WT/TPR/M/349  
3 February  2017 
(17-0665) Page: 1/36 
Trade Policy Review Body   
13 and 15 December 2016  
  TRADE POLICY REVIEW  
SOLOMON ISLANDS  
MINUTES OF THE MEETING  
Chairperson: Ms Irene Young (Hong Kong, China)  
CONTENTS  
 
1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY  THE REPRESENTATIVE O F SOLOMON ISLANDS  ....................  4 
3  STATEMENT BY THE DIS CUSSANT  ................................ ................................ ................  9 
4  STATEMENTS BY MEMBERS  ................................ ................................ ........................  13 
5  REPLIES BY THE REPRE SENTATIVE OF SOLOMON ISLANDS  AND ADDITIONAL 
COMMENTS  ................................ ................................ ................................ .....................  28 
6  CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ .........................  35 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Solomon Islands  are reproduced in document WT/TPR/M/ 349/Add.1  and will be 
availabl e online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/349 • Solomon Islands  
 
- 2 - 
 
  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The third Trade Policy Review of Solomon Islands was held on 13 and 15 December 2016. 
The Chairperson, Ms. Irene Young (Hong Kong, China), wel comed  the delegation of 
Solomon  Islands headed by the Honourable Mr. Milner TOZAKA, Minister of Foreign Affairs and 
External Trade; the delegation from Solomon Islands; and the discussant, Mrs. Dalia KADIŠIENĖ  
(Lithuania) .  
1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Solomon Islands  was co ntained in document 
WT/TPR/G/349  and that of the WTO Secretaria t in W T/TPR/S/349 . 
1.3.  Questions by the following delegations had been submitted in writing before the deadline: 
Australia; European Union; Canada; Chinese Taipei; and the United States. The following 
delegations  submitted written questions after the deadline:  New Zealand and Thailand .  
1.4.  At the previous TPR meeting in May 2009, Members had recognized the various challenges 
facing Solomon Islands, had expressed their support for its ongoing reform efforts, and had urged 
it to accelerate the pace of macroeconomic and structural reforms, in order to achieve fiscal 
sustainability, diversify its economy, and improve living standards. Members were pleased to note 
that during this review period, Solomon Islands had indeed taken steps to strengthen its public 
financial m anagement framework, its taxation system, and monetary policy framework. Now there 
was also a National Development Strategy setting out the country 's economic policy in the next 
20 years, and remarkably it contained  Solomon Island 's first formal trade poli cy framework. The 
Chairperson saw this as a positive response to Members ' comment at the last TPR that the country 
needed to strengthen its institutional capacity, especially for trade policy formulation and 
implementation.  
1.5.  Solomon Islands had  a relativel y open investment regi me, thanks to the liberaliz ation efforts 
which Members had commended at the last TPR. This time, Members continue d to express a 
strong interest in this area, asking questions about foreign investors ' participation in various 
sectors a nd the discriminatory treatment they face d. These were issues that the country would 
need to address if it was to boost its relatively low and declining FDI inflows.  
1.6.  Back in 2009, Members had commended S olomon Islands ' customs reform.  It was 
encouraging to  see that continued efforts had been made to further improve the customs 
procedures, in particular through the adoption of new legislation giving effect to the WTO Customs 
Valuation Agreement. Members looked forward to receiving Solomon Islands ' notificati on on the 
relevant rules.  
1.7.  In this connection, Members might recall having encouraged Solomon Islands to make 
regular notifications to the WTO.  As could  be seen from Members ' advance written questions, the 
absenc e of these notifications remained a concern. Members were expecting the authorities  to step 
up compliance in this regard .  
1.8.  Another issue that had  been outstanding since the last TPR was about tariffs and charges.  It 
was commendable that Solomon Islands had bound its entire tariff schedule and  had reduced its 
tariffs unila terally. However, it was also noted in the last TPR that some applied tariff rates had 
exceeded corresponding bound rates and certain internal taxes had been  applied in a  
discriminatory manner. It seemed that improvements had  yet to b e made – hence the many 
advance written questions posed by Members this time.  
1.9.  Focusing on specific trade sectors, Members had noted at the last TPR Solomon Islands ' 
commitment to reforming its forestry legislation. This was of paramount importance because  
forestry was a major source of rev enue, and supported  the livelihood of many people in the 
Solomon Islands. As Members  had pointed out last time, there was an urgent need for the country 
to strengthen natural resource governance, where harvesting rates we re well above sustainable 
levels. This was also the subject of som e advance questions this time. It was useful to k now what 
concrete measures the Government had  taken to address this issue.  WT/TPR/M/349 • Solomon Islands  
 
- 3 - 
 
  1.10.   In their questions, Members also showed interest in other areas of  trade policy, such as 
import licensing procedures, technical regulations and standards, sanitary and phytosanitary 
measures, state trading, government procurement, competition pol icy and intellectual property. In 
terms of  trading sectors, questions were  also asked about agriculture, fisheries, energy and 
mining, and transport.  
1.11.   This meeting was a good opportunity for Members to discuss in greater detail these issues, 
as well as other issues of interest to Members and of systemic importance to the multilate ral 
trading system. The Chairperson looked  forward to a fruitful exchange.  WT/TPR/M/349 • Solomon Islands  
 
- 4 - 
 
  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F THE SOLOMON ISLANDS 
(HON.  MR. MILNER TOZAKA ) 
2.1.  It is with great honor that I stand before this room today to present the opening statement of 
the third Solomon Islands ' Trade Policy Review, on behalf of the Government of Solomon Islands. 
For a country such as ours, which operates on the margins of the global trading system, this 
exercise gives us the opportunity to show the world the progress  we have made to implement 
policy measures that will not only boost our trading capacity, but also enhance our economic 
growth prospects.  
2.2.  We recogniz e this process as an important activity to promote transparency in our 
Government processes, and safeguard the effective functioning of the multilateral trading system. 
Solomon Islands ' remains deeply committed to opening up our trading regime for evaluation and 
scrutiny in order to promote and encourage further reforms that will strengthen our obligations 
under the WTO.  
2.3.  Allow me to recogniz e the outstanding commitment and effort shown on the part of the WTO 
Secretariat, and my own Government, to ensure the full completion of this review. The report that 
you see before you meets our expectations in terms of comp rehensiveness and quality , and I 
would like to express my sincerest gratitude to all those who participated in the process to produce 
a study of such high standard.  
2.4.  Since the last Trade Policy Review in 2009, the Government of Solomon Islands has 
continue d to pursue policies and reforms aimed at improving the economic and social livelihoods of 
our people, to reduce poverty and promote sustained and inclusive economic growth. Reforms to 
increase investment opportunities, to encourage greater participation o f the private sector, and 
reinvigorate productive and resource sectors  are just some of the efforts underway to achieve 
these commendable ambitions.  
2.5.  Given that the majority of the popula tion lives in rural areas, our G overnment is not only 
focusing on the  main productive areas in and around Honiara, the capital city of Solomon Islands, 
but also concentrating o n expanding employment and labo r mobility opportunities for the rural 
population, to promote income generation, maintain urban stability and reduce t he risk of a return 
to the conditions that led to the period of ethnic unrest 16 years ago.  
2.6.  Positively, Solomon Islands ' economy has shown signs of stability and improvement since the 
last review. Despite a sharp fall in GDP growth during the Global Financ ial Crash in 2008, growth 
rates have rebounded and since 2013, have been stable, at around 2.9%. Forecasts for 2016 
predict continued stability. Total merchandise trade, despite experiencing a fall over the review 
period, stood at around 70% in 2015, orien tated predominantly towards Asia.  
2.7.  In addition, Solomon Islands recorded a fiscal surplu s for most of the review period, h owever 
slid into deficit in 2015 due predominantly to expansions in government funded activities in rural 
infrastructure and social se rvices.  
2.8.  As spending on major infrastructure projects is set to continue in the coming years, the 
deficit is expected to widen, but the resulting impact on employment and opportunities for income 
development should provide a much needed boost to the econom y.   
2.9.  Notwithstanding the progress mentioned, we must not forget that to successfully reduce 
poverty and improve livelihoods for all Solomon Islanders, achieving much faster growth to that 
recorded so far is crucial,  a point well understood by my G overnment . 
2.10.   At this juncture, it would be pe rtinent of me to emphasiz e that like most LDCs, partic ularly 
small island developing S tates, the Solomon Islands faces many challenges including costly service 
provision, geographic isolation and dispersion, and vulnerabil ity to economic shocks and natural 
disasters. As a result, our economic performance can be greatly impacted by factors beyond our 
control. For these reasons, it is imperative that we safeguard against manipulation of those 
measures that are in our control to ensure the efficient management of our economy, to not only 
encourage resilience, but show strength in the face of adversity.  WT/TPR/M/349 • Solomon Islands  
 
- 5 - 
 
  2.11.   In spite of these challenges, we are making progress. Notably, legislation governing the 
Central Bank has markedly improved tra nsparency and accountability in monetary policy 
decisions; exchange rate adjustments have induced greater certainty; and furthermore, revisions 
to the debt management framework have prompted a steady downward trend in outstanding 
government debt.  
2.12.   In its c ontinued commitment, the Government of Solomon Islands has carried out major tax 
reforms since 2009, improving revenue collection and compliance, as well as increasing 
transparency in the provision of exemptions, in the hope of reducing the distortionary e ffects on 
the economy.  
2.13.   I would al so like to highlight a law,  introduced in 2014, to manage public finances,  aimed at 
improving the management of public resources through greater accountability, improved 
monitoring and reporting and enhanced procurement ru les. These serious reform efforts signal the 
Government 's dedication to instilling confidence in the economy.  
2.14.   But, there is still much to be done to establish a tax system that truly promotes economic 
activity and induces confidence. Ta x reform is a prior ity of this G overnment and we will  continue to 
endeavo r towards addressing the requirements.  
2.15.   The development agenda of Solomon Islands is set out in the National Development 
Strategy. Initially launched in 2011 with a ten year time horizon, it was expanded  earlier this year 
to map out the future direction of the Solomon Islands ' economy over the next twenty  years. This 
shift signals the G overnment 's intention to implement policies that will have long lasting benefits, 
rather than focusing on short term wins .  
2.16.   The NDS is harnessed within fi ve thematic objectives:  sustainable economic growth, poverty 
alleviation, access to quality healthcare and education, environmentally sustainable development 
with a focus on disaster risk management, and a unified nation en compassing stable and effective 
governance.  
2.17.   Specifically for trade, over the course of the review period , the Solomon Islands ' 
Government has adopted two trade policy documents, the Enhanced Integrated Framework 
Diagnostic Trade Integration Study 2009 and the Solomon Islands ' Trade Policy Framework 2015.  
2.18.   The DTIS offers a coherent approach to trade and trade related policy formulation. It 
interlinks national activities and identifies trade related assistance requirements  with the aim of 
mainstreaming trade  policy into the broader process of government planning.  
2.19.   The TPF complements the DTIS, identifying specific policy measures and strategies which 
seek to enhance the international competitiveness of the economy and ensure the effective 
participation of Sol omon Islands in international trade.  
2.20.   The support shown for these po licy documents underscores the G overnment 's understanding 
of and commitment to using trade as a means to alleviate poverty  and generate economic growth.  
2.21.   I would like to go on to highlight further achievements that have been made by the Solomon 
Islands since the last trade policy review.  
2.22.   Firstly, given the myriad of challenges we face, as a geographically isolated country far from 
major trading markets, making the exchange of goods easier an d simpler is intrinsic to the 
successful integration of Solomon Islands into the world economy.  
2.23.   We fully support recent initiatives to enhance the facilitation of trade, particularly the WTO 's 
Trade Facilitation Agreement. The provisions of special and di fferential treatment for developing 
countries and LDCs incorporated into the Agreement, as well as the technical assistance and 
capacity building support on offer, should enable us to put in place the structures necessary for 
compliance.  WT/TPR/M/349 • Solomon Islands  
 
- 6 - 
 
  2.24.   Earlier this year , we notified the WTO of our Category A Schedule of Commitments and 
intend to notify Categories B and C in due course. Once internal processes are complete, the 
instrument of acceptance will be deposited with the WTO.  
2.25.   I am also at liberty to report that S olomon Islands has already started implementing 
provisions of the Agreement. In November 2015 , the National Trade Facilitation Committee was 
set up, responsible for implementing the Agreement and ma intaining dialogue between the 
Government and private sect or. In addition, as of 2015, Solomon Islands is using ASYCUDA World 
for the effective collection and dissemination of customs data.  
2.26.   Recogniz ing the importance of dialogue, the G overnment of Solomon Islands during this 
review period set up the National Trad e Development Council, a cross -government, private sector 
and civil society body responsible for mainstreaming trade into the wider national agenda. Through 
effective communication of trade policies to relevant stakeholders, the Council aims to promote the  
benefits of an open, liberal trading regime for the economy as a whole.  
2.27.   The Council, chaired by myself, is the only all -encompassing body dedicated to advancing 
the trade agenda in the country and offers a platform for discussion at the highest level.  
2.28.   I wish to now mention some of the key sectors in the Solomon Islands economy, and 
highlight the main achievements over the review period.  
2.29.   The fisheries industry represents one of Solomon Islands ' most important sectors, as a 
source of employment, government revenue and crucially, the opportunity it creates for value 
addition activities. Total catch over the review period has been increasing, although the amount 
processed in Solomon Islands is not enough to meet our development needs.  
2.30.   The G overnment is workin g hard to encourage investment, to expand our capacity to 
process, not o nly to export raw produce. The G overnment is also working extremely hard to 
combat illegal, unregulated and unreported fishing in Solomon Islands, and with the support of the 
EU and Ne w Zealand, we should be able to formally lift the yellow card handed down by the EU in 
2014 in due course.  
2.31.   The efforts our G overnment has made to ensure compliance show our commitment to the 
fisheries sector and the recognition of its importance to the ec onomy, particularly I must mention, 
for women who account for the majority of employees in this sector.  
2.32.   Tourism is recogniz ed globally as a major driver of growth, but Solomon Isla nds to date has 
yet to capitaliz e on the opportunities. However, the recent approval by cabinet of the Solomon 
Islands National Tourism Policy signals our intention to expand activities in the sector. The 
proposals aim to reverse the low levels of investment seen in recent years, expand human 
resource capacity and improve infrastr ucture.  
2.33.   Underscoring our commitment, we have as part of our dele gation, Director of Tourism, 
Mr Barney Sivoro from the Ministry of Culture and Tourism, as well as information and marketing 
on tourism in the Solomon Islands. We strongly encourage you all t o take a glimpse at the 
unparalleled beauty and off the beaten path experiences that you will find vacationing in Solomon 
Islands.  
2.34.   Although the majority of the population reside s in rural areas, the services sector of the 
Solomon Islands accounts for the largest share of total GDP.  
2.35.   The Government recogniz es the importance of services to enhance sustainable economic 
growth. Despite the persistent trade in services deficit, the G overnment operates a liberal 
investment regime with few restrictions in terms o f sectors for foreign investors to enter and 
operate. Legislation covering the services sector is currently under review with a view to enhancing 
consumer protection.  
2.36.   I must also take this opportunity to highlight some of the reforms carried out in the bus iness 
sector, which I hope will address the concerns raised by our recent low ranking in the World Bank 
Ease of Doing Business Index.  WT/TPR/M/349 • Solomon Islands  
 
