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Trade Policy Review Body    
 
 BRUNEI DARUSSALAM  
DRAFT MINUTES OF THE MEETING* HELD ON 10 AND 12 FEBRUARY 2015 
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 17 March 2015. 
 
Organe d'examen des politiques commerciales 
 
BRUNÉI DARUSSALAM  
PROJET DE COMPTE RENDU DE LA RÉUNION* TENUE LES 10 ET 12 FÉVRIER 2015 
Les délégations sont invitées à soumettre leurs éventuelles corrections factuelles concernant leurs 
propres déclarations au Secrétariat (Mme Barbara Blanquart: barbara.blanquart@wto.org , ou 
tprd@wto.org ) le 17 mars 2015 au plus tard. 
 
Órgano de Examen de las Políticas Comerciales 
 
BRUNEI DARUSSALAM  
PROYECTO DE ACTA DE LA REUNIÓN* CELEBRADA LOS DÍAS 10 Y 12 DE FEBRERO DE 2015 
Las delegaciones pueden enviar a la Secretaría (Sra. Barbara Blanquart: 
barbara.blanquart@wto.org , o tprd@wto.org ) a más tardar el 17 de marzo de 2015 las 
correcciones fácticas que deseen introducir en sus propias declaraciones. 
 
 
_______________ 
 
                                               
* In Original language only/En langue originale seulement/En el idioma original solamente. WT/TPR/W/77 • Brunei Darussalam 
 
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  TRADE POLICY REVIEW 
BRUNEI DARUSSALAM  
DRAFT MINUTES OF THE MEETING 
Chairperson: H.E. Mrs. Mariam MD Salleh 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 3  
2  OPENING STATEMENT BY THE REPRES ENTATIVE OF BRUNEI DARUSSALAM ................ 5  
3  STATEMENT BY THE DISCUSSANT ................................................................................ 9  
4  STATEMENTS BY MEMBERS ........................................................................................ 12  
5  REPLIES BY THE REPRESENTATIVE OF BRUNEI DARUSSALAM AND 
ADDITIONAL COMMENTS ............................................................................................... 26  
6  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 30  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Brunei Darussalam are reproduced in document WT/TPR/M/309/Add.1 and will be 
available online at http://www.wto.org/ english/tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/W/77 • Brunei Darussalam 
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The third Trade Policy Review of Brunei Darussalam was held on 10 and 12 February 2015. 
The Chairperson H.E. Mrs Mariam MD Salleh (Malaysia) welcomed the delegation of Brunei Darussalam headed by H.E. Dato Paduka Lim Jock  Hoi, Permanent Secretary of the Ministry of 
Foreign Affairs and Trade; the rest of the de legation, including H.E. Ambassador Dato Mahdi 
Rahman, Permanent Representative of Brunei Daru ssalam to the WTO; other colleagues from the 
mission in Geneva; and the discussant, H.E. Mr. Haluk Ilicak (Turkey). 
1.2.  The Chairperson recalled the purpose of th e Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Brunei Darussalam was contained in document WT/TPR/G/309 and that of the WT O Secretariat in WT/TPR/S/309. 
1.3.  Brunei Darussalam had opted for the alternative timeline. Questions by the following 
delegations had been submitted in writing at least four weeks in advance and had been 
transmitted to the delegation of Brunei Darussalam: Australia; Malaysia; China; Canada; Thailand; Peru; Singapore; Brazil and Chinese Taipei. The fo llowing delegations submitted written questions 
after the four-week deadline: the European Union; and the United States. 
1.4.  Since its last review in 2008 and despite facing a difficult global economic environment, 
Brunei had further liberalized its trade regime and stepped up efforts to deepen its integration into 
the world economy. In fact, both the Secretaria t and the Government reports pointed out that 
Brunei reduced its applied MFN tariff from an average of 4.8% in 2007 to 1.7% in 2014. Other reforms undertaken by Brunei to foster trade included modernizing its customs procedures; simplifying the tariff structure; and strengthening the legal framework in areas such as business 
environment, TBT, government procurement, and in tellectual property. Additional legislation on 
standards and competition was being drafted. The need for reforms in some of these areas had been raised in the last review, so the Chairperson was sure that Members would want to learn 
more about these reforms and assess their implication on trade. 
1.5.  At the same time, judging from Members' advance questions, it was clear that challenges 
remained for Brunei. The Chairperson drew attention to some areas where Members were 
interested in having more clarity as to the way forward. These included, inter alia , Brunei's plans 
to further liberalize its investment regime and make FDI policies more transparent, particularly with respect to limits on foreign equity participation, partnership requirements, and the identification of sectors in which FDI was restrict ed. Members also liked to know the rationale for 
increasing, during the review period, the number of products subjected to excise duties, as well as 
the number of goods subjected to price controls. 
1.6.  Brunei Darussalam had been very active ne gotiating regional trade agreements (RTAs), five 
of which had entered into force during the review period: four in the context of ASEAN, and one 
bilateral arrangement with Japan. Some questions had been raised about possible overlaps in some of these agreements and on whether this emphasis on regionalism detracted Brunei's efforts 
to further liberalize its trade regime on a multilateral basis.  
1.7.  In services, it was recalled that, because Brunei had liberalized the sector through both 
domestic reforms and RTAs, a gap existed between  its GATS commitments and its applied regime 
which was more liberal. In telecommunications, a complete review of the regulatory framework 
was being undertaken so as to have a single re gulator for telecoms and broadcasting. Also, a 
Telecommunications and Broadcasting Competition Code together with new Tariff Regulation Code of Practice were expected to be introduced soon . The Chairperson was sure Members were keen to 
know more about these issues.  
1.8.  Finally, in the macroeconomic area, some questions had been raised about Brunei's recent 
economic performance, its plans to diversify it s economy away from oil and gas and enhanced 
private sector participation which remained limited,  and to distribute more broadly the benefits of 
its abundant natural resources. 
1.9.  Members wished to ask other issues as well. Overall, considering that Brunei had further 
liberalized its trade regime and its by and large successful strategy to consolidate its role in WT/TPR/W/77 • Brunei Darussalam 
 
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  international trade, this review could offer useful insights on how other developing countries could 
seek to better integrate into global trade flows of goods and services.  
1.10.  The Chairperson closed her introductory remarks by wishing Brunei Darussalam a very 
successful third Trade Policy Review. She looked fo rward to its active engagement in this TPR. 
1.11.  She also informed that a podcast would be made of this TPRB meeting. WT/TPR/W/77 • Brunei Darussalam 
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF BRUNEI DARUSSALAM (H.E. DATO 
PADUKA LIM JOCK HOI) 
Introduction 2.1.  Madam Chair, Her Excellency Mariam Sall eh; our distinguished discussant, His Excellency 
Haluk Ilicak from the Republic of Turkey; Excellencies; Members of the Trade Policy Review Body; 
Ladies and Gentlemen.  
2.2.  Please allow me to briefly introduce th e members of my delegation that includes our 
Permanent Representative, His Excellency Dato Mahdi Rahman; members from the Mission and my 
colleagues from the Ministry of Foreign Affairs and Trade.  
2.3.  It gives me great honour to be here and address you on behalf of the Government Brunei 
Darussalam on the occasion of our third Trade Policy Review.  
2.4.  To begin, I would like to take this o pportunity to commend the Secretariat particularly 
Mr. Ricardo Barba-Viniegra and Mrs Stéphanie Dorange who have devoted a lot of time and effort to produce such a comprehensive and on the wh ole fair report leading up to this review. 
2.5.  No doubt the Trade Policy Review is a very  useful exercise in transparency, it has also 
contributed to a clearer understanding of our economic and trade policies.  
2.6.  Let me also thank fellow Members for th eir written questions and comments that were put 
forward to us. For the questions that were submitted quite recently, we shall try our best to 
respond to all of them as far as possible in the required timeframe.  
Policy Outlook  2.7.  Since our last review in 2008, Brunei has always remained a relatively open economy 
supporting international trade and investment, both bilaterally and multilaterally. Our open policy 
has always been consistent with our efforts in pursuing economic diversity and prosperity.  
2.8.  We have undertaken steps to diversify our economy in various sectors based on our Tenth 
National Development Plan (2012–2017) or the Vision 2035 (Wawasan 2035). Through this plan, 
we aim to be recognized for our accomplishment of highly educated and skilled people with a high 
quality of life; and a dynamic and sustaina ble economy with high income per capita. 
2.9.  One of the key challenges in our Vision 2035 will be to enhance national capacity to carry out 
development initiatives and strengthen competitiveness. Therefore, high priority has been given in developing our human resources by equipping them  with the expertise and skills required by 
commerce and industry through investment in our educational and vocational institutions in the 
primary, secondary or tertiary levels.  
2.10.  We believe that effective development in this area can contribute towards sustainable 
socio-economic growth, and a skilled, educated workforce is an important asset, taking into 
account the current challenges and global competition. 
2.11.  In order to implement these goals, we have set up a Vision 2035 Executive Council that 
oversees efforts of various government agencies in  realizing the goals as well as to ensure that 
strategies and policies laid out under the National  Development Plan are in line with our Vision. 
The Council is assisted by the National Developm ent Plan Executive Committee and the Delivery 
Unit, which will act as a catalyst in making sure that our top priorities are given absolute focus as well as to ensure effective delivery.  
2.12.  To illustrate our commitment, respective government agencies have also taken the role as 
lead shepherds to ensure that the implementati on of programmes and projects under Vision 2035 
are completed within the targeted period.  WT/TPR/W/77 • Brunei Darussalam 
 
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  2.13.  The accelerated and coordinated efforts on the part of the Government towards 
diversification away from the oil and gas sector can be seen through the various FDI initiatives that are showing positive signs.  
Our progress so far - FDIS 
2.14.  Let me highlight on the progress we have  achieved so far. Investment has grown across 
sectors covering downstream manufacturing, services, halal manufacturing as well as aviation services.  
2.15.  On our strategy to diversify into halal brand products, we have established a Bio Innovation 
Corridor (BIC), an area of 500 hectares that acts as a 'one-stop shop' providing support for 
innovative technology-oriented businesses in food, pharmaceuticals and cosmetics sectors, which will be enhanced by the Brunei Halal Brand.  
2.16.  Besides that, we have also set up our fi rst halal pharmaceutical manufacturing plant. The 
project is aimed at capitalising on the growing halal market in the region, particularly ASEAN, the Middle East, Western Europe and the United States as a potential destination for export.  
2.17.  Besides these two projects, we also developed our ambition to become a regional hub for 
aviation and defence training. We have established the CAE Brunei Multi-Purpose Training Centre (CAE Brunei MPTC) in 2012, which is said to be one of the region's largest helicopter training 
facilities for aviation, defence, oil and gas and crisis and emergency management.  
2.18.  These projects will surely benefit us in several ways and assist us in our efforts to position 
Brunei as a new technology player in the next 20–30 years.  
2.19.  On the infrastructure front, we have been  ramping up our infrastructure developments and 
working to position ourselves as a regional hub. Several projects are now under way. These 
include the Pulau Muara Besar Bridge, Temburong bridge, Pandaruan bridge and the expansion of 
the Muara port. These developments will also enable us to achieve greater connectivity and 
contribute to our economic growth and development process. 
2.20.  Our energy sector has been the primary dr iver of our GDP and will continue to retain 
primacy as a key contributor to Brunei Darussalam's economic development. Therefore, we have 
set out three core elements in our Energy White Paper which highlights the need to strengthen and 
grow upstream and downstream activities in hydr ocarbons; to ensure secure, reliable and efficient 
supply and use of energy; and maximise economic spin-offs from the energy industry, with these 
targets to be achieved by 2035. 
2.21.  We believe that developing our downstream industry will help Brunei Darussalam to further 
diversify its energy sector, strengthen its resili ence to primary energy shocks and maximize the 
value of upstream oil and gas through the development of higher value added downstream 
industries. Our 2035 target of downstream economic output is BND 5 billion.  
2.22.  In view of this, we have established a Brunei Methanol Company, which is targeted to 
contribute about BND 300 million to the economy annually. We believe that methanol has a great 
potential to develop a wide variety of products.  
2.23.  Besides that, we are currently in the process of developing Pulau Muara Besar for the 
construction of an integrated oil refinery and related industries. The project will be Brunei's second petrochemical project and will be one of the largest FD Is in Brunei to date. In the long run, it will 
help provide socio-economic benefits to Brunei Darussalam such as job opportunities, support local 
business development and promote technology transf er as stipulated in our Energy White Paper. 
2.24.  All in all, we have identified several key industry clusters within the export-oriented 
manufacturing and services sectors such as pharmaceuticals and food manufacturing, ICT, 
logistics, oil field support services and emerging new technologies that have the potential to bring 
value-added activities to Brunei Darussalam.  WT/TPR/W/77 • Brunei Darussalam 
 
