RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/TON/4/Rev.1 
23 October 2003 
 (03-5607) 
Working Party on the 
Accession of Tonga  
 
 
 
 
DRAFT REPORT OF THE WORKING PARTY  
ON THE ACCESSION OF THE KINGDOM OF TONGA  
TO THE WORLD TRADE ORGANIZATION 
Revision  
 
 
CONTENTS  
Introduction................................................................................................................... .........................1 
Documentation provided ......................................................................................................... ..............1 
Introductory statements ........................................................................................................ ................1 
ECONOMIC POLICIES.............................................................................................................. .........2 
Monetary and fiscal policy ..................................................................................................... ...............2 
Foreign exchange and payments.................................................................................................. .........3 
Investment regime.............................................................................................................. ....................3 
State ownership and privatization.............................................................................................. ..........6 
Pricing policies ............................................................................................................... ........................6 
Competition policy............................................................................................................. ....................8 
FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ...................................................8 
POLICIES AFFECTING TRADE IN GOODS ................................................................................10 
Trading rights (the right to import and export)................................................................................ 10 
1. Import Regulation........................................................................................................... ........11 
Customs tariff................................................................................................................. ......................11 
Other duties and charges....................................................................................................... ..............12 
Tariff rate quotas, tariff exemptions .......................................................................................... ........13 
Fees and charges fo r services rendered......................................................................................... .....13 
Application of internal taxes .................................................................................................. .............14 
Quantitative import restrictions, including pr ohibitions, quotas and licensing systems...............15 
Customs valuation.............................................................................................................. ..................17 WT/ACC/SPEC/TON/4/Rev.1 
Page ii  
 
Rules of origin ................................................................................................................ ......................19 
Preshipment inspection ......................................................................................................... ..............20 
Anti-dumping, countervailing dut ies and safeguard regimes ..........................................................20 
2. Export regulation........................................................................................................... .........21 
Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports........................................................................................................................ ..............21 
Export rest rictions ............................................................................................................ ...................21 
Export subsidies ............................................................................................................... ....................22 
3. Internal policies affecting foreign trade in goods.................................................................24 Industrial policy, including subsidies......................................................................................... ........24 
Technical barriers to trade, sanita ry and phytosanitary measures.................................................25 
(a) Standards and certification................................................................................................ ....25 
(b) Sanitary and phytosanitary measures...................................................................................25 Trade-Related Investment  Measures (TRIMs) .................................................................................28 
State trading entities......................................................................................................... ...................28 
Free zones, special economic areas............................................................................................. ........29 
Government procurement......................................................................................................... ..........30 
Trade in Ci vil Aircraft........................................................................................................ .................30 
Agricultural policies.......................................................................................................... ...................31 
Trade-Related Intellectual Property Rights (TRIPS).......................................................................31 
1. General..................................................................................................................... ................31 
2. Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ..................................................................33 
(a) Copyright protection ....................................................................................................... .......33 
(b) Trademarks, includi ng service marks...................................................................................33 
(c) Geographical indications, including appellations of origin.................................................33 
(d) Industrial designs......................................................................................................... ...........34 
(e) Patents.................................................................................................................... ..................34 
(f) Plant variety protection................................................................................................... .......34 
(g) Layout designs of integrated circuits ....................................................................................34  
(h) Requirements on undisclosed information,  including trade secrets and test data............34 
3. Measures to control abuse of  intellectual property rights...................................................35 
4. Enforcement ................................................................................................................. ...........35 
Policies affecting trade in services ........................................................................................... ...........38 
Transparency................................................................................................................... .....................40 
Publication of information on trade............................................................................................ .......40 
Notifications.................................................................................................................. ........................40  WT/ACC/SPEC/TON/4/Rev.1 
 Page iii 
 
 
Trade agreements............................................................................................................... ..................41 
Conclusions.................................................................................................................... .......................42 
ATTACHMENTS .................................................................................................................... ............43 
 
  WT/ACC/SPEC/TON/4/Rev.1 
 Page 1 
 
 
 Introduction  
1. The Government of the Kingdom of Tonga applie d for accession to the World Trade Organization 
in June 1995.  At its meeting on 15 November 1995, the General Council established a Working Party 
to examine the application of the Government of  Tonga to accede to the World Trade Organization 
under Article XII of the Marrakesh Agreement establis hing the WTO.  The terms of reference and the 
membership of the Working Party are repr oduced in document WT/ACC/TON/2/[Rev.6]. 
2. The Working Party met on 26 April 2001; and ………………... under the Chairmanship of 
H.E. Mr. S. Harbinson (Hong Kong, China). 
Documentation provided  
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Tonga (document WT/A CC/TON/3), the questions submitted by Members 
on the foreign trade regime of Tonga, together with the replies thereto, and other information provided 
by the authorities of Tonga (WT/ACC/TON/ 4; WT/ACC/TON/5; ………..……), including the 
legislative texts and other documentation listed in Annex I. 
Introductory statements  
4. The representative of Tonga said that the Kingdom  of Tonga was a small island nation with 
limited human and financial resources and a fragile ecosystem, highly vulnerable to natural disasters 
and adverse external changes.  Rising sea levels repr esented a direct threat to his country.  Tonga's 
economy relied heavily on imported goods and a few ex ternal financial sources.  The trade balance 
deficit was largely financed by remittances from Tongans living abroad.  The main industry, the 
fishing industry, had witnessed significant improve ments over the past decade, but its performance 
was undermined by weather disturbances and high transportation costs.  These factors made it difficult for the country to attract foreign investment.   
5. In Tonga, accession to the WTO was seen as a powe rful instrument to enhance trade security, 
create new trade and investment opportunities, and strengthen multilateral cooperation.  It was 
considered important to foster competitiveness and development and help Tonga better integrate into 
the world trading system.  His Government had put in place a national mechanism to coordinate accession to the WTO, and had taken a number of measu res to bring Tonga's trade regime in line with 
WTO requirements.  Tonga had established a Nati onal Codex Alimentarius Committee.  Tonga had 
also become Member of the World Intellectual Property Organization (WIPO) in July 2001, and new legislation had been drafted to ensure  compliance with WTO TRIPS regulations. WT/ACC/SPEC/TON/4/Rev.1 
Page 2  
 
 6. Members of the WTO welcomed the applica tion from the Kingdom of Tonga to join the 
Organisation.  Members were impressed by the effo rts undertaken by Tonga so far, but noted that 
further work would be required, particularly in the area of legislation, for Tonga to be in compliance 
with WTO requirements.  WTO Membership was seen by some Members as a powerful tool for 
Tonga to achieve its developmen t objectives and reduce the business costs for local enterprises.  
Members looked forward to a rapid and smooth accessi on process, resulting in terms that would strike 
an appropriate balance between the rules and requirements of the WTO and Tonga's level of 
development.   
7. The Working Party reviewed the economic polici es and foreign trade regime of Tonga and the 
possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members of the Working Party on the various aspects of Tonga's foreign trade regime, and on the terms and 
conditions of Tonga's accession to the WTO are summarized below in paragraphs 8 to [166]. 
ECONOMIC POLICIES  
Monetary and fiscal policy
 
8. The representative of Tonga said that the central  bank, the National Reserve Bank of Tonga, was 
responsible for the formulation a nd implementation of Tonga's moneta ry policy in coordination with 
the Ministry of Finance.  The main objectives of To nga's monetary policy were to ensure a sufficient 
level of foreign exchange reserves to meet import re quirements, maintain a stable exchange rate for 
the national currency - the Pa'anga (TOP), and to slow the increase in bank lending to the private 
sector.  Instruments used to this end in recent times included adjustments of interest rates and 
increases in mandatory reserve requirements for the commercial banks.   
9. Fiscal policy aimed primarily at balancing the budget (an objective which had been achieved in 
recent years);  increasing the efficiency of g overnment services;  promoting private sector 
development through the application of stricter economic, financial, and e nvironmental criteria for 
borrowing together with improved debt recording and reporting systems;  improving public debt 
management;  and strengthening the monitoring  and management of public enterprises.   
10. A tax reform programme was under consideration with a view to moving emphasis from trade to 
internal taxes and enhancing the effectiveness of the tax administration.  Under this programme, 
individual and corporate income taxes would be modifi ed to ensure greater fairness.  The details and 
timing of the programme, which would have to be carefully planned to avoid any loss of revenue, 
would depend on the terms of Tonga's accession to the WTO.    WT/ACC/SPEC/TON/4/Rev.1 
 Page 3 
 
 
 Foreign exchange and payments  
11. The representative of Tonga said that the value of the currency of Tonga - the Pa'anga - was 
determined on the basis of a weighted basket of  currencies comprising the U.S. dollar, the New 
Zealand dollar, the Australian dollar, and the Japanes e yen.  The exchange rate of the Pa'anga against 
the U.S. dollar, which was the intervention currenc y, was determined daily by the National Reserve 
Bank of Tonga (NRBT), while the rates for the other currencies, for transactions of the Reserve Bank, 
were determined based on the cross rates provided by the Bank of England.  The NRBT was allowed 
to vary the value of the Pa'anga relative to the bask et, at its own discretion, by 5 per cent per month.  
In July 2003, one Pa'anga bought approximately US$0.50. 
12. The NRBT had delegated to authorized dealers a pproval authority for payments and transfers for 
current international transactions  up to TOP$50,000, and reserved th e right to approve payments and 
transfers for current international transactions exceed ing TOP$50,000.  Capital transactions were also 
subject to NRBT approval, which was generally gran ted provided that official international reserves 
remained at adequate levels.  Transactions such as capital transfers;  acquisiti on/disposal of financial 
assets;  direct investment, including equity cap ital;  and portfolio investment required approval 
irrespective of the amount involved. 
13. He added that Tonga had accepted th e obligations under Article VIII, Sections 2, 3, and 4 of the 
Articles of Agreement of the IMF on 22 March 1991,  and maintained an exchange system free of 
restrictions on the making of payments and transfer s for current international transactions.  Tonga's 
official international reserves had amounted to US$13 million as of end September 2002.  In January 
2003, the National Reserve Bank of Tonga had aut horized the writing of forward contracts for 
bona fide importers and exporters  by commercial banks for an amount up to US$2 million.   
Investment regime  
14. The representative of Tonga said that his Governme nt encouraged foreign investment.  The 1978 
Industrial Development Incentives Act, Cap. 114 (the IDI Act) aimed at fostering the establishment of 
manufacturing, processing, and assembling industrie s;  tourism projects, including accommodation, 
vessels, sport facilities and tourist sites;  service-orie nted repair activities;  and agricultural and fishery 
enterprises.  Incentives were provided through a sy stem of tax exemptions.  Potential benefits 
included (i) income tax holidays including, for non-resi dent investors, on the withholding tax for up to 
five years;  (ii) accelerated depreciation of assets;   (iii) exemption from customs duties on imported 
capital goods for up to two years;  (iv) duty drawb ack on imported raw materials and components;  (v) 
a 50 per cent exemption from Port and Services Tax;   and (vi) the right for non-resident companies WT/ACC/SPEC/TON/4/Rev.1 
Page 4  
 
 and shareholders to repatriate profits and capital gains.  Any person, irrespective of nationality, 
wishing to benefit from these incentives had to appl y for a Development Licence to the Minister of 
Labour, Commerce and Industry.  Be nefits granted depended on the na ture of the project and were 
listed in the Development Licence.   
15. Applicants for Development Licences were require d to complete a form and provide information 
on the nature of the project, its cost and fina ncing;  employment requirements, including the 
employment of expatriate staff;  potential market s for the products;  details on the incentives sought;  
information on the experience and financial backgr ound of the applicant and all shareholders;  and 
needs for electricity and water.  In addition, applic ants were requested to submit financial statements 
or bank references indicating their financial stre ngth, and a business plan including information on 
proposed production, market prospects, financia l matters, personal arrangements, office and land 
lease, and cash flow projections for the first three years of activity.  In the case of tourism prime 
facility projects, a construction plan  duly approved by the Ministry of Health and Ministry of Work 
was required.  A TOP200.00 fee was charged for each application for a Development Licence.   
16. Applications were examined by a Standing Advi sory Committee established within the Ministry 
of Labour, Commerce, and Industry.  The Committee included the Minister and Secretary of Labour, 
Commerce and Industry;  the Secretary of Finance;  the Managing Director of the Tonga Development Bank;  the General Mana ger of the Bank of Tonga;  the Director of the Central Planning 
Department;  and ad hoc members as required.   [The Committee made recommendations to the 
Minister.  Applicants were informed in writing of th e decision and, in case of approval, of the terms of 
the licence.  The licence could be used to obtain a work permit – or Temporary Residence Visa – from the immigration authorities.  Licence holders had to  register their company with the Registrar of 
Companies as provided for in the Companies Act, Ca p. 27.  Registration was subject to the approval 
of the Privy Council].  Although not specifically stated  in the Act, in case of rejection the refusal to 
deliver a licence could be appealed to the Ministry  of Labour, Commerce, and Industry.  In 1998, 68 
projects involving a total investment of TOP14 m illion had been approved, mainly in manufacturing 
and agriculture.  By 1998, 1,104 licences had been  delivered, leading to the creation of 1,072 
businesses, of which 860 were still active.   
17. Domestic and foreign investors were entitled to the same benefits and subject to the same 
procedures.  However, in the case of foreign inv estment the Committee would study the extent to 
which the project provided substantial and continui ng benefits to the people and economy of Tonga 
and include these considerations in the recommenda tion to the Minister.  The Committee examined 
whether the project (i) involved the processing of local  resources;  (ii) substantially contributed to  WT/ACC/SPEC/TON/4/Rev.1 
 Page 5 
 
 
 local added value;  (iii) was labour intensive;  (i v) had export potential;  (v) contributed to import 
substitution;  (vi) had a reasonable level of local pa rticipation;  (vii) would have a multiplier effect 
leading to the creation of ancillary enterprises;  (viii) was likely to complement other domestic 
manufactures;  (ix) and satisfied any other crite ria the Committee might consider relevant.  The 
representative of Tonga stated, however, that th ese criteria had not been applied in practice. 
18. Several Members were seriously concerned ab out the discretionary powers exercised in 
investment approval decisions in Tonga and some of  the criteria used in deciding whether to grant a 
licence for foreign investment.  These Members obser ved that the benefits provided under the IDI Act 
would seem, in law or in fact, to be contingent  upon export performance, im port substitution, or local 
content requirements.  The concerns raised by Me mbers are discussed below in further detail in the 
sections "Industrial policy, including subsidies" a nd "Trade-Related Investment Measures (TRIMs)". 
19. The representative of Tonga stated that Parliame nt had recently passed a new law - the Foreign 
Investment Act 2002 - with a view to bringing Tonga's legislation into line with WTO provisions.  The new Law would become effective upon completi on of the implementing regulations.  The Act 
detailed the rules guiding foreign investment and lis ted the activities reserved for Tongan nationals or 
restricted to foreign investors.  Regulations specifyin g the conditions for a foreign investor to invest in 
a restricted activity were being drafted.  Unless an  activity was designated as restricted, reserved, or 
prohibited, there would be no foreign participatio n limitations, in law or in practice, for foreign 
investors wishing to invest into Tonga.  A copy of the regulations would be forwarded to Working 
Party members once finalized.   
20. He noted the concerns voiced by Members in r espect of benefits provi ded under the Industrial 
Development Incentives Act (IDI) and similar concerns  raised regarding the Foreign Investment Act 
(FIA), and confirmed that no benefits under the ID I or under the FIA had been or would be made 
contingent, in law or in fact, on export performance, import substitution or local content requirements.   
21. In response to the concern of a Member re garding the current absence of regulations 
implementing the Business Licence Act, which might po ssibly include disguised restrictions on trade, 
the representative of Tonga maintained that th e Business Licence Act provided for simple and 
transparent procedures, of a non-discriminatory nature  and therefore applied equally to nationals and 
foreigners, for the issuance of business licenses.  He  stressed that the implementing regulations would 
not include hidden trade restrictions.  A copy of the regulations would be forwarded to the Working 
Party once finalized.   WT/ACC/SPEC/TON/4/Rev.1 
Page 6  
 
 22. The representative of Tonga stated that Tonga woul d be prepared to enter a Protocol commitment 
to abide by the relevant WTO provisions, includ ing Article 3 of the Agreement on Subsidies and 
Countervailing Measures, and to ensure that its laws would be modified to incorporate this 
commitment. 
State ownership and privatization
 
