WT/TPR/M/291  
20 March 2014  
(14-1748)  Page: 1/28  
Trade Policy Review Body 
11 and 13 February 2014   
 
  TRADE POLICY REVIEW 
TONGA 
MINUTES OF THE MEETING 
Chairperson: H.E. Mr. Joakim Reiter 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 2  
2  OPENING STATEMENT BY THE RE PRESENTATIVE OF TONGA  ....................................... 3  
3  STATEMENT BY THE DISCUSSANT ................................................................................ 8  
4  STATEMENTS BY MEMBERS ........................................................................................ 11  
5  REPLIES BY THE REPRESENTATIVE OF  TONGA AND ADDITIONAL COMMENTS ........... 23  
6  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 27  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Tonga are reproduced in document WT/TPR/M/291/Add.1 and will be available online 
at http://www.wto.org/english/ tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/291 • Tonga 
 
- 2 - 
 
  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The first Trade Policy Review of Tonga was held on 11 and 13 February 2014. The 
C h a i r p e r s o n  H . E .  M r  J o a k i m  R e i t e r  ( S w e d e n )  welcomed the delegation of Tonga headed by 
Mr. Viliami Latu, Minister for Commerce, Tourism and Labour; the rest of the delegation; and the 
discussant, H.E. Mr. Ambassador John Adank (New Zealand). 
1.2.  The Chairperson recalled the purpose of the Tr ade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Tonga was contained in document WT/TPR/G/291 
and that of the WTO Secretariat in WT/TPR/S/291. 
1.3.  Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegation of Tonga: New Zealand; United States; Canada; Brazil; and the European Union. The following delegations submitted written questions 
after the two week deadline: Australia and Thailand. 
1.4.  First, the Chairperson recalled to delegations th at this was the first trade policy review for 
Tonga, which acceded to the WTO in 2007, when it became its 151st Member. In the six years 
since accession, the country had been engaged in political reform and reconstruction in the 
aftermath of unprecedented domestic political unrest in 2006. The Tongan economy was also 
vulnerable to nature's own unpredictability. Moreover, it was an economy that had become reliant 
on remittances from Tongan living abroad, who fi nanced a significant portion of Tonga's imports. 
1.5.  Tonga acceded to the WTO with tariffs bound at 15% or 20% - a reflection of an ongoing 
tariff reform at that time. Current applied rates ranged from zero to 20%. The migration to the HS2012 classification had been almost completed, and some Members had asked questions about 
the status of this work. Some customs and tax issues also required clarification, e.g. the 
differential excise tax treatment of imported and locally made alcoholic beverages and tobacco, and the incidence of tax exemptions.  
1.6.  His second remark related to Tonga's efforts to  make its regulatory regime more investor 
friendly. The business licensing system had been simplified in 2012, and the establishment of an online registry had reduced time spent on registration and costs. Tonga was also reviewing its 
foreign investment regulations, including a list of activities reserved for Tongan investors. The 
purpose of these actions was clearly to improve the ease of doing business and attract more investment. The Chairperson and the Members were interested to hear about Tonga's experience and plans in this regard. 
1.7.  Some Members asked about measures taken to upgrade Tonga's SPS regime, the 
consideration of a National Food Bill, and the subsequent establishment of a National Food Authority. There was also considerable interest in aspects of Tonga's fisheries policy, including 
agreements regulating access, resource manageme nt issues, the licensing of fishing vessels, and 
fuel subsidies. Among other items raised by Memb ers in their questions, the Chairperson pointed 
to Tonga's participation in regional trade agreements and developments in the protection of 
intellectual property rights. Finally, he mentioned Tonga's technical assistance needs, highlighted 
in a separate annex in the Government report.  
1.8.  These key issues, as well as other matters evoked in the advance questions, were potential 
subjects for debate. The Chairperson could also imagine that recent changes to the trade regime, 
if any, would be elaborated upon in more detail in the introductory statements by Tonga and the 
Discussant. 
1.9.  He also noted that a podcast would be made of this TPRB meeting. WT/TPR/M/291 • Tonga 
 
- 3 - 
 
  2  OPENING STATEMENT BY THE REPRESENTATIVE OF TONGA (MR. VILIAMI LATU) 
2.1.  I am delighted to be here in Geneva, before this distinguished gathering, to discuss the 
Kingdom of Tonga's trade policy. I should like to thank you, Mr Chairman, for your words of welcome and introductory remarks. I also wish to  thank the Secretariat for their report. Together 
with the Government of Tonga's Policy Statem ent, it provides an excellent basis for our 
deliberations. I am grateful too to our Discussant – His Excellency Ambassador Adank – for agreeing to take on the role, and I am sure that his reflections will be very useful for our coming 
exchanges.  
2.2.  Since the submission of the two reports, we  have received a number of questions from 
Members. We are grateful for the interest shown and have responded in writing to them to the best of our ability. We will similarly do our utmost to respond to any remaining questions, and to 
oral comments and questions at this meeting.  
2.3.  Tonga became a Member of the WTO in 2007 and this is our first trade policy review. It has 
been a learning process for us but, I believe, a very beneficial one. The review has concentrated 
our minds on what WTO Membership has meant for us over the last six years and, in the process, 
enabled us to initiate a more integrated approach to our trade policy.  
2.4.  The process of accession was for us, admittedly, a challenge. The Working Party was formed 
in 1995 but only completed its work in 2005. It was then almost two years before we actually took 
up membership on 27 July 2007. There were a number of reasons for this. We had - and still have - limited resources to engage on the wide range of issues involved in WTO Membership. Accession involved changing our trade and economic policies in  many areas, some of them quite sensitive. At 
the same time, Tonga itself was changing economically, socially and politically.  
2.5.  We are, of course, a small economy. We have a small population, dispersed across many 
islands and a large expanse of the Pacific Ocean.  Climate changes make us currently the second 
most vulnerable country in the Pacific islands to natural disasters. The global recession created an 
unfavourable external environment for our limited trade. As our domestic consumption and production is strongly reliant on imports, the recent global economic prices and drastic movements 
in commodity prices have hit Tonga particularly hard. At the same time, primary sources of 
revenue such as tourism and remittances have experienced recent declines. These factors need to be taken into account when assessing our progress. Nevertheless, there are now some encouraging signs, and we come to you today with  a sense of prudent optimism about the future. 
2.6.  WTO Membership is a contributing factor to th at. We have been through, and continue to 
experience, many challenges arising from membership. The process has created a combination that threatens the viability of our economic base, phasing out trade preferences and challenged 
the future of our agriculture, manufacturing and se rvice sectors, mainly tourism. But we feel we 
are better off inside the global trading system than outside it. As we make the necessary adjustments, we are beginning to grasp the opportunities as well as building our capacity to 
address the challenges. The WTO provides a secure  foundation for the future development of our 
trade policy, and we value that. Here I can emphasize two important points. The wider membership of the Organization must be prepared  to listen and respond constructively to the 
specific situation of Small and Vulnerable Economies such as the Kingdom of Tonga. We think that 
it should be possible in the consensus-based environment of the WTO. Secondly, the existing gap 
in the capacity of both Government and the business community to take advantage of the opportunities created by the rules of the Organiza tion and to address the challenges of increased 
competition that follows the liberalization and removal of barriers. The main problem is the 
immense complexity of the system for a country like Tonga. For example, the business community 
are not fully aware of the advantages which the rules can generate for them nor do they 
understand that the legal system not only confers benefits but also creates rights in their favour.  
2.7.  Tonga is a "non-resident" delegation in Geneva terms. Allied with the general limitations 
imposed by our sparse human and financial resources, this places us at something of a disadvantage compared with many others. However,  this does not mean th at we accord the WTO a 
low priority. On the contrary, Tonga sees it as a high priority and is doing its very best to fulfil its 
obligations, and to protect its rights as a Member. Tonga sees the WTO Membership as the foundation upon which many of its trade initiatives – including at the bilateral and regional level – WT/TPR/M/291 • Tonga 
 
- 4 - 
 
  are based. Tonga hopes that in the fullness of time  it will be able to build up its capacity to 
contribute to WTO deliberations and activities.  
2.8.  The two reports before us today illustrate the many changes to the trade and economic 
environment which the last six years have seen, and which are on-going. These are an integral 
part of our development vision, as set out in the 2011-2014 Tonga Strategic Development 
Framework. Our overall vision is to "develop an d promote a just, equitable and progressive society 
in which the people of Tonga enjoy good health, peace, harmony and prosperity in meeting their 
aspirations in life".  
2.9.  On the trade and economic front, we are pursui ng two broad strategies: (a) the creation of 
an enabling environment for the private sector to flourish; and (b) the improvement of output of 
our productive sectors. WTO Membership fits well into this framework and indeed is seen as a tool 
and a catalyst to advance Tonga's development objectives. More specifically, we have either 
reviewed, or are in the process of reviewing, a broad range of policies affecting our ability to 
benefit from trade and investment.  
2.10.  As outlined in the two reports, among the noteworthy major developments are:  
 a review of the foreign investment regime and a new investment promotion strategy;  
 further simplification of the business licensing environment;  
 a review of public enterprises to determine how they can survive and flourish in a more 
 competitive market environment;  
 anticipated implementation of HS2012 for the tariff regime;  
 an on-going review of legislation in relation to shipping and civil aviation;  
 changes to SPS processes to bring these into line with the WTO Agreement;  
 implementation of the WTO Customs Valuation Agreement;  
 implementation of Tonga's commitments under the TRIPS Agreement;  
 a review of the National Export Strategy;  
 development of a Labour Export Strategy;  
 the dissemination of a new Tonga Tourism Sector Roadmap; and  
 new initiatives, albeit with limited resources, to boost agriculture and fisheries.  
2.11.  We are undertaking these reforms because we believe that there is considerable unrealized 
potential in our priority sectors of the economy. It is a formidable list of policy reforms for any Government to undertake, but we are fully committed to following through.  
2.12.  Which brings me to the question of capacity. We have taken the opportunity to annex to our 
Government Report a short paper on Tonga's trade-related technical assistance requirements. These are prioritized under three broad categories:  
 improving institutional capacity for trade policy negotiations and implementation;  
 supporting the reform of trade-related legislation and regulations; and  
 increasing service delivery to firms engaged in trade.  
2.13.  Much more detail is given in the Annex, which I hope has been read attentively. We consider 
the contents of the Annex to be a "first" of so rts, as the priorities and technical assistance 
requirements are not limited to the challenges of  WTO Membership, nor to the resources available 
through the WTO Secretariat. The Annex rather look s at the breadth of the challenges arising from 
the multiple trade negotiations and reforms facing Tonga and many other SVEs and 
Recently-Acceded Members. Tonga feels that one ca nnot (and arguably should not) separate the 
trade challenges at the multilateral level from those at the bilateral, regional and domestic level, 
but rather tackle them as an integrated pa ckage. The structure and coverage of Tonga’s 
trade-related technical assistance requirements highlight Government's commitments to overcome WT/TPR/M/291 • Tonga 
 