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  Improvements in framework  
2.25.  Brunei Darussalam's trade policies have undergone significant changes since its last review. 
We are moving to speed up business processes an d improve our regulatory framework. We have 
made significant efforts to encourage private sector investment and business establishment.  
2.26.  Brunei's strategic location and membership  in ASEAN and our involvement in various FTAs 
with dialogue partners, as well as in the sub-regional initiative BIMP-EAGA positions Brunei as an ideal hub for accessing regional markets. 
2.27.  We also have a number of regional and in ternational trade agreements in the pipeline for 
this year. One that is of significance is the realisation of the ASEAN Economic Community (AEC) by 2015, which aims to create a single market and pr oduction base within th e region, and we fully 
intend to take advantage. Other key regional initiative that can help us liberalize our trade and 
investment policies are the Trans-Pacific Partnership (TPP) as well as the Regional Comprehensive 
Economic Partnership (RCEP).  
2.28.  Brunei Darussalam is continuously implementing systems to facilitate trade such as the 
establishment of the e-Customs and National Single  Window. In addition to that, we have also 
implemented the OneBiz Portal, a single window to apply for business licenses in a time and cost-saving manner.  
2.29.  In parallel to efforts to attract FDIs, we have made significant improvements to our 
Intellectual Property Rights (IPR) regime, which can be challenging due to our lack of sufficient human resources. With the setting up of our Brune i Intellectual Property Office (BruIPO), we were 
able to successfully deploy the WIPO's Industrial Property Administration System for trademarks in 
June last year. We will continue to constantly look for ways to improve our IP administration. 
2.30.  In our efforts to further boost foreign inve stors' confidence in Brunei Darussalam, we have 
set up the Brunei Darussalam Arbitration Center, which is an independent body that has the 
necessary mandate to administer domestic and international arbitration in Brunei Darussalam. 
Apart from that, we have also introduced the Consumer Protection (Fair Trading) Order, to protect consumers' interest against unfair practices by suppliers.  
2.31.  Let me also add that we are in the process of amending several of our national legislation 
that will have a direct impact on our trade and investment regime, one of which includes our competition law. I am sure that with these regulatory reforms, we will be able to greatly facilitate trade and improve ease of doing business in our co untry which is being undertaken by the Delivery 
Unit.  
Challenges ahead 2.32.  Despite our national development plans and many other initiatives, we are still faced with 
the challenges in diversifying our economy. Our dependence on oil and gas has led to a heavy 
reliance on our government sector with limited role of the private sector.  
2.33.  In light of this, we have decided to establish government-linked companies (GLCs), which 
we believe can serve as a catalyst to spur areas of importance to Brunei Darussalam's long-term 
development strategy, in areas where the local pr ivate sector has been constrained by lack of 
access to technology and resources.  
2.34.  Our investment holding company under th e Ministry of Finance called Darussalam Assets, 
has been tasked to actively managing government investments in GLCs. It is also hoped to play a 
strategic role in government investment activities in achieving development and economic diversification, in providing job opportunities for locals whilst at the same time gain economic 
returns in the long-term. 
2.35.  The establishment of such a company is to ensure that the GLCs in Brunei Darussalam 
operates according to the same requirement as private commercial businesses based on 
commercial principles with good corporate governance  practices. In addition, the company will also 
focus on management training and business skills development to boost human capital across the WT/TPR/W/77 • Brunei Darussalam 
 
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  GLC portfolio, which is considered a key success factor in achieving sustainable business 
performance. 
2.36.  Another initiative to support our diversification efforts is the establishment of the Strategic 
Development Capital Fund under the Sustainability Fund Act, which aims to safeguard us against 
oil revenue vulnerability and promote economic diversification. The funds will provide risk capital 
for strategic local development that contribute to economic growth and diversification across various sectors and broaden the revenue base of the Government. 
2.37.  Efforts have also been made through Pub lic Private Partnership (PPP), which has become 
increasingly important as a means of implementing  infrastructure development projects. We have 
undertaken a number of infrastructural projects on a PPP basis. For instance, in the renovation and refurbishment of buildings as well as the development of Integrated Community and Commercial 
Facilities. 
2.38.  Our private sector largely comprises of small and medium enterprises whose development 
requires strong support from the Government. Havi ng said that, we have established several SME 
schemes such as the Microcredit Financing Scheme, Enterprising Facilitation Schemes and the 
Enterprise Expansion Program Financing that will assist in building the capacity of micro-, small- and medium enterprises in order for them to grow and compete in markets locally and abroad.  
Conclusion 
2.39.  Let me sum-up by saying that as an open based economy, Brunei Darussalam recognizes 
the importance of a strong and rules-based international trading system. Our accessibility to the international market creates a pathway for greater economic growth and development. We 
strongly believe that we can stand to gain significantly from strengthening the multilateral trading 
system and improving market access.  
2.40.  We look forward to exchanging views and ideas with other Members on issues related to our 
trade policies and see what we can bring home with  us. We believe that efforts to think beyond 
periodic reviews should be translated into actions.  
2.41.  With that, I would like to reiterate our appreciation to everyone who was involved 
throughout our Trade Policy Review process. We deeply appreciate your dedication and 
seriousness in making sure our review goes well.  
2.42.  I would also like to take this opportunity to thank the WTO for its role, the Chair, and our 
excellent discussant in shepherding us through this process. WT/TPR/W/77 • Brunei Darussalam 
 
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  3  STATEMENT BY THE DISCUSSANT 
3.1.  I warmly welcome the Delegation of Brunei Darussalam, headed by Permanent Secretary 
H.E. Dato Paduka Lim Jock Hoi to their third Trade Policy Review. I also would like to thank the WTO Secretariat and the Brunei Government for the comprehensive reports they provided. I 
should also like to mention that, it is an honour and privilege for me to act as discussant at the 
trade policy review of Brunei Darussalam. 
Economic Environment 
3.2.  Darussalam literally means "the residence of peace and prosperity". In line with its name, 
Brunei Darussalam is one of the most prosperous countries in the South East Asia despite being a relatively small economy. Its GDP per capita exceeds US$38,000 and it occupies the 30
th place in 
UN Human Development Rankings. It has a stable macroeconomic environment with a low inflation 
rate, a healthy public finance and current account surplus. 
3.3.  In 2013, Brunei's merchandise exports reached US$11.43 billion and imports amounted to 
US$3.61 billion. As the main items of its foreign tr ade, exports of mineral fuels, including oil and 
gas, was around US$11 billion, and its imports of  machinery and transport equipment was around 
US$1.32 billion. Between 2008 and 2013, its exports rose by 8.4% while its imports increased by 
40.3%.  
3.4.  As shown by the exports figures, Brunei is a highly oil-dependent economy. Oil and gas 
sector has a preeminent role in the development of Brunei, which is the fourth largest oil producer in the South East Asia and the ninth biggest LNG exporter in the world. Dominating the main parameters of the economy, the hydrocarbon sect or accounts for the two-thirds of the GDP and 
more than 90% of the exports of Brunei.  
3.5.  Like other hydrocarbon exporting peer economies, Brunei's oil and gas dependency creates 
vulnerabilities in terms of GDP growth, exports an d fiscal revenues, as demonstrated by the recent 
oil price collapse. Since its last review in 2008, due to the decline in oil production, hydrocarbon 
sector couldn't make its traditional positive contribution to the economic growth of the country. Between 2008 and 2013, oil production and exports decreased 22% and 17%, respectively. Brunei 
is passing through of a relative stagnati on with a 0.2% average annual growth.  
3.6.  Taking into account the vulnerabilities related to the dependency on the hydrocarbon sector 
in the economy, sectoral diversification needs to be among the top economic policy priorities for Brunei. I am quite satisfied of seeing that the Government of Brunei, which is fully aware of this, 
has already launched many initiatives in order to diversify its economy as part of its Long-Term 
Development Plan and the Energy White Paper. These initiatives mainly intend to improve the competitiveness of manufacturing and services sector s, and to increase the share of private sector 
in the economy. 
Trade and Investment 3.7.  When we look at its trade policy, Brunei has, in general, an open and liberal trade regime 
with very low tariffs and trade facilitating customs procedures. During the review period, Brunei 
has made substantial reductions in its overall tariff protection. It has decreased its simple average applied MFN tariffs from 4.8% to 1. 7%. In addition to its very low industrial tariffs, Brunei has zero 
tariffs on agriculture, fish and fishery products. I should also emphasize an additional fact: Brunei 
does neither use tariff quotas nor implement seasonal tariffs. Furthermore, Brunei does not apply 
trade remedies either.  
3.8.  On the other side, as a minor but important point, I want to mention that Brunei maintains 
an important water between the bound and applied tariff rates. I am confident that Brunei would 
take further appropriate steps to close this water which creates some unpredictability in its liberal trade regime. 
3.9.  Like other Members of the WTO, Brunei gives also great importance to have a balanced trade 
policy among its multilateral, regional and bilateral priorities. In this context, as an indication of its commitment to the multilateral trading system, Brunei has already made its Category A WT/TPR/W/77 • Brunei Darussalam 
 