- 7 - 
 
  2.37.   In 2010, the Companies Act was updated and an electronic registry installed, which have 
significantly reduced the cost an d time taken to register a business, from fifteen days to less than 
two. What 's more, the cost fell from approximately SI$2,000 to SI$150 or from approximately 
US$250 to US$20. It is noteworthy that in the period following reform, the rate of company 
registrations tripled.  
2.38.   In addition, I am very pleased to announce here today that the Solomon Islands Business 
Registry website was launched on 22 November 2016. The business registry is an electronic 
register available to the public providing a range of infor mation about companies, business names 
and foreign investment to help users decide how they wish to do business in Solomon Islands. The 
quick and easy to use registration service means registering a business in Solomon Islands has 
never been simpler. With this tool at our disposal, we hope Solomon Islands will be the number 
one investment destination in the Pacific. For more information on business registration and 
foreign investment in Solomon Islands, please speak with our delegate, the Director of Invest  
Solomons, Mr Derick Aihari.  
2.39.   Additional progress underway in competition policy formulation should go further to ensure 
Solomon Islands promotes a conducive environment in which to start and operate a business.  
2.40.   In recognition of the importance of the telec ommunications and transport sectors, a number 
of reforms have been enacted over the course of the review period. In telecommunications, the 
reforms in 2009 opened up the sector to competition, improving reliability, lowering costs and 
increasing employment .  
2.41.   In the transport sector, policies aimed at supporting the local contracting industry have led 
to expansions in employment opportunities, particularly for women.  
2.42.   We firmly believe, as evidenced in the publication of a strategy for the economic 
empowerme nt of women and girls, that tapping into the productive potential of women is 
fundamental to enhancing the trade performance of Solomon Islands.  
2.43.   I cannot stress to the room enough how important a cohesive pacific region, which 
promotes shared values, econo mic and social opportunities, is for Solomon Islands. We , pacific 
islands , are small and isolated, which makes our cooperation all the more important to put us 
firmly on the map of global trade.  
2.44.   Despite the fact that our economies have been trading with e ach other for millennia, our 
main trading partners lie further afield. It is the ambition of the Solomon Islands, through the MSG 
trade agreements and PICTA, to increase the amount of goods traded across the region, to keep 
the benefits of trade at home.  
2.45.   Solomon Islands is continuing to strengthen relations with key trading partners outside the 
forum island countries, with the imminent conclusion of PACER Plus negotiations. This trade 
agreement should lead to benefits from development cooperation and expan ded labour mobility 
initiatives.  
2.46.   Solomon Islands continues to believe that concluding a development friendly Economic 
Partnership Agreement with the EU is in the interest of the pacific region.  
2.47.   Solomon Islands has made extensive efforts to implement econo my wide and trade specific 
reforms ove r the review period. We recogniz e that there is still some way to go, but we believe the 
stage has been set for more investment, expanded trading opportunities and, ul timately, economic 
growth. The G overnment of Solomo n Islands will continue these reform s, to push for a favo rable 
environment for trade and investment.  
2.48.   Finally, I wish to briefly mention Solomon Islands ' engagement in the multilateral trading 
system.  
2.49.   Since the WTO Agreement entered into force in 1995, LDC s have faced considerable 
challenges implementing the agreement, Solomon Islands being no exception.  WT/TPR/M/349 • Solomon Islands  
 
- 8 - 
 
  2.50.   In recognition of these difficulties, subsequent Ministerial Declarations sought to address the 
marginaliz ation many LDCs face when attempting to particip ate in the multilateral trading regime.  
2.51.   Nevertheless, Solomon Islands continues to lack the necessary financial, institutional and 
technical capacities to comply. Therefore, we must use this opportunity to call, once more, for a 
renewed commitment for tec hnical cooperation and capacity building support to be adequately 
provided for in the WTO 's regular budget, as well as by fellow WTO Members.  
2.52.   It would be remiss of me not to make reference to the Enhanced Integrated Framework and 
the efforts made towards t ackling the supply side constraints we face in Solomon Islands. I 
strongly encourage the WTO and our development partners to continue and expand the support for 
this facility, particularly as we transition into the second phase of the programme.  
2.53.   I would a lso like to take this opportunity to thank all those development partners that 
pledged their support for EIF during the donor pledging conference, which took place in the 
margin s of MC10 in Nairobi last year.  May I now encourage further coordination effort s to facilitate 
our greater participation in the multilateral trading system.  
2.54.   In conclusion, I would like to , once again , stress the important steps that Solomon Islands 
has taken since the last Trade Policy Review to enhance trade, harness the subsequent  benefits 
and fulfil our commitments under the WTO agreements.  
2.55.   Our limited financial and human resource base and lack of adequate institutional capacity 
has slowed the pace at which we are able to adopt necessary legislations, constraints complying 
with S PS rules, and limited productive capacity are further major obstacles to Solomon Islands ' 
integration into the multilateral trading system. But these will not deter us.  
2.56.   It is of the utmost importance here today that I take the opportunity to express our ne ed for 
external technical assistance and help to build our internal capacity. To overcome the constraints 
Solomon Islands faces, we need your support.  
2.57.   Finally, I would like to reiterate Solomon Islands continued commitment to the multilateral 
trading regim e. As an LDC, we understand the importance of creating an inclusive and rules based 
system that encourages distant nations such as ourselves to enter and trade unencumbered. 
Solomon Islands will strive to ensure that the system is strengthened for the bene fit of all WTO 
Members.  
2.58.   I wish to extend my appreciation and gratitude for your support to Solomon Islands and 
thank you for your attention.  WT/TPR/M/349 • Solomon Islands  
 
- 9 - 
 
  3  STATEMENT BY THE DIS CUSSANT  
3.1.  Let me first take the opportunity to welcome the delegatio n of Solomon Islands led by 
Mr. Milner Tozaka, Minister of Foreign Affairs and External Trade, to the third Trade Policy Review 
of this country. I also wish to thank the Government of Solomon Islands and the Secretariat for 
preparing very useful and informative reports that provide a  good basis for an in -depth discussion 
on economic situation and challenges faced by Solomon Islands and country 's trade polic ies 
seeking to address them.  
3.2.  I extend my sincere thanks to the Chairperson for her insightful opening remarks that inspire 
us for a productive discussion, which, I am confident, will ensure useful and effective trade policy 
review of Solomon Islands.  
3.3.  As the discussant, representing also very small and highly trade dependent country, I would 
like to underline the importance of right t rade and economic policies in ensuring economic growth 
and sustainable development. While focusing on several aspects of trade and macroeconomic 
policies of Solomon Islands, I would also like to highlight challenges faced by this country and the 
efforts ma de by the Government since the last trade policy review in 2009.  
Economic environment  
3.4.  Before starting to speak about the economic environment, I would like to underline  the 
particular geographic situation of Solomon Islands – consisting of over 900 island s located in the 
Pacific Ocean, the country is heavily exposed to natural disasters and to the impacts of climate 
change. Since the last TPR, Solomon Islands faced several of the m: heavy flooding, cyclones, 
El Nino and earthquakes (as you know, the earthqu ake has struck Solomon Islands just few days 
ago). While experiencing periodic damages to infrastructure, negative impact on fish catch and 
agricultural production, macroeconomic stability remains an ongoing challenge. Against this 
backdrop, it is worth to  note that macroeconomic fundamentals of Solomon Islands remain quite 
sound - debt levels stand at just 8 % of GDP, enabling Solomon Islands to borrow for emerging 
opportunities for productive investment. However, the Government ended 2015 with a fiscal def icit 
(contrary to 2014) and it would appear that the fiscal balance will deteriorate further as the 
Government engaged in major capital expenditures in 2016, and donor assistance is on a declining 
trend.  
3.5.  Being dependent  on few natural resources such as lo gging and fish, Solomon Islands ' 
economy is very vulnerable, in particular to commodity price declines. Thus, diversification of the 
production of goods and services as well as addressing supply -side constraints are the objectives 
laid down in the National  Development Strategy 2016 -2035 - very important strategic document 
also incorporating the Trade Policy Framework in it.  
3.6.  Yet, I would like to acknowledge important achievements of the country bringing it close to 
the threshold of graduation from the LDC st atus. Economic growth has ranged between 2 to 10 % 
since 2010 in particular thanks to the growing logging and construction activities, tuna processing, 
and retail services. Nevertheless, the economic growth  of 2–3% recorded in recent years is too low 
to sus tain an improvement in living standards (with a population growth of 2.5 % per annum). 
Moreover, economic growth is projected to average only 3 to 4 % over the medium term.  
3.7.  I would like to draw your attention that during the period since the last review , the 
Government of Solomon Islands took several important steps that helped to support economic 
development. Moving from a US dollar peg to a peg against a basket of currencies seems to be 
working effectively in serving the purpose of maintaining competitivene ss of exports and 
production for the domestic market.  
3.8.  According to the Secretariat 's report, major reforms in the taxation system resulted in 
significant improvements in revenue collection, tax compliance and auditing as well. The 
establishment of a commit tee dedicated to fiscal exemptions introduced more transparency into 
the system and reduced the number and value of exemptions granted. In addition, new mining tax 
regime has been implemented. The level of the central government debt has been on a downward  
trend and is among the lowest in the region mainly thanks to the implementation of Honiara Club 
Agreement between 2005 and 2012. However, loosening the “no borrowing restriction” from 2012 WT/TPR/M/349 • Solomon Islands  
 
- 10 - 
 
  and some borrowing currently in the pipeline will likely reverse t he downward trend. Furthermore, 
donor assistance is on a declining trend.  
3.9.  Thus, Solomon Islands still face s a number of challenges, which require further attention of 
policy makers at national, regional and multilateral level. Let me pay attention to the few of them:  
 Firstly, consisting of so many of sparsely located islands and being remotely outlying from 
export markets, Solomon Islands faces significant constraints related to transport, 
communication and energy, which makes costs of doing business very  high and has a 
negative impact on competitiveness.  
 Secondly, only 21 % of country 's economically active population is employed in the formal 
economy, while remainder is employed in informal or subsistence activities. Although 
literacy and numeracy among th e school -aged population is increasing, only one in five 
adults in Solomon Islands is literate. Even though the country is making progress towards 
universal primary education, secondary school participation levels remain low. As one of the 
tools to address  the employment issues, the Government of Solomon Islands rightly 
emphasiz es the need to im prove the education of people: a goal of ensuring that all 
Solomon Islanders have access to quality education is inscribed in the National Development 
Strategy 2016 -2035.  
 Thirdly, tackling prevalent illegal and under -declared logging is a big challenge to the 
Government. More efforts are needed for ensuring that logging activities are conducted in a 
sustainable way in order to avoid deforestation. In this respect, it  would be advisable to 
consider the possibility of joining the International Tropical Timber Organization, which 
promotes conservation of tropical forest recourses, their sustaina ble management, use and 
trade. Therefore, it would be interesting to hear exp lanations of the Government 's future 
actions aiming at preventing deforestation and combating illegal logging.  
 Fourthly, fisheries sector is of major importance to the economy of Solomon Islands and the 
Government makes strong efforts to ensure the sustain able management of fish stocks and 
to combat illegal, undeclared, unreported (IUU) fishing including through the membership in 
the Parties to the Nauru Agreement. Hence, WTO disciplines on fisheries subsidies would be 
very much conductive in this regard.  
 Fifthly, FDI flows are relatively low and on a downward trend, despite the fact that the 
Solomon Island 's investment regime is relatively open and the Government provides 
incentives in order to attract foreign investment. However, political instability, sho rtage of 
infrastructure, remoteness from markets, and – most importantly - difficulties in the area of 
land ownership, high tax rates, as well as inconsistencies in legislation discourage potential 
foreign investors. Since the last review in 2009 , Solomon Islands was ranked 85th in the 
World Bank Doing Business Report, now, regrettably, the country moved down to the 104th 
place in the World Bank Doing Business Report 2017. Nevertheless, there is much of space 
for substantial improvement of the business clim ate and, I believe, the membership would 
be interested to hear more about the Government 's plans in this area.  
3.10.   Also, I suppose that countries would appreciate to find out more about the functioning of the 
so-called C onstituency Development Funds, G overnme nts' actions in fighting against corruption 
and strengt hening the competition rules.  
Trade policy and practices by measures  
3.11.   Now, moving more specifically to the trade policy and practices, it is commendable that 
Solomon Islands makes efforts in the field o f trade facilitation: in January 2015 , its customs 
moved to the web -based version of ASYCUDA World, which improved efficiency in customs 
clearance processes for goods. In February 2016 , Solomon Islands notified its Category A 
commitments under the Trade Fa cilitation Agreement, yet there are still steps needed to finali ze 
Category C commitments. While the Government intends to ratify TFA once technical assistance 
requirements have been identified, it would be advisable not to delay this process.  WT/TPR/M/349 • Solomon Islands  
 