23. The representative of Tonga said that a large number of services, infrastructure, and commercial 
activities had traditionally been government-funded.  In  1998, his Government retained a stake, either 
through equity or loans, in 26 en terprises, including public utilities.   
24. His Government aimed at rationalisation of public sector activities, including through 
privatization.  A Cabinet Sub-Committee had been es tablished to plan the restructuring of government 
commercial activities, and a Public Enterprise Unit to  develop a programme of privatization.  Since 
1998, his Government had corporatized the Port Authority and the Tonga Telecommunication 
Commission, and privatized the Royal Beer Co. Ltd ..  Postal services would be corporatized once the 
debts of Tonga Post have been paid off.  The G overnment Store, which used to supply the public and 
private sector with hardware and other products ha d ceased operations in 1999, except for the disposal 
of goods undergoing processing.  A list of ente rprises with State ownership as per 30 June 2002, 
including information on their activities and market pos ition, is provided in Table 1.  He expected the 
privatization programme to be comp leted over a period of 5 to 10 years.  He confirmed that Tonga 
maintained no restrictions on foreign partic ipation in the privatisation programme. 
25. Tonga's public utilities included the Tonga Water Board, established under the 1978 Water Board 
Act, Cap. 92, and responsible for the supply of water in the main populated areas;  and the Tonga 
Broadcasting Commission, established under the Broadcasting Commission Act, Cap. 100, which 
operated public radio services.  Private sector represent atives participated in the Board of Directors of 
these enterprises.  Home Gas, a subsidiary of Tonga Investment Limited, was the sole distributor of 
cooking gas in Tonga.  Electricity was now provided by a private enterprise and the Government had 
corporatized its telecommunications provider, wh ich now competed with another supplier in the 
market. 
Pricing policies   
26. The representative of Tonga said that Tonga applie d price control on basic necessities to protect 
consumers, in particular low income families.  Maximum prices were set for these goods to prevent 
wholesale and retail suppliers from taking advantag e of local monopoly conditions resulting from the  WT/ACC/SPEC/TON/4/Rev.1 
 Page 7 
 
 
 small size of the economy.  Commodities currently subj ect to price control are listed in Table 2.  None 
of these products, except for bread, were produced locally, and State-owned enterprises did not 
operate in the markets of price controlled goods.  Prices for services were determined freely by market 
forces.   
27. The legal basis for Tonga's price controls was th e 1988 Price and Wage Control Act, Cap. 113.  
Controls were enforced by the Competent Author ity Committee, established within the Ministry of 
Labour, Commerce, and Industry, and chaired by the Minister.  Other members of the Committee 
included the Minister of Finance, Secretary of Labour, Commerce and Industry, Deputy Secretary of 
Commerce, and three representatives of the privat e sector.  The Committee met on a monthly basis 
and was responsible for setting maximum prices,  monitoring minimum wages, and carrying out 
controls, including on-site inspections at traders'  premises.  The Committee could request traders to 
submit oral or written information on prices, wages and working hours and, in case of violation, to 
prohibit the sale of the incriminated goods until prices had been modified.   
28. Responding to specific questions, the representative of Tonga said that controls were carried out 
at the point of sale, and not at the border, as the pr imary purpose of the price controls was to protect 
the interests of consumers.  He confirmed that Tong a's price controls did not affect the valuation of 
goods for customs purposes.  Tonga's price control mechanisms were enforc ed as maximum mark-up 
percentages, i.e. a percentage over landed cost  for the wholesale trade and a percentage over 
wholesale cost for retail trade in the goods concerne d, except for standard size bread (454 grams) and 
petroleum products.  In the latter cases, the Co mmittee determined the sales prices for these goods.  
He provided detailed information on the ma rk-up calculations in Annex A of document 
WT/ACC/TON/5.  Price controls had recently been eliminated on motor vehicles, motorcycles and 
motor vehicle spare parts.  He added that his G overnment had no plans to reduce the number of goods 
subject to price control, although some discussions had taken place on this matter.  He confirmed that 
all products within the listed categories were subjec t to price control without exception.  The price 
controls in principle applied equally to both domestically-produced and imported goods, although at 
the present time the only product under price cont rol that was produced in Tonga was bread. 
29. In response to concerns of Me mbers who noted that, according to Annex A of WT/ACC/TON/5, 
local agricultural and fish products were not subj ect to price control while imported products were 
covered by controls, which would a ppear to be inconsistent with the provisions of Article III of GATT 
1994, the representative of Tonga stated the readin ess of his Government to amend the Price and 
Wage Control Act 1998 to remove the reference to lo cal agricultural and fish products not subject to 
price control from the Mark-Up Schedule. WT/ACC/SPEC/TON/4/Rev.1 
Page 8  
 
 30. The representative of Tonga confirmed that Tonga  would apply its price control measures in a 
WTO-consistent fashion, and take  into account the interests of exporting WTO Members as provided 
for in Article III:9 of the GATT 1994.  Tonga would also publish the list of any goods and services 
subject to price controls in its Official Gazette.  The Working Party took note of these commitments.  
Competition policy
 
31. The representative of Tonga said that Tonga had no specific legislation addressing competition 
issues, and had no plans to introduce such legislati on.  The Protection Against Unfair Competition Act 
2002 did not establish a competition policy;  it provi ded protection against deceptive industrial and 
commercial practices, including damaging another' s goodwill or reputation, creating confusion, 
misleading the public, and unfair competition in case of secret information. 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
32. The representative of Tonga said that Tonga ha d become a sovereign and independent State 
within the British Commonwealth of Independent  States in 1970.  Tonga was a constitutional 
monarchy headed by His Majesty the King Taufa'ah au Tupou IV, who had acceded to the throne in 
1965.  The current Constitution had been promulga ted the same year.  The King chaired the Privy 
Council - comprising the Prime Minister, Ministers of the Crown and the two Governors of Ha'apai 
and Vava'u, all appointed by His Majesty – which a dvised and assisted His Majesty in his functions.  
The Cabinet, the second branch of the executive, was composed of the Ministers of the Crown and the 
Governors.  Cabinet Ministers held office until their retirement.   
33. Legislative powers were exercised by the Legisl ative Assembly, made up of Privy Councillors 
and Cabinet Ministers, sitting as nobles;  nine representatives of the nobles, elected by the nobles;  and nine representatives of the people elected every three years by universal suffrage.  The Assembly 
was the only organ empowered to a dopt laws (Clause 55 of the Constitu tion).  Bills had to be passed 
three times by the majority of the Assembly members before being presented to His Majesty for 
Royal Assent, and became law upon publication.  The Governors were responsible for the 
implementation of laws within their district.   
34. Judicial power was exercised by the Magistrates'  Court, the Court of Appeal, the Supreme Court 
and, for land-related matters, the Land Court.  Judg es were appointed by His Majesty in Council.  The 
Magistrates' Court was the lowest court, dealing w ith criminal and civil cases for which the sanctions 
foreseen by the law would not exceed TOP1,000 – or three years imprisonment in the case of criminal charges.  The Land Court was the supreme court in ch arge of land related cases, including hereditary  WT/ACC/SPEC/TON/4/Rev.1 
 Page 9 
 
 
 estate taxes and town allotment mortgages.  Tong a's present judicial system did not provide for 
specialized administrative or commercial courts.  Administrative decisions could be appealed under 
the Supreme Court Act.  He acknowledged that Tonga  would need to introduce new legislation giving 
foreign and domestic importers the right to appeal administrative action relating to matters subject to 
WTO provisions to an independent body in full conf ormity with WTO obligations, including Article 
X:3(b) of the GATT 1994.  Details of the steps to  be taken would be provided to Working Party 
members. 
35. [The representative of Tonga confirmed that fro m the date of its accession, Tonga’s laws would 
give foreign and domestic importers and exporters the right to appeal administrative action relating to 
matters subject to WTO provisions to an independent body in full conformity with WTO obligations, 
including Article X:3(b) of the GATT 1994.  The Working Party took note of this commitment.] [The 
representative of Tonga confirmed that from the date  of accession to the WTO, Tonga would abide by 
the provisions of WTO relating to judicial and ad ministrative decisions, including Article X:3 of the 
GATT 1994.  The Working Party took note of this commitment.] 
36. Policies related to foreign trade were formulated  and implemented by the Ministry of Labour, 
Commerce and Industry, in cooperation with the Minist ries of Finance;  Police;   Health;  Agriculture 
and Forestry;  and Fisheries.  His Governme nt had established a Trade Coordination Committee 
chaired by the Minister of Labour, Commerce and I ndustry to coordinate the work of the various 
government entities.  Border control fell under the competence of the Minister  of Finance, who was 
also responsible for customs duties, and taxes a nd excises, as well as the issuance of import licenses 
for some products.  The Minister of Foreign Affairs was in charge of immigration.  He granted entry 
and resident permits and issued import licenses for restricted products.  The Minister of Agriculture 
and Forestry, the Minister for Fisheries and the Mini ster for Health regulated matters of public health, 
quarantine and phytosanitary measur es related to importation and e xportation.  The formulation and 
implementation of policies affecting trade in ser vices involved the Tonga Visitors Bureau, Tonga 
Telecommunications Commission, Tonga Electric Powe r Board, the Ministries of Finance, Civil 
Aviation, Education, Justice, and Ports and Marines.   While trading regulations were set out in laws 
and regulations, residual discretionary powers could also be exercised by the competent Minister 
when required.   
37. The private sector could influence the legisla tive process through consultations held with the 
Ministries through associations such as the Tong a Chamber of Commerce, the Small Business 
Association, the Tonga Tourist Association, the Society of Accountants, the Tonga Business and Professional Women's Federation Inc, and the Law Societ y.  In the reform of trade legislation, the WT/ACC/SPEC/TON/4/Rev.1 
Page 10  
 
 Ministry of Labour, Commerce and Industry c onsulted with the private sector via its 
Government/Private Sector Consultative Committee.   
38. The representative of Tonga acknowledged that im plementing legislation would have to be 
adopted in a number of areas to ensure compliance with WTO regulations.  He presented an overview 
of legislative action resulting from the WTO accession process in document WT/ACC/TON/7, noting that adequate and timely technical assistance woul d be needed to help Tonga in implementing these 
measures.  He confirmed the readiness of his Govern ment to work with the Working Party to help 
identify any further legislative deficiencies.  In response to a specific question concerning the 
procedures to be followed for the ratification of Tonga's Protocol of Accession, he said that the 
Accession Package would have to be approved by the Privy Council.   
39. The representative of Tonga [stated that if laws  or other acts of Tonga should be found to 
contradict international treaties or  agreements, the provisions of the international treaty or agreement, 
such as the WTO, would apply.  The representative of Tonga confirmed that sub-central entities had 
no autonomous authority over measures covered by WTO provisions.  He] confirmed that the 
provisions of the WTO Agreement, including T onga’s Protocol, shall be applied uniformly 
throughout its customs territory and other territo ries under Tonga’s control, any special economic 
zones, and other areas where special regimes for ta riffs, taxes and regulations are established.  He 
added that when apprised of a situation where WTO provisions were not being applied or were 
applied in a non-uniform manner, central authorities would act to enforce WTO provisions without 
requiring affected parties to pe tition through the courts.  The Wo rking Party took note of these 
commitments.  
POLICIES AFFECTING TRADE IN GOODS  
Trading rights (the right to import and export)
 
40. The representative of Tonga said that the Licences Act, Cap. 47, required any natural or legal 
person carrying on any business or calling specified in  a schedule to the Act to take out a licence and 
pay an annual fee.  The schedule covered a wide range of commercial activities, not necessarily linked 
to external trade.  The decision to  issue a licence was not discretionary  or subject to specific criteria, 
but rather a simple "pay-and-serve" process.   
41. He added that a new Business Licences Bill would repeal the Licences Act Cap. 47, and introduce 
a simple, transparent procedure for the issuance of  business licences.  The new legislation aimed at 
bringing Tonga’s rules in this area into line with best international practice and the rules of the WTO,  WT/ACC/SPEC/TON/4/Rev.1 
 Page 11 
 
 
 i.e. Articles VIII:1(a), XI:1 and III:2 and 4 of th e GATT 1994.  The new Act required a licence to be 
issued provided the proposed activity was not prohibited;   the applicant was 18 years of age or older;  
in case of partnerships, that all partners were at l east 18 years of age;  and - for foreign investors - 
possession of a valid foreign investment registratio n certificate.  Any holder of a valid business 
licence could engage in importation or exportation without restriction.  Concerning business licence 
fees, regulations were being drafted that would stip ulate that these fees would be no higher than the 
approximate cost of the services rendered.   
42.  [The representative of Tonga confirmed that from the date of accession, Tonga would ensure that 
its laws and regulations relating to the right to trade in goods and all fees, charges and taxes levied on 
such rights would be in full conformity with its WTO obligations, including Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 and that it would implement such laws and regulations in full 
conformity with these obligations.  The Work ing Party took note if this commitment.] 
1. Import Regulation  
Customs tariff
 
43. Noting that Tonga initially applied the Standard International Trade Classification (SITC), and 
that Tonga's Parliament had rejected proposed changes to Tonga's classification system, some 
Members urged Tonga to implement a customs classi fication system in line with the international 
standard (the Harmonized System).  Trade tax es being an important component of government 
revenue, Tonga was also encouraged to take  steps to diversify its revenue base.   
44. The representative of Tonga replied that his Gove rnment understood the value of joining the HS 
Treaty, but would not be in a position to do so in th e near future for technical reasons.  Tonga levied 
customs duties in accordance with the Customs and Ex cise Act, Cap.67.  It accorded tariff preferences 
to members of the Pacific Island Countries Trade Agreement (PICTA).  Imports from other countries 
were subject to a single set of tariff rates.  Impor t duties were mostly in the 0-30 per cent range, but 
higher rates were applied on motor vehicles, vans and trucks (45 per cent);  petroleum (35 per cent);  
and beer, spirits, tobacco and cigarettes (rates ranging from 150 to 330 per cent ad valorem  or specific 
duty amounts, if higher).  Rates on tobacco had be en increased recently for health reasons and now 
ranged between 187.5 per cent and 525 per cent ( ad valorem  or specific duty amount, whichever was 
higher).  The weighted average level of customs duties had amounted to 18.5 per cent in 1995.   
45. He added that two studies had been commissione d on the subject of tax reform.  The proposals 
contained in these studies and their effect on the economy and governme nt revenue would be WT/ACC/SPEC/TON/4/Rev.1 
Page 12  
 
 reviewed carefully before any decisi on would be taken.  Changes in th e tax system would have to take 
into account the implications of accession to the WTO.   
Other duties and charges
 
46. The representative of Tonga said that, in additi on to customs duties, Tonga levied a 20 per cent 
ad valorem  Port and Services Tax in accordance with th e Port and Services Tax Act (Cap.71).  The 
tax applied to all imported goods except those fu lly or partially exempt under the Industrial 
Development Incentives Act.  Among the items exem pt from the Port and Services tax were essential 
goods such as educational, scientific and cultural books, documents and materials;  fertilizers;  
insecticides, pesticides and fungicid es for agricultural use;  agricultu ral machinery, implements and 
tools;  timber milling machinery;  and stock feed and seeds. 
47. Some Members stated that the Port and Services Tax did not appear to meet the requirement of 
Article VIII of the GATT 1994, and requested that it be eliminated in the context of Tonga's accession 
to the WTO.  Questions were also raised about  the WTO-consistency of Tonga's wharfage dues. 
48. The representative of Tonga acknowledged that th e Port and Services Tax should be considered 
an "other duty or charge" within the meaning of Article II of the GATT 1994, and recalled that Tonga 
had offered to bind its Other Duties and Charges at zero during the negotiations on market access for 
goods.  The Port and Services Tax would accordingl y be removed and bound at zero no later than 1 
January 2006.   
49. Concerning the wharfage dues, these were levied according to Sections 5 and 16 of the Wharves 
Act 1992 (Cap.138) and Amendments (1997, 1998) on goods landed at or exported from the principal 
harbours and airports in Tonga.  The Ports Aut hority charged wharfage on all cargo passing through 
the International Port of Queen Salote Wharf, such as TOP22 on petroleum products in bulk (per 
1,000 litres or part thereof), and a terminal fee of  TOP110 per container or TOP4.30 per ton.  Upon 
examination of the dues levied under the Wharves Act, Tonga recognized that these were not in 
compliance with WTO regulations.  Tonga was acco rdingly prepared to take necessary action to 
ensure that wharfage dues were, as from the da te of accession, in full conformity with WTO 
regulations, including Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994.   
50. [The representative of Tonga confirmed that any ot her duties and charges applied to imports other 
than the normal customs duties and fees and charg es for services rendered would be in accordance 
with WTO provisions no later than 1 January 2006.  He further confirmed that  existing "other duties 
and charges" as defined in Article II:1(b) of  the GATT 1994 would be removed no later than 1  WT/ACC/SPEC/TON/4/Rev.1 
 Page 13 
 
