WT/TPR/M/ 349/Add.1  
6 Febru ary 2017 
(17-0293) Page: 1/39 
Trade Policy Review Body  
13 and 15 December 2016   Original: English /anglais /inglés  
 
  TRADE POLICY REVIEW  
SOLOMON ISLANDS  
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Ms. Irene Young (Hong Kong, China ) 
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Solomon Islands . 
 
 
Organe d 'examen des politiques commerciales  
13 et 15 décembre  2016 
EXAMEN DES POLITIQUE S COMMERCIALES  
ÎLES SALOMON  
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président e: Mme Irene Young (Hong Kong, Chine ) 
Le présent document contient les questions écrites commu niquées à l 'avance par les 
Membres de l 'OMC, leurs questions additionnelles, et les réponses  fournies par  les Îles Salomon . 
 
 
Órgano de Examen de las Políticas Comerciales  
13 y 15 de diciembre  de 2016 
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
ISLAS  SALOMÓN  
ACTA DE LA REUNIÓN  
Addendum  
President a: Sra. Irene Young (Hong Kong, China ) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  Islas 
Salomón . WT/TPR/M/ 349/Add.1  
 
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  CONTENTS  
1  AUSTRALIA  ................................ ................................ ................................ ..................  3 
2  CANADA  ................................ ................................ ................................ .......................  8 
3  CHINESE TAIPEI  ................................ ................................ ................................ ........  11 
4  EUROPEAN UNION ................................ ................................ ................................ ...... 13 
5  EUROPEAN UNION (FOLL OW UP QUESTIONS)  ................................ ............................  16 
6  NEW ZEALAND ................................ ................................ ................................ ............  17 
7  THAILAND  ................................ ................................ ................................ ..................  22 
8  THAILAND (ADDITIONAL  QUESTIONS)  ................................ ................................ ...... 28 
9  UNITED STATES OF AME RICA  ................................ ................................ .....................  30 
 WT/TPR/M/ 349/Add.1  
 
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1  AUSTRALIA  
Trade Policy Review Report by the WTO Secretariat (WT/TPR/ S/349)  
4 Trade Policies by Sector  
4.1.1 Agriculture  
Page 41,  paragraph 4.6 
Paragraph 4.6 refers to the four objectiv es of the Agriculture and Livestock Sector Policy 2015 -
2019; to achieve "food sovereignty ", to improve rural livelihoods, to promote agriculture for import 
substitution and to increase trade.  
Question 1  
How does Solomon Islands see the role of imports in improving rural livelihoods through increased 
food availability?  
The rural economy of Solomon Islands accounts for approximately 80% of the 
population making food availability in these remote places intrinsic to sustaining and 
improving rural livelihoods.  Solomon Islands, in recognising the importance of food 
availability and security, as a result of the global financial crisis in 2008/09 unilaterally 
reduced all import duties in 2009. 80% of import duty lines are now at 10% while 15% 
of import duty lines are now at 5%. All Agriculture HS lines (except for alcohol and 
tobacco) are at 0%, 5% or 10% duties. This reduction in import duties emphasises the 
importance Solomon Islands places on food imports to ensure food availability.  
Question 2  
What approach is  Solomon Islands taking to balance the role of free and open trade and the goal 
of "food sovereignty " to ensure food security?  
Food sovereignty refers to the right of Solomon Islanders to consume food that is 
healthy and culturally appropriate, which is pr oduced through ecologically sound and 
sustainable methods in order to promote food security. Solomon Islands recognises that 
an open trading regime is intrinsic to achieving this objective, provided that an effective 
regulatory regime is in place to balanc e unfettered entry of goods into the country, 
which may have adverse health and environmental impacts.  
The pursuit of 'free and open trade ' has not resulted in trade -led development in the 
agriculture sector, which will enable Solomon Islands to achieve fo od sovereignty. 
Domestic supply of food produced has not responded automatically to international 
market demand given the reduction in trade taxes. The Solomon Islands Government 
(SIG) is now actively promoting diversification of food production through su pply-side 
initiatives to promote industries in which we foresee having a dynamic comparative 
advantage. This should contribute to greater food security, sustainable employment 
generation and improved livelihoods for those rural communities and families whi ch are 
least likely to reap the benefits of a free and open trading regime.  
Noting the need for balance between free and open trade and food sovereignty with 
regards to Regional Trade Agreements, in developing the Solomon Islands ' market 
access offer for t rade in goods under the PACER Plus trade agreement, food stuff which 
was considered to be in conflict with our aim to promote food sovereignty, was excluded 
from liberalisation, in order to promote a healthy population by increasing the price of 
these good s so as to act as a deterrent to consumption. We view this act to be well 
within our rights as a sovereign nation to protect the health of our citizens, and not as 
an anti -trade practice.  WT/TPR/M/ 349/Add.1  
 
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  4.1.3 Forestry  
Page 43,  paragraph 4.22 
We note that the forestry se ctor continues to be of major importance to the economy of Solomon 
Islands, comprising 68 % of exports in 2015. It remains the single largest source of revenue for 
Solomon Islands Government and a source of livelihood for a large section of the population. While 
forestry makes an important contribution to the economy of Solomon Islands, Australia agrees 
with the report 's finding that current production levels appear unsustainable, and without active 
reforestation efforts by stakeholders, looks set to decline  in the short to medium term. The decline 
of the industry will present major challenges for Solomon Islands ' economy that must be 
appropriately planned for ahead of time. In an economic environment where every revenue dollar 
counts, it is concerning that w hile only USD 146m worth of log exports were declared by exporters 
in Solomon Islands in 2015, China reported receiving over USD 440m worth of logs from Solomon 
Islands in the same period.  
Question 3  
What steps are Solomon Islands taking to improve export  procedures to improve the collection of 
revenue from the export of round logs? What steps can be taken to ensure export values leaving 
Solomon Islands accurately reflect export values reaching overseas markets?  
The collection of revenue from the export of  round logs, as well as the export of all other 
goods, has improved through the implementation and use of ASYCUDA World as of 
15 June 2015, which has enhanced data collection and recording for Solomon Islands 
Customs and Excise Division. The price at which  each species of logs that are exported 
from Solomon Islands is known as the determined value, and this is agreed by the 
Ministry of Finance and Treasury. To ensure that the value of exports leaving Solomon 
Islands accurately reflects the values that are r eported in overseas markets, the 
Ministry of Finance and Treasury should better align the determined value with world 
prices and better regulate and monitor the export of logs. Ministry of Finance and 
Treasury is aware of this issue and is undertaking refo rms to improve compliance.  
4.3.4.1 Maritime transport and ports  
Page 54,  paragraph 4.92 
The report states that "Passenger cabotage is reserved for domestic flag vessels. Under the 
Shipping Act 1998, domestic flag vessels must be wholly owned by Solomon Isl ands citizens or 
corporations with their principal place of business in Solomon Islands. Although there are no 
statutory restrictions on the provision of cargo cabotage by foreign flag vessels, in practice only 
domestic flag vessels are allowed to provide this service. " 
Question 4  
What is the mechanism for regulating cabotage?  
The mechanisms for regulating cabotage can be found under the Shipping Act 1998 
Section 10 which states that every vessel which is owned wholly by a qualified person or 
by persons eac h of whom is a qualified person and having a length of ten metres or 
more shall be registered in accordance with this Act. Every vessel engaged in the 
carriage of passengers on a commercial basis from any port or place in Solomon Islands 
to any other port or place in Solomon Islands shall be registered under this Act. Every 
Solomon Islands passengers, cargo and fishing vessel operating on a commercial mode 
or pleasure craft of less than ten metres in length shall be licensed under this Act, in a 
manner to b e prescribed in the Regulations.  
Question 5  
Can cargo cabotage be provided by vessels that are not domestically flagged?  WT/TPR/M/ 349/Add.1  
 
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Cabotage reserves all Solomon Islands domestic cargo for Solomon Islands flagged 
ships. Under the revised draft Shipping Act, which is  yet to be passed, there is a section 
on "bare-boat" chartering vessels, which works together with cabotage. This allows a 
Solomon Islander to "bare-boat" charter a foreign owned vessel and put it under the 
Solomon Islands flag while it is on charter, so i t can then lift "cabotage " cargo.  
There is no explicit reference to the ability of non -domestically flagged vessels to carry 
cargo cabotage in the current legislation and as there is no fundamental National 
Maritime Transport Policy to interpret the law an d lay down the policy it is difficult to 
provide a concrete response. From an economic point of view, it would not make sense 
for a foreign person to bring a vessel to Solomon Islands to coastal trade it. Further, if 
the vessel came from another country, i t would presumably be carrying goods from that 
country, which would be classified as international cargo and therefore not cabotage 
cargo.  
Trade Policy Review Report by Solomon Islands (WT /TPR/G/349)  
1 Economic Environment  
1.8 Sectoral Performance  
Page 5,  paragraph 1.15 
Paragraph  1.15 of G -349 notes Solomon Islands ' reliance on logging exports, which comprised 
68% of total exports in 2015. However, there is an expected contraction in future logging exports 
and export revenue from logging (para graph s 1.13 a nd 1.16 refer).  At the same time, 
paragraph  1.4 identifies forestry as a source of potential future growth for Solomon Islands.   
Question 6  
What policy measures are being implemented by Solomon Islands to have the forest industry trend 
towards a growth sta te in the longer term?  
As mentioned in the SIG and WTO Secretariat reports, the Solomon Islands logging 
industry has been expected to decline over the past number of years, but has 
consistently exceeded expectations and continued to export. Whilst we do st ill expect 
logging exports to decline in the future, we have not yet been able to determine when 
this will happen. Therefore, until this date, logging will continue to provide a source of 
revenue for the economy and as such efforts are under way to encoura ge sustainability 
across the sector so that the resource may be available to us for a longer period of time. 
Efforts are also under way to improve revenue collection and generate value addition 
through milling activities.  
Specifically, as identified in the  National Development Strategy 2016 – 2035, SIG is 
working to establish policies that encourage replanting of local forestry species, 
downstream processing of forestry resources, as well as updating current forestry laws 
to assist land owning groups, inclu ding farmers, to promote the establishment of forest 
plantations to encourage reforestation and the promotion of sustainable harvesting. 
Support is also intended to promote agro -forestry schemes and improve infrastructure 
and facilities.  
The government rec ognises that whilst the resource is still available to us, efforts should 
be made to promote its sustainability; however, there are other sectors on which 
greater potential is placed to generate longer term growth in the Solomon Islands ' 
economy. These inc lude wholesale and retail, manufacturing, construction, and 
hospitality, as well as tourism and telecommunications (paragraphs 1.16 and 1.17).  WT/TPR/M/ 349/Add.1  
 