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  notifications under the recent WTO Trade Facilitation Agreement. As part of its objectives to 
deepen its regional ties, Brunei has signed eight FTAs with 16 partners. In this regard, Brunei has 
important expectation from its committed membership of ASEAN. Brunei is also one of the original signatories of the Trans-Pacific Strategic Economic Partnership Agreement, which is the basis of 
the ongoing TPP negotiations. 
3.10.  When it comes to regulatory framework, I am pleased to underline that during the review 
period, Brunei has further improved its trade and investment climate. In this framework, Brunei 
put into force a new legislation on domestic and international arbitration in 2010 and the new 
Consumer Protection Order as well as the Patent Order enacted in 2012. In addition, Brunei has taken part in many international conventions on intellectual property rights issues.  
3.11.  Despite this very positive background and developments, Brunei, according to the World 
Bank Doing Business Report, occupies the 101
st place among 189 countries in overall, and the 
179th place in starting a business. Therefore, ther e is still room for improvement of trade and 
investment regime, and I believe that the Brunei Government will proceed without delay to take 
necessary steps in order to create a more favourable business climate. 
3.12.  Among the steps to be taken, the need for a comprehensive competition legislation and a 
transparent and predictable property regime for foreigners are the most important ones. Local 
equity participation, market concentration and nationality requirements along with unpredictable 
permit systems are some other elements limiting incoming foreign investments. Brunei should also spend extra efforts to cut the "red tape" in the country. 
Trade Policies by Sector 
3.13.  I would like to touch upon some sectoral issues which I deem important. 
3.14.  Due to its geography, Brunei has limited arable lands, which makes it a must to develop a 
comprehensive strategy for sustainable agricultural production and food security. Such a strategy 
should address different needs of Brunei, from coping with pests and diseases to the transfer of 
best practices, expertise and technology into the country. This may imply participation of foreign investment in agricultural sector. Easing the fore ign investment cap would be an incentive for this 
purpose. 
3.15.  In hydrocarbon sector, Brunei needs to find a balance between export dependency to crude 
products and import dependency to refined products. In this regard, efforts of the Government to develop upstream activities in energy through important refinery investments with the 
participation of foreign partners are very appropriate. On the other hand, putting the energy sector 
at the very heart of the economic growth and development policy, and aiming to double the employment in this sector by 2035, as indicated in the Energy White Paper, poses some risks and 
contradictions regarding the objective to diversify the economy. 
3.16.  As I have already pointed out, the main challenge for Brunei remains reducing the oil 
dependency and increasing the share of the private sector in manufacturing. Despite some very 
important steps to this purpose, such as reductio n of the income tax and tax relieves provided for 
some pioneer industries, a number of bottlenecks persist and manufacturing still accounts for only less than 1% of the economy. High cost of doing business and shortage of labour force, along with 
lack of an adequate production scale in manufacturing are among these bottlenecks that Brunei 
would probably face in the years ahead. On the other hand, it seems that easing further of 
financing conditions for micro-, small-, medium sized companies would be an important tool to achieve an adequate production scale in the manufacturing. 
3.17.  As part of a comprehensive diversification strategy, tourism, finance and transport sectors 
also could play a pioneering role and facilitate Brunei to become a regional economic and commercial hub.  
3.18.  In the finance sector, reducing the high banking fees and transaction costs, developing the 
capital market, becoming part to the Financial Services Protocol of GATS, would be useful for Brunei in providing a more favourable environment for foreign investments.  WT/TPR/W/77 • Brunei Darussalam 
 
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  3.19.  In the air transport, Brunei has an important advantage thanks to its central geographical 
location which makes it possible to reach all important capitals in the region in a few hours of flights. However, the decision of the Royal Brunei Airlines to stop its long-haul flights in 2011 may be seen as an obstacle in reaching the transit potential of the country to make it a regional air 
transport hub. 
3.20.  With regard to tourism, intensified efforts including establishment of a comprehensive legal 
framework and continuing the current projects with  other countries of the region would contribute 
to attract FDIs into the sector and reveal its potential.  
3.21.  To sum up, Brunei can further improve its economic development by working on a 
well-designed, realistic and consistent sectoral diversification strategy. This strategy would neutralize the negative effects of the volatilities in  energy markets, establish food security through 
a sustainable and reliable agricultural production and mitigate the negative effects of employment 
concentration in the public sector. Last but not least, strengthening the services sector by completing the legal framework would very positively contribute to the GDP growth and create 
positive externalities in the economy. 
3.22.  Finally, I should share with the audience my satisfaction by seeing that all these issues are 
already addressed in the National Vision 2035 and I am fully confident that Brunei, which has put 
the education to the core center of its Development Plan, will be able to succeed in its objectives. 
3.23.  I wish Brunei Darussalam a successful review. Thank you.  WT/TPR/W/77 • Brunei Darussalam 
 
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  4  STATEMENTS BY MEMBERS 
THAILAND  ON BEHALF  OF ASEAN 
4.1.  Despite its small population of only 406,000, Brunei's role in ASEAN has never been small. 
Brunei joined ASEAN on 7 January 1984, one week  after its full independence, and has been 
committed to the work in ASEAN since then, ASEAN member States appreciate Brunei's active role 
in supporting ASEAN's efforts in different areas, particularly in establishing the ASEAN Community by 2015 and in fostering closer relationships with ASEAN's trading partners, especially during 
Brunei's competent chairmanship in 2013. 
4.2.  Brunei is an example of an open trade regi me as shown by the ratio of merchandise trade to 
GDP of 104% in 2013 and its low tariffs. The simple average applied MFN rate decreased from 4.8% in 2007 to 1.7% in 2014, and specific tariff lines were reduced from 131 in 2007 to 55 in 
2014, which improves transparency. Brunei's trade in services also grew during the review period 
as the share of private services in real GDP went from 25% in 2008 to 29% in 2013. 
4.3.  Furthermore, we commend Brunei on their tireless effort in facilitating trade since the last 
review in 2008, including e-Customs allowing traders to submit applications electronically and the 
Brunei Darussalam National Single Window, which began to operate in January last year. This is coherent with the work under both the ASEAN Single Window programme of the ASEAN Trade in 
Goods Agreement and the WTO. Brunei's enhancemen t of its investment regime by decreasing 
income tax rate from 27.5% in 2008 to 20% in 2014 and a further reduction to 18.5% in 2015, is also well recognized, and goes hand-in-hand with its current strategy to create a more diversified 
economy. 
4.4.  In realizing its diversification efforts, Brunei has also undertaken some steps in various 
sectors based on its Tenth National Development Plan or the Vision 2035, which among others, aim to accomplish an educated and highly skilled population together with a high quality of life and 
a sustainable economy with high income per capita. In this regard, we note that Brunei has set up 
a Vision 2035 Executive Council to oversee the efforts of various government agencies to ensure that the strategies and policies laid out under the National Development Plan are conceived. 
ASEAN supports all of these constructive efforts, which in turn positively contribute to the regional 
and global trade. 
4.5.  In spite of the small size of their Mission here in Geneva, Brunei has actively been involved in 
this Organization individually and through ASE AN. Under Brunei's leadership as the 2013 ASEAN 
chair, ASEAN members together worked extrem ely hard towards the MC9 in Bali and that 
leadership undeniably contributed to Bali's success. Opting for an alternative time-frame for this Trade Policy Review further confirms Brunei's commitment to this Organization and its willingness 
to be transparent and responsive to Members' inquiry of their trade policy and measures. 
4.6.  Some ASEAN members have submitted wri tten questions to the Brunei delegation and we 
thank Brunei for their timely written responses last week. 
4.7.  To conclude, on behalf of ASEAN, we would like to express our appreciation to the small and 
competent Brunei Mission in Geneva under the leadership of Ambassador Dato Mahdi Rahman. 
THAILAND 4.8.  Besides the meaningful regional trade relationship through ASEAN, Thailand would like to 
recognize our bilateral relations with Brunei. Since the last review, the total trade value between 
Brunei and Thailand has increased more than three times from around US$226.6 million in 2009 to US$795.1 million in 2014. In 2013, Thailand was Br unei's eighth largest export destination and 
sixth import source, and during 2012-14, our bi lateral trade grew 15-18% annually. With this 
positive trend, we hope that our bilateral trade with Brunei will continue to develop positively and 
meaningfully. 
4.9.  Thailand and Brunei has substantial bilateral cooperation through different channels, such as 
the Joint Commission for Bilateral Cooperation, the MOU on Cooperation in the Field of Information and Broadcasting, and the MOU between the Brunei Investment Agency and the Thai Pension WT/TPR/W/77 • Brunei Darussalam 
 
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  Fund. Thailand is also interested in expanding our halal food products into the Brunei market in the 
future. 
4.10.  Echoing ASEAN's statement, Thailand is grat eful for Brunei's constructive role in ASEAN and 
in the WTO. 
4.11.  In this review, Thailand submitted questions to Brunei regarding foreign direct investment 
regime, tariff rates, excise duties, and the import procedure for halal meat and poultry. We thank Brunei for its detailed responses especially on the halal import procedure, which we will share with 
the relevant agencies. 
4.12.  Lastly, we would like to express our appreciation to the Brunei delegation for today's 
presentation as well as for the close cooperation between our two missions. Thailand wishes Brunei the successful and productive third Trade Policy Review. 
AUSTRALIA 
4.13.  Australia welcomes the opportunity to participate in this Trade Policy Review of Brunei 
Darussalam. Australia's bilateral relationship with Brunei is warm and collaborative. A key pillar of 
this relationship is the large number of Bruneian students who have come to Australia over the 
decades for study. Australia and Brunei cooperate in a range of regional fora such as APEC and the 
East Asia Summit. We also have an active defence relationship and there is potential for enhanced 
trade and economic cooperation as Brunei seeks to diversify its economy.    
4.14.  Our economic and trade relationship is modest but important to both countries. Two-way 
trade in goods and services was worth $0.9 bi llion in 2013-14, contracting slightly from the 
highest point of $1.3 billion 2012-2013. Bruneian exports of crude petroleum to Australia account 
for the bulk of this trade. Australia's largest exports to Brunei are transport and education related 
services. Australian services providers are active in supporting Brunei's oil and gas sector. 
4.15.  Australia is pleased to work together with Brunei to promote regional economic integration. 
We are both parties to the ASEAN-Australia-New Zealand Free Trade Agreement, and we are 
working constructively in other regional trade negotiations, including on the Regional Comprehensive Economic Partnership and the Trans-Pacific Partnership Agreement, which will 
provide additional economic benefits to our countries. 
4.16.  Australia welcomes Brunei's goal of diversifying its economy and supports initiatives it has 
undertaken in pursuit of this objective, such as the establishment of the Brunei Economic Development Board in 2001 and the launch of Brun ei's Vision 2035 in 2008. While Brunei faces 
challenges in its economic reform agenda, Australia knows from its own experience that the pains 
of structural reform deliver a stronger economy and increased productivity. Australia also notes the important role that foreign investment has played in its own economic growth. We encourage 
Brunei to persist with its reform and diversification efforts, which will pay off in the future.   
4.17.  As ASEAN Coordinator in 2013, Brunei highlighted the leading role ASEAN economies play in 
the WTO as developing countries committed to trade reform in principle and in practice. ASEAN 
economies, including Brunei, have demonstrated the benefits developing and least developed 
countries can derive from trade liberalization and facilitation, in the WTO and regionally. Brunei, like all Members, stands to benefit from furt her multilateral liberalization through the WTO. 
4.18.  In this context, we appreciate Brunei's co mmitment to the outcomes of MC9, in particular 
the Agreement on Trade Facilitation. We note that Brunei Darussalam has notified the WTO of its 
Category A commitments under the Agreement on Trade Facilitation. The timely entry into force of the Agreement will bring substantial economic benefits to WTO Members. We look forward to 
continuing to work with Brunei and other WTO Members to capture the benefits of the Agreement 
on Trade Facilitation. 
4.19.  As we continue to collaborate on deeper regional trade and economic integration, Australia 
encourages Brunei to explore, in particular, the impacts of its existing price control and agricultural 
support policies. We further note the growth potential of Brunei's financial services sector and WT/TPR/W/77 • Brunei Darussalam 
 