 
 January 2006, and would be bound at "zero" as of that date in Tonga's Schedule of Concessions and 
Commitments on Goods.  The Working Part y took note of this commitment.] 
Tariff rate quotas, tariff exemptions  
51. The representative of Tonga said that Tonga did not apply tariff rate quotas on any product, and 
had no intention to introduce such quotas. 
52. Tariff exemptions were granted according to the Customs and Excise Act.  The coverage of the 
exemptions required a legal basis and could not be extended administ ratively.  Goods subject to duty 
exemption were goods for the use of the reigning So vereign, the Government of Tonga, or accredited 
diplomatic representatives and technical assistance  officials;  personal effects and accompanied 
luggage of passengers (within specified limits);  ground equipment, fuel and lubricants for air 
services;  educational, scientific and cultural articles;   charitable gifts;  marine life-saving equipment;  
patterns, samples, advertising matter and docume nts;  religious goods;  and trophies, medals and 
photographs.  A more detailed description of such goods (mostly not by HS number) was provided in 
document WT/ACC/TON/4, pp. 22-25.  The coverage of the import duty exemptions and exemptions 
from Port and Services Tax were not identical.   
53. [The representative of Tonga confirmed that upon Tonga’s accession to the WTO, any tariff 
quotas and tariff exemptions would only be implemented in confor mity with the relevant WTO 
provisions including Article I of the GATT 1994 and the TRIMs Agreement.  The Working Party took note of this commitment.] 
Fees and charges for services rendered
 
54. Some Members reminded Tonga that GATT Article  VIII provided that all fees and charges be 
limited to the approximate cost of the services rende red, and not to constitute  an additional fiscal tax 
on imports.  As Tonga's 20 per cent Port and Servi ces Tax and wharfage dues, based on length and/or 
internal space, did not appear directly related to th e cost of any particular customs service, Tonga was 
urged to bring its fee structure into conform ity with the requirements of GATT Article VIII. 
55. The representative of Tonga acknowledged that th e Port and Services Tax and the wharfage dues 
were fiscal charges, and as such would be dea lt with as "Other Duties and Charges" within the 
meaning of GATT Article II (see section above).  His Government would cons ider the establishment 
of a system whereby the users paid for the trade-re lated services rendered by  public institutions.  He 
added that the Ports Authority collected berthage  fees on all overseas vessels including general cargo 
vessels, fishing boats, gas carriers, tankers, squash  pumpkin vessels etc.  These charges, which in his WT/ACC/SPEC/TON/4/Rev.1 
Page 14  
 
 view were of purely commercial na ture, covered the use of berth a nd all associated fixtures, facilities 
and services.  He also provided detailed inform ation on quarantine fees paid by exporters of 
agricultural products, which is reproduced in Table 3. 
56. [The representative of Tonga confirmed that a ll fees and charges imposed by Tonga on or in 
connection with importation or exportation would be  operated in conformity  with the relevant 
provisions of the WTO Agreement, in particular Ar ticles VIII and X of GATT 1994.  From the date of 
accession, Tonga would not apply, introduce or re introduce any fees and charges for services rendered 
that were applied to imports on an ad valorem basi s.  Information regarding the application and level 
of such fees and charges, revenues collected and their use, would be provided to WTO Members on 
request.  The Working Party to ok note of these commitments.] 
Application of internal taxes
 
57. The representative of Tonga said that importe d and domestically-produced beer (HS number 
2203.0010) was subject to an excise tax of TOP0. 75 per litre or 20 per cent ad valorem, whichever 
was higher.  Beer was, for the time being, the only product on which excise duty was levied.   
58. Value added tax (VAT) had not been introduced in Tonga, but a sales tax of 5 per cent was levied 
on most goods and services.  Exempt from sales ta x were goods and services sold to the reigning 
Sovereign or to the Government;  goods sold among vendors or businesses for the purpose of further 
retailing, manufacturing or processing before being so ld to the public;  local agriculture, livestock and 
fisheries products sold at local markets and farm gates by individual sellers;  goods sold by street 
vendors such as handicrafts, woodcarvings, clothing and p eanuts;  tickets for international travel sold 
to patients upon approval and certification by the Mi nister of Health;  building materials used in 
residential construction (exemption certificate to be  issued by the Minister), all of which were 
imported;  and goods destined for exportation. 
59. Some Members noted that Tonga's sales tax exemption on local agriculture, livestock and 
fisheries products, and goods sold among vendors and businesses, involved elements that might 
discriminate against imports.  Tonga was invited to provide further clarification on how these 
exemptions would not conflict with the pr ovisions of Article III of the GATT 1994.   
60. The representative of Tonga replied that the sal es tax exemption on local agriculture, livestock 
and fisheries products applied only to very small i ndividual producers who sold their products locally.  
Domestic products sold by large local firms were  subject to sales tax.  Small producers had been 
exempted due to difficulties in tax collection and the disproportionate costs involved in collecting  WT/ACC/SPEC/TON/4/Rev.1 
 Page 15 
 
 
 relatively small amounts of sales tax.  In this resp ect, Tonga's practice did not differ from that of many 
Members of the WTO.  As to goods sold among ve ndors and businesses, registration with the Inland 
Revenue Department was required for vendors or bu sinesses to qualify for a sales tax exemption.  He 
did not consider this requirement an obstacle to tr ade as the only purpose of the registration procedure 
was to administer the collection of revenue.  No further registration was required.  Tonga's present 
sales tax regime would be terminated as part of the taxation reform programme. 
61. He added that a new taxation regime was being designed with the assistance of the Pacific 
Financial Technical Assistance Centre (PFTAC).  U nder the new system, taxes levied in Tonga would 
include a simplified individual income tax;  a single rate corporate income tax;  a single rate customs 
duty;  excise taxes on imports and local production of alcohol, tobacco, petroleum products and motor 
vehicles;  and a broad based consumption tax, th e Tongan Consumption Tax (TCT).  The TCT would 
replace the sales tax, fuel sales tax, and ports and services tax.  The expected date for introduction of 
the TCT and excise taxes on alcohol, tobacco, petroleum products, and motor vehicles was 1 April 2005. 
62. [The representative of Tonga confirmed that from the date of accession Tonga would apply its 
domestic taxes, including excise and consumption taxes, in full compliance with the relevant 
provisions of the WTO, including Articles I and III of the GATT 1994, in a non-discriminatory manner to imports from all WTO Members and to do mestically-produced goods.  The Working Party 
took note of this commitment.] 
Quantitative import restrictions, includin g prohibitions, quotas and licensing systems
 
63. The representative of Tonga said that Tonga pr ohibited imports of certa in items, and importation 
of some goods was restricted and required a specia l licence.  The items affected by these provisions 
are enumerated in Tables 4(a) and 4(b), respectiv ely.  He added that Tonga had not established 
specific import quotas for any product, and had no plans to introduce such quotas.   
64. Some Members requested more information on the rationale behind the import prohibition on 
fireworks, Tonga's definition of indecent articles a nd seditious matter, the justification for the current 
restrictions on imported motor vehicles, brandy, wh isky and rum, eggs, and cabin and ships biscuits, 
and any plans to modify or remove these import restrictions.   
65. The representative of Tonga replied that the importation of fireworks and indecent articles, 
including pornography, was regulated for safety reasons  and to protect public morals.  The Minister of 
Police could authorize importation of fireworks.  Tonga did not manufacture its own fireworks.  WT/ACC/SPEC/TON/4/Rev.1 
Page 16  
 
 Indecent articles and seditious matter were define d in accordance with the usual discretionary 
definition.  Motor vehicles had been included on the "r estricted list" to monitor imports for road safety 
reasons, and licences were issued freely by the Minister of Finance and the Minister of Police unless a 
vehicle was deemed unsafe.  Importation of eggs w as monitored and restricted to protect local poultry 
farms.  Tonga restricted imports of spirits for h ealth reasons.  He added that Tonga was ready to 
remove its licensing requirements for eggs, cabin and ships biscuits, brandy, whisky, and rum from 
the date of its accession to the WTO and was c onsidering the suppression of the licensing procedure 
for motor vehicles.   
66. The representative of Tonga added that any pers on or firm wishing to import goods into Tonga 
needed an import licence, covering each individual  consignment.  Mixed consignments required 
separate licences.  The licences we re issued by the Licensing Unit at the Ministry of Labour, 
Commerce and Industries according to the Licenses Act,  Cap. 47.  Except for the restrictions noted 
above, the licensing system was liberal, and procedures were simple and straightforward.  Incomplete 
applications, or failure to abide by established proce dures, might lead to rejection of an application.  
However, applications could be re-submitted and refusals could be appealed to the Minister for 
Labour, Commerce and Industries, or referred to the court system.   
67. Licences were not transferable among importers, but  carried indefinite va lidity and no penalty 
applied to unused licences.  The system had been  revised to eliminate discriminatory treatment of 
foreigners, and import licences were now granted au tomatically to Tongans and non-Tongans alike.  
A Trading Licence Screening Committee, which had been considering each application lodged by 
non-Tongans, had been abolished.  Although the licensing system facilitated the monitoring of 
imports and the collection of statistics, he acknowle dged that its principal purpose was to generate 
revenue for his Government.  In 1999, import licences had raised more than TOP200,000 (about 
US$140,000).  The licensing fees, differentiated by type  of product, are enumerated in Table 5.   
68. Some Members reminded Tonga that Article  1:2 of the Agreement on Import Licensing 
Procedures stated that licensing procedures shoul d be administered in conformity with GATT 
provisions.  Article VIII of the GATT 1994 provided for all non-tariff import fees and charges to be 
limited in amount to the approximate cost of th e services rendered, and not to constitute a tax on 
imports or exports.  Moreover, the Agreemen t on Import Licensing Procedures required licensing 
systems to be operated in a transparent, predictabl e, fair and equitable manner, and it was noted that 
the private sector had expressed dissatisfaction with  Tonga's system of import (and export) licensing.  
Tonga was consequently urged to bring its licensing arrangements into conformity with the WTO.    WT/ACC/SPEC/TON/4/Rev.1 
 Page 17 
 
 
 69. The representative of Tonga replied that his Gove rnment was reviewing the issues raised.  Taking 
into account of the views of WTO Members, his Gove rnment would be prepared to amend the current 
procedures to ensure compliance with Article VIII of the GATT 1994.   
70. [The representative of Tonga confirmed that , from the date of accession, Tonga would not 
introduce, re-introduce or apply quantitative restrict ions on imports, or other non-tariff measures such 
as licensing, quotas, prohibitions, bans and other restri ctions having equivalent effect that cannot be 
justified under the provisions of the WTO Agreemen t.  The legal authority of the Government of 
Tonga to restrict or prohibit importation of goods  into Tonga would be applied from the date of 
accession in conformity with the relevant requirements of the WTO, in particular Articles XI, XII, XIII, XVIII, XIX, XX, and XXI of the GATT 1994, and the Agreements  on Agriculture, the 
Application of Sanitary and Phytosanitary Measure s, Import Licensing Procedures, Safeguards, and 
Technical Barriers to Trade.  The Worki ng Party took note of these commitments.] 
Customs valuation
 
71. The representative of Tonga said that Tonga was using the Brussels Definition of Value (BDV) 
system for the purposes of customs valuation.  The present system, set out in the Customs and Excise 
Act (in Part II, sections 15 and 16), was not based on transaction value as experience had shown that 
invoices presented to customs in Tonga in some c ases did not reflect the price actually paid or 
payable.   
72. In order to assist Tonga in evaluating the key areas where additional legislation and institutions 
might be necessary, a Member reminded Tonga that transaction value as defined in Article 1 of the 
Agreement on the Implementation of Article VII of the GATT 1994 was the preferred method of 
appraisement, followed by the transaction value of  identical merchandise, the transaction value of 
similar merchandise, the deductive value, computed value, and finally the fallback method.  Tonga's 
current legislation did not appear to provide for an y of these methods of valuation.  Article 7 of the 
Agreement prohibited appraisals based on (i) the selling price in the country of importation;  
(ii) a system providing for the acceptance for cu stoms purposes of the higher of two alternative 
values;  (iii) the price of goods on the domestic market  of the country of exportation;  (iv) the cost of 
production other than computed values having been de termined for identical or similar goods;  (v) the 
price of goods for export to a country other than th e country of importation;  (vi) minimum customs 
values;  or (vii) arbitrary or fictitious values.  Tong a's legislation would also have to provide adequate 
protection for the treatment of confidential info rmation in accordance with Article 10 of the 
Agreement;  transparency provisions ensuring the pub lication of laws, regulations, judicial decisions 
and administrative rulings regarding the valuation of merchandise (Article 12);  provisions granting WT/ACC/SPEC/TON/4/Rev.1 
Page 18  
 
 importers the right to a written e xplanation of how judicial and administrative valuation decisions had 
been determined (Articles 11.3 a nd 16);  and bonded entry of merchandise allowing importers to 
withdraw goods against sufficient surety or depos it to cover the ultimate payment of customs duties 
when the final determination of the cust oms value was being delayed (Article 13). 
73. The representative of Tonga recognised that Tonga's present valuation rules did not conform to 
WTO requirements.  Tonga planned to introduce a new WTO-compatible system as soon as is 
practicable.  The Customs (Amendment) Bill 2003, addressing the changes necessary to the valuation 
system, had been passed by the Tongan Parliame nt in September 2003, and the necessary further 
amendments (addressing other requirements of the Agreement, including Article 9, 10, 11, 12, 13 and 17) had been drafted.   
74. The representative of Tonga indicated that the ma jor problem for Tonga, in complying with WTO 
requirements, would be to implement Articles 1-6 of the WTO Customs Valuation Agreement (i.e., 
use of transaction value and the hierarchy of altern ative methods of valuation) correctly.  In this 
regard, the Government of Tonga requested that the Working Party grant a transitional period from 
the date of its accession of approximately two years, until 1 August 2005, to implement the 
Agreement fully.   
75. During this period, Tonga would ensure that its regulations under current legislation in place and 
additional legislation implemented during the tr ansition concerning customs valuation would be 
applied on a non-discriminatory basis to all imports.  Further, Tonga would ensure that any changes 
made in its laws, regulations and practice during the transition period would not result in a lesser 
degree of consistency with the provisions of the Agreement on Customs Valuation than existed on the 
date of accession.  Tonga would [fully] partic ipate in the work of the Committee on Customs 
Valuation [within the limits of its resources].  He  added that Tonga would seek out all available 
technical assistance to ensure th at its capacity to fully implement the Agreement upon expiration of 
the transition period is assured.  The new legislati on would be in full confor mity with relevant WTO 
provisions.  A copy of the text of the proposed am endments had been submitted for review by the 
Working Party, and it was expected that these amendm ents would be passed by Parliament by the end 
of 2003.  In response to requests from delegations fo r more specificity, he proposed that Tonga would 
proceed to conform its customs regime with  the requirements of the Agreement on the 
Implementation of Article VII of the GATT 1994 in accordance with the action plan reproduced in 
Table 6, setting out details of the steps that still rema ined to be taken in order to achieve this objective 
and a timetable for each step.    WT/ACC/SPEC/TON/4/Rev.1 
 Page 19 
 
 
 [Table 6:  Action Plan for conformity with the  
Agreement on the Implementation of Article VII of the GATT 1994  
Action Deadline 
Working Party review of text and submission of legislation to the 
Parliament Prior to accession 
Parliamentary passage of legislation for WTO-consiste nt valuation rules No later than 1 January 2004 
Drafting of regulations for implementation and enforcement of the 
amended Customs Act No later than 1 January 2005 
Appointment of staff - assessors, collectors, aud itors and inspectors No later than 1 July 2005 
Development of manuals and operating procedures No later than 1 July 2005 
Training for customs officials and officers No later than 1 August 2005 
Training for users No later than 1 August 2005 
Commencement of new Valuation System. 
Full implementation of the Agreement on the Implementation of Article VII of the GATT 1994. No later than 1 August 2005 
] 
 
76. The representative of Tonga confirmed that le gislation on the valuation of imports for 
customs and taxation purposes conforming to th e requirements of the WTO Agreement on the 
Implementation of Article VII of  the GATT 1994 had been drafted and had been submitted to the 
Parliament for enactment.  [Tonga would apply full y the Agreement no later than [1 August 2005] 
according to the action plan in Table 6.  During this period the scope of implementation of other 
aspects of the Agreement and other measures as describ ed in paragraphs [74 a nd 75] would be applied 
by Tonga.  The Working Party took note of this commitment.] 
 
