WT/L/1046  
 
29 November 2018  
(18-7559) Page: 1/3 
General Council  
12-13 December 2018  Original: English  
 
 
UNITED STATES – FORM ER TRUST TERRITORY O F THE PACIFIC ISLAND S  
REPORT OF THE GOVERN MENT OF THE UNITED S TATES FOR THE YEAR 2 017 
UNDER THE DECISION O F 7 DECEMBER 20161 
The following communication, dated  27 November 2018,  is being circulated at the request of the 
Delegation of the United States.  
 
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1  INTRODUCTION  
1.1.  On 7 December 2016 , the United States was granted a renewal of the waiver2 from its 
obligations under paragraph 1 of Article I of the GATT 1994 to t he extent necessary to permit the 
United  States Government to provide preferential treatment for eligible imports into the United 
States from the Republic of the Marshall Islands, the Federated States of Micronesia, the Republic 
of Palau, and the Commonwea lth of the Northern Mariana Islands, all formerly part of the Trust 
Territory of the Pacific Islands (TTPI).3 This waiver expires  31 December 20 26. 
1.2.  Under the terms of this waiver, the United States is required to submit to the General Council 
an annual rep ort on the implementation of the trade -related provisions of the programme with a 
view to facilitating the annual review provided for in paragraph 4 of Ar ticle IX of the WTO Agreement. 
This report covers the calendar year 201 7 and trade data has been provi ded for that calendar year, 
the most recent year for which full -year data is available.  
2  PREFERENTIAL TREATME NT FOR THE FORMER TR UST TERRITORY OF THE  PACIFIC 
ISLANDS  
2.1.  In 1986, the entry into force of the Covenant establishing the Commonwealth of the Northern  
Mariana Islands, the Compacts of Free Association with the United States for the Republic of the 
Marshall Islands, the Federated States of Micronesia, and , in 1994 , of the Compact of Free 
Association with the United States for the Republic of Palau, termi nated the Trusteeship of the Pacific 
Islands , established on 2 April 1947. US law provides for the extension of the preferential trade 
treatment to these entities which were granted  these islands under the TTPI. These preferences are 
similar to historical preferences the United States provides the US Virgin Islands, Guam and 
American Samoa, which were US possessions on 1 July 1939, and which are included in Annex D to 
Article I of the GATT  1994. The primary purpose of this preference system has been to prom ote the 
expansion of trade and the economic development of the beneficiaries in a manner consistent with 
the objectives of the GATT and with the trade, financial and development needs of the beneficiary 
countries.  
                                                
1 WT/L/ 1000. 
2 WT/L/18 3. 
3 These four entities formerly comprised the three geographic island groups known as the Marshall, 
Caroline, and Mariana Islands, which are located in the western Pacific Ocean region around Guam  known as 
Micronesia.  With the expiration in 1986 of the U.N. -mandated TTPI which was administered by the United States 
for approximately 40 years, these islands formed into four political entities, three independent nations (Republic 
of the Marshall Isla nds, Federated Stated of Micronesia, and Republic of Palau), and one commonwealth in 
political union with the United States (Commonwealth of the Northern Mariana Islands).   WT/L/1046  
 
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  2.2.  Under General Notes 3(a)(iv) and 10 of the  Harmonized Tariff Schedule of the United States, 
duty-free treatment is accorded to all products of the for mer TTPI, with some exceptions. Certain 
fishery products are subject to quantity limitations, while watches  and watch movements, and  
buttons, certai n textile, apparel, footwear and luggage products are subject to duty in s ome or all 
of the former TTPI. Duty-free treatment is only accorded to the in -quota quantity of the agricultural 
products s ubject to a tariff -rate quota.  
3  PERFORMANCE  
3.1.  A very small vol ume of production and trade is involved in this program.  Taken together, 
US imports from the Republic of the Marshall Islands, the Republic of Palau, the Federated States of 
Micronesia, and the Commonwealth of the Northern Mariana Islands in 201 7 total ab out 
US$39.7  million.  
3.2.  From 2016 to 2017, t otal US imports from the former TTPI decreased by about 7 per cent , 
from approximately $42.5  million to approximately $39.7 million. During the past year, US imports 
from the Federated States of Micronesia and the C ommonwealth of the Northern Mariana Islands  
increased substantially, while US imports from the remaining beneficiaries decreased .   
3.3.  The Republic of the Marshall Islands was the largest exp orter, responsible for approximately 
89.5 per cent  of total exports to the United States  from the former TTPI in 2017. The Commonwealth 
of the Northern Mariana  Islands  and the Federated States of Micronesia  were the next largest 
exporters in 201 7, followed by the  Republic of Palau . The following table pro vides summary 
information on US imports from the former TTPI for 2008 -2017. 
 
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  WT/L/1046  
 
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TABLE 1  
US IMPORTS FOR CONSUMP TION FROM THE FORMER  TRUST TERRITORY OF THE P ACIFIC ISLANDS, 2008 -2017 
 
Source  2008  2009  2010  2011  2012  2013  2014  2015  2016  2017  
 (1,000 dollars ) 
Republic of the Marshall Islands  20,156 13,648 11,820  14,939  18,947  16,966  14,481  29,067  39,347  35,531  
Federal States of Micronesia  3,552  2,918  4,218  1,602  904 1,787  412 713 536 921 
Republic of Palau  1,138  80 148 210 455 350 555 545 1,067  574 
Commonwealth of the Northern Mariana 
Islands  105,299  5,959  1,163  627 1,581 923 900 1,804  1,545  2,672  
Total  130,146 22,60 5 17,349  17,37 8 21,887  20,025  16,348  32,129  42,494  39,698  
 
Note:  Due to rounding, figures may not add to totals given.  
Source:  Compiled from official statistics of the US Department of Commerce.  
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