RESTRICTED  
  
WT/TPR/G/378  
11 September  2018 
(18-5598) Page: 1/10 
Trade Policy Review Body   Original: English  
 
 
TRADE POLICY REVIEW  
REPORT BY  
VANUATU  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
Vanuatu  is attached.  
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Vanuatu . WT/TPR/G/378 • Vanuatu  
 
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  Contents  
1   MACROECONOMIC PE RFOMANCE  ................................ ................................ .................  3 
2   TRADE POLICIES AND P RACTICE  ................................ ................................ .................  4 
3   TRADE POLICIES BY SE CTOR  ................................ ................................ .......................  4 
4   TRADE POLICY – INSTITUTIONAL FRAMEW ORK ................................ ..........................  7 
5   TRADE POLICY IMPLEME NTATION  ................................ ................................ ..............  8 
6   ECONOMIC ENVIRONMENT  AND FACTORS INFLUENC ING TRADE  ................................  8 
7   CONCLUSION ................................ ................................ ................................ ...............  9 
 
 
  WT/TPR/G/378 • Vanuatu  
 
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  1  MACROECONOMIC PERFOM ANCE  
1.1.  Vanuatu's economic growth in 2017 was revised upwards by 0.2 percentage point from 4.3% 
in budget to 4.5% in April 2018. The economy is estimated to expand by 3.4% in 2018 followed 
with a further 3.2% growth in 2019 before normalizing to 2.6% growth in 2020.  
1.2.  The current projection show that 2018 growth will be driven by services sector with a 
contribution to growth of 2.0% followed by a 0.8% growth contribution from the industry sect or 
with the agriculture sector expected to contribute growth of around 0.5% to 2018 projected Gross 
Domestic Product (GDP).  
1.3.   Expectations for copra and kava to maintain production momentum after surge in 2016 due 
to supply shocks and improved demand condi tions driving prices higher. Recently, copra prices 
have weakened due to improved global supply conditions having direct feed into the domestic 
supply chain.  
1.4.  Despite decline in global copra prices, closely traded commodities such as cocoa, coffee, kava 
and beef production are expected to partially offset possible loss of foreign earning inflows. Given 
the increasing and unpredictable impact of natural disasters in the country, domestic production is 
likely to be very volatile thereby imposing strains on policy making especially on the productive 
sector. The Government has shifted attention towards the productive policy to assist farmers to 
produce disaster resilient crops  
1.5.  Vanuatu experienced a construction boom since 2016 which has contributed in sustaini ng the 
economy. The overwhelming support from development partners combined with stability in the 
Government has restored confidence and at the same time reinforced implementation of 
infrastructure development projects. This has created much needed employm ent in the industry 
sector; with spillover effects felt throughout the economy. This is very important as the 
Government continues to embark on infrastructure development policy to facilitate trade and at 
the same time safeguard Government policy on inclus ive and sustainable infrastructure 
development.  
1.6.  The services sector has recovered after the impact of Tropical Cyclone Pam. Tourism arrivals 
have been driven by day arrivals with persistent challenges with air arrivals. The gradual increased 
in air arrival s is however inconsistent with the occupancy rates at Vanuatu's hotels and 
accommodations.  
1.7.  A noticeable trend is slowly emerging with more air arrivals visiting friends while others 
returning home, especially foreigners with properties in Vanuatu. In addi tion, an increase in 
Foreign Direct Investment has been noted boosting growth in the real estate and finance and 
insurance sector. With all these developments, the sector is projected to expand by 3.1% in 2018 
before normalizing at average 2.3% over the 20 19-2020 periods.  
1.8.  The Reserve Bank of Vanuatu gradually tightened its monetary policy stance in May 2018. 
The Bank's policy rate was increased from 2.85% to 2.90% and its Statutory Reserve Deposits 
ratio increased from 5.00% to 5.25%. The Liquid Asset Ratio  continued to be maintained at 5.0%. 
The gradual tightening in monetary policy stance was necessary given the accumulation of excess 
liquidity in the banking system and the expected build up in inflationary pressures.  
1.9.  Macroeconomic stability was achieved in 2017 through to the first three months of 2018, as 
the two main objectives of monetary policy; foreign reserves and inflation remained within targets. 
Foreign reserves is currently sitting at over 8 months of projected import were well above the 
minimum  threshold of 4 months of import cover.  
1.10.   The banking system's liquidity continued to remain at elevated levels reflecting the 
continuous built up in excess reserves. The accumulation of excess reserves was associated with 
easing monetary policy stances, sub dued economics conditions as portrayed by the persistent 
weak growth in private sector credit and net inflows of foreign reserves to the Reserve Bank of 
Vanuatu (RBV).  WT/TPR/G/378 • Vanuatu  
 