Rules of origin  
77. The representative of Tonga said that importers were required to provide a combined 
certificate and invoice for imported goods, including de tails regarding the country of origin.  Other 
than this requirement, Tonga applied no specific rules of origin.  
78. A Member stated that Tonga should implemen t the Agreement on Rules of Origin - under 
which Tonga would have certain obligations includ ing in regard to the transparency of laws, 
regulations and practices regarding rules of origin - from the date of accession.  Tonga should abide 
by the transitional disciplines of Article 2 of th e Agreement from the date of accession and Tonga's 
laws should be amended to incorporate the requireme nts of Article 2(h) and Annex II, paragraph 3(d), 
i.e. that for non-preferential and preferential rules of  origin, respectively, the customs authority will 
provide upon the request of an exporter, importer or  any person with a justif iable cause an assessment 
of the origin of the import and outline the terms unde r which it will be provided, and that any request 
for such an assessment would be accepted even be fore trade in the goods concerned began.  Upon WT/ACC/SPEC/TON/4/Rev.1 
Page 20  
 
 completion of the international work programme for the harmonisation of rules of origin, Article 3 of 
the Agreement would also apply to Tonga. 
79. A Member noted that Tonga had ratified th e Pacific Island Countries Trade Agreement 
(PICTA), which established regional rules of origin.  A Rules of Origin Committee was to be formed 
by 13 June 2003 to implement the specific Rules of Origin Treaty obligations under PICTA.  This Member consequently asked Tonga to confirm that its  preferential and non-preferential rules of origin 
would comply with the WTO Agreement on Rules of Origin upon accession. 
80. [The representative of Tonga confirmed that, fro m the date of accession, Tonga’s preferential 
and non-preferential rules of origin would comply fully with the WTO Agreement on Rules of Origin, 
including the provisions of Article 2(h) and Annex II , paragraph 3(d) of the Agreement, i.e., that for 
non-preferential and preferential rules of origin, respectively, the customs authority will accept 
requests from an exporter, importer or any person w ith a justifiable cause for an assessment of the 
origin of the import [and will outline the terms unde r which it will be provided.  Tonga would also 
abide by the relevant WTO provisions on transparency  and the provision of information about its rules 
of origin and their application].  The Working Party took note of this commitment.] 
Preshipment inspection
 
81. The representative of Tonga said that that To nga's legislation had no provision for pre-
shipment inspection. 
82. [The representative of Tonga stated that if preshipment inspection requirements were 
introduced, they would be temporary and in confor mity with the requirements of the Agreement on 
Preshipment Inspection.  Tonga would take full responsibility to ensure that such enterprises 
operating on its behalf complied with the provisions of WTO Agreements.  Decisions by such firms 
could be appealed by importers in the same way as administrative decisions taken by the Government 
of Tonga.  The Working Party took note of these commitments.] 
Anti-dumping, countervailing duties and safeguard regimes  
83. The representative of Tonga said that Tonga ha d no specific legislation providing for the 
imposition of anti-dumping, countervailing duty, or  safeguard measures, and had no plans to 
introduce such legislation.  In response to a Me mber's comment, he confirmed that Tonga did not 
intend to use tariff flexibility to address unfair or excessive imports.  WT/ACC/SPEC/TON/4/Rev.1 
 Page 21 
 
 
 84. [The representative of Tonga confirmed th at Tonga would not apply any anti-dumping, 
countervailing or safeguard measures until it had im plemented [and notified] appropriate laws in 
conformity with the provisions of the WTO Agreements on these matters.   Tonga would ensure the 
full conformity of any such legislation with th e relevant WTO provisions, including Article VI and 
XIX of the GATT 1994 and the Agreement on the Im plementation of Article VI, the Agreement on 
Subsidies and Countervailing Measures and the Agreem ent on Safeguards.  After such legislation was 
implemented [and notified], Tonga would only a pply any anti-dumping duties, countervailing duties 
and safeguard measures in full c onformity with the relevant WTO provisions.  The Working Party 
took note of these commitments.] 
2. Export regulation  
Customs tariffs, fees and charges for services rende red, application of internal taxes to exports  
85. The representative of Tonga said that the require ments applicable to exportation were broadly 
similar to those affecting imports.  Thus, a pr ospective exporter in possession of a valid business 
licence should proceed to obtain an export licence fo r each consignment to be sold abroad.  Export 
licences were issued by the Ministry of Labour, Commerce and Industries against payment of a fee, 
differentiated according to the product exported.  The fees applicable for export licences are listed in 
Table 7.  Tonga did not levy export duty on any item.   
86. Some Members noted that GATT Article VIII al so covered export fees and charges, which 
accordingly should be limited to the approximate cost of the services rendered.  Tonga was 
encouraged to bring its export licensing fee struct ure into conformity with the requirements of GATT 
Article VIII.   
87. The representative of Tonga replied that his Government was reviewing the export licensing 
fee structure in the light of the views of WTO Members.  
88. [The representative of Tonga confirmed that fro m the date of accession, Tonga would ensure 
that its export licensing fee regime would be in fu ll conformity with its WTO obligations, including 
Articles VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994.  The Working Party took note if this 
commitment.] 
Export restrictions  
89. The representative of Tonga said that Tonga prohibited exportation of raw coral and specified 
Tongan cultural articles.  Certain other items were r estricted and needed speci al authorization to be WT/ACC/SPEC/TON/4/Rev.1 
Page 22  
 
 exported.  Approval from the Director of Health was required for exportation of medical biological 
and organic products;  chemicals;  drugs including narcotic and barbiturat es;  poisons;  and second-
hand clothing.  The Director of Agriculture authori zed exports of veterinary biological and organic 
products;  animals, birds, fish and reptiles;  insects and gastropods;  plants and fungi;  seeds;  and trees 
and timber.  No quantitative restrictions applied to exports from Tonga, but - as noted above - a 
general export licensing procedure, applied on a consignment basis, was being enforced for revenue 
purposes. 
90. Asked to explain the export restrictions on agricu ltural products, he added that exports of rare 
and indigenous species (plants and animals) were restricted for environmental reasons.  Size and 
maturity, as well as requirements established in the country of importation, were determining factors 
in the exportation of some agricultural products.  Tonga subjected medical, biological and organic 
products to quarantine to prevent the spread of diseases, and narcotics-related drugs and chemicals 
were restricted.  He cited health reasons to jus tify Tonga's export restriction on second-hand clothing.  
He confirmed that the application and approva l procedures were identical for Tongans and non-
Tongans. 
91. [The representative of Tonga stated that from th e date of accession, Tonga’s applied laws and 
regulations would be in conformity with the rele vant provisions of the WTO, including Articles XI, 
XVII, XX and XXI of the GATT 1994.  The Working Party took note if this commitment.] 
Export subsidies
 
92. The representative of Tonga said that TongaTrad e had been established as a "search engine" 
for local producers exploring new potential ma rkets overseas. TongaTrade identified the markets 
through research and gap analysis, assisted and f acilitated the development of exporters' marketing 
skills, and facilitated the developmen t and implementation of market management plans for groups of 
products.   
93. Export financing was available from the norma l commercial banking system or through the 
Tonga Development Bank (TDB).  The TDB provi ded facilities including term loans - on purely 
commercial terms - for the production of commodities such  as squash, vanilla and root crops;  loans to 
cover costs such as freight, inputs (e.g. fertilizer and chemicals) and marketing;  as well as loans to 
companies purchasing export commodities, such as vanilla .  Together with the Ministry of Agriculture 
and Forestry, the TDB administered an export diversification fund whereby the TDB provided loans to companies or registered societies for all matters  pertaining to the export of produce.  The fund had 
assisted in the development of squash exports in th e early 1990s.  All credits extended under this fund,  WT/ACC/SPEC/TON/4/Rev.1 
 Page 23 
 
 
 in all TOP1.05 million, had been fully repaid.  In addition, a Venture Capital Fund had been 
established to provide equity capital support for the development of viable private sector projects.  
Capital was only provided to successful companies wi shing to expand their activities.  The facility 
was available to any type of business and not calcula ted in relation to exports, but priority was given 
to projects promoting exports or import substituti on, foreign exchange earnings, the creation of 
employment, training opportunities and the intr oduction of new skills.  The maximum amount 
invested in a single project was TOP50,000 (about US$25,000).  Only three projects had been 
financed over a period of three years.   
94. The Tonga Reserve Bank had established an e xport guarantee scheme to guarantee loans from 
overseas sources.  However, this scheme had never b een used.  The Government of Tonga had, on an 
ad hoc basis, provided support to growers of s quash pumpkin against losses caused by drought and 
other natural disasters.  Support provided to squ ash pumpkins growers would be detailed in Tonga's 
Domestic Support Tables.  He stressed these measures had never involved any export price or similar guarantee.   
95. The representative of Tonga added that Tonga  benefitted from a number of export market 
development programmes and schem es administered elsewhere.  The Forum Secretariat’s export 
market development programme financed marketi ng missions to Australia, New Zealand and Japan 
for companies in Tonga with export potential.  Th e programme was offered through the offices of the 
South Pacific Trade Commission in Sydney (Australia), Auckland (New Zealand) and Tokyo (Japan).  
These offices also financed trade fairs and exhibitio ns to promote products from the Pacific Islands.  
The Forum Secretariat supported private sector deve lopment in Pacific Island Countries, and operated 
a marketing support fund directed towards export-orie nted industries.  In addition, the Commonwealth 
Secretariat had funded participation by Tongan comp anies in trade fairs and exhibitions and provided 
technical assistance to export-oriented industries in  Tonga.  The ACP-EU Centre for Development of 
Industry financed marketing studies and capital fo r joint ventures between European Communities' 
and Tongan enterprises, especially those with an  export orientation, and the European Commission, 
through the European Development Fund, had funded market studies for export-oriented industries in 
Tonga and assisted in the production of  promotion and marketing material. 
96. Tonga’s Industrial Development Incentiv es Act encouraged manufacturing (export or 
otherwise) by providing import duty exemptions for holders of a Development Licence in respect of 
imported semi-finished products a nd/or raw materials, including packaging materials used in the 
processing, manufacturing or assembly of products.  He confirmed that no benefits under the 
Industrial Development Incentive Act were made contingent, in law or  in fact, on export performance.  WT/ACC/SPEC/TON/4/Rev.1 
Page 24  
 
 He further confirmed that the benefits granted under the Act were not subject to national treatment or 
market access limitations.  Criteri a for obtaining benefits under the Industrial Development Incentives 
Act are described in the section "Investment regime". 
3. Internal policies affecting foreign trade in goods  
Industrial policy, including subsidies
 
97. The representative of Tonga said that his G overnment’s industrial development policies 
included encouraging private sector development,  through the Industrial Development Incentive (IDI) 
Act;  improving efficiency through skills training ;  promoting export-oriented manufacturing;  
developing traditional and non-traditional agricultu ral products having poten tial for added value 
through processing, notably cassava, kava, vanilla  and pumpkins;  and establishing TongaTrade as a 
centralised agricultural and commodity export prom otion wing of the Ministry of Labour, Commerce 
and Industries.   
98. Some Members stated that some of the benef its granted to holders of Development Licences 
issued in accordance with the Industrial Develo pment Incentives Act such as exemption from income 
tax for up to five years;  exemption from withholding tax for the same period;  accelerated 
depreciation of assets;  customs duties exempti ons on imported goods;  and a 50 per cent exemption 
from the Port and Services Tax would - to the extent  that these benefits were made contingent on 
export performance or import substitu tion in law or in fact - appear to violate the WTO Agreement on 
Subsidies and Countervailing Measures.  Tonga was thus urged to amend the Industrial Development 
Incentives Act.   
99. The representative of Tonga replied that no be nefits granted under the Industrial Development 
Incentives Act had been or would be granted on  the basis of export performance or import 
substitution.  However, the Industr ial Development Incentives Act would be repealed by the Foreign 
Investment Act.  The new Act would enter into fo rce once the regulations had been finalized.  No 
benefits were granted under the new Act. 
100. [The representative of Tonga stated that his Government did not currently, and would not in 
the future, grant any subsidies, including export subsidies, which met a definition of a prohibited 
subsidy within the meaning of Article 3 of the Ag reement on Subsidies and Countervailing Measures.  
[He confirmed that the Industrial Development In centives Act would be repealed prior to accession, 
and that Tonga would not introduce any such measu res in the future].  Th e representative of Tonga 
further confirmed that any subs idy programs provided by his Government after accession would be  WT/ACC/SPEC/TON/4/Rev.1 
 Page 25 
 
 
 administered in conformity with the Agreemen t on Subsidies and Countervailing Measures and that 
all necessary information on notifiable programs would be notified to the Committee on Subsidies and 
Countervailing Measures according to Article 25 of the Agreement upon entry into force of Tonga’s 
Protocol of Accession.  The Working Party took note of these commitments.] 
Technical barriers to trade, sanitary and phytosanitary measures  
(a) Standards and certification  
(b) Sanitary and phytosanitary measures  
101. Some Members stated that Tonga would need  to implement fully the WTO Agreement on 
Technical Barriers to Trade as of the date of WTO accession, and requested detailed information on Tonga's standards and inspection regime, includ ing participation in international standards 
organizations such as the Codex Alimentarius Commission or the Organization of International 
Epizootics, procedures for incorporation of interna tional standards into Tonga's standards regime, any 
deficiencies in the present regime, and the steps T onga would be taking to remedy these deficiencies 
prior to WTO accession.  Tonga was reminded that  the WTO TBT Agreement did not require Tonga 
to implement standards in any area, but any sta ndards and conformity assessment systems introduced 
in the future would need to be c onsistent with WTO requirements.   
102. The representative of Tonga said that Tonga had no specific Standardization Act or technical 
regulations in place.  The Public Health Act 1992, which empowered the Minister for Health to make 
regulations in relation to food standards, had so fa r not been used for this purpose.  Thus, Tonga had 
not adopted any technical regulations, standards or conformity assessment procedures to date, and had 
no plans to do so.  The Consumer Protection Act 2000 did refer to the implementation of approved 
standards, including labelling requirements, to protect consumers, but no standards had been 
established.  Foreign goods entering Tonga were acco rdingly not subject to any particular standards-
related procedures or requirements.  As to the est ablishment of a TBT Enquiry Point, the WTO Desk 
at the Ministry of Labour, Commerce and Industries would serve this function. 
103. The representative of Tonga said that the Quaran tine Division of the Ministry of Agriculture 
and Forestry and the Ministry of Health was re sponsible for Tonga's sanitary and phytosanitary 
measures relating to foreign trade in animals, pl ants and related products.  The principal pieces of 
SPS-related legislation were the Plant Quarantine Act (Cap 127) 1988 together with the Amendments 
to that Act and its associated Regulations 1995 a nd Fee Regulations 1997;  the Animal Diseases Act 
(Cap 146) 1978;  and the Public Health Act 1992 an d the Amendments to that Act.  The Quarantine WT/ACC/SPEC/TON/4/Rev.1 
Page 26  
 