- 5 - 
 
  on-going challenges and transform prevailing threats on our priority economic sectors from 
competition and reduced barriers into opportunities where the business community can take advantage at the national level from the benefits of the multilateral rules.  
2.14.  I also wish to mention that we have benefi tted recently from a "needs assessment" mission 
from the WTO Institute for Training and Techni cal Cooperation (ITTC). They have prepared a 
report, the contents of which I readily endorse. Natu rally, this is focused specifically on how Tonga 
can benefit more fully from its rights and oblig ations under WTO Membership. I would encourage 
interested Members to consult either the Government of Tonga or the ITTC in order to obtain a 
better understanding of our needs in this area.  
2.15.  While technical assistance might be considered by some to be separate from this review, I 
would make the point that, from our perspective, the review and technical assistance are 
intertwined. We know where we want to go with our trade policy. The question is whether we can 
develop the tools that will allow us to deliver. My answer is that we can deliver if we get the right level of assistance. This is not to say that we do not receive assistance now. We do, and from a 
very broad range of sources. We deeply appreciate  that. However the scale of the challenge, given 
the transformation we are engaged in, is such that in the short term we need much more. Tonga welcomes a positive discussion on both the specific provisions of the Annex, as well as the wider 
link between Aid-for-Trade and WTO negotiations – a primary concern for the Pacific and many of 
our intra-regional such as ACP partners.  
2.16.  Turning back to the review itself, the questions received so far have tended to focus on a 
few themes. We have answered in writing to the best of our ability but I will add some additional 
comments here.  
2.17.  Tonga has made and is continuing to make important refinements to its investment 
framework in key priority sectors including tourism,  agriculture, fisheries, ICT, and commerce. The 
Foreign Investment Act is also under review to modernize and encourage higher foreign 
investment towards priority sectors.  
2.18.  We take note of the comments on some of the business activities reserved for Tongan 
investors. However, these activities are small in scale and we believe that the reservations are 
reasonable in order to provide some room for local investors with limited resources at their disposal. The Government is currently considering changes to the reserved list, including a planned reduction in the number of such activities, and further clarification on their scope.  
2.19.  The Government is committed to reducing the cost of doing business in Tonga, including 
through recent streamlining of its business licencing regime, and taken steps in 2013 to ensure business licence will be accessible online by July 2014.  
2.20.  The Government is also committed to a strong public-private partnership, through national 
sector growth committees to consider measures to assist domestic industries give it time to adjust and prepare for increased competition within the rules.  
2.21.  Given the importance of the fisheries sector for Tonga, the Government continues to 
promote sector growth in a sustainable way.  
2.22.  As regards, excise taxes on beer, spirits and tobacco, we have taken note of the views 
expressed by some Members. I would make the point that Tonga is a very small market, and some 
of the local products are not directly competitiv e with imported products. The possibilities for 
manufacturing in Tonga are very limited indeed and, in these commodities, for local consumption. Having said this, we will reflect further on the views expressed.  
2.23.  The diversity of Government has considered positive trade policy objectives to help sustain 
the economy and make it less vulnerable to adverse terms of trade shocks. It is vital for Tonga to engage in product diversification as a deliberate gr owth strategy to protect itself from sharp and 
unexpected changes in its terms of trade. They include:  
2.24.  The level of tax exemptions raised by Members.  I wish to emphasize that these exemptions 
relate in very large measure to concessions on fuel for electricity generation and transport. Tonga WT/TPR/M/291 • Tonga 
 
- 6 - 
 
  has to import its hydrocarbon fuels over long distances via intermediary countries. This makes it 
very expensive indeed. Removing tax exemptions would result in prohibitive costs for individual consumers, internal freight and passenger transp ort (which are essential for both social and 
economic reasons), business and industry (including fisheries). I would also emphasize that 
exemptions are considered only in accordance with stipulated procedures.  
2.25.  Tonga is committed to building up its capacity to deal with SPS-related issues. This is 
essential for both our agricultural imports and exports. We have achieved a certain amount but 
welcome increased technical assistance in this critical area.  
2.26.  We are currently working on a national strategy  for the protection of intellectual property 
rights. In this connection we are considering how best to protect traditional knowledge and cultural expressions.  
2.27.  Tonga is also committed to using a whole-of-government approach – including but not 
limited to tax policy – to tackle non-communicable diseases.  
2.28.  Turning now to Tonga's regional setting, we attach particular importance to achieving closer 
economic relations with our neighbours, as a comp lement to the WTO's global approach. We have 
ratified the Pacific Island Countries Trade Agreement in relation to trade in goods and are now considering implementation measures, including the staging of tariff reductions and the 
introduction of rules of origin. We have also signed the Protocol on Trade in Services and are 
examining procedures for ratification. We believe that these agreements can help to bridge the 
physical distances between island economies in  the Pacific and encourage more direct trade 
between them. Tonga welcomes technical assistance to better harness the benefits of these trade 
agreements.  
2.29.  Tonga is also involved in on-going negotiations between the Pacific Island Countries and 
Australia and New Zealand under the "PACER Plus" framework. In this context, given the huge 
disparity in size between the PACER Plus partners, I wish to highlight my Government's position as 
emphasized by our Prime Minister and Minister responsible for Trade, Lord Tu’ivakano, that 
"Government's pursuit through the PACER Plus negotiations aims to result in a comprehensive 
trade and economic cooperation agreement with commitments to secure important benefits to all 
parties. They include specific measures to create new export opportunities, increased tourism and increased labour export opportunities; larger remittances, increased domestic, as well as foreign demand, resulting in new business opportunities". The major developmental reforms already 
highlighted are designed to further develop trade- facing sectors of the Tongan economy such as 
the commitments to improve the business regulato ry and foreign investment environment. Our 
Government is also particularly interested in seeing progress in the six priority areas which have 
been identified by Pacific Island Governments – namely, customs procedures, rules of origin, SPS 
measures, TBT measures, development assistance and labour mobility.  
2.30.  Let me note in passing that an area of comparative advantage for Tonga lies in the area of 
sports, particularly rugby. Significant numbers of Tongan rugby athletes compete at high levels in 
Australia, New Zealand, Japan and Europe. They are noted for their agility and power. We would also note that WTO decision-making would be much improved from our point of view if it took place on the rugby field. 
2.31.  As a member of the ACP Group, Tonga is committed to the completion of the ACP-EU 
Economic Partnership Agreement. Tonga has actively participated in the on-going negotiations under the comprehensive framework, and strongly supports a timely and pro-development 
outcome to the negotiations. Throughout the EPA process, I – as Tonga's Minister of Commerce, 
Tourism and Labour – have acted as the Pacific region's Lead Spokesperson.  
2.32.  Turning full circle and coming back finally to the WTO, Tonga warmly welcomes the outcome 
of the Ninth Ministerial Conference in Bali last December. We encourage the WTO Secretariat to 
increase its outreach efforts to non-resident delegations such as Tonga, in order to assist them with implementation of the Bali Package, in particular the Agreement on Trade Facilitation. We hope that this will provide new impetus for the Doha Work Programme as a whole, and the 
Development Agenda in particular.  WT/TPR/M/291 • Tonga 
 
- 7 - 
 
  2.33.  In general terms, Tonga identifies itself in th e WTO with the positions taken by other Pacific 
Island Countries, Recently-Acceded Members, Small and Vulnerable Economies, and members of the ACP Group. Tonga attaches great importance to the Aid-for-Trade initiative, as a means of making a more concrete link between trade and development policy, and enhancing trade 
capacity. We continue to be committed to the Doha Development Agenda negotiations. It is 
however important that the results recognize the special situations of Small and Vulnerable Economies. In this connection, Tonga also fully supports the WTO Work Programme on Small 
Economies. In fisheries, Tonga supports the effo rts WTO Members to find an appropriate balance 
between sustainability, concerns and the development priorities of developing countries, especially for those countries which have little or no impact on over fishing and over capacity. As regards negotiations on trade in services, Tonga's main interest is in the area of labour mobility.  
2.34.  In conclusion, the period since Tonga acceded to the WTO in 2007 has seen significant 
change in the economic and regulatory environment for trade. Understanding in knowledge of the system remains a serious challenge that Government must go forward. The Government of Tonga 
is committed to carrying these reforms with a view to creating conditions in which trade, business 
and investment can thrive in a just, equitable and progressive society. The Government is aware that the process of change is complex and needs to be carefully managed.  
2.35.  While much has been accomplished, much also remains to be done. Not only it is necessary 
to develop the right framework of policies, but it needs to be recognized that Tonga has limited capacities in terms of financial and human resources, including technical skills. Potentially productive sectors of the economy need to be ca refully nurtured. These capacity constraints need 
to be urgently addressed, building on the close cooperation and partnership that Tonga enjoys 
with its development partners.  
2.36.  Notwithstanding the challenges, we will continue to build on the progress made to date, and 
on the positive signs which are beginning to em erge for our economy and trade. WTO Membership 
is a central element in this overall, forward-looking policy orientation.  WT/TPR/M/291 • Tonga 
 