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  Question 7  
Will the contribution of the forestry sector to future economic growth continue to rely on the 
export s of non -milled logs?  If so, what policy measures are being implemented to ensure a 
sustainable supply of logs into the future?   
The contribution of the forestry sector to economic growth in the short to medium term 
will focus on generating sustainability through efforts to promote reforestation and the 
promotion of sustainable harvesting. As part of Democratic Coalition for Change 
Government 's (DCCG) policies on forestry and reforestation, they have identified the 
importance of promoting downstream process ing of forestry and timber industries in the 
domestic economy so that Solomon Islands can move away from a reliance on the 
exports of non -milled logs solely.  
Policy measures that seek to ensure a sustainable supply of logs in the future include 
replanting  of local forestry species and amendments to forestry laws to promote forest 
plantations. In general, the SIG is committed to the protection of natural resources, the 
environment and conservation efforts in Solomon Islands.  
Question 8  
If the forestry secto r's contribution will rely on products other than logs (for example non -timber 
forest products) what products are envisaged to generate this growth?  
The specific products envisaged to generate growth related to downstream processing 
have not been identifie d. It is the government 's intention to consider the policy options 
based on encouraging downstream processing in due course.  
2.1 Diagnostic Trade Integration Study and Trade Policy Framework  
Page 7,  paragraph 2.1  
Australia congratulates Solomon Islands Go vernment (SIG) on completing its first Trade Policy 
Framework which successfully outlines SIG 's key policy measures to develop a coherent approach 
to trade policy in Solomon Islands. It is a high quality document. Australia was pleased to present 
an overvi ew of Australia 's development assistance for Aid for Trade in Solomon Islands to the 
National Trade Development Council in 2015 and early 2016. Australia 's Aid Program in Solomon 
Islands is closely aligned with the objectives of the Trade Policy Framework and provides targeted 
technical assistance in areas such as agricultural market access, road and transport infrastructure, 
quarantine, customs, agricultural supply chains, access to finance, women 's economic 
empowerment and rural business development. Aust ralia's assistance for trade is set to grow in 
2016-2020 under the recently approved Solomon Islands Growth Program (AUD50m).  
Question 9  
The Australian Aid program is supporting a breadth of activities in the area of Aid for Trade in 
Solomon Islands. What  are the Solomon Islands ' future trade assistance needs, particularly to 
implement the recommendations of the Trade Policy Framework? How can we better support 
Solomon Islands ' trade priorities?  
The Solomon Islands would like to extend our utmost appreciat ion to the Australian 
government and people for their continued support to us in the area of trade promotion 
and expansion. As a small country far from major markets trade is our lifeline and the 
efforts currently under way to improve trade related infrast ructure, enhance trade 
facilitation through customs and quarantine support, as well as improving the business 
environment for private sector operators to help them access foreign markets, have 
contributed significantly to our trading potential. We are also  encouraged to note that 
the Australian government is using our Trade Policy Framework to determine the areas 
in which it will target its support. This alignment of needs and resources will ensure that 
the projects supported in Solomon Islands will generat e the highest value for money 
both now and in the future.  WT/TPR/M/ 349/Add.1  
 
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We are grateful for this opportunity to highlight some of Solomon Islands ' future trade 
assistance needs, as recommended in our TPF. Our key priority area is infrastructure. 
For transport infrastruc ture, Solomon Islands requires upgrading of roads, bridges and 
domestic airports; for economic infrastructure, Solomon Islands requires heat treatment 
and fumigation facilities, metrology and competent authority laboratories. In addition, 
Solomon Islands w ill continue to require support for Customs to advance the 
modernisation programme. The policies as outlined in the TPF are all priorities for us 
and we will continue to work with the Australian High Commission in Honiara to align 
both sets of objectives.  
Finally, it also worth noting that in January 2016 SIG finalised the 'Solomon Islands Aid 
Management and Development Cooperation Policy and the Partnership Framework for 
effective Development Cooperation '. The policy is aimed at bringing about tangible 
improvements in the utilisation of external and domestic resources and to ensure 
alignment with the Solomon Islands ' national development priorities, including the 
National Development Strategy 2016 -2036. Following completion of the first TPF in 
2015, trade for the first time has been set as a key tool in the NDS to reduce poverty and 
increase economic growth. Development cooperation should be targeted at enhancing 
the productive capacity of Solomon Islands through alignment of support with priorities 
and pol icies that promote sustainable development, eradicate poverty and reduce 
inequality.  
2.5 Competition Policy  
Page 8,  paragraph 2.7  
The report states that an efficient competition framework is necessary to secure the interests of 
consumers and producers an d to ensure non -discrimination of foreign investors in the domestic 
economy. The report also notes that the government must consider what types of investment it 
wishes to attract to Solomon Islands and how it can incentivise the local private sector to 
participate.  
Question 10  
Is the Solomon Islands Government (SIG) developing a comprehensive competition policy to 
replace the current ad -hoc approach to domestic competition issues?  
The Solomon Islands Government is developing a comprehensive competition po licy to 
replace the current ad -hoc approach to domestic competition issues. Following a 
discussion paper produced this year, consultations are expected to take place in 2017 
and the draft policy document will follow.  Asia Development Bank (ADB) is  supporti ng 
the Ministry of Commerce, Investment, Labour and Immigration (MCILI) on this 
initiative.  
Question 11  
What practical steps are SIG taking to maintain the fair, rules -based treatment of foreign investors 
through complying with the principle of Most -favou red-nation (MFN) treatment (i.e. treating 
trading partners equally on the principle of non -discrimination)?  
In order to maintain the fair, rules based treatment of foreign investors, Solomon 
Islands Government is currently finalising a revised investment p olicy which will be 
complementary to the ongoing improvements in the general business and investment 
climate. Solomon Islands for the first time will be a part of an RTA, the Melanesian 
Spearhead Group Trade Agreement (MSGTA3), which includes an Investment  Chapter; 
and continues to negotiate the PACER Plus. Both of these agreements facilitate a secure, 
predictable and favourable environment for investors and will assist to attract more 
foreign direct investment into a broad array of sectors in the Solomon I slands economy.  WT/TPR/M/ 349/Add.1  
 
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  2  CANADA  
Trade Policy Review Report by the WTO Secretariat (WT/TPR/ S/349)  
3 Trade Policies and Practices by Measures  
3.1 Measures Directly Affecting Imports and 3.1.8 Standards and other technical 
requirements  
Page 31,  paragraph 3.42 
The Se cretariat report notes that Solomon Islands has limited institutional capacity to adopt and 
enforce technical regulations and conformity assessment procedures. It has not adopted legislation 
to implement the TBT Agreement. It has not made any notifications  under that Agreement nor has 
it designated an entity responsible for answering enquiries about technical regulations, conformity 
assessment procedures, and standards. The preparation and notification to the WTO of an 
inventory of technical regulations and  conformity assessment procedures would be an important 
step towards increasing transparency for traders and helping efforts to enhance consumer 
protection.  
Question 12  
Could Solomon Islands indicate when it intends to adopt legislation to implement the TB T 
Agreement and notify that to WTO Members as per Article 15.2 of the TBT Agreement?  
No. TBT spans across the responsibility of various stakeholders and is dealt with on a 
product -by-product basis. Primarily, there is a need for the establishment of an 
overarching body/committee covering TBT, which can then assess the Solomon Islands ' 
capacity to implement its obligations to then ratify the TBT Agreement.  
3 Trade Policies and Practices by Measures  
3.1 Measures Directly Affecting Imports and 3.1.8 Standards and other technical 
requirements  
Page 32,  paragraph 3.44 
The Secretariat report notes that technical regulations and conformity assessment procedures may 
be embodied in statutes passed by Parliament, or in subsidiary legislation made by the executive.  
Under the Consumer Protection Act, the Minister of Commerce, Industry, Labour and Immigration 
can regulate "product safety or quality standards for any specified kind of goods. " Measures 
adopted under this provision may include requirements relating to perform ance, composition, 
design, packaging, marking and labelling, processing method, and testing.  
Question 13  
Could Solomon Islands explain how the standards referenced in statutes passed by Parliament are 
developed?  To what extent are the standards based on av ailable international standards?   
The Consumer Protection Act 1995 contains the legislation covering the standards that 
need to be complied with. In developing the standards, there are clauses contained in 
the Act that set out the requirements that are to be met in order for the standards to be 
approved. The Consumer Protection Act is outdated and should be reviewed and 
updated, which the Consumer Affairs Division within the Ministry of Commerce, 
Investment, Labour and Immigration is currently seeking suppo rt for.  WT/TPR/M/ 349/Add.1  
 
