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Trade Policy Review Body    
 
* In Original language only/ En langue originale seulement /En el idioma original solamente . 
  
TONGA 
DRAFT MINUTES  OF THE MEETING* HELD ON 14 AND 16 APRIL 2021  
Delegations are invited to submit factual corrections, if any, on their own statement to the 
Secretariat ( Mrs Barbara Blanquart: barbara.blanquart@wto.org , or to  tprd@wto.org ) no later 
than 21 May 2021 . 
 
Organe d'examen des politiques commerciales  
 
TONGA 
PROJET DE COMPTE RENDU DE LA RÉUNION* TENUE LES 14 ET 16 AVRIL 2021  
Les délégations sont invitées à soumettre  leurs éventuelles corrections factuelles concernant leurs 
propres déclarations au Secrétariat ( Mme Barbara Blanquart: barbara.blanquar t@wto.org , ou 
tprd@wto.org ) le 21 mai au plus tard.  
 
Órgano de Examen de las Políticas Comerciales  
 
TONGA 
PROYECTO DE ACTA DE LA REUNIÓN* CELEBRADA LOS DÍAS 14 Y 16 DE ABRIL DE 2021  
Las delegaciones pueden enviar a la Secretaría (Sr a. Barbara Blanquart: 
barbara.blanquart@wto.org , o tprd@wto.org ) a más tardar el 21 de mayo de 2021  las 
correcciones fácticas que deseen introducir en sus propias declaraciones.  
 
 
_______________  
 
  WT/TPR/W/ 191 • Tonga  
 
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  TRADE POLICY REVIEW  
 
TONGA 
DRAFT  MINUTES OF THE MEETING  
Chairperson: H.E. Dr Athaliah Lesiba Molokomme (Botswana)  
CONTENTS  
 
1   INTRODUCTORY REMARKS BY THE CHAIRPERSON  ................................ .....................  3 
2   OPENING STATEMENT BY THE REPRESENTATIVE OF TONGA  ................................ ...... 5 
3   STATEMENT BY THE DISCUSSANT  ................................ ................................ ..............  8 
4   STATEMENTS BY MEMBERS  ................................ ................................ .......................  11 
5   REPLIES BY THE REPRESENTATIVE OF TONGA AND ADDITIONAL COMMENTS  .........  23 
6   CONCLUDING REMARKS BY THE CHAIRPERSON  ................................ .......................  28 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies provided 
by Tonga are reproduced in document WT/TPR/M/409/Add.1 and will be available online at 
http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/W/ 191 • Tonga  
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON  
1.1.  The second Trade Policy Review of Tonga was held on 14 and 16 April 2021. The Chairperson, 
H.E. Dr. Athaliah Molokomme (Botswana), welcomed the delegation of Tonga, headed by the 
Honourable  Tatafu Moeaki, Minister for Trade and Economic Development; Her Ex cellency, the 
Honourable Fanetupouvava'u Tu'ivakano, the London -based High Commissioner and Permanent 
Representative of Tonga to the WTO; the rest of the delegation from Nuku'alofa; and the discussant, 
H.E. Ambassador Mikael Anzén (Sweden).  
1.2.  The Chairperson  was pleased that, in addition to physical presence, the meeting also benefited 
from the Interprefy online connection, allowing for a wider participation of the Membership, in 
particular of officials who could not make the journey from Nuku'alofa given the  current 
circumstances.  
1.3.  The Chairperson recalled the purpose of TPRs and the main elements of procedures for the 
meeting. The report by Tonga is contained in document WT/TPR/G/409, and that of the WTO 
Secretariat in document WT/TPR/S/409.  
1.4.  Questions by the  following delegations were submitted in writing before the deadline: the 
United States; the European Union; Canada; Australia; Japan; and New Zealand. The following 
delegations submitted written questions after the deadline: China; and Brazil.  
1.5.  During the previous TPR meeting on 11 and 13 February 2014, Members had commended 
Tonga for its stable economic growth but had noted several sources of uncertainty, including its 
exposure to severe natural disasters, its narrow export base, and its reliance on remitt ances and 
donor support. For the current Review, Members, through their advance written questions, sought 
information regarding the impact of the COVID -19 pandemic, foreign exchange controls, and recent 
tax reforms.  
1.6.  Members also recalled that, at the time of the previous Review, while stressing Tonga's 
ambitious accession commitments, its open and liberal trade regime - even in a challenging 
environment - and its efforts to develop its legislation and administrative capacity so as to improve 
ease of doing b usiness and attract more investment, they had expressed some concern about its 
capacity to fully exploit existing preferences available within the import schemes of some Members. 
As indicated by the advance written questions for this Review, several Member s wished to have more 
details on: WTO notifications; participation in the Joint Statement Initiative on micro, small and 
medium enterprises (MSMEs), related statistics and RTA provisions in support of MSMEs; and 
changes on the new Foreign Investment Regula tions and the Reserved and Restricted Lists.  
1.7.  With regard to trade policy, at the time of the previous Review, Members had welcomed Tonga's 
relatively low tariffs, and had encouraged it to keep all applied tariff rates within bound levels and 
to ensure unif orm treatment of all imported and domestic like goods under its excise tax regime. Its 
wide-ranging services commitments and its efforts to strengthen the management of state -owned 
enterprises had been commended, and the importance attached to improving it s SPS regulatory and 
institutional framework had been acknowledged.  
1.8.  For this Review, in their advance written questions, some Members expressed interest in 
learning more about developments in certain areas, such as: customs clearance procedures, import 
licensing requirements, TBT, SPS, trade policy measures on non -communicable diseases, 
government procurement, and intellectual property rights.  
1.9.  In terms of sectoral trade policies, Members were interested in having more clarity on: rationale 
for absolute im port prohibition of meat of lamb and mutton breast; agriculture activities supported 
by government development loans; measures to combat illegal, unreported, and unregulated 
fishing; offshore mining and tourism developments; support to transport service pr oviders; and 
prospects for tourism recovery to pre -pandemic level.   
1.10.   Tonga had received around 84 advance written questions from eight delegations for this 
Review as at 12 April 2021.  WT/TPR/W/ 191 • Tonga  
 
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  1.11.   This meeting was a good opportunity for Members to discuss in greater detail issues of interest 
to them and of systemic importance to the multilateral trading system. It was also an opportune 
moment for Tonga to update the Membership on the impact of COVID -19 on its economy, and 
measures it had taken in response. The Chairperson looked forward to a fruitful exchange.  
  WT/TPR/W/ 191 • Tonga  
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF TONGA (HON. TATAFU MOEAKI)  
2.1.  Greetings from Tonga. I am very pleased to join you virtually today fo r Tonga's 2021 Trade 
Policy Review. Allow me to begin by thanking Your Excellency for convening this meeting, including 
your opening remarks. I would also like to acknowledge His Excellency Mikael Anzén of Sweden for 
acting as discussant today.  
2.2.  Let me also  extend our thanks to the Secretariat for their ability to deliver this report, under 
restricted circumstances. More importantly, I wish to extend our congratulations to Dr. Ngozi 
Okonjo -Iweala on her appointment as Director General, and to extend our abso lute best for her 
tenure at the Office.  
2.3.  This is Tonga's second Trade Policy Review since we joined the WTO in 2007. As a non -resident 
delegation, our engagements have been disrupted, but thanks to technology and to the WTO 
Secretariat in shifting to virtua l working arrangements, we can proceed business as usual.  
2.4.  Tonga, as a small island economy, with a population of 100,000, has remained stable in the 
last two decades. Although not the smallest Member of the WTO, we are in the most isolated region 
in the Pa cific. I raise this at the outset because Tonga faces many of the challenges typical of small 
island economies, including geographic isolation, our very limited human and financial resources, 
very small domestic market, and high costs of conducting busines s and service delivery. The 
economy is narrowly based and depends on inflows of remittances and external assistance to 
supplement our domestic revenue. The development of our economy is frequently disrupted by 
natural disasters. Tonga is one of the world's  most exposed countries to climate change and natural 
disasters. It had suffered the highest loss from natural disasters in the world (as a ratio to GDP) in 
2018 and is among the top five over the last decade in the world. This will be certainly worst by t he 
impacts of climate change.  
2.5.  The main challenge for Tonga in the medium term is to improve its growth potential and to 
create jobs for the young population, where our Ministry is responsible to ensure trade gains are 
achieved from eligible preferences and  regional trade agreements. Our Government's limited 
administrative capacity forces us to do things a little differently. We have to be more selective in the 
implementation of our reforms, resulting in substantial changes taking longer to implement and 
often resorting to external capacity to assist with reporting requirements.  
2.6.  Looking back at our first TPR, in 2014, we were struggling with the full implementation of our 
commitments, uncertainties, export ban, global pandemic and with managing the consequent  
disruptions, natural disasters and external shocks to our economy. Since then, over the years, we 
have taken steps to progress the implementation of our obligations. For example, Tonga Trade Policy 
Framework is our first comprehensive trade strategy which  was launched in 2020, it includes a 
systematic analysis of our trade needs, together with a more coordinated framework for improving 
the country's trading environment to foster a whole -of-government approach to address the 
challenges that we have prioriti zed. During this period, Tonga signed the PACER Plus free -trade 
agreement, which came into effect in December 2020. This will be, upon significant development of 
our readiness capacity, can offer the most economically significant trade agreement that Tonga  has 
joined outside the WTO.  
2.7.  The second major regional achievement has been the enormous growth of international labour 
mobility. For Tonga, the number of workers travelling to Australia and New Zealand under seasonal 
programmes has grown by an annual aver age of 14% since 2014. This numbers employed equivalent 
to one fifth of the full -time workforce in the economy. These workers' savings and remittances now 
amount to 9% of GDP, which has contributed to maintain our net remittances at over 30% of GDP 
even 12  months after the global pandemic. Preparations are underway to extend the scheme to 
include skilled workers.  
2.8.  With the onset of technology and improved internet access since the introduction of the fibre 
optic submarine cable in 2013, ICT is an area in whi ch Tonga has experienced advancement in terms 
of rapid growth in internet access, affordability and use since the introduction of the fibre optic 
submarine cable. Internet access has tripled from 2013 to 2019 and prices have reduced more than 
halved during  the same period and expect to drop further alongside market growth. Tonga completed 
its national e -Commerce Readiness Assessment which was launched in 2020 alongside our Trade WT/TPR/W/ 191 • Tonga  
 