- 8 - 
 
  3  STATEMENT BY THE DISCUSSANT 
3.1.  Can I join in welcoming the distinguished delegation from Tonga, headed by Honourable 
Minister Viliami Latu, to this inaugural Trade Policy Review since Tonga's accession in 2007. Coming from a country very closely linked to Tonga in terms of cultural and family ties within the 
Polynesian community, it's a great privilege to be asked to be discussant today. 
3.2.  It would be remiss to commence this Trade Policy Review without first acknowledging the 
significant challenges that Tonga continues to face as a small island developing country in the 
Pacific that remains very vulnerable to extreme weather events.  
3.3.  This has been underlined over the last month as Tonga has experienced and continues to 
recover from Cyclone Ian which has had devastating effects in the Ha'apai group, with winds of nearly 300 km an hour tearing apart communities, destroying up to 70% of homes across the 
island Ha'apai island grouping. Approximately 2,300 people were left homeless by the storm.  
3.4.  It has been estimated that Tonga's vulnerabili ty to extreme weather events impacts its GDP 
on average by around 4% each year. So that's something for all of us, particularly those with 
economies that are less vulnerable, to think about in this review. And its testimony to the strength 
and resilience of Tonga as a nation that in the aftermath of Cyclone Ian, as in the aftermath of similar events in the past, is set about rebuilding with great determination assisted by its core 
partners.   
3.5.  This Trade Policy review provides an opportuni ty for Members to discuss with Tonga the trade 
policies and practices in place since Tonga's accession to the WTO. TPRs are at one level an opportunity to provide a "report card" on how a Member is seen to be managing their WTO 
commitments within their trade policy choices, and I’ll spend the first part of my remaining 
comments on this issue.   
3.6.  I would hope, however, that this is not the sole focus of Members for this review. This review 
also allows an opportunity to focus attention on the challenges Tonga has identified to improving 
its trade performance as part of its broader economic strategy – in effect, how can Tonga seek to capitalize on the advantages it has gained on acceding to the WTO and becoming more closely 
integrated into the global trading system. Part of this relates to the technical assistance 
requirements that Tonga identifies as key priorities for donors in this area and Members will have seen here that Tonga has annexed some views to its Government submission on these issues.    
3.7.  But to begin with some basic facts that frame this discussion today and Thursday, the 
Secretariat and Government reports highlight the notable features of Tonga's overall economic 
environment. This includes the fact that over 50% of GDP remains attributable to remittances and development assistance, with a consequential high import dependence. Tonga imports 10 times 
what it exports, underlining that the economy can only function effectively with the additional 
contribution that overseas development assistance and remittances provide here.  
3.8.  These remittances are again fuelled by the significant role that immigration continues to play 
in Tonga's economy, with around 100,000 Tongan s overseas, with significant numbers leaving 
permanently each year to take up permanent residency opportunities as well as around 1500 seasonal workers who now travel to Australia and New Zealand for temporary work opportunities there.   
3.9.  Taking into account its small island developing country status, the commitments that Tonga 
took on accession were significant and laudable. And while Tonga's own export trade in both goods and services remain modest, the accession process was very much seen as part of a broader 
series of economic reforms that the Government em barked on aimed at reducing the cost of living 
for Tongans, improving the investment environmen t and reducing the cost of doing business.  
3.10.  The key accession commitments included reductions in tariffs, with all tariffs bound at a 
maximum of 20% and a number bound at 15%, with the average resulting bound tariff being 
17.6%, although given the application of a number of  zero and low tariffs the applied MFN rate is 
11.5%. Tonga took only short transition periods on Customs Valuation and TRIPs. It refrained from adopting any antidumping, countervailing or safeguards provisions, and committed in agriculture WT/TPR/M/291 • Tonga 
 
- 9 - 
 
  to zero AMS and export subsidies. Tonga operates no TRQs or provides preferential tariff treatment 
to any other WTO Member, while noting that it is  in a range of on-going negotiations with key 
regional and traditional partners for FTA arrangements – a subject I’m sure the Tongan delegation will want to comment on further. Tonga also undertook significant services commitments.    
3.11.  So overall, my takeaway is that the picture of  Tonga’s trade regime presented in the reports 
is of an open trade regime that reflects significant accession commitments.   
3.12.  There are nevertheless a few specific concerns highlighted in relation to Tonga's tariff and 
related internal taxation policies and how these fit in with its WTO commitments. I note that the 
HS2007 to HS2012 transposition has seen Tonga's tariff bindings on 22 lines exceed its bound 15% rates, and Members are very interested in knowing when this will be rectified. I understand that Tonga is very aware of this issue and this Re view will provide an opportunity to clarify Tonga's 
position regarding the timeframe for any actions to address this issue.   
3.13.  Questions from Members also draw attention to the application of Tonga's excise taxes 
which are clearly of increasing importance to overall revenue, accounting at 30 million for more 
than double the amount of revenue from import tariffs. These taxes, in relation to beer and spirits 
as well as tobacco, differentiate between domest ic and imported goods. One of the questions 
posed by Members suggests any issue of WTO-inconsistency here could be easily remedied by 
adjusting the tariff on imported goods within Tong a's bound levels. It would be useful to hear if 
Tonga is planning any action in this regard give n the interest that different Members have shown. 
3.14.  One of the questions that struck me looking at  the report was the issue of the impact of 
subsidies on the Tongan economy, particularly bearing in mind what seems to be a significant 
i n c r e a s e  i n  r e v e n u e  f o r e g o n e  a s  a  r e s u l t  o f  d u t y  r e m i s s i o n  o n  f u e l  a s  w e l l  a s  " o t h e r "  
(non-specified) exemptions. For example, Table 4.2 of the Secretariat report suggests that such 
remissions have increased nine or 10-fold since 2009/10. It would be useful to know the 
background to these increases, particularly given that the amount of remissions equate to almost 
one fifth of Tonga's GDP.   
3.15.  I was also interested to see, for example, that although Tonga may be eligible for GSP 
concessions from a number of developed trading partners that it has for the most part traded in 
without GSP benefits to the EU, U.S. and Japan. It would be good to know if these are areas that Tonga is planning to explore further here with a view to minimizing tariffs in overseas markets (paragraph 2.3 of the Secretariat report).   
3.16.  Members have also raised a number of other questions on current or future trade and 
investment-related policies which I’m sure the Tonga delegation will be responding to in the course of this week. Many of these questions are directed  at seeking clarification from Tonga of further 
initiatives it may be planning to take to improve the environment for trade and investment. This 
includes any initiatives that may be under consideration for additional regulation in areas such as telecommunications, financial services and bankruptcy laws and any privatization initiatives that 
might arise from evolution of Tonga's views ab out the role of the state in the economy.  
3.17.  As noted earlier, this TPR should provide an opportunity for Tonga to explore in more detail 
with Members how it might better use the potential of its WTO Membership to expand its trade in key sectors. I note here that the Government gr owth strategy highlights that agriculture - 16% 
GDP, fisheries - 3% and tourism - 15% are all key ar eas of focus. It would be useful to hear more 
from Tonga about the practical challenges it faces to expand the contribution of these sectors to its economy, and how Members and particularly do nors might assist it in this regard.   
3.18.  Remittances are another key area. These amounted to 30% of GDP in 2008. But have now 
dropped to only around half of this amount following the impact of the global financial crisis. Clearly, the contributions of Tongans abroad, whether as a result of earnings gained through 
permanent migration, or through temporary work which the Australian and New Zealand seasonal 
employment schemes now provide remains considerable and it would be useful to hear more about the work that Tonga is pursuing to better measure and maximize these resources. 
3.19.  I also note that the Secretariat report highlights in paragraph 1.2 that the permanent 
emigration of Tongans has contributed to a shortage of skilled labour in some sectors and low WT/TPR/M/291 • Tonga 
 
- 10 - 
 
  productivity growth. This contrasts somewhat with the comment in the Government report in 
paragraph 4.35 that the Government views labour mobility overseas as both a valuable source of remittances and "a means of bringing wealth and technical expertise back to Tonga". Sports and rugby in particular are also lucrative sectors for Tongans. It would be interesting to hear more 
from Tonga about how it sees the way forward in  maximizing the returns in these areas. In 
particular, to what extent are remittances, as well as skills acquired by seasonal workers, 
contributing to broader investments in the Tongan economy in areas like agriculture, fisheries, 
manufacturing and tourism. 
3.20.  I wanted to leave my final comments to the issue of Technical Assistance, which has been 
the subject of a detailed Annex to the Government submission. It is extremely useful for Tonga to take the opportunity of its visit to Geneva this week to explore its concerns and needs around 
technical assistance with relevant agencies and donors. And I very much hope that this discussion 
is focussed on practical sector-related assistance that will assist Tonga in expanding its trade in 
coming years. Obviously, assistance related to pr oper implementation of WTO obligations is also 
important and Tonga has already established an excellent track record here with 17 notifications 
since accession. At the same time, as I know from my own experience in 1994 when I was given the task of looking at the legislative implemen tation of the Uruguay Round agreements for my 
country, there are a number of less significant WTO Agreements that some Members will find of no 
practical use or application to them given their practical needs or individual circumstances. Nor are they required to do anything to implement them although they may want to be aware of the ways 
that other Members can use such agreements against them in a non-trade facilitative way – and 
some of these feature in the list outlined in para graph 8.11 of Tonga's submission. Probably at this 
point the less said the better, lest I offend some of the key users of these agreements.   WT/TPR/M/291 • Tonga 
 
- 11 - 
 
  4  STATEMENTS BY MEMBERS 
NEW  ZEALAND 
4.1.  New Zealand welcomes this opportunity to comment on this first Trade Policy Review of 
T o n g a .  I t  i s  a  d e l i g h t  t o  s e e  s u c h  a  h i g h - r a n k i n g  d e l e g a t i o n  f r o m  N u k u ’ a l o f a  l e d  b y  M i n i s t e r  o f  
Commerce, the Honourable Viliami Latu, and many  of Tonga’s most senior and capable public 
servants. 
4.2.  Geographically, Tonga is New Zealand’s nearest neighbour. Our shared Polynesian heritage 
means we share ties of kith and kin. Today, 60,000 New Zealanders describe themselves as 
Tongan. Economically, our two nations are interdependent, with a significant proportion of Tonga’s remittances and trade coming from New Zealand. 
4.3.  This review of Tonga’s trade policy takes place at a time when Tonga is recovering from the 
effects of Tropical Cyclone Ian, which has significantly affected the Ha’apai island group, leaving 
roughly 4% of Tonga’s population homeless. As with the majority of Pacific Island countries, Tonga is vulnerable to natural disasters. Less than a fortnight ago, New Zealand Foreign Minister, Murray 
McCully, was in Tonga to discuss directly with the Government of Tonga what more New Zealand 
can do to help in the devastating wake of the latest cyclone. 
4.4.  Internationally, we work closely together in a range of bilateral and multilateral settings, 
sharing similar perspectives on many issues, including on the benefits of international trade.  
4.5.  We welcome the opportunity to work closely with Tonga in our own region. Like New Zealand, 
Tonga is a member of the Pacific Islands Forum and participates in initiatives to expand trade and economic integration in the region. We are also working together to advance negotiations on 
PACER Plus, a new generation agreement on economic relations between New Zealand, Australia 
and Pacific Islands countries.  
4.6.  New Zealand recognises that while Tonga’s trade regime is commendably open, as a 
developing country and small island state, Tonga faces capacity issues that affect its ability to fully 
benefit from WTO membership. These include the size  of its economy, as well as the challenge of 
resource constraints and its non-resident status in Geneva. Despite these, since 2007 Tonga has 
submitted 17 notifications related to its WTO commitments despite short transition periods to 
implement WTO agreements (such as customs valuation and TRIPS) and introduced some reductions in tariffs.  
4.7.  New Zealand is interested in hearing more during this review about how trade liberalization 
fits within Tonga’s wider growth strategy. We note the central role of agriculture and fisheries in its 
growth strategy and look forward to further di scussing how the multilateral trading system can 
support Tonga to earn more from those sectors.   
4.8.  New Zealand is interested in Tonga’s experience of the agriculture and fisheries sectors, 
given the significant contribution of these sectors to the Tongan economy. In particular, we are interested to hear more about what Tonga sees as the barriers to it achieving greater returns from 
its agricultural export trade, and whether it could be extracting greater value from the fisheries 
licences it sells to distant water fishing nations? 
4.9.  In conclusion, New Zealand commends the steps that Tonga has taken in the five years since 
its accession to the WTO, and particularly recognises the challenges it faces as a developing 
economy, particularly one so recently affected by a devastating natural disaster. We welcome 
Tonga’s perspective on the issues that will be raised during the course of this review. 
UNITED
 STATES 
4.10.  On behalf of the United States, I would like to welcome the delegation of Tonga, headed by 
Mr. Viliami Latu, Minister for Commerce, Tourism and Labour, along with the entire Tongan delegation, to Tonga’s first WTO Trade Policy Review since its accession in 2007. I would also like 
to extend our deep sympathies to the people of To nga for the loss of life and property as a result 
of Cyclone Ian as well as our wishes for a speedy recovery. We thank the Secretariat and the WT/TPR/M/291 • Tonga 
 