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Question 14  
Does Solomon Islands require its regulators to conduct a regulatory impact assessment when they 
are considering drafting new regulations or conformity assessment to be included in statues 
passed by Parliament?  Are trade impacts conside red in the assessment?  
In general, Solomon Islands requires that its regulators conduct regulatory impact 
assessment through formal consultations with stakeholders prior to drafting new or 
amending regulations. Within these consultations, trade impacts are  considered and 
incorporated where necessary.  
Related specifically to the issue of standards and consumer protection, the competent 
authority responsible, the Consumer Affairs Division, would like to pursue a review of 
the current Act (1995), however due t o funding constraints are yet to fulfil this. Any 
revision to the regulations would be initiated by a complete assessment by all relevant 
stakeholders, including colleagues in the Ministry of Foreign Affairs and External Trade.  
3 Trade Policies and Practic es by Measures  
3.3 Measures Affecting Production and Trade  
3.3.4 Government procurement  
Page 37,  paragraph 3.85 
The Secretariat Report notes that: "… Solomon Islands is not a party or observer to the 
Government Procurement Agreement. … "  
Question 15  
Do the  Solomon Islands have any plans to become a party or an observer to the WTO GPA?  
Solomon Islands has no immediate plans to become a party or observer to the WTO GPA 
or make any commitments relating to government procurement in any regional trade 
agreement.   
Trade Policy Review Report by Solomon Islands (WT /TPR/G/349)  
2 Trade and Trade Related Policies  
2.5 Competition Policy  
Page 8,  paragraph 2.7 
Liberalisation and ensuing competition are recognised as key drivers of growth by Solomon 
Islands ' Government, wh ich along with the Asian Development Bank (ADB) is developing a 
comprehensive competition policy for Solomon Islands, to replace the former ad -hoc approach.  
Question 16  
Could you please provide more information on the development of a comprehensive competi tion 
policy framework with the ADB, including what types of competition policy measures are being 
considered (e.g. cartels, monopolistic practices, merger reviews)?  
As an initial assessment in preparation for the development of a comprehensive 
Competition Policy, a discussion paper has been finalised which considers the current 
competitive environment in Solomon Islands and provides further recommendations on 
the general areas which Solomon Islands Government may consider when developing 
the policy. The dra fting of the Competition Policy is still in its initial stages and the 
details on the types of measures required to capture the needs and capacities of the WT/TPR/M/ 349/Add.1  
 
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  country are yet to be fine -tuned. Further consultations are to be conducted early next 
year in order  to finalise the policy document in 2017.  WT/TPR/M/ 349/Add.1  
 
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3  CHINESE TAIPEI  
Trade Policy Review Report by the WTO Secretariat (WT/TPR/ S/349)  
2 Trade and Investment Regime  
2.2 Trade Policy Objectives and Formulation  
Page 17,  paragraph 2.9 
The National Development Strategy 20 16-2035 is Solomon Islands ' long-term economic policy 
document. The main policy objectives laid down in the Strategy are inclusive development and 
poverty alleviation. These are to be achieved through macroeconomic stability, containment of 
population grow th, and targeted social spending. The sources of growth are to be diversified, away 
from logging towards priority sectors such as mining, fishing, and tourism. Trade should increase 
by addressing supply -side constraints and taking advantage of opportunitie s in existing 
international agreements. Improving the environment for business, trade and private sector -led 
growth is also a key priority.  
Question 17  
What is Solomon Islands ' import -export trade strategy for the Asia -Pacific region in the "National 
Devel opment Strategy 2016 -2035"? 
Through South -South cooperation, the National Development Strategy 2016 -2035 
prioritises economic diplomacy in Solomon Islands ' foreign relations with the global 
community and specifically in reference to this question, the Asia -Pacific region. This 
engagement constitutes the international dimension of national objectives to ensure 
that mutual diplomatic and productive relations are built for trade development results. 
At this stage, Solomon Islands does not have a specific impor t-export strategy for the 
Asia-Pacific region.  
The National Development Strategy refers explicitly to the Trade Policy Framework 
2015, citing the policy recommendations contained therein as key to encouraging 
sustainable trade and investment and economic growth. In recognising the importance 
of the Asia -Pacific region in global trade, Solomon Islands intends to seek improved 
access to these markets, possibly through a joint Pacific strategy.  
2 Trade and Investment Regime  
2.3 Trade Agreements and Arrangemen ts 
2.3.2 Regional and preferential agreements  
Page 19 -20 (paragraph 2.3.2)  
Solomon Islands does not have any bilateral trade agreements. It is, however, party to several 
regional trade and economic cooperation arrangements: the Pacific Islands Forum, the P acific 
Agreement on Closer Economic Relations, the South Pacific Regional Trade and Economic 
Cooperation Agreement, the Melanesian Spearhead Group Trade Agreement and the Pacific Island 
Countries Trade Agreement.  
Question 18  
Solomon Islands ' has signed sev eral regional trade and economic cooperation arrangements, such 
as the Pacific Islands Forum, Melanesian Spearhead Group (MSG) Trade Agreement, SPARTECA, 
PICTA, and PACER; what are the substantial benefits of all these agreements?  
Solomon Islands, as an LD C, has gained from the regional and sub -regional mechanisms 
available through the Pacific Islands Forum and the Melanesia Spearhead Group, WT/TPR/M/ 349/Add.1  
 
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  including enhancement of economic and political governance and security throughout 
the region. These mechanisms have helped to increase the socio -economic and 
development prospects of Solomon Islands and expanded the market opportunities 
available.  
Through the Framework for Pacific Regionalism under PIFS Solomon Islands has 
received policy advice, capacity building, guid ance in trade negotiations and most 
recently of significance, access to development support such as the EDF10 which 
contributed to the development of the Solomon Islands Trade Policy Framework.  
Following the conclusion of various regional trade agreements,  Solomon Islands has 
gained preferential market access to 15 of the Forum Island Countries (FICs) which has 
promoted regional economic integration as an instrument for enhancing the 
participation of the FICs in international trade.  
Question 19  
Since Solom on Islands has signed a number of regional agreements, how does it avoid the so -
called "spaghetti -bowl effect " where agreements have overlapping members?  
Solomon Islands is not of the opinion that the regional agreements that have been 
signed, or are expec ted to be signed, are leading to the creation of this effect. It is 
envisaged that PACER Plus will replace SPARTECA; PICTA is purely a Forum Island 
Country trade agreement and MSG is a sub -regional trade agreement between 
Melanesian countries only.  
Solomon  Islands will continue to analyse the impact of those trade agreements to which 
it is a party and will reassess this position regularly to ensure that the overlapping 
effects are minimised.  WT/TPR/M/ 349/Add.1  
 
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4  EUROPEAN UNION  
Trade Policy Review Report by the WTO Secretariat (WT/TPR/ S/349)  
2 Trade and Investment Regime  
2.4 Investment Regime  
Paragraph 2.45 and 2.46, page 22  
According to the report, Solomon Islands ranks 87th on the World Banks 's Ease of Doing Business 
Index in 2015 (down from 85th in 2009). In 2015, the Governm ent commenced the development 
of a comprehensive National Corruption Strategy, the drafting of anticorruption legislation, and the 
establishment of an Independent Commission against Corruption.  
Question 20  
What is the state of play for the adoption of the  anticorruption legislation (already tabled in 
parliament) and the establishment of an Independent Commission against Corruption?  
The Anti -Corruption Bill and the Whistle Blower Bill were tabled in Parliament this year 
for the first reading and following f urther consultations the Prime Minister will re -table 
both Bills early next year. The Independent Commission against Corruption will only be 
established once the Anti -Corruption Bill becomes an Act of Parliament, as therein is its 
establishment.  
2 Trade an d Investment Regime and 3 Trade Policies and Practices by Measure  
2.1 General Framework  
Paragraph 2.8, page 17 and  
3.3.1 Incentives  
Paragraph 3.74, page 35  
According to the report, Constituency development funds (CDF) are provided to Members of 
Parliament to spend within their constituency for the purpose of helping constituents. In 2013, the 
Constituency Development Funds Act was amended to enhance transparency and accountability in 
the management of CDFs. The authorities indicate that additional legislati ve changes on CDFs are 
under preparation with a view to improving their governance. The CDF absorb an important part of 
public expenditure.  
Question 21  
The Constituency Development Funds (CDF) Amendment Act was enacted in 2013. Since then, 
CDF-related expe nditures have grown to more than 50% of the Solomon Islands development 
budget in the first 10 months of 2016. However, CDF Act implementing regulations which would 
ensure greater transparency and accountability have not yet been drafted. What are the Solo mon 
Islands Government 's plans in this respect?  
There is currently a draft of the CDF Regulations in place, and the Solomon Islands 
Government is committed to completing and enacting this legislation. The consultations 
on the CDF regulations coincide with the Public Finance Management (PFM) Act 2013 
consultations, which are being held at present to address some of the deficiencies in 
implementation so as to ensure effective delivery of ministerial budgets, greater 
transparency and accountability. The intend ed outcome is for both the CDF Regulations 
and the PFM Act to be improved and better implemented.  WT/TPR/M/ 349/Add.1  
 
