisition of technology?
Is there any national policy/strategy in this area?  Please elaborate.
Although there is no specific policy on transfer of technology, the Foreign Investment Act,
through the various investment incentives, facilitates such transfers of the utilization of foreign
technology in the country.  There is however, a scarcity of indigenous skills in relation to the use and
maintenance of the transferred technology.
(g) What are your technical assistance or oth er assistance needs with respect to supply
constraints.
Technical assistance is required in the following areas:
- training in technical areas relevant to the private sector, and long-term human
resource development through manpower planning;
- assistance to the government in creating a favourable environment for private
investment with a view to expanding and diversifying the economy.  This also
involves assistance relating to the improvement of the country's infrastructure forshipping, communications and other support services;WT/COMTD/IF/32
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- improving access to information on products, prices, market sources, and market
requirements.  Assistance should be channelled through relevant government
departments as well as the Chamber of Commerce and Employers.  There is also a
need for computer equipment in this connection.
Trade Promotion and Trade Support Services
Trade promotion comprises an integrated set of technical and financial services to enhance the
global competitiveness of enterprises and thus facilitate their entry and increasing participation in
international trade.
(h) Do your enterprises, especially small and medium enterprises, experience difficulties in
expanding their exports?  What are these problems in the major export sectors?
Supply bottlenecks affect Solomon Islands enterprises.  Many enterprises established for the
domestic market are unable to export, although the Melanesian Spearhead Group Trade Agreement
facilitates regional trading in several food-processing sectors for which trading opportunities werepreviously non-existent.
Large-scale agricultural production has been hindered by the unavailability of land due to the
traditional land tenure system, under which customary land does not lend itself well to business
ventures.  There has been a limited expansion of smallholders' exports because of the difficulties to
find adequate trade financing in the absence of a mechanism to make micro-credit facilities available
to small producers.
Fishing enterprises have a limited scope to establish processing activities because of the lack
of funding support available and the difficulties to identify new market opportunities in the context of
the erosion of existing trade preferences.
Small potential entrepreneurs in tourism-related activities also face difficulties to secure
funding from the local financial institutions.
(i) What are the problems for your enterprises in obtaining reliable and up-to-date
information on export/import business opportunities?
Domestic enterprises that have no marketing connections with large companies abroad have
little access to data on market sources.  Such access could enhance the export capability of small andmedium-sized enterprises in the country.  Particularly useful could be the provision of data and
training on the evolution of commodity markets, as those involved in the marketing of cocoa, copra
and oil palm have little relevant experience.  In the context of trade liberalisation and globalization,
enhancing the domestic capacity to diversify the dire ction of trade and to identify valuable "niche"
markets for higher-quality products will be one of the most important conditions to meet in order toavoid economic marginalization.
(j) Can your enterprises offer products of in ternationally acceptable design, quality and
packaging to foreign buyers?  If not, what are the problems?
In new export sectors such as honey and tropical forest nuts, the country has been able to
develop small export markets for products that have been recognized as meeting high quality
standards.  Attempts to develop export markets for rattan furniture have not met with success because
of the lower production standards and the irregular supply.WT/COMTD/IF/32
Page 10
In the fisheries sector, where the government is in a joint venture arrangement with Maruha,
one of the largest Japanese fisheries enterprises, it has been possible to produce a product of
international standard for the top end of the European tuna market.
Small and medium-sized enterprises have limited financial resources to develop suitable
packaging and labelling standards for their export products.  The South Pacific Trade Commission of
the Forum Secretariat provides technical assistance in this area.
(k) What problems, other than in terms of trade policy, do you anticipate in developing the
export of services (e.g. computer software, tourism)?
Though one of the most promising sectors of the economy, tourism faces many difficulties
that stem from the inadequate public infrastructure  and the insufficient air transport communications
(presently with Australia, New Zealand, PNG and Fiji only).  There are no direct northward
connections to the rapidly expanding Asian market.