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  commend Brunei on its efforts to develop that pote ntial, including through the proposed Securities 
Market Order.  
4.20.  For this review, Australia has submitted a number of written questions relating to Brunei's 
trade and investment regime, including trade poli cies and practices by measure, such as price 
controls, rice and sugar purchasing policies, curbing illegal sales of subsidised products, expanding 
the financial services sector and increasing competition in telecommunications. We appreciate Brunei's responses to these questions, and wish  the Brunei delegation a successful Trade Policy 
rReview. 
MALAYSIA 4.21.  Malaysia is pleased to take part in this third Trade Policy Review of Brunei Darussalam and 
associates itself with the statement made by Thailand on behalf of ASEAN. 
4.22.  We noted economic growth of Brunei Daru ssalam was affected due to highly exposed to 
fluctuation of international energy prices, during  the review period. Therefore, we welcome Brunei 
Darussalam's effort in implementing ambitious diversification strategy with a view to reduce its 
reliance on its fossil resources. 
4.23.  Malaysia commends Brunei Darussalam's strong commitment to the multilateral trading 
system, including its support for the implementati o n  o f  t h e  B a l i  p a c k a g e .  I n  p a r t i c u l a r ,  w e  
welcome Brunei Darussalam's submission of its trade facilitation category A commitments. We 
believe Brunei Darussalam will, with others, submit Trade Facilitation Agreement Instrument of Acceptance as soon as possible with a view to ensure implementation of the agreement by the 
MC10.  
4.24.  Malaysia has enjoyed a closer relationship with Brunei Darussalam on all fronts be it 
economic, culturally or particularly in people-to-people contact. Economic relations with Brunei Darussalam has grown stronger, and more so now regionally with the realisation of the ASEAN 
Economic Community this year. Both countries are negotiating the Trans-Pacific Partnership 
Agreement (TPP) as well as Regional Comprehensive Economic Partnership (RCEP). 
4.25.  Total bilateral trade in 2013 amounted to US$1.15 billion; an increase of 58% from 2012. In 
terms of investment, up to August 2014, 12 manu facturing projects were approved from Brunei 
Darussalam amounting to US$12.03 million. They ar e in the areas of machinery and equipment, 
chemical and chemical products, and fabricated metal products. 
4.26.  Moving forward, Malaysia hopes Brunei Darussalam will continue with its positive trade 
initiatives including further liberalization of its trade in goods and services which will contribute to 
a strong ASEAN single production base and integration into the global supply chain. We would like to take this opportunity to thank the delegation of the Brunei Darussalam for responding to our 
questions and these are being examined at the Capital.  
4.27.  I wish the delegation of the Brunei Darussalam led by H.E. Dato Paduka Lim Jock Hoi, a 
productive and successful third Trade Policy Review. 
CHINA 
4.28.  As a close neighbour, China is glad to see Brunei has continued to maintain its economic 
development, stability and high living standards even under the global financial crisis since 2008. Meanwhile, the Government of Brunei has invested great efforts in its diversification strategy as 
embodied in the National Vision 2035, which has surely built up sound foundation for better 
growth of Brunei's non-oil and gas sectors. 
4.29.  We are also pleased to note that Brunei has not only maintained the low tariff level, but also 
taken important steps to ease customs procedures and regulate domestic market. At the same 
time, Brunei has actively engaged in several regional and bilateral trade liberalization arrangements that includes the ASEAN-China FTA which was fully established in 2010. As a result, 
the trade volume between Brunei and China went up  almost three times during the period under 
review. WT/TPR/W/77 • Brunei Darussalam 
 
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  4.30.  The trade growth is not the only proof of  the comprehensive bilateral cooperation between 
China and Brunei. In 2013, China and Brunei have established Strategic Cooperative Relationship aimed at enhancing peace, stability and prosperity of the two countries in all fields. Looking ahead, China is willing to actively engage in Brunei's accelerating diversification efforts. In this regard, 
China believes that further market liberalization and more investor-friendly environment would be 
the key for Brunei in tapping the potential of its non-oil economy and private sector in the future.   
4.31.  Finally, I wish the third Trade Policy Review of Brunei Darussalam a great success. 
CANADA 
4.32.  Canada can relate to Brunei's position in te rms of the importance of the petroleum sector to 
its economy, and the challenges presented by fluc tuating international energy prices. While Brunei 
is still highly dependent on the petroleum sector and the government sector is the largest 
employer in the country, since the last Trade Po licy Review in 2008, Brunei has taken encouraging 
steps to facilitate trade and improve the business climate. Canada would be happy to continue supporting Brunei in meeting its development objectives, thus building on its prosperity and 
stability within the dynamic Southeast Asian region.   
4.33.  We recognize the ambitious development pl ans and goals outlined by Brunei's Vision 2035, 
which have the potential to stimulate growth in Brunei and beyond. We commend Brunei for its 
economic diversification strategy and for its efforts in increasing private sector participation in the 
economy. We are particularly encouraged by Brunei's commitment to opening its market for Foreign Direct Investment. However, further improvements to the business climate are needed, particularly with respect to transparency in the implementation of FDI policies.  
4.34.  Canada and Brunei Darussalam have a strong and growing commercial relationship, which 
was most recently demonstrated by the opening of  the CAE Brunei Multi-Purpose Training Centre, 
a joint venture between CAE, a Canadian company,  and the Government of Brunei. With a total 
investment valued at more than US$100 million, the project is one of the largest non-oil and gas 
investments in Brunei. More importantly, the Centre provides high-quality jobs for local Bruneians and could become a world-class learning and training hub for a range of industries. In fact, a large 
of proportion of Canada's merchandise exports to Brunei in 2013 comprized flight simulators 
exported by CAE for use in its training Centre.  
4.35.  Another joint investment between a Canadi an firm and a Bruneian private equity fund has 
enjoyed similar success. British Columbia-based Viva  Pharmaceutical partnered with Aureos Capital 
to establish Simpor Pharma, a US$26 million manufacturing facility producing halal generic drugs 
and nutraceuticals for export to markets in Asia and potentially the Middle-East.  
4.36.  Other Canadian firms that have made inroads in the Bruneian market include Side Effects 
Software, Autodesk, and BlackBerry. We have the opportunity to build on these successes and look 
forward to seeing more investme nts from Brunei into Canada.  
4.37.  On the trade policy side, on 26 December 2014, Canada and Brunei successfully 
implemented a Tax Information Exchange Agreement (TIEA) that assists our respective tax 
authorities in combating international tax evasion by providing for the effective exchange of tax information.  
4.38.  From a broader perspective, Brunei is a potential point of entry into the ASEAN market and 
Canada offers the Pacific Gateway to the North American market. And we are committed to 
working closely with Brunei Darussalam and other Trans-Pacific Partnership (TPP) members towards the goal of concluding this highly ambitious trade agreement.  
4.39.  Finally, Canada believes Brunei, a member of ASEAN and of APEC, has an important role to 
play in regional economic integration in the Asia-Pacific region. This includes through the realization of the ASEAN Economic Community and the Regional Comprehensive Economic 
Partnership (RCEP) negotiations. Canada is interested in the burgeoning economic architecture in 
the region and will continue to closely follow th e development of these two important initiatives. WT/TPR/W/77 • Brunei Darussalam 
 
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  4.40.  I would like to thank Brunei's delegation for the answers to Canada's written questions 
relating to government procurement and trade in services.   
4.41.  In closing, we strongly encourage Brunei Darussalam to hold firm to its economic and trade 
policy reforms under Vision 2035, which have resulted in a strong economic performance and 
should help the country diversify its economy. 
SINGAPORE 4.42.  Brunei and Singapore are old friends and economic partners. Our trade ties are longstanding 
and have grown steadily over the years. From 20 10 to 2014, bilateral trade grew at an average 
rate of 13% per year. Brunei is also the only country in the world where you can buy a cup of coffee and pay in Singapore dollars. Our Currency Interchangeability Agreement has been in place for the last 48 years, and is testament to the clos e economic links both countries share. Singapore 
was Brunei's 5
th largest trading partner in 2013, and as at end 2012, Brunei's stock Foreign Direct 
Investment (FDI) in Singapore was US$368 million, a 9.4% increase over 2011. Both countries also enjoy close bilateral energy cooperation. 
4.43.  Since its last TPR, Brunei has taken commendable steps to keep its economy open to trade 
and investment. These include putting in place initiatives to further trade facilitation, such as through e-Customs, and the Brunei Darussalam National Single Window (BDNSW). Brunei has 
maintained its policy of not imposing any customs fees for import/export procedures or 
registration. Brunei has also strengthened its intellectual property rights (IPR) regime since its last TPR, through the establishment of its national pa tent system, and its concerted efforts to curb 
copyright piracy and improve IPR enforcement. Thes e efforts have not only served to facilitate 
trade flows, but have also enhanced Brunei's attractiveness as an investment destination. 
4.44.  Singapore and Brunei's shared commitment to  free trade has made us natural partners at 
regional and international fora. Within ASEAN, we are working closely on realizing the ASEAN 
Economic Community. We particularly appreciate Brunei's efforts in introducing and implementing 
competition law, which would in turn encourage businesses to innovate, and provide consumers with greater choices and potentially lower prices. We are also cooperating closely in the ongoing 
Trans-Pacific Partnership (TPP) and Regional Comprehensive Economic Partnership (RCEP) 
negotiations. 
4.45.  At the WTO, Brunei has similarly been a reliable partner and friend. We share similar 
perspectives on trade liberalization, and believe strongly in the importance of a rules-based 
multilateral trading system. In this regard, we look forward to Brunei's ratification and deposit of 
instrument for the Trade Facilitation Agreement in due course. Singapore appreciates Brunei's contributions with Ambassador Dato Mahdi Rahm an and his capable team in Geneva. We wish 
Brunei a successful third Trade Policy Review. 
BRAZIL 4.46.  This TPR offers a highly interesting case given the specific features of Brunei Darussalam. At 
first glance, its economic situation appears enviable as a result of oil-generated wealth. The GDP 
per capital in PPP terms exceeds US$50.000 and the HDI is very high, which reminds of developed countries' characteristics. 
4.47.  Nevertheless, this picture is incomple te and may appear misleading, as the Bruneian 
economy faces a challenge that many developing countries encounter to further integrate into 
global and regional value chains: the pressing need for economic and trade diversification, in a sustainable, competitive and inclusive manner. 
4.48.  The excessive dependence on oil and gas has deep implications for export revenue, 
macroeconomic stability and social development in Brunei Darussalam. This situation becomes even more delicate in a scenario of sharply declining oil prices worldwide and the depletion of the 
Bruneian hydrocarbon reserves. 
4.49.  Brazil commends the Bruneian Government for the efforts undertaken towards economic 
diversification and further private sector participation, especially SMEs. Hopefully, the "National WT/TPR/W/77 • Brunei Darussalam 
 
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  Vision 2035" will materialize and succeed in help ing this transformational process, increasing 
domestically value added products and creating jobs in industries such as agrifood, information and communication technology and services.  
4.50.  Diplomatic relations between Brazil an d Brunei Darussalam date back to 1984. Although 
cordial, our interaction still has a long way to go. Two-way trade is modest and far from its full 
potential, standing at US$1.6 million last year. Brazilian exports were concentrated on footwear, meat preparations and chicken, whereas our imports were composed in their entirety by electric 
and mechanical machinery. 
4.51.  From the Brazilian viewpoint, bilateral coop eration might be upgraded through initiatives in 
the area of aircraft and military material. Likewi se, it is essential to explore opportunities for 
increased and consistent trade and investment flow s. Brazil stands ready to expand and diversify 
trade with Brunei Darussalam, especially in  beef, poultry, medicines and cosmetics. 
4.52.  We are grateful for the replies to our advance questions that touch upon government 
procurement, export insurance and agriculture, among other things. 
4.53.  In closing, Brazil wishes Brunei Darussal am a very productive and successful Trade Policy 
Review. 
THE
 SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
4.54.  As mentioned in the Secretariat report, since its last TPR in 2008, Brunei has launched what 
it calls the "National Vision 2035". The plan aims at achieving a sustainable and diversified economy. We recognize that Brunei has already take n steps to further restructure some aspects of 
the administrative system, including the establishment of the Brunei Office of Intellectual Property 
and National Standards Council. Since 2008, some new trade-related legislation has also been 
adopted in several areas, such as the business environment, intellectual property, financial services, fisheries, customs procedures and techni cal barriers to trade. Additional legislation on 
standards and competition is in the process of being drafted as well. 
4.55.  So, we have certainly noted the efforts being undertaken by the Government of Brunei to 
diversify its economy and to continue on its path of development. Brunei is a small, high income, 
relatively open economy with a low applied level of tariffs. However, it remains highly dependent 
on oil and gas, which is a continuing cause for concern, particularly in light of the recent wildly fluctuating international energy prices. In this respect, we have taken note of Brunei's plan to continue investing in the oil and gas sector with the aim of increasing its share of overall 
production. 
4.56.  Despite the positive aspects mentioned, we still felt the need to submit a number of 
questions on the subject of trade policy, invest ment and the various energy sectors. We thank 
Brunei Darussalam for the responses received. I woul d just like to mention here a few issues in 
which we have a particular interest or concerns. 
4.57.  First, according to the latest report of the World Bank, out of a total of 189 economies, 
Brunei ranks No. 101 on the dimension of "Ease of Doing Business". And, among the various 
indicators in the report, Brunei rates below average on "Starting a business", "Registering a property" and "Protecting minority investors". 
4.58.  Second, although foreign direct investment (FDI) inflows have increased recently, they still 
remain relatively small. In fact, we feel there co uld be more transparency with respect to some of 
the limited or restricted sectors as far as FDI is concerned. 
4.59.  Third, energy subsidy reform is a crucial factor in Brunei's future development. It could 
provide the fiscal space for greater government expenditure and perhaps reduce the distortions 
currently affecting efforts at diversifying the economy.  
4.60.  And, fourth, we welcome Brunei's decision to review "The Customs Order 1955", and we 
look forward to the elimination of some of the unnecessary prohibitions on imports such as 
vaccines or live birds, which are allowed by CITES to be traded internationally. WT/TPR/W/77 • Brunei Darussalam 
 