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  3 Trade Policies and Practices by Measure  
3.1.6 Import prohibitions, restrictions, and licensing  
Paragraph 3.39, page 31 and Table 3.6  
According to the report , certain goods are subject to import licensing; however, Solomon Islands 
has not notified its import licensing procedures, nor has it answered the questionnaire on import 
licensing.  
Questions 22 -25 
Could Solomon Islands explain why it has never submitted its annual import licensing notification? 
Is there any capacity constraints? Should it be the case, has Solomon Islands asked for Technical 
Assistance to the WTO Secretariat? Could Solomon Islands give an overview of the main licensing 
procedures in place?  
Solomon Islands has not submitted its annual import licensing notification due 
principally to capacity constraints across the responsible agencies. Customs and Excise 
Division is aware of this requirement and will endeavour to coordinate with the relevant  
agencies in Solomon Islands to ensure that the notification is sent and the questionnaire 
on import licensing is submitted. Solomon Islands Customs and Excise Division has not 
asked for technical assistance from the WTO Secretariat for this particular iss ue, 
however would be looking to request this support to ensure our obligations are fulfilled.  
Solomon Islands does have import licensing requirements, information on which will be 
available on the Customs and Excise website in due course. Procedures for l icensing 
require the imported goods to be recorded in the ASYCUDA system, upon which any 
licensing requirements will be picked up. Whichever agency is responsible for the import 
licenses of the imported good in question will then process the paperwork and release 
the goods as appropriate. Each agency with import licensing requirements has its own 
set of procedures in place and they are responsible for enforcement. Solomon Islands 
Customs and Excise Division is working hard to comply with the WTO Trade Facil itation 
Agreement.  
3.3.3 State trading, state -owned enterprises and privatisation  
Paragraph 3.83, page 37  
As mentioned in the report, already in the context of the previous TPR of Solomon Islands, the 
authorities indicated that there were two state trading  enterprises in the sense of Article XVII of 
the GATT 1994: the Government Pharmacy, which has exclusive import rights on methylated 
spirits and ethyl alcohol, and the Commodities Export Marketing Authority (CEMA).  
Question 26  
In the absence of any notific ations of its STEs, could Solomon Islands clarify whether there have 
been any changes or whether the Government Pharmacy and the Commodities Export Marketing 
Authority are still the only two STEs in the sense of Art. XVII of the GATT?  
Solomon Islands is a ware that it has not yet notified the Working Party on State Trading 
Enterprises at the WTO in relation to its State Trading Enterprises. The Government 
Pharmacy is still an STE, however CEMA 's exclusive right to export commodities was 
written out of their  favour recently. The government has taken the decision to 
commercialise this process, with CEMA acting as the regulator for commodities.  WT/TPR/M/ 349/Add.1  
 
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3.3.5 Intellectual property rights  
Paragraph 3.96, page 39  
According to the report, the Government has been developi ng a national IP (Intellectual Property) 
strategy since 2014.  
Questions 27 -28 
Could the delegation of Solomon Islands clarify whether this national IP strategy includes the 
regulation of Geographical Indications?  
If so, when a legislative proposal on Geog raphical Indications will be published and/or in force?  
The Solomon Islands IP Strategy is still in draft form and is planned to be taken to 
Cabinet early 2017. Geographical Indications has been included in the draft strategy and 
a decision on whether it s hould be adopted will be made in the first year following 
implementation of the strategy whereby a high level steering group will be formed to 
further consult.  
4 Trade Policies by Sectors  
4.1.1 Agriculture  
Paragraph 4.4 page 41 and  
4.1.3 Forestry  
Paragrap h 4.22 page 44  
According to the report, the land tenure systems in Solomon Islands seem to be a major constraint 
for economic development. The authorities are of the view that the legislation is outdated, and in 
need of a thorough overhaul.  
Question 29  
Taking into account that 85% of the total land area is owned by communities in Solomon Islands 
and that land ownership does cause a number of constraints for foreign investors, could you clarify 
if any steps are envisaged for a reform in land ownership?  
It is widely recognised in Solomon Islands that the land tenure system does pose a 
major constraint to economic development. Clearly defined property rights are just one 
part of an effective institutional framework required to promote economic growth, a 
point well understood by the Solomon Islands Government.  
In the Solomon Islands National Development Strategy 2016 -2035, under objective one 
of creating sustained and inclusive economic growth, land reform has been identified as 
a step to achieving this objecti ve. Specifically, the report stresses the need for 
strengthening of land reform and other related programmes to encourage economic 
development in urban, rural and customary lands. In order to achieve this, the NDS 
states that the legislation related to lan ds will be reviewed, that awareness of 
customary land registration will be improved with landowners receiving more of the 
benefits from development. The Government recognises the need to encourage 
investment on customary land through proper identification and valuation of land type 
and the correct determination of financial shares, rewards and compensation.  WT/TPR/M/ 349/Add.1  
 
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  5  EUROPEAN UNION (FOLL OW UP QUESTIONS)  
Trade Policy Review Report by the WTO Secretariat (WT/TPR/ S/349)  
2 Trade and Investment Regime and 3 Trade Policie s and Practices by Measure  
2.1 General Framework  
Paragraph 2.8, page 17 and  
3.3.1 Incentives  
Paragraph 3.74, page 35  
According to the report, Constituency development funds (CDF) are provided to Members of 
Parliament to spend within their constituency for the purpose of helping constituents. In 2013, the 
Constituency Development Funds Act was amended to enhance transparency and accountability in 
the management of CDFs. The authorities indicate that additional legislative changes on CDFs are 
under preparatio n with a view to improving their governance. The CDF absorb an important part of 
public expenditure.  
Question 1  
Could Solomon Islands indicate of a timetable for the consultations/approval of the CDF 
Regulations?  
With reference to the previous response, co nsultations on the amendments to the Public 
Finance Management Act 2013 started recently indicating that the consultations on the 
CDF legislation, which are to be conducted in parallel, will begin in 2017. The exact 
dates will be approved by Cabinet in due  course.  
4 Trade Policies by Sectors  
4.1.1 Agriculture  
Paragraph 4.4 page 41 and  
4.1.3 Forestry  
Paragraph 4.22 , page 44  
According to the report, the land tenure systems in Solomon Islands seem to be a major constraint 
for economic development. The authori ties are of the view that the legislation is outdated, and in 
need of a thorough overhaul.  
Question 2  
Can the government of Solomon Islands confirm whether there is actually an ongoing land reform 
process to identify landowners, register land, and create an efficient land adjudicating tribunal? If 
not ongoing, when are such reforms planned to be implemented?  
The Land Reform Unit within the Ministry of Lands, Housing and Survey is responsible 
for overseeing the land reform process currently underway in Solo mon Islands. 
Consultations have started on the land reform process, however there is not yet a 
defined timeline for completion . WT/TPR/M/ 349/Add.1  
 
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6  NEW ZEALAND  
Trade Policy Review Report by the WTO Secretariat (WT/TPR/ S/349)  
Summary  
Page 5,  paragraph 5 
The Secretariat report  notes that since 2009 the Solomon Islands has not made any notifications 
to the WTO, including those required under the Agreement on Agriculture and TBT agreement.  
New Zealand would like to remind the Solomon Islands of the importance of these transparenc y 
obligations which give members insight into the Solomon Island 's domestic regulatory regime, 
provide exporters with certainty, and assists in the WTO negotiation process as members work to 
strengthen and enhance the multilateral trading system.  
Question  30 
Can the Solomon Islands please provide an update of when WTO members may expect to see the 
Solomon Islands fulfilling these notification obligations?    
Solomon Islands is truly committed to fulfilling its obligations as a Member of the WTO 
and fully un derstands that the notification process is a transparency exercise to enable 
other Members to appreciate the setup of the domestic regulatory regime in Solomon 
Islands. It is pertinent to mention that Solomon Islands submitted its notification on 
Customs V aluation in October 2016, unfortunately slightly after the deadline for the 
submission of the Trade Policy Review reports.  
We realise, however, that there are still a number of notifications still to be made and 
whilst keeping in mind the resource constra ints faced in the Ministry of Foreign Affairs 
and External Trade, the Ministry responsible for submitting WTO notifications, rest 
assured that Solomon Islands will do its utmost to fulfil these notification obligations in 
due course.  
2 Trade and Investment  Regime  
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
Page 18, paragraphs 2.17 and 2.18  
"Solomon Islands is not a signatory to any of the WTO pluri -lateral trade agreements. It has yet to 
ratify the Trade Facilitation Agreement "….. 
"In February 2016, Sol omon Islands notified its category A commitments under the Trade 
Facilitation Agreement "…. 
New Zealand very much appreciates Solomon Islands ' action regarding the category A notification 
under the WTO Trade Facilitation Agreement.  
Question 31  
Could Solomo n Islands briefly outline its plan for implementation of category B and category C 
provisions of the WTO Facilitation Agreement?  
Solomon Islands wishes to thank the New Zealand Government for their appreciation of 
our notification of Category A commitments  under the Trade Facilitation Agreement and 
provide assurance that the categorisation for the remaining articles is near completion. 
Once the remaining articles have been assigned a category, and following endorsement WT/TPR/M/ 349/Add.1  
 