- 12 - 
 
  Government of Tonga for their informative Reports. We also thank Ambassador Adank for his 
observations as the discussant during this important milestone in Tonga’s WTO membership.    
4.11.  We commend Tonga for undertaking important reforms since its accession and are 
encouraged by its comments that its WTO Membership has been and continues to be a key 
catalyst to the legislative, regulatory, and administrative reforms which are necessary to revitalize 
Tonga's economy. As highlighted by the Secretar iat, Tonga has undertaken economic reforms to 
reduce the cost of living, improve the investment climate, lower the cost of doing business, taken 
steps to restructure the public service, and pursued political reforms in response to civil unrest in 
2006. That Tonga has taken these in the face a global economic crisis which caused a decline in tourism and remittances, is especially encouraging.   
4.12.  We were pleased to see Transparency International's January 2013 assessment that Tonga 
has taken significant steps forward to fight corruption and improve the country’s governance. As 
Tonga pursues its vision to "develop and promote a just, equitable and progressive society in which the people of Tonga enjoy good health, peac e, harmony and prosperity, in meeting in their 
aspirations in life", we encourage it, among other actions, to take steps to remove gender-based 
impediments so that women entrepreneurs, farmers and business-owners can fully participate in global trade.    
4.13.  We welcomed the opportunity to submit questions to the Government of Tonga, including 
related to the structure of government agencies responsible for foreign trade policy, investment and business facilitation. We thank the delegation of Tonga for its attention to our questions and will examine carefully the writte n responses we have received. 
4.14.  We would appreciate an update on Tonga's process for consideration of a National Food bill 
that provides for the establishment of a single regulatory agency, and information regarding its plans to notify this bill and corresponding regulations to the WTO. In addition, we are interested in 
better understanding the status of Tonga's draf t law on intellectual property enforcement, 
including what mechanisms it includes to discourage infringement and strengthen enforcement at the border, and in Tonga’s national strategy fo r intellectual property regarding traditional 
knowledge and culture. As noted in our written questions, we would appreciate Tonga's response 
to our question as to whether it will investigate the high rates for terminating international phone calls being charged in the country, resulting in foreign carriers rerouting calls through other countries and ultimately weakening Tonga’s connectivity to the rest of the world.   
4.15.  Looking forward, we hope that the economic recovery will increase tourism in Tonga, which 
in turn will support transport, hotels, commerce,  other services, and broad economic growth. We 
encourage the Government of Tonga’s continued focus on policy goals to modernize and 
streamline regulatory reforms, to encourage investment, and to facilitate business.   
4.16.  In closing, we again want to express our appreciation for the opportunity to participate in 
Tonga's first WTO Trade Policy Review. Considering the clear challenges in participating as a WTO 
Member without a Geneva mission, we remain committed to working with Tonga to implement its 
WTO obligations and help it maximize the benefits of its WTO membership.   
4.17.  We appreciate Tonga's engagement in this proc ess, and look forward to continued work with 
Tonga and other Members to support the rules-based multilateral trading system. 
CANADA 
4.18.  Canada joins others in welcoming Minister Latu and the entire Tongan delegation to Geneva. 
We are very pleased to participate in Tonga’s first Trade Policy Review today. Our thoughts are 
with the Tongan communities affected by the devastations caused by cyclone Ian in January. The 
damage caused in northern Tonga is major and will have a long-lasting impact on the country. 
4.19.  Since its accession to the WTO in 2007, and as noted in the Secretariat Report, the 
Government has made considerable progress in the implementation of policies that promote 
growth while maintaining prudent macroeconomic and financial policies. WT/TPR/M/291 • Tonga 
 
- 13 - 
 
  4.20.  Over the last five years the economy has been affected by the global financial crisis, with a 
drop in tourism and remittances, on which the country is heavily reliant. The reconstruction of infrastructure in Nuku’alofa has provided a stimulus to the construction industry, supporting GDP growth. 
4.21.  The Government of Tonga deserves credit for the important strides it has made in improving 
the business environment as part of the Tong a Strategic Development Framework, and as it 
continues to work towards the achievement of the Millennium Development Goals, which have 
good potential to become an engine of economic growth, job creation and poverty reduction. 
4.22.  Permit me to briefly identify a number of areas that merit focus in the Kingdom of Tonga’s 
ongoing reform efforts. Tonga has made important strides to reform its portfolio and management of public enterprises including the creation of a Mi nistry of Public Enterprise. Furthermore, in an 
effort to support private sector growth, Tonga has implemented a reform programme focused on 
lowering business costs, such as reducing “red tape”, modernizing relevant electronic systems and streamlining business licence regulations. The recent installation of high speed internet will provide 
additional opportunities and benefits to the private sector and the general public at large. Canada 
encourages Tonga to continue its review, in consultation with the private sector, of foreign investment regulations and its entire foreign investment regime. 
4.23.  Tonga's extensive tax reform programme to sh ift revenue collection from trade taxes to 
internal taxes has been implemented, with the in troduction of a consumption tax and an overhaul 
of the customs regime with a flat-rate tariff structure and a reduction in tariff rates. Moving forward and following the modernization of the income tax code, Tonga's consideration of a 
simplified tax scheme for small businesses should be explored further. 
4.24.  Canada commends the Kingdom of Tonga for its work towards expanding trade in the Pacific 
region though the Pacific Island Countries Trad e Agreement (PICTA) and supports the passing of 
legislation to implement the agreement. Canada also commends Tonga for its part in negotiations 
between the EU and the fourteen Pacific isla nd states towards an Economic Partnership 
Agreement.  
4.25.  Taking into consideration the accomplishments that Tonga has made since its accession to 
the WTO in the economic and regulatory environment for trade, Canada stresses the importance of the timely development of a coherent Trade Policy Framework in order to create an enabling environment in which trade can flourish. 
4.26.  Canada has submitted written questions with respect to goods market access and 
agriculture with a view to deepen our understandi ng of Tonga's trade regime and continue working 
towards mutually beneficial growth in trade and investment between our two countries.  
4.27.  Canada believes the WTO would be a more effective forum if we allowed ice-hockey to 
determine the results of our decision-making. We  wish Tonga a very successful first Trade Policy 
Review, and we look forward to a constr uctive exchange of views this week. 
BRAZIL 
4.28.  It is a matter of great satisfaction for Brazil to participate in the first Trade Policy Review of 
Tonga. 
4.29.  Trade, as we all know, plays a fundamental ro le in the process of economic and social 
development in every country. As recognized in  the Preamble of the Marrakesh Agreement which 
established this Organization, the relations amongst countries "in the field of trade should be conducted with a view to raising standards of living". This principle, according to Tonga's 
Government report, seems to be an intrin sic part of Tonga's development vision. 
4.30.  The accession of Tonga to the World Trade Organization in 2007 constitutes a landmark in 
the process of integrating Tonga's economy more closely in to the global trading system. This first 
Trade Policy Review could work as an interesting stock-taking exercise, contributing to the 
evaluation of what has been done and allowi ng the identification of future challenges. WT/TPR/M/291 • Tonga 
 
- 14 - 
 
  4.31.  The partnership between our countries has experienced a very discernible and positive 
growth over the past few years, especially after 2011. Brazil's commitment to Tonga's development objectives is reflected in many fields, ranging from projects of technical exchange in agriculture to cooperation in education and sports. 
4.32.  In spite of the difficulties posed by the 2008 Econ omic Crisis, Brazil is pleased to note that 
trade flows between Brazil and Tonga have increased considerably since 2007. Nevertheless, there is still room for improvement. We believe that bilateral trade is well below its potential and could 
be further expanded, both in terms of value and of diversification. 
4.33.  Brazil understands that, in order to achieve concrete and sustainable expansion in trade, 
both private and public sectors must be dynamic and efficient. In that sense, given the limited 
capacity and the supply-side constraints identifi ed by the Government of Tonga, trade-related 
technical assistance might be essential to help the people of Tonga to reap the benefits from trade. 
4.34.  In this context and considering the need to ensure the hiring and training of key personnel, 
Brazil has kindly asked Tonga to elaborate on the types of capacity-building programmes that have 
been implemented thus far. 
4.35.  I conclude by reiterating that Brazil stands ready to further enhance cooperation and trade 
with Tonga.  
EUROPEAN
 UNION 
4.36.  This is Tonga’s first review since its accession to the WTO in 2007, and I would like to start 
by noting that Tonga is a good example of how participation in the WTO can help a small and remote country to boost its economy.  
4.37.  At first, I would like to point out that the EU recognizes that the small size and narrow 
economic base of Small and Vulnerable Economies like Tonga make them su ffer from diseconomies 
of scale, which alongside human capital constraints and transport challenges, are deterrents for 
making further progress. The Tongan economy is one of the smallest among WTO Members, with a 
GDP of about US$500 million. Furthermore, about 70%  of Tongan population live in rural areas 
and depend on agriculture and fisheries. Access to  markets is limited and transportation costs are 
high.  
4.38.  On top of this, at this time, hardly any country is not feeling the strain of the global 
economic slowdown and Tonga has been hit hard by the global financial crisis.  
4.39.  At the time of its accession, Tonga's overall objective was to integrate its economy more 
closely into the global trading system. Followin g its accession, the trade policy environment in 
Tonga is continuing to undergo a substantial transformation and is beginning to stimulate trade and investment. 
4.40.  The EU acknowledges that Tonga is gradually  achieving its overall objective and fully 
supports the reform process launched in 2008. Furt hermore, the EU recognizes that the ongoing 
reform process presents a considerable challenge to the Government with the very limited 
resources at its disposal as well as its need for a ssistance to carry this process through to fruition.  
4.41.  This is why the EU supports Tonga with Aid-for-Trade initiatives, as a means of building a 
more concrete link between trade and development policy, and enhancing trade capacity. In particular, the EU considers that technical assistance in Tonga is fundamental in most areas of 
trade policy formulation and implementation.  
4.42.  On the basis of the Cotonou Agreement, Tonga benefits from aid under the European 
Development Fund. Overall, EU-managed assistance for the period 2008-13 is €14 million, with a 
focus on renewable energy. Climate change assistan ce also is provided. For the 2014-2020 period, 
a tentative contribution of €11.1 million is proposed to support the promotion of renewable energy. WT/TPR/M/291 • Tonga 
 