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  4.61.  In conclusion, I would just like to make it clear that, overall, we welcome the statement by 
Brunei and the steps it has taken to improve its economic governance and to liberalize the trade and investment regime. We fully acknowledge the progress it has made since the last review and we are confident that the current exercise will  help to further develop the policies aimed at 
becoming a well-diversified economy.  
4.62.  We therefore look forward to further deepening our trade and economic partnerships with 
Brunei at the bilateral, regional and multilateral levels through the WTO.  
4.63.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu wishes the 
delegation of Brunei Darussalam a successful Trade Policy Review. 
EUROPEAN
 UNION 
4.64.  This is the third Trade Policy Review of Brunei Darussalam. Brunei is a well-integrated 
member in the ASEAN community. Brunei's economy continues to be hugely dependent on crude 
oil and natural gas (accounting for the bulk of GD P and exports earnings). The Sultanate is the 
fourth world producer of liquid gas and is the th ird largest oil producer in Southeast Asia after 
Indonesia and Malaysia. Given the Chair's conclusions of the last TPR that noted the insufficient 
pace of diversification of the economy, an import ant issue that will certainly be discussed today is 
how the country can increase its efforts towards diversification in light of the current decrease in 
the world prices of oil? In this regard, an important element to keep in mind is that much of the 
active population is employed in the public sector or in sectors where the State has a major influence, if not a monopoly.  
4.65.  Regarding the ongoing Bruneization policy, the EU also notes the risk of such policy to 
impede further diversification of the economy given the chronic labour shortages witnessed in a 
number of sectors.  
4.66.  Brunei is known for its support to the mult ilateral trading system and the EU welcomes the 
notification of its commitments in category A in the Trade Facilitation Agreement. Despite the 
general recognition that the economy is open and greatly dependant on imports for its diversification, the EU wonders why certain commodities are subject to export restrictions or even 
prohibitions, for example the exports of prawn, of  stone and gravel, of round timber of logs and 
sawn timber. 
4.67.  The EU also notes that the country is rather poorly ranked by the World Bank in its "Doing 
Business" report. Can the authorities elaborate on the measures they intend to take to improve 
the situation? The EU is convinced that enhanced transparency could help in this regard. For 
example, the EU would be interested to know wh ich sectors are opened to FDI and what are the 
criteria for allowing foreigners for example in the distribution sector or in banking or in telecoms? 
4.68.  Regarding the general process of trade policy formulation, the EU would like to recall one 
paragraph of the Marrakesh Agreement Annex 3 which sets the main rules for the TPRs and in particular the one on domestic transparency: "Members recognize the inherent value of domestic 
transparency of government decision-making on trade policy matters for both Members' 
economies and the multilateral trading system , and agree to encourage and promote greater 
transparency within their own systems, acknow ledging that the implementation of domestic 
transparency must be on a voluntary basis and take account of each Member's legal and political 
systems." Keeping this in mind, the EU wonders whether more consultation of stakeholders before 
the authorities adopt decrees or legislations on trade could not be an avenue to consider. 
4.69.  The EU very much welcomes the fact that  Brunei adopted the alternative timeframe for its 
review so that the replies to the written advanced  questions can contribute to our discussions. In 
this regard, the EU welcomes the replies provided and is looking forward to the measures announced, in particular regarding the adoption of a law on competition, but may follow-up on 
certain answers received. The EU wishes the delegation of Brunei Darussalam a very successful 
TPR. WT/TPR/W/77 • Brunei Darussalam 
 
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  UNITED  STATES 
4.70.  It is no surprise that, during the period under review, the United States and Brunei have 
continued to work closely on a wide range of bilateral and regional issues, thanks in large part to our efforts to conclude the Trans-Pacific Partnership (TPP) agreement. Trade between our two 
countries has continued to grow, and we expect to further strengthen our economic ties and 
enhance the competitiveness of both of our countri es once TPP is concluded. Even without a TPP 
agreement, two-way trade totalled US$576 millio n in 2013, up from US $244 million in 2012. The 
stock of U.S. foreign direct investment (FDI) in Brunei also grew to US$132 million in 2013, up 
14% from US$116 million in 2012. 
4.71.  Brunei has been an active participant and advocate for regional trade liberalization through 
its work in ASEAN, including during its term as the 2013 ASEAN Chair. We look forward to 
continuing our work with Brunei and its ASEAN co lleagues on the U.S.-ASEAN Expanded Economic 
Engagement (E3) Initiative, a new framework for economic cooperation designed to expand trade 
and investment ties between the United States and ASEAN. 
4.72.  As the Secretariat report notes, Brunei is taking measures to protect its environment and 
marine resources, and has included an environment strategy in the Vision 2035 to ensure the proper conservation of Brunei's natural environment and cultural habitat. We look forward to 
continuing to work with Brunei through TPP to advance environmental protection and conservation 
in the Asia Pacific region and to help Brunei achieve the Vision 2035 and beyond. 
4.73.  Turning to Brunei's economic performance during the review period, we note that while the 
economy grew at an average annual rate of 1.5%  during the period of 2009 to 2014, real GDP 
growth is expected to reach 3% in 2015. Meanwhile, per capita GDP has reached over US$40,000, 
one of the highest levels in Asia. 
4.74.  The Secretariat report notes that Brunei remains heavily reliant on oil and gas revenue, with 
petroleum and natural gas representing 96.5% of total merchandise exports in 2013. We would 
therefore welcome any updates Brunei can provide on the progress it is making toward economic diversification and how Brunei expects low oil prices to impact its long-term economic growth and 
government financing. 
4.75.  The United States would like to acknowledge Brunei's efforts in the area of intellectual 
property, including the restructuring the administrative system, the establishment of the Brunei Intellectual Property Office, as well as the entry into force of a new patent law in 2012. During the 
review period, Brunei acceded to three additional WIPO treaties and is considering acceding to 
others. The Secretariat report notes that Brunei has taken steps to improve IPR enforcement, in particular to curb copyright piracy through improved enforcement. We would welcome an update 
on Brunei's further plans to set up an independent IP office and any further judicial or enforcement 
steps the Government is planning. We would also appreciate an update on any potential changes to its geographical indication (GI) system. 
4.76.  As the Secretariat report notes, the public sector continues to exert a direct influence on 
Brunei's economy, mainly through state-owned ente rprises. It is our understanding that Brunei 
operates state-owned monopolies in key sectors of the economy such as oil and gas, telecommunications, transport and energy genera tion and distribution. Many of these same 
entities have a strong trading component to them as well. However, Brunei has not yet notified its 
state trading enterprises to the WTO Working Party on State Trading Enterprises. We look forward 
to receiving more information about these enterprises from Brunei, as well as an update when 
Brunei will submit its notification to the WTO. 
4.77.  We understand that Brunei has for some time considered exploring Membership in the WTO 
Agreement on Government Procurement. Given the importance of government entities in Brunei's 
economy, we would welcome an update on the status of the consideration.  
4.78.  We also note that Brunei is in the final stages of revising the Telecommunications Licensing 
and Regulatory Framework, which will take effect in 2016. We would appreciate an update on the new framework and its impact on telecoms and broadcasting regulatory sectors. WT/TPR/W/77 • Brunei Darussalam 
 
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  4.79.  We are pleased to see that during the review period, Brunei took steps to further facilitate 
trade, and we note that Brunei has no customs fees for import or export procedures or registration. We are pleased to see that Brunei submitted its category A notification for the WTO Trade Facilitation Agreement last year, and look forward to hearing more regarding Brunei's plans 
and timeline for its acceptance of the TFA. 
4.80.  We look forward to continuing our work with the Government of Brunei Darussalam to 
enhance the U.S.-Brunei trade and investment rela tionship, and we appreciate the opportunity to 
participate in this review. As an original Member of the WTO, Brunei has maintained steady 
support for the multilateral trading system. We remain committed to close cooperation with Brunei with the goal of expanding our trade relationship here at the WTO, as well as bilaterally and regionally through Trans Pacific Partnership (TPP). 
THE
 PHILIPPINES 
4.81.  The Philippines fully associates itself with the ASEAN statement delivered by Ambassador 
Weebon of Thailand. 
4.82.  Since its establishment in 1984, Brunei Darussalam has changed dramatically in many ways 
consistent with its long term development agenda, the Wawasan Brunei 2035. This long term plan sets out the overarching goal of delivering economic diversification by 2035 and the broad 
development strategies that Brunei will pursue over this period.  
4.83.  Brunei's small, high-income, open econom y is underpinned by revenue from the oil and gas 
sector, with per capita gross domestic product over US$40,800 in 2013. In 2012, oil and gas accounted for around 67% of Brunei's GDP. Smal l scale manufacturers and primary production 
(including agriculture, fisheries and forestry) make up the rest of Brunei's economy. Brunei 
imports nearly all of its major manufactured products and about 80% of its total food requirements. 
4.84.  The plan also purports Brunei to be known internationally for its well-educated and skilled 
population, the quality of life enjoyed by its citi zens and the dynamism of its economy built on the 
foundations of sustainable growth. Today, Brunei en joys one of the highest standards of living in 
Asia, with a GDP per capita among the top 30 in the world.  
4.85.  The Philippines and Brunei enjoy good relations which spans many areas including as fellow 
members of ASEAN and the Asia-Pacific Economic Cooperation. Our relationship is built upon the establishment of the Philippines-Brunei Joint Commission for Bilateral Cooperation and extends to 
our immediate neighbours through the Brunei-Indonesia-Malaysia-Philippines East-ASEAN Growth 
Areas (BIMP-EAGA). This sub-regional arrangement covers some 1.54 square kilometers of territory and over 70 million people. The idea is to boost trade and economic cooperation between 
specific regions of the countries involved.  
4.86.  As reflected in both the reports of the Government of Brunei and the Secretariat, Brunei 
currently faces the challenge of diversifying its economy away from a dependence on oil and gas 
and encouraging entrepreneurship and private sector to take an active role. Trade and investment 
are important focus of the Philippines bilateral re lationship. Thus, the Philippines looks forward to 
working with Brunei Darussalam in response to its plans to diversify its economy as it offers the potential to create new opportunities for both countries. The Philippines offers a rich source of 
intermediate products and skilled workforce that complements Brunei's goals of establishing itself 
as a manufacturing hub for key sectors. I believe that the important areas to develop include information and communication, business process management, agriculture, cosmetics, food and 
beverages, particularly halal.  
4.87.  The Philippines congratulates Brunei Darussalam for its third Trade Policy Review and would 
like to wish the delegation, led by Permanent Se cretary Dato Paduka Lim Jock Hoi, a successful 
trade policy review. Our appreciation also goes to the Secretariat for preparing a comprehensive 
report and H.E. Mr. Haluk Ilicak (Turkey) for his insightful comments as discussant. WT/TPR/W/77 • Brunei Darussalam 
 