- 11 - 
 
  3.12.   Let me ment ion that several legal acts were adopted in 2010 in order to align national 
legislation with the WTO Customs Valuation Agreement, but new rules have not been notified to 
the WTO. As customs ' valuation is frequently disputed, notification would help to shed  a light into 
this matter. Yet, reference price scheme is applied to a long list of products, it is difficult to find a 
justification for this, especially when considering food products, household goods, cars, electronic 
equipment, etc.  
3.13.   Lack of notificatio ns persist s in other areas as well, including TBT and SPS. I believe that 
efforts in providing notifications would pay -off very quickly, as increased transparency and better 
understanding of Solomon Islands ' trade regime would stimulate trade and investmen t.  
3.14.   It is worth mentioning that Solomon Islands has made important steps unilaterally 
liberalizing its tariffs. Country bounds all of its tariff lines - most at around 80 %, but its applied 
rates are much lower: currently the average applied rate is 9.3 %, though it has slightly increased 
since 2009, when it used to be 9.1 %. The average applied rate for agriculture is somewhat higher 
(as high as 10.1 %). However, as it was also touched upon during the last review, several tariff 
lines still exceed their bound rates. Therefore, I would like to ask the delegation of Solomon 
Islands if there are any plans to comply with its tariff commitments. Als o, please allow me to draw 
the attention to the fact  that ad valorem  duty rates provide more clarity for importers, thu s it 
would be advisable to move to ad valorem  basis in remaining few cases where Solomon Islands 
still applies specific duty rates.  
3.15.   The Secretariat report mentions that Solomon tax system is discriminatory and inconsisten t; 
it also draws our attention to the rather long list of products for which export duties apply – 
timber, scrap -iron and fish (raw and frozen), live animals and seafood. Timber is a scarce resource 
and export duties might help in preventing deforestation. However, it is rather questionabl e 
whether export duties for fish, animal and seafood products do not prevent small producers from 
entering into the GVCs, especially in the fish processing, which is important for the whole region.  
3.16.   Also, I would like to point out that several governmental bodies perform the standard 
setting, which means that there is no unified infrastructure for regulation setting and conformity 
rules. Therefore, developing such a system would be an important step towards implementation of 
TBT agreement.  
3.17.   It should be note d, that the Government of Solomon Islands started looking into IPR 
protection laws aiming to improve country 's situation as regards implementation of TRIPS 
agreement.  
3.18.   It is necessary to mention, that despite its limited export diversification and LDC stat us, 
Solomon Islands is putting great efforts to strengthen its trade relations with other countries in the 
region. Solomon Islands is a party to several regional economic and trade agreements: Melanesian 
Spearhead Group (MSG), Pacific Island countries Trad e Agreement (PICTA) and South Pacific 
Regional Trade and Economic Cooperation Agreement (SPARTECA). Negotiations are ongoing on a 
free trade agreement PACER Plus that would include Pacific Islands Forum countries, Australia and 
New Zealand. This positive t rend of close regional cooperation should be maintained and enhanced 
in the future because of its advantageous impact in improving of country 's trade performance, 
strengthening its capacity to compete in more remote markets.  
Conclusion  
3.19.   Before concluding m y statement, I would like to remind that since joining the WTO in 1996, 
Solomon Islands played a constructive role in the negotiations, including cosponsoring a number of 
important and very re levant SVE 's proposals. With MC 11 approaching, it would be advis able that 
Solomon Islands participates actively and constructively in the process of shaping the package of 
possible outcomes of the future Conference, especially in the field of agriculture, fisheries 
subsidies, development dimension.  
3.20.   Finally, while goin g through the both reports prepared by the Secretariat and the 
Government, it appears to me that Solomon Islands faces numerous challenges in realizing its 
vision. It would be important to focus aid for trade on addressing the supply side constraints of 
country in line with its National Development Strategy 2016 -2035.  WT/TPR/M/349 • Solomon Islands  
 
- 12 - 
 
  3.21.   Lastly, the Government of Solomon Islands should already now start considering trade 
policy reforms for the time when the LDC status will no longer be applied to a country and the 
economic pa rtners will not apply DFQF regime to its goods anymore. Negotiations of the free trade 
agreements with the most important trading partners would be an important step towards 
continuation of the preferential access to these markets.  
3.22.   Using this opportunity,  I encourage all donor countries, in particular Solomon Islands ' major 
trading partners, to give serious consideration to support Solomon Islands in realization of its 
National Development Strategy. At the same time, I urge the Government of Solomon Island s to 
continue its efforts to improve domestic policies, institutions and business environment by an open 
trade and investment policy regime.  
3.23.   This concludes my statement. I wish Solomon Islands a very successful Trade Policy Review.  WT/TPR/M/349 • Solomon Islands  
 
- 13 - 
 
  4  STATEMENTS BY MEMBER S 
AUSTRALIA  
4.1.  At the start, let me express our sympathy following the recent earthquake which  has affected 
Solomon Islands. To date there has been one reported fatality, but it has impacted more than 
7000 people and destroyed o r damaged more than 300 homes. Australia is working closely with 
the Government of Solomon Islands to support your impressive response efforts.  
4.2.  Australia is pleased to participate in the Third Trade Policy Review of Solomon Islands and we 
welcome the opportunity to learn more about trade r eform in Solomon Islands.   
4.3.  Australia and Solomon Islands have a long history of partnership. Since its inception in 2003, 
the Australian -led Regional Assistance Mission to Solomon Islands (RAMSI) has worked in 
partnership with the Solomon Islands Governme nt to restore law and order, rebuild national 
institutions a nd implement economic reforms. With contributions from New Zealand and other 
Pacific Islands Countries, RAMSI has helped to restore business confidence and has created the 
conditions for renewed e conomi c growth and trade. As Solomon Islands ' largest donor, Australia 
will continue to support stability, governance, growth and human development following RAMSI 's 
conclusion in June 2017.  
4.4.  Two-way goods and services trade between Australia and Solomon Is lands was wort h over 
AUD165 million in 2015. Australia is also one of Solomon Islands ' largest investors in sectors such 
as tourism, mi ning, agriculture and finance. We have a shared in terest in a strong, open, 
rules-based system.  
4.5.  Australia applauds the e conomic reform agenda pursued by Solomon Islands since 2009. 
Reforms to foreign investment processes, the telecommunications sector, business laws and the 
performance of state owned enterprises have gone far towards improving the country 's trade and 
econom ic performance over the past ten years.  
4.6.  Solomon Islands has proven to be one of the most active reformers in the Pacific Region but 
furthe r reforms are needed to moderniz e the tax system, advance gender equality and establish a 
framework that supports com petition. This is indeed a challenging agenda but one that Australia 
stands ready to support as the G overnment continues to strengthen and diversify the economy.  
4.7.  We welcome Solomon Islands ' focus on facilitating engagement in bilateral, regional and 
multil ateral trade frameworks and its efforts to integrate into t he global trading environment. The 
Solomon Islands Growth Program (SIGP) is the flagship for Australian support for inclusive 
economic growth in Solomon Islands, worth AUD50 million over four years  from 2016.  Under 
SIGP, Australia will fund new infrastructure projects that address constraints to trade and 
investment and work in growth markets such as cocoa and coconut and tourism.  
4.8.  Another tangible commitment by Australia to prosperity and economic i ntegration in ou r 
region is in the area of labour mobility. Under Australia 's Seasona l Worker Program (SWP) over 
142 Solomon Islands workers have been granted visas – a tangible example of our efforts to boo st 
job access and regional labour mobility. Furth er recruitments are in the pipeline to increase 
Solomon Islands ' participation in SWP.  
4.9.  Australia is committed to helping Solomon Island s expand its tourism potential.  We have 
played a catalytic role in the recent commencement of regular cruise ship visits  to Solomon Islands 
and th e opening of new destinations. Cruise tourism offers real potential for growth in Solomon 
Islands. While the industry is still it its infancy, it is already helping to improve local tourism 
standards and boost the profile of the n ation as a unique tourist destination.  
4.10.   Like Solomon Islands, Australia remains committed to su ccessful regional integration. 
Australia welcomes the constructive role played by Minister Tozaka who has led Forum Islands 
Countries (FICs) in negotiations on t he Pacific Agreement on Closer Economic Relations (PACER) 
Plus, which aims to promote economic development in Solomon Islands and other FICs through 
greater regional t rade and economic integration. Australia looks forward to concluding market WT/TPR/M/349 • Solomon Islands  
 
- 14 - 
 
  access negoti ations with Solomon Islands that will facilitate the increased trade of goods, services 
and investment between our two countries and the region as a whole.  
4.11.   We congratulate Solomon Islands for notifying its Category A commitments under the WTO 
Agreement on Trade Facilitation and encourage Solomon Islands to progress its domestic approval 
processes to allow it to accept th e Agreement in a timely manner.  The Agreement on Trade 
Facilitation when implemented will deliver practical measures to strengthen global t rade and 
economic growth, bringing development and job creation benefits for WTO Members including 
Solomon Islands.  
4.12.   Solomon Islands has a very liberal investment regime with few restrictions in terms of 
sectors for foreign investors to enter.  The Governme nt recogniz es that foreign investment can 
make an important contribution to economic development, most notably by increasing productivity 
and contributing to local employment.  
4.13.   Australia applauds Solomon Islands ' commitment to sustained economic reforms and  we 
encourage you to continue to promote economic growth in the years ahead.  
EUROPEAN  UNION  
4.14.   On behalf of the EU, let me express our sympathy on the devastating earthquake a few days 
ago.  
4.15.   Solomon Islands have a unique environment that includes 75% of known  coral species, 
more than 30% of the world 's coral reefs and the largest mangrove forest in the world. Due to its 
geographic location and conditions Solomon Islands is very vulnerable to climate change. This is 
something we need to keep in mind when discus sing issues related to trade and environment in 
the WTO.  
4.16.   The economy of the Solomon Islands remains dependent on a few natural resources, logging 
and fishing, and is vulnerable to commodity price declines.  
4.17.   The EU would like to highlight some of the posit ive issues that have emerged during this 
period under review.  
4.18.   First, Solomon Islands has experienced positive economic growth since its last TPR in 2009 
and made some positive strides in economic development, including poverty reduction and per 
capita inco me increase.  
4.19.   Secondly, Solomon Islands has adopted its first Trade Policy Framework (TPF) in 2015 which 
aims to improve the medium - to long -term performance of the economy as regards trade and 
foreign investment. The objectives of the TPF are incorporated in the National Development 
Strategy 2016 -2035 for long -term economic policy. In this regard, the EU notes that the need for 
diversification of economic activity is particularly urgent. New sources of exports, growth, 
employment and government revenue are needed to sustain the living standards of the population 
in the immediate future, and to enable their significant and sustained improvement over the long 
term. Therefore, the EU encourages the Government of the Solomon Islands to continue its 
economic refo rm efforts.  
4.20.   Thirdly, Solomon Islands enacted its public Financial Management Act 2013 which aims to 
strengthen the framework for the management of public resources through increased 
transparency, accountability and fiscal reporting and tighter regulation o f procurement. The EU 
encourages Solomon Islands to further pursue the reinforcement of its institutions to ensure a fair, 
transparent and predictable legal environment.  
4.21.   In this context, the EU would like to highlight the importance for the government to pursue 
further efforts to fight corruption. The EU calls on Solomon Islands to adopt its anticorruption 
legislation and to establish an Independent Commission against Corruption.  
4.22.   According to the report by the WTO Secretariat, Solomon Islands ' focus on the  multilateral 
trading system could be improved. In February 2016, Solomon Islands notified its Category A WT/TPR/M/349 • Solomon Islands  
 