- 15 - 
 
  4.43.  In general, the EU's political dialogue with Tonga remains good and takes largely place in 
the context of regional discussions, but distance means that our share of trade has been relatively 
modest.  
4.44.  Tonga is also a member of the ACP Group and the EU appreciates its active participation and 
its commitment to the completion of the ACP-EU Economic Partnership Agreement. 
4.45.  We have submitted a few questions on a few numbers of measures and look forward to the 
replies.  
4.46.  In closing, the EU is confident that, following the Bali Ministerial declaration on Small 
Economies, concrete actions will soon be undertaken for helping small economies like Tonga finding their place in global value chains. The EU is committed to play an active role in this regard. 
4.47.  The EU appreciates the opportunity to participat e in this review of the Kingdom of Tonga's 
trade policy. We hope that this TPR will provide food for thought to Tonga on its policies so as to 
stimulate a constructive discussion on their needs of technical assistance.  
AUSTRALIA 
4.48.  Australia is pleased to participate in Tonga’s first Trade Policy Review, and welcomes 
Minister Latu and the Tongan delegation to Geneva. A number of others have already mentioned the destruction wrought by Cyclone Ian. Australia's  thoughts remain with those who have had their 
homes and livelihoods devastated by this disaster. 
4.49.  We congratulate Tonga on the efforts it has made since its accession in 2007 to fully 
implement its WTO obligations. Tonga’s commitment to the rules-based multilateral trading system is evident and we encourage continued efforts in this area.  
4.50.  Australia and Tonga enjoy a close working relationship. As the largest bilateral grant donor 
to Tonga, Australia has done its utmost to promote Tonga's sustainable economic development, including through supporting its transition to an open market economy and its participation in the 
multilateral trading system. Australia is working in partnership with Tonga to reduce poverty, 
promote economic opportunities and improv e the lives of the people of Tonga.  
4.51.  Australia welcomes Tonga's concerted efforts, as outlined in its country report, to promote 
private sector participation in the economy, including through formulation of a Private Sector 
Development Strategy and the introduction of reforms to the business licensing environment and foreign investment legislation. Australia firmly believes that private sector involvement is vital to Tonga achieving its growth and development outcom es, in both the short and long term. We note, 
however, that a number of barriers to private sector participation remain and we encourage Tonga 
to work towards their eradication. In particular, we encourage Tonga to ensure that all its applied 
tariff rates remain within bound levels and that all imported and domestic like goods are treated 
equally under its excise tax regime. We also encourage Tonga to consider making market access 
commitments in additional services sectors – particularly maritime transport services, given the importance of these infrastructure services to Tonga's economic well-being. 
4.52.  At a regional level, Australia welcomes Tonga's involvement, along with that of other 
members of the Pacific Islands Forum, in the PA CER Plus negotiations. We strongly support the 
outcomes from the 19 July 2013 Pacific Islands Foru m Trade Ministers' meeting on PACER Plus. At 
that meeting, Ministers recognized the substantial progress that has been made in the negotiations 
to date and endorsed a roadmap that will guide officials in their further work, including in new 
areas such as services and investment. Ministers supported PACER Plus being both consistent with the WTO obligations of WTO Member parties and including realistic commitments to WTO rules for 
other parties. 
4.53.  Australia notes that, in August 2012, Tonga became the seventh Pacific Islands Forum 
country to undertake a Peer Review on its nation al development planning and budgeting of public 
financial and aid management systems. We are pleased to note that the Peer Review, conducted 
by a team from Samoa, Vanuatu and the United Nations Development Program, found that Tonga 
was overall on the right track regarding its systems and processes of managing its development WT/TPR/M/291 • Tonga 
 
- 16 - 
 
  resources. Although focusing specifically on deve lopment resources, this finding speaks well for 
Tonga and for promotion of its image as a reliable country with which to trade and in which to do business. 
4.54.  Our questions for this review reflect our interests in the Tongan market, and address 
aspects of the Tongan economy including agriculture, competition policy and business facilitation. 
We thank the delegation for its responses to these questions and encourage Tonga to continue working towards comprehensive liberalization of its trade and investment policies. 
INDIA 
4.55.  At the outset, my delegation welcomes the first Trade Policy Review of Tonga which is the 
recently acceded Member into the WTO family. We are also glad to know that despite facing many challenges in developing and maintaining sound economic infrastructure due to its remote location, 
small size, dispersed island setting and limited ability to fund the necessary improvements in 
infrastructure, Tonga is fully committed to the achievements of the Millennium Development Goals, inclusive and sustainable development of its econ omy where international trade plays an important 
part. We also support its position that the conclusion of the DDA negotiations will strengthen the 
WTO and it would advance the interests of the small island developing nations like Tonga. 
4.56.  In the recent years, Tonga has faced signific ant development challenges including the civil 
unrest of 2006, effects of the global financial crisis and natural disasters in 2009. But despite these 
challenges the Tongan economy has shown a remarkable resilience by recording a strong average GDP growth of 2.6% for consecutive years form 2007/08 to 2010/11. Similarly stable growth was also seen after 2011. We credit the consistent ec onomic performance to not only to its stable 
political leadership but to the wide ranging reforms to economy especially after its accession to the 
WTO. We therefore encourage Tonga in its efforts to develop a Trade Policy Frame work so that it can further enhance its participation in the international trade.  
4.57.  On the occasion of the first review of its trad e policy, especially after its accession in the 
WTO in 2007, we appreciate Tonga’s focus on the implementation of the commitments made in its protocol of accession and the Working Party in Accession. Its efforts to review the investment 
regime through Foreign Investment Regulations 2006, to simplify business licensing environment, 
to review pubic enterprises, to make changes in SPS processes so as to bring them in conformity 
with the SPS norms and to implement the TRIPS and Customs valuation Agreements are noteworthy despite its limited resources and capacity within the institutions, agencies and 
non-governmental bodies that could provide it crucial inputs for its trade policy. We therefore 
support augmenting providing trade related tec hnical assistance and Aid for Trade to further 
streamline its domestic policy so that it can integrate fully with the multilateral trading system.  
SOLOMON
 ISLANDS  ON BEHALF  OF PACIFIC  ISLAND  MEMBERS 
4.58.  I make this statement on behalf of Pacific Is land Members of the World Trade Organization 
(WTO), namely, Fiji, Papua New Guinea, Samoa, Tonga, Vanuatu and Solomon Islands.  
4.59.  On behalf of the above named states , perm it me the opportunity to acknowledge the 
delegation of the Kingdom of Tonga, led by the Honourable Dr. Viliami Uasike Latu, Minister of 
Commerce, Tourism and Labour. The presence of the Honourable Minister and his delegation that has braved the long journey from Tonga to Geneva is testament to the high priority that the 
Government of Tonga attaches to a successful Trade Policy Review. 
4.60.  The story of Tonga's Membership in the WTO did not commence on 27 July 2007, when the 
Kingdom acceded to the WTO; it began many years prior and in recognition of the fact that the 
economic and social development of the Kingdom is inextricably tied to its participation in a 
functioning, rules-based and, moreover, equitable Multilateral Trading System. For small island developing countries such as Tonga - countries with a minute share of global trade, and 
price-takers in the international marketplace, participation in the Multilateral Trading System is 
critical to safeguarding their interests. The multil ateral system has proven itself indispensable in 
establishing a place at the table for small and vulnerable countries. It is based on this fact that multilateral rules should be crafted in a manner consistent with the interests of all Members.  WT/TPR/M/291 • Tonga 
 
- 17 - 
 
  4.61.  Since Tonga's accession to the WTO, it has pursued a robust programme of reforms based 
on commitments undertaken during its accession process but also based on autonomous structural reforms that aim at strengthening overall competitiveness. As evidenced in the two reports circulated, Tonga has embarked on a complement of reforms and adjustment measures as 
reflected in the "Tonga Strategic Development Visi on". This vision-plan provides a blueprint for a 
multi-stakeholder approach to economic and sect oral re-alignment and development. The success 
of the repositioning envisaged by this developmen t "plan" will be assessed against quantitative 
and qualitative benchmarks and indicators. We no te that Tonga's economic development is based 
on clear trade and commercial objectives. In the deployment of this approach, a National Export Development Strategy has been designed to assi st in the strengthening of export sectors, 
including: agriculture, fisheries and services.  
4.62.  Notwithstanding the efforts outlined above, Tonga continues to grapple with encumbrances 
in developing adequate internal capacity to compete internationally. It is for this reason that Aid for Trade should be resourced and structured to assist small economies such as Tonga in making 
good on their market access potential.  
4.63.   We commend the Government of Tonga for the reforms and measures that have been 
implemented and those that are being planned towards mainstreaming and streamlining trade 
under the current Tonga Strategic Development Framework.   
4.64.  In this connection, the two Reports stress the importance, particularly to Tonga and the 
SVEs, of ensuring, that the WTO obligations be accompanied by adequate Aid for Trade resources 
to implement commitments and more so, to develop export capacities that would enable Tonga to 
take advantage of trade opportunities.   
4.65.  I now make this statement on behalf of Solomon Islands. My delegation congratulates the 
Government of Tonga on their Trade Policy Review  Report. As a close neighbour, Solomon Islands 
knows only too well the challenges a small Island country in the Pacific encounters in meeting its 
obligations under the WTO rules let alone its effort to develop its trade capacity to overcome their supply side constraints and develop value added products to be able to compete in regional and 
global markets. Solomon Islands therefore commend Tonga on its efforts so far in trying to 
mainstream trade in its development strategy as well as the completion of its National Export Development Strategy. These would place Tonga in the right footing going forward into WTO 
compliant.  
4.66.  Having said that, and while we can and should plan for the future, I would implore Members 
to not underestimate the vulnerabilities of islands states like ours in the Pacific to extreme weather 
conditions. Tonga has in the last month experienced a devastating cyclone that has brought 
damage of huge proportions to one of its main island groups in Hapa’ai, which would require huge 
investment on the part of Government to bring to normalcy the life of the people in that part of the country. This issue is highlighted here for the reason that while in one day you are alright, the 
next day it may be a different scenario altogether and so Members must make allowances for such 
situations. 
4.67.  Finally, we wish Tonga every success in their TPR this week and a big Malo Au pito to the 
Minister and his delegation and safe return journey to the "Friendly Islands" of Tonga. 
VANUATU 
4.68.  At the outset, the Vanuatu delegation wishes to support the statement already delivered by 
Ambassador Moses of the Solomon Islands on behalf of the member countries of the Pacific Islands 
WTO Group. 
4.69.  Tonga's accession to the WTO was in recognition of the hope that trade is an engine of 
economic growth and development. Like Tonga, many small island states which are isolated and 
have a few exports, development has to be at the core of the multilateral rules-based system, to 
promote their trade interests. 
4.70.  Vanuatu has noted with interest the WTO Secretariat Report and Government Report that 
have been table for consideration. Although we do not have any specific questions, Vanuatu shares WT/TPR/M/291 • Tonga 
 