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  1.11.   Money growth was steady throughout 2017 to the first three months of 2018, driven mainly  
by net foreign assets and slight pickup in domestic credit. The slight pickup in domestic credit 
reflected to a large extend liquidity injection created by the fiscal authority, increase in domestic 
credit and to a lesser extent, the pickup in credit exte nded to individual and households.  
1.12.   Vanuatu's inflation remained well within the target of 0 -4% range in December quarter 
2017. An increase in domestic food prices specifically fruits and vegetables led to increased food 
prices, and the slightly stronger fu el prices contributed to increased prices of transport and utilities 
with year on year inflation recording 3.5% in the September quarter and 3.2% in the December 
quarter of 2017. Year on year headline inflation is forecasted to increase in 2018 above the t arget 
band of 0 -4%, pushing beyond 5.0% for the March quarter of 2018 before receding to above 4 % 
by December quarter 2018 and lower in 2019.  
1.13.   The inflation is primarily driven by the on off effect of the increase in public salaries and 
wages on demand. On  the downside, the expected weakening in demand driven construction 
activities related to ongoing donor funded infrastructure projects has reduced the output gap. The 
recent increase in import commodity prices and slightly higher fuel prices are upside ris ks to 
inflation forecast.  
2  TRADE POLICIES AND P RACTICE  
2.1.  Vanuatu is an island archipelago located in the South Pacific and consisting of 80 islands 
stretching over a distance of about 1,300 km. Vanuatu's climate ranges from hot humid tropical in 
the north to sub-tropical and almost temperate in the South.  
2.2.  Vanuatu is classified as a Least Developed Country (LDC), mostly due to its high vulnerability 
to natural shocks. As tragically reminded by the events linked to the 2015 Tropical Cyclone PAM, 
Vanuatu is one of the most cyclone -prone counties on earth. Earthquakes and tsunamis are also 
frequent, and active volcanoes are found on several islands. A recent global risk analysis found 
that Vanuatu's capital Port Vila is the world's most exposed city to natural dis asters. Despite this, 
Vanuatu has managed to achieve relatively good levels of economic development.  
2.3.  Looking at Vanuatu from a trade perspective, it is evident that, a services based economy 
has emerged and growing. Services contribute for around 69% to t he GDP and provide decent 
employment opportunities to the increasing urban population –although estimates are sometimes 
conflicting, services sector employs between 30% and 40% of the local population.  
2.4.  The crucial role of services is also evident observin g how, during the past decade the 
increasing deficit in merchandise trade was offset by the growing surplus of the services account - 
80% of which was due to exports of tourism services. During the past 10 years "information and 
communication", "transport"  and "retail trade" were the fast -growing service sub -sectors. The 
performance of the last two sub -sectors, as well as of "accommodation and food" services, was 
clearly boosted by the positive trends in tourism arrivals.  
2.5.  To exploit the significant opportun ities provided by regional and international markets, the 
government embarked on an ambitious "trade mainstreaming" program aimed at ensuring that 
trade -related policies can inform the decision -making process of all the entities whose decisions 
influence t he country's development agenda.  
3  TRADE POLICIES BY SE CTOR  
3.1.  Commodity export price and external demand continues to drive the production sector in 
2016 and 2017. The production in this sector is estimated to increase by 4.9% in 2016 following 
the recovery ef forts made after Tropical Cyclone Pam and EL Nino's impact in 2015. Growth in the 
sector is expected to remain solid at 4.7% in 2017, 3.1% in 2018 and maintain a stable growth of 
2.9% in 2019 and 2020 respectively. Despite these developments, the agricultu re sector continues 
to experience challenges in production including climate change events and other external shocks.  
3.2.  Crop production is mainly driven by gardens and root crops. Copra, kava, cocoa, and coffee 
production continues to remain solid given thei r strong domestic demand and stable export prices 
thus boosting farmer's spending power within the domestic economy. The solid commodity price WT/TPR/G/378 • Vanuatu  
 