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  Policy Framework. This Assessment identifies the key issues and priorities for the Government of 
Tonga to consider to fully realize the benefits of digital revolution.   
2.9.  The structure of our economy has changed little in the last decade where the services sector 
(public administration, trade, and tourism) is estimated to be at 51.3% of economic output; the 
industrial sector (manufacturing, utilities, and construction) increased to 13.7%; and the primary 
sector (agriculture, forestry, and fishing) decreased to 17.9%.  
2.10.   There have also been major challenges in recent years. Tonga held sec ond place in the World 
Risk Index in 2020, due to our extreme exposure to natural disasters and climate change. The 
country expects about two tropical cyclones a year, one of which is likely to be category 4 or 5. In 
2018, cyclone Gita caused damage estima ted by the World Bank at 38% of GDP, but Tonga has 
experienced significant further damage from cyclones Tino and Harold in 2020 even during the 
reconstruction period. Both reconstruction and building resilience are permanent areas of work, and 
building tra de and economic resilience is an important component of that.  
2.11.   Looking further into the future, the IMF's Climate Change Policy Assessment in 2020 estimated 
that the resilience work needed to prepare for a climate change would cost over 140% of GDP. In 
this context, Tonga welcomes the recent launch of Structured Discussions on Trade and 
Environmental Sustainability. There are important trade policy dimensions to the climate crisis and 
it is right that Members should not only participate, but look beyond thei r immediate commercial 
interests to find and implement solutions that will mitigate the collective harm that climate change 
will bring.  
2.12.   A second major social challenge that has important implications for our trade policy is the rise 
of non -communicable dis eases, including heart disease, cancer and diabetes. Tonga has one of the 
highest rates of obesity in the world, and NCDs have reached a critical level. Alongside a number of 
other factors, the rise in consumption of cheap and unhealthy imported food produ cts has 
contributed to this crisis, and the Government has opted to use trade policy to implement its 
cross-government policy agenda including the introduction of prohibitions of certain unhealthy 
products.  
2.13.   It is a difficult moment to reflect on the long -term trends or future of our major industries. 
Tonga responded to the coronavirus pandemic by restricting international travel, and in health terms 
this strategy has been effective. For us, prior to the COVID -19, a growing tourism industry accounted 
for 15%  of our GDP and was set to play an even bigger role in the future, based overwhelmingly on 
foreign visitors. COVID has reduced visitor arrivals to zero. However, our GDP industry statistical 
out-turns are obviously inconsistent and fail to reflect the nega tive impact of the travel restriction 
on the tourism sector, suggesting the need to use trade policy for services to ensure our tourism 
industry proceeds prior to the pandemic are real and accurately recorded even post COVID -19. 
2.14.   Tonga seems to be at the ta il ends of the same inconsistent application of the trade policy, 
for example in services, where Tongan subjects have to pay difficult to afford 'international fees' to 
benefit from a particular service within our region but it is not the case in like deve loped regions.  
2.15.   Tonga continues to face difficulties in meeting Technical Barriers to Trade and Sanitary and 
Phytosanitary measures set by importing countries in terms of our merchandise export which most 
of the time is too difficult for our capacity to com ply. Kava is an important agricultural commodity 
for Tonga like many friends of Kava in the Pacific, it is an integral part of our cultural and social life. 
Kava is a beverage that remains the main stay of trade at present to our diaspora around the world 
whilst commercial restrictions constrain us profoundly. The recent adoption of Kava Codex, will 
continue to be the largest window of opportunity that can benefit our country but remains unleashed 
due to many issues such as kava standards and stringent requ irements from importing countries, 
whereby in most times find it difficult to understand its consistency in other regions.  
2.16.   Our isolation also creates close links between tourism and much of our international goods 
trade. Planes carrying tourists into Tonga  enable high valued goods such as marine products to be 
carried out at a cost that, despite our extreme distance from major markets, allows us to be 
competitive in a few sectors. It is too early to understand the full effects that the recent and ongoing 
loss of air freight will have on those industries, but it is reasonable to expect the pandemic to jolt 
the country's long -term development trajectory in ways that will not be fully clear for some time.   WT/TPR/W/ 191 • Tonga  
 
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  2.17.   Among our priorities, the foremost is the possible con clusion of a fisheries subsidies 
agreement — which could have a profound impact on the future development of a sector that plays 
such an important role in our society. At one end of the spectrum, commercial exports of fresh fish 
represented 20% of merchand ise exports prior to the pandemic, and we are optimistic that 
meaningful limits on the level of subsidies granted to distant water fleets could leave more space for 
small island States to cultivate their fisheries without unfair competition. But away from our 
commercial fleets, fisheries are central to our communities and history, and play a role in the 
livelihoods of our most remote islands.  
2.18.   Tonga has also been closely monitoring a number of interrelated conversations about the 
complex links between trade and the environment. We have taken note of the joint communication 
on trade and environmental sustainability in November 2020, and the start of structured discussions 
earlier this year. We will continue to follow these discussions as closely as we are able , and we hope 
that other Members also recognize their importance.  
2.19.   Despite these issues, we wish to express our gratitude to the efforts of the Secretariat and 
also to our bilateral development partners: the Governments of Australia, New Zealand, Japan, and  
China; the United Nations’ Agencies; the Asian Development Bank and the World Bank for their 
significant assistance with the provision of vaccines for COVID -19 to ensure the safe reopening of 
our borders to facilitate trade in services and merchandise.  
2.20.   To conclude, I would like to thank all Members who have already submitted questions during 
this process, and I hope the preliminary answers we have provided are helpful. Many thanks to 
Members who are joining us virtually, and I look forward to hearing your reflections on Tonga's trade 
policy shortly. I would also like to thank the many donors that have provided trade -related technical 
assistance to the country in recent years. We look forward to many more productive partnerships in 
the implementation of Tong a's Trade Policy Framework. Finally, I would like to acknowledge 
Ambassador Falemaka from the Pacific Geneva office, and colleagues who have helped to represent 
Tonga's interests in Geneva by making statements on behalf of all of us and updating us on 
developments. As a non -resident Member, we rely heavily on your assistance and we sincerely 
appreciate it. Thank you ver y much . 
  WT/TPR/W/ 191 • Tonga  
 
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  3  STATEMENT BY THE DISCUSSANT  
3.1.  It's a true honour for me to be your discussant here today for Tonga’s second Trade Policy 
review.  
3.2.  A colleague of mine once said, Geneva is like a big open university, you can learn so much 
every day, as long as you stay curious and open for new impressio ns. It's from this perspective I 
gladly accepted to be your discussant. To selfishly learn more about a country that I until very 
recently knew very little about. And like at the university – as in our daily work – the more we learn 
about an issue, the mor e interesting it gets.  
3.3.  First of all, I would like to commend Tonga for its Trade Policy review, but also the WTO 
Secretariat for its thorough report: 99 pages of policy analysis for a quite small country. These 
regular analyses are one of the corner pillar s of the WTO and should be spread and read way outside 
Geneva. And I hope you all will help spreading this one too.  
3.4.  Before I'll comment on the Reports and my impressions, I'll start with some basic observations 
from me, as a Swede:  
3.5.  As a kid, I read the Swe dish author Astrid Lindgren's story about Pippi Long stocking, and here 
father was a sailor, "living in the Pacific", no country was mentioned but, in my thoughts, goes to 
the islands of Tonga.  
3.6.  For us northerners, with a foot above the Arctic circle accus tomed to cold and dark winters, 
there is some kind of a mystery and magic around pacific islands. Sunshine and high temperatures 
every day. After this Trade Policy Review, I think I have to go to Tonga and a very good reason to 
do so.  
3.7.  Tonga is almost as f ar from Sweden you can go; it is completely opposite on the globe in the 
southern hemisphere. But distance apart, I've noticed some similar features :  
• Both countries are constitutional monarchies.  
• Both countries are led by the Prime Minister elected by the  unicameral Legislative Assembly, 
to which elections are held every fourth year.  
• National Day in Tonga is 4th of June, National Day in Sweden is 6th of June.  
• And for both countries there seems to be rather complex fiscal systems.  
 
3.8.  I will now turn to comme nt on some aspects of the review I found interesting, but I'll limit 
myself to not comment on everything. I'm sorry if there will be some repetition.  
Some comments about the Tongan economic environment  
3.9.  Here in the WTO I often hear references to the challenges of the small island economies. And 
when we review Tonga this is really something we must bear in mind.  
3.10.   An archipelago of 176 islands in the middle of the Pacific. It means long distances for 
transp orts and imports. The permanent risk of Tropical Cyclones but also droughts, earthquakes and 
Tsunamis are factors that we are spared from in Sweden. But this small island nation must face it 
every year.  
3.11.   A limited domestic production base underpins the nee d for import of staples, challenges to 
food security, as well as for energy production.  
Tonga as an international player  
3.12.   At the same time, Tonga is an international player. I'm very impressed to see how Tonga has 
been successful in becoming an active memb er in the international community, a member of the UN 
from 1999 and a Member of the WTO from 2007. This is a proof of how important international 
cooperation is for a small island State, and that we, on the other side of the globe pay this country 
well-deserved attention. The World Bank ranked Tonga on 97th out of 188 economies in their survey 
"Doing Business" which is impressive for a small island of only 104 000 inhabitants.  WT/TPR/W/ 191 • Tonga  
 
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  On WTO and on Trade Policy  
3.13.   As I said, Tonga has been a Member of the WTO since J uly 2007, so it's a rather "young" 
Member, still in the teens. Tonga is not part of the ITA, GPA and Trade in Civil Aircraft Agreement, 
but it is in the process of notification of the TFA -agreement.  
3.14.   All this cannot be easy to handle for a country without physical representation in Geneva. 
Tonga follows the WTO from its embassy in London with the assistance of the Pacific Island Forum 
Secretariat, the ACP Secretariat and the Commonwealth Secretariat to  inform about the ongoing 
discussions in Geneva and I've got the impression you do a very good job to follow it.  
3.15.   Tonga is maybe a small player but also an active one, with many regional trade agreements: 
such as PICTA (among Pacific Islands), PACER includ ing Pacific Islands, Australia and New Zeeland, 
the EPA -agreement with the EU, and GSP schemes with Australia, Canada, the EU, Japan, New 
Zeeland, Norway, Russia, Switzerland, Turkey and the US.  
3.16.   Overall, Tonga is a rather open and trade dependent economy.  
3.17.   Having said that, all countries have their sensitivities and it often relates to what kind of 
economy we are talking about. Since Tonga is a small island with a limited market, there are 
restrictions to foreign investments, for example in taxi business, re ntal cars, cultural sector, security 
sector, agricultural sector, and some fishing activities. Foreign investors need a certificate for 
investing in Tonga.  
3.18.   I note an average applied tariff of 10.4% and a bound tariff of 7.2% at the same time as 
Tonga gran t preferences of 67% of its dutiable tariffs within the PACER Plus agreement.  
3.19.   I also note that Tonga has no legal and institutional framework for application of anti -
dumping, countervailing and safeguard measures. And does not levy any export taxes.  
3.20.   The b iggest goods sector in Tonga is agriculture, making up to 17.7% of GDP employing 
22.1% of the work force. Agriculture products also dominates the export making up 54.4% - 
commodities such as squash, pumpkins, root crops and kava.  
3.21.   With an Exclusive Economi c Zone of 700 000 km2, it's worth noting fishing is one of the 
country's biggest export sectors. Exports dropped during the review period due to Tropical Cyclone 
Gita but recovered in 2019 making up 26.6%. But fishing only constitutes 1.9% of GDP.  
3.22.   Concern ing services, I assumed that with a crystal -clear water, sun and warm weather the 
main services sector would have been tourism. But I've learned that Tonga is a rather high -cost 
destination and tourism only makes up for 3.3% of GDP, although growing during  the review period. 
Instead leading services sectors are wholesale and retail, real estate activities and public 
administration. The services sector accounts for 49.2% of the GDP and employs 56.8% of the work 
force. In light of the importance of the servic es sector, it is not to a surprise reading that Tonga has 
made specific commitments in the GATS in 89 out of 160 subsectors, which is quite substantial for 
a small island.  
3.23.   As I said previously, Tonga has a quite complicated tax system. Taxes are although o utside 
the realm of WTO trade policy, but I note that there are as well taxes that have a "discriminatory 
effect", giving domestic producers an advantage. In the report by the Secretariat I see that it is 
often related to public health concerns, which coul d be a legitimate cause, but I have problems to 
understand how a locally produced gin or vodka, less taxed, would help to obtain the goal of better 
health. In my eyes it looks rather as a disguised support measure for domestic producers.  
My observations an d recommandations  
3.24.   On fisheries, I notice legislation in place and a fishery management plan. At the same time, 
in the Secretariat report fluctuations in the actual catch of tuna exceeds the quote for the same year 
and the report also says that "Tonga faces  challenges in monitoring fishing vessels and enforcing 
regulations in combatting IUU fishing due to the lack of capacity…". It's not clear to me if Tonga has WT/TPR/W/ 191 • Tonga  
 