- 18 - 
 
  the same challenges that Tonga faces. We commend Tonga for its Strategic Development 
Framework which will guide Tonga's social and economic including trade development. Vanuatu further commends Tonga for the reforms that have been undertaken to implement its WTO commitments and that the Government already recogn izes that much work will need to be done.  
4.71.  Tonga's Report reflects the reality of many small developing islands States that are trying 
their best to benefit from the multilateral rules. These benefits can only be realized if WTO negotiations result in agreements that not only add new obligations to resource-constrained and 
capacity-constrained Members like small vulnerable economies but that also need to be 
accompanied by sufficient assistance and resources for implementation and, more importantly, for building their trade capacities. In this regard, commitments by developed Members and development partners would be encouraged towards addressing the Trade Related Technical 
Assistance needs outlined by Tonga which would, inter alia , assist in the Trade Policy Framework, 
the National Export Strategy and its Trade Negoti ations framework and its' Aid for Trade needs. 
4.72.  As a fellow Pacific country, Vanuatu would like to state that the TPR should not be a time to 
judge what Tonga has done or not done but to constructively engage the Government in delivering 
the benefits of the multilateral trade process. It is for this reason we continue to request that additional support measures is provided to small economies. 
4.73.  As we go forward, we urge Members to continue to approach the multilateral process in a 
manner that takes due account of the differentiated capacities of Members and find workable solutions that advance the cause of multilateral trade. In closing, my delegation will again like to take this opportunity to commend the Government  of Tonga for the robust trade and regulatory 
reform agenda that it has embarked on and urge Members and the WTO Secretariat to continue to 
make best efforts at supporting small countries like Tonga in pursuing their national development goals. 
PAPUA
 NEW  GUINEA 
4.74.  The Delegation of Papua New Guinea would like to reaffirm its support for the statement 
delivered on behalf of the Pacific Islands WTO Members by Solomon Islands in congratulating the 
Kingdom of Tonga for its first Trade Policy Review.  
4.75.  We also extend our appreciation to both the Tongan Government and to the WTO 
Secretariat for the Reports on its economic status that were circulated as part of this review exercise. 
4.76.  Tonga's Membership in 2007 to the WTO makes resonate the confidence that the small 
Island Developing States, including Papua New Guinea, and the Pacific WTO Members have in the Multilateral Trading System.  
4.77.  We note the significant domestic reforms that the Tongan Government has been 
undertaking. Furthermore, in its report it has highli ghted public-private partnership effort as one of 
the key elements in achieving the tangible economic growth, and meeting some of its WTO 
obligations and commitments. 
4.78.  We acknowledge the challenges that Tonga faces in terms of isolation from major 
international markets, narrow based export commodities, and its vulnerability to natural disasters like cyclone and drought. Some of these challeng es are peculiar to the Pacific region, including 
Papua New Guinea.  
4.79.  We hope that through this review, Tonga would be accorded that balanced view on the 
challenges it faces. In doing so, targeted technical, financial and capacity building assistances 
should be provided to help the country in achi eving desired outcome of its domestic reforms. 
BARBADOS 4.80.  Barbados extends a warm welcome to the Honourable Dr. Viliami Latu, Minister for 
Commerce, Tourism and Labour and his team to Geneva on the auspicious occasion of the first WT/TPR/M/291 • Tonga 
 
- 19 - 
 
  Trade Policy Review of Tonga. We take the opport unity to extend our sympathies on the latest 
cyclone Ian which created devastation for the islands and wish them a speedy recovery. 
4.81.  Let me begin by commending Minister Latu on his insightful and comprehensive statement. 
We wish to thank the WTO Secretariat for the preparation of the report contained in document 
S/291 and the discussant, Ambassador Adank, for his comments and analysis. 
4.82.  My delegation wishes to commend Tonga on a credible economic performance during the 
review period. Since 2006-07, Tonga experienced de clines in the country's exports, domestic 
production, tourism receipts and remittances - which contribute significantly to the country’s 
revenue earnings -resulting in a sharp decline in GPD growth. This was followed by a four year spurt of steady growth before declining again in  2011/12. Growth was owed to the adoption by 
Government of prudential measures including targeted budget cuts and the reconstruction of the 
Central Business District (CBD) which was financed by support received from development 
partners.   
4.83.  Tonga, a small vulnerable economy (SVE) completed its accession process to the WTO in 
2007 and is one of the smallest Members in the WTO. As part of its accession process, the country 
undertook extensive levels of commitments across the various negotiating areas. Its report indicates that Tonga had short transition period s to implement the WTO agreements on customs 
valuation and TRIPS while having no recourse to transition periods in other areas. The report also 
reveals that Tonga bound all of its tariff lines, and has no final bound rate exceeding 20%. With 
regard to services, the country undertook specific  commitments in 90 of 160 services subsectors 
with "full commitments" in 77 of these subsectors. Notwithstanding their level of commitment, 
Tonga remains committed to the multilateral trading system and to the Doha Development Agenda 
as it envisages that the successful completion of the Doha Round will strengthen the MTS and has the potential to advance the interests of small island developing states. 
4.84.  My delegation maintains that flexibilities should to be afforded to acceding SVEs. Acceding 
SVEs should only therefore be required to undertake commitments commensurate with their level of development. Due regard and appropriate consideration should therefore be given to the 
specific characteristics and vulnerabilities of acceding SVEs.   
4.85.  Despite the Government's tax revenue reform which entailed a shift from trade taxes to 
internal taxes, the country remains highly dependent on budget finance and project grants for a significant part of Government financing. Although additional reform is contemplated in its tax 
reform, the country's high dependence on donor su pport is of some concern as the country risks 
graduation from some schemes by the World Bank. 
4.86.  We note that Tonga has outlined a number of strategies for technical assistance. Of 
particular note is the review of the country's National Export Strategy (NES) which resulted in a 
shift in the specific focus of the strategy from g oods and services to only goods. It is anticipated 
that services will be incorporated into the Tonga Investment Promotion Strategy and Labour 
Export Strategy. The country has also devised an overall development strategy through the Tonga 
Strategic Development Framework (TSDF) 2011-2014. This strategy aims at spurring growth through the promotion of regional and international trade and fostering a vibrant public-private sector partnership focused on deepening private sector engagement in policy formulation and 
implementation.   
4.87.  It is imperative that small economies be allowed the flexibility to commit to trade 
liberalization and formulate trade policies in accordance with their developmental needs. In this 
context, my delegation looks forward to continue working with Members to ensure that progress in 
the Work Programme on Small Economies is accelerated in line with the decision adopted at the Hong Kong Ministerial Conference. Such flexibilities will help small economies to continue to 
successfully pursue their trade liberalization, economic reform and developmental objectives. 
Barbados wishes Tonga well in the roll out and implementation of these strategies. 
4.88.  Tonga as a typical small island developing state (SIDS) is characterized by a limited export 
base, remoteness to international markets, diseconomies of scale, susceptibility to natural 
disasters and vulnerability to external shocks. Many of these have a direct impact on trade. As we WT/TPR/M/291 • Tonga 
 
- 20 - 
 
  celebrate 2014 as the year of the SIDS we look forward to engaging WTO Members on 
"Sustainable development of SIDS through genuine and durable partnerships". 
KENYA  ON BEHALF  OF ACP 
4.89.  The Group congratulates the Honourable Dr. Viliami Uasike Latu, Minister of Commerce, 
Tourism and Labour of the Kingdom of Tonga and the people of Tonga on the occasion of their first 
WTO Trade Policy Review since its accession in 2007 as the WTO's 151st Member. 
4.90.  The ACP further through, Minister Latu, extends heartfelt sympathies to the Government 
and the People of Tonga as a result of the recent cyclone tragedy that hit their country.  
4.91.  As a valued Member of the ACP Group, Tonga's participation in the WTO rules based system 
is key to the advancement of the interests of the Group.  
4.92.  It is clear from the TPR reports prepared by the Government of Tonga and the WTO 
Secretariat that Tonga has been resilient in its initiatives to streamline rules and regulations as 
well as its instituted reforms. Tonga has also used WTO Membership to stimulate investment for purposes of realizing its development objectives including the MDGs.    
4.93.  After its accession to the WTO, Tonga was impacted by the global recession, thus 
experiencing declines in exports of its agricultural and fisheries products as well as tourism earnings and overseas remittances. Despite this challenge, Tonga managed to recover from its 
exports declines exceeding pre-crisis levels and maintained an average growth in GDP of 2.6% 
from 2007 to 2011.    
4.94.  Against this background, the ACP Group joins the Pacific Island Forum along with other WTO 
Members in applauding the stability and economic recovery of Tonga despite the severe challenges 
it faces as a small and vulnerable economy and recently acceded Member of the WTO. 
4.95.  Like many SVEs and ACP States, Tonga is dependent on imports of consumer products such 
as fuel and without hesitation has endeavoured to advance its compliance with WTO rules 
irrespective of uneven competition encountered by  its export products in developed countries 
arising from agricultural and fisheries subsidies and the onerous non-tariff barriers due to lack of capacity to meet certain standards. This is commendable. 
4.96.  In conclusion, The ACP Group supports Tonga's call for technical assistance and enhanced 
Aid for Trade programmes to enable Tonga continue with its progress in implementing WTO rules and reaping promised benefits of market access and investment availed by its WTO Membership.   
4.97.  Recognizing that Tonga is a non-resident in Geneva, the ACP Group will in the meantime 
continue to support Tonga in Geneva, together with the Pacific Island Forum, as we begin this year 
to examine the way forward on the DDA issues, particularly those of interest to Tonga and the ACP Group of States. 
JAPAN 
4.98.  First of all, Japan would like to express its sincere sympathy to all the victims and significant 
damages of Hurricane "Ian" which hit Tonga in January. We hope that the region hit by the 
disaster will reconstruct as soon as possible. 
4.99.  With regard to economic environment, the report by the Secretariat describes Tonga's 
vulnerability to natural disasters. The report also mentions that one of Tonga's main features is its remoteness from international markets, which translates into high costs for imports and a lack of 
competitiveness. In addition, in the period under review, the global economic crisis affected Tonga 
particularly through a decline in tourism and remittances. Japan expects that Tonga will overcome these challenges and will achieve stable economic growth by attracting foreign investment and 
diversifying its industry and products. 
4.100.  Now, let me turn to trade and trade-related policies. WT/TPR/M/291 • Tonga 
 