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  continued to fall in 2017 but production is expected to grow at 5.0 % driven mostly by the growth 
in kava exports .  
3.3.  Kava production has been an increasing demand both domestically and externally due to 
supply shortage that continues to drive prices upwards. Recent surveys show a high kava 
replanting rate in most kava producing islands due to its consistent domestic a nd export markets. 
This has resulted in higher income for farmers and is also expected to boost its production over 
medium term.  
3.4.  A high stable export price of copra is the main driver of production and prices are expected to 
remain solid over the medium te rm as forecasted by IMF. In recent years, coconut replanting 
programs have been addressed by the Government due to a declining trend in production, 
following ageing coconut trees. Cocoa production was grown by 12.0 % in 2016; however growth 
declined in 201 7 following impacts from Tropical Cyclone Dona in early 2017.  
3.5.  The Government strategy for alleviating the proportion of the population living under poverty 
is expressed in the vision of the Overarching Productive Sector Policy which states that "through 
substantial increase in primary production, processing and value adding there will be good jobs 
and income for a very significant number of Ni - Vanuatu".  
3.6.  Copra is Vanuatu's main agricultural export commodity outweighing the contribution of cocoa 
and kava by a large degree. Despite this dominancy, there is a general observation that in all the 
major copra producing islands, coconut rehabilitation programs have remained stagnant over the 
last 30 years with only a very small percentage of farmers engaging in coc onut replanting 
programs.  
3.7.  Over the last 10 years, world prices for cocoa have greatly increased and on the domestic 
market the demand for kava has remained very high. The production of kava is still very high 
while cocoa has declined over the last 10 years . The local consumption of kava is huge although a 
definitive figure has never been given to this market sector. However, it is estimated that local 
sales value is about three times the value on export. This trend is likely due to the current high 
demand i n the domestic market  for vegetables and other short -term crops (to supply a growing 
tourism sector) and is causing a notable shift in agric ultural crops used. These short -term crops 
are also beneficial for addressing food insecurity and other risks associ ated with traditional longer 
growing crops.  
3.8.  Decline in production is also related to factors such as access to land, lack of improved 
farming skills, soil infertility, climate vulnerable varieties of crops and difficulties associated with 
accessing credit.  The amount of credit approved by the Vanuatu Agriculture Development Bank 
(VADB) in recent times for farm development constituted 33% of total funds. Of this amount 55% 
credit applications were approved for cattle farming. Of the portion of credit granted  to agricultural 
initiatives, a large percentage was intended for investment in traditional cash crop (copra, kava 
and cocoa). This may be an indication that financial institutions in Vanuatu regard medium or large 
agricultural investment carry a much high er risk or that financial literacy and access to credit can 
be improved to take advantage of potential and profitable markets.  
3.9.  Expanding into new cash crop markets requires increased knowledge, improved farming skills 
and a consistent supply of sufficient seeds and planting materials to sustain production. Research 
field work conducted by the Vanuatu Agriculture Research and Technical Centre (VARTC) and 
locally -based researchers into varieties of taro and yam on major producing islands have found 
that Vanua tu is facing conservation and genetic improvement issues. If taro and yam are 
promoted as cash crops, the loss of genetic diversity may become a barrier for increasing 
production.  
3.10.   Vanuatu's inability to increase and sustain agricultural production is exace rbated by the 
negatives effects of climate change and climate variability. With temperatures increasing, seasonal 
rainfall patterns shifting, and extreme events more frequent and severe, the incidence of heat, 
water, pest/disease and soil fertility stress are drastically hampering already risk prone production. 
While agricultural climate adaptation programs are now widespread (e.g. via SPCGIZ, the World 
Bank and others) there is still a severe deficit in climate knowledge, information, technology and 
implem entation for vulnerable farmers.  WT/TPR/G/378 • Vanuatu  
 