- 15 - 
 
  commitments under the WTO Agreement on Trade Facilitation and has now established the 
National Trade Facilitation Committee, but has not yet submitted  its letter of acceptance of the 
Trade Facilitation Agreement. The EU calls on Solomon Islands to enhance as far as possible its 
participation in WTO discussions and to complete its internal legislative process for securing 
prompt approval of the Trade Fac ilitation Agreement, as also noted by the Discussant.  
4.23.   The EU and Solomon Islands have been partners since the country 's independence in 1978. 
Being a Least Developed Country (LDC), Solomon Islands benefits from the EU support via the 
"Everything But Arms " scheme, which offers duty and quota free access to the EU market.  
4.24.   The EU has submitted a handful of questions and we are particularly interested in receiving 
information on the government 's plans to introduce customary lands policy reforms.  
4.25.   The EU remain s committed to support Solomon Island 's efforts to face socioeconomic 
challenges and is confident that this exercise will help Solomon Islands in carrying out its economic 
reforms in compliance with its international commitments in this forum.  
CANADA  
4.26.   On be half of Canada, I would like to welcome the delegation from Solomon Islands, 
including the Honourable Minister Tozaka and Permanent Secretary Ma 'ahanua to this third trade 
policy review of Solomon Islands. I would also like to extend our sympathy regarding  the recent 
earthquake in your country. Canada congratulates Solomon Islands for the important 
improvements in economic development they have achieved since their last trade policy review in 
2009. Solomon Islands have proactively implemented a series of me asures, and committed to 
many more, which will improve their trade and investment climate.  
4.27.   In the face of challenging circumstances, Canada welcomes Solomon Islands ' commitment 
to broad and comprehensive policy reforms. These, together with trade liberaliz ation, are keys to 
the long term development, economic growth and prosperity of Solomon Islands.  
4.28.   In particular, I would like to highlight five areas where Solomon Islands has taken significant 
steps toward improving its economy:  
4.29.   First and foremost, Canad a is pleased that Solomon Islands has elaborated a long term 
approach to its economic policy, as Canada encouraged Solomon Islands to do during its last trade 
policy review. Canada is hopeful that the National Development Strategy 2016 -2035; the 2015 
trade  policy framework; the newly established National Trade Development Council; and the 
National Strategy for the Economic Empowerment of Women and Girls will lead to greater 
economic inclusion and participation in the formal economy.  
4.30.   Second, Canada is encour aged by the openness of the Government of Solomon Islands to 
foreign direct investment and its recognition of the important contribution FDI can make to 
economic development. Canada commends the government 's commitment to ensuring that foreign 
investments are strategic and in line with the country 's national objectives with respect to the 
environment and social structure. We look forward to the release of the investment policy 
document currently under preparation.  
4.31.   Third, Canada salutes the G overnment 's comm itment towards the development of a national 
IP strategy and looks forward to its implementation. Addition ally, Canada hopes that 
Solomon  Islands will follow through on its intention to become a member of the World Intellectual 
Property Organization; to be come a signatory to relevant international IP treaties; and to establish 
a national IP office.  
4.32.   Fourth, Canada compliments Solomon Islands for its sustained involvement in the WTO. The 
mechanisms put in place to support this involvement, including the 2012 opening of Solomon 
Islands ' permanent mission in Geneva, will become increasingly valuable as Solomon Islands nears 
graduation to developing country status. Canada welcomes Solomon Islands ' notification of its 
intention to ratify the Agreement on Trade Fac ilitation with the submission of its category A, B and 
C notifications. Solomon Islands could continue on this trajectory by participating in WTO WT/TPR/M/349 • Solomon Islands  
 
- 16 - 
 
  plurilateral initiatives, including by becoming an observer to the Agreement on Government 
Procurement.  
4.33.   Finall y, Canada notes with great interest the Solomon Islands ' Constitutional Reform Unit 
recommendation for the establishment of a federal system with more powers and authority 
delegated to provinces. Such a system can present some challenges but also offers tr emendous 
opportunities, all of which are familiar to Canada.  
4.34.   Despite all this progress , there remain areas which would benefit from further attention on 
the part of the Solomon Islands government.  
4.35.   For example, we are concerned by Solomon Islands ' regressi on to the 112th rank on the 
2016 World Bank Ease of Doing Business Index, down from a high of 74th place in 2012. Full 
implementation of its WTO obligations would improve the Solomon Islands ' performance in this 
area. 
4.36.   Canada would encourage Solomon Islands  to adopt measures to ensure the application of 
the provisions of the Technical Barriers to Trade (TBT) Agreement and to notify those measures to 
WTO Members as required under Artic le 15.2. This will help build an effective and enabling 
regulatory framewor k for further growth and development.  
4.37.   Finally, as was the case during its 2009 trade policy review, Solomon Islands ' merchandise 
exports are heavily concentrated in a few sectors, and particularly in the forestry sector, which 
accounted for over 39 % of Sol omon Islands ' exports in 2015, according to UN Comtrade. In 
addition to diversification efforts under the National Development Strategy 2016 -2035, Canada 
would encourage Solomon Islands to intensify its efforts to combat illegal logging and enhance its 
forestry management practices before this important natural resource is depleted and 
deforestation reaches a critical level.  
4.38.   In conclusion, Solomon Islands ' trade and economic policy is moving in a positive direction, 
which will deliver inclusive and sustaina ble economic growth for its citizens. The Government of 
Canada thanks Solomon Islands for the responses it has provided to our advance written 
questions. I wish the delegati on a fruitful t rade policy review.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU , KINMEN  AND  MATSU  
4.39.   As we can see from the reports, the G overnment of Solomon Islands has successfully 
maintained its public sector debt in a rate of 9% of GDP by the end of 2015, which is one the 
lowest in the Pacific Islands.  
4.40.   It is important that Solomon  Islands continues to develop its regional and bilateral 
cooperative trading relationships, while at the same time actively participating in the regular work 
of the WTO, expanding economic cooperation with other Members, and striv ing to diversify its 
econo my. 
4.41.   It is noted that the G overnment of Solomon Islands has moved toward the graduation from 
the category of Least Developing Country (LDC) by designated tourism industry, 
telecommunications, and transport sectors to diversify its traditional economy sector s in logging, 
mining, fisheries and agriculture. We look forward to having the opportunity of working more 
closely with Solomon Islands in the future, especially in the tourism sectors. It is encouraged that 
Prime Minister H. E. Manasseh Sogavare had visit ed the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu in this July to further tighten the relationship with us and explored the 
business opportunity with Solomon Islands.  
4.42.   Although the value of two -way trade between us and Solomon Islands i s only about 
US$14  million a year at present, we are sure that the multilateral trading mechanism that bonds 
us together through the WTO provides plenty of opportunities for us to develop closer trade and 
economic cooperation in the future.  WT/TPR/M/349 • Solomon Islands  
 
- 17 - 
 
  UNITED  STATES  
4.43.   We have a special word of concern about the recent earthquakes, note that damage reports 
are still incomplete but would like to share our thoughts and prayers with your people.   
4.44.   Solomon Islands is a valued friend and  partner of the United States. We are l inked by close 
ties of history, as well as a shared commitment to peace and prosperity in the Pacific. Trade 
between us is growing – U.S. exports to Solomon Islands are increasing, and in 2016 appear 
poised to hit their highest level in over two decades – and Solomon Islands is also a beneficiary 
under our Gener alized System of Preferences. In bilateral terms, the United States does not 
represent one of Solomon Islands ' biggest trading partners, but some major U.S. businesses are 
present there through regio nal affiliates and distributors in ways the bilateral data do not fully 
reflect.  
4.45.   Solomon Islands continues to face s erious development challenges. It is a small island 
nation, and a least developed country, with an excessive reliance on fast -depleting natu ral 
resource export  In addition to these development -related challenges come the additional 
challenges associated with being a chain of hundreds of vulnerable islands, and continued recovery 
from a political crisis at the s tart of this century. There have been numerous positive steps taken – 
which I 'll turn to in a minute – but despite those useful steps, the trend lines are n ot all in a 
positive direction.  I hope our discussion can highlight ways the Solomon Islands can use trade, 
and its WTO membership, t o sustain and accelerate positive trends, and to promote its 
development.  
4.46.   First, Solomon Islands should be commended on the important steps taken since the last 
review (in 2009) to strengthen the economic policy framewo rk. There have been reforms to the 
monetary policy framewo rk and to exchange rate policy.  There have been important reforms to the 
tax reg ime and to compliance efforts. Legislation to implement the Customs Va luation Agreement 
was enacted. Legislation for p ublic procurement was enacted.  Compe tition was successfully 
introduced in the import ant telecommunications sector. Anti-corruption le gislation has been 
introduced. And the overa ll results have been positive: six years of solid economic growth, 
increases in per capita incomes, and a signific ant fall in government debt.  
4.47.   However, we must also speak candidly of the fact that not all the recent trend line s are in a 
positive direction. Overall GDP growth rates have been declining.  Trade has also been declining, 
with both exports and imports postin g declines in each of the last three years, even  at a time of 
economic growth. The over -reliance on logging exports – already noted as a key concern at the 
last review – continues to increase, even as experts predict forest resources could be completely 
depleted in less than five years.  And as the Secretariat report notes, foreign direct investment – 
critical for the diversification of the country 's economy and export base – has actually been 
declining.  
4.48.   Reversing these trends is not just desirable, it is cr itical, given the imminent depletion of 
forest resources. It is good that the Government has identified diversification of the economy as a 
top priority, and recognized that increasing foreign investment can play a key role in achieving 
that. But while the  report details many recent reforms in other areas, there doesn 't appear to have 
been comparable progress on improving the investment climate; and while the Secretariat report 
notes that an investment policy document is under preparation, no specific refor ms or new 
measures are previewed. We urge Solomon Islands to consider ways to address the land 
ownership issues that many foreign investors consider an impediment to  investing in Solomon 
Islands. We would also encourage reforms to increase transparency and  to establish clearer 
parameters for government discretionary powers.  
4.49.   We would also urge prioritization of measures to combat illegal logging and illegal forest 
products trade and to promote refore station.  Log exports already represent by far the largest 
share of Solomon Islands exports, and the huge disparity between Solomon Islands ' trade 
statistics and those of some of its major log export markets suggests muc h of the trade may be 
illegal. Moreover, reforestation and plantation management appear to be im peded in part by the 
land ownership issues that affect the entire economy but are e specially acute in this sector.  Given 
the importance of timber for Solomon Islands trade, and the adverse environmental, economic and 
social consequences that loom if this r esource is depleted through illegal logging, we urge the WT/TPR/M/349 • Solomon Islands  
 
- 18 - 
 
  Government to prioritize meaningful measures to combat illegal logging and ensure that timber 
products are legally harvested and exported . We encourage you to draw on the expertise of your 
trading pa rtners in addressing this challenge.   
4.50.   Finally, the Secretariat report highlights a number of instances where Solomon Islands has 
yet to fully co mply with its WTO obligations. 58 tariff lines have applied tariffs that exceed their 
bindings, while another 2 8 tariff lines may  exceed their tariff bindings. The internal goods tax is 
applied at a higher rate on imports than o n domestically produced goods. The Government has not 
adopted legislation to implement the TBT agreement, nor made any notifications under that 
Agreement, i ncluding of existing measures. The Government has not implemented any legislation 
to implement the TRIPS agreement, nor made a notification under the TRIPS Agreement or a 
submission to the TRIPS council.  The Government has not notifie d any  SPS measures to the WTO. 
These are just the most obvious examples.  
4.51.   While we recognize the capacity challenges that Solomon Islands faces, it is disappointing 
that these same issues were flagged during the last review, and in the interceding seven years of  
growth and political stability, they  have still not been addressed.  This is important for the WTO 
system, which relies on each of us to fully implement the commitments we signed up to. But the 
importance of these rules is arguably greater for the Solomon Islands than it is for the WTO, 
because the transparency and predictability of these WTO commitments will help make the 
Solomon Islands more attractive to traders and investors, and promote the economic 
diversification on whic h the country 's future depends . We would urge the Government to prioritize 
addressing these gaps, and encourage it to seek the assistance of the WTO Secretariat or other 
Members should it encounter difficulties in doing so.  
4.52.   Solomon Islands is closer to achieving its development objecti ves than it was at the last 
review, thanks to its hard work; and we want to help our Solomon Islands friends address the 
more complex challenges ahead and keep moving forward.  
NEW  ZEALAND  
4.53.   At the outset, I would like, on behalf of the people of New Zealand,  to convey my sincere 
condolences in respect of the devastating earthquake that hit last week.  Our heartfelt sympathies 
are with the family of the child who died and with the people of the provinces of Makira, Malaita 
and Guadacanal where I understand th e damage has been most severe. New Zealand knows 
something of the devastating impact earthquakes can have and we are working closely with the 
Government of the Solomon Islands to assist in the recovery process.  
4.54.   Turning to the purpose of our meeting today, N ew Zealand welcomes this opportunity to 
engage with Solomon Islands on the occasion of its fourth Trade Policy Review. We appreciate the 
Secretariat 's thorough outline and the Minister 's overview of the challenges and opportunities that 
lie ahead. We noted  the emphasis he has placed on both the reform programme and its 
implications for trade policy and welcome his commitment to deepened regional economic 
integration, not least through the PACER -Plus negoti ations. Our thanks also to the discussant who 
has cr ystaliz ed the issues the Solomon Islands faces, while acknow ledging the locational and 
size-related difficulties it has. In particular, New Zealand expresses its appreciation to the 
Discussant for her very practical suggestions for the country 's trade poli cy going forward.  
4.55.   New Zealand and Solomon Islands have a long and friendly bilateral relationship. Since the 
previous review in 2009, two -way trade has remained strong albeit rel atively modest at 
NZ$37  million, however New Zealand 's economic relationship with the Solomon Islands continues 
to develop along with the growth in the Solomon Island 's economy. In recent years, our 
relationship has been underpinned by New Zealand 's participation along with Australia in the 
Regional Mission to Solomon Islands (RAMS I), which has helped create the stable conditions that 
have led to significant economic growth in Solomon Islands and set the scene which enables our 
trade relationships to grow further.  
4.56.   In the economic sphere, both Solomon Islands and New Zealand benefit  from Solomon 
Islands ' participation in the Recognised Seasonal Employer (RSE) Scheme. New Zealand has 
progressively increased the cap under the RSE scheme from 8000 to the recently announced 
increase t o 10500 for the 2016/17 season.  Increased labour mobil ity, has delivered mutual WT/TPR/M/349 • Solomon Islands  
 