There is a lack of hotel infrastructure, particular ly in the Islands other than Guadalcanal.  This
explains the limited tourism activity in the peripheral regions of the country, although there have been
attempts to develop village-based eco-tourism facilities in rural areas.  The problem is compoundedby the lack of training possibilities for tourism personnel.
The scope for developing other areas of international services seems very limited at present,
although the idea of developing a regional storage centre for fuel products has been considered.
(l) What are the technical/professional problems encountered by trade support institutions
(e.g. trade promotion council, chamber of commerce, exporters association, etc) in your country
in providing their services to export/import enterprises?
There is a general lack of specialized trade-related skills in both the Chamber of Commerce
and Employers and the Department of Trade.  This results in a lack of capacity to directly assist
exporters.  As Government and the Chamber do not have enough financial resources to do so,
technical assistance mainly comes through small gr ants from bilateral donors or through the Forum
Secretariat.
(m) What problems and deficiencies are experi enced by enterprises in  their international
purchasing and inventory management?
There is little knowledge of the principles of inventory management and import procurement
procedures.  Training for the private sector in this area is highly desirable.  This matter will also be
dealt with through the recruitment of an impor t management adviser at the Forum Secretariat.
(n) What are the present availability and arrangements for trade finance facilities (e.g.
export credit guarantees, etc)?  Are there any perceived deficiencies in this area?
The Central Bank of the Solomon Islands provides an export guarantee scheme for exporters.
This scheme is implemented by the Development Bank of the Solomon Islands and the commercial
banks.  The Ministry of Commerce also assists exporters through funding from bilateral donors.
(o) What are the main problems in the way of  improving export/import management skills
of your business enterprises?  Do you have trai ning programmes in the country?  What are the
deficiencies?WT/COMTD/IF/32
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Knowledge of import/export management is very rudimentary, and training is needed in this
area.  Some short-term training in middle-level management skills is possible at the Solomon Islands
College of Higher Education, and there are occasional courses at the Development Bank of the
Solomon Islands.  For training at lower levels in agricultural and other techniques, rural training
centres exist for people who have been outside of the formal educational system.  The Department of
Trade operates a Trade Testing and Training Scheme for people working in the private sector.  Atraining needs assessment is necessary in relatio n to the beginning process of manpower planning.
(p) Does your trade representation service actively promote your trade?  What are the
weaknesses?
The Department of Trade conducts trade promotion activities when funds are available.
There is active participation in trade fairs when donors countries provide resources.  The diplomatic
missions aborad also facilitate trade promotion when called upon to do so.  Trade promotion thus
takes place in an ad hoc  manner, because of the lack of financial resources.  There is a need to train
public and private officials involved in trade promotion and representation.
(q) Briefly describe your technical assistance needs in the area of trade promotion and
support services.
 There is need for technical assistance to the Chamber of Commerce and Employers and the
Department of Trade in the form of training in import/export management and in the use of moderninformation technology relevant to trade.  Assistance in finding new investors is also necessary.
Market access
(r) What are your main market access problems?
The main market access problem that the country faces is the erosion of trade preferences for
tuna products and agricultural products on the EU market as a result of global trade liberalization.The Lomé Convention, which has been the main basis for the development of tuna processing, is
currently under threat (with the waiver from WTO obligations expiring in the year 2000).  The EU
will now be extending Lomé-equivalent trade preferences for these products to all Least Developed
Countries.  This means that the Solomon Islands, like all other LDCs of the ACP Group, will face
increased competition, in the EU market, for tuna  products, coconut products, cocoa, palm oil and
timber.
(s) What specific problems or barriers, and in which countries, are most troublesome for
your exporters?
The most difficult barrier facing the Solomon Islands is the rule of origin imposed by the EU
in the fisheries sector, i.e., the requirement that all vessels be at least 51 per cent ACP/EU owned, orthat tuna be caught in the territorial seas (12-mile zone).  These requirements have caused difficulties
for tuna exporters from the Solomon Islands and other ACP States.