 Act Cap. 77, gave the Director of Health powers to  impose quarantine restrictions for the protection of 
public health.  Imports regulations  required a code of conduct for im ports and the release of imported 
goods, including initiation of pest risk analysis or pest risk assessment.  He confirmed that Tonga had 
the capability of doing its own risk assessments.  Tonga 's legislation did not refer specifically to 
scientific evidence, but regulations were, in fact, based on this principle.  Tonga had no measures 
establishing tolerances for the use of  additives or contaminants.   
104. Asked to what extent Tonga's standards aligne d with relevant international standards, the 
representative of Tonga added that Tonga based its  SPS measures on international standards to the 
extent possible.  Tonga was a member of the OIE (International Office for Animal Diseases), the 
International Plant Protection Convention (IPPC) an d the Codex Alimentarius Commission, and also 
received assistance from regional organisations, in particular the Secretariat of the Pacific Plant 
Protection Organisation (PPPO) and, on the animal side, the Secretariat of the Pacific Community.  
The Plant Quarantine Act and its Amendments were a ligned with international standards such as those 
of the FAO (Food Agriculture Organisation) and the IPPC.  The Pacific Plant Protection Organisation operated actively to set standards fitting to Pacific requirements.  Such standards were submitted to 
the member countries (Forum Island Countries incl uding New Zealand and Australia) for funding and 
implementation.  In addition, the PPPO reviewed an d drafted standards regulations of any member.  
The PPPO met every three years and was chaired by  Tonga.  Tonga used FAO and OIE standards as a 
basis for its own standards relating to animals a nd animal products.  Regarding the principle of 
equivalence, Tonga recognized different measures ach ieving the same level of protection, and based 
its regulations in this respect on those of Austra lia and New Zealand.  Importation was only prohibited 
when necessary to protect human, animal or plant life and health.  A list of products prohibited in 
accordance with the Plant Qu arantine Act and in the Animal Diseases Act is reproduced in Table 8.   
105. Some Members requested more detailed informati on and specific legislative references to be 
able to evaluate Tonga’s SPS re gime and its consistenc y with the WTO Agreement on the Application 
of Sanitary and Phytosanitary Measures.  For releva nt legislation or administrative procedures not yet 
in place, Tonga was asked to indicate when these laws  or procedures would be developed.  A Member 
noted that Tonga's regime did not appear to be consistent with the SPS Agreement on the issue of 
transparency.  Tonga would need to have notificatio n procedures in place so that its trading partners 
could be made aware of changes in Tonga's quarantine measures, for example, quarantine 
arrangements against foot and mouth disease.   
106. In reply, the representative of Tonga noted that three new Acts had been passed by the 
Legislative Assembly in 2002, namely the Anim al Diseases Bill (Amendment) Act, the Agricultural  WT/ACC/SPEC/TON/4/Rev.1 
 Page 27 
 
 
 Commodities Export Act, and the Pesticides Act (2002).  FAO and South Pacific Commission 
consultants had assisted in the drafting of this legislation, which should be in conformity with 
international requirements.  Tonga did not yet have legislation making observation of the SPS 
Agreement mandatory.  Such legislation, together  with regulations containing the administrative 
procedures necessary to administer the SPS Agreement,  would come into force as from the date of 
Tonga’s accession to the WTO.  The regulations w ould specify, for instance, the enquiry point, the 
authority responsible for making notifications to  the WTO, the publication to be used for the 
publication of proposed measures, the procedure to  be used for taking comments into account, the 
Government body responsible for de veloping regulations, conducting ri sk assessments and control, as 
well as inspection and approval procedures.   
107. He confirmed that the technical infrastru cture in place required to implement the SPS 
Agreement, including an operational SPS Enquiry Po int.  Tonga was ready to respond to all 
reasonable questions regarding its sanitary and phyt osanitary measures, which should be addressed to 
the Director of Agriculture at the Ministry of Agriculture and Forestry .  The Ministry was seeking 
financial assistance for the development of an SPS information web site, and would welcome any 
funding provided by WTO Members as part of th eir capacity building assistance to developing 
countries.   
108. Concerning quarantine measures against f ood and mouth disease, Tonga had taken 
precautionary measures by not allowing importation of animals or animal product from foot and 
mouth disease infected countries and regions.  Tonga watched high risk vessels coming from infected 
countries, and screened air passengers arriving from infected destinations.  He stressed that 
importation of the items listed in Table 8 was not prohibited per se , but that the pest risk analysis 
system used by Tonga required those applying for import permits to provide technical and biological 
data to the Ministry of Agriculture and Forestry indicating that the species were free of the regulated 
quarantine pest concern or, if an effective treatme nt was available, import permits would be issued 
with additional quarantine requirements.  In respon se to a Member who felt that it would be necessary 
to amend the relevant legislation to clarify the f act that "prohibited" products were actually only 
subject to "restriction", i.e. import permits, the repr esentative of Tonga replied that, in his view, there 
was no need to revise the legislation as several s ections of the Plant Quarantine Act 1998 and Plant 
Quarantine Regulations 1995 provided an explanation of the term "prohibited".  
109. [The representative of Tonga confirmed that  Tonga would neither adopt nor implement 
technical regulations or standards and c onformity assessment procedures until Tonga had 
implemented and notified appropriate  laws in conformity with the provisions of the Agreement on WT/ACC/SPEC/TON/4/Rev.1 
Page 28  
 
 Technical Barriers to Trade.  Tonga would ensure th e full conformity of any such legislation with the 
Agreements on Technical Barriers to Trade and th e Application of Sanitary and Phytosanitary 
Measures.  The Working Party took note of these commitments.]  
Trade-Related Investment Measures (TRIMs)
 
110. The representative of Tonga said that, other than the measures set out in the Industrial 
Development Incentives Act (1978) in relation to  the Development Licence programme, Tonga had 
no specific measures related to investment in trad e-related businesses.  These measures were, in his 
view, not inconsistent with the WTO Agreement on Trade-Related Investment Measures, and Tonga 
therefore did not intend to notify any measures under the Agreement.   
111. Having reviewed the Industrial Development Incen tives Act, some Members considered that 
the Act referred to import substitution, export pe rformance or local content criteria which would 
constitute trade-related investment measures.  It was noted that, even though these provisions did not 
appear to be applied in practice, the possibility to deny or revoke an industry's licence if export 
requirements were not met qualified as a TRIM.  Members sought a commitment that the Industrial 
Development Incentives Act would be amended, and th at the revised Act and associated practices and 
decision-making procedures would be consistent w ith the WTO, including the TRIMs Agreement. 
112. The representative of Tonga replied that th e Industrial Development Incentives (IDI) Act 
aimed at encouraging entrepreneur ship to foster industrial growth and tourism in Tonga.  In his 
opinion, none of the benefits granted under the IDI were contingent, in law or in fact, upon export 
performance, import substitution or local content re quirements.  However, the IDI Act would be 
repealed by the Foreign Investment Act (FIA).  The FIA aimed at regulating foreign investment only 
and would enter into force upon finalization of the re gulations.  In his view, the FIA was consistent 
with trade-related investment measures under the GATT 1994.  
113. [The representative of Tonga said that Tonga w ould not maintain any measures inconsistent 
with the TRIMs Agreement and would apply th e TRIMs Agreement from the date of accession 
without recourse to any transition period.  The Wo rking Party took note of this commitment.]   
State trading entities  
114. Noting that the Government of Tonga had had a stake in 26 enterprises in 1998,, some 
Members requested Tonga to provide informati on on any state trading enterprises operating under 
exclusive or special privileges in relation to impor ts or exports.  Specific questions were raised 
concerning the activities of Tonga Investments Ltd., Frisco, Primary Produce Limited, Royal Beer Co.  WT/ACC/SPEC/TON/4/Rev.1 
 Page 29 
 
 
 Ltd., Leiloa Duty Free Shops (Tonga) Ltd., Sea Star Fishing Co. Ltd, Tonga Timber Ltd., and the 
Government Supplies Department.   
115. The representative of Tonga replied that, in his view, Tonga maintained no State-trading 
enterprises as defined by GATT Article XVII a nd the Understanding on the Interpretation of 
Article XVII of the GATT 1994.  Tonga Investment s Ltd. was a holding company established in 1971 
to manage businesses carried out by its subsidiaries - Frisco Hardware Ltd., Homegas Ltd. and 
Primary Produce Export Ltd.  Frisco sold hardwa re and construction materials - mostly imported 
goods - in competition with private enterprises.  Primary Produce Limited was essentially a shell 
company established to collect debts, and would be wound up as soon as possible.  His Government no longer owned shares in Royal Beer Co. or any ot her manufacturing facility in Tonga.  Leiola Duty 
Free Shops, Sea Star Fishing Co., and Tonga Timber Lt d. competed with privately-owned firms.  The 
Government Supplies Department, which had been purchasing goods for resale, had ceased operations 
on 30 June 1999.   
116. [The representative of Tonga confirmed that Tonga would apply its laws and regulations 
governing the trading activities of State-owned enterp rises and [of State-owned and] other enterprises 
with special or exclusive privileges and would act in full conformity with the provisions of the WTO 
Agreement, in particular Article XVII of the GATT 1994 and the Understanding on that Article and 
Article VIII of the GATS.  Tonga would notify an y enterprise falling within the scope of Article 
XVII.  The Working Party took note of these commitments.]   
Free zones, special economic areas
 
117. The representative of Tonga said that Tonga had no designated free zones or free economic 
zones.   
118. [The representative of Tonga said that any free zones or special economic areas which it 
established would be fully subject to the coverage of  its commitments in its Protocol of Accession to 
the WTO Agreement and that Tonga would ensure en forcement of its WTO obligations in those zones 
or areas.  In addition, goods produced in any such  zones or areas under tax and tariff provisions that 
exempt imports and imported inputs  from tariffs and certain taxes w ould be subject to normal customs 
formalities when entering the rest of Tonga, includ ing the application of tariffs and taxes.  The 
Working Party took note of these commitments.] WT/ACC/SPEC/TON/4/Rev.1 
Page 30  
 
 Government procurement
 
119. The representative of Tonga said that no specifi c procedures applied to goods and services 
purchased within Tonga.  He confirmed that local  suppliers did not benefit from any preferential 
margin in government procurement.  His govern ment had appointed agents in Australia and 
New Zealand to handle procurement of goods and services to be obtained outside Tonga. 
120. Procurement of supplies was organized through public tender, open to all local and overseas 
suppliers.  All bids were evaluated at the closi ng date of the Tender, and the lowest-price bidder 
would be awarded the contract or order.  A speci fic form ("Overseas Requisition") would be prepared 
for winning bids from overseas.  The form was endorsed by Treasury and approved by the Prime Minister before being sent to the Government Agen t in the country concerned.  The Overseas Agent 
would place the order with the supplier, arrange tran sportation, verify specification expedites etc., pay 
the supplier and bill the Government of Tonga.  
121. Asked whether Tonga intended to initiate ne gotiations for accession to the Agreement on 
Government Procurement, the representative of Tonga  noted that this plurilateral agreement had not 
been drawn up with the situation of very small deve loping countries, such as Tonga, in mind.  Few, if 
any, Tongan government contracts would be covere d due to the value thresholds applied under the 
Agreement.  Moreover, large contracts were of ten implemented in the context of economic aid 
programmes, which would be cove red by the procurement rules of the organisations concerned. 
Trade in Civil Aircraft
 
122. A member noted that Tonga exempted ground equipment and technical supplies required for 
use at airports in connection with air services from customs duty, and asked whether Tonga would 
consider binding its customs duties and other revenue charges on civil ai rcraft and parts at zero in its 
Schedule of Concessions and Commitments on Goods.   
123. The representative of Tonga confirmed that ground equipment and technical supplies for use 
at airports in connection with air services were ex empt from customs duties.  He added, however, that 
such goods were not exempt from Port and Services Tax.  In the market access negotiations, Tonga 
had already offered to bind its "Other Duties and Charges" at zero, while the bound rate of duty on 
civil aircraft and parts remained to be determined.    WT/ACC/SPEC/TON/4/Rev.1 
 Page 31 
 
 
 Agricultural policies  
124. The representative of Tonga said that the polic ies of his Government regarding trade in 
agricultural products did not differ significantly from  those applicable to trade in general.  The 
establishment of TongaTrade and the facilities offe red by the Tonga Development Bank were aimed 
at encouraging the development and diversificati on of agricultural and commodity exports.  He 
stressed that Tonga had not introduced any price support or export subsidy measures.  He confirmed 
that expenditures for infrastructural  facilities required for th e facilitation of export were limited to the 
provision or construction of capital works only, and di d not constitute subsidies to inputs or operating 
costs.  The fees paid by exporters for these types of facilities were commensurate to the costs of the 
services rendered.   
125. The policies of his Government were geared  towards diversifying the agricultural sector 
through strengthening and developing infrastructural  and support mechanisms such as the introduction 
of new crop varieties, market development, new quarantine and new me thods of treatment for 
produce, and to provide continuous assistance to farmers.   
126. The representative of Tonga provided informa tion on domestic support and export subsidies 
in agriculture for the period 1996/97 to 1998/99 in document WT/ACC/SPEC/TON/3 and Revision 1.  
He noted that all support recorded during this pe riod qualified as "Green Box" measures exempt from 
the reduction commitment.  His Government provide d a number of general service measures, mainly 
through the Ministry of Agriculture and Forestry, in part financed by donor countries and agencies.  
The figures provided in the supporting tables incl uded external assistance provided through the 
government system.  He confirmed that Tonga w ould not apply export subsidies under the Agreement 
of Agriculture, notwithstanding recourse as appropria te to measures allowed according to Article 9.4 
of the Agreement of Agriculture. 
Trade-Related Intellectual Property Rights (TRIPS)  
1. General  
127. The representative of Tonga provided info rmation on the implementation of the WTO 
Agreement on Trade-Related Aspects of Intell ectual Property Rights (TRIPS) in document 
WT/ACC/TON/6.   WT/ACC/SPEC/TON/4/Rev.1 
Page 32  
 
 Intellectual Property Authorities
 
128. Authorities responsible for policy formulation and implementation included the Intellectual 
Property and Company Registration (IPCR) Office, a ccountable for the implementation of intellectual 
property legislation;  the Hon. Minister of Labour , Commerce and Industries, the Minister responsible 
for the Industrial Property Act 1994, the Copyright Act 2002, the Protection of Geographical Indications Act 2002, the Protection of Layout-Designs  (Topographies) of Integrated Circuits Act 
2001, and the Unfair Competition Act 2002;  and the Supreme Court, responsible for settling 
intellectual property disputes.  All intellectual propert y regulations had to be approved by the Cabinet. 
Intellectual property legislation
 
129. The representative of Tonga said Tonga would am end its intellectual property legislation to 
ensure consistency with WTO intellectual property ru les and obligations.  The main pieces of Tonga's 
current intellectual property regime were the Industrial Property Act 1994, the Protection of 
Geographical Indications Act 2001, the Protection of  Layout-Designs (Topographies) of Integrated 
Circuit Act 2001, the Copyright Act 2002, and the Protection of Unfair Competition Act 2002.  The 
Industrial Property Act had been implemented since 1 February 2000, the Copyright Act was awaiting 
approval by His Majesty, and regulations implem enting the Protection of Geographical Indications 
Act, the Protection of Layout-Designs (Topographies) of Integrated Circuits Act, and the Unfair 
Competition Act were in preparation.  
130. Some Members were concerned that several TRIPS requirements, in particular the most-
favoured nation and national treatment provisions of the TRIPS Agreement, had not been included in 
Tonga's legislation.  The representative of Tonga  acknowledged that Tonga's current intellectual 
property regime did not conform fully to WTO requirements.  Further work would be needed to bring its legislation into conformity w ith WTO rules and obligations.  He accordingly requested that Tonga 
be granted a transitional period permitting Tonga to  complete this process after its accession to the 
WTO.  Technical assistance would be required to help  introduce the necessary legislative changes.     
Participation in international  intellectual property agreements
 
131. The representative of Tonga said that Tonga ha d become member of the World Intellectual 
Property Organisation on 14 June 2001, and had been a party to the Paris Convention for the 
Protection of Industrial Property and the Berne Conv ention for the Protection of Literary and Artistic 
Works as of the same date.  These two conventions were self-executing under Tonga's legal regime.  
His Government was also considering membership  in the Patent Cooperation Treaty, the Madrid  WT/ACC/SPEC/TON/4/Rev.1 
 Page 33 
 