- 19 - 
 
  benefits through increased productivity for New Zealand 's growing horticultural industry and 
significant employment and remittance opportunities for Solomon Island nationals.  
4.57.   New Zealand appreciates the challenges faced by Solomo n Islands as a least developed 
country in regards to a growing schedule of international engagements and obligations. In this 
regard , we commend Solomon Islands having notified its Category A commitments under the 
Trade Facilitation Agreement. We encourage  the Solomon Islands to ratify this agreement as soon 
as possible, noting that only 8 more Members are needed to ratify before this Agreement enters 
into force.   
4.58.   It is nonetheless a concern that Solomon Islands has not yet made any notifications to the 
WTO since 2009. The WTO 's reporting that 58 tariff lines exceed WTO bindings is also something 
that needs to be urgently addressed. We look forward to any clarifications and actions that 
Solomon Islands can make in regards to these matters. Consistency aroun d rep orting – and being 
up to date - is of systemic benefit to all Members, including the Solomon Islands.  
4.59.   New Zealand has also been working closely with Solomon Islands in the fisheries sector to 
improve compliance capabilities – not least in terms of the EU regulatory requirements - and 
enhance export revenues for Solomon Islands ' important tuna exports.  Similarly, New Zealand 
has also appreciated the Solomon Islands efforts in the WTO to advance fi sheries subsidies 
negotiations.  We now look forward to co ntinuing to work together to ensure MC11 delivers 
effective fisheries subsidies prohibitions as called for in SDG Target 14.6.   
4.60.   Fossil fuel subsidy reform is another area of significance. It is an issue which we consider to 
be of systemic interest to the multilateral trading system. It has of course also been recogniz ed by 
Leaders through its inclusion in the Sustainable Development Goals. In this regard, New Zealand 
welcomes Solomon Islands ' increased focus on renewable energy, and we underline the 
import ance of continuing fossil fuel subsidy reform for all WTO Members.  
4.61.   New Zealand is encouraged by Solomon Islands efforts for multilateral, regional and 
bilateral integration in the Pacific region. For example, we are cooperating well together to achieve 
a positive outcome in the Pacific Agreement on Closer Economic Relations (PACER) Plus regional 
trade agreement negotiations. These are now close to conclusion and we welcome Minister 
Tozoka 's personal commitment and energy to this concluding phase. We appreci ate the continued 
engagement of the Minister in this regard. New Zealand and Australian Trade Ministers recently 
wrote to Forum Island Trade Ministers to help facilitate concluding the PACER Plus negotiations.  
4.62.   PACER Plus will be a high quality agreement w ith a unique development dynamic.  PACER 
Plus was designed from its inception not to be a conventional free trade agreement that focused  
exclusively on market access. This reflects the importance of the Pacific region to New Zealand and 
Australia and the ch allenges confronted by some of our close Pacific neighbours. As a trade and 
development agreement, PACER Plus presents a unique opportunity for participating Forum Island 
Countries to increase their participation in the international trading system and, wi th the 
assistance that will be provided by Australia and New Zealand, use trade as an instrument to 
alleviate poverty, increase living standards of their people and meet the United Nation 's 
sustainable development goals.  
4.63.   The Joint Commitment for Developmen t programme is an important overarching document 
for the bilateral relationship and has the goal of achieving economic growth, a well -educated 
workforce and a safe and stable Solomon Islands. We look forward to continuing our strong 
cooperatio n with Solomo n Islands to realiz e this goal.  
4.64.   New Zealand welcomes Solomon Island 's commitment to the multilateral process and looks 
forward to further discussion of the issues we have raised during the course of this review.  
VANUATU  ON BEHALF  OF THE PACIFIC  GROUP  
4.65.   The P acific Group wishes to convey its sympathy to the Government and people of the 
Solomon Islands for the recent 7.8 magnitude earthquake that damaged 35 houses in Makira. The 
Pacific Group also supports the statements made by the ACP Group and the LDC Group.  WT/TPR/M/349 • Solomon Islands  
 
- 20 - 
 
  4.66.   The Solomon Islands is a valued member of the Pacific Group, an a signatory to number of 
regional trade agreements such as the Pacific islands Trade Agreement and the Melanesian 
Spearhead group trade agreement which are aimed at closely inte grating the re gion. The 
Solomon  Islands is the third largest Pacific country in terms of population size and therefor an 
important market and trading partner. Fiji and Papua New Guinea account for 6.5% in 2010 and  
5.1% in 2015. The Solomon Islands is well known througho ut the Pacific islands for its popular 
tuna export, Solomon Blue.  
4.67.   The Group wishes to thank the Government of the Solomon Islands and the WTO Secretariat 
for their reports. Both reports provide a good overview of the trade and related policies and trade 
strategies of the Solomon Islands.  
4.68.   The Pacific Group welcomes the various trade reforms that have been undertaken by the 
Solomon Islands since its last review in 2009. These included:  
 The adoption of its dedicated National Trade Policy in 2015 which aims to transform the 
Solomon Islands into a competitive economy, will guide Solomon Islands trade initiative and 
mainstream trade policies into the national development policies.  
 Customs reforms which include the modernization and automation of customs systems 
thought the adoption of ASYCUDA World in 2013, streamlining of HS System, and the 
enactment of the customs valuation legislation . 
 Adopted a public procurement legislation, and a new Biosecurity Law (2013) . 
 Has established a National Trade Development Committ ee, chaired by the Minister, with 
Members from Government and the private sector, to deal with all trade issues . 
 These reforms are supported by the National Transport Plan (2007 -2026) and the National 
Infrastructure Investment Plan (2013). The liberalizati on of the telecommunications sector is 
increasing the accessibility of mobile telephony and internet.  
4.69.   In addition to this, despite the limited institutional capacity the Solomon Island sis doing its 
best to implement its WTO obligations. On the WTO Trade F acilitation Agreement, the Solomon 
Islands has submitted its notification of Category A commitments and working on ratification. The 
Group also notes from the report that other reforms are ongoing and much more are contemplated 
to improve trade policy and the business and investment environment including a competition 
policy and a revision to the Customs Act.  
4.70.   However, all these reforms will not make sense unless the main problem of productive 
capacity, standards conformity and other challenges as reflected in both reports are not 
addressed. Like many small islands States in the Pacific, the Solomon Islands ' economy is 
supported by a limited range of exports. These include forestry logs, fisheries and a few 
agricultural products. These products make up around  28% of GDP. Except for fish much of these 
are exported in raw of semi -processed forms. Much more needs to be done to promote value 
adding and processing as envisaged in the national trade policy framework. In addition, the 
services sector, particularly to urism holds potential for trade and growth but tourism infrastructure 
and tourism services will need to be enhanced.  
4.71.   While Solomon Islands had experienced strong growth in the aftermath of the financial 
crises and maintained modest growth in recent years, significant challenges remain. The closure of 
the mining sector and expected decline in forestry sector are likely to reduce future growth 
prospects. This is particularly so if forestry, which is a source of export earnings and export tax 
revenue declines.  These declines in export revenues are starting to be felt as reflected in trade 
deficits for the past three years, as shown in the WTO report. Solomon Islands also depends 
heavily on trade preferences such as GSP for much of its trade and therefore the er osion of these 
preferences such as GSP for much of its trade and therefore the erosion of these preferences 
brought about by mega -regional FTAs and the deepening of FTAs by its major trading partners 
signals a future trading environment that would be highl y competitive. The possible graduation of 
the Solomon Islands from LDC status will also deny them the trade preferences on which they 
depend. In the face of all these, the frequent occurrence of natural disasters such as the recent 
earthquake could disrupt  the gains that have been made to strengthen domestic industry and 
trade.  WT/TPR/M/349 • Solomon Islands  
 
- 21 - 
 
  4.72.   Therefore, the Group underscores the important role of the WTO and Aid for Trade. The 
WTO, in providing an open, transparent, stable and fairer trading system for small countries and  
LDCs like the Solomon Islands. Aid for Trade, in addressing the above trade challenges, and in 
translating the national trade policy objectives of the Solomon Islands Government into tangible 
benefits on the ground. In this connection, the Pacific Group a cknowledges the support already 
provided through the EIF and by development partners to assist with reforms already undertaken 
and those which are ongoing.  
4.73.   However, the Group notes with concern that the overseas development assistance to the 
Solomon Island s is declining as stated in the WTO report. The Pacific Group would like to call on 
development partners to provide the required assistance to enable the Solomon Islands 
Government to complete the planned reforms that will improve the business environment and 
promote investment, but more importantly, will strengthen the productive capacity, increase 
domestic production, promote value adding and diversify the economy to other agricultural 
products such as cocoa, copra and palm oil. These would help strengthe n trade capacity, support 
economic growth and create employment for the Solomon Islands.  
SINGAPORE  
4.74.   We express our solidarity with the people of Solomon Islands who have been affected by the 
recent earthquakes.  
4.75.   We note the positive economic growth in Solom on Islands since its last Trade Policy Review. 
This has been accompanied by a decline in poverty rates and an increase in per capita income. We 
welcome Solomon Islands ' National Development Strategy 2016 to 2035, as well as the efforts to 
mainstream trade into this strategy in order to boost trade and investments. While the Secretariat 
report notes that Solomon Islands ' current interest in the multilateral trading system is limited, the 
high-level delegation from Honiara to the WTO today suggests otherwise.  We hope that the 
delegation will find the comments from Members today useful in its formulation of its trade 
strategy, and also the benefits the multilateral trading system can bring for growth and 
development. As a small island city -state which has benef ited greatly from trade, Singapore 
believes that that trade liberaliz ation, too, can benefit Solomon Islands significantly, and 
complement its National Development Strategy in terms of creating jobs and improving living 
standards.  
4.76.   A key step to boosting t rade growth is that of ensuring that trade can flow effectively and 
efficiently. The WTO Trade Facilitation Agreement, when implemented, will play a major role in 
facilitating this. We welcome Solomon Islands ' submission of its Category A commitments, and are 
heartened to hear that Solomon Islands has already started implementing provisions of the TFA. 
We hope that Solomon Islands ' ratification process will be completed as soon as possible. We also 
encourage Solomon Islands to accept the Protocol of Amendme nt on the TRIPS Agreement, which 
can bring significant public health benefits to developing countries and LDCs including the Solomon 
Islands.  
4.77.   It is also crucial to ensure that traders can operate under predictable conditions. In this 
regard, we strongly u rge the Solomon Islands to bring its 58 tariff lines into conformity with its 
WTO commitments, and also to submit its notifications under the WTO Agreements. We encourage 
the Solomon Islands to tap on the assistance offered by the WTO Secretariat to boost its technical 
capacity. Singapore also stands ready to provide relevant assistance through  our training 
programmes organiz ed together with the WTO Secretariat.  
BRAZIL  
4.78.   At the outset, Brazil wishes to express its solidarity to the people of Salomon Islands f or the 
tragic loss of life and the overall destruction during the recent earthquakes which hit the country.  
4.79.   We are glad to learn that Solomon Islands` economy has grown steadily since its last trade 
policy review, including a 7.9% peak in 2010. Trade has certainly contributed to this result – 
according to the secretariat review, exports and imports of goods and services accounted for 
approximately 50% of the GDP in the last five years.  WT/TPR/M/349 • Solomon Islands  
 
- 22 - 
 
  4.80.   Brazil als o congratulates Solomon Islands ' for its efforts to address the economic challenges 
ahead with enabling legislation and programs, such as the upcoming Customs Act review, the 
National Transport Plan 2007 -2026 and the National Infrastructure Investment Plan of 2013. The 
previous reforms in areas such as competition and investment are already bearing fruit to 
consumers in the telecom segment. Further reform is coming aimed to tackle productive capacity 
issues, improving infrastructure, health and education.  
4.81.   For Brazil, trade liberalization must proceed in a manner whi ch respects fundamental 
differences and asymmetries in the levels of development of the WTO M embers; least developed 
Members ' endeavors to promote economic diversification and to reduce vulnerability play an 
important role in this regard. In this sense, So lomon Islands is to be commended for its objective 
to diversify its economy beyond logging, mining, fisheries and other agricultural goods. The 
expansion of the services sector is a welcomed development in areas such as transport and 
telecommunications.  
4.82.   Brazil hopes to deepen its bilateral relationship with Solomon Islands. The bilateral trade 
flows remain extremely modest, and there is room for improvement. Brazil continues to follow with 
interest the domestic developments in the Solomon Islands with regar d to its trade policy. Let me 
conclude by wishing to the delegation of the Solomon Islands a successful Trade Policy Review.  
PAKISTAN  
4.83.   We would like to express our sympathy with the people and the government of Solomon 
Islands on the recent earthquake.  
4.84.   Despite the fact that Solomon Islands is a Least Developed Country with the economy 
relying on a few natural resources, growth has ranged between 2% and 10% since 2010. This is 
not a mean feat. Since its last TPR, Solomon Islands has shown a decline in the in cidence of 
poverty and an increase in per capita income. Challenges remain, but it seems that Solomon 
Islands is aware of them and trying to tackle them with appropriate policy measures.  
4.85.   Pakistan appreciates the reforms brought about by Solomon Islands in achieving price 
stability which include the adoption of a new debt management strategy, a new public financial 
management law, and the strengthening of the revenue collection system. Pakistan also 
appreciates the new Development Strategy of the Solomon Isl ands, which aims to diversify the 
sources of growth away from logging and subsistence activities and towards other sectors such as 
mining, fishing, and tourism. Improving the environment for business, trade and private sector -led 
growth is also much apprec iated.  
4.86.   Pakistan has observed that Services continue to be the largest sector of the economy of 
Solomon Islands, accounting for about 57% of GDP in 2014. Financial system assets grew strongly 
during the review period. Similarly, in the telecommunications s ector, there has been significant 
growth in the mobile segment. After the adoption of the Telecommunications Act in 2009 there 
was a marked liberalization of the sector. Maritime sector also has potential for further growth. 
Pakistan would encourage Solomo n Islands to focus more on its services sector and seek to attract 
more foreign investment in these sectors.  
4.87.   Pakistan appreciates that Solomon Islands have notified their Category A commitments and 
would like to encourage the Solomon Islands to ratify the TFA once it has identified its technical 
assistance requirements.  
4.88.   Pakistan and the Solomon Islands have recently formalized their diplomatic links. Pakistan 
and Solomon Islands feel that there are opportunities for furthering their bilateral relations, 
especially in the field of Education.  
DOMINICA  ON BEHALF  OF THE OECS  WTO  MEMBERS  
4.89.   I make this statement on behalf of the OECS WTO Members.  
4.90.   The Secretariat 's Report and the Report of the Government of the Solomon Islands show a 
small vulnerable economy, a small  island developing state and a least developed country in clear WT/TPR/M/349 • Solomon Islands  
 