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  3.11.   Vanuatu recognizes the priority need for fisheries management, and advancing small -scale 
sustainable domestic fisheries and aquaculture developments using local operations around its 
provinces. In addition, Vanuatu acknowle dges the need for larger commercial fishing ventures that 
promote employment and improves lively -hoods, and ensure food and nutrition security. About 
80% of Vanuatu's population live in rural areas and depend heavily on coastal fisheries for their 
liveliho od and food security. Vanuatu policy seeks to promote community -based and co -
management approaches to coastal fisheries. As Vanuatu's human population continues to grow, 
diversification of fishing activities and development of alternative food and liveliho od opportunities 
are critical to support increased production.  
3.12.   Vanuatu continues to expend its efforts to work closely with private and business sector 
interests to increase possible opportunities in fishing, fisheries and aquaculture. Vanuatu embraces 
a balanced approach fisheries and biodiversity through sustainable conservation, management and 
development. The Policy focuses on improving fisheries governance and sustainable and 
economically viable fisheries and aquaculture, access to finance: improved i nfrastructures, market 
access, seafood safety and value -adding and sustainable growth, employment, food security and 
livelihood.  
3.13.   A Vanuatu National Industry Policy (NIP) provides the broad guidelines as to how industries 
and local manufacturing industries are developed and supported. It also sets out the framework 
supporting promotion and protection of infant manufacturing industries in Vanuatu.  
3.14.   In year 2013, the Government of Vanuatu has developed a National Energy Road Map 
(NERM) with a view to energizin g Vanuatu's growth and development through the provision of 
secure, affordable, widely accessible, high quality, and clean energy services. At that time, the 
NERM identified five priorities for the energy sector: access, petroleum supply, affordability, 
energy security, and climate change. It sets out objectives, targets and actions to achieve these 
priorities and contribute to the NERM's overall vision. Differences in energy access match the 
differing levels of development in urban and rural areas.  
3.15.   The se ctor is regulated by the Telecommunications and Radiocommunications Regulation 
Act No.  30 of 2009. In accordance with the Act, a Telecommunications and Radiocommunications 
Regulator (TRR) was established in 2009 to be the sector regulator issuing licenses to 
telecommunication and radio -communication service providers. In 2015 the Consumer Protection 
Regulation came into force. Any person, local or foreign, may apply for a telecommunications 
licence. Current practice sees licences are valid for 15 years and are subjected to renewal, where 
required, and approved by the Regulator and in accordance with section 15 of the 
Telecommunications Act, 2009. TRR charges a licence fee which is part of the licensee's obligation 
and is set at a rate of 2.25% of the License e's quarterly gross revenue. This licence fee is payable 
by all registered licensees (domestic or foreign owned) on a quarterly basis.  
3.16.   Vanuatu has 29 airports. Airports Vanuatu Limited (AVL), a corporate set up and fully 
owned by the Government and oversi ghted by the Civil Aviation Authority Vanuatu (CAAV), 
operates the three international airports at Port Vila (Bauerfield), Luganville (Pekoa), and Tanna 
(Whitegrass). The Vanuatu Terminal Services Limited (VTSL), a subsidiary company under and 
fully owned by the AVL, provides, inter alia , international terminal cargo and freight forwarding 
services and aircraft ground handling services.  
3.17.   The Vanuatu Maritime Sector Regulator bill was passed in parliament in 2016 thus the 
power to establish the Office of the  Maritime Regulator (OMR). The office of the Maritime Regulator 
was formally opened on the 1st of July 2017. The focus is to promote safety and security within 
Vanuatu waters, and to improve access to its port infrastructure and services.  
3.18.   The law governin g government procurement requires is based on the Vanuatu Tenders 
Board Act. The Tenders Board Act requires that government procurement must follow the 
principles of seeking the best value for money, and seeking to promote open and effective 
competition. G overnment procurement is grouped into two types: low -value procurement (the 
value is below VT 5 million), and high -value ones (the value is equal to or above VT 5 million). In 
Vanuatu, under the Government Contract and Tenders Act, there is no discriminato ry/preference 
clause for preferences to procurement from domestic suppliers. Domestic and foreign suppliers are 
all treated the same.  WT/TPR/G/378 • Vanuatu  
 