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  MYANMAR 
4.88.  Myanmar associates itself with the ASEAN joint statement delivered by Thailand on behalf of 
ASEAN. 
4.89.  Myanmar and Brunei are Regional Trad ing Partners and fellow members of ASEAN. 
According to the trade statistics from the Ministry  of Commerce of Myanmar, the bilateral trade in 
2013-2014 stood at US$4.3 million, which dramatically increased from US$0.9 million in 2012-2013. 
4.90.  We commend Brunei for taking necessary measures to facilitate and promote trade and 
investment since its last review in 2008. 
4.91.  We give due recognition to the fact that  the economy grew by an average rate of 0.6% 
between 2008 and 2013, despite the negative growth rate of -1.9, -1.8 and also -1.8 in 2008, 
2009 and 2013, respectively. 
4.92.  We are also pleased to note that Brunei Darussalam is actively participating in regional 
economic forums to advance multilateral trade liberalization. 
4.93.  In conclusion, we would like to express our deep appreciation to the Permament 
Representative of Brunei Darussalam, Ambassador Dato Mahdi Rahman and his competent team for their tireless efforts and constructive engageme nt with delegations here in Geneva before and 
during the third Trade Policy Review.  
REPUBLIC
 OF KOREA 
4.94.  On the bilateral front, Brunei and Korea are enjoying a robust economic relationship. The 
Korea-ASEAN FTA entered into force in 2007, has deepened and broadened the bilateral relations 
between the two countries. In 2013, Korea was Brunei's number one export destination for crude 
oil and its number two export destination for LNG (liquefied natural gas). Brunei has also been a key partner for Korea in the area of infrastructure construction as Korean companies have 
continued to participate in many large construction projects in Brunei since 1970s. 
4.95.  Brunei's economy grew by an average ra te of 0.6% during the period under review 
(2008-2013), mainly due to the global economic cr isis and the shortfall of external demand. In 
that regard, we hope that the Brunei's long-term development plan, which has been termed 
"Wawason 2035" or "National Vision 2035" will be carried out as planned through addressing issues posed by many economic challenges including those related to overcoming its high dependence on the oil and gas sector. 
4.96.  Like Korea, Brunei has committed to st rengthening the rules-based, transparent and 
predictable multilateral trading system as embodied  in the WTO. In particular, we would like to 
commend Brunei for the notification of its Category A commitments under the TFA last year, the 
full operation of e-Customs which allows electronic submissions as well as the introduction of a 
National Single Window earlier this year to further facilitate trade. Along these lines, we expect Brunei's continued contribution to the formulation of the Post-Bali work programmes as well as the 
implementation of the TFA. 
4.97.  Korea shares the views of other Members with respect to the trade policies of Brunei such 
as the significant gap between the overall bound tariff rates and applied MFN tariff rates. It would be advisable to reduce the gap to enhance the predictability of trade. 
4.98.  In closing, I would like to express my sincere appreciation to the Brunei delegation for their 
hard work in preparing for today's meeting, and we wish them a very successful TPR.  WT/TPR/W/77 • Brunei Darussalam 
 
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  NEW  ZEALAND 
4.99.  New Zealand and Brunei enjoy a positive trading relationship that reflects and reinforces the 
benefits of the rules-based trading system we enjoy. Our trading relationship is modest, but it is pleasing to note that New Zealand's exports to Brunei have doubled since 2008. This suggests 
small but positive gains as FTA commitments have come on stream and the working relationship 
between our Governments has deepened. 
4.100.  In addition to our cooperation in the WTO,  our bilateral trading relationship is underpinned 
by our joint participation in regional initiatives – the Trans-Pacific Strategic Economic Partnership 
or "P4" agreement which came in to force in 2006 and is, of course, the precursor of the current TPP negotiation. 2015 marks the year when the tariffs New Zealand and Brunei agreed to phase out under the "P4" will reach zero, representing 100% of current trade. And we are now enjoying 
the benefits of the ASEAN, Australia, New Zealand Free Trade Agreement (AANZFTA), which came 
into force between New Zealand and Brunei in 2010. The AANZFTA sets important precedents as an ASEAN-centred agreement for the level of ambition we should be aiming for in ongoing 
negotiations for the Regional Comprehensive Economic Partnership (RCEP). 
4.101.  New Zealand welcomes Brunei's positive co ntribution to the multilateral trading system 
and commends the steps it has taken in the past five years to continue to refine and improve its 
policies and regulation. One pleasing tangible ou tcome worth highlighting has been the reduction 
of Brunei's average applied tariff rate from 4.8% in 2007 to 1.7% in 2008. We encourage Brunei to continue working to reduce the bound averages of its tariffs.  
4.102.  New Zealand is also encouraged by the steps Brunei has taken to diversify away from 
petroleum and energy-based industries and promot e private-sector participation in the economy. 
New Zealand urges Brunei to review the price controls and subsidies it continues to implement which have the potential to undercut this effort by distorting trade incentives. We welcome the 
current development of a comprehensive competition policy and law in Brunei. This is an important 
'behind the border' development which will provide greater certainty for business. 
JAPAN 
4.103.  The economy of Brunei remains highly depend ent on the output and exports of oil and gas, 
according to the report by the Secretariat. Crud e petroleum and natural gas represented 96.5% of 
total merchandise exports in 2013. This remains a cause for concern about Brunei's economy because of fluctuating international energy prices . Moreover, Brunei's economy grew at an average 
annual rate of 0.2% during 2008- 2013 mainly due to lower oil and gas production, and contracted 
minus 1.8% in 2013. 
4.104.  In order to address these challenges and to overcome excessive dependency on 
conventional energy resources, Brunei has been aimi ng at diversifying the structure of its economy 
through long-term national visions, such as "Wawasan Brunei 2035" and "The 10th national development plan 2012-2017". As the basic strategy of these visions, Brunei is developing 
value-added energy resources, incubating eco-touris m utilizing the biodiversity of its tropical rain 
forests, and fostering new industries for the future. Japan commends Brunei's efforts towards economic diversification promoted by the Brunei Economic Development Board (BEDB), and hopes that Brunei will achieve the objectives stipulated in these visions and further economic growth. 
4.105.  Now let me touch upon trade policies. We have two points here: the WTO and RTAs. 
4.106.  On the WTO, Brunei has been contributing  to the multilateral trading system over the 
years as an original Member of the WTO. Brunei al so endorses the Bali Package, in particular the 
Agreement on Trade Facilitation. We would appreciate it if Brunei could provide its views for 
completing the domestic procedures required for th e entry into force of the Agreement. Japan also 
commends the fact that there have never been WTO dispute settlement claims against Brunei, and 
hopes that Brunei will continue this good  practice of respecting the WTO rules. 
4.107.  Brunei has been actively committed to negotiations of various RTAs. Regarding bilateral 
RTAs, the Japan-Brunei Economic Partnership Agreement entered into force in 2008. Given that Brunei is a member of ASEAN, the Japan-ASEAN Comprehensive Economic Partnership Agreement WT/TPR/W/77 • Brunei Darussalam 
 
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  also has been effective since 2009. With regard to plurilateral RTAs, Brunei together with other 
members of ASEAN is also engaged in negotiations of the Regional Comprehensive Economic Partnership (RCEP) with six other WTO Members including Japan. Furthermore, negotiations of the Trans-Pacific Partnership (TPP) has made significant progress in recent months, with Brunei and 
eleven more WTO Members including Japan intending to deliver a 21st century trade agreement. 
We commend these endeavours for further trade liberalization, and hope that these RTAs will complement and strengthen the multilateral trading system. 
4.108.  Finally, I would like to turn to two specif ic points: intellectual property rights, and the 
business and investment environment. 
4.109.  First, on intellectual property rights, Br unei has been promoting improvement of its regime 
to protect intellectual property rights. It has been reported that the number of counterfeit and 
pirated goods, in particular with the piracy of CDs and DVDs, has grown in recent years. To cope 
with this challenge, Brunei announced its strengthening of enforcement against counterfeit and pirated goods in retail shops. In addition, Brunei established the Patent Registry Office under the 
Brunei Economic Development Board (BEDB) in 2012 and the Brunei Intellectual Property Office 
(BruIPO) in 2013. Japan commends Brunei's efforts for the protection of intellectual property rights and hopes that Brunei will continue them and maintain their effectiveness. 
4.110.  Second, on the business and economic en vironment. While Brunei has concluded a number 
of investment agreements so far, the Secretariat reports that FDI inflows remain relatively small, for example, US$775 million in 2013. Considering that  attraction of further investment could be 
helpful to achieve the economic diversification and improvement of employment sought by the 
Government of Brunei, Japan hopes that Brunei will promote the economic strategy under the 
"Wawasan Brunei 2035" in order to further improve its business and investment environment. 
INDIA 
4.111.  As noted by the discussant, the over de pendence of Brunei's economy on oil and gas 
sector, which accounts for about two-thirds of its output, and over 90% of merchandise exports and government revenues, remains a challenging issue for the Government. This obviously makes 
Brunei economy vulnerable to fluctuating international energy prices. Brunei's economy grew at an 
average annual rate of 0.2% during 2008-13 mainly due to lower oil and gas production. 
4.112.  My delegation appreciates that Brunei launched the Brunei Darussalam Long-Term 
Development Plan, Wawasan 2035 or National Vision 2035 in the year 2008 through which Brunei 
aims to achieve annual real GDP growth rates of 5-6%, and that it has established a Vision 2035 
Executive Council in July last year, to intensively assist the efforts of various government agencies in realizing the Vision's goals. We note that under its Vision 2035, Brunei has been working on 
eight-fold strategy, focusing on education, employ ment generation, diversification of its economy, 
development of SME sector, infrastructure development as well as focusing on social and environmental objectives.  
4.113.  We note that Brunei's merchandise exports amounted to US$11,432 million in 2013 
(compared with US$10,543 million in 2008), and imports went up from US$2,574 million in 2008 
to US$3,612 million in 2013. The sh are of India in Brunei's merchandise exports increased from 
3.2% to 7.6% during the period 2008-13. India-Brunei trade was about US$800 million in 
2013-14, and the trade balance remains in favour of Brunei largely owing to high volume of its oil 
exports to India.  
4.114.  During the period under review, under the ASEAN-India Framework Agreement on 
Comprehensive Economic Cooperation, the ASEAN-India Trade in Goods (TIG) Agreement was 
signed on 13 August 2009 and entered into forc e on 1 January 2010. The negotiations on the 
ASEAN-India Trade in Services and Investment agreements were completed in 2012, and the 
agreement entered into force last year. We also have a Bilateral Investment Treaty with Brunei, 
and we are presently engaged in the Regional Comprehensive Economic Partnership (RCEP), a 16-Party FTA amongst the ten ASEAN member States and its FTA partners, namely Australia, China, India, Japan, Republic of Korea and Ne w Zealand. We are confident that trade between 
India and Brunei would continue to grow steadily and become more balanced.       WT/TPR/W/77 • Brunei Darussalam 
 