- 21 - 
 
  4.101.  First, according to the report by the Secret ariat, Tonga acceded to the WTO with tariffs 
bound at relatively low levels and its tariff structure is not complex. Besides, Tonga is faced with a backlog of reforms to modernize and streamline it s legal and regulatory frameworks. Japan hopes 
that Tonga's future reform will lead to further participation in the WTO and contribution to 
maintain and strengthen the multilateral trading system. 
4.102.  Second, concerning regional trade agreements, Tonga concluded the bilateral trade 
agreement with Fiji. Tonga is also involved in co nsiderations of several regional trade agreements 
as a member of Pacific Islands States or the Af rican, Caribbean, and Pacific Island Group. Japan 
hopes that RTAs concluded by Tonga will complement the multilateral trading system represented by the WTO. 
TOGO 
4.103.  It is a genuine pleasure to take part in the tr ade policy review of a country with which Togo 
maintains friendly relations. I wish to congratulate the Minister on his statement. It was clear and concise and gave us a better insight into many aspects of the country's economy with which we 
were unfamiliar. It also gave an idea of the e fforts that the authorities of the Kingdom of Tonga 
are making to further the country's development and increase its integration in world trade. 
4.104.  This is the first time that the Kingdom of Tonga has engaged in a Trade Policy Review 
exercise since its accession to this lofty international organization almost seven years ago. I 
extend my congratulations to the Tongan authorities and welcome this first review. Belonging to the WTO entails obligations, and Tonga is to be commended on bringing itself into conformity with the principle of transparency which is dear to our Organization and of which the trade review policy 
mechanism is one of the safeguards. 
4.105.  The Report submitted by Tonga highlights the significant progress made since its 
accession, in spite of a period of recession in the global economy. 
4.106.  Whether in terms of investment, trade facilitation, customs procedures, tariffs, protection 
of intellectual property, or agriculture, policies have been or are being reviewed. 
4.107.  These efforts are to be commended and bear witness to the fact that the status of the WTO 
is a catalyst for legislative, regulatory and administrative reforms that can only benefit the 
economy. 
4.108.  My delegation is pleased to note the efforts that the Kingdom of Tonga is making at 
national level in order to attain the Millennium Development Goals and strongly encourages it to 
embark on trade reforms that can help it achieve these goals. It is needless to recall that when 
trade is a source of growth it becomes a powerful means of combating poverty. 
4.109.  Tonga is a small vulnerable economy, and its integration in the multilateral trading system 
represents an enormous challenge. My delegation endorses Tonga's request for technical 
assistance to meet its needs through Aid for Trade, which is crucial for a developing country struggling to achieve greater integration in international trade. 
4.110.  However, my delegation still holds the view that only a successful conclusion of the Doha 
Development Round, which has been under negotiation for 13 years, will provide a long term solution for the integration of a developing country such as Tonga. 
4.111.  My delegation once again welcomes the positive outcome of the Ninth Ministerial 
Conference in Bali, which has rebuilt the Membership's confidence in the Round, and hopes that 
the decisions taken in favour of the developing countries will actually be implemented. WT/TPR/M/291 • Tonga 
 
- 22 - 
 
  SAINT  LUCIA  ON BEHALF  OF OECS 
4.112.  The OECS commends Tonga for their efforts in what would have been a challenging task in 
readying themselves for this, their first WTO review. As a Recently Acceded Member and small vulnerable economy joining the WTO in 2007, there is no doubt that Tonga's decision to accede 
was based on a belief and expectation that there is  more to be gained as a WTO Member and part 
of the multilateral trading system, than remaining on the side-lines. 
4.113.  Tonga recognizes the importance of international trade to meet its development objectives 
and this is manifest in their four-year Strategic Development Framework of which international 
trade in an integral part. The OECS also recognizes and appreciates the importance that Tonga has placed on the linkages and contribution of the private sector, investment promotion and tourism, priorities similar to the OECS island economies. The OECS also sympathizes with Tonga as regards 
the development challenges and in fulfilling its WTO commitments. 
4.114.  Despite the global recession and the negative impact on small economies like Tonga, 
Tonga recorded modest and stable growth rates and that is forecast to strengthen over the next 
few years in certain key sectors like agriculture and fisheries. A conclusion to the DDA negotiations 
would therefore render some market predictability, and with the requisite special and differential treatment that economies like Tonga demand, allow Tonga to more fully integrate in the 
multilateral system. 
4.115.  In closing, the OECS would like to applaud th e efforts that Tonga has made in transparency 
and congratulates the Tongan delegation for their successful review and pledges its continued support. WT/TPR/M/291 • Tonga 
 
- 23 - 
 
  5  REPLIES BY THE REPRESENTATIVE OF  TONGA AND ADDITIONAL COMMENTS 
5.1.  We are very grateful to you, Mr Chairman, for your excellent management of the meeting. 
And we also wish to express our appreciation to Ambassador Adank, as discussant, and to the constructive participation of all delegates. 
5.2.  Our delegation would also like to acknowledge the support of the Secretariat in the planning 
and execution of this meeting. 
5.3.  Tonga is encouraged by the positive tone of the discussions on Tuesday. The overall 
impression expressed by many Members, is that Tonga's trade regime is an open one, reflecting 
the ambition of our accession commitments and on-going reform processes. 
5.4.  We also very much appreciate the many expr essions of concern and sympathy with respect 
to the devastating effects of Cyclone Ian. Ambassador Adank pointed to the serious adverse 
effects of natural disasters on Tonga's economy estimated on average at around 4% of GDP each 
year. 
5.5.  I would also like to take this opportunity to gratefully acknowledge in this forum the 
assistance provided by some Members following the passage of the Cyclone Ian. Malo 'aupito e 
tokoni. 
5.6.  Turning to some of the main specific issues raised by Members: 
5.7.  On the question of how trade liberalization fits into Tonga's growth strategy, Tonga is 
committed to promoting trade and sustainable development as indicated by its commitments to the WTO, and recognized in this Review. 
5.8.  Tonga continues to adopt an ambitious stance to take advantage of the trade liberalization 
towards the realization of its growth objectives. More recently, in pursuit of its national policy 
objectives through the Tonga Strategic Development Framework, Tonga fully supports Pacific comprehensive regional trade and economic integrat ion as a priority endorsed by the Pacific Forum 
Leaders. 
5.9.  Tonga's national priorities for trade include the need for increased opportunity and market 
access for Tonga's exports in agriculture, touris m, fisheries, and an expanded and simplified 
system of labour contracts for Tongans under mode 4. 
5.10.  We also prioritize stronger development cooperation, technical and trade-related capacity 
building, and technical assistance as identified in the Annex to our Government report. 
5.11.  On the excise tax regime for alcohol and tobacco, I would refer to the remarks I made in my 
opening statement on Tuesday. I would add that Tonga takes seriously its WTO commitments. We 
are constantly reviewing the adequacy of our tax regime, and the excise tax regime for alcohol and tobacco products is being considered by the Tongan authorities. 
5.12.  On revenue foregone through tax exemptions, ag ain I would refer to my opening statement. 
In addition, let me says a few words about the background to the increase in exemptions in recent years. 
5.13.  The global financial and economic crisis has had serious adverse effects on the Tongan 
economy including a 40% reduction in remittances, reduced tourism receipts and sharps rises in the already high costs of imported fuel and food . Tax exemptions are one of the policy instruments 
used by the Government of Tonga to protect th e poorer and more vulnerable sections of the 
population, and alleviate spiralling costs for small businesses. Tonga continues to consider the 
sustainability of such assistance and the need to manage the revenue risks in light of Tonga's 
budgetary constraints. 
5.14.  As regards Tonga's access to GSP schemes, this has been hindered by eligibility conditions 
and technical issues such as meeting the rules of origin criteria, eligibility criteria and internal compliance challenges. WT/TPR/M/291 • Tonga 
 
- 24 - 
 
  5.15.  On agriculture, one of the challenges we face is with respect to market access, particularly 
in evaluating our compliance with SPS requirements. With assistance from key trading partners, we are gradually building up our expertise in this area. But we still have a long way to go. 
5.16.  In order to realize the undoubted potential we have in agriculture, we also need to build up 
our productive capacities and physical infrastructure for exports. 
5.17.  On fisheries, Tonga is reviewing and strengthening its licensing regime and enforcement 
capacities in order to maximize the potential of its vast EEZ in a sustainable way. We are also 
consulting with local stakeholders as to the challenges they face in entering the industry. 
5.18.  On remittances, Tonga is exploring new ways of measurement to account for changes in 
remittance channels. Tonga recognizes that conventional methods of measurement may not be fully capturing actual flows. Tonga is also exploring new financial instruments to encourage the 
investment alternatives for remittance flows. 
5.19.  As regards labour mobility, a key policy objective is to increase the skills of Tongans 
temporarily employed overseas. This would not only generate greater remittance flows, but would 
also have a multiplier effect on skills and investment at home. 
5.20.  On Tonga's Food Act, I refer to my opening remarks. Giver our national fondness for food, 
we consider this legislation to be an important investment in Tonga continuing to "punch above its 
weight" in international affairs. 
5.21.  Two Members raised the need for Tonga to develop a Trade Policy Framework. We fully 
agree with these remarks. Indeed, the development of such a Framework is one of our key priorities following the conclusion of our Trade Policy Review. 
5.22.  The Trade Policy Framework will be firmly anchored in our Strategic Development 
Framework. It will not only guide our future approach to trade negotiations, but also provide a strong foundation for our Government's close collaboration with the private sector, to better 
enable them to take advantage of the market  opportunities that WTO Membership affords. 
5.23.  Last but certainly not least, let me turn again to technical assistance. Tonga is taking the 
opportunity of its visit to Geneva to meet with relevant international organizations, including the 
WTO Secretariat, and some Members. We greatl y appreciate the interest that Members have 
shown in the Annex to our Report. We wish to use the contents of the Annex and our meetings this week as a catalyst for more specific conversations with all interested partners. 
5.24.  I n  c o n c l u s i o n ,  I  w i s h  t o  n o t e  t h a t  o n  T u e s d a y  w e  i n d u l g e d  i n  m a n y  s p o r t i n g  m e t a p h o r s  
starting with rugby and continuing on to other less physically demanding pursuits. 
5.25.  Let me now draw attention to Tonga's achievement at the Winter Olympics in Sochi. Our 
sole participant, hailing from the tropical island of 'Eua, triumphed in the men's luge, finishing 32
nd 
out of 39, ahead of several competitors from much larger countries present in the room today. 
5.26.  This is another example of Tonga excelling despite our small size and vulnerability. We try 
to bring the same qualities and commitment to our WTO Membership. 
5.27.  We will take note of any further questions that may be raised and my officials will provide 
responses where they can. 
DISCUSSANT 5.28.  Thank you Minister for your additional comments today responding to a number of the 
points raised by Members in the course of the di scussion on Tuesday, as well as in questions. 
5.29.  I think we have seen from the comments that Members have made recognition of the 
significant efforts that Tonga has undertaken in the process of joining the WTO. This has resulted 
in what appears to be recognized as an open trade regime following on from the commitments 
Tonga made in goods and services and other areas. Members have also acknowledged Tonga's WT/TPR/M/291 • Tonga 
 