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  3.19.   There are currently seven active State -Owned Enterprises (SOEs) to locally as commercial 
government business enterprise ( CGBEs), operating in Vanuatu and those are Air Ports Vanuatu 
LTD, Air Vanuatu, National Bank of Vanuatu, Vanuatu Agriculture Development Bank, Vanuatu 
Broadcasting and Television Corporation, Vanuatu Post and National Housing Corporation. 
According to the IMF, Commercial Government Business Enterprises (CGBEs) play an important 
role in the economy; they account for about 7 -8% of the total stock of fixed capital, and dominate 
several sectors including banking, broadcasting, post services, and transport. In 2 014, the CGBEs 
contributed 2% to GDP. Among the seven CGBEs, the three largest ones are National Bank of 
Vanuatu, Air Vanuatu (Operations) LTD, and Airports Vanuatu LTD) comprised 96% of total CGBEs 
assets.  
3.20.   In 17 April, 2017, the Bureau of Standards Act No .14 of 2016 entered into force. In August 
2017, the Vanuatu Bureau of Standards was established under Ministry of Tourism, Trade, 
Industry, Commerce, and Ni -Vanuatu Business. The functions and the role of the Bureau of 
standards are to oversee the developm ent and adoption of standards, conformity assessment of 
traded goods and processing facilities, manufacturing of goods and the accuracy of weights and 
measures used in trade.  
3.21.   Vanuatu's Biosecurity Department under the Ministry of Agriculture, Livestock, Fo restry, 
Fisheries and Biosecurity (MALFFB) was formerly known as the Vanuatu Quarantine and Inspection 
Services until 2013. Its two main offices are located in Port Vila and Luganville, with outposts 
located at the "approved Ports of Entry. The Ports of En try were certified and approved by the 
Council of Ministers and it is where foreign vessels are allowed entry and exist. International 
disciplines and standards are adhered to by the Biosecurity Services Department.  
3.22.   Vanuatu's competition policy is the app roach taken to promote market structures, 
conditions and conduct that will foster economic growth and total welfare by facilitating regulatory 
barriers to competition, pro -competitive procurement and enforcement of such measures.  
3.23.   Information and communicat ion technology (ICT) development in Vanuatu faces a number 
of challenges, particularly geographical and topographical challenges as the population is diffused 
across numerous islands. Alongside this line, the Government launched Universal Access Policy 
(UAP), with a target of making ICT available to 98% of the population by 2018. As part of the ICT 
policy, both the private and the public sectors have been implementing projects to further enhance 
the ICT sector. These include the Government Broadband Network  (which connects all provinces), 
the Integrated Government (iGov) initiative, and the E -Government Strategic Roadmap.  
3.24.   Tourism is a significant contributor to the country's GDP with tourism related activity 
estimated to contribute 20% of GDP supporting job s. Both air and cruise ship passengers are 
important markets for Vanuatu. Just under 90,000 air arrivals were recorded in 2015, a decline of 
17%. This decline was primarily due to the impacts of Cyclone Pam. Data indicated that the 
market has declined in 2 016 as a result of reduced air services from Australia and New Zealand 
but now is now showing some growth.   
4  TRADE POLICY – INSTITUTIONAL FRAMEW ORK 
4.1.  Trade in Vanuatu is guided by the Trade Policy Framework, which is the overarching sector 
policy for Trade. The objectives of the Vanuatu Trade Policy Framework are to: mainstream trade 
into Vanuatu's national development strategy; enhance development through increased exports of 
goods and services; guide and inform the workings of Vanuatu's National Trade Devel opment 
Committee; inform trade negotiations; and facilitate increased inflows of Aid for Trade (AfT). 
Policies on trade in services are current for Energy Services, Tourism Services, and Education 
Services where they impact on the export of services by Van uatu. 
4.2.  Trade formulation and coordination of Vanuatu's international trade policy is under the 
authority of the Ministry of Foreign Affairs, International Cooperation and External Trade and is 
responsible for bilateral, regional and multilateral trade and i nvestment negotiations.  
4.3.  Other ministries, departments and agencies involved in trade -related activities include: the 
Ministry of Trade, Tourism, Industries and Ni -Vanuatu Business; the ministry of Finance and 
Economic Management; the Ministry of Agricultu re, Livestock, Forestry, Fisheries and Biosecurity; WT/TPR/G/378 • Vanuatu  
 