 
 Protocol and Agreements, and the Hague Agreem ent, and was seeking more information on the 
Geneva Phonogram Convention and the WIPO Copyright Treaty. 
2. Substantive standards of protection, includi ng procedures for the acquisition and maintenance 
of intellectual property rights  
(a) Copyright protection  
132. The representative of Tonga said that the Copy right Act of 1985, revi sed in 1987 and 1988, 
had provided some protection to literary and dramat ic works.  However, the Act was not entirely 
compliant with the TRIPS Agreement, and its entr y into force had been delayed due to lack of 
implementing copyright regulations.  The Act requi red revision to provide protection for computer 
programmes as literary works under the Berne Conven tion 1971;  databases by copyright;  rental 
rights for owners of rights in films, sound r ecordings, phonograms and computer programmes;  
protection to broadcasting organizati ons to control the use of the broadcast signals for a minimum of 
20 years;  and to protect performers from una uthorized recording and broadcasting of live 
performances.   
133. He added that Parliament had passed a new law - the Copyright Act 2002 - which would 
repeal the existing copyright legislation.  .This Ac t addressed most of the deficiencies of the existing 
copyright legislation with respect to compliance with WTO requirements.  However, it would need 
some amendment to ensure full conformity with  the requirements of the TRIPS Agreement.   
(b) Trademarks, including service marks  
134. The representative of Tonga said that trademar ks were protected in accordance with the 
Industrial Property Act 1994, Part V and VI.  Prot ection for well known trademarks or service marks  
was provided for in Part V, Section 26 (2) (e) of the Act.  He noted that some  provisions of the TRIPS 
Agreement, notably Articles 15.4 (nature of the go ods and services), 17 (exceptions) and 20 (special 
requirements), had not been included in Tonga's existi ng legislation, [but woul d be covered in the new 
legislation and regulations that would be introduced to ensure full conformity with the requirements 
of the WTO TRIPS Agreement]. 
 (c) Geographical indications, including appellations of origin  
135. The representative of Tonga said that geogra phical indications were protected under the 
Protection of Geographical Indications Act 2001.  Th e Act, was in his view, in full compliance with 
the requirements of the TRIPS Agreement.   WT/ACC/SPEC/TON/4/Rev.1 
Page 34  
 
 (d) Industrial designs
 
136. The representative of Tonga said that industr ial designs, including textile designs, were 
protected under the Industrial Property Act 1994 (Par t IV) and the Intellectual Property Regulations 
1998.  The relevant provisions of the Act and regula tions were, in his view, in full compliance with 
the requirements of the TRIPS Agreement.   
(e) Patents  
137. The representative of Tonga said that the scope of patentability, the rights conferred by a 
patent and the criteria under which non-voluntary licences were granted, were laid down in the 
Industrial Property Act 1994 and in the Industrial Property Regulations  1998.  The Act had been in 
force since 1 February 2000.  The relevant provision s of the Act and regulations were, in his view, in 
compliance with the requirements of the TRIPS Agreement.   
138. The Intellectual Property and Company Regist ration (IPCR) Office acted as Tonga's Patent 
Office.  Patent holders from third countries coul d apply for registration in accordance with the 
Industrial Property Act 1994.  Tonga was not yet a party to the Patent Cooperation Treaty, but was 
considering membership. 
(f) Plant variety protection  
139. The representative of Tonga said that plant vari eties were currently not protected under any 
legislation in Tonga.   
(g) Layout designs of integrated circuits  
140. The representative of Tonga said that layout desi gns of integrated circuits were protected in 
accordance with the Protection of Layout-Designs (T opographies) of Integrated Circuit Act 2001.  
The relevant provisions of the Act and regulations were, in his view, in full compliance with the 
requirements of the TRIPS Agreement.   
(h) Requirements on undisclosed information, including trade secrets and test data  
141. The representative of Tonga said that Tonga had no specific legislation addressing this 
subject-matter.  However, section 3 of the Tonga Ci vil Law Act stipulated that the Court should apply 
the common law of England and the rules of equity  where there was no applicable law in place in 
Tonga.  He added that Tonga would need to pass new legislation to protect against unfair commercial 
use of undisclosed test or other data.  WT/ACC/SPEC/TON/4/Rev.1 
 Page 35 
 
 
 3. Measures to control abuse of intellectual property rights  
142. The representative of Tonga said that measures to  control the abuse of intellectual property 
rights were included in the Industrial Property Ac t 1994 and the Protection of Unfair Competition Act 
2002.  However, Tonga's legislation would need to be  amended to ensure that such measures were in 
line with TRIPS requirements. 
143. His Government had launched a limited scale public awareness programme on intellectual 
property regulations and the IPCR Office was organi zing training for customs officials.  Further 
training would include police forces. 
144. Complaints concerning intellectual property matt ers could be lodged with the IPCR Office.  
Decisions of the IPCR could be appealed to a court. 
4. Enforcement  
145. The representative of Tonga said that Tonga [had enacted new legislation in recent years that 
provided for WTO-consistent rules for the protection of intellectual property in several areas, including the Protection of Geographical Indicati ons Act 2001 and the Protection of Layout Designs 
(Topographies) of Integrated Circuit Act 2001.  The new Copyright Act 2002 would need to be 
amended to ensure full conformity with require ments of the TRIPS Agreement.  Regulations 
implementing this legislation was in development.   He acknowledged that further work would be 
needed in other areas to implement new legislation to bring Tonga's intellectual property regime into 
conformity with the WTO Agreement on TRIPS.  Existing legislation and regulations, covering 
Patents, Industrial Property, Trademarks and servi ces marks would need amendment.  New legislation 
providing for protection of undisclosed information and general enforcement of intellectual property 
protection would also be needed.  These were in development, and would be circulated to the 
Working Party for review prior to the conclusion of the negotiations.  The Government of Tonga 
intended to enact these laws and implement th e relevant additional regulations prior to 
1 January 2005. 
146. He indicated that Tonga] would need tec hnical assistance to complete the necessary 
legislative changes to implement the TRIPS Agreemen t and to ensure that the Agreement's provisions 
were being observed, including the introduction of provisions addressing civil judicial procedures and 
remedies, provisional measures, administrative pr ocedures and remedies, special border measures, 
and criminal procedures, as well as to carry out ad ditional steps to implement and enforce the TRIPS 
Agreement, e.g. the training of personnel and th e development of infrastructure.  [At present key WT/ACC/SPEC/TON/4/Rev.1 
Page 36  
 
 Ministries lacked expertise about the obligati ons created under the TRIPS Agreement.  Tonga 
recognized that cooperation with other Forum Gr oup countries in the area of intellectual property 
protection would be useful, and membership of th e Geneva, Brussels, UPOV  and WIPO Conventions, 
the Patent Cooperation Treaty, and the Madrid Prot ocol would facilitate compliance with the TRIPS 
Agreement.  Tonga intended to accede to these treaties by 1 January 2006. 
147. The representative of Tonga thanked the Worki ng Party for its recognition that technical 
assistance would be required and the governments con cerned for the technical assistance that they had 
already provided.  For the reasons given above, the Government of Tonga requested that the Working 
Party grant a transitional period to 1 January 2007,  approximately three years from the date of its 
accession, to obtain technical assistance and equip th e Government to fully implement the obligations 
of the TRIPS Agreement.  He confirmed that, if su ch a transitional period were granted, Articles 3, 4 
and 5 of the Agreement, providing for, inter alia , national treatment and MFN treatment under current 
legislation in place would apply, and Tonga woul d ensure that any changes made in its laws, 
regulations and practice in this period would not result in a lesser degree of consistency with the 
provisions of the TRIPS Agreement that existed on the date of accession.  In addition, Tonga would 
not grant patents, trademarks, or copyrights, or ma rketing approvals for pharmaceutical or agricultural 
chemicals inconsistent with the pr ovisions of the TRIPS Agreement. 
148. The representative of Tonga also stated that, s hould a transition be granted, existing rates of 
infringement would not in his view increase signi ficantly over this transition period and that any 
infringement of intellectual property rights would be addressed immediately in cooperation and with 
assistance from affected right holders.  Tonga would protect against unfair commercial use of undisclosed test or other data submitted in supp ort of applications for marketing approval of 
pharmaceutical or of agricultural chemical products which utilize new chemical entities, by providing 
that no person other than the pers on that submitted such data may, w ithout the permission of the latter 
person, rely on such data in support of an applica tion for product approval for a period of at least five 
years from the date on which Tonga granted marketing approval to the person that produced the data.  
Prior to issuance of marketing approval of any pharmaceutical and agricultural chemicals products, 
the relevant Ministries in Tonga would determine the existence of a patent covering a product for 
which an application for marketing approval had been  filed by a party other than the patentee, and 
must not approve such application for marketing approval until the date of the expiration of such 
patent.  He added that Tonga would seek out all available technical assistan ce to ensure that its 
capacity to enforce fully its TRIPS-consistent lega l regime upon expiration of the transition period is 
assured.  In response to requests from delegations for more specificity, the representative of Tonga  WT/ACC/SPEC/TON/4/Rev.1 
 Page 37 
 
 
 presented an Action Plan setting out details of the step s that still remained to be taken in order to 
achieve this objective and a timetable for each step (Table 9).]   
[Table 9:  Actions to be taken for conformity with the TRIPS Agreement  
Action Deadline 
Drafting of new legislations, covering: 
- protection of undisclosed information and trade secrets; 
- plant variety protection; 
- general and enforcement obligatio ns under the TRIPS Agreement. No later than 1 July 2004 
Drafting of amendments to existing legislations to address deficiencies vis-
à-vis the WTO Agreement on TRIPS as identified in response to 
WT/ACC/9, specifically: 
- Industrial Property Act 1994; 
- Copyright Act 2002. No later than 1 July 2004 
Circulation of draft legislation addressing remaining deficiencies vis-à-vis 
the WTO TRIPS Agreement in Tonga’s intellectual property rights regime. July 2004 
Parliamentary passage of new legislations and amendments to existing 
legislations. No later than 1 January 2005 
Drafting of implementing regulations fo r Intellectual Property legislations, 
specifically: 
- Copyright Act 2002; 
- Geographical Indications Act 2001; 
- Protection of Layout Designs (Topographies) of Integrated 
Circuits Act 2001; 
- new legislations required, as detailed above. No later than 1 July 2005 
Development of manuals and operating procedures No later than 1 January 2006 
Appointment of staff No later than 1 January 2006 
Training of key IP personnel No later than 1 July 2006 
Training for users (development of information brochure and training 
program) No later than 1 January 2007 
Full implementation of the Agreement on Trade-Related Aspects of 
Intellectual Property Rights. No later than 1 January 2007 
] 
149. [The representative of Tonga confirmed that, if a transitional period were granted, Articles 3, 
4 and 5 of the Agreement, providing for, inter alia, national treatment and MFN treatment under 
current legislation in place would apply, and Tonga would ensure that  any changes made in its laws, 
regulations and practice in this period would not result in a lesser degree of consistency with the 
provisions of the TRIPS Agreement that existed on the date of accession.  In addition, Tonga would 
not grant patents, trademarks, or copyrights, or ma rketing approvals for pharmaceutical or agricultural 
chemicals inconsistent with the provisions of the TRIPS Agreement.  The Working Party took note of 
this commitment.] WT/ACC/SPEC/TON/4/Rev.1 
Page 38  
 
 Policies affecting trade in services
 
150. The representative of Tonga said that services acc ounted for more than 50 per cent of Tonga's 
GDP.  While the Ministry of Labour, Commerce and Industry – which would serve as Tonga's 
services enquiry point - was responsible for formulating polici es related to services sectors, there was 
no comprehensive policy and individual services sector s were regulated independently.  Overall, the 
regulatory structure was very simple.  The Licen sing Act, Cap 47, which covered most services, 
required services providers to hold a licence obtained against payment of an annual fee (detailed 
information on the fee structure was provided in  document WT/ACC/TON/3, pages 29-31).  Tonga's 
legislation contained no specific provisions regula ting monopolies, safeguard measures, international 
payments, or government procurement of services.  A 25 per cent local participation requirement for 
access to foreign service suppliers in retail, constr uction, and tourism services needing no special 
equipment and skills, which had been implemente d for economic development purposes, had been 
abolished.   
151. He added that Tonga applied fully the most-favoured-nation principle to trade in services, 
including in the recognition of professional qualif ications.  He considered Tonga's laws and 
regulations on certification for foreign qualification in compliance with the provisions of the General 
Agreement on Trade in Services (GATS).  Tonga ha d no national qualification standards of its own, 
but applied those of other countries when necessary.  In the case of medical practitioners, the Director 
of Health applied the standards of Australia, Canada, New Zealand, th e United Kingdom, and the 
United States, in accordance with the Medical Regist ration Act, Cap 75.  Requests were dealt with 
case-by-case when recognition of foreign professional qualifications involved countries not explicitly 
mentioned in the relevant legislation.   
152. Legal services were regulated by the 1989 Law Pr actitioners Act.  The Act required any legal 
practitioner to be included in the Roll of Law Practit ioners held by the Supreme Court, to possess a 
practising certificate, and be a member of the T onga Law Society.  Membership in the Tonga Law 
Society required documented professional knowledge and experience in common law jurisdiction, 
minimum three character references, and an expressed intent to practice law in Tonga.  However, the 
legal practitioner did not need to reside in To nga.  Appearance before Tonga's Supreme Court 
required a diploma in law from the University of Sout h Pacific or at least a Bachelor’s degree in law 
from a recognised university.  Foreign lawyers were  subject to the same rules as domestic legal 
practitioners.  The representative of Tonga confir med that foreign legal firms and lawyers were 
allowed to provide consultations  on legislation other than that of their home state.    WT/ACC/SPEC/TON/4/Rev.1 
 Page 39 
 
 
 153. Financial services were regulated by the 1991 Fi nancial Institutions Act and regulations, the 
National Reserve Bank Act, the Tonga Development Bank Act, the Westpac Bank of Tonga Act, the 
Foreign Exchange Control Act and regulations, and the Money Laundering and Proceeds of Crime 
Act.  Licenses were delivered by the Ministry of  Finance based on inquiries by the National Reserve 
Bank of Tonga, which supervised the activities of banks, and approval of the Privy Council.  The annual licence fee amounted to TOP3,000.  Financia l services licenses were not subject to numerical 
or geographical limitations.  In 1998, three commerc ial banks were operating in Tonga in addition to 
the Tonga Development Bank, providing banking services such as deposits, loans, and local and 
international money transfer.  He confirmed that  financial institutions were allowed to provide 
financial information and advisory services.  Tonga allowed the establishment of new foreign 
commercial banks, merchant banks a nd other financial services companies both in the form of wholly-
owned subsidiaries or direct branches.  In additio n, Tonga permitted the establishment of new foreign 
life and non-life insurance companies, insurance brokers and agencies, and insurance underwriting 
and management companies servicing the domestic mark et.  Financial services could also be provided 
by authorized foreign exchange dealers.   
154. Tonga's telecommunications market had been opened up following the adoption of the 
Communications Act 2000.  The Tonga Telecommun ication Company (TTC), a government-owned 
entity, was an integrated provider of networ k infrastructure and comm unications services but 
competed with a second full service provider.  Both  companies provided domestic and international 
calling services, as well at internet services.   
155. Under the 2000 Communication Act, any person or  company wishing to deliver domestic or 
international communication services, including televisi on, radio, internet, and mobile phone services, 
could apply for a licence.  Licenses were delivered by the Privy Council under conditions set out by 
the Council, including (i) the approval by the Tonga Telecommunication Commission of the technical 
operating details of the service, (ii) sufficient funds to establish and maintain such a service, and (iii) 
payment of an annual licence fee (TOP5,000 in 2000) .  In addition, with a view to monitoring 
developments in the telecommunication sector and en suring fair competition, approval by the Cabinet 
was also required.  A licence was granted for five years and could be renewed every two years 
thereafter.  The transfer of a licence was subject to the approval of the Privy Council.  Licenses could 
be revoked in case of non-payment of the licence f ee, and lapsed after 12 months of non-use.  The 
licence holder was expected to exercise "self-censo rship" in respect of cultural sensitivities.   
156. As to accountancy services, licenses were delivered by the Ministry of Labour, Commerce 
and Industry.  Approval from the Tonga Society of Accountants was not needed, and no market WT/ACC/SPEC/TON/4/Rev.1 
Page 40  
 
 access restrictions were imposed on foreign accountan ts and foreign accounting firms to practice in 
Tonga.  Education services had been opened to fore ign providers, and several  religious institutions 
had established secondary schools.  Other academic in stitutions, such as the University of the South 
Pacific Extension Centre, provided degree-level courses.   
157. Specific regulations applied to shipping a nd electricity-related services.  Shipping licenses 
had to be endorsed by the Ministry of Marine and Ports, and the Tonga Electric Power Boards verified 
qualifications and services to be provided before i ssuing licenses for electricity-related services.  The 
representative of Tonga confirmed that no specific requirements applied to practice engineering, 
computing and architectural services in Tonga,  except possession of a licence delivered by the 
Ministry of Labour, Commerce and Industry.   
[to be completed] 
Transparency
 