- 23 - 
 
  acknowledgement and recognition of the significant challenges and vulnerabilities that it faces 
from its size and remoteness, but which is nonetheless determined to overcome those challenges 
to pursue inclusive development and poverty alleviate.  
4.91.   In its report, the Government highlights some of those challenges including shortage of 
productive capacity, poor infrastructure, access to finance and credit for small businesses, high 
utility costs  and expensive communications. The Secretariat report also notes the heavy exposure 
to natural disasters and external shocks. In that regard our sympathies goes out to the 
government and peoples of the Solomon Islands for recent earthquake.  These are challen ges that 
the Member States of the OECS can fully understand and associate with.  
4.92.   Despite these challenges, it is commendable that since the last review the Solomon Islands 
have recorded economic growth rang ing from 2% and 10% since 2010.  While this growth h as 
been trending downwards, it has r emained steady in recent years.  The reports also indicate 
declines in the incidence or poverty and a strong increase in per capita income. The str ides in 
economic development have  enabled the Solomon Islands to meet two thresholds for LDC 
graduation placing it at the cu sp eligibility for graduation. These achievements are certainly to be 
commended.  
4.93.   We also note the positive sectoral performance most part icularly in the logging sector.  It is 
however a concern that there is  a very he avy reliance on that one sector.  This tends to be 
common feature of very small economies, and the challenge and policy imperative for economic 
diversification is o ne which all small states face.  The potential of the tourism industry and the 
telecommunications and transport sectors are therefore encouraging.  
4.94.   It would be important to note, however, that despite the progress made and the impending 
LDC graduation, many of the challenges and vulnerabilities will persist as Solomon Islands will 
continu e to remain a small island developing state  and small vulnerable economy. Continued 
financial support, technical assistance and capacity building including through Aid for Trade and 
the EIF as well as special and differential treatment in the WTO remain im portant.  
4.95.   As an SVE/SIDS and LDC, it is evident and to be expected, that for the Solomon Islands 
trade is vital and integral and indispensable.  As the report states, this reliance on trade underpins 
the Solomon Islands ' commitment to pursuing policies which  promote the expansion of a liberal 
trading regime and greater diversification of domestic production to secure more value added fr om 
exported goods and services.  The OECS therefore commends the Solomon Islands for the adoption 
of its first formal trade po licy framework in 2015 which seeks to mainstream trade into its national 
development strategy.  
4.96.   We also note and commend the Solomon Islands for the extensive policy and economic 
reforms and the legislative and regulatory devel opments that the Government ha s undertaken 
since the last review. These include modernization of the Customs Act, the National Transport 
Plan, the National Infrastructure Investment Plan and its plans for reforms in intellectual property.  
4.97.   The WTO and the Multilateral Trading System is vitally important for LDCs and small island 
economie s such as the Solomon Islands. The Government has declared its c ommitment to the 
WTO framework and the progress it has made to implement and domesticate the WTO 
Agreements. The establishment of its missio ns in Geneva is a clear indication of this.  The Solomon 
Islands and the OECS share the same building so we know the capacity limitat ions faced which we 
also share.  But we commend the Solomon Islands for its engagement in a number of areas 
including the LD C issues, SVE is sues, and fisheries subsidies. As we look forward to the work and 
agenda for MC11 , the OECS and the Solomon Islands will continue to advance the interests and 
concerns of LDCs and SVEs.  
JAPAN  
4.98.   We, the Solomon Islands and Japan, are connected  to each other by the Pacific Ocean, and 
have been important partners for years. We share a wide range of policy issues, such as global 
climate change and prevention of natural disaster, and have addressed those based on the mutual 
cooperation.  WT/TPR/M/349 • Solomon Islands  
 
- 24 - 
 
  4.99.   In this sen se, this year, we have reached a remarkable milestone for deepening our mutual 
relationship, which was the establishment of our Embassy in Honiara. Japan will make continuous 
efforts to maintain and further develop the strong ties with the Solomon Islands.  
4.100.   Let me begin by touching on the general economic situation. According to the Secretariat 's 
report, the Solomon Islands ' economy has been achieving sustained economic growth since the 
last review. Among others, the service sector has been becoming the larg est sector in its economy 
and reached approximately 57% of its GDP in 2014.  
4.101.   Japan positively evaluates that Solomon Islands has u ndertaken newly formulated 
long-term economic policies toward inclusive growth and reducing poverty.  
4.102.   Now let me briefly touch  upon its trade policies.  
4.103.   Solomon Islands have been engaged in activities at the WTO since its accession in 1996. 
For example, it suggested a valuable workshop related to small economies and has joined 
approximately 60 technical assistance activities, each  of which Japan commends. On the other 
hand, Japan believes that The Solomon Islands haven 't taken part in any plurilateral agreement 
negotiations. We hope that Solomon Islands actively engage in those negotiations.  
4.104.   When it comes to the RTAs, the Solomon I slands have concluded 5 RTAs, and are currently 
in negotiations with the EU. Japan hopes that the Solomon Islands continuously engage in the 
trade liberalization and that its already -concluded RTAs further reinforce the Multilateral Trade 
System.  
4.105.   Finally, let me make a couple of comments on some specific issues.  
4.106.   First, I will speak briefly about the Trade Facilitation Agreement. Although Solomon Islands 
have not yet joined the Trade Facilitation Agreement, it established a committee for trade 
facilitation and is now proceeding with preparation for category notification. Also, Japan commends 
that it established a taskforce aiming at establishing a special zone.  
4.107.   Secondly, Japan encourages Solomon Islands to undertake appropriate reforms including 
public safet y, adequate port usage fee and skilled port facility workers, each of which are 
important elements to unleash its potential.  
4.108.   In conclusion, I would like to express our strong wish to continue cooperation between the 
Solomon Islands and Japan.  
REPUBLIC  OF KOREA  
4.109.   On behalf of the Government of Korea, I would like to express my deepest sympathy to the 
people of Solomon Islands, who were seriously inflicted by the recent earthquake.  
4.110.   Since the establishment of the bilateral diplomatic relationship in 1978, Korea  and Solomon 
Islands have developed a sound bilateral economic relationship. But, at the same time, I must say 
that the two countries still have a large room for materializing the full potential of our economic 
relations. In particular, the bilateral trade  heavily depends on a very limited number of products. 
Korea mainly imports fishery products from Solomon Islands, while the export from Korea to 
Solomon Islands is concentrated in automobiles. Korea hopes that the two countries continue 
expanding its bila teral trade and diversifying our trade products.  
4.111.   In addition, many Korean business people are interested in sea -ports infrastructure -
building and fishery products processing. In this regard, Korea also hopes the investment into 
Solomon Islands increases i n the near future, too. Also, Korea hopes our two countries keep 
seeking ways to enhancing investment bilaterally and multilaterally.  
4.112.   As the Secretariat report says, although Solomon Islands ' participation in the WTO has 
been limited, it activities are rec ently increasing. Korea welcomes that Solomon Islands has 
notified its category A commitments under the Trade Facilitation Agreement and hopes that WT/TPR/M/349 • Solomon Islands  
 
- 25 - 
 
  Solomon Islands will soon finalize all the necessary procedures for the ratification of the 
Agreement.  
FIJI 
4.113.   At the outset, the delegation of Fiji, wishes to join other delegation in expressing its deep 
sympathy with the Government an d the people of Solomon Islands  on the recent 7.8 magnitude of 
earthquake that struck 130 kilometers  from the capital Honiara and t he subsequent damages 
incurred. Having experienced natural disasters such as TC Winston, Fiji understands well the 
feelings of such losses.  
4.114.   The delegation of Fiji also wishes to welcome H.E Hon. Minister Tozaka and the capital 
based delegation from Solomon  Islands to Geneva. Fiji also associates itself with the statement 
made by the Pacific Group.  
4.115.   Fiji commends Solomon Islands on the positive reforms since its last Trade Policy Review. 
Being a small economy and an LDC, amid the exponential challenges, of in frastructure, high cost 
of doing business, distance and isolation from major markets, the Government of Solomon Islands 
has managed to have made profound progress in the area trade, investment and economic 
growth.  
4.116.   Solomon Islands and Fiji have a long stan ding trade and economic relationship. Fiji and 
Solomon Islands are both parties to the Melanesian Spearhead Group Trade Agreement. Fiji looks 
forward t o working with Solomon Islands i n areas of common trade interest in the bilateral, 
regional and multilate ral forum.  
4.117.   Fiji wishes to congratulate the Government of Solomon Islands for adopting the legislation 
on customs valuation, undertaking its category A commitments under the Trade Facilitation 
Agreement and adopting the public procurement legislation.  
4.118.   Furth ermore, we wish to recognize the progress of Solomon Islands in the area of 
transparency and accountability for its monetary authority.  
4.119.   In addition to this, the 2015 Trade Policy Framework (TPF) of Solomon Islan ds outlines a 
number of policy measures and strategies to shape the trade, investment and economic landscape 
of the nation. We also note the technical assistance that will be required by Solomon Islands in 
implementing its Trade Policy Framework. Fiji is confident that with the successful implementa tion 
of the Trade Policy Framework of Solomon Islands, the economy will experience further positive 
growth and development.  
4.120.   Fiji encourages Solomon Islands to further capitalise on the LDC concessions under the 
multilateral trading system and also urges th e developed countries to positively consider the S&DT 
provisions within the WTO agreement that will benefit small economies including LDCs like 
Solomon Islands.  
4.121.   Fiji and Solomon Islands have strong interest in the fisheries sector and other development 
issues. Fiji looks forward to working with the Solomon Islands through the SVE, ACP and the 
Pacific Group in areas of common interest at the WTO.  
UGANDA  
4.122.   At the outset, my delegation expresses its deep sympathy  to Solomon Islands for the 
earthquake that has ta ken place in that country and extends its condolences to the families  of the 
victims.  
4.123.   We note with satisfaction that the Government of Solomon Islands has put institutional 
framework in place to streamline the main principles that will guide trade policy i n that country. 
They have national development strategies for national policies guidelines and a national trade 
development council to focus on trade policy issues, which is aimed at overcoming the 
vulnerabilities and open up new possibilities for the Isla nds. WT/TPR/M/349 • Solomon Islands  
 
- 26 - 
 
  4.124.   This should help to contribute to the economic development and eventually enjoyment of 
goods and services the Solomon Islands may need. But we note that most of the goods and 
services enjoyed by Solomon Islands are not provided locally. The trade poli cy should therefore be 
to diversify and boost domestic production for consumption and exports.  
4.125.   Solomon Islands can utilize aid for trade provisions to improve its trading capacity and 
more investment in the tourism sector will go a long way to open up the Island to the global trade 
in services.  
4.126.   Fisheries is one of the main economic sector activities and it  should be put in place proper 
and effective management and protection of that sector. All this should be to h elp mainstream 
trade under the National Dev elopment S trategy for an integrated engagement which would assist 
in the medium - and long -term performance of the economy and a service policy platform that 
builds upon and coordinates sectoral priorities.  
INDIA  
4.127.   First of all, I extend our deepest sympathy to the people of Solomon Islands who have 
been affected by the recent earthquake.  
4.128.   We have noted from the Government and Secretariat reports that since the last trade 
policy review, Solomon Islands has taken several positive steps to promote growth and eco nomic 
development including formulating a dedicated trade policy framework, progress in the fisheries 
sector and taking steps to promote investment. During the period, the incidence of poverty has 
declined and per capita income has increased. Reforms have also been undertaken to strengthen 
fiscal management and revenue collection. We have also noted the challenges for the economy 
include high cost of public services provision due to its geographical setting, narrow economic 
base, and dealing  with poverty an d vulnerability to economic shocks and natural disasters. Despite 
the challenges, the economy of Solomon Islands has expanded by 2% in 2014 and 3.2% in 2015.  
4.129.   India and Solomon Islands share warm and friendly relations. Under the Indian Technical 
and Econom ic Co-operation programme, India has been offering scholarship slots to experts and 
professionals from Solomon Islands for the capacity building in the area of human resources. India 
is also working with Solomon Islands to offer assistance in the areas of renewable energy, IT 
development, education, healthcare, etc. India 's trade with Solomon Islands though modest has 
been growing steadily in recent years and stood at US$70.39 million in 2015 -16. 
4.130.   Solomon Islands is blessed with natural resources and we take  this opportunity to 
appreciate the efforts of Solomon Islands for further strengthening and diversifying its economy. 
To conclude, we look forward to working with the authorities of Solomon Islands for further 
expanding our trade and investment ties for m utual benefit.  
HONOURABLE  MR. MILNER  TOZAKA  (HEAD  OF DELEGATION)  
4.131.   On behalf of Solomon Islands, I would like, first of and foremost, to thank all the Members 
who have spoken this morning and provided comments and recommendations to our delegation. 
Please be  assured that we will look upon these favo urably, and we will respond to those directly 
posed to us, where possible, by Thursday.  
4.132.   May I also take the opportunity to acknowledge and thank Excellences, Representatives for 
the extension of sympathy on the ear thquake that strikes Solomon Islands. At the end of this first 
TPR session, I am pleased to say that we are greatly encouraged by the words of support shown 
here today for Solomon Islands. We are a small country and our geographic isolation and limited 
productive capacity means we often operate on the margins. But, the encouragement 
demonstrated here today shows us that we are being taken seriously, and we strongly believe that 
our country, with the support of the international community, can contribute pos itively to the 
world economy.  
4.133.   Going forward, we need to work together to ensure that our trade and economic 
infrastructure is developed sustainably and promotes greater compliance with the multilateral rules WT/TPR/M/349 • Solomon Islands  
 