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  been engaged in the fish subsidies negotiations, but in my view, this should be a clear -cut prior ity 
for Tonga in the WTO.  
3.25.   The second observation is about energy. Tonga is heavily dependent on petroleum imports to 
feed the electric generators consuming 13 million litres of fuel a year. Diesel generators make up 
88% of electric capacity meanwhile solar  only counts for 8.3% and wind 3.7%. Although Tonga has 
the highest levels of access to electricity in the region, I see a big room of structural change going 
more for renewables such as wind and solar energy, rather than being dependant of imports of more  
polluting fossil fuel energy.  
3.26.   My third observation goes to e -commerce and the IT sector. I would have assumed that Tonga 
had a more developed e -commerce regime and more companies involved in both e -commerce but 
also other IT related services sectors. If I would guess, this sector will grow in the coming years.  
Questions, not to Tonga but to the WTO Secretariat  
3.27.   My final remark would be addressed to the Secretariat and their thorough work on the Trade 
Policy report on Tonga which I read with great interest  and which will now be one of the main 
dictionaries on trade and economy for the years to come about Tonga.  
3.28.   There was one thing that struck me and that I found a little unbalanced if you allow me to 
say so. In the Report there are limited references to th e implications if the COVID crisis. I heard and 
I read that Tonga has not been affected directly by the COVID, there are no cases on the islands to 
my knowledge so far. But for me it would have been very interesting to understand the global 
consequences of  the COVID crisis for a small economy as Tonga and a more elaborate discussion on 
these implications. I'm sure that there are, and in ten years -time, when we look back on the year 
2020, I think we all will start with the COVID year so I think that this sho uld be reflected.  
3.29.   The second issue I miss is a discussion about trade and gender. As we know, half of the 
world’s population are women, but we all know that the conditions for women in trade and in the 
workforce are often different from those of men. It wo uld have been very interesting to read more 
about the gender dimension of the economic life and trade in Tonga.  
In conclusion  
3.30.   As I said in my introductory remarks, there are some similarities between Tonga and Sweden. 
I will end by quoting a few sentences from Tonga's own report to this Trade Policy Review: "Tonga 
remains firmly committed to the multilateral trading system. Small, open economies such as Tonga 
are particularly reliant on a system of binding international rules that provide a solid framework for 
economic development based on the free movement of goods, services, investment and labour. The 
Government is hopeful that the concerns that various Members have about the future of the WTO 
can be resolved through consensus -based negotiation that avoids  weakening a system that is of 
such value to all of its Members". These are very wise words that could have, as well, been written 
in Stockholm for Sweden but I hope all of the Members of this Organization could subscribe to 
Tonga's commitment to the WTO. I thank you.  
  WT/TPR/W/ 191 • Tonga  
 
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  4  STATEMENTS BY MEMBERS  
UNITED  STATES  
4.1.  On behalf of the United States, I am pleased to welcome the delegation of Tonga, headed by 
the Hon. Tatafu Moeaki, Minister for Trade and Economic Development, to Tonga’s second WTO 
Trade Policy Review since its accession in 2007. We thank the Secretariat and the Government of 
Tonga for their informative reports, and we appreciate the opportunity to gain a clearer sense of the 
changes and improvements to Tonga’s trade and investment policies since  its last Review in 2014.  
4.2.  We commend Tonga for undertaking important reforms to increase transparency in its trade 
policymaking and legislative process, including Tonga’s establishment of a Trade and Economic 
Development Working Group (TEDWG) in July 2018.  The TEDWG brings representatives from the 
public and private sector, including NGOs and grassroots organizations, into the advisory process 
for trade and economic development. Further, in 2020, the Legislative Assembly collaborated with 
the Government to undertake public consultations on pending bills.  
4.3.  We are pleased to see that Tonga has taken steps forward to fight corruption and improve the 
country’s governance. We commend Tonga on its accession to the 2003 United Nations Convention 
Against Corruption and the country’s commitment to address issues of corruption. We also welcome 
the creation of a manual on drafting legislation, which provides guidance to officials on how to 
develop laws and other measures in a clear and consistent manner and supports com pliance with 
international obligations.  
4.4.  We welcomed the opportunity to submit questions to the Government of Tonga. We thank the 
delegation of Tonga for its attention to our questions, and we will carefully examine the written 
responses we have received.  
4.5.  We would appreciate an update on Tonga’s ongoing efforts to implement and ratify the Trade 
Facilitation Agreement (TFA). In addition, we are interested in getting a better understanding of the 
status of Tonga’s intellectual property protection and enforceme nt system, including the status of 
IP-related legislation. We would also like to better understand Tonga’s plans to join certain 
international intellectual property treaties and its customs enforcement efforts, including a 
requirement that over 20% of ship ments undergo physical and documentary checks. The Secretariat 
report also noted that Tongan customs authorities may suspend clearance of allegedly illegal goods 
— including counterfeit goods — in accordance with the legislation on the protection of copyri ght 
and related rights. As noted in our written questions, we would appreciate Tonga’s response to our 
question as to whether customs authorities have a system in place to identify repeat infringers, and 
if so, who tracks this information.  
4.6.  We also note tha t, in recent years, Tonga has faced a series of tropical cyclones that have 
negatively impacted the country’s economy and projections for economic growth. We further note 
that Tonga —like many countries here today —is dealing with the economic impact of the COVID -19 
pandemic. We encourage Tonga to continue to pursue trade and investment policies that promote 
economic recovery and equitable growth.   
4.7.  In closing, we again want to express our appreciation for the opportunity to participate in 
Tonga’s second WTO Trade Policy Review. We are encouraged by Tonga’s ongoing commitment to 
the WTO and its comments that it supports a rules -based multilateral trading system Considering 
the clear challenges in participating as a WTO Member without a Geneva mission, we remai n 
committed to working with Tonga to implement its WTO obligations, such as its notification 
requirements with respect to ratifying the WTO Trade Facilitation Agreement this year, and helping 
it maximize the benefits of its WTO membership.  
4.8.  We appreciate To nga’s engagement in this process and look forward to continued work with 
Tonga and other Members to support the rules -based multilateral trading system.  
  WT/TPR/W/ 191 • Tonga  
 
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  EUROPEAN  UNION  
4.9.  I would first like to welcome the delegation of the Kingdom of Tonga, led by the Hon.  Mr. Tatafu 
Moeaki, Minister for Ministry of Trade and Economic Development. I would also like to thank the 
WTO Secretariat and the Tongan Government for their reports, which form the basis for our 
discussion today. Let me extend our appreciation to the Dis cussant, H.E. Mr. Mikael Anzén for his 
comments and introducing us to the country's trade policy review.  
4.10.   This is Tonga’s second Review since its accession to the WTO in 2007, and I would like to 
start by noting that Tonga is an outstanding example of how beneficial participation in the WTO can 
be for a small island economy.  
4.11.   The EU recognizes that Tonga is the smallest Pacific WTO member, whose largely rural 
communities depend on agriculture and fisheries. Like much of the world, Tonga has faced the 
econom ic downturn of the COVID -19 pandemic. Even though Tonga has no confirmed cases, the 
country has been affected by the suspension of international tourism, which had knock -on effects 
on the broader economy.  
4.12.   As noted in the Government and Secretariat reports,  Tonga is particularly vulnerable to 
climate change and prone to natural disasters, such as the devastating tropical cyclone Gita in 2018. 
When discussing trade and environment issues at the WTO, it is evident that Members need to take 
into account the par ticular exposure of countries like Tonga to the effects of climate change.   
4.13.   We welcome Tonga’s efforts towards ratifying the Trade Facilitation Agreement (TFA) in 2021, 
and its participation in the TFA notification process. The EU encourages Tonga to comp lete its internal 
legislative process for securing the prompt approval of the TFA.  
4.14.   The EU commends Tonga for its remarkable effort over the last year to close the gaps in its 
notification performance. This commitment to transparency shows Tonga’s appreciat ion for 
international trade rules. We trust that the technical work to prepare the notifications has been 
beneficial for the Tongan authorities, too, and that they will not hesitate to draw on the Secretariat’s 
resources again in order to keep Tonga’s noti fications up to date in the future.  
4.15.   The EU is a steady and major supporter of Tonga's economic development and a key partner 
in Tonga's integration into the global marketplace. Cognisant of how significant Aid for Trade support 
is for Tonga to enhance its trade capacity, the EU is one of Tonga’s top Aid for Trade donors.  
4.16.   The EU welcomes Tonga's increasing openness to international trade and supports Tonga’s 
efforts to diversify its economy further. We strongly welcome Tonga's request for accession to the 
interim Economic Partnership Agreement (EPA) between the EU, Fiji, Papua New Guinea, Samoa, 
and Solomon Islands, which we hope will provide a long -term platform for our trade relations. The 
EU stands ready to closely work with Tonga to ensure effective acces sion to, and implementation of 
the EPA and to further develop our trade and investment relationship.  
4.17.   On behalf of the EU, I look forward to a constructive exchange of views and wish the Kingdom 
of Tonga the best of success during its second Trade Policy Re view. 
CANADA  
4.18.   Canada joins others in welcoming Minister Moeaki and the delegation of the Kingdom of Tonga 
to this second Trade Policy Review of Tonga. Canada is very pleased to be participating in this 
important discussion.  
4.19.   Since its previous Trade Policy Review in 2014, and as noted in the Secretariat report, the 
Government of Tonga has implemented institutional changes despite several challenges, including a 
series of tropical cyclones. Canada would like to take this opportunity to express its support to the 
Tongan communities affected by natural disasters and rising sea levels. Canada has been steadfast 
in its collective commitment with other developed countries to mobilize climate finance through 
2025. As part of this commitment, Canada is working to add ress the critical gap of sustained, 
in-country technical expertise to support Pacific Island countries like Tonga in securing and 
structuring finance for priority climate projects.  WT/TPR/W/ 191 • Tonga  
 