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  4.115.  India and Brunei enjoy close bilateral ties  and the presence of the Indian community and 
professionals (over 7000 comprising doctors, engineers, IT professionals, bankers, teachers) is a source of strength in expanding mutually beneficial cooperation. With these words, we wish the Brunei Darussalam delegation a productive and successful TPR. 
HONDURAS 
4.116.  Nos complace observar que Brunei Darussa lam aplica aranceles relativamente muy bajos y 
el PIB real correspondiente a los servicios privados pasó del 25% en 2008 al 29% en 2013, 
destacando los subsectores de servicios prestados a las empresas, comercio mayorista y 
minorista, transporte, comunicaciones y finanzas, entre otros. 
4.117.  Notamos que se están haciendo los esfuerzos razonables para establecer una nueva 
legislación relacionada con el comercio en esferas tales como la competencia, los servicios 
financieros, la pesca, la propiedad intelectual y los obstáculos técnicos al comercio, incluyendo el 
primer código de competencia de Brunei sobre un sector específico. Tal es el caso de telecomunicaciones y radiodifusión. 
4.118.  Por otro lado, hacemos énfasis en el establ ecimiento de la Oficina de Propiedad Intelectual 
de Brunei, así como la entrada en vigor en 2011 de una nueva Ley de Patentes, estableciendo un sistema nacional de Patentes. Asimismo, recalcamos los esfuerzos concertados para mejorar la 
observancia de los derechos de propiedad intelectual mediante el aumento de las sentencias de 
multa y prisión. 
4.119.  Destacamos el Foro de Cooperación entre América Latina y el Sudeste de Asia del Este, el 
cual surgió en 1999, y en el que participan veinte Estados latinoamericanos y quince de Asia del 
Este, donde se han intercambiado experiencias  e iniciativas en aras de interés común. 
4.120.  Finalmente, permítame reiterar nuestro reconocimiento por esta nueva oportunidad de 
intercambiar y examinar las políticas y prácticas comerciales de Brunei Darussalam, al mismo 
tiempo desear éxito a las autoridades en la presen tación de su mecanismo de Examen de Políticas 
Comerciales. 
SAUDI
 ARABIA 
4.121.  The GDP of Brunei Darussalam increased over the review period despite a contraction in 
economic activity in 2008-09 as a result of the glob al financial crisis and a reduction of oil and gas 
production in 2013. With a 5.3% GDP growth in 2014 and a planned 1.2% average annual 
increase over the next four years, the economic performance of Brunei Darussalam is promising. 
With a comfortable fiscal surplus, a positive balanc e of payment and a very low public debt level, 
the financial situation of Brunei Darussalam is also sound. 
4.122.  The economy of Brunei Darussalam is highly  dependent on oil and gas but its Government 
has been adopting policies under the National Vision 2035 to promote industrialization, diversify 
the economy and promote "bruneization". 
4.123.  Brunei Darussalam is also to be commend ed for having adopted ambitious reforms over 
the review period that will facilitate trade and economic development. These include: (i) the 
establishment of the Brunei Darussalam Intellectual Property Office, National Standards Council and Autoriti Monetari Brunei Darussalam; (ii) amendments to the Companies Act to attract foreign direct investment and enhance the ease of doing business; and (iii) the adoption of the Brunei 
Darussalam National Single Window system to further facilitate and speed up customs procedures. 
Brunei Darussalam is also developing a competition law and additional legislation on standards that will undoubtedly improve the business enviro nment and contribute to the implementation of 
the National Vision 2035. 
4.124.  The Kingdom of Saudi Arabia and the Sultanate of Brunei Darussalam are both active 
members of the Organization of Islamic Cooperat ion (OIC). Within the OIC's Standing Committee 
for Economic and Commercial Cooperation, they are considering means to develop intra-OIC trade 
and to reinforce the multilateral trading system. WT/TPR/W/77 • Brunei Darussalam 
 
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  4.125.  The Kingdom of Saudi Arabia exports halal food products, including juices, milk and 
cheese. To promote further trade and investment relations, the Kingdom of Saudi Arabia and the Sultanate of Brunei Darussalam established a Joint Economic Committee at the end of last year. The Committee will explore investment opportunities in both countries, particularly in the energy 
sector. 
4.126.  As a founding Member of the WTO, Brunei Darussalam is actively on the bilateral and 
regional fronts, and a genuine supporter of constructive solutions to reinforce a truly multilateral 
trading system. It has welcomed the adoption of the Bali Package and supports the progress made 
in the Doha Development Agenda. 
4.127.  The Kingdom of Saudi Arabia looks fo rward to closely working with Brunei on the 
development of an ambitious Work Programme that will serve the trade, development and 
economic interests of all Members. 
VIET
 NAM 
4.128.  Brunei Darussalam is a very small size country of the world in area and population, but the 
GDP per capita of Brunei Darussalam in recent years is nearly in top ten (12th) of the world, 
mainly due to production and exportation of oil and gas. Since 2008, Brunei Darussalam has implemented several schemes for diversification of the economy from S&D to manufacturing to 
improve business and investment climates in order to soon integrate into ASEAN community and 
global economy.  
4.129.  With the policy of the National Single Wind ow which began to operate in phases from early 
2014, we expect that Brunei will integrate into a wider ASEAN level single window system in near 
future. And, under its National Vision 2035, we believe Brunei Darussalam will achieve its goal in 
diversification of its economy, higher GDP and overall productivity. 
4.130.  With regards to the bilateral economic cooperation between Viet Nam and Brunei, the two 
countries have already signed several agreements from marine to trading and tourist cooperation. 
4.131.  About trading cooperation, I can say that the import-export turnover between the two 
countries has sharply increased in recent five years, from only about US$6 million in 2008 to more 
than US$600 million in 2013. The main exports from Viet Nam are rice and fisheries, and main 
imports from Brunei are oil and chemicals. 
4.132.  About investment, Viet Nam has received  till now more than 140 direct investment 
projects with total invested capital of nearly US$5 billion from Brunei investors, ranking 4th among 
ASEAN and 13th out of hundred countries and territories who have direct investment into 
Viet Nam. 
4.133.  The Governments and traders of the two sides are looking for more opportunities to 
increase the trade and investment relations to higher and higher level. 
4.134.  As an original Member of the WTO and with  high commitments to this multilateral trading 
system, we hope Brunei Darussalam will contribute its more active participation to the conclusion 
of DDA. 
4.135.  In conclusion, we wish Brunei Darussalam success in its third Trade Policy Review and the 
delegation happy and safety return to Bandar Seri Begawan. WT/TPR/W/77 • Brunei Darussalam 
 
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  5  REPLIES BY THE REPRESENTATIVE OF BRUNEI DARUSSALAM AND ADDITIONAL 
COMMENTS 
5.1.  First of all, we would like to thank our discussant and Members for the positive and 
constructive statements during the opening session of this review. We are very pleased to note the 
keen interest Members have taken in our Trade Policy Review. Whilst taking note of all the 
comments and questions posed in your statements, please allow me to address and clarify some, if not all, of the common themes raised during the opening session. 
5.2.  Let me begin with the comments of our discussant, Ambassador Haluk Ilicak. Similar to other 
WTO Members, his remarks have been, in general, very appreciative of our economic performance 
and reforms that have been done during the period under review. Although, he also points out some areas which need urgent improvements. Thes e include ease of doing business, transparency 
in our investment regime, competition law and our notifications to the WTO on matters concerning 
Aggregated Measure of Support and State Trading Enterprises. Brunei Darussalam recognizes the 
importance of these concerns and has also placed a high priority on addressing them. 
5.3.  There were a number of questions and comments from WTO Members about our tariff rates 
and tariff reforms. On closing the difference between Brunei Darussalam's bound and applied tariff rates, we will take this into consideration as we continue to reduce our applied tariffs with the view 
to maintain the policy space for any possible adjustments. In this regard, we would like to 
reiterate that over the years changes to our a pplied rates have continued to be reduced where 
there have been generally no increase an d fluctuations to our applied tariffs.  
5.4.  On transparency in investment regime, I would like to reiterate that FDIs are generally 
allowed in most sectors with the exception of those that are related to our national security and 
contravene our laws and religion. However, we do note the concerns of Members that improvement can still be made on ensuring a more transparent regime particularly through our 
series of bilateral and regional trade negotiations in enhancing predictability and certainty for 
foreign investments. At the sa me time, we have also put a mechanism in place within our 
framework where we engage our stakeholders, in particular our business people, regularly in our 
effort to ensure transparency.  
5.5.  In addition, we are also in the stage of drafting our National Competition law that is in line 
with international best practices and advised by  competition experts from UNCTAD. The law will 
contain key anti-competitive prohibitions and the goal, among others, is to create an efficient 
market conduct and promote overall productivity, innovation and competitiveness of markets in 
Brunei. We are positive that a National Competition Law will be enacted in line with our commitments to the ASEAN Economic Community 2015. 
5.6.  A number of comments have been made relati ng to our rankings under the World Bank Doing 
Business Report. Let me briefly reiterate the improv ements that have been made in this area. We 
have embarked on several initiatives to expedite and facilitate business start-ups and create a 
business friendly environment. One example re cently is the amendment of our Miscellaneous 
License Act in which we have introduced the Business License 2015. The new license will ensure that the submission process will be expedited by centralizing it at the Registrar of Companies at the Ministry of Finance without the need to go to other procedures as required previously. So far, a 
total of 441 business licenses have been issued as of 31 January this year since the Government 
amended laws to shorten the waiting period for businesses to start-up operations.  
5.7.  In further ensuring our commitments in  improving our Ease of Doing Business, our 
committee on the Ease of Doing Business has been actively engaging with relevant stakeholders 
especially our business people in addressing certain areas one of which includes registrations.  
5.8.  At the same time, I note that some Members raised concerns on the role of our State Owned 
Enterprises (SOEs). As I have deliberated during my  opening statement, as well as in our written 
answers to your questions, our SOEs are establ ished to achieve strategic policy objectives, 
economic goals and provide job opportunities whilst at the same time gain economic returns in the 
long-term. If I may reiterate, our SOE operates according to the same requirement as private 
commercial businesses based on commercial principles with good corporate governance practices.  WT/TPR/W/77 • Brunei Darussalam 
 