Other barriers to exports from the Solomon Islands stem from the sanitary and phytosanitary
constraints imposed by some importing countries on such products as fish and honey.
(t) Regional and sub-regional trading arrangements (RTAs): please list RTAs to which
your country belongs.  Are you satisfied with th e performance with these RTAs?  Please state
the problems of each.  Do you have suggestions on how to solve these?WT/COMTD/IF/32
Page 12
The Melanesian Spearhead Group Trade Agreement (presently involving Papua New Guinea,
the Solomon Islands and Vanuatu) has resulted in the expansion of trade in a limited range of
products.  Some local manufacturers are expanding their capacity to take advantage of the increased
market opportunities resulting from this trade agreemen t.  Bilateral agreements with Fiji are currently
being negotiated.
The trade preferences that have been provided by Australia and New Zealand are being
eroded as a result of their alignment with GSP levels, in accordance with Australia and New Zealand's
WTO-related commitments.
(u) Are there any problems in utilizing the exis ting market access preferences, such as GSP,
GSTP?  Please state the nature of problems relating to each of these.
There have not been problems with the utilization of market access preferences other than
those referred to under question (s).
(v) What are your technical assistance needs with respect to market access?
Technical assistance in this area is not a high priority, although assistance in dealing with
Lomé and WTO issues will become more important as relevant negotiations begin in 1998.
C. Technical assistance
Technical assistance is normally provided to developing and least-developed countries to
build or enhance their human resources and institutional capacities, provide trade information andtrade-related legal support, as well as improve their supply capabilities in order to make them more
active players in the field of multilateral trade.
(a) To the extent this kind of information is easily available, could you please briefly
describe what trade-related assistance you have received over the past five years from bilateral
and multilateral sources and what projects/programmes are presently under consideration inthis area?
The only significant trade programme was provided by UNCTAD/UNDP, in the early 1990s,
in the area of import management.  There has been ad hoc  assistance of international trade from the
EU and Australia, and support from the Forum S ecretariat.  The EU has paid for the country's
participation in trade fairs and training seminars on WTO matters.  There has also been assistancefrom Australia, under SPARTECA, for marketing activities.
(b) Please summarize your technical assistance needs as well as other needs as reflected in
this check-list.  Please rank them in terms of priority.
Technical assistance should be provided in the following areas, in descending order of
importance.
- technical assistance to the private sector in identifying new export opportunities
(market intelligence), preferably through the Trade Point programme;
- assistance to the Department of Trade in organizing the institutional machinery for
compliance with the WTO-related obligations of the country and its capacity to
derive benefits from the multilateral trade framework;
- development of the capacity of the Solomon Islands Chamber of Commerce and
Employers to assist members in market development;WT/COMTD/IF/32
Page 13
- provision of training in management and market development for entrepreneurs;
- development of the supporting capacity of the department of Trade, particularly in the
access to market information (through the establishment of a Trade Point).
(c) In the light of the information you have been able to provide so far in response to the
questions in this check-list, what types of information are, in your view, still missing or could be
improved upon?  In order to assist you in providing this missing information, would you needtechnical assistance?
Not applicable.
(d) Does your country have the technological capacity and human resources to make use of
the new information/ communication technology t ools such as CD-Rom, the Internet etc.?  What
assistance would you need to enable your country to use these tools in the context of training
and, more generally, in the context of trade development?
New information technology is used in a rudimentary manner in the government and the
private sector.  As Internet is available in the country, the development of a Trade Point is highly
desirable.WT/COMTD/IF/32
Page 14
INTEGRATED RESPONSES BY IMF, ITC, UNCTAD,
UNDP, WORLD BANK AND WTO1
SOLOMON ISLANDS2
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(k):
Technical assistance requirements as
regards compliance with WTO Agreements
Technical assistance is required to study
the impact of changes in import/exporttariffs on government revenue, and
examine possible options to comply with
WTO-related commitments without
depriving the government of vital revenue.