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  4.20.   As a small island developing State, Tonga is particularly exposed to natura l hazards, which 
remains a serious risk to its economic development. In addition, the COVID -19 pandemic has heavily 
impacted Tonga's economy with the most vulnerable persons hit the hardest, including women and 
girls. In this regard, and despite the numero us challenges faced by Tonga in recent years, we salute 
the progress and efforts made by the Government of Tonga to support growth and enhance their 
trade -policy framework.  
4.21.   Canada also applauds Tonga’s commitment to the rules -based multilateral trading sy stem 
with the WTO at its core.  
4.22.   The Government of Tonga deserves credit for its important tax reform, and improvement of 
finance management, as noted by the Secretariat. The modernization of the monetary policy and 
macroeconomic framework are other areas that merit focus. Canada also tak es the opportunity to 
welcome Tonga’s accession to the 2003 United Nations Convention Against Corruption.  
4.23.   Canada commends the Kingdom of Tonga for its work towards ratifying the Trade Facilitation 
Agreement.  
4.24.   Canada welcomes Tonga’s support of the Buenos A ires Declaration on Women and Trade, and 
encourages Tonga to consider participating in the Joint Statement Initiatives.  
4.25.   Canada also encourages Tonga to address its outstanding notifications, and wishes to thank 
Tonga for its answers to Canada’s advance que stions.  
AUSTRALIA  
4.26.   Australia is pleased to participate in Tonga’s second Trade Policy Review. Australia and Tonga 
share a strong partnership, established on the longstanding and extensive people -to-people links 
between our two countries. Our cooperation spa ns trade, investment, labour mobility, security, 
development cooperation and sport. In addition to our bilateral engagement, our two countries work 
closely together at regional and global levels to promote the shared security, resilience, and 
economic pros perity of the Blue Pacific.  
4.27.   Our close working relationship has reinforced Tonga’s resilience in the face of the global 
COVID -19 pandemic. Australia congratulates Tonga on its early and ongoing action to remain free 
of the COVID -19 virus and to provide prom pt economic support. Australia and Tonga agreed to 
restart our labour mobility programs in September 2020, providing a continuing flow of remittances 
to Tonga and economic benefits for both our countries. We are also pleased to be working closely 
with the Government of Tonga, the private sector, civil society, and international development 
partners towards recovery in Tonga, including through Australia’s COVID -19 Vaccine Access and 
Health Security Initiative for the Pacific and Southeast Asia.  
4.28.   Since the las t Trade Policy Review in 2014, and prior to COVID -19, Tonga has faced a number 
of natural disasters including Tropical Cyclone Gita in 2018, the measles outbreak in 2019, and 
Tropical Cyclone Harold in 2020, all testing Tonga’s ability to respond and recov er. Positioned second 
in the World Risk Index of natural disaster risk, Tonga has made great strides in its economic, trade 
and governance reform agenda and economic growth, all important for building resilience.  
4.29.   Tonga also faces socio -economic challenges  associated with a high level of non -communicable 
diseases. Australia is supporting Tonga’s concerted efforts to promote consumption of healthy food, 
while respecting international trade obligations.   
4.30.   At a domestic level, we welcome Tonga finalising its s econd private sector development 
strategy in 2018 and launching its first trade policy framework (the Tonga Trade Policy 
Framework/TTPF 2017 -2025) in 2020. TTPF’s focus on (i) improving the export competitiveness of 
Tongan businesses, (ii) supporting expor t development and trade facilitation, (iii) developing 
trade -supporting institutions and services, and (iv) inclusion and economic empowerment of citizens, 
aligns well with Tonga’s ambitions to participate in the multilateral trading system.  
4.31.   We note the c oncluding statement of the IMF Article IV Consultation Mission in 2020 
emphasised the need for Tonga to unlock the potential of its private sector. This will help ensure a WT/TPR/W/ 191 • Tonga  
 
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  more sustainable balance of trade. We recognize a critical avenue for the Tongan Gov ernment to 
enhance exports is by ensuring effective regulatory and enforcement controls of agricultural goods 
export, particularly in relation to biosecurity. However, we encourage Tonga to ensure the 
agricultural and fisheries exports sector has high qual ity export infrastructure and accompanying 
policies that enable the private sector to assume responsibility for operation and management of 
export pathways.  
4.32.   At the regional level, Australia has appreciated Tonga’s membership of the Pacific Agreement 
on Cl oser Economic Relations (PACER) Plus FTA. Tonga was a constructive partner during PACER 
Plus’s negotiations. We particularly thank Tonga for its efforts contributing to the timely entry into 
force of PACER Plus. Tonga has played the essential role of repos itory for the agreement and has 
overseen the ratification of eight Parties – including its own ratification in April 2020 as the fifth 
PACER Plus signatory to ratify the agreement. Tonga’s ratification also demonstrated to other 
members the importance of P ACER Plus in supporting the long -term economic recovery from 
COVID -19 through re -establishing and boosting trade and investment links. With thanks to Tonga’s 
support, PACER Plus entered into force on 13 December 2020. Australia looks forward to our renewed  
engagement with Tonga as an FTA partner and realising the benefits of PACER Plus across our Pacific 
region.  
JAPAN  
4.33.   Let me first extend a warm welcome to this second Trade Policy Review meeting to the 
distinguished delegation of Tonga headed by H.E. Tatafu Moeaki, Minister for Trade and Economic 
Development. Japan sincerely appreciates the dedicated efforts made by the Government of Tonga 
and the WTO Secretariat to prepare the reports that have provided us with important insights for 
today's review. We are a lso grateful to the discussant, H.E. Mr. Mikael Anzén, Ambassador of 
Sweden, for his insightful remarks.  
4.34.   Tonga is an important partner for Japan in the Oceania region. In 2020, our two countries 
celebrated the 50th Anniversary of our establishment of Diplo matic Relations. Japan welcomes the 
economic growth Tonga achieved during the review period as a result of growth in the construction 
sector, private consumption, and an accommodative monetary policy stance. We look forward to 
seeing Tonga recovering from the economic downturn caused by a succession of natural disasters 
and COVID -19 and achieving further development.  
4.35.   Japan appreciates Tonga’s commitment to the multilateral trading system even though its 
representation in Geneva might be limited. We welcome  Tonga’s efforts towards ratifying the Trade 
Facilitation Agreement in 2021. We believe it is important for Tonga to submit all outstanding 
notifications together with the necessary information. We encourage Tonga to consider joining the 
Joint Statement In itiatives. We look forward to Tonga improving its legal and institutional framework 
for a better trade environment and remaining engaged in multilateral and plurilateral frameworks 
under the WTO to further strengthen the Multilateral Trading System  
4.36.   On Inve stment, Japan welcomes Tonga’s efforts during the review period to promote foreign 
investment by improving the legal framework of its investment regime, acceding to the 1958 United 
Nations Convention on the Recognition and Enforcement of Foreign Arbitral A wards. We look forward 
to seeing the successful implementation of the new Foreign Investment Act 2020 to attract more 
foreign investment.  
4.37.   In conclusion, Japan appreciates Tonga making this TPR meeting possible in spite of the 
current situation with the pa ndemic. Japan highly commends Tonga’s efforts for the improvement 
of its trade and investment environment since the previous review. We wish Tonga a successful and 
productive TPR.  
NEW  ZEALAND  
4.38.   New Zealand welcomes the opportunity to participate in the secon d Trade Policy Review of 
Tonga. New Zealand congratulates Tonga on delivering a comprehensive and robust Country Report 
and looks forward to further discussion of Tonga’s trade policy regime over the course of this Review.  WT/TPR/W/ 191 • Tonga  
 
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  4.39.   Geographically, Tonga is New Zeal and’s nearest neighbour. Our shared Polynesian heritage 
means our relationship is one of whanaunga/kin -to-kin. Today, 82,000 Tongans call New Zealand 
home. Economically, our two nations are interlinked, with New Zealand being Tonga’s largest trading 
partne r and the majority of Tonga’s remittances flowing from communities in New Zealand.  
4.40.   This Review of Tonga’s trade policy takes place at a time when Tonga and the rest of the 
globe is combating and looking to recover from the COVID -19 pandemic. While Tonga’s  border 
restrictions have significantly impacted its economy, as is true across the WTO Membership, we 
congratulate Tonga on being one of the few countries to remain COVID -19 free.  
4.41.   Since its last Trade Policy Review in 2014, Tonga has also unfortunately be en impacted by a 
number of tropical cyclones, most notably cyclones Gita in 2018 and Harold in 2020, as well as a 
significant outbreak of measles in late 2019.  
4.42.   Internationally, New Zealand and Tonga work together closely in a range of bilateral and 
multila teral settings, sharing similar perspectives on many issues, including on the benefits of 
international trade and the importance of collective climate change action.  
4.43.   New Zealand commends Tonga for its leadership as depositary of the PACER Plus Agreement. 
We recognize the significant preparatory work of signatories’ senior officials to date, which 
culminated in the Agreement entering into force in December 2020. We acknowledge that 
implementing the Agreement is a challenging process for Tonga, and for the ot her Pacific Parties. 
New Zealand encourages Tonga to continue to prioritize PACER Plus implementation as this will 
maximize Tonga’s ability to benefit both from the Agreement and the WTO agreements it is party 
to. These efforts will help further integrate Tonga into the global economy.  
4.44.   New Zealand congratulates Tonga on its efforts to reduce dependency on fossil fuels. We 
welcome Tonga’s insights on its experience with its targeted fuel subsidy.  
4.45.   New Zealand notes Tonga’s high rates of non -communicable diseases (NCD) and commends 
Tonga for its effort to tackle these. We would be interested to know whether the trade policy 
approach Tonga has taken as part of these efforts is delivering improved heal th outcomes, and what 
plans the Government of Tonga has to further address Tonga’s NCD challenges.  
4.46.   New Zealand recognises the significant contribution Tongans make to New Zealand’s 
Recognised Seasonal Employer Scheme. New Zealand is interested in the devel opment of Tonga’s 
Labour Mobility Policy Framework and how the global pandemic has impacted implementation.  
4.47.   New Zealand has also raised questions in this Review with regards to the development of 
Tonga’s tourism sector. New Zealand invites Tonga to elabor ate on its Tourism Crisis Response and 
Recovery Plan.  
4.48.   In conclusion, New Zealand commends the steps taken by Tonga since the 2014 Review to 
maximize trade benefits and, over the past year, to manage the impacts of the pandemic; and 
particularly recognizes the challenges it faces as a developing economy at this time.  
4.49.   We wish Tonga a successful Trade Policy Review experience and we look forward to Tonga’s 
perspective on the issues that will be raised during the course of this review.  
CHINA  
4.50.   China would like to  warmly welcome the delegation of Tonga headed by H.E. Tatafu Moeaki  
to this second Trade Policy Review. We would also like to thank the WTO Secretariat and the 
Government of Tonga for their reports and the discussant, H.E. Mr. Anzén for his insightful rem arks.  
4.51.   China would like to commend Tonga’s better economic performance with average real GDP 
growth of 2.35% annually from 2013 to 2019, compared with 1.27% over the previous review 
period. We are also pleased to see Tonga has established a trade policy fr amework and improved its 
investment regime framework during the period under review, to support its sustainable 
development.  WT/TPR/W/ 191 • Tonga  
 