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  of the Agreement by Cabinet, Solomon I slands will seek to deposit its instrument of 
acceptance of the TFA at the WTO.  
For those articles assigned Category B and C, the relevant agencies are putting in place 
a work plan to ensure compliance is reached by the stated deadline for LDCs. As part o f 
this, Solomon Islands is in the process of identifying areas of technical assistance and 
capacity building support which it will require for its Category C articles. The delegation 
would like to note that the New Zealand High Commission in Honiara kindly  presented to 
the Solomon Islands ' National Trade Facilitation Committee in April 2016 on the types of 
technical assistance currently provided by the New Zealand Government which could fit 
into the category of trade facilitation support. We fully appreciat e the support of the 
New Zealand Government thus far and will continue to use this communication channel 
going forward once technical assistance needs for Category C articles have been 
finalised. The Trade Facilitation Agreement is an area of high priority  for the Solomon 
Islands, given the benefits that are anticipated.  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.2 Customs valuation  
Page 24,  paragraph 3.13 
"In practice, reference prices are still applied for a lar ge number of goods. These include: 
numerous consumer goods, electrical hardware, vehicles and automotive products, boats and parts 
thereof, and containers. The authorities indicate that under -invoicing is particularly frequent for 
equipment imports in the logging industry. " 
Question 32  
Noting Article 7 of the Agreement on Implementation of Article VII of the General Agreement 
Tariffs and Trade 1994, could Solomon Islands elaborate on as to whether the reference prices 
used are merely for risk management pur poses or as a basis to set a minimum Customs value for 
imported goods?  
Solomon Islands Customs and Excise, where possible, uses transaction prices in 
compliance with Article VII of the Agreement on the Implementation of GATT. Where it 
is not possible to us e transaction prices, reference prices are used. The use of reference 
prices is typically when dealing with non -compliant industries and thus for risk 
management purposes. Customs modernisation and the updated Customs legislation is 
seeking to address the issue of noncompliance to bring Solomon Islands in line with 
WTO obligations.  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.4 Tariffs  
3.1.4.2 Tariff Bindings  
Page 27,  paragraph 3.25 
Paragraph 3.25 of the Secretariat report notes that '[f]or 58 tariff lines… applied rates exceed their 
bindings (Table 3.3) ' and that 'for 28 tariff lines for which ad valorem equivalents were not made 
available, applied tariffs may exceed bindings (Table 3.4). '   WT/TPR/M/ 349/Add.1  
 
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Question 33  
Can Solomon I sland outline what action it intends to take to bring the applied rates for 58 tariff 
lines that currently exceed WTO bindings, in line with their bound rates?  If Solomon Islands does 
not intend to take any action, why not?  
Solomon Islands is aware that 58  tariff lines currently exceed WTO bindings and is fully 
committed to bringing those into line with WTO obligations. Customs and Excise 
Division, with support from Australian Aid, have been focusing on a Customs 
modernisation programme which has reviewed a nd updated the Customs legislation, 
implemented ASYCUDA World and upgraded the HS system to 2012. Given capacity and 
resource constraints, the above priorities have prevented Customs from bringing the 58 
tariff lines in line to date, however, Solomon Islan ds will endeavour to address this issue 
imminently.  
Question 34  
Can Solomon Islands provide assurances that the applied rates for the 28 tariff lines for which ad 
valorem equivalents were not made available do not exceed their WTO bound rate?  
Solomon Islan ds Customs and Excise Division has indicated that the applied rates for the 
28 tariff lines for which ad v alorem equivalents were not made available do not exceed 
their WTO bound rates. Solomon Islands is committed to tax reform and should any 
further tari ff lines be found to be not in compliance with the WTO bound rates, 
authorities have expressed their commitment to addressing these, along with the 
identified 58 tariff lines.  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Import s 
3.1.8 Standards and other technical requirements  
Page 31,  paragraph 3.46 
Paragraph 3.46 of the Secretariat report notes that "Legislation governing the adoption of 
subsidiary legislation does not contemplate public comment or WTO notification of draft 
measures. " 
Question 35  
How does Solomon Islands ensure its WTO transparency and notification obligations are met with 
respect to legislation governing the adoption of subsidiary legislation, when it does not 
contemplate WTO notification of draft measures?  
As an LDC, Solomon Islands faces considerable capacity and resource constraints, 
particularly so for the Department of External Trade within the Ministry of Foreign 
Affairs and External Trade, which is responsible for WTO notifications. The small team in 
the trade department is responsible for all aspects of external trade, from trade 
negotiations to setting and implementing trade policy. There is no dedicated team 
responsible for submitting notifications to the WTO on domestic legislation. Solomon 
Islands r ecognises that by not notifying the WTO, we are not in compliance with our 
obligations as WTO Members and as such, will seek to improve our performance in 
notifications over the coming years.   WT/TPR/M/ 349/Add.1  
 
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  4 Trade Policies by Sectors  
4.2 Mining and Energy  
4.2.2 Energy  
4.2.2.1 Electricity  
Page 46,  paragraph 4.39 
Paragraph 4.39 states there are opportunities for further development of renewable energy in 
Solomon Islands.  
Question 36  
Noting the Solomon Islands impressive commitment to promoting renewable energy, and 
ultimately reducing dependencies on oil, has the Solomon Islands considered pledging its support 
to the Friends of Fossil Fuel Subsidy Reform communique? The Communique calls for policy 
transparency, ambitious reform, and targeted support (for those who need it ) to phase out 
inefficient fossil fuel subsidies.  
Solomon Islands wishes to thank New Zealand for its words of encouragement in 
relation to our commitment to the promotion of renewable energy, in order to reduce 
our dependency on oil. Solomon Islands is c onsidering pledging its support to Friends of 
Fossil Fuel Subsidy Reform communique and we are currently implementing energy 
conservation and efficiency initiatives that are also in line with this mandate.  
Trade Policy Review Report by Solomon Islands (WT /TPR/G/349)  
3 Trade Negotiations and Relationships  
3.3 Multilateral Trading Arrangements under the WTO  
3.3.1 Aid for Trade  
Paragraph 4.39 states that "there remains substantial room for improvement, demonstrated by the 
outstanding recommendations of the DTI S and TPF. "  
Question 37  
It would be useful to know what actions or programmes they have planned to address these 
outstanding issues.  
In order to address the outstanding recommendations in the DTIS and TPF, Solomon 
Islands Government, through the National Trade Development Council, is committed to 
working with our development partners in country to deliver on these priority 
objectives. As has been identified previously, Solomon Islands faces significant 
constraints due to lack of trade related infrastructur e. Programmes to upgrade roads, 
bridges and domestic airports have been identified; as well as projects to bring Solomon 
Islands into compliance with the WTO Trade Facilitation Agreement, once ratification 
has taken place. Specifically, infrastructure for biosecurity and environmental health is 
required so that goods can be stored, tested and detained appropriately; as well as 
support to upgrade systems to be able to process trade transactions more efficiently.  
In addition, Solomon Islands has identified a number of discrete tasks for which it will 
receive support for in 2017, including developing trade data collection, analysis and 
dissemination capacities; developing a monitoring and evaluation framework to track 
progress against our key policy objectives;  and support to further develop a 
communications policy for external trade.  WT/TPR/M/ 349/Add.1  
 
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Solomon Islands is committed to delivering on the policy recommendations outlined in 
our trade policy documents and will target programmes of support to these areas 
appropriately.  WT/TPR/M/ 349/Add.1  
 
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  7  THAILAND  
Trade Policy Review Report by the WTO Secretariat (WT/TPR/ S/349)  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.4 Tariffs  
3.1.4.1 Applied MFN Tariffs  
Page 25, paragraph 3.20  
The tariff schedule comprises 5,5 12 tariff lines at the eight -digit level (Table 3.1). The tariff 
nomenclature is based on the Harmonised Commodity Description and Coding System (HS 2012). 
Non-ad valorem tariff rates are applied on 1.7% of all tariff lines, including wine, spirits, fuels,  
explosives, cinematographic film, video tapes, and goods subject to excise tax (Section 3.1.5 
below). The simple average applied MFN rate increased slightly during the review period, from 
9.1% in 2009 to 9.3% in 2016. Solomon Islands does not apply season al or variable tariffs, or 
tariff quotas.  
Question 38   
What were the reasons that the simple average applied MFN rate has increased during the review 
period, from 9.1% in 2009 to 9.3% in 2016.  
Solomon Islands has  100% biding coverage at 80 %. The applied r ate is significantly 
below this despite the slight increase, which we could attribute to an increase in the 
tariff applied to some luxury goods. Import tariffs can be increased for environmental or 
health related reasons.  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.4 Tariffs  
3.1.4.2 Tariffs bindings  
Page 27,  paragraph 3.25 
In general, applied tariff rates are well below their bound rates. For 58 tariff lines, however, 
applied rates exceed their bindings (Table 3.3).  Furthermore, for 28 tariff lines for which ad 
valorem equivalents were not made available, applied tariffs may exceed bindings (Table 3.4).  
Question 39   
Applied tariff rates should not exceed bound rates, please explain the necessities for these 
exceeding  rates. In addition, please explain why 28 tariff lines in which ad valorem equivalents 
were not made available (applied tariffs may exceed bindings).  
Solomon Islands is aware that for 58 tariff lines applied rates exceed their bindings. This 
issue has bee n raised with the relevant agencies and work is planned in the short term 
to address these discrepancies. It is worth reiterating that Solomon Islands faces 
considerable technical and capacity constraints, especially in Customs administration. 
Work has bee n underway for a number of years to modernise customs facilitation and 
processes, specifically to update the Customs legislation, implement the ASYCUDA World 
system and upgrade from HS2002 to HS2012. This work has taken precedence. WT/TPR/M/ 349/Add.1  
 