Publication of information on trade  
158. The representative of Tonga said that the Govern ment Printing Department published all laws 
and regulations affecting trade, wh ich were sold to the public at affordable prices.  Information on 
laws and regulations was also available free of charge from the WTO Section at the Ministry of 
Labour, Commerce and Industries.   
159. The representative of Tonga confirmed that, from the date of accession, all laws, regulations, 
rulings, decrees or other measures related to trad e in goods or services would be published in the 
Official Gazette, and that no law, rule, etc., re lated to trade in goods and services would become 
effective prior to such publication.  He further st ated that Tonga would fully implement Article X of 
the GATT 1994, and Article III of the GATS and the other transparency requirements of WTO Agreements requiring notification and publica tion. The Working Party took note of these 
commitments. 
Notifications
 
160. The representative of Tonga said that at the la test upon entry into force of the Protocol of 
Accession, Tonga would submit all initial notifica tions required by any Agreement constituting part 
of the WTO Agreement.  [As new legislation im plementing the provisions of WTO Agreements was 
enacted, revised notifications would be provided.]  Any regulations subsequently enacted by Tonga 
which gave effect to the laws enacted to impl ement any Agreement constituting part of the WTO  WT/ACC/SPEC/TON/4/Rev.1 
 Page 41 
 
 
 Agreement would also conform to the requirements of that Agreement.  The Working Party took note 
of these commitments. 
Trade agreements  
161. The representative of Tonga said that Tonga w as a member of the South Pacific Forum, a 
political grouping of independent and self-governing States in the South Pacific.  The South Pacific Forum had been established in 1971 to develop a co llective response to regional issues.  Tonga was 
also a party to the South Pacific Regiona l Trade and Economic Co-operation Agreement 
(SPARTECA), signed in July 1980.  The SPARTECA Agreement was a preferential non-reciprocal trade agreement whereby Australia and New Ze aland extended duty free and unrestricted or 
concessional access for virtually all products origin ating in the Forum Island members, i.e. Cook 
Islands, the Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Papua New 
Guinea, Solomon Islands, Tonga, Tuvalu, Vanuatu and Western Samoa.  The Agreement included 
provisions for general economic, commercial and technical co-ope ration and safeguard provisions 
against product dumping.  He confirmed that To nga did not provide any duty-free or concessional 
access to products originating in Australia and New Zealand under this Agreement.   
162. He added that Tonga granted preferences to members of the Pacific Island Countries Trade 
Agreement (PICTA), ratified by Tonga in 2001.  The PICTA provided for progressive phasing out of 
tariffs between Forum Island countries by 2010, as pa rt of the establishment of a Pacific regional free 
trade area in goods.  The first tariff cut took place upon entry into force of the Agreement in April 
2003.  Tonga also participated in the Pacific Agreement on Closer Econom ic Relations (PACER), 
which had entered in to force on 3 October 2002.  Members of the PACER included Pacific Forum 
Island Countries, Australia, and New Zealand.  Although the PACER was not a free trade agreement, 
it set a timetable for regional free trade ne gotiations with Australia and New Zealand. 
163. Tonga and Fiji had signed a bilateral trade agr eement in 1995, aimed at facilitating the free 
flow of agricultural products.  The Agreement wa s non-reciprocal, having been formulated shortly 
after a bilateral quarantine protocol had been estab lished for 20 agricultural items imported into Fiji 
from Tonga.  A joint committee met bi-annually to discuss matters of mutual trade interest.   
164. He added that Tonga had participated in th e Regional Long-Term Sugar Agreement, running 
from 1995-1998.  Under this Agreement, Fiji had s upplied agreed quantities of sugar to Kiribati, 
Solomon Islands, Tonga, Tuvalu and Western Samoa at pre-determined prices.  The Agreement had 
been administered by the Forum S ecretariat, located in Suva (Fiji) .  Tonga's entitlement had been 
allocated among private firms based on their requests without any form of price subsidy.   WT/ACC/SPEC/TON/4/Rev.1 
Page 42  
 
 165. Tonga had also signed and ratified the Co tonou Agreement between the European 
Communities (EC) and 70 countries in Africa, the Ca ribbean and the Pacific (ACP), whereby the EC 
extended non-reciprocal trade preferences to the AC P States.  Preliminary negotiations with the EU 
on the establishment of an economic pa rtnership agreement had commenced.  
166. The representative of Tonga stated that his G overnment would observe the provisions of the 
WTO, including Article XXIV of the GATT 1994 and Article V of the GATS in its trade agreements.  
The Working Party took note of this commitment. 
Conclusions
 
167. The Working Party took note of the explanati ons and statements of Tonga concerning its 
foreign trade regime, as reflected in this Report.  The Working Party took note of the commitments 
given by Tonga in relation to certain specific matters  which are reproduced in paragraphs [30, 35, 39, 
42, 50, 53, 56, 62, 70, 76, 80, 82, 84, 88, 91, 100, 109, 113, 116, 118, 149, 159, 160, and 166] of this 
Report.  The Working Party took note that these co mmitments had been incorporated in paragraph 2 
of the Protocol of Accession of Tonga to the WTO. 
168. Having carried out the examination of the forei gn trade regime of Tonga and in the light of 
the explanations, commitments and concessions ma de by the representative of Tonga, the Working 
Party reached the conclusion that Tonga be invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Article  XII.  For this purpose, the Working Party has 
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this Report, and 
takes note of Tonga's Schedule of Concessions and Commitments on Goods (document 
WT/ACC/TON/../Add.1) and its Schedule of Sp ecific Commitments on Services (document 
WT/ACC/TON/../Add.2) that are annexed to the draft Protocol.  It is proposed that these texts be 
adopted by the General Council when it adopts th e Report.  When the Decision is adopted, the 
Protocol of Accession would be open for acceptance by Tonga which would become a Member thirty 
days after it accepts the said Protocol.  The Working Party agreed, therefore, that it had completed its 
work concerning the negotiations for the acce ssion of Tonga to the Marrakesh Agreement 
Establishing the WTO.    WT/ACC/SPEC/TON/4/Rev.1 
 Page 43 
 
 
 ATTACHMENTS 
Table 1:  Enterprises with government ownership in mid-2002  
Organization Activity / Market Position Number of 
Shares 
1999/2000 Percentage of 
Government 
Ownership 
Air Pacific Limited Fiji's nationa l airline;  provides regional 
airline services;  comp etes with the other 
market suppliers. 70,400 <5 
Westpac Bank of Tonga Commercial bank;  competes with 3 other 
banks in Tonga. 120,000 4 
Export Produce 
Treatment Services Ltd. Manages the hot air treatment plant at the 
airport. 40,000 20 
Hawaiian Air Hawaii's national airline. 208 <5 
International Dateline 
Hotel Holds 49% of the shares of the company 
that owns Tonga's biggest hotel;  competes with other accommodation facilities in 
Tonga. 5,999,999 
 99 
Leiola Duty Free Operates Tonga's duty free shops;  has a 
monopoly position;  likely to be privatised in 2003-2004. 600,000 60 
Pacific Forum Line 
Limited Regional shipping company based in Fiji;  
provides regional freight and charter 
services. 1,271,956 
 Approx. 5 
Royal Tongan Airlines Tonga's national airline;  competes with 
Air New Zealand, Polynesian Airlines and Air Pacific (other main airlines that 
service similar routes). 12,000,000 
 99 
Sea Star Fishing Co. Ltd Deep sea fishing company;  competes with 
many other firms;  Tonga's Government is considering divesting itself from this 
company. 42,000 
 70 
Shipping Corporation of 
Polynesia Ltd Provides domestic and international  
passenger and cargo charter services;  
many domestic competitors in this market. 10,000 100 
Tonga Development 
Bank Provides development and business 
advisory banking services. 1,400,000 100 
Tonga Investment Ltd Holding/investment company set up in 
1991 to manage the activities of its 
subsidiaries (Frisco, Home Gas, and Primary Produce Limited);  likely to be 
privatised in 2003-2004. 
 Frisco:  Hardware and building materials 
supplier;  mainly sells imported products;  
no exclusive or special rights or privileges;  competes with other private firms. 
 
Home Gas:  Sole distributor of cooking and heating gas in Tonga;  no exclusive or 
special rights or privileges. 
 Primary Produce Ltd. :  No longer in 
operation;  should be wound up. 100 99 WT/ACC/SPEC/TON/4/Rev.1 
Page 44  
 
 Organization Activity / Market Position Number of 
Shares 
1999/2000 Percentage of 
Government 
Ownership 
Tonga 
Telecommunications 
International Ltd Provides both local and international 
telecommunications services;  competes 
with private enterprises;   no special rights 
or privileges. 6,712,466 100 
Tonga Timber Limited Coconut/timber milling and hardware 
supplier;  competes with other suppliers;  
no exclusive or special rights or privileges. 1,889,999 99 
Tonga Corporation Manages Tonga's landholdings in 
America, Samoa and Hawaii. 250,000 100 
  WT/ACC/SPEC/TON/4/Rev.1 
 Page 45 
 
 
 Table 2:  Products subject to price control  
Tariff Line Item Commodity 
11.02 Flour 
1701.0000 Sugar 
0405.0000 Butter 
15.17 Margarine 
0402.1000 Baby Milk 
0902.0000 Tea 
1006.0000 Rice 
0901.0000 Coffee 
1801.0000 Cocoa 
15.01 – 1516.0000 Edible Oils of all types 
15.01 Cheese and Dripping 
2501.0000 Salt 
19.01 Infant Food Preparations 
2710.0020 White Benzene 
2710.0070 All Lubricant Oils 
3808.1000 Insecticides 
3808.3000 Herbicides 
3808.2000 Fungicides 
3101.0000 – 3105.0000 All chemicals and fertilisers for agricultural use 
27.10 Liquid petroleum products  
2710.0010 Motor Spirit 
2710.0040 Kerosene 
not available Diesel 
1905.1010 Bread of standard size 
 WT/ACC/SPEC/TON/4/Rev.1 
Page 46  
 
 Table 3:  Quarantine fees levied on exports of agricultural goods
 
FUMIGATION 
Small Chamber  (1.1 m3) $10.00 
All other fumigation chambers including sheet fumigation. $7.75 per m3 or part thereof 
(maximum of $130.00 per container and/or 
chamber). 
HEAT STERILISATION 
Sterilisation of goods by heat in an oven $7.75 per 0.2m3 or part thereof 
(maximum of $130.00 per container and /or chamber) 
WASTE DISPOSAL 
Disposal/incineration of quarantineable material e.g. war ships  $0.40 per hour or part thereof. 
STEAM CLEANING 
Per consignment $15.00 per hour or part thereof. 
COLD STORAGE 
Cool room/refrigerator $0.02 per kg per 24 hours or part thereof 
Freezer $0.04 per kg for the first 24 hours and 
$0.02 per kg per 24 hours or part thereof, thereafter. 
INSPECTION AND CLEARANCE: 
EXAMINATION FOR IMPORT OR EXPORT 
Documentation (Certificates and permits) $4.00 
Examination of a container system unit $2.00 
Examination of motor vehicle $4.00 
Examination of goods at airports for issuing of a 
Phytosanitary Certificate (Max. 15 mins) $2.00 
Examination of goods, other than at an airport for the 
issuing of a Phytosanitary Certificate (Max. 30 mins) $4.00 
AIRCRAFT CLEARANCE 
Light Aircraft $50.00 
Narrow-bodied aircraft (untreated) $80.00 
Narrow-bodied aircraft  (treated) $50.00 
Wide-bodied aircraft (untreated) $120.00 
Wide-bodied aircraft (treated) $60.00 
SHIP CLEARANCE 
Vessel of more than 25 metres in length $50.00 
Vessel of 25 metres or less in length $20.00 
POST-ENTRY QUARANTINE 
Bench space per month (per 0.5 m3 or part thereof) $7.75 
Potting Material, chemicals and other related expenses At cost 
OVERTIME 
For aircraft and passenger cl earance at Airports;   
       Weekdays $4.00 per hour 
       Weekends & Public Holidays $5.00 per hour 
Other than aircraft and passenger clearance at Airports $2.00 per hour 
MISCELLANEOUS FEES 
Hire of forklift and driver $25.00 per hour 
Any other activity not specified in these Regulations $4.00 per officer per half hour  
or part thereof including travelling time 
Note :  All fees are  stated in Tongan Pa’anga.  
Source:  Adapted from Tonga Government’s Gazette Supplement Extraordinary, No.7, 24 Friday 1997, “The 
Plant Quarantine Fees Regulation 1997”.   WT/ACC/SPEC/TON/4/Rev.1 
 Page 47 
 
 
 Table 4(a):  Goods prohibited to import into Tonga  
1.  Counterfeit coin, currency notes or stamps. 
2.  Indecent articles (obscene books, paintings, drawings, cards, lithographic or other engravings, 
photographs, prints, films or other indecent products  or articles except for pr ivate purposes) [Schedule 
II, Part 1 (Section 35) PROHIBITED AND RESTRICTED IMPORTS] 
3.  Goods bearing the royal Arms of the Kingdom of Tonga, unless importers holds his Majesty's 
authority. 
4.  Goods bearing any trade name or trade mark being or claiming to be the name or trade mark registered 
under the Registration of United Kingdom Trade Mark Act. 
5.  Fireworks, unless given permission by Minister of Police. 
6.  All books and any written or printed matter, soun ds and visual recordings of which import is 
prohibited by copyright law. 
7.  All books and any written or printed matter and sound and visual recordings which advocate violence, 
lawlessness or disorder. 
8.  All toxic or hazardous wastes. 
9.  Goods the importation of which is prohibited by any other law in force in the Kingdom. 
10.  Goods the importation of which is restricted by any other law in force in the Kingdom except in 
accordance with such law.  WT/ACC/SPEC/TON/4/Rev.1 
Page 48  
 
 Table 4(b):  Goods requiring a special import licence
 
HS Number Description Permission required & Ministry involved Application 
Fee 
93.03 Firearms and ammunition  licence issu ed by the Minister of Police $10.00 
3602.000 Explosives of all kinds including 
fuses and detonators  licence issued by the Mi nister of Police Nil 
9304.0000 Noxious, stupefying or tear gas in 
any form and all weapons and instruments or appliances for firing 
or using such gas containers or 
cartridges for such weapons or other 
instruments or appliances  written permission of the Minister of Police Nil 
2208.3010 Brandy and whisky  certified to the satisfaction of the Collector 
of Customs that it has been matured in 
wood for three years* Nil  
2208.4010 Rum  certified to the satisfaction of the Collector 
of Customs that it has been matured in 
wood for two years* Nil  
87.04 
87.11 Motor vehicles, motor cycles and 
motor scooters  licence issued by the Minister of Finance 
and the Minister of Police (for public safety 
purposes and records keeping)   Nil 
87.04 Left hand drive motor vehicles  licen ce issued by the Minister of Police (for 
public safety purposes and records keeping)  Nil 
4007.0010 Eggs  licence issued by the Minister of Finance* Nil  
1905.9010 Cabin and ships biscuits  licence issued by the Minister of Finance * Nil 
 Goods the importation of which is 
restricted by any other law in force in 
the Kingdom except in accordance 
with such law.   
 *  Tonga is prepared to remove its licensing requirements for eggs, cabin and ships biscuits, brandy and 
whisky, and rum as at the date of its accession to the WTO.  WT/ACC/SPEC/TON/4/Rev.1 
 Page 49 
 