- 25 - 
 
  vulnerability as a small island developing country , underlined by the recent challenges posed by 
Cyclone Ian. 
5.30.  There have been a number of specific questions raised which Tonga has responded to. In 
some cases these relate to specific details of the trade regime in such areas and tariff bindings and 
the application of excise. The responses from Tong a to these issues would seem to indicate that 
they have listened to the concerns raised and have either taken action or are considering action aimed at addressing these concerns. 
5.31.  We have also seen a broad range of questions raised about Tonga's intentions in relation to 
specific policies that might have a positive impact on the trade and investment environment and in the answers that have been provided Tonga has in dicated the extent to which these issues are or 
are not under consideration. 
5.32.  Tonga has highlighted the importance of technical assistance in terms of maximizing the 
benefits that it can enjoy from WTO Membership. In my introductory comments I have highlighted 
the importance of focusing with donors on a prac tically focused approach that will deliver real 
trade benefits to Tonga, avoiding a more formalistic approach that might end up focusing attention 
on aspects of the WTO framework that Tonga may, after investigation, find to be impractical and unnecessary in terms of meeting its objectives.   
5.33.  There is no one size fits all for WTO Membership – indeed there is no one size fits all for an 
SVE given the range of specificities that impact on the trading environment and trade policies in any country. In this regard, it remains important that Members can manage their trade frameworks consistent with their obligations, but also in a manner best targeted at their needs and 
those of their stakeholders. Clearly, the interests of small island developing countries like Tonga 
with relatively limited domestic market, as well as exports will be different to those of larger countries with large domestic and export markets. There are in all cases, of course, some common 
goals that remain crucial to economic development anywhere and, in this regard, Tonga has 
highlighted the Government's efforts to pursue a close partnership with the private sector.   
EUROPEAN
 UNION 
5.34.  The EU would like to thank the Kingdom of Tonga for the answers already submitted in 
preparation of the meeting of last Tuesday. 
5.35.  We must say that this first Review of Tonga has been very helpful for a better 
understanding of the trade policy undertaken by Tonga as well as of its needs. 
5.36.  In particular, the EU takes note of the necessities expressed by Tonga on further technical 
assistance to draw up the necessary rules and relevant legislation in terms of Rules of Origin. In this respect, the EU is assessing the feasibility of providing technical assistance to Tonga. 
5.37.  I would like to draw your attention on the fact that the EU is working on the allocation of its 
development aid for the period of 2014 to 2020. This represents about €32 billion for ACP countries under the 11
th European Development Fund. In line with the principle of ownership, the 
priorities of our aide are driven by our part ners. This notably concerns the inclusion of 
trade-related priorities in the EU's aid. Therefore, the time is ripe for our partners to approach EU delegations with sound plans. 
5.38.  The EU thanks Tonga for the replies already given to our questions; however, we would like 
to point out that two questions remain outstanding notably on the "Licensing arrangement for 
fisheries". In their replies, Tonga has stated that a regional licensing arrangement has yet to be finalized; but there remain two questions. 
 Are Tongan vessels entitled to fish outside its EEZ by any other legal provision than a 
 regional FFA arrangement? and 
 How many Tongan vessels are involved in such operations? WT/TPR/M/291 • Tonga 
 
- 26 - 
 
  5.39.  The EU is looking forward to Tonga answers in due course and welcomes this review as a 
useful exercise for all parties. We thank Tonga for its active participation in this exercise and for the information provided. 
UNITED
 STATES 
5.40.  The United States appreciate the participation of Minister Latu and the delegation in the 
review and Tonga's responses to our questions which we are reviewing in capital. At this point, we agree that this discussion has been very helpful this last two days and we wish to congratulate 
Tonga on successfully completing its first TPR. WT/TPR/M/291 • Tonga 
 
- 27 - 
 
  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  This first Trade Policy Review of Tonga has provided an excellent opportunity to improve our 
understanding of Tonga's economic and trade polic ies, and the environment in which these policies 
operate. My sincere thanks go to the Honourable Viliami Latu, Minister for Commerce, Tourism and 
Labour, and the other members of his team from Tonga, for their well-prepared and constructive 
engagement throughout this exercise. I would also like to thank Ambassador John Adank, Permanent Representative of New Zealand to th e WTO, for his insightful interventions as 
discussant. Tonga's written answers to the advance written questions have been well appreciated 
by Members. 
6.2.  Members acknowledged the significant challenges Tonga is facing as a small island developing 
country in the Pacific, including its occasional exposu re to severe natural disasters. In this context, 
Members expressed their heart-felt sympathies to Tonga, and all those affected by the devastating 
cyclone Ian. It was recognized that this tragic event also serves as a reminder of the particular developmental challenges facing Tonga, as well as other countries with similar vulnerabilities, and 
many Members underlined the need to take such  vulnerabilities properly into account in the 
various activities of the WTO.  
6.3.  While Tonga has performed rather well during the period under review, with stable economic 
growth despite the global economic crisis, the very limited size of the domestic economy and the 
distance to overseas markets make Tonga an importer for much of its needs, and an exporter of a narrow range of goods and services. Remittances from a numerous expatriate Tongan community, the earnings of seasonal workers abroad, and donor support ensure that the Tongan economy 
remains in balance. But it is a source of insecurity for the country's economic trajectory, not least 
in combination with significant tax exemptions. Similarly, it was recognized that Tonga is confronted with capacity issues affecting the ability to benefit fully from its WTO membership. 
Tonga's focus on technical assistance needs was examined with interest and a number of Members 
expressed their willingness to provide assistance in the future. 
6.4.  Members commended Tonga for its ambitious accession commitments and for maintaining an 
open and liberal trade regime, even in a challe nging environment. Tonga acceded to the WTO in 
2007 with relatively low tariffs, with substantial coverage of services sectors, and with short transitional arrangements to implement WTO provisions. Since then, Tonga has reduced some tariffs to implement the accession package and generally respected its WTO commitments, 
providing notifications to this effect. Also, international trade and closer private-sector involvement 
are integral parts of Tonga's four-year Strategi c Development Framework. Accordingly, Tonga has 
been reforming its business licensing system to im prove the ease of doing business, and initiated a 
review of the foreign investment legislation to attract more investment, all of which was welcomed 
by Members. A Ministry of Public Enterprises was created already in 2002 to strengthen the management of state-owned businesses and facilitate privatizations. Members recognized that the 
political will to undertake further reforms appears to be present, and the recent arrival of high 
speed internet in Tonga should provide addition al advantages and opportunities to the private 
sector.  
6.5.  Against the background of a generally positive  and understanding attitude, Members pointed 
to some areas where Tonga could make further efforts and improvements for its own benefit and 
the benefit of its many partners. Let me also recall in this context, the constructive and forthcoming statement by the Minister: 
 Strengthening the regulatory and institutional framework : Although Members 
commended Tonga generally for its efforts to develop its legislation and administrative capacity, some Members expressed an interest in the development of particular areas, 
e.g. the promulgation of a formal bankruptcy  law, effective enforcement of intellectual 
property rights, and the possible revision of Tonga's Shipping Act. 
 Tariff and non-tariff measures : Tonga was encouraged to ensure that all applied tariff 
rates be kept within bound levels, and to treat all imported and domestic like goods 
equally under its excise tax regime, in line with its WTO commitments. WT/TPR/M/291 • Tonga 
 
- 28 - 
 
   Sanitary and phytosanitary regime : Members noted the importance Tonga attaches 
to food security, the ongoing consideration of a National Food Bill, and the possible establishment of a National Food Authorit y. However, Members also sought further 
details about changes made to Tonga's SPS processes and their conformity with the WTO 
SPS Agreement, and the possible use of risk  assessment in the granting of import 
permits. 
 Trade agreements and arrangements : Members noted Tonga's commitment to the 
completion of ongoing negotiations under the ACP-EU Economic Partnership Agreement 
and the Pacific Agreement on Closer Economic Relations - PACER Plus, as well as its efforts to implement the Pacific Island Countries Trade Agreement (PICTA). At the same time, a question was raised whether Tonga is exploiting fully existing preferences 
available within the import schemes of some  Members. Members noted Tonga's indication 
of constraints limiting its possibilities to make use of such unilateral preferences.  
 Sectoral issues : With 70% of Tonga's population liv ing in rural areas and dependent on 
agriculture and fisheries, a member stressed the importance for Tonga to achieve greater 
returns from its agricultural export trade and from fisheries licences sold to other nations. The cyclical nature of fish catches may frequently be ascribed to over-exploitation in the 
past. A Member also argued that Tonga's high termination rates for international 
telephone calls led to rerouting, and had weaken ed Tonga's connectivity to the rest of the 
world. 
6.6.  In conclusion, Members generally commended Tonga for maintaining its focus on policy goals 
to modernize the economy and streamline its regulatory systems, to encourage investment, and to 
facilitate business. A WTO-consistent open trade and investment regime should assist Tonga in securing sustainable growth and better realize its economic potential. Members took note in this 
regard of the intention of Tonga to develop a Trade Policy Framework. 
6.7.  Members warmly welcomed that this first TPR of Tonga has provided an opportunity to assess 
progress and to identify areas of further work, including areas where capacity needs prevail. The 
questions posed and the active participation of delegations in this meeting reflect Members' 
interest in Tonga's trade and investment policies and practices. As many Members pointed out, this review not only allowed a detailed exchan g e  o f  v i e w s  a b o u t  T o n g a ,  b u t  a l s o  -  I  h o p e  -  
furthered our collective appreciation of the developmental conditions facing some of our 
Membership's smallest and most vulnerable countries. 
6.8.  In closing, I would like to thank the delegation of Tonga, all the other delegations, the 
discussant and the Secretariat for this successful review. 
__________