WT/L/887  
 
9 July 2013  
(13-3628)  Page: 1/3  
General Council 
24-25 July 2013  Original: English  
 
 UNITED STATES – FORMER TRUST TE RRITORY OF THE PACIFIC ISLANDS  
REPORT OF THE GOVERNMENT OF THE UNITED STATES FOR THE YEAR 2012  
UNDER THE DECISION OF 27 JULY 20071 
The following communication, dated 4 July 2013, is being circulated at the request of the 
Delegation of the United States. 
 
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1  INTRODUCTION 
1.1.  On 27 July 2007, the United States was granted a renewal of the waiver2 from its obligations 
under paragraph 1 of Article I of the GATT 1994 to the extent necessary to permit the 
United States Government to provide preferential treatment for eligible imports into the United 
States from the Republic of the Marshall Islands,  the Federated States of Micronesia, the Republic 
of Palau, and the Commonwealth of the Northern Mariana Islands, all formerly part of the Trust 
Territory of the Pacific Islands (TTPI).3  This waiver expires 31 December 2016. 
1.2.  Under the terms of this waiver, the United States is required to submit to the General Council 
an annual report on the implementation of the tr ade-related provisions of the programme with a 
view to facilitating the annual review provided for in paragraph 4 of Article IX of the WTO 
Agreement.  This report covers the calendar year 2012 and trade data has been provided for that 
calendar year, the most recent year fo r which full-year data is available. 
2  PREFERENTIAL TREATMENT FOR THE FO RMER TRUST TERRITORY OF THE PACIFIC 
ISLANDS 
2.1.  In 1986, the entry into force of the Covena nt establishing the Commonwealth of the Northern 
Mariana Islands, the Compacts of Free Association with the United States for the Republic of the 
Marshall Islands, the Federated States of Micronesia, and, in 1994, of the Compact of Free 
Association with the United States for the Republic of Palau, terminated the Trusteeship of the Pacific Islands, established on 2 April 1947. US law provides for the extension of the preferential trade treatment to these entities which were granted these islands under the TTPI. These 
preferences are similar to historical preferences th e United States provides the US Virgin Islands, 
Guam and American Samoa, which were US possessions on 1 July 1939, and which are included in Annex D to Article I of the GATT 1994. The primary purpose of this preference system has been to 
promote the expansion of trade and the economic development of the beneficiaries in a manner 
consistent with the objectives of the GATT and wi th the trade, financial and development needs of 
the beneficiary countries. 
                                               
1 WT/L/694. 
2 WT/L/183. 
3 These four entities formerly co mprised the three geographic island  groups known as the Marshall, 
Caroline, and Mariana Islands, which are located in th e western Pacific Ocean region around Guam known as 
Micronesia.  With the expiration in 1986 of the U.N.-mandated TTPI which was administered by the United 
States for roughly 40 years, these islands formed into  four political entities, three independent nations 
(Republic of the Marshall Islands, Federated Stated  of Micronesia, and Republic of Palau), and one 
commonwealth in political union with the United Stat es (Commonwealth of the Northern Mariana Islands).  WT/L/887 
 
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  Under General Notes 3(a)(iv) and 10 of the Harmoniz ed Tariff Schedule of the United States, duty-
free treatment is accorded to all products of the former TTPI, with some exceptions. Certain fishery products are subject to quantity limitations, while watches and watch movements, and buttons, certain textile, apparel, footwear and luggage  products are subject to duty in some or all 
of the former TTPI. Duty-free treatment is only  accorded to the in-quota quantity of the 
agricultural products subject to a tariff-rate quota.  
3  PERFORMANCE 
3.1.  A very small volume of production and trade is involved in this program.  Taken together, 
US imports from the Republic of the Marshall Islands, the Republic of Palau, the Federated States of Micronesia, and the Commonwealth of the Northern Mariana Islands in 2012 total about 
US$22 million. 
3.2.  Total US imports from the former TTPI increased by about 26 per cent, from about 
$17 million to about $22 million. During the past year, US imports from the Commonwealth of the 
Northern Marianas and the Republic of Palau more than doubled, and US imports from the Republic 
of the Marshall Islands increased by about 26 per cent. US imports from the Federated States of Micronesia decreased.   
3.3.  The Republic of the Marshall Islands was the largest exporter, responsible for roughly 87 per 
cent of total exports to the United States from the former TTPI in 2012. The Commonwealth of the 
Northern Marianas and the Federated States of Micronesia were the next largest exporters in 2012, followed by the Republic of Palau.  The following table provides summary information on 
US imports from the former TTPI for 1998-2012. 
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  WT/L/887  
 
- 3 - TABLE 1 
US IMPORTS FOR CONSUMPTION FROM THE FORMER TRUST TERRITORY OF THE PACIFIC ISLANDS, BY SOURCES, 1998-2012 
 
Source 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 
 Value (1,000 dollars) 
Republic of the 
Marshall Islands 5,769 9,812 5,047 5,523 9,424  27,109  11,250 17,205 14,521  13,138 20,219 13,650 11,820 14,939 18,947  
Federal States of 
Micronesia 12,587 10,132 13,729 20,769 15,217  14,347  11,415 1,558 885  4,069 3,552 2,918 4,218 1,596 904  
Republic of Palau 13,609 15,760 13,567 15,426 15,492  1,633  162 485 605  386 1,138 80 148 210 455  
Commonwealth of the 
Northern Mariana Islands 1,066,981 1,049,101 1,026,158 948,155 816,959
 826,123  811,020 679,560 498,362  319,171 105,299 5,959 1,163 627 1581  
Total 1,098,946 1,084,805 1,058,501 989,873 857,092  869,212  833,847 698,808 514,373  336,764 130,208 22,607 17,349 17,372 21,887  
 
 
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