This issue will have implications for taxesand other aspects of economic policy.
Assistance in implementing notification
obligations with a view to establishing an
administrative mechanism to allowautomatic notification.WTO With respect to implementation of the WTO
Agreements:
- Assistance will be provided to Solomon
Islands for the notification, drafting/alignment of its own legislation to WTOobligations.
-Assistance will be provided to strengthen
technical capacities of Solomon Islands
Departments to comply with the WTOmatters.
                                                     
1Published pursuant to the provisions of paragraph 5 (e) of the Integrated Framework for Trade-Related
Technical Assistance (WT/LDC/HL/1/Rev.1).
2It should be noted that the UN Department of Economic and Social Affairs (DESA) has decided, in
collaboration with UNDP, to call a meeting of representatives of Small Island Developing States (SIDSs) withprospective donors.  "To improve the likelihood that such a meeting would result in tangible outcomes, the
SIDSs have been requested to prep are a portfolio of documents on priority projects... that cannot be
implemented without the support of external resources beyond those currently envisaged." (UNGA DocumentA/52/319, paras i. to 10.).  The General Assembly welcomed "the need for further collaboration among SIDSsand agencies funds and programmes of the UN system to facilitate the preparation of project portfolios".(UNGA RES/52/202).
For SIDSs which are LDCs, it would be desirable to ensure consistency between the above process and the
Integrated Framework process.WT/COMTD/IF/32
Page 15
Technical assistance needs identified in the
questionnaireOrganization Response
Question A(k) (suite):
Assistance to prepare officials for the
eventual implementation of the Agreement
on TRIPS and the preparation of relevant
legislation.WTO
(WIPO)Assistance will be extended to Solomon
Islands in accordance with the Cooperation
Agreement between WIPO and WTO
providing for WIPO legal-technicalassistance relating to TRIPs Agreement.
Specialized training for officials in thetrade and customs departments is
imperative in order to strengthen the
national capacity to comply with WTO-
related obligations and derive maximum
benefits from the country's participation inthe multilateral trade framework.  It is
important that the training seminars be
empirical and based on examples and casestudies.UNCTAD Training seminars on trade policy matters
and the multilateral trading system can beorganized in cooperation with the WTO.
 *
WTO National seminar will be held in first
semester of 1998.
A three-week trade policy course for
English speaking least-developed countrieswill be held in 1998 and 1999.
Specialized regional seminars and/or
workshops in Asia and Pacific region on
WTO provisions will be organized in 1998or 1999 for English-speaking LDCs.
ITC/UNDPUNDP and ITC are presently finalizing a
regional programme for the development ofthe private sector which will include a tradedevelopment component.
                                                     
*Funds are requested.WT/COMTD/IF/32
Page 16
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(l):
Technical assistance needs as regards
specific WTO Agreements
Technical assistance needs in descending
order of importance:UNCTAD Training and advisory services on relevant
Agreements and their implications for the
country can be provided in cooperation withthe WTO.
*
1. Enhanced understanding of what
membership of the WTO would bring in
terms of rights and obligationsWTO See A(k).
2. Customs valuation, pre-shipment
inspection and rules of originWTO See A(k).
3. TRIPS obligations WTO See A(k).
4. Agreement on Agriculture WTO See A(k).
5. General Agreement on Trade in Services
and its implications for tourism, banking,telecommunications, insurance, shipping,
etc.WTO See A(k).
6. Sanitary and phytosanitary measures WTO See A(k).
7. Import licensing WTO See A(k).
                                                     
*Funds are requested.WT/COMTD/IF/32
Page 17
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question A(m):
Assessment of the existing trade analysis
and negotiating capacities
Need for technical assistance in enhancing
the national capacity in trade analysis and
negotiations.  In particular, training of keyofficials in negotiating skills is highly
desirable.UNCTAD Training and sensitization activities can be
organized with a view to enhancing the
national negotiating capacity in cooperationwith the WTO.