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However, Solomon Islands  recognise the importance of compliance with our WTO bound 
commitments and will endeavour to address this issue.  
4 Trade Policies by Sector  
4.2 Mining and Energy  
4.2.1 Mining  
Page 45,  paragraph 4.34 
The Mines and Minerals Act 1990 is the main law governing  mining activities in Solomon Islands. It 
vests the ownership of minerals in "the people and the Government of Solomon Islands ". Any 
business wishing to carry out any of the activities under the Act must obtain the approval of the 
relevant landowners. The MMERE may order that land be compulsorily acquired for the purpose of 
mining. In accordance with the legislation, a permit from the Department of Mines and Energy is 
required prior to engaging in any prospecting and mining activity. Permits can take the fo rm of a 
reconnaissance permit, a prospecting licence, or a mining lease. Permit applications are processed 
by the Minerals Board, which is composed of representatives of the central and relevant provincial 
governments, and landowners. The Minerals Board de termines the scope and duration of permits, 
and the obligations of permit holders.  
Question 40  
According to the Solomon Islands Trade Policy Review done by WTO secretariat WT/TPR/S/349 
page 45 paragraph 4.34 on Permits particularly scope and duration of p ermits determined by the 
Mineral Board, please clarify that whether Solomon Islands has any specific criteria or regulation 
for the Mineral Board in order to determine the scope and duration of those permits.  
The Mineral Board determines scope and duration  of permits in accordance with the 
Mines and Minerals Act and Regulation and the development aspirations of Solomon 
Islands.  
4 Trade Policies by Sector  
4.3 Services  
4.3.4 Transport  
4.3.4.1 Maritime transport and ports  
Page 53,  paragraph 4.89 
Another notabl e reform during the review period was the introduction of a franchise shipping 
scheme. Launched in 2010 under the Domestic Maritime Support Project, the franchise shipping 
scheme awards franchises for the provision of shipping services to remote areas that  are 
considered not commercially viable. Under the scheme, the Government provides subsidies to 
private sector operators to run safe and regular services to these areas. Franchised routes are 
selected based on several criteria including: the distance from the capital city; confirmation by 
stakeholders that the route is socially and economically desirable; and the route possessing a 
history of subsidised calls. On the franchised routes, operators are required to provide a specific 
number of voyages during th e contract period (generally between one and two voyages per 
month). There are currently 8 shipping routes under the program. The program was initially 
funded by donors, and the Government is to take over the funding of the program, starting in 
mid-2016. S ubsidies are to be reduced gradually to zero over a period of five to ten years. An 
assessment of the scheme is under way.  
Question 41  
According to the Solomon Islands Trade Policy Review done by WTO secretariat WT/TPR/S/349 
page 54 , paragraph 4.89 on fr anchised routes particularly subsidies to private sector operators to WT/TPR/M/ 349/Add.1  
 
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  run safe and regular services within franchised routes under the scheme, does Solomon Islands 
have any plan to amend the number of franchised routes under the scheme? For the qualificati on 
of private sector operators in order to receive the government subsidies, this also includes foreign 
operators?  
Currently there are eight uneconomical routes in the country and it is the government 's 
expectation that the number will reduce in the coming  years. At this stage, however, it 
is too early to anticipate whether this number will be amended. A review carried out in 
2015 gave some indication that some of these routes will become economical in the 
future but no date has been identified as yet.  
The scheme is open to international operators provided they carry the Solomon Islands ' 
flag and that their business registration is in Solomon Islands.  
Page 54,  paragraph 4.92 
Passenger cabotage is reserved for domestic flag vessels. Under the Shipping Act 199 8, domestic 
flag vessels must be wholly owned by Solomon Islands citizens or corporations with their principal 
place of business in Solomon Islands. Although there are no statutory restrictions on the provision 
of cargo cabotage by foreign flag vessels, in  practice only domestic flag vessels are allowed to 
provide this service.  
Question 42  
Regarding the cabotage in Solomon Islands ' Trade Policy Review done by WTO secretariat 
WT/TPR/S/349 page 54 , paragraph 4.92 particularly on cargo cabotage which stated that there are 
no statutory restrictions on the provision of cargo cabotage by foreign flag vessels, in practice only 
domestic flag vessels are allowed to provide this service, Thailand would like to seek for 
clarification on the reason that Solomon Island s only allow domestic flag vessels to provide this 
service. Does the concerned authority plan to review current practice and to issue rules or 
regulations to be consistent with current practice?  
Cabotage reserves all Solomon Islands domestic cargo for Solo mon Islands flagged 
ships. Under the revised draft Shipping Act, which is yet to be passed, there is a section 
on "bare-boat" chartering vessels, which works together with cabotage. This allows a 
Solomon Islander to "bare-boat" charter a foreign owned vess el and put it under the 
Solomon Islands flag while it is on charter, so it can then lift "cabotage " cargo.  
There is no explicit reference to the ability of non -domestically flagged vessels to carry 
cargo cabotage in the current legislation and as there is no fundamental National 
Maritime Transport Policy to interpret the law and lay down the policy it is difficult to 
provide a concrete response. From an economic point of view, it would not make sense 
for a foreign person to bring a vessel to Solomon Islands  to coastal trade it. Further, if 
the vessel came from another country, it would presumably be carrying goods from that 
country, which would be classified as international cargo and therefore not cabotage 
cargo.  
There are, at present, now plans to review current practice with regards to this issue.  WT/TPR/M/ 349/Add.1  
 
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1 Economic Environment  
1.7 Foreign Direct Investment  
Page 15,  paragraph 1.21 
FDI flows in Solomon Islands have been relatively low and on a declining trend. According to 
UNCTAD 's 2015 World Investment Report24, FDI inflows were US$24 million in 2014, down from 
US$238 million in 2010. FDI stock was estimated at US$781 million in 2014, compared to an 
estimate of US$106 million in 2000. Outward FDI flows are marginal. The main sources of FDI 
inflows are Australia, M alaysia and China, with the main investment sectors being other services, 
forestry, wholesale, mining, tourism, fisheries, transport/communication and construction.  
Question 43  
Since there has been a declining trend on FDI inflows in Solomon Islands, will  there be any 
investment promotion schemes e.g. tax or non -tax holidays to boost inward investment?  
The declining trend in FDI flows is as a result of a reduction in logging licenses being 
granted by the Solomon Islands, and as this sector is a large cont ributor to overall FDI 
inflows, this has caused the reduction referred to. Solomon Islands has sought to attract 
investment in other sectors to counteract the decline, which it has done by improving 
the processes of investment registration, such as the onl ine business registry facility 
launched in November 2016 and the streamlining of company registrations. A number of 
tax incentives are offered in key sectors, including agriculture, tourism and fisheries. 
The Solomon Islands Government is also developing a  special economic zone policy and 
legislation, to incentivise investment in a strategic geographical location.  
2 Trade and Investment Regime  
2.4 Investment Regime  
Page 21,  paragraph 2.38 
Pursuant to the Foreign Investment Regulations, 14 activities are res erved for Solomon Islands 
nationals: 1) cultivating plant crops exclusively for sale on the domestic market; 2) timber milling 
operations producing not more than 2,500 m3 of sawn timber per year; 3) retail trading of 
household goods and services on premise s with an area of less than 200 m2; 4) producing 
handcrafts and cultural artefacts; 5) operating buses, taxis and hire car services; 6) breeding of 
livestock for sale on the domestic market; 7) gathering of wild forest products for sale on the 
domestic mar ket; 8) offering laundry services without being part of a hotel; 9) operating 
restaurants, cafes and other eating and drinking businesses other than specialty businesses, and 
operating within an area of less than 25 m2; 10) market vending and operating roa dside stalls; 
11) domestic help services; 12) static guarding services for offices and domestic dwellings with 
employment of less than 20 employees; 13) office and lawn cleaning services not associated with 
hotels; and 14) working as a customs clearing age nt.  
Question 44  
For the 14 activities reserved for Solomon Islands nationals, please clarify whether foreign 
investors are allowed to hold a minority share in a limited company? And will there be a future 
liberalisation in these reserved sectors?  
For the  fourteen activities reserved for Solomon Islands nationals, foreign investors are 
not allowed to hold a minority share in the company. The requirement is for the 
company to be 100 % locally owned. A review of the sectors included in the Reserved 
List is ca rried out every two years and decisions on amendments to the list are made 
accordingly.  WT/TPR/M/ 349/Add.1  
 
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  4 Trade Policies by Sector  
4.2 Mining and Energy  
4.2.3 Manufacturing  
Page 48,  paragraph 4.50 
Under the Protected Industries Act of 1954, the authorities may issue an or der limiting entry by 
new firms into industries whose development is deemed to be in the public interest.  The legislation 
permits the granting of orders to restrict imports that may affect particular industries. The 
authorities state that there is no such order currently in force.  
Question 45  
What is the authorised agency that issues an order limiting entry by new firms into industries 
whose development is deemed to be in the public interest?  
Under the Protected Industries Act, the Minister of Commerce, I nvestment, Labour and 
Immigration is responsible for issuing an order to limit entry by new firms into 
industries where there is already an incumbent local industry operating which is in the 
infant stages and therefore needs to be protected from competitio n for a limited period 
of time. There is nothing in the Act which relates to industries being protected that are 
deemed to be in the 'public interest ', however that may be defined.  
Question 46  
What are the industrial sectors that the Government of Solomo n Islands considers to be the 
particular industries?  
The Protected Industries Act lists the nature of industries which Solomon Islands 
Government has chosen to limit the entry of new firms.  
Question 47  
What are the criteria or factors that the Government of Solomon Islands considers to give effects 
to particular industries?   
The Protected Industries Act is outdated and needs to be reviewed and revised. It is the 
intention of the current government to implement a National Industrial Policy which will 
set o ut the rationale for the decision to protect certain industries. The development of 
the policy will then lead to a revision of the Act. The Ministry of Commerce, Investment, 
Labour and Immigration has identified the need for technical assistance in order t o draft 
the industrial strategy policy and amend the legislation.  
Trade Policy Review Report by Solomon Islands (WT /TPR/G/349)  
1 Economic Environment  
1.11 LDC Graduation  
Page 6,  paragraph 1.23 
In 2015, Solomon Islands met two thresholds for Least Develope d Country graduation; per capita 
income, by 13% and human assets, by 9%. Subsequently, impact assessments to determine the 
vulnerability profile of Solomon Islands will be undertaken. Following which, if in March 2018 
Solomon Islands again meets two of the  three graduation thresholds, it will in principle be found 
eligible for graduation, pending endorsement from United Nations ' Economic and Social Council 
(ECOSOC). Following endorsement of eligibility, Solomon Islands would typically be given three WT/TPR/M/ 349/Add.1  
 