- 27 - 
 
  based system. We believe in a strong, stable an d open economy that will generate economic, 
social and environmental benefits for the people of Solomon Islands.  WT/TPR/M/349 • Solomon Islands  
 
- 28 - 
 
  5  REPLIES BY THE REPRE SENTATIVE OF SOLOMON ISLANDS  AND ADDITIONAL 
COMMENTS  
5.1.  I begin my closing remarks by thanking you , Chair,  for the efficient manner in which you 
have conducted our Trade Policy Review proceedings. The leadership you have shown has enabled 
us to engage in fruitful and constructive discussions.  
5.2.  Further, I wish to express my sincere gratitude to Her Excel lency Mrs. Dalia Kadišienė, 
Permanent Representative of Lithuania for accepting to be our discussant. Your diligent analysis 
and summation of Solomon Islands trade policy measures and indicators will prove particularly 
useful for us upon our return to capi tal. 
5.3.  Before I begin to address the topics that were brought to our attention, both in the advance 
written questions and during the first review session on Tuesday, allow me to acknowledge and 
extend our deep appreciation for the support that was pledged by  those Members that took the 
floor on Tuesday and for commending Solomon Islands on its efforts to reform our trade policy 
regime. We acknowledge and praise your efforts to support us in our quest to reduce poverty and 
bring about sustainable growth throug h trade enh ancing policies and reforms.  
5.4.  Particular mention goes to: Australia, Canada, Chinese Taipei, European Union, New Zealand, 
Thailand, United States, Vanuatu on behalf of Pacific WTO Members, Singapore, Brazil, Pakistan, 
Dominica on behalf of the OECS WTO Members, Japan, Republic of Korea, Fiji, Uganda, and India 
for their prior written questions and statements made during the first day 's session. We thank 
those WTO Members who attended the first session of our TPR. Your presence is very much 
appreci ated. 
5.5.  I must acknowledge that few of Solomon Islands ' key development partners, are represented 
here today.  
5.6.  To Australia, as our largest development partner, Solomon Islands acknowledges and 
commends their consistent support efforts in the area of trade, particularly in customs, the PHAMA 
programme which helps to facilitate export market opportunities for local producers, support to 
Biosecurity Solomon Islands, support to implement the National Transport Fund to build Solomon 
Islands ' infrastructure and su pport in the development of the Cruise shipping tourism industry. 
These are just some of the many programmes the Australian Government is involved in supporting 
throughout Solomon Islands.  
5.7.  To the EU, I acknowledge them as one of Solomon Islands ' traditiona l development partners 
which continues to support the people of Solomon Islands through its rural development 
programme. This has seen large benefits across the majority of our population, in addition to the 
climate change adaption programme which aims to reduce the vulnerability of people and 
communities affected by climate change. The EU's Everything But Arms (EBA) initiative enables 
Solomon Islands fisheries to ably compete with much larger developing countries and continues to 
provide a significant sour ce of income and employment in rural communities. Despite the current 
state of play in the EU -Pacific Economic Partnership Agreement (EPA) negotiations, Solomon 
Islands is committed to expanding its trade relations with the EU and will work with relevant 
agencies and partners to achieve this.  
5.8.  I must also commend the Japanese G overnment for their infrastructure support to Solomon 
Islands, namely the expansion of the wharf at Honiara Port and the upgrading of the main highway 
in Honiara, which is currently on going. In addition, Japan also continues to fund programmes that 
support and upgrade educational infrastructure in the country.  
5.9.  To the Korean Government, I thank them for their support to develop training programmes 
across key sectors, namely in fisheries science, food security and agricultural development, urban 
and regional development, maritime and aviation security and capacity building support in forestry 
resource management.  
5.10.   To the New Zealand Government, Solomon Island s acknowledges the support provi ded to 
the Ministry of Finance and Treasury 's Inland Revenue division. The improvements to a number of 
domestic airports including ongoing work to upgrade the Munda Airport as the second international WT/TPR/M/349 • Solomon Islands  
 
- 29 - 
 
  airport will enhance tourism and economic growth opport unities across the provinces and the 
support to the fisheries sector.  
5.11.   I must also make a special commendation of our fellow WTO Members of the Melanesian 
sub-region of the Pacific, namely Fiji, Vanuatu and Papua New Guinea for the recent signing of the 
MSG Trade Agreement. This momentous occasion marks the further consolidation and deepening 
of our trade and economic, as well as social relations. We also like to extend our warm wishes to 
other WTO friends in the Pacific, namely Samoa and Tonga with which we  augur to work under the 
PICTA and the currently negotiated PACER Plus which includes Australia and New Zealand.  
5.12.   May I finish off these words of thanks by adding that the list above is not an exhaustive one, 
neither does it list all the programmes for whic h our development partners are providing support. 
To all other development supporters of Solomon Islands, both in the past and present, we extend 
our utmost gratitude for your continued commitment and dedication to improving the lives of 
Solomon Islanders.   
5.13.   Allow me now to briefly respond to the specifi c concerns that were raised by M embers on 
Tuesday, which can be read alongside the responses we provided to the advance questions. We 
also recogniz e that along with the issues identified below, there were oth ers raised which will not 
be discussed today, but which my delegation fully takes note of.  
5.14.   On WTO notifications , we recogniz e that we still have a considerable amount of work to do 
to notify the WTO of our trade policies and practices, to enhance transpar ency and ensure greater 
compliance with the rules of the multilateral trading regime. S pecifically on the TFA, 
Solomon  Islands will endeavour to ratify the Agreement in 2017 and submit its Category B and C 
notifications. I must clarify that Solomon Islands  did submit its customs valuation notification1, but 
unfortunately not in time for this TPR meeting.  
5.15.   Customary land ownership in Solomon Islands is a vital part of the culture and social 
framework of the economy . Solomon Islands understand s the concerns th at Members have raised 
on this issue and would like to assure those Members that land reform  is a priority for the current 
Government, in keeping with our development objectives to create a better investment 
environment.  
5.16.   On the issues of an overreliance on  the forestry and logging sector  inter alia  the evidence o f 
illegal logging, the current G overnment is encouraging downstream processing, and moving away 
from a reliance on round log exports. Reforestation efforts are under way in order to counter the 
depletion of the resource, as well as measures to control and better manage the issuing of licenses 
for logging activities.  
5.17.   Solomon Islands, as outlined in the TPR reports and by Members ' statements, is committed 
to seeing progress in the current ongoing fisheries subsidies  negotiations at the WTO related to 
overfishing and IUU, given the negative environmental and economic impacts.  
5.18.   Members ' recognition of the Solomon Islands ' reliance on a small number of export products 
further emphasiz es our need to diversi fy our product markets. Solomon Islands Government is 
currently identifying potential export products and markets, and attempting to address the 
principle constraints that have hindered participation by domestic producers to date. Harnessed 
with my Governm ent's efforts to establish special economic zones, we hope to create a conducive 
environment for growth in the productive and manufacturing sector that will expand and diversify 
our product base.   
5.19.   On the issue of the 58 tariff lines  that exceed their boun d rates, Solomon Islands notes 
Members ' concern on compliance with our commitments. The Solomon Islands Government will 
augur to address the issue of the non -compliant tariff lines in parallel with customs and tax 
reforms.  
5.20.   Tax reform  has been highlighted a s a priority area for the cur rent G overnment, and efforts 
have already begun to address these issues. Given the extent of the reforms to be carried out, 
                                                
1 G/VAL/N/1/S LB/1.  WT/TPR/M/349 • Solomon Islands  
 
- 30 - 
 
  Solomon Islands is facing a number of challenges identifying the technical capacity to undertake 
this task and as such, would fully appreciate the support of Members in order to achieve this goal.  
5.21.   Solomon Islands notes the concern raised by Members with regards to our ranking on the 
World Bank 's Ease of Doing Business Index , as well as the general investmen t climate and decline 
in FDI inflows. As stated in the responses to the prior written questions, the decline in FDI can be 
attributed to a reduction in logging licenses, which we see as an important step towards combating 
deforestation and illegal logging.  On the business environment, Solomon Islands has recently 
implemented a number of reforms in this area, set up an online business registry and facilitated 
greater ease of setting up and starting a business. These reforms, along with the pending 
investment  policy, should better align our rank with the investment reality on the ground.  
5.22.   Solomon Islands also wishes to inform Members that efforts to fight corruption are well 
advanced with the Anti -Corruption Bill to be re -introduced in parliament, following fu rther 
consultation, in early 2017.  
5.23.   A number of Members raised the issue of intellectual property rights  and the Solomon 
Islands commitment to improving our participation in this area. We express our commitment to 
implementing the TRIPS Agreement and access ion to WIPO, along with further efforts to 
strengthen policy and regulation in this area.  
5.24.   In recognition of the concerns raised by Members, in both the prior written questions and 
the statements made on the first day of our TPR meeting, Solomon Island wish es to assure that 
we will continue to work hard to meet the requirements as set out in the WTO Agreements. We 
note that whilst progress has been made over this review period, there is much room for 
improvement in time for the next review.  
5.25.   At this juncture , I must re -emphasiz e our call for support from our development partners to 
achieve the objectives as outlined in this review. Aid for trade initiatives, through the EIF for 
example, has provided considerable support to key sectors in our economy and there  is still much 
that these programmes can achieve through the support of development partners. Solomon 
Islands look forward to receiving more information on the development assistance support to be 
provided under PACER Plus from Australia and New Zealand.  
5.26.   In closing , I take this opportunity to acknowledge and thank the hardworking team at the 
WTO Secretariat for their professionalism and producing the TPR report for Solomon Islands. The 
team, Mr. Arne Klau and Mr. Nelnan Koumtingue, travelled to the other si de of the world, twice, in 
their commitment to produce a report that we are all very proud of. I thank the team for a job well 
done.  
5.27.   Finally, let me conclu de by reiterating my delegation ' sincere appreciation and thanks to you 
Madam Chair, and distinguishe d Members for your relentless support, valuable contributions and 
the encouragement shown to our team du ring this Trade Policy Review. Thank you for your 
attention.  
DISCUSSANT  
5.28.   First of all , I wish to extend my warm thanks to Minister Tozaka and his team, t o all the 
delegations which participated in this review, to you, Mada m Chairperson, and, of course, to the 
Secretariat for hard work throughout this exercise.  
5.29.   Now, please allow me to share very briefly with you some of my observations from the first 
day o f the TPR.  
5.30.   I am pleased to note that Members have commended the Solomon Islands Government on 
the efforts it has been making to implement what is necessary and important for the country 's 
economic reforms and on progress on many issues since 2009. This gre at job has resulted in real 
and concrete achievements: solid economic growth, increase in per capita incomes, and significant  
fall in government debt.  WT/TPR/M/349 • Solomon Islands  
 
- 31 - 
 
  5.31.   Countries have also recognized importance of the S olomon Islands ' long term approach to 
its economic pol icy, and expressed hope that the Nat ional Development Strategy 2016 –2035, the 
2015 trade policy framework, the newly set -up National Trade Development Council and the 
National Strategy for the Economic Empowerment of Women and Girls will lead to greater 
economic inclusion and participation in the formal economy.  
5.32.   However, despite the sounder macroeconomic situation attained over the period under the 
review, it was commonly recognized by Members that some problems such as poverty, 
unemployment, corruption, l ow-levels of education remain as painful issues which need to be 
addressed by the Solomon Islands Government as a matter of urgency and priority. Also, Members 
expressed worries regarding recent declining trends in overall GDP and trade growth (with both 
exports and imports posting declines in each of the last three years); the over -reliance on log ging 
exports. Countries emphasiz ed the need for the better management of forests (treasure of the 
country) in order to avoid deforestation, which is a real threat  under the current scale of logging 
activities and, in particular, the implied volumes of the illegal logging.   
5.33.   I believe that by signing and ratifying COP 21, Solomon Islands demonstrates its strong 
commitment to implement effective environmental measure s, in particular, bearing in mind its own 
vulnerability to climate change.   
5.34.   While understanding geographical, political, economic and social challenges that Solomon 
Islands is confronting with, its limited financial and human resources, Members assume tha t there 
is a space to improve the general business climate, attract more foreign direct investment and 
diversify economic activity.  
5.35.   In addition, better compliance with the WTO rules (including notification requirements, 
commitments regarding applied tarif fs rates which exceed the bound rates, etc.) was mentioned as 
a factor that would positively influence the economic environment of the S olomon Islands . Also, 
countries stressed the need for more action in the areas of competition policy, intellectual prope rty 
rights, government procurement, transparency, TBT and SPS.  
5.36.   Speaking about the traditional sectors of the S olomon Islands  economy (as agriculture or 
fisheries), it would be desirable to turn the efforts towards creation of more value added, and in 
tourism sector to concentrate more on unique features of the country. That would not only 
strengthen local productive capacities, but also favourably affect returns from the export.  
5.37.   In general, Members positively commented country 's relatively open foreign tra de regime. 
At the same time, they noted that more progress on improving the investment climate is needed, 
especially in addressing the land ownership issues. It is encouraging that Solomon Islands ' 
Government recognizes that increasing foreign investment h as a key role in achieving important 
goals, including  diversification of the country 's economy. Diversification of economy is identified by 
the Government as a top priority in order to overcome country 's vulnerability to external shocks, 
improvement its bu siness climate, enhance competitiveness.  
5.38.   I personally was impressed by the information provided by the Minister on the first day of 
TPR on the introduction of electronic business registration system, which I am sure will be very 
much conductive to the imp rovement of the investment climate in the country.  
5.39.   Members have congratulated Solomon Islands on improvements in the customs area. They 
praised moving to ASYCUDA World, establishment of the National Trade Facilitation Committee, 
also the notification of C ategory A commitments under the Trade Facilitation Agreement (TFA) and 
urged to speed up domestic procedures to ratify TFA as soon as possible, especially taking into 
account that only 8 more Members are needed to ratify before this Agreement enters into f orce. 
Early implementation of FTA will certainly benefit all Members, including Solomon Islands itself.  
5.40.   I am inclined to believe that the responses Minister Tozaka provided during this TPR 
responded to many concerns of the Members and reassured them that S olomon Islands will 
continue reforms already started aiming to achieve important long -term goals inscribed in 
countries National Development Strategy. Also, I believe, that country already now is considering 
its future vision when S olomon Islands  will grad uate from LDC status. And I wish constructive and 
creative solutions in this regard.  WT/TPR/M/349 • Solomon Islands  
 