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  5.9.  Some questions were also raised about the de lay of notifications to the WTO. Firstly, on our 
outstanding notification on AMS, we would like to highlight that agriculture only represents a small portion of our economy in which its share of GDP is about 0.72%. We see that further growth is 
important for us as we are highly dependent on imported foods that accounts for as much as 80% 
of our food supply. Thus, the types of domestic support provided in the field of agriculture are 
primarily targeted to improve the capacity and capability of our local small- and medium size farmers in order to improve their productivity and contribute to the domestic requirements of the 
produce. Therefore, this has negligible impact on the international market. In spite of this, we 
remain committed to our obligations to address the outstanding notification and we look forward to working closely with the WTO Secretariat and inte rested Members in fulfilling these obligations. 
However, taking into account our capacity constraints, we welcome technical assistance from the 
WTO Secretariat and Member economies in carrying out our AMS calculations.  
5.10.  Secondly, on our notification on State Trading Enterprises, we would like to clarify that the 
State Store and Supply Department (SSSD) acts as a body that procures and stores rice and sugar 
for reasons of national food security. Local traders are allowed to import rice and sugar, however, 
there are specific varieties of rice and sugar that  only the SSSD can import, to ensure adequate 
amounts are available for domestic consumption. The SSSD does not export commodity. The SSSD 
therefore functions differently from the State Trading Enterprises defined under the Understanding 
on the interpretation of Article 7 of the General Agreement on Tariffs and Trade (GATT) 1994. 
5.11.  With regard to our notification of acceptance of the Trade Facilitation Agreement, we are 
currently undertaking domestic procedures in su bmitting our notification by the deadline of 
July 2015. In this regard, we have also undertaken other trade facilitation initiatives such as the 
establishment of a National Trade Repository and a programme of Authorized Economic Operators.  
5.12.  In conclusion, I would like to reiterate our appreciation for the time and effort that the 
Chair, our discussant and Members have given into making our review a productive and interesting 
one. We feel that the TPR is a very useful platform for us to see the improvement have been made to our economy and trade regimes over the past  few years and at the same time examine the 
areas we are seen lacking.  
5.13.  I would like to once again take this opportunity to thank the WTO Secretariat for their 
tireless effort in producing a comprehensive report. We truly appreciate your dedication and professionalism. Last but not least, I would like to thank our Mission here in Geneva under the 
leadership of His Excellency Dato Mahdi Rahman, as well as my team here today and back in the 
capital for all their hard work. 
DISCUSSANT 
5.14.  I believe that we had a fruitful discussion on the trade and investment policies of Brunei 
during the first day of review and I thank all participants for their comments and contributions to the discussions. 
5.15.  I would like to briefly sum-up the points which drew my attention and make an overall 
assessment. 
5.16.  First of all, I observed with satisfacti on that an open trade regime and the further 
commitment of Brunei to trade liberalization both in multilateral and regional fora received the 
appreciation of the Membership. Many Members pointed out the positive engagement of Brunei in 
the recent WTO Trade Facilitation Agreement, as well its active involvement in the ASEAN and TPP.  
5.17.  Besides this appreciation, one Member (EU) mentioned about the export restrictions and 
prohibitions applied by Brunei for some products; while other Members expressed its expectation 
for the elimination of import restriction of few products. The gap between the overall bound tariff rates and the applied MFN tariff rates was also emphasized during discussions. 
5.18.  Secondly, many Members raised the need fo r further improvement of the investment regime 
and the business climate. In this regard, while the steps taken by Brunei especially on IPR legislation and enforcement were praised by many Members, the weak situation of Brunei in terms 
of Doing Business indicators of the World Bank has also been pointed out. Moreover, concerns WT/TPR/W/77 • Brunei Darussalam 
 
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  have been raised on the lack of transparency in the permit system for FDIs and more specifically, 
one Member asked for clarification about the criteria for allowing foreign investments in distribution, banking and telecom sectors. Some Members put also a special emphasis on price controls, subsidies and public purchasing policies which could have negative effects on the private 
sector participation in the economy.  
5.19.  Thirdly, without any surprise, many Memb ers expressed their concerns about the energy 
dependency of Brunei's economy and their support to the efforts of the Government to diversify 
the economy. Indeed, I firmly believe that over coming the oil and gas dependency is the main 
challenge before the Brunei to further continue sustainable economic development in upcoming years. As mentioned by one Member, the domination of the public sector on employment is also an important issue to be addressed as part of the diversification strategy. 
5.20.  My overall assessment is that Members participating in the discussion appreciate the 
commitment of Brunei to maintain an open trade regime as well as its efforts to improve its investment and business climate to diversify its economy. In this sense, taking into account the 
National Vision 2035, I may say that Brunei is on the right track. 
5.21.  I would like to express that it has been a pleasure and honour for me to act as discussant 
for the TPR of Brunei. I would like to thank the Secretariat for its technical assistance and 
contribution before and during the TPR. My sinc ere thanks go to the Brunei Government and, in 
particular, to Permanent Secretary, H.E. Dato Paduka Lim Jock Hoi for his comprehensive and clear answers and information which makes the third TPR of  Brunei a successful one. I would also like to 
thank you, Madam Chair, for your able conduct of the meeting. The considerable and sincere 
e n g a g e m e n t  o f  B r u n e i  i s  f o r  s u r e  a n o t h e r  s i g n  o f  c o m m i t m e n t  t o  a n  o p e n  m u l t i l a t e r a l  t r a d i n g  
system.  
EUROPEAN
 UNION 
5.22.  The EU would like to thank the delegation of Brunei Darussalam for the replies provided in 
advance of the meeting, we found them very useful  and they made the meeting more interactive.  
5.23.  However, we found that certain answers were not quite sufficient and comprehensive to 
contribute to a better understanding of the rationale of certain measures or of the impact on trade. 
5.24.  Given that the TPR is aimed at ensuring that we all know more after the meeting and can 
improve our policies, the EU has prepared a few follow-up questions, in particular on excise duties, export and import restrictions, and on the future role envisaged for SOEs in the Government 
intentions to further diversify the economy. The EU is also eager to see how and to what extent 
the future Competition Law may address SOEs and ensure a more level playing field among private and state-owned operators. 
5.25.  We have submitted our follow-up question s to the Secretariat and look forward to the 
replies in due course. 
THE
 SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
5.26.  I would like to congratulate the delegation of Brunei Darussalam led by H.E. Dato Paduka 
Lim Jock Hoi which has presented an excellent interp retation of the trade policies of Brunei within 
the last years. 
5.27.  I would like to mention that during my stay in Brunei in 2010 and 2012 I really witnessed 
the open door policy by Brunei Darussalam and its excellent Government. We found that there 
were many industrial zones in Brunei Darussalam with an open policy that attracts foreign investments.  
5.28.  I found that these zones attracted a lot of investors but there is still a limit which I would 
like to mention. The efforts from His Majesty are we lcomed. However, we find that the initiative is 
still very limited. For example, concerning Chinese Taipei, we find that a lot of incentives are still 
subjected to too many conditions. As raised by the colleagues attending this meeting, it infringes 
on transparency and efficiency.  WT/TPR/W/77 • Brunei Darussalam 
 
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  5.29.  We always admired Brunei Darussalam and its active role bilaterally and regionally. We 
would like to mention that Chinese Taipei could reach with Brunei Darussalam the same economic cooperation policy like it has with Singapore and New Zealand which can assure Taiwanese investors that there is a legal framework undertaken to promote bilateral, even regional economic 
ties. WT/TPR/W/77 • Brunei Darussalam 
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  This third Trade Policy Review of Brunei Darussalam has provided an excellent opportunity to 
consider the evolution of Brunei's trade and investment regime since its last review in 2008, and t h e  c h a l l e n g e s  i t  n o w  f a c e s .  I  w o u l d  l i k e  t o  t h a n k  H . E .  D a t o  P a d u k a  L i m  J o c k  H o i ,  P e r m a n e n t  
Secretary of the Ministry of Foreign Affairs and Tr ade; H.E. Dato Mahdi Rahman and the rest of the 
delegation of Brunei Darussalam, for their active and constructive engagement in this review. I would also like to thank H.E. Mr. Haluk Ilicak for his valuable insights as discussant. Brunei's 
written answers to 163 advanced written questions have been appreciated by Members. They also 
welcomed Brunei's adoption of the alternative time-frame for questions and answers, which allowed for a more fruitful discussion, and looked forward to the answers to outstanding questions 
no later than one month after this meeting. 
6.2.  First of all, I would like to note that this has been a positive review. Members have praised 
Brunei Darussalam for having further simplified and liberalized its trade regime, notably by reducing its average MFN applied tariff from 4.8% in 2007 to 1.7% in 2014. Despite the global 
economic crisis, macroeconomic indicators have remained sound during the review period, with 
low inflation rate, strong fiscal position, and current account surplus. In light of the current low world oil prices, Members encouraged Brunei to accelerate the pace of the diversification of its 
economy away from its hydrocarbon resources.  
6.3.  Brunei Darussalam has also been encouraged to reduce remaining restrictions and barriers to 
FDI, and promote a more business-friendly environm ent so as to increase the participation of the 
private sector in the economy, which remains limited. To this effect, Brunei indicated that it will 
establish government-linked companies to serve as catalyst in areas where the private sector has 
been constrained by lack of access to technology and resources. 
6.4.  Members appreciated Brunei Darussalam's strong support for the multilateral trading system, 
having already notified its Category A commitments under the recent Trade Facilitation 
Agreement. At the same time, Members took note  of Brunei Darussalam's active use of regional 
and bilateral trade agreements to deepen its inte gration into the global economy. It was noted 
that Brunei has never used trade remedy measur es nor was it subject to WTO trade dispute 
proceedings. Members encouraged Brunei to address its outstanding WTO notifications.  
6.5.  Brunei Darussalam was commended for moving ahead with significant legislative and 
regulatory reforms. These reforms have included strengthening the legal frameworks in areas such 
as business environment, financial services, fisheries, intellectual property, and TBT. Members 
encouraged Brunei to complete additional legislation on competition, while promoting greater transparency of government decision making on trade policy matters. 
6.6.  Against this general positive economic outlook and overall favourable assessment of the 
trade policies of Brunei, the Review has also hi ghlighted some areas of possible improvements. 
Areas for attention brought up by Members during the Review, either through the question and 
answer process or through their statements, include the following: 
 Customs procedures : Members were pleased about the ongoing reforms in the area of 
customs procedures; in particular the introduction of both e-Customs and the National Single Window.  
 Tariff and excise duties : Despite Brunei's low MFN applied tariff, Members noted that the 
bound rates were significantly higher than the applied rates, and this could limit the 
predictability of the tariff regime. Questions were asked about the rationale for Brunei to 
have increased the coverage of excise duties. 
 TBT and SPS measures : Clarification was sought on specific issues such as the Halal 
Certificate and the establishment of the National Standards Council. Members raised a 
number of questions and requested Brunei Darussalam to make further efforts to enhance 
transparency and notifications in the elaboratio n and implementation of technical regulations 
and SPS measures. WT/TPR/W/77 • Brunei Darussalam 
 
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   State-trading, state-owned en terprises and privatization : Against the background of 
the important role played by the State in the economy, some Members asked Brunei to notify its state-trading enterprises to the WTO. 
 Government procurement : Brunei was invited by some delegations to join or become 
observer to the GPA. 
 Intellectual property rights : Members appreciated efforts by the Bruneian authorities to 
strengthen the enforcement of IPR protection, and encouraged Brunei to further improve it 
by, inter alia, strengthening its institutional framework. Questions were raised in respect of 
Brunei's new Patent law.  
 Agriculture : Despite limited arable land, some delegations noted that further participation 
of foreign investment in the sector would help Brunei to achieve its food security and self-
sufficiency objectives.  
 Energy : Members took note of Brunei's plans to further strengthen upstream and 
downstream activities; ensure secure, reliable and efficient supply of energy; and maximise 
economic spin-offs from the energy industry. Energy subsidy reform was also mentioned as 
a way to reduce the distortions affecting Brunei's efforts at diversifying its economy. 
 Services : Members encouraged Brunei to increase its GATS commitments as services, 
notably tourism, telecoms, construction, finance and transportation held particular potential 
for growth and diversification of the economy. 
6.7.  Overall Members were pleased with the strategy that is under way in Brunei Darussalam as 
outlined in its National Vision 2035, as well as the manner in which open trade and investment 
regimes formed part of this strategy, as this would allow Brunei to develop and further reduce its 
dependence on one sector. It was important to not lose sight of these medium- and long-term goals while at the same time keeping markets open, promoting business development, further 
liberalizing the investment regime, providing adequate intellectual property protection, and 
encouraging a more level playing field in the economy between state-owned enterprises and private entities, foreign or domestic. The many questions posed and the participation of a large 
number of delegations in this meeting reflects Members' substantive interest in the trade policies 
and practices of Brunei Darussalam. 
6.8.  Finally, let me thank again the Bruneian delegation for their hard work and dedication to this 
exercise, and to the other delegations, the discussant, the Secretariat and the interpreters for this 
successful review.  
 
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