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years u ntil it officially graduates, at the end of 2021/22. This will depend to a certain extent on 
continued progress against the identified indicators  
Question 48  
As Solomon Islands is moving toward the graduation from LDC, what are the plans for 
restructuring  trade policies on the WTO negotiations.  
There are, at this time, no plans in place to restructure trade policies on the WTO 
negotiations, given the Solomon Islands ' potential graduation from LDC status.  WT/TPR/M/ 349/Add.1  
 
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  8  THAILAND (ADDITIONAL  QUESTIONS)  
Trade Policy Revie w Report by the WTO Secretariat (WT/TPR/ S/349)  
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.2 Competition policy and price controls  
Page 36, paragraph 3.76  
Solomon Islands does not have a generic competition law . Various statutory provisions relating to 
competition policy are laid down in the Consumer Protection Act of 1990, the Price Control Act of 
1982, the Price Control Order of 2011, and the Telecommunications Act of 2009. There is no active 
enforcement of th e few provisions designed to prevent anti -competitive business practices. 
Although the authorities have been considering introducing new legislation for a long time, there 
have been no concrete steps to strengthen the legal framework on competition policy since the 
last TPR. The authorities also note that monopolies are widespread, partly reflecting the small size 
of the Solomon Islands market.  
Question 3   
Does Solomon Islands have any plan to unify related laws in order to be the National Competition 
Law? 
Solomon Islands is currently in the process of reviewing all of its competition related 
laws in order to update the relevant legislation. The Consumer Affairs and Price Control 
Division within the Ministry of Commerce, Investment, Labour and Immigration ( MCILI) 
administers three pieces of legislation, specifically the Price Control Act, Weights and 
Measures Act and the Consumer Protection Act. It is anticipated that these three pieces 
of legislation will be merged under the proposed competition policy legi slation. Further 
consultations on the revised competition policy are to be conducted in 2017 with a view 
to finalising the legislation in the coming year.  
Page 36, paragraph 3.79  
Price controls may be established through ministerial orders issued under th e Price Control Act. 
They mainly apply to various staples as a means to address competition perceived as being too 
low. Price controls may apply only to specific areas of Solomon Islands. Draft price control orders 
must be sent to Parliament, which may ann ul them, through resolution, within 20 days. Maximum 
prices are based on a mark -up system which allows traders to add a certain percentage on landed 
costs plus goods tax.  
Question 4  
Please describe the criteria to set up a certain percentage that Solomon  Islands allow traders to 
add on landed costs plus goods tax.  
The Price Control Act sets out the approved mark -up rates which can be applied in the 
different provinces of Solomon Islands, as well as the goods to which the Act applies 
and the limits within which the price restrictions will apply. The approved mark -up 
prices are distinguished between local purchases and direct imports and maximum 
percentages are provided for both wholesale and retail sales across the provinces. For 
petroleum products and Solt una products, fixed prices operate, which are set by the 
Consumer Affairs and Price Control Division in collaboration with the relevant 
organisations operating in the sector. The Price Advisory Committee must approve any 
changes before the Minister respons ible can amend the prices as set out in the 
legislation.  WT/TPR/M/ 349/Add.1  
 
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Trade Policy Review Report by Solomon Islands (WT /TPR/G/349)  
2 Trade and Trade Related Policies  
2.5 Competition Policy  
Page 8,  paragraph 2.7 
As trade expands and Solomon Islands integrates further in to the global architecture, an efficient 
competition framework is necessary to secure the interests of consumers and producers, ensure 
non-discrimination of foreign companies in the domestic economy and the efficient allocation of 
resources to incentivise innovation. Liberalisation and ensuing competition are recognised as key 
drivers of growth by the Solomon Islands' Government, which along with the Asian Development 
Bank (ADB) is developing a comprehensive competition policy for Solomon Islands, to replac e the 
former ad -hoc approach.  
Question 5  
Please describe an efficient competition framework that can ensure non -discrimination of foreign 
companies in Solomon Islands.  
Solomon Islands is committed to establishing an effective competition framework to 
ensure lower prices for consumers, greater levels of investment, enhanced product 
variety and quality and innovation.  
Solomon Islands is currently in the process of drafting a revised Competition Policy 
document to strengthen the competition framework in the domestic economy. The 
revised policy will seek to address a range of issues including collusion, price 
discrimination, monopoly and abuse of market power and predatory pricing, as well as 
regulated industries.  The relevant authorities intend to address th ose issues that affect 
Solomon Island consumers initially, whilst other areas, such as ensuring that foreign 
companies are not discriminated against, will be addressed subsequently. Further, 
Solomon Islands does have legislation in place that sets out how foreign companies are 
treated in the domestic economy; namely, the Foreign Investment Act.  
 WT/TPR/M/ 349/Add.1  
 
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  9  UNITED STATES OF AME RICA  
Trade Policy Review Report by the WTO Secretariat (WT/TPR/ S/349)  
1 Economic Environment  
1.6 Trade Performance  
Page 38,  paragraph 1.18 
Ques tion 49  
The Secretariat report notes a significant discrepancy between official recorded log exports and 
imports as reported by some trading partners, citing exports to China in particular.   What does the 
Solomon Islands think is the reason for this discre pancy, and does it have any efforts underway to 
address it?  
The discrepancy between the official recorded log exports and the imports reported by 
some key trading partners, notably China, is partially because the export revenue 
generated is based on the de termined value of the logs, which is below the world 
market prices for the species exported. The determined value is set by the Ministry of 
Finance and Treasury. The logs are then sold at the world market price which is then 
recorded by trading partners. T he difference between the determined value and the 
world market price accounts to some extent for the discrepancy.  
Further reasons for the discrepancy include the delay between when shipments are sent 
and when they arrive in the recipient country. This co uld impact the data if the shipment 
was at the end of the year. The Ministry of Finance and Treasury is aware of this issue 
and there are plans in place to address and improve the compliance around the export of 
logs so that more of the revenue can be kept  in Solomon Islands.  
2 Trade and Investment Regime  
2.3 Trade Agreements and Arrangements  
2.3.1 WTO  
Page 18,  paragraph 2.17 
Question 50  
The Secretariat report notes that Solomon Islands has yet to ratify the WTO Trade Facilitation 
Agreement (TFA). Can the G overnment of the Solomon Islands provide an update on when it plans 
to ratify the TFA?  
In February 2016, the Solomon Islands notified the WTO of its Category A commitments 
under the Trade Facilitation Agreement. Since then, Solomon Islands has been working  
assiduously to categorise each of the articles, identify the timeline for compliance and 
the technical assistance and capacity building support required. The TFA is currently 
with the Attorney General 's Office for formal vetting following which it will be  submitted 
to Cabinet for approval. The National Trade Facilitation Committee (NTFC) of Solomon 
Islands, established in November 2015, is working very hard to ensure that Solomon 
Islands is ready to ratify the Agreement; which is expected to occur next yea r. WT/TPR/M/ 349/Add.1  
 
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2 Trade and Investment Regime  
2.4 Investment Regime  
Page 20,  paragraph 2.34 
Question 51  
The Secretariat report notes that the SIG recognises that foreign direct investment can make an 
important contribution to development, productivity and employment, a nd is currently preparing 
an investment policy document.   What particular investment -related issues is the policy document 
expected to address to make the Solomon Islands more attractive to foreign investors?  Will those 
include any measures to facilitate t he purchase or lease of land by foreign investors, an issue often 
cited as a key challenge by potential foreign investors?  
The Investment Policy document is aiming to address the issues surrounding investment 
in Solomon Islands and make the process of regi stering and setting up a business much 
more straightforward. Solomon Islands online business registry has been set up which 
has streamlined registrations and created an easy to use website where all information 
on business ownership can be located. Measure s to facilitate the lease of land by foreign 
investors have been highlighted in the National Development Strategy 2016 -2035. The 
report sets out the need to strengthen land reform and other related programmes to 
encourage economic development in urban, rur al and customary lands.  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures and requirements  
Page 23,  paragraph 1 
Question 52  
The Secretariat states that the Solomon Island authorities indicate that a new Customs Act is 
under preparation and that introduction to Parliament is expected for early 2017.  Please describe 
the process of the implementation of a new Customs Act and how this new act will potentially 
affect imports.  
The new Customs Act is curren tly with the Attorney General 's Offices for formal vetting, 
following which it will be tabled in parliament following public consultations. 
Subsequently, the Act will be endorsed by Cabinet and will be introduced in stages over 
a period of eighteen months to two years. The Asian Development Bank has been 
providing technical assistance support to prepare the revised Customs legislation; 
however that funding will not cover implementation. Customs and Excise require 
technical support to be able to implement th e new Act or face significant 
implementation risks.  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures and requirements  
Page 23,  paragraph 3.9 
Question 53  
The Secretariat notes that the Government of the Solomon Islands reports that decisions by 
Customs may be challenged administratively or judicially. Currently, the Secretariat reports there WT/TPR/M/ 349/Add.1  
 