- 32 - 
 
  5.41.   In this context, it is necessary to mention that many Members, especially important trading 
and regional partners urged Solomon Islands to identify its needs for capacity building and 
indicated their good will to provide assistance needed.   
5.42.   Members welcomed the opening of Solomon Islands ' Mission in Geneva, which definitely will 
facilitate country 's active engagemen t in supporting of MTS. With MC 11 approaching , I believe t hat 
Solomon Islands will contribute its part by active and constructive engagement in the process of 
preparation for the Conference, in shaping the contours of the pac kage of possible outcomes of 
MC11 important not only to S olomon Islands  and other LDC s, SVEs, small island nations, but to 
the entire membership of the WTO as well.  
5.43.   I am confident that these two days of hard work provided Solomon Islands delegation a 
unique opportunity to see and evaluate its policies from the other Members ' perspectives. I wi sh 
Solomon Islands delegation to take a good note of these comments and use them as a reference in 
its future policy formulation and implementation.  
5.44.   Yes, there is still long way to go, but it is important to keep doing what you have started 
already, conti nue your important reforms, use advice and assistance, learn from good examples, 
especially of your regional partners.  
5.45.   Finishing , I would like to say that I was also very much encouraged by Minister 's statement 
on the first day of TPR, especially by his Go vernment 's goal to make the S olomon Islands  No. 1 
investment destination in the Pacific, and as New Year is approaching and we all have some wishes 
I frankly wish the Minister to achieve this important goal may be not in 2017, but as soon as 
possible.  
5.46.   Finally, I wish Solomon Islands delegation a very safe trip back home.  
BENIN  ON BEHALF  OF THE LDC GROUP  
5.47.   The delegation of Benin would like to thank the delegation of Solomon Islands for the 
valuable information they have supplied on the country's achievements  in the economic and trade 
areas since the last trade policy review in 2009, including poverty reduction and improvement of 
the purchasing power of its population.  
5.48.   Solomon Islands, an LDC and an island country, introduced economic, budgetary and trade 
reforms that have had a positive impact since 2009, with an estimated positive growth rate of 
2.9% in 2015. The outlook for 2016 is encouraging, with inflation remaining under control.  
5.49.   Regarding Solomon Islands' trade profile, the LDC Group would like to stres s that the 
country's economy is dominated by logging and mining, as well as fisheries and agriculture. In 
spite of the impact of the rising Solomon Islands dollar on imports and exports, which disrupted 
the country's trade balance, the balance of payments improved significantly in 2015, a sign that 
Solomon Islands is attracting foreign direct investment.  
5.50.   The LDC Group welcomes the efforts being made by Solomon Islands to build on the 
significant economic and trade results already achieved to date, with a vi ew to graduating from 
LDC status by 2018.  
5.51.   The LDC Group therefore invites North South and South South partners involved in bilateral, 
regional or multilateral cooperation to step up their support for the development efforts of the 
Solomon Islands so that i t can attain that goal as well as its objective of inclusive sustainable 
development.  
EUROPEAN  UNION  
5.52.   Let me first express our sincere appreciation to Solomon Islands ' delegation  for their timely 
replies that they have provided to our advance questions, as well as for the comprehensive 
presentation given on Tuesday and this morning.  WT/TPR/M/349 • Solomon Islands  
 
- 33 - 
 
  5.53.   The EU is pleased to note that this review has been very useful for better understanding the 
trade policies of Solomon Islands and we hope that Solomon Islands will duly take int o account 
some of the concerns and comments highlighted during this exercise, in particular with reference 
to the need to introduce lands policy reforms and to adopt anti -corruption legislation. And we have 
taken good note of the statement this morning in this regard.  
5.54.   The EU has submitted two follow -up questions to clarify further certain aspects of the 
Constituency Development Funds (CDF) regulations as well as of the land reform and we look 
forward to the replies in due course.  
5.55.   In conclusion, we would lik e to congratulate Solomon Islands for successfully concluding 
their TPR.  
VANUATU  
5.56.   First, let me extend, on behalf of the Pacific Group, the appreciation of the group to the 
Honourable Minister for responding to the various questions that were posed to the d elegation on 
the 13th of December. I also would like to thank Honourable Minister for the continuing 
commitment of Solomon Islands to the various trade agreements that bind the pacific countries 
together : the MSG Agreement, the Pacific Islands Countries Tr ade Agreement, and, of course, to 
seeing the conclusion of the PACER Plus agreement with Australia and New Zealand. All of which 
aim to closely integrate the Pacific region.  
5.57.   Solomon Islands is a very valuable member of the Pacific Group and, therefore we w ant to 
underscore the important role of the WTO and Aid for Trade in supporting the Solomon Islands 
moving forward the WTO in providing an open, stable, transparent and fair trading environment 
for small LDCs like the Solomon Islands. Therefore, the implem entation of the WTO -LDC decisions, 
particularly on the enhanced rules of origin and the services waiver are really important for small 
countries like Solomon Islands who are trying to diversify their economy from being dependent on 
a few commodities as we have heard in the last two days.  
5.58.   Aid for trade has a role in addressing challenges and in translating the national trade policy 
objectives of the Solomon Islands ' Government into tangible benefits on the ground. In this 
connection, the Pacific Group acknow ledges the support already provided through the EIF and by 
the development partners to assist with the reforms that have already been undertaken and which 
are ongoing.  
5.59.   However, the Group notes with concern, as hi ghlighted by the distinguished d iscussant, t hat 
the overseas development assistance to Solomon Islands is declining, as stated in the WTO report. 
The Pacific Group therefore would like to call on our development partners to provide the required 
assistance  to enable Solomon Islands to advance the ref orms that will improve the business 
environment, promote investment, and, more importantly, will strengthen the productive capacity, 
increase domestic production and diversify the economy.  
5.60.   Lastly, may I wish the Solomon Islands ' delegation a very safe trip  back to the region.  
UNITED  STATES  
5.61.   We sincerely thank the entire Solomon Islands delegation for your constructive participation 
in this TPR – we are now in the throes of preparation for our own TPR next week and appreciate 
the coordinated effort that goes into preparation for these Trade Policy Reviews and for composing 
the answers provid ed to our submitted questions. We also greatly value our Ambassador 
Kadisiene 's insights as Discussant – and, as always, the cheerful and efficient Chair and experts in 
the Secretariat.   
5.62.   Just to highlight again some of the areas of concern from the point of view of the U.S. – and 
thank you to Minister Tozaka for addressing many of these issues this morning - we appreciate all 
the challenges faced and commend steps taken to strengthen the economic policy framework an d 
economic growth. At the same time, we urge Solomon Islands to more proactively address 
diversification of the economy, intellectual property issues, illegal logging and reforestation, as well 
as missing notifica tions and land ownership issues. We 'd also like to quickly express that we look WT/TPR/M/349 • Solomon Islands  
 
- 34 - 
 
  forward to Solomon Islands ' ratification of the TFA, as we are optimistic that ent ry into force is 
within sight.  
5.63.   Finally, we look forward to your continued active engagement in  the work of the WTO and 
increased futur e presence in Geneva. We wish you the best possible outcome with respect to 
disaster recovery, and safe travels to everyone returning to capital.  
HONOURABLE  MR. MILNER  TOZAKA  (HEAD  OF DELEGATION)  
5.64.   I would just like to  reiter ate, on behalf of my delegation  and on behalf of myself, how 
thankful I am  to attend this TPR review  which has been concluded today. I would like to say how 
thankful I am, Madam Chair, for all the help that you have given to the officials and to mys elf. I 
have been able to speak openly and to also listen to the many constructive comments and 
questions. That is encouraging for me as a Minister responsible for foreign affairs as well as trade. 
I am responsible for some of these very important trade -related agreements as Chair of the 
National Trade Development Council both in the country and in the region. What I have heard from 
our discussions here will really help me to be ab le to advise my Government and  my Cabinet, 
particularly in those areas that yo u have highlighted. Areas where we are facing challenges, 
especially on land issues, on compliance, and on structure. The region came together and helped 
us to look good again. I am so grateful to the country that helpe d us, especially Australia, 
New Zeala nd and the Pacific region  for the assistance they have been giving to us. I would like to 
thank you, Madam Chair, and also the d iscussant for all your comments,  I have taken note of 
them and they are very useful for us. Thank you to all of you and for your  wishes for us to travel 
back safely.  WT/TPR/M/349 • Solomon Islands  
 
- 35 - 
 
  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This third Trade Policy Review of Solomon Islands has enabled us to better understand its 
trade and investment policies, as well as the challenges it faces. I would like to thank Minister 
TOZAKA and the rest of the delegation from Solomon Islands for their constructive engagement 
throughout this exercise. I would also like to thank again our discussant, Mrs. Dalia KADIŠIENĖ, 
for her substantive and pertinent remarks, and all those Members who had taken the floor to ask 
questions and offer comments.  
6.2.  At this TPR, Members were pleased to note that, notwithstanding the numerous challenges 
that Solomon Islands faced during the review period, it achieved sustained economic growth at 
rates between 2% and 10%, leading to an increase in per capita income; reduced poverty; and a 
significant fall in government debt. Members commended Solomon Islands for its many reforms 
and policy measures which aimed at supporting economic development and prom oting sustainable 
and inclusive growth. These included reforms in public finance and the debt management 
framework, as well as monetary and exchange rate policies. Members also welcomed the adoption 
of the country 's first Trade Policy Framework last year a nd the mainstreaming of trade policies into 
its National Development Strategy 2016 -2035.  
6.3.  We understand that a key objective of that strategy is to diversify the source of economic 
growth and exports. Economic diversification is indeed important for Solomo n Island s because it is 
a small island S tate dependent on only a few natural resources, mainly logging and fisheries. 
Regarding logging in particular, Members expressed concern about the impending depletion of 
Solomon Islands ' forest resources, and urged t he authorities to enhance its forestry management 
and combat illegal logging.  
6.4.  While noting its generally open foreign investment regime, Members hoped Solomon Islands 
could make further efforts to facilitate investment. Issues highlighted included the unce rtainties in 
land ownership; corruption; and the lack of transparency in public administration. The 
representative of Solomon Islands assured Members that reforms had been carried out, and 
actions are in train, to address these issues and improve the busin ess environment. Among other 
things, the Government has made commendable efforts in updating the Companies Act; setting up 
an electronic registry; launching a business registry website; and establishing a competition policy. 
As the Minister has informed us , we can also expect an anti -corruption bill to be re -introduced in 
the parliament early next year.  
6.5.  During this discussion, Members welcomed Solomon Islands ' reforms in taxation and its 
adoption of public procurement legislation. They also welcomed its pla ns to reform the intellectual 
property regime, and hoped that it would become party to the World Intellectual Property 
Organization; sign on to relevant IP treaties; and establish a national IP office. Some Members 
urged Solomon Islands to undertake reform s in port infrastructure and services as well.  
6.6.  Regarding Solomon Islands ' international trade policies, Members acknowledged the country 's 
commitment to the multilateral trading system, and commended it for advancing the interests of 
least developed countr ies (LDCs) and small, vulnerable economies (SVEs) in the WTO, as well as 
its active participation in fisheries subsidies negotiations. Members praised Solomon Islands for 
having promptly notified its Category A commitments under the WTO Trade Facilitation 
Agreement, and looked forward to its early ratification of the Agreement. Some Members also 
encouraged Solomon Islands to participate in WTO plurilateral initiatives such as the Government 
Procurement Agreement and Information Technology Agreement. The cou ntry's participation in 
regional trade and economic cooperation, notably in the Pacific region, was also welcome.  
6.7.  One aspect of Solomon Islands ' participation in the WTO which continued to attract Members ' 
attention was its inability to comply with certain  obligations under WTO Agreements. More 
specifically, Members were concerned about the persistent application of some MFN tariffs in 
excess of bound rates, and the discriminatory application of certain internal taxes. They also urged 
Solomon Islands to ste p up its efforts in submitting notifications to the WTO. Notwithstanding the 
scope for improvement in these areas, Solomon Islands was commended for its reforms in 
customs procedures and the enactment of legislation implementing the Customs Valuation 
Agree ment. In this context, Members noted Solomon Islands ' need for additional capacity and 
resources to institute improvements, and the important role that the WTO and Aid for Trade could WT/TPR/M/349 • Solomon Islands  
 
- 36 - 
 
  play in this regard. Taking the opportunity of this TPR, the representat ive of Solomon Islands 
called for a renewed commitment from the WTO membership to provide the country with technical 
assistance for capacity building.  
6.8.  In his s tatement just now, Minister Tozaka has responded comprehensively to major concerns 
raised by Memb ers. Solomon Islands has also provided answers to all advance written questions 
raised by Members. This TPR will be successfully concluded once Solomon Islands has replied to all 
outstanding questions in a month 's time. I believe Members will feel encourag ed by the reforms 
undertaken and the future action plans outlined in Minister Tozaka 's statements. I hope this 
discussion will encourage Solomon Islands to pursue policies which will allow the country to 
achieve sustainable growth and reduce poverty; you certainly have our support in this regard. We 
look forward to reviewing the trade policies of Solomon Islands as a country which has successfully 
graduated f rom LDC status at its next TPR.  
__________