 
 Table 5:  Import licence fees levied on a consignment basis  
Nature of import Fee 
Importer of meat, fish or poultry 10.00 
Importer of eggs 10.00 
Importer of salted meat 10.00 
Importer of canned meat 10.00 
Importer of butter 10.00 
Importer of sugar, flour, salt, milk powder or rice 10.00 
Importer of tea, coffee, milo, etc. 10.00 
Importer of other grocery goods 10.00 
Importer of motor vehicles (right-drive) (per vehicle) 15.00 
Importer of motor cycl e (per cycle) 5.00 
Importer of motor vehicles (left-drive) (per vehicle) 15.00 
Importer of beer or ale 10.00 
Importer of spirituous liquor 30.00 
Importer of cigarette s and tobacco 30.00 
Importer of soap, soap powder, detergents, etc. 30.00 
Importer of timber as building material 10.00 
Importer of other building materials 10.00 
Importer of light machinery and equipment (per unit/set) 20.00 
Importer of heavy machinery and equipment (per unit/set) 50.00 
Importer of chemicals, compounds and mixtures 10.00 
Importer of other dry products or items 10.00 
Importer of other products in liquid form 10.00 
Importer of fertilisers 10.00 
Importer of fungicides, insecticides or pesticides 10.00 
Importer of petroleum products including lubricants 20.00 
Importer of liquid paraffin gas 20.00 
Importer of  hardware goods 10.00 
Importer of computers, radios, televisions, electrical goods 10.00 
Importer of other electrical or  electronic components 10.00 
Importer of vehicle and machinery parts 10.00 
Importer of goods for privates sell 20.00 
Importer of other goods * 5.00 
* No licence is required for consignments under 200 kilograms (by ship) or 60 kilograms (by air). WT/ACC/SPEC/TON/4/Rev.1 
Page 50  
 
 Table 7:  Export licence fees
 
Category of exporter Fee per consignment (T$) 
Exporter of frozen fish 20.00 
Exporter of  shellfish 10.00 
Exporter of live fish and molluscs 30.00 
Exporter of marine products for medical purposes 20.00 
Exporter of corals, shells, etc. 20.00 
Exporter of beche-de-mer 20.00 
Exporter of other marine products 20.00 
Exporter of meat and poultry 10.00 
Exporter of live birds 50.00 
Exporter of vanilla 10.00 
Exporter of bananas 10.00 
Exporter of coconuts products 10.00 
Exporter of  drinking coconut 10.00 
Exporter of squash 20.00 
Exporter of swamp taro 10.00 
Exporter of watermelon 10.00 
Exporter of vegetable produce 10.00 
Exporter of giant taro 10.00 
Exporter of ginger 10.00 
Exporter of coffee or cocoa 10.00 
Exporter of coffee or cocoa beans or cultivars 10.00 
Exporter of other agricultural produce 10.00 
Exporter of manufactured goods 10.00 
Exporter of processed goods 10.00 
Exporter of other produce and commodities 10.00 
Exporter of handicrafts 10.00 
Exporter of other goods 10.00 
* Licences are required only for cons ignments exceeding 200 k ilograms by ship and 60 kilograms by air.  WT/ACC/SPEC/TON/4/Rev.1 
 Page 51 
 
 
 Table 8:  Import prohibitions relating to animals, plants and related products  
Plant 
Name Plants, including living plants and products of plants, 
prohibited 
Banana, Abaca, other Musaceae Heliconi aceae Plants, corns and cut flowers 
All Beans of the species Ph aseolus All except seed 
Cassava (Manihol esculenta Grantz) All except tissue cultures 
Citrus All except fruit and seeds. Fruit from areas where 
citrus canker (Xanthomonas 
Campestris p.v. citri, (Has ee) Dye) Occurs.  All of 
Murraya spp. 
All palms including coconut All except seednuts and pollen from areas approved by 
the Minister 
Cacao and host plants of Cacao swollen shoot All except seed from Asia Pacific Region 
Coffe (Coffea spp.) All propag ating material except seed 
Maize (Zea mays L) All except seed 
Peanut (Arachis hypogaea L) All except seed 
Potato (Solanum tuberosum L) All except  tubers, true seed and tissue cultures 
Sorghum (Sorghum spp) All except seed 
Rubber (Hevea spp) All 
Taro and edible aroids (Alo casia spp, Colocasia spp, 
Xanthosoma spp nd Cyrtosperma spp) All except propagating ma terial, seed and tissue 
cultures 
Tomato  (Lycopersicon esculenum Miller) All except fruit and seed 
Orchidaceae All except tissue cultu res and seedlings in Sterile 
flasks. 
Animal 
Prohibition on importation or liberation of 
certain 
animals 7.  (1)   No person shall import or introduce into the Kingdom without prior approval of His 
Majesty’s Cabinet any animal or carcass of the species listed below:- 
  (a) any snake of any species whatever; 
  (b) any venomous reptile, or any living stage of any venomous amphibian, 
venomous fish or venomous invertebrate; 
  (c) any monkey of any species;  
  (d) any member of the squirrel species; 
  (e) any red fox or silver fox;   (f) any musquash (or muskrat); 
  (g) any hamster; 
  (h) any mongoose;   (i) any coypu (or nutria); 
  (j) any mink; 
  (k) any rabbit;   (l) any hare; 
  (m) any deer 
  (n) any opossum; 
  (o) any other animal that is likely to  become a nuisance or to cause injury or 
damage. 
 (2) No person shall without prior approval of Cabinet import or introduce into the 
Kingdom the egg, semen or carcass of any an imal specified in subsection (1) of this 
section. 
Source :  The Plant Quarantine Act and the Animal Diseases Act, Second Schedule, Regulation 31. WT/ACC/SPEC/TON/4/Rev.1 
Page 52  
 
 ANNEX 1 
Laws, Regulations and Other Information Provided to the Working Party by Tonga
 
- Industrial Development Incentive Act 1978 (Cap. 48) and Amendments 1990, 1992; 
- Act No. 11 of 4 October 1982 To Amend th e Industrial Development Incentives Act 1978; 
- Foreign Investment Act 2001; 
- Foreign Investment Act 2002; 
- Act No. 3 of 8 September 1947 (as amended, 1950, 1956 and 1984) To Make Provision For 
Controlling the Prices of Goods and Services and Wage Rates; 
- Protection Against Unfair Competition Act, 2001; 
- Chapter 27 of the Companies Act of 1988; 
- The Registration of Business Names Bill 1995 - A rrangement of Sections and Registration of 
Business Names Act, 2001; 
- Act No. 20 of 2 November 1993 To Amend the Licences Act; 
- Licence (Amendment) Act 1995 (Cap. 47); 
- Drafting Guidelines for Amendments to the Licences Act Cap. 47; 
- Application for Licence to Import Goods; 
- Act No. 29 of 16 October 1987 To Amend the Intoxicating Liquor Act; 
- Customs and Excise Act 1998 (Cap. 67) and Amendments; 
- Customs and Excise Act (1983) Part I:  Imports – Classification and Tariff; 
- Act No. 3 of 24 June 1992 to Amend the Customs Duty and Excise Act (Cap. 67); 
- Act No. 6 of 6 July 1927 (as amended, 1950, 1963, 1964, 1974, 1997 and 1988) To Impose 
Stamp Duties; 
- Port and Service Tax Act 1988 (Cap. 71); 
- Act No. 22 of 23 October 1990 To Am end the Port and Service Tax Act; 
- Act No. 11 of 1 September 1981 To Amend the Wharves Act; 
- Wharves Act 1992 (Cap. 138) and Amendments 1997, 1998; 
- List of Products subject to Wharfage Tax (conf erred by Sections 5 and 16 of the Wharves Act 
1992 (Cap. 138); 
- Schedule of Duty Free and Ports & Services Tax Free Goods; 
- Acts Nos. 6 of 3 November 1964 and 3 of 1985 To Impose a Tax Upon Fuel Imported into 
the Kingdom and Sold by the Importer; 
- Act No. 3 of 1 July 1986 To Impose a Tax Upon Retail Sales of All Goods and Services in the 
Kingdom of Tonga; 
- Information on Implementation and Administra tion of the Customs Valuation Agreement; 
- Agricultural Commodities Export Act of 2001, Section 4 – The Agricultural Commodities 
Export (General) Regulations 2001; 
- Draft Bill for an Agricultural Commodities Export Act; 
- Public Health Act 1992 and Amendments; 
- Animal Diseases Act of 1978, Section 13 – The Animals (Importation) Regulations 2001; 
- Animal Diseases Act 1988 (Cap 146); 
- Draft Bill for an Act to Amend the Animal Diseases Act 1978; 
- Pesticides Act of 2001, Section 22 – The Pesticides Regulations; 
- Pesticides – information and application form s for licenses, registration and user permits; 
- Draft Bill for a Pesticides Act; 
- Act No. 18 of 15 April 1928 (as amended, 1986 and 1988) Relating to Quarantine; 
- Plant Quarantine Act (Cap. 127) 1988; 
- Information on State Trading; 
- Act No. 10 of 30 September 1987 to Amend the Copyright Act of 1985; 
- Copyright Act 1988 (Cap. 121) and Amendments; 
- Draft Law on Copyright and Related Rights;  WT/ACC/SPEC/TON/4/Rev.1 
 Page 53 
 
 
 - Copyright Act 2001; 
- Copyright Act 2002;  
- Industrial Property Act 1994 (Cap. 19); 
- Industrial Property Regulation 1998; 
- Act No. 19 of 9 November 1994 To Provide For the Registration and Protection of Patents, 
Utility Model Certificates, Industr ial Designs and Trade Marks; 
- Protection of Geographical Indications Act 2001; 
- Protection of Layout Designs (Topographies) of Integrated Circuit Act 2001; 
- Act No. 21 of 18 October 1989 To Provide Fo r Law Practitioners;  For Their Professional 
Conduct and Discipline;  For The Establishment of the Tonga Law Society and For 
Connected Purposes; 
- Act No. 16 of 15 August 1991 To Require Th e Registration Before Practice of Medical, 
Dental, Nursing, Midwifery and Other Health Professions in Tonga; 
- Act No. 13 of 7 August 1984 To Amend the Tonga Telecommunications Act, 1983; 
- Act No. 15 of 21 September 1989 To Regulate Broadcasting and Matters Related Thereto; 
- Act No. 22 of 30 October 1991 To Regulate th e Licensing and Supervision of Financial 
Institutions in Tonga and For Purposes Connected Therewith; 
- Act No. 15 of 15 August 1991 To Provide For a Comprehensive Health Service For Tonga; 
- Act No. 29 of 2 November 1992 To Deal with Public Health Services in Tonga; 
- Act No. 9 of 24 October 1949 (as amended, 1950, 1951, 1956, 1957, 1960, 1962, 1974, 1975, 
1981, 1983 and 1988) To Provide For the Estab lishment of the Tonga Electric Power Board 
For the Production, Control and Distribution of Electric Power Throughout the Kingdom and 
For Related Purposes; 
- Water Board Act (Section 28) Water Suppl y (Amendment) Regulations 1992 (Tonga 
Government Gazette Supplement Extrao rdinary No. 5 of 5 June 1992;   
- Act No. 19 of 5 July 1977 (as amended, 19 79, 1980 and 1990) To Control and Regulate 
Tourism by the Establishment of an Advisory Board and by the Introduction of a System of 
Licensing of Tourist Facilities and Matters Relative Thereto;  and 
- Act No. 16 of 31 March 1970 To Make Better Provision For the Control of Immigration. 
 
_______________ 
  WT/ACC/SPEC/TON/4/Rev.1 
Page 54  
 
 [Draft Decision 
ACCESSION OF THE KINGDOM OF TONGA 
Decision of […] 
 The General Council,  Having regard to  paragraph 2 of Article XII and paragr aph 1 of Article IX of the Marrakesh 
Agreement Establishing the World Trade Organizati on (the "WTO Agreement"), and the Decision-
Making Procedures under Articles IX and XII of th e Marrakesh Agreement Establishing the World 
Trade Organization agreed by the General Council (WT/L/93); 
 Conducting  the functions of the Ministerial Confer ence in the interval between meetings 
pursuant to paragraph 2 of Article IV of the WTO Agreement; 
 Taking note  of the application of the Kingdom of Tonga for accession to the Marrakesh 
Agreement Establishing the World Trad e Organization dated 9 December 1994; 
 Noting  the results of the negotiations directed toward the establishment of the terms of 
accession of the Kingdom of Tonga to the WTO Agreement and having prepared a Draft Protocol on 
the Accession of the Kingdom of Tonga; 
 Decides  as follows: 
 The Kingdom of Tonga may accede to the WTO Agreement on the terms and conditions set 
out in the Draft Protocol annexed to this Decision. 
_______________  WT/ACC/SPEC/TON/4/Rev.1 
 Page 55 
 
 
 DRAFT PROTOCOL 
ON THE ACCESSION OF THE KINGDOM OF TONGA 
Preamble  
 The World Trade Organization (hereinafter referred to as the "WTO "), pursuant to Article XII 
of the Marrakesh Agreement Establishing the World Trade Organization (hereinafter referred to as the "WTO Agreement "), and the Kingdom of Tonga,  
 Taking note of the Report of the Working Party on the Accession of the Kingdom of Tonga to 
the WTO Agreement reproduced in document WT/ACC/TON/[…], dated […] (hereinafter referred to as the "Working Party Report"), 
 Having regard to the results of  the negotiations on the accession of the Kingdom of Tonga to the 
WTO Agreement,  
 Agree as follows: 
PART I -  GENERAL 
1. Upon entry into force of this Protocol pursua nt to paragraph 8, the Kingdom of Tonga accedes 
to the WTO Agreement pursuant to  Article XII of that Agreement and thereby becomes a Member of 
the WTO.  
2. The WTO Agreement to which the Kingdom of Tonga accedes shall be the WTO Agreement, 
including the Explanatory Notes to that Agreement, as  rectified, amended or ot herwise modified by such 
legal instruments as may have entered into force before the date of entry into force of this Protocol.  This 
Protocol, which shall include the commitments referr ed to in paragraph [167] of the Working Party 
Report, shall be an integral part of the WTO Agreement. 
3. Except as otherwise provided for in para graph [167] of the Working Party Report, those 
obligations in the Multilateral Trade Agreements annexed to the WTO Agreement that are to be 
implemented over a period of time starting with the entry into force of that Agreement shall be 
implemented by the Kingdom of Tonga as if it had accepted that Agreement on the date of its entry into force. 
4. The Kingdom of Tonga may maintain a measure in consistent with paragr aph 1 of Article II of 
the GATS provided that such a measure was recorded in  the list of Article II Exemptions annexed to this 
Protocol and meets the conditions of the A nnex to the GATS on Article II Exemptions. 
PART II - SCHEDULES 
5. The Schedules reproduced in Annex I to th is Protocol shall become the Schedule of 
Concessions and Commitm ents annexed to the General Agr eement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Co mmitments annexed to the 
General Agreement on Trade in Services (hereinafter referred to as "GATS") relating to the Kingdom of 
Tonga.  The staging of the concessi ons and commitments listed in th e Schedules shall be implemented 
as specified in the relevant pa rts of the respective Schedules. WT/ACC/SPEC/TON/4/Rev.1 
Page 56  
 
 6. For the purpose of the reference in paragraph 6(a)  of Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Conc essions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
PART III - FINAL PROVISIONS 
7. This Protocol shall be open for acceptance, by  signature or otherwise, by the Kingdom of Tonga 
until […]. 
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall 
have been accepted by the Kingdom of Tonga.  
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-General 
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance by 
the Kingdom of Tonga thereto pursuant to paragrap h 9 to each Member of the WTO and to the 
Kingdom of Tonga.   
 This Protocol shall be registered in accordance with the provisions of Ar ticle 102 of the Charter 
of the United Nations.   
 Done at […] this […] day of […] in a single c opy in the English, French and Spanish languages, 
each text being authentic, except that a Schedule anne xed hereto may specify that it its authentic in only 
one of these languages. 
_______________  WT/ACC/SPEC/TON/4/Rev.1 
 Page 57 
 
 
 ANNEX I 
SCHEDULE […] – KINGDOM OF TONGA 
Authentic only in the … language. 
(Circulated in document WT/ACC/TON/…/Add.1) 
_______________ 
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES 
LIST OF ARTICLE II EXEMPTIONS 
Authentic only in the … language. 
(Circulated in document WT/ACC/TON/…/Add.2) ] 
__________