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  4.52.   Turning to trade policy, Tonga’s commitment to the multilateral trading system is welcome. 
We take note that Tonga has not yet rat ified the Trade Facilitation Agreement (TFA), but already 
participated in its notification process. We encourage Tonga to step up its efforts to implement the 
TFA as soon as possible. We also welcome Tonga’s continuous interest and participation in fishery  
subsidies negotiation.    
4.53.   The trade between our two countries maintained steady growth in the past few years. 
According to our statistics, the bilateral trade reached a value of USD 34 million in total in 2020, up 
14% compared to 2019. On investment, Chin a is the major foreign direct investor to Tonga, and our 
FDI amounted to USD 10 million in total in 2020. We would like to take this opportunity to encourage 
Tonga to further improve its investment regimes to attract more FDI to support its economic and 
social development. In addition, we carried out sound cooperation with Tonga in the framework of 
China -Pacific Island Countries Economic Development and Cooperation Forum in various sectors, 
such as agriculture, infrastructure, renewable energy, and look for ward to enhancing our cooperation 
in this framework.  
4.54.   In conclusion, China appreciates Tonga making this TPR meeting possible in spite of the 
current pandemic situation. For the purpose of this Review, China has submitted questions to the 
Tonga and looks fo rward to early responses from Tonga.  
4.55.   Finally, we wish this Trade Policy Review a great success.  
BRAZIL  
4.56.   Let me start by welcoming the delegation of the Kingdom of Tonga, headed by Minister 
Moeaki. I would also like to thank the discussant, Ambassador Anzén,  and you, Chair, for your 
respective statements. Let me also congratulate the Secretariat for the thorough and efficient 
preparation of Tonga’s second Trade Policy Review.  
4.57.   Brazil is pleased to participate in the second Trade Policy Review of Tonga. In the first Review, 
in 2014, Brazil mentioned that trade plays a central role in the process of economic and social 
development of every country. We are happy to hear that Tonga not only agrees, but has also 
highlighted, in its report, that the multilateral trad e rules provide the framework needed to promote 
economic development based on open markets.  
4.58.   The accession of Tonga to the WTO in 2007 was a milestone in Tonga’s integration process to 
the global economy. Since the first Trade Policy Review, progress has b een made, bilateral trade 
figures continue to grow, despite the consequences of the coronavirus pandemic, which had 
significant effects over trade flows in 2020. If we look further back, we are pleased to note that 
trade between Brazil and Tonga has increa sed considerably since 2007, even though the distance – 
and the logistical difficulties – are considerable.  
4.59.   Brazil considers, however, that there is still room for improvement. We believe that bilateral 
trade is still well below its potential and could be further expanded, both in terms of value and of 
diversification. We trust that partnership between our countries will continue to develop and we will 
be able to close this gap in the near future.  
4.60.   I would like to conclude by reiterating that Brazil stands ready to further enhance its 
cooperation and trade with Tonga. We wish the Kingdom of Tonga a successful Trade Policy Review.  
SINGAPORE  
4.61.   Let me start by extending a very warm welcome to the Honourable Mr Tatafu Moeaki, Minister 
for Trade and Economic Develo pment and the Tongan1 delegation participating virtually from 
Nuku’alofa. We thank Tonga for its Government report and statement. We also thank you, the TPRB 
Chair, Ambassador Athaliah Molokomme, the Secretariat, and the discussant, Ambassador Mikael 
Anzén of Sweden, for their  insightful reports and statements.  
 
1 Tonga joined the WTO in 2007.  WT/TPR/W/ 191 • Tonga  
 
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  4.62.   At the outset, Singapore commends Tonga for conducting this TPR via a “hybrid” format 
despite the difficulties posed by the COVID -19 pandemic and the impact of natural disasters. It 
reflects Tonga’s commitment to the WTO  and the Trade Policy Review process. The monitoring 
function is a critical pillar of the WTO, and the conduct of this “hybrid” TPR signals the organisation’s 
continued resilience. Allow me to now make three points.  
4.63.   First, Singapore and Tonga enjoy long -standing and warm relations as fellow small island 
States. Singapore remains Tonga’s second largest source of imports from 2014 to 2019, with refined 
petroleum products representing the bulk of the imports. In 2020, bilateral trade between Singapore 
and Ton ga amounted to USD 2.4 million but there is room for growth and for both sides to expand 
bilateral cooperation. One such area is increased cooperation in the tourism sector. With Tonga’s 
abundance of marine parks and reserves, there is potential to promote  sustainable tourism which 
can showcase Tonga’s rich biodiversity. As small island states, Singapore and Tonga can also share 
our development experiences with each other. Under the Singapore Cooperation Programme (SCP), 
more than 150 Tongan officials have received training in various areas such as urban development, 
management of waste and reduction of marine litter. The MOU signed by Tonga’s former Prime 
Minister Lord Tu’ivakano2 in 2014 to provide partial scholarships to Senior Tongan Government 
Official s for MBA courses and fellowships at the Nanyang Business School illustrates the importance 
of collaboration to develop human resources to support economic development. We look forward to 
growing bilateral cooperation and identifying new areas of cooperati on. 
4.64.   Second, Singapore commends Tonga’s continued efforts to deepen regional economic 
integration. We applaud Tonga’s efforts in establishing a robust trade policy framework and 
negotiating regional market access arrangements, as exemplified by the Pacific Agreement on Closer 
Economic Relations Plus (PACER Plus) which just came into force in December 2020. This will be 
Tonga's most economically significant regional free -trade agreement to date. Tonga’s positive 
experience in trade and tariff liberalisation w ith the PACER Plus will facilitate its accession to and 
implementation of other RTAs, such as the Pacific Island Countries Trade Agreement (PICTA), and 
another possible future agreement with Australia and New Zealand. We are confident that these 
developmen ts will help Tonga further integrate into global supply chains as it climbs the economic 
ladder.  
4.65.   Third, on the multilateral front, we welcome Tonga’s continued commitment to the WTO. 
Despite the absence of a Permanent Representative in Geneva3, Tonga has made sustained efforts 
to make its voice heard. Most recently, Tonga was one of the co -sponsors of the Joint Statement on 
Export Prohibitions or Restrictions Relating to the World Food Programme , which was issued in 
January 2021. We also note t hat under its Trade Policy Framework (TTPF), Tonga is keen to improve 
its trade policy in the area of E -Commerce and has developed a National E -commerce Readiness 
Assessment (NERA) to support its efforts. In this regard, we strongly encourage Tonga to join  the 
Joint Statement Initiative (JSI) on E -Commerce discussions, which will enable Tonga to embrace 
E-Commerce to deliver the most benefits for MSMEs and women entrepreneurs by reducing costs 
and expanding markets. We also encourage Tonga to continue its e fforts to ratify the Trade 
Facilitation Agreement (TFA) this year.  
4.66.   In conclusion, Singapore looks forward to deepening bilateral engagement with Tonga, and 
look forward to enhancing collaboration at the WTO. We wish Tonga every success for its second 
TPR. 
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.67.   On behalf of my delegation, I would first like to extend a very warm welcome to the delegation 
of Tonga, led by the Honorable Tatafu Moeaki, Minister of Trade and Economic Development. I wo uld 
also like to express our sincere thanks to the discussant, His Excellency, Ambassador Mikael Anzén 
(Sweden) for his very constructive analysis and in -depth observations.  
 
2 Lord Tu’ivakano paid an official visit to Singapore in April 2014 and met with PM Lee Hsien Loong and 
then-Minister for Environment and Water Resources Grace Fu. He lost the Tong an general election in 
November  2014 and subsequently became the Speaker of the Tongan Parliament.  
3 Tonga is represented in WTO matters by the Permanent Delegation of the Pacific Islands Forum (PIF) in 
Geneva, and by Tonga's High Commission in London.  WT/TPR/W/ 191 • Tonga  
 
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  4.68.   We share similar experiences with Tonga in encountering and overcoming the challen ges 
posed by regular tropical cyclones. Notwithstanding the difficulties, we commend the government of 
Tonga still strives for a recognizable economic performance and has made substantial economic 
progress since its first TPR in 2014. The creation of the T onga Trade Policy Framework (TTPF) and 
its ratification of the Pacific Agreement on Closer Economic Relations Plus (PACER Plus) are both 
noteworthy examples.  
4.69.   We also commend Tonga on its success in carrying out the Tonga Labor Mobility Policy 
Framework wit h a view to optimizing the business environment for outgoing Tongan workers. With 
the levels of participation by women in overseas employment schemes still remaining generally low, 
we are keen to learn more about how the economic participation by Tonga’s w omen will develop in 
the future.  
4.70.   On the bilateral front, in 2019 our two Governments signed the Memorandums of 
Understanding on cooperation in the exchange of financial intelligence relating to money -laundering, 
associated predicate offences, the financing  of terrorism, as well as on the prevention of proliferation 
of weapons of mass destruction. We hope that such cooperation could serve as the basis to enhance 
our bilateral cooperative activities in many other fields.  
4.71.   On the bilateral trade and economic r elations, our economies are of different but mutually 
supplementary nature. We believe that there is potential for a lot more exchanges and expansion. 
In addition, we would also like to identify possible aspects of cooperation under the framework of 
the WT O Aid -for-Trade scheme, and in other fields covered by the WTO.  
4.72.   May I conclude by wishing the Tonga delegation a most successful and fruitful Trade Policy 
Review.  
INDIA  
4.73.   My delegation is pleased to participate in the second Trade Policy Review of Tonga. On  behalf 
of India, I would like to welcome the delegation of Tonga led by H.E. Tatafu Moeaki, Minister of MTED 
and his team for the TPR. We thank H.E. the Minister for his comprehensive opening statement, 
Ambassador H.E. Mr. Mikael Anzén of Sweden, for his insightful observations as a discussant, and 
the Secretariat and the Government of Tonga for the reports prepared for the Review.  
4.74.   We are happy note from the Secretariat’s report that since the last Trade Policy Review of 
Tonga in 2014, Tonga’s economy has grown at a strong pace. We also note the challenges confronted 
by Tonga due to the frequent natural disasters, mainly the Tropical Cyclones and commend the 
resilience of people of Tonga amidst these adversities. We welcome the reforms undertaken by 
Tonga f or modernizing the economy and the steps taken to better integrate with the global trading 
system. We also commend Tonga’s commitment to the multilateral trading system and welcome the 
steps being taken by Tonga to ratify the Trade Facilitation Agreement i n 2021, as well their efforts 
to comply with the notifications obligations at the WTO.  
4.75.   India and Tonga share warm and friendly bilateral relations. Tonga is an important partner 
for India at the Forum for India -Pacific Islands Cooperation (FIPIC) and the International Solar 
Alliance (ISA). We deeply appreciate the support by Tonga for India in various multilateral forums. 
India is an important development partner of Tonga and is undertaking development cooperation 
activities in Tonga through bilateral chan nels as well as through the India -UN Development 
Partnership Fund. India has also provided HADR assistance to Tonga, most recently during the 
aftermath of Tropical Cyclone Gita in 2018.  
4.76.   We appreciate and recognize Tonga's concerns on the need for a develop ment oriented 
multilateral trading system that protects the interest of Small Island Developing States (SIDS) and 
the need for building a disaster resilient trading system. India would continue to support initiatives 
aimed at supporting SIDS, both here at the WTO and other multilateral fora. In the same manner, 
India remains committed to expanding and deepening our bilateral co -operation with Tonga in the 
years ahead.  
4.77.   I wish our friends from Tonga a productive and successful TPR.  WT/TPR/W/ 191 • Tonga  
 