*
WTO The three week trade policy course will
reinforce the capacity building.  During
such Trade policy course negotiating
capacities will be addressed and a trainingfor a better participation in multilateral
trade negotiations will be undertaken.
ITC/
UNDPSee A(k).
                                                     
*Funds are requested.WT/COMTD/IF/32
Page 18
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(g):
Technical assistance needs as regards
supply constraints
1. Training in technical areas relevant to
the private sector, and long-term human
resource development through manpowerplanning.
2. Assistance to the government in creating
a favourable environment for private
investment with a view to expanding and
diversifying the economy including
assistance relating to the improvement ofthe infrastructure for shipping,
communications, and other support
services of the Solomon Islands.UNCTAD An investment policy review and a trade
efficiency assessment can be carried out.
*
UNDP Through the Trade and Investment
promotion component of the Private Sector
and Sustainable Livelihoods Programme
(PSSLP), UNDP could provide partial
assistance to this effect.
3. Improved access to information onproducts, prices, market sources and
market requirements.  Assistance should be
channelled through relevant government
departments as well as the Chamber of
Commerce and Employers.  There is also aneed for computer equipment in thisconnection.UNCTAD TRAINS CD-Rom will continue to be
provided.
ITC/UNDPSee A(k).
                                                     
*Funds are requested.WT/COMTD/IF/32
Page 19
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(q):
Technical assistance needs in the area of
trade promotion and support services
The Chamber of Commerce and Employers
and the Department of Trade are in need of
technical assistance in the form of trainingin import/export management and in the
use of modern information technology
relevant to trade.  Assistance in findingnew investors is also necessary.UNCTAD Development of a Trade Point can be
envisaged.
*
ITC/UNDPSee A(k).
                                                     
*Funds are requested.WT/COMTD/IF/32
Page 20
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question B(v):
Technical assistance as regards market
access
Technical assistance in this area is not a
high priority, although assistance in
dealing with Lomé and WTO issues willbecome more important as relevant
negotiations begin in 1998.UNCTAD Relevant training and advisory services can
be provided on subjects such as the
Generalized System of Preferences, theLomé Convention, future rounds of
negotiations within WTO, etc.
*
                                                     
*Funds are requested.WT/COMTD/IF/32
Page 21
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question C(b):
Summary of technical assistance needs
according to priority
1. Technical assistance to the private sector
in identifying new export opportunities
(market intelligence), preferably throughthe Trade Point programme.UNCTAD See B(g)3 and B(q).
2. Assistance to the Department of Trade in
organizing the institutional machinery for
compliance with the WTO-related
obligations.  Assistance to enhance
Solomon Island's capacity to derivebenefits from the multilateral trade
framework.WTO See A(k) and A(l).
UNCTAD See A(k) and A(l).
3. Development of the capacity of the
Solomon Islands Chamber of Commerce
and Employers to assist members in market
development.
4.  Provision of training in managementand market development for entrepreneurs.ITC/
UNDPSee A(k).
5.  Development of the supporting capacity
of the Department of Trade, particularly in
the access to market information (through
the establishment of a Trade Point).UNCTAD See B(g)3 and B(q).WT/COMTD/IF/32
Page 22
Technical assistance needs identified in the
questionnaireOrganization Response
In reply to question C(d):
Technical assistance needs in the area of
information technology including training
of human resources
New information technology is used in a
rudimentary manner by the governmentand the private sector.  As Internet is
available in the country, the development
of a Trade Point is highly desirable.WTO One computer will be provided to the
Department of Trade Industry &Employment. This will include a link to the
Internet.
Training on access and use of Internet
resources and CD-Roms will also beprovided.
__________