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  the Ministry of Infrastructure and Public Utilities; the Ministry of Lands and Natural Resources; the 
Ministry of Climate Change and Natural Disaster; the Reserve Bank of Vanuatu; and the Vanuatu 
Investme nt promotion Authority.  
4.4.  Vanuatu is party to some reciprocal regional trade agreements (RTAs), and it also benefits 
from some non -reciprocal preferential trade arrangements (PTAs) including the Generalised 
System of Preferences (GSPs) offered by some WTO Me mbers. Australia and New Zealand provide 
duty-Free and quota -free market access to Vanuatu exports und er SPARTECA, while the 
European  Union provides duty -free and quota -free access to Vanuatu exports under the 
Everything -But-Arms (EBA) regulation and GSP.  
5  TRADE POLICY IMPLEME NTATION  
5.1.  On 24 August 2012, Vanuatu became the 157th Member of the WTO. Vanuatu committed that 
it would fully apply all WTO provisions from the date of its accession, and did not require recourse 
to any transitional period except on inte llectual property and on the publication of trade 
information. Vanuatu bound all of its tariff lines, and the average final bound rate is 40.2%. It 
grants at least MFN treatment to all its trading partners. Vanuatu made specific commitments on 
10 services sectors.  
5.2.  The 2018 tariff schedule comprises 5,502 tariff lines at the eight -digit level. The tariff 
nomenclature is based on the Harmonized Commodity Description and Coding System (2017). The 
only non -ad valorem  tariff rates concern two tariff lines at the  eight-digit level and involve specific 
duties; ad valorem  equivalents were provided by the authorities. The simple average applied MFN 
rate increased slightly during the review period, from 9.2% in 2012 to 9.3% in 2018.  
5.3.  26% of all tariff lines are duty fr ee. Around 24% of all tariff lines carry an MFN rate of 5%, 
some 16% have a rate of 10% duty rate, and around 23% have a tariff rate of 15%. The highest 
ad valorem  rates, of 75%, 55%, and 40%, apply on 56 tariff lines comprising tobacco products 
and alcoho lic and non -alcoholic beverages. Tariff escalation exists between semi processed and 
fully processed goods.  
5.4.   A value -added tax of 15% applies on all goods and services unless otherwise exempted or 
zero-rated. The VAT amounted rate to 15%. This domestic tax  applies to imported and 
domestically produced goods alike. On imports, VAT applies on the c.i.f. value of goods plus 
customs duties. VAT on imported goods is payable at the same time as customs duty. Imports are 
not charged with VAT if they are valued at VT 10,000 or less.  
6  ECONOMIC ENVIRONMENT  AND FACTORS INFLUENC ING TRADE  
6.1.  Vanuatu's economy has been hit hard in 2015 after Tropical Cyclone  Pam including the 
el-Nino effects which have redirected policy makers to refocus on policy priority that will assist 
with the recovery, rehabilitation and reconstruction over the medium term. The agriculture sector 
(mainly fruit trees, root crops, cocoa, coffee and forestry) had severely affected farmer's income in 
both medium and long term.  
6.2.  On the upside the favorable ext ernal conditions of commodity prices in early 2016 continue 
to add value to domestic production with incentives to raise production for export. The government 
had help in implementation of priority policy measures roll out in late 2015 and 2016 going 
forwa rd to address sectors affected by the natural disasters through the national sustainable 
development plan goals and objectives (2016 -2030).  
6.3.  With these developments, the agriculture sector is expected to grow by 0.9 and 0.3% in 
2016 and 2017 respectively a nd return to normalcy in 2018 – 2019. As normalcy in business cycle 
starts to gather momentum, correction in market forces are expected at play supported with stable 
domestic demand that should drive domestic production going forward.  
6.4.  Vanuatu's policy docu ment Vision 2030 sets its target of achieving a stable, sustainable and 
prosperous country within the next 15 years (from 2016 to 2030), through, inter alia , encouraging 
trade, promoting investment, and providing economic opportunities for all members of s ociety.  WT/TPR/G/378 • Vanuatu  
 