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  JAMAICA  ON BEHALF  OF THE ACP GROUP  
4.78.   At the outset, we wish to extend a warm welcome to the Honourable Tatufa Moeaki, Minister 
of Trade and Economic Development and the members of his delegation to this meeting. We thank 
Tonga, as well as the Secretariat for the very comprehensive and  informative reports provided, 
which form the basis of our deliberations today. In addition, we wish to express our appreciation to 
you, Chair, as well as to the discussant, Ambassador Mikael Anzén of Sweden for your respective 
comments and analysis in rel ation to this important exercise.  
4.79.   Since its last Trade Policy Review in 2014, the Kingdom of Tonga has undertaken significant 
reforms at the institutional level to promote trade and foster development. The ACP Group wishes 
to commend the country in particu lar on the Tonga Trade Policy Framework launched in August 2020 
and which is currently being implemented. The pillars of this framework identify critically important 
dimensions of trade policy such as the promotion of industrial and investment development and 
strengthening trade facilitation.  
4.80.   As an archipelago in the Pacific, trade is vital for the country and the WTO is an essential 
vehicle in helping Tonga meet its economic growth and development objectives. Trade is also vital 
to support recovery from cl imatic disasters and the recent COVID -19 pandemic. Indeed, the tourism 
sector accounts for around 20% of the country’s GDP and the second highest source of foreign 
exchange earnings.  
4.81.   In fact, prior to the outbreak of the COVID -19 pandemic, the trend in th e tourism sector of 
Tonga was on a strong upward trajectory with travel receipts having grown by 14.2% between 2014 
and 2019. Following the outbreak of the pandemic, the Government closed the borders brings 
tourism to a standstill. Despite this significant  challenge, the Group would like to applaud the 
Government of Tonga for taking constructive steps to lay the foundations for a strong recovery 
through training programs to improve the skills of tourism workers and enhancing the sanitary 
standards in touris m sites. Such efforts and steps should be recognized by the WTO Membership, 
especially countries that are major consumers of tourism.  
4.82.   The geographic situation of Tonga underlines the importance of digital trade to overcome 
barriers such as high transporta tion costs. The COVID -19 pandemic further amplified the importance 
of digital trade to maintain linkages with trading partners amidst the generalized lockdowns. 
Acknowledging the significance of digital trade, the Kingdom of Tonga developed a National 
E-commerce Readiness Assessment and a Digital Government Strategic Framework during the 
period of review with a view to promote ambitious goals such as rendering access to mobile and 
wireless connection universal by 2024.  
4.83.   In parallel, we must also salute the effort by the Kingdom of Tonga to embark on a bold path 
to modernize its customs clearances. Tonga has demonstrated commitment and resolve to 
implement the Trade Facilitation agreement in adopting an implementation roadmap. This roadmap 
integrates a perfor mance and monitoring mechanism to see through full implementation of the 
agreement. In addition, Tonga carried out in 2020 a time release study under the aegis of the World 
Customs Organization in order to better undertake necessary reforms.  
4.84.   A concrete ste p to support these efforts is the digitization of the customs process in adopting 
the ASYCUDA World system. This step will deliver significant benefits in reducing red tape in customs 
clearance. Another tangible measure envisage by Tonga is the implementat ion of x -ray scanning 
capability at the main port that will contribute to speeding up customs clearance.  
4.85.   An additional action, in line with simplifying customs clearance, is the implementation of the 
“Authorised Economic Operators” programme in coordinati on with the ministries of agriculture and 
fish that will ease inspections. We must also note that Tonga is in the process of setting up the Tonga 
Trade portal, a platform that will create transparency in terms of import and export conditions.  
4.86.   We would lik e to highlight the resilience of the Kingdom of Tonga, as a small vulnerable 
economy, in the face of the significant climatic challenges, including Tropical Storm Gita which 
caused considerable devastation to the country in 2018. Studies and indicators by the IMF and World 
Bank remind us that Tonga is among the most vulnerable countries in the world due to its exposure 
to cyclones and other types of extreme climatic events.  WT/TPR/W/ 191 • Tonga  
 
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  4.87.   Not only does this impact the Government revenue owing to the significant costs for 
reconstruction in the aftermath of an event, but this also disrupts production activities and trade. 
Tonga’s case is by far not an isolated case since many other ACP countries are also vulnerable due 
to natural disasters – Saint Vincent and The Grenadines a painful case in point.  
4.88.   Thus, we urge WTO Members to identify concrete measures that can support countries such 
as Tonga in building greater economic and trade resilience in the face of climatic challenges.  
4.89.   Finally, we would like to commend Tonga for the progress achieved in ush ering impactful 
reforms such as modernizing customs clearances and we wish Tonga every success in carrying 
through those reforms.  
VANUATU  ON BEHALF  OF THE PACIFIC  GROUP  
4.90.   I make this statement on behalf of the Pacific Group and wish to thank Members for thei r 
interventions and questions in this second Trade Policy Review of Tonga.  
4.91.   Our Group commends Tonga for the presentation of its national trade policy at this Review 
and we have taken note of the responses made today by the Honourable Tatafu Moeaki, Minist er for 
Trade and Economic Development of the Kingdom of Tonga.  
4.92.   As fellow Pacific Group members, we wish to congratulate Tonga again for the new Trade 
Policy Framework 2020 and support the ongoing reforms to improve Tonga’s trade capacity and 
better integra te Tonga into the multilateral trading system as well as the regional trade 
arrangements. We welcome Tonga’s participation in regional initiatives such as the quality 
infrastructure initiative and regional ecommerce initiative that aim to strengthen our tr ade capacity 
and competitiveness. As Members that share common interests and similar challenges, we also look 
forward to working closely with Tonga in the WTO to ensure that WTO rules and facilities are able to 
assist us address our trade challenges and su pport our development efforts.  
4.93.   We note the commitment by Tonga to progress the WTO Trade Facilitation Agreement at 
national level and we support the efforts.  
4.94.   The Pacific Group also reiterates our call for WTO Members and partners to assist Tonga in 
the im plementation of its new Trade Policy Framework and other trade reforms to enable Tonga to 
increase its participation in the global trading system.  
4.95.   We acknowledge Tonga as a valued member of the Pacific WTO Group and express our 
assurance that we will work  together to ensure a successful WTO Ministerial Conference (MC12) this 
year. And assure Tonga that we will continue to actively work with Tonga to conclude a meaningful 
fisheries subsidies agreement by the end of 2021.  
4.96.   In closing, I wish to congratulate Tonga for a successful Trade Policy Review and thank the 
Government of Australia and other partners for its support to this exercise. We also acknowledge 
the input facilitation by the Pacific Islands Forum Secretariat in this exercise.  
MAURITIUS  
4.97.   The Maurit ius delegation warmly welcome the high -level delegation of Tonga led by the 
Honorouble Tatafu Moeaki, Minister of Trade and Economic Development. We thank the Minister for 
the presentation on the state of Tonga's economic and trade policies. The Mauritius delegation also 
thanks the discussant, His Excellency Ambassador Anzén, for his insights, as well as the WTO 
Secretariat for their comprehensive report.  
4.98.   Mauritius is pleased to participate in this Trade Policy Review and commend Tonga for its 
second Trade Policy Review after the first one was successfully undertaken in 2014.  
4.99.   We are appreciative of Tonga’s strong commitment to the multilateral trading system and the 
upholding of its WTO commitments coupled with the efforts being undertaken towards ratifying the 
Trade Facilitation Agreement this current year.  WT/TPR/W/ 191 • Tonga  
 
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  4.100.   Tonga being a Small Island Developing States, like Mauritius, whilst implementing its 
national economic development policies, has had to cope with the disastrous effects of a series of 
tropical cyclones in the recent years. We have in mind particularly the cyclone Gita, which caused 
serious damages to Tonga, affecting up to a third of Tonga’s GDP in year 2018.  
4.101.   This downfall in growth perspectives, is now being compounded with the challenges being 
created  by the COVID Pandemic.  
4.102.   We are aware that Small Island Developing States have lesser reserves, resources, and 
capacities to achieving meaningful resilience to cope with the magnitude of the consequences that 
these current situations, of frequent natural c alamities and the COVID Pandemic are creating.  
4.103.   Mauritius is pleased that the 2019 Voluntary National Review (VNR) of SDG planning and 
progress, for Tonga and helped to align the Tonga Strategic Development Framework (TSDF II) 
2015–25 with the SDGs and also  with the SIDS Accelerated Modalities of Action (SAMOA) Pathway 
2014 
4.104.   Mauritius also commends the launch in August 2020 of the Tonga Trade Policy Framework 
(TTPF), the country's first comprehensive trade strategy, and we look forward toward its 
implementati on which is beginning.  
4.105.   It is in this perspective of continuing to adopt a participative approach in the multilateral 
trading system and continuous engagement in opening of the economy that we value Tonga’s 
endeavours both as a SIDS and as a OACP state.  
4.106.   Whilst agriculture and fisheries exports, especially fresh fish, continue to contribute 
significantly in the export earnings of the country, Tonga remains an NFIDC and thus highlights our 
common appurtenance on those issues at the WTO.  
4.107.   Through the Permanent Delegation of the Pacific Islands Forum we are aware of Tonga’s 
involvement in the build up to the MC12. In this regard, we welcome Tonga’s position in the 
negotiations on Fisheries Subsidies. Mauritius and Tonga believe that reducing the total quantity of  
subsidies is paramount for sustainable stocks and for levelling the playing field for more participation 
of small island states.  
4.108.   Small islands and developing countries should be allowed the necessary flexibilities for 
artisanal fishing, that basic suppor t to local fishermen not be burdened by complicated notification 
and stock assessment requirements.  
4.109.   Importantly, Mauritius together with Tonga reiterate that SIDS should be provided with 
adequate and effective S&D provisions to enable them to support the d evelopment of the fisheries 
sector and we are agreeable to the need for appropriate measures to ensure the sustainable 
development of the fisheries sector. We will work together so that the developmental aspect is not 
be relegated in the negotiations and t hat special and differential treatment are imbedded in any 
agreement.  
4.110.   In addition to fisheries, we take good note of the involvement of Tonga, through the 
Delegation of the Pacific Islands Forum in the Joint Statement Initiatives (JSIs) particularly on 
e-commerce and micro, small and medium enterprises (MSMEs).  
4.111.   We would also like to highlight Tonga’s support regarding the joint statement on agriculture 
export prohibitions or restrictions relating to the World Food Programme.  
4.112.   Mauritius is also happy to be with Tonga to be constructive engaging with other Members to 
explore all current concerns and possible solutions relating to reform of the WTO.  
4.113.   To conclude, Mauritius wishes a successful Review to the delegation of Tonga.  
  WT/TPR/W/ 191 • Tonga  
 
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  REPUBLIC  OF KOREA  
4.114.   I would like to join other speakers in welcoming His Excellency, Tatafu Moeaki, Minister of 
Trade and Economic Development and his delegation to the Second Trade Policy Review of the 
Kingdom of Tonga. I also thank Ambassador Anzén for his role as discussant and the Secretariat for 
its very comprehensive report.  
4.115.   For a country that is as dependent on tourism and the service sector as Tonga, it goes 
without saying that the economic fallout of the COVID -19 pandemic has been severe. What is all  the 
more disheartening is that in the case of Tonga, the pandemic came against the backdrop of a 
succession of devastating tropical cyclones. Indeed, the pre -COVID challenges that Tonga faced as 
a small island developing state have been put into stark rel ief by the fact that the ratio of its 
climate -related losses to GDP is among the highest in the world.  
4.116.   Notwithstanding these tremendous challenges, Tonga has shown sturdy resilience and my 
delegation commends its continued commitment to the multilateral t rading system. We welcome, in 
particular, its efforts to further integrate itself regionally through ratification of PACER Plus in 2020 
and to ratify the WTO Trade Facilitation Agreement this year. The latter will surely help facilitate 
trade with a countr y like Korea, which is Tonga’s top 5 merchandise export destination. Korea is 
pleased to play a modest part in supporting Tonga’s customs administration modernization. We also 
welcome its accession to the UN Convention Against Corruption. The enhanced tran sparency and 
accountability will unquestionably bring lasting benefits to its economy as a whole.  
4.117.   The Korean delegation is fully cognizant of the limited resources that Tonga could bring to 
bear in Geneva. We note that Tonga is already keenly engaged in th e fisheries subsidies negotiations 
and is following the JSIs on E -commerce and MSMEs. We would nonetheless encourage Tonga to 
consider looking at some other ongoing Structured Discussions which would redound to the interests 
of Small Island Developing Stat es as well. Indeed, we are pleased to hear Minister Moeaki making 
careful note of the recently launched Trade and Environmental Sustainability Structured Discussions, 
which does have particular relevance for countries with unique climate -related vulnerabil ities. In 
addition, a number of Small Island Developing States including those which, like Tonga, have very 
limited investment agreement networks, have also been seeing value in the potential investment 
facilitation agreement being discussed by more than 1 00 WTO Members. Indeed, investment 
facilitation aligns well with a strategic concept outlined in the Tonga Strategic Development 
Framework (TSDF) 2015 -2025: that is, seeking to provide clear and transparent rules, regulations, 
incentives, and information t hat encourage both foreign and domestic investment.   
4.118.   Thank you and we wish the Kingdom of Tonga a successful Second TPR.  
  WT/TPR/W/ 191 • Tonga  
 
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  5  REPLIES BY THE REPRESENTATIVE OF TONGA AND ADDITIONAL COMMENTS  
5.1.  Thank you, Madam Chair, for your excellent management of our sessions. And we also wish to 
extend our thanks to you Ambassador Mikael Anzén, as discussant to the review. I appreciate the 
interest Members have shared in the challenges that Tonga encounters,  the opportunities for Tonga 
and the constructive feedback we have received regarding ways that trade policy, and engagement 
with the WTO can be of assistance.   
5.2.  You have all received our written responses to the questions posed. I will briefly comment on 
common themes and respond to some specific issues raised during the first meeting on Wednesday.  
5.3.  First, we welcome the encouragement received from many delegations to prioritize the 
ratification and the implementation of the Trade Facilitation Agreement. I can confirm that we remain 
on track to completing ratification of the TFA in 2021, as noted in the Secretariat report, and we 
very much look forward to presenting our instrument of acceptance to the WTO.  
5.4.  Second, whilst Tonga remains COVID -19 free to date, the impact on businesses reported by 
ILO independent survey has been substantial. At least 50% of the surveyed businesses were 
affected, 35% partially affected and 15% had been forced to close and not operating. Those that 
remained open saw activity plunge  as demand lower than normal, and cash flow to maintain staff 
and operations inadequate. The border close and restrictions to air cargo trade and shipping delays 
are not helpful. The direct effects on our tourism industry are very clear which saw a starkly  87% 
decline in visitors' arrivals, affecting our tourist operators significantly including the supply chains.   
5.5.  Tonga's GDP is estimated to fall by around 3% in FY2020 and contract at a higher rate of over 
6% in FY2021. The critical assumption to determin e the extent of the recession is around the depth 
and timing of the border remaining closed in Tonga because of the COVID -19 pandemic.  
5.6.  For an important export sector such as fresh fish experienced a drastic decline in exports of 
84%, which relies on a comp lex, high -dependency supply chain, has also been adversely affected 
due to many restrictions in export markets. This is an area in which our partners can play an 
important role, not just with financial and technical support to keep firms afloat, but by adv ocating 
for the needs of our exporters within their own government systems, so that emergency trade 
barriers reduces the harm inflicted than strictly necessary to international suppliers.  
5.7.  The Government of Tonga launched a USD 60 million stimulus package s ince June 2020 which 
provided some assistance over the last 10 months whilst at the same time, the Government is 
proposing a budget the 1st of July 2021, a recovery plan for a time when the border re -opens.  
5.8.  We appreciate the comments regarding the importan ce of mobilizing climate finance, and the 
view that sustained, in -country technical expertise is a crucial requirement for securing and 
structuring finance for climate projects. The Government has prepared since 2020, following an IMF 
Climate Change Policy  Assessment, a Climate Disaster Resilient development strategy and 
investment plan based on assessments pertaining to hazard, exposure, vulnerability and risk. The 
outcome will better inform Government's Infrastructure Investment Planning and financing dur ing 
the course of 2021, and that will require planning for the long term, tail risks and transformational 
responses reflecting the scale of the risks to Tonga.  
5.9.  We note a number of comments and questions relating to the labour mobility schemes that 
Tonga hi ghlighted in our Government report. The launch of a Labour Mobility Policy Framework is 
an important step to reflect on the long -term initiatives that we need to implement to gain the 
greatest benefit from these schemes and to reduce their risks — but it i s also true that the Global 
Pandemic has temporarily shortened our planning horizon. We agree that the early re -opening of 
labour mobility schemes has been very helpful to soften the economic damage resulting from the 
pandemic and we welcome the initiative s for example, Australia has continued chartering selected 
flights to ensure continuation of our workers’ access to Australia. We look forward to bringing the 
same strategy to our tourism sector, and we will continue to work closely with our most important  
tourism markets to get to the point where we can welcome international visitors under controlled 
circumstances as soon as it is safe to do so.  WT/TPR/W/ 191 • Tonga  
 
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  5.10.   We recognize questions posed by Members on gender imbalance as it relates to our 
participation in existing labou r mobility schemes. Gender parity is yet to be achieved in the low -skill 
or semi -skilled sectors that are supplied through labour mobility schemes.  
5.11.   Progress towards gender equality and equity is guided by the National Women's 
Empowerment and Gender Equali ty Tonga Policy 2019, with each ministry responsible for 
progressing gender equality in their sector. There are implementation constraints, including lack of 
data and strong evidence base to guide policy interventions, lack of knowledge about gender 
relations across government, limited resources, and limited implementation capacity. The social and 
economic impact of COVID -19 containment since March 2020 is likely to negatively impact progress 
against these frameworks.  
5.12.   Despite the unequal participation rates , the Government has supported women to be better 
involved in trade, this includes construction of a hall for a women association (membership of 100+) 
involved in making of tapa cloth to readily trade with overseas diaspora which generates an average 
of 10,000 pa'anga in income and women community projects to engage in the growing of high value 
niche vegetables and floriculture for export.  
5.13.   In my recent statement, I highlighted Tonga's struggle with non -communicable diseases, and 
our efforts to use trade policy as part of a range of tools to address this. I took note of some 
Members' curiosity regarding the outcome of these measures. I would like to acknowledge the World 
Bank scientific approach (supported by Australia, New Zealand and Japan), which has provided us 
with sufficient evidence base for policy decisions. The World Bank study concluded that our success 
in using trade policy to encou rage consumers to switch to healthier food has been mixed. Our policy 
has been successful in reducing consumption of some targeted foods, including turkey tails and 
mutton flaps to name a few.  
5.14.   At the same time, there has been difficulty in ensuring cheap a nd healthy alternatives are 
available. A tax exemption on imported fruits failed to lead to a fall in price, so traders benefitted 
rather than consumers. Fresh fish is a desirable and healthy source of protein but remains more 
expensive than imported meats  that are higher in salt and fat, and it remains out of the reach of 
low-income households. In general, healthy foods remain expensive and hard to obtain. This 
reinforces our view that trade policy will form part of the solution but must be used alongside other 
measures. The nutrient profile model report has been approved by the Government of Tonga which 
is scientific based to review existing excise policies on food.  
5.15.   The Government is now finalizing the Foreign Investment Regulations based on the Foreign 
Investment Act 2020. The main contention focusses on the Government's intention to reduce both 
restricted and reserved activities exclusively for Tonga in order to contribute to national goals to 
increase domestic production, access to foreign capital and t echnology.  
5.16.   E-commerce opportunities build on increased access, availability, and affordability that the 
Government has achieved significant progress, and currently addressing the required infrastructure 
that allows sellers to transact businesses with buye rs. The Government can build on the increasing 
social acceptance and awareness of the capacity of our access to affordable high -speed broadband 
provides.  
5.17.   Our IP, WIPO and related commercial laws including the manner enforceable agreements are 
structured, r ights are protected as raised to some extent, are not yet appreciated by the local 
Government because they are more a problem for foreign investors. Our lack of understanding and 
familiarity of how important they are for business, to be sound and safeguard ed thus the importance 
of this Trade Policy Review by the WTO so that we are on track when we are not.  
5.18.   I would like to thank the Members that acknowledged the constraints faced by small island 
developing States, including the challenges that we face in act ively participating in the WTO agenda 
and our distinct technical assistance requirements relating to a wide range of trade issues. It is 
encouraging to hear that other Members have shown sensitivity to these issues in the process of 
negotiating a Fisheries  Subsidies Agreement, and I very much hope that this continues.  
5.19.   The Tonga customs assessment methodology is based on a matrix of risk indicators. Other 
risk indicators that may be applied in addition to the import's and custom's broker's characteristics, WT/TPR/W/ 191 • Tonga  
 
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  prior record and consignment's nature and origin include the Country of Export details; Supplier 
prior record; Shipment document number details; Mode of transportation; and Discrepancies in 
information supplied with import/export declarations. Apart from th ese specific indicators, the 
automated system may also be set to randomly select consignments for either documentary or 
physical checks.   
5.20.   I was interested by the encouragement that a number of Members have offered for Tonga to 
follow particular joint stat ement initiatives more closely, particularly those relating to E -Commerce, 
Investment Facilitation for Development, and Trade and the Environment. The reasons put forward 
that these initiatives have a lot to offer to Tonga are compelling, and we would cert ainly be more 
involved in all three if it was not for our resource constraints. If we are not able to participate actively 
in their negotiations, then we will certainly examine the outputs that they yield and give careful 
consideration to whether they woul d benefit Tonga.  
5.21.   In conclusion, I would like to extend again our thanks to the Members for their questions, 
comments and attention during this Review, and may I again thank Your Excellency for your able 
leadership through this process, and also Ambassador Anzén for his role and, more importantly, his 
obvious links to Tonga. I thank the thoughtful comments and the staff of the Secretariat for the hard 
work that has made this Review possible. I thank you.  
DISCUSSANT  
5.22.   As I said in my introductory remarks, I've learned a lot about Tonga during this second Trade 
Policy Review and I very much appreciated the broad engagement by many Members.  
5.23.   It also struck me that most of the comments and questions raised, have been more or less 
around the same themes and issues.  
5.24.   First of all – although or maybe because of, Tonga being a small island economy – it is a 
rather open and trade dependent country.  
5.25.   One question we all should ask is how a small island of only 104 000 inhabitants, in the middle 
of the Pacific, can beat many other, much bigger and more influential countries, in the World Bank 
"Doing Business" index? Tonga 103rd of 190 economies in their 2020 survey.  
5.26.   My reading is two -fold: that this small island is doing a lot of things right, but also that there 
are some roo m for improvements. I think this Trade Policy Review could help policy makers to move 
up this ladder if they are committed to do so.  
5.27.   We heard Minister Moeaki very articulated describing many of the challenges Tonga, and I 
would say many other small island  States, encounter. I think that other countries do help islands 
States to recover after a Tropical Cyclone that has passed. But I've also learned from other UN 
agencies in this town, that one thing is the acute help after a catastrophe – another thing is the 
long-term restructuring after disasters. When we talk about long term, I think the international 
trading system and the WTO have an important and concrete role to play.  
5.28.   Minister Moeaki also highlighted challenges to improve the growth potential. As wit h other 
countries relying substantially on labour mobility and international remittances, I see somewhat a 
conflict of interest between getting the remittances, but also the need of keeping skilled people in 
Tonga to stimulate innovations and help creating  a domestic labour market.  
5.29.   Minister Moeaki also referred to the fibre optic submarine cable that was installed in 2013 and 
increased the accessibility and lowered the price for internet services. At the same time, the 
Secretariat reports that "business an d household deployment of optical fibre has so far been limited", 
and as I noted in my remarks in the first day: "I would have assumed that Tonga had a more 
developed e -commerce regime and more companies involved in both e -commerce but also other it 
relate d services sectors". If you allow me to, one more time, compare to my home country Sweden, 
where I see substantial growth and trade in the IT sector. So, if I were to develop something in 
Tonga, I see a big potential here and we also heard about important initiatives such as the National 
E-commerce Readiness Assessment, as well as the Digital Strategic Framework.  WT/TPR/W/ 191 • Tonga  
 