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  6.5.  It aims to, inter alia , increase trade and investment opportunities and reduce barriers, 
including through the use of Aid -for-Trade; increase access to markets for Vanuatu exports; 
require all new trade agreements to demonstrate tangible benefits in the national interest; and 
stimulate economic diversification to spread the benefits of growth and increase economic stability.  
6.6.  Vanuatu will reach its six (6) years of membership in August 2018 after acceding to the WTO 
on the 24th August 2012. Since it s accession, Vanuatu has not been involved in any WTO dispute 
settlement cases either as complainant, respondent, or as a third party.  
6.7.  Vanuatu continues to strongly support its commitment to the multilateral system and that 
Vanuatu rejects the unilateralis m that is being permeated by some countries. Vanuatu voiced that 
by joining the WTO, it is joining the international community to support a rules based system 
covering international trade and commerce and rejecting a law of the jungle scenario.  
6.8.  As an LDC w ith impending graduation from LDC status and as a recipient of Aid for Trade, 
Vanuatu maintains its call on the WTO community to continue to support Vanuatu on AfT needs. 
The call also includes EIF funding support for Vanuatu to continue long after LDC gra duation. As an 
LDC, Vanuatu enjoys the Special and Differential Treatment, which means that the country is able 
to take on obligations which are much less stringent and also enjoy benefits that would not 
otherwise be accorded.  
6.9.  An aim for Vanuatu, post LDC  graduation, is that once preferences are taken away and more 
stringent international obligations are imposed, Vanuatu will continue to access the support and 
assistance from the international community for development needs and that the Special and 
Differ ential treatment can apply.  
7  CONCLUSION  
7.1.  Vanuatu's development aspirations are based on a vibrant cultural identity underpinning a 
peaceful, just and inclusive society and that it is supported by responsive and capable state 
institutions delivering quality public services. It recognises maintaining a pristine natural 
environment on land and at sea that serves food, cultural, economic and ecological needs with 
enhanced resilience and adaptive capacity to climate change and natural disasters. A stable 
economy that is sustainable and equitable creating income earing opportunities to all people in 
rural and urban areas.  
7.2.  The government of Vanuatu will continue to undertake reforms, improve service delivery and 
promote investment and business friendly environment that will enhance economic growth and at 
the same time promote service delivery, in a way that in financially sustainable and does not 
jeopardize future economic growth.  
7.3.  The government of Vanuatu remains committed to support the productive Sector as the 
country prepares trade agreements it has negotiated and as Vanuatu works towards graduation 
from LDC status. Support to the productive sector is aimed at increasing production and promoting 
value addition for primary products that have comparative advantage in both the domestic and 
export markets. This will lead to greater employment opportunities in rural areas of Vanuatu, 
increase investment and boost tax revenue to support the domestic economy.  
7.4.  Land issues such as disputes had been an obstacle for investme nts in the past but the focus 
in the cultural identity underpinning the development agenda will allow the government to 
continue embark on land reform and dealings to boost public investment in future with good focus 
on the Ni -Vanuatu and their lands. The government wants to continue to create an enabling 
environment to encourage more Public Private Partnerships and Joint Ventures in order to spread 
economic development and benefits throughout Vanuatu.  
7.5.  Vanuatu Trade Policy Review preparatory work which bega n on 15 November 2017, has given 
us opportunity to identify our constraints and opportunities for trade development. This will enable 
us to reform our trade policies and create a trading environment for the private sector to get 
maximum economic benefits f rom reforms and adjustments made to our trade development 
policies.  WT/TPR/G/378 • Vanuatu  
 
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  7.6.  Since Vanuatu is a member of WTO in August 2012 and became 157th members, Vanuatu is 
committed to continue to make modifications to existing laws and regulations, and implements 
various me asures to assure compliance with its commitments in the WTO.  
 
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