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  5.30.   Concerning tourism services, I noted some differences in the size and importance of this 
sector between the Minister's intervention and the Secre tariat report. Nevertheless, we can all agree 
that during countries lockdowns and travel restrictions, tourism was almost depleted. Now we must 
all help in rebuilding a sustainable tourism, contributing to islands like Tonga's economic recovery. 
In my prep arations for my next trip to Tonga I checked up 10 things to know about before I go 
there, and one advice which I also could add to the recommendations is that "Credit cards won't get 
you far", you need cash. In 2021, I believe credit cards or e -payments m ust be available almost 
anywhere.  
5.31.   The Minister also highlighted the importance of the fishing sector as the country's biggest 
exports and welcomed a meaningful result of the fish subsidies negotiation for their own 
development. This is an important message  to all of us from a country so dependent on this sector.  
5.32.   Minister Moeaki acknowledged Tonga's vulnerability to climate change, which the Tropical 
Storms are a first -hand indicator of. Comments and recommendations from other Members were to 
encourage Tong a to engage in the Structural Discussions on Trade and Environmental Sustainability. 
But I also heard recommendations to engage in many of the Joint Statement Initiatives, such as 
e-commerce, investment facilitation and MSMES. As a gender champion myself, I'm glad to note 
that Tonga already participates in the Informal Working Group on Trade and Gender as the second 
phase of the initiative, the Joint Declaration on Trade and Women's Economic Empowerment, that 
was launched at the Ministerial Conference in Bu enos Aires in 2017.  
Comments from Members  
5.33.   If I would pick up two issues that Members raised in their questions and interventions, it was: 
first, the need for Tonga to implement the TFA -agreement. As one Member commented and that the 
Secretariat also high lighted in their report, one fifth of all imports are subject to physical checks, 
which in my ears sounds like a very large proportion with the risk of delays and burdensome customs 
procedures as a consequence.  
5.34.   The second issue I noted was an interest to learn more about the long term or the global 
consequences for Tonga of the COVID crisis. We are still in the crisis but the next to come is how a 
small island like Tonga will build back and how to do it sustainable.  
5.35.   A final remark from my side is that sear ching for more information and relations between 
Tonga and Sweden, I found the Instagram account with Tonga Ski team, where Kasete -Naufahu 
Skeen, been practicing in the Swedish mountains to participate in the World Cup in Åre in 2019. As 
Sweden will arrang e the WTO Ski Race in 2022, I hope to see Tonga and Kasete there as a VIP 
guest.  
5.36.   Chair, I thank you very much and wish Tonga much of luck for their Trade Policy Review.  
NEW  ZEALAND  
5.37.   I just wanted to quickly thank Minister Moeaki and his team from Nuku'alofa for their 
dedication and commitment to this Review, not only in the meetings bu t also in the preparation and 
conduct of the documentation, and I hope, as Minister Moeaki said, this will be of great assistance 
to Tonga as they move forward with further implementation of policy in the areas that he identified.  
5.38.   I, too, was noticing the sacrifice that the Minister and his team were making, it looked like 
close on 10 pm on Friday night if the clock on the wall was correct. And the only other thing I would 
say is, to Ambassador Anzén, I would be very cautious before stepping on the rugby fi eld with Tonga. 
They are formidable opposition.  
VANUATU  ON BEHALF  OF THE PACIFIC  GROUP  
5.39.   I wish to thank Members for their interventions and questions in the second Trade Policy 
Review for Tonga.  WT/TPR/W/ 191 • Tonga  
 
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  5.40.   The Pacific Group commends Tonga for the presentation of its national trade policy review, 
and we have taken note of the responses made today by the Hon. Moeaki, Minister for Trade and 
Economic Development of Tonga.  
5.41.   As fellow Pacific Group Members, we wish to congratulate Tonga again for its Trade Policy 
Framework 2 020 and support the ongoing reforms to improve Tonga’s trade capacity and better 
integrate Tonga into the multilateral trading system, as well as the recent trade arrangements.  
5.42.   We welcome Tonga’s participation in recent initiatives such as the Quality Inf rastructure 
Initiative and the regional e -commerce initiative that aims to strengthen our trade capacity and 
competitiveness.  
5.43.   As Members that share common interests and similar challenges, we also look forward to 
working closely with Tonga in the WTO to en sure that WTO rules and facilities are able to assist us 
address our trade challenges and support our development efforts.  
5.44.   We note the commitment by Tonga to progress the WTO Trade Facilitation Agreement at 
national level, and we support the efforts.  
5.45.   The P acific Group also reiterates our call for WTO Members and partners to assist Tonga in 
the implementation of its new Trade Policy Framework and other trade reforms to enable Tonga to 
increase its participation in the global trading system.  
5.46.   We acknowledge To nga as a valued Member of the Pacific WTO Group, and express our 
assurance that we will work together to ensure a successful WTO Ministerial Conference MC12 this 
year. And we welcome Tonga’s active participation in the fisheries negotiations which we hope we 
can conclude a meaningful agreement by the end of the year.  
5.47.   In closing, I wish to congratulate Tonga for a successful Trade Policy Review. I thank our 
different partners such as Australia and New Zealand for the support and I also wish to acknowledge 
the assurance from the Secretariat to assist in the exercise to support Tonga.  
  WT/TPR/W/ 191 • Tonga  
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON  
6.1.  Despite the COVID -19-related constraints, the second Trade Policy Review of Tonga has offered 
us a good opportunity to deepen our understanding of recent developments in, and challenges to, 
its trade, economic, and investment policies. Since its first TPR in 2014, Tonga's initiatives to 
maintain its participation in the Multilateral Trading System and take advantage of the opportunities 
it offers have been greatly appreciated. Indeed, the 84 advance written questions submitted by 
8 Members and the 15 delega tions that took the floor during the first and second day underline the 
importance attached by Members to Tonga's trade and investment policies and practices.  
6.2.  I would also like to thank Tonga's delegation, led by the Hon.  Tatafu Moeaki Minister for Trade 
and Economic Development, for its active participation in this exercise. Also, I would like to thank 
our discussant H.E. Ambassador Mikael  Anzén, Permanent Representative of Sweden to the WTO, 
for his insightful remarks, and all the delegations that took t he floor for their valuable contributions 
to this Review.  
6.3.  Members acknowledged Tonga's position among the most vulnerable countries in the world 
due to its exposure to natural hazards and the effects of climate change. Indeed, natural disasters, 
such as T ropical Cyclone Gita in 2018, the measles outbreak in 2019, and Tropical Cyclone Harold 
in 2020, remain a serious economic development risk and recurrently test Tonga's ability to respond 
and recover. Tonga also continues to face socio -economic challenges associated with a high level of 
non-communicable diseases. Tonga's progress and efforts to support economic growth during the 
review period were generally praised.  
6.4.  Members also commended Tonga's COVID -19-free status but noted that the pandemic -induced 
economic downturn was inevitable amid generalized lockdowns  and the suspension of international 
tourism, which had knock -on effects on the broader economy.  
6.5.  Members praised Tonga's tax reform, improvement of finance management, the modernization 
of the moneta ry policy and macroeconomic framework as well as its private sector development 
strategy and the establishment of its first trade policy framework. Furthermore, they commended 
its efforts to improve the investment climate and policy initiatives such as the  Tonga Labor Mobility 
Policy Framework, the National E -commerce Readiness Assessment and a Digital Government 
Strategic Framework, as well as institutional reforms to promote trade and foster development.  
6.6.  Tonga was commended for the steps taken to increas e transparency in its trade policymaking 
and legislative process as well as to improve governance including its accession to the 2003 United 
Nations Convention Against Corruption. Members encouraged Tonga to pursue trade and investment 
policies that promot e economic recovery and equitable growth.  
6.7.  Members praised Tonga's commitment to a rules -based multilateral trading system despite the 
lack of a Permanent Representation in Geneva. They recognized Tonga's interest in a more disaster 
resilient and developme nt-oriented multilateral trading system that protects Small Island Developing 
States' (SIDS) interests. While welcoming Tonga's work in implementing its WTO obligations that 
would help maximize the benefits of WTO membership, Members encouraged Tonga to pr omptly 
complete its internal legislative process for ratification of the WTO Trade Facilitation Agreement 
(TFA) and to address its outstanding notifications. They welcomed Tonga's continuous interest in the 
fishery subsidies negotiations and highlighted th e benefits of also engaging in the ongoing 
negotiations on investment facilitation.  
6.8.  While Tonga's support of the Buenos  Aires Declaration on Women and Trade and its role as a 
co-sponsor of the Joint Statement on Export Prohibitions or Restrictions Relating to the World Food 
Programme were praised, Members encouraged it to consider participating in other Joint Statement 
Initiatives (JSI) discussions, notably on E -Commerce. Members commended Tonga's continued 
efforts to deepen regional ec onomic integration, in particular its leadership role as depositary of, 
and prompt ratification of the Pacific Agreement on Closer Economic Relations (PACER) Plus FTA, 
that would help further integrate Tonga into the global economy.  
6.9.  Tonga's initiatives to  modernize and accelerate its customs clearance procedures were praised. 
Information on customs enforcement efforts and plans to join certain international intellectual 
property treaties was sought. Tonga was encouraged to ensure that the agricultural and fisheries WT/TPR/W/ 191 • Tonga  
 
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  sectors had high quality infrastructure and accompanying policies. Tonga was congratulated on its 
efforts to reduce dependency on fossil fuels. Information on the Tourism Crisis Response and 
Recovery Plan was requested.  
6.10.   The above points are some  of the key issues that had emerged in our discussion. I hope that 
the Tongan delegation will consider and further reflect on these issues and on the many constructive 
comments, both broad and detailed, that it has received during this Review. Members look  forward 
to receiving the answers from Tonga to any outstanding questions within one  month, at which point 
the Review will be successfully concluded.  
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