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  is no formal process for administrative challenges, yet one is supposed to be included in new 
legislation. As t he Solomon Islands has not committed to publish its Procedures for Appeal or 
Review in either its WTO Trade Facilitation Agreement Category A or B commitments, can the 
Solomon Islands commit to publish at least the full process for customs appeals on the i nternet 
upon completion of the new legislation?  
The Solomon Islands is still in the process of finalising its notifications under the WTO 
Trade Facilitation Agreement and as an LDC is granted an additional year to confirm the 
categorisation of each article . The categorisation of the article containing publication of 
Procedures for Appeal or Review has therefore not been finalised. Solomon Islands 
views compliance with the WTO TFA as very important and is working tirelessly to 
comply with the Agreement 's mea sures. As mentioned previously, Solomon Islands 
intends to ratify the TFA in due course and will seek to identify development partners to 
provide technical assistance to enable us to reach compliance.  
Solomon Islands intends to publish the full process fo r appeals on the Customs and 
Excise website once the new legislation is complete.  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.2 Customs valuation  
Page 24,  paragraph 3.13 
Question 54  
The Secretariat notes that the Government of the Solomon Island uses reference prices for a large 
number of goods.  How is the use of reference prices in accordance with Article VII of the WTO 
Customs Valuation Agreement?  
Where it is possible for Solomon Islands to use the transaction va lue of the imported 
good, as allowed under Article VII of the WTO Customs Valuation Agreement, it will do 
so. If there is a problem with the transaction value, then Customs will use the 
alternative of identifying identical or similar goods with which to co mpare, and a 
database has been set up which lists the products and the most up to date price 
information available. Customs use reference prices typically due to the non -compliant 
environment in which the traders are operating in. This is particularly the case for the 
logging industry, which comprises a significant amount of Solomon Islands ' exports, 
where noncompliance is a serious issue. Thus, where it is possible to use transaction 
values, Customs and Excise do so, employing alternative methods where the  exported 
good demands it.  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.3 Rules of origin  
Page 24,  paragraph 3.14 
Question 55  
The Secretariat notes Solomon Islands applies preferential rules of origin that are not n otified to 
the WTO. When will the Government of the Solomon Islands notify its preferential rules of origin?  
As referenced to in paragraph s 3.15 and 3.16, Solomon Islands as a party to the MSGTA 
applies preferential rules of origin whereby goods must be 'wholly produced or obtained ' 
in the territory of a Party; or goods must be 'sufficiently worked ' in the territory of a 
Party for which a change of tariff heading (CTH) criteria is used in determining whether WT/TPR/M/ 349/Add.1  
 
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goods have been 'sufficiently worked ' through the  course of processing. Minimum 
processes which do not confer origin include the preservation of goods in good condition 
for the purposes of transport or storage; facilitate shipment or transportation; or re -
package or present the goods for sale.  
Under the  Pacific Island Countries Trade Agreement (PICTA), the rules of origin require 
the good to be either wholly produced or obtained; or is the result of the final process of 
manufacture performed in the territory of that party and the total expenditure on the  
originating material costs, labour costs and overhead costs is not less than 40% of the 
total expenditure.  
As mentioned in the WTO Secretariat report, paragraph 2.18, Solomon Islands believes 
that the rules of origin for MSG and PICTA have already been no tified.  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.4 Tariffs  
3.1.4.2 Tariff bindings  
Page 27,  paragraph 3.25 
Question 56  
The Secretariat report notes that for 58 tariff lines, applied rates exceed their bindings, and that 
for an additional 28 tariff lines, applied tariffs may exceed their bindings.  How does the Solomon 
Islands plan to bring these applied tariffs in line with its WTO bound commitments?  
Solomon Islands is aware that for 58 tariff lines applied rates  exceed their bindings. This 
issue has been raised with the relevant agencies and work is planned in the short term 
to address these discrepancies. It is worth reiterating that Solomon Islands faces 
considerable technical and capacity constraints, especial ly in Customs administration. 
Work has been underway for a number of years to modernise customs facilitation and 
processes, specifically to update the Customs legislation, implement the ASYCUDA World 
system and upgrade from HS2002 to HS2012. This work has taken precedence. 
However, Solomon Islands recognise the importance of compliance with our WTO bound 
commitments and will endeavour to address this issue.  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.5 Other duties and taxes  
Page 30,  paragraph 3.34 
Question 57  
Under GATT Article III:2, WTO Members must not apply internal taxes to imported goods in excess 
of those applied to like domestic goods. The Secretariat report notes that the goods tax is 15 % on 
imports and 10 % on domestically -produced goods.  Please explain this situation in the context of 
Article III:2 of GATT.  
Solomon Islands is aware that the goods tax on domestic and foreign goods is different, 
which is contrary to Article III: 2 of GATT. Solomon Islands ha s pledged to look into this 
discrepancy and seek to address the issue. We are working to reform the tax regime to 
address the discrepancy in  line with our development objectives.  WT/TPR/M/ 349/Add.1  
 
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  3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Im ports  
3.1.6 Import prohibitions, restrictions and licensing  
Page 31,  paragraph 3.39 
Question 58  
The Secretariat report notes that Solomon Islands has not notified its import licensing procedures, 
nor has it answered the questionnaire on import licensing. D oes Solomon Islands plan to notify its 
import licensing procedures?  How does Solomon Islands intend to meet this obligation?  
Solomon Islands plans to notify its import licensing procedures. Solomon Islands will be 
looking to receive technical assistance in  order to meet our obligation under the WTO 
Import Licensing Agreement.  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.8 Standards and other technical requirements  
Page 31,  paragraph 3.42 
Question 59  
While the Solomon  Islands Government has indicated is has not adopted legislation to implement 
the WTO Technical Barriers to Trade (TBT) Agreement obligations related to technical regulations, 
conformity assessment procedures, and standards, is the government seeking any t echnical 
assistance from the WTO, UNCTAD or other governments/institutions to assist in developing draft 
legislation on any of the requirements of the WTO TBT Agreement? If so, please describe.  
Solomon Islands does not have one overarching body which coord inates the different 
agencies that fall under the TBT Agreement, relying on assessments to be made on a 
product by product basis. In order to improve compliance and ultimately adopt and 
implement the TBT Agreement, the Solomon Islands Government would like  to seek 
technical support to set up and build the capacity of an assigned body, responsible for 
coordinating the relevant agencies, to ensure that we are in compliance with the 
Agreement. Technical assistance would also need to cover developing the draft 
legislation on the various requirements of the Agreement. Solomon Islands understands 
that other Members have a dedicated TBT office responsible for all aspects of the 
Agreement, whilst functioning as an inquiry point. Solomon Islands would like to set up 
a similar body to better facilitate information sharing and compliance processes.  
3 Trade Policies and Practices by Measure  
3.1 Measures Directly Affecting Imports  
3.1.9 Sanitary and phytosanitary requirements  
Page 32,  paragraph 3.48 
Question 60  
The Secre tariat states that the Solomon Islands has not notified any SPS measures to the WTO.  
Has the SIG not changed any of its SPS measures since joining the WTO, or is the SIG 
encountering any difficulties in meeting its notification obligations, such as capacit y, resources, or 
training?  WT/TPR/M/ 349/Add.1  
 
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Solomon Islands is aware that is has not yet notified its SPS measures but fully intends 
to do so in the coming year. Solomon Islands has recently passed new legislation on 
Biosecurity, which will be notified to the WTO in due c ourse. The responsibility for 
notification of obligations lies in the Ministry of Foreign Affairs and External Trade, 
which has significant capacity and resource constraints. Staff members have attended 
training on notification commitments in the past but there is no dedicated team 
responsible for coordinating the requirements of the WTO Agreement.  
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.3 State trading, state -owned enterprises, and privatisation  
Page 37,  paragraph 3.83 
Question 61  
The Secretariat 's Report indicates that Solomon Islands has not made any notifications regarding 
state trading enterprises (STEs) to the Working Party on State Trading Enterprises since it joined 
the WTO.   Please indicate when the required notifications will be made.  
Solomon Islands is aware that it has yet to make any notifications regarding state 
trading enterprises to the Working Party on State Trading Enterprises since joining the 
WTO. Officials are aware of this requirement and  the government is planning to make 
the necessary notifications in due course.  
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.4 Government  procurement  
Page 37,  paragraph 3.85 
Question 62  
The Secretariat report not es that Solomon Islands is neither an observer to, nor a member of, the 
WTO's Agreement on Government Procurement (GPA). Given that GPA observership provides 
opportunities to engage with GPA Members on government procurement issues more broadly 
without tak ing any obligations, while also providing a better understanding of the potential benefits 
of joining the agreement, has Solomon Islands considered requesting to become an observer to 
the GPA?  
Solomon Islands understands the benefits of the WTO 's Agreement  on Government 
Procurement however at this stage does not have any plans to request to become an 
observer to the GPA.  
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.5 Intellectual property rights  
Page 38,  paragrap h 3.93 
Question 63  
When will Solomon Islands plan to join the World Intellectual Property Organisation (WIPO)?  To 
which international IP treaties is Solomon Islands intending to accede?  Will the planned national IP WT/TPR/M/ 349/Add.1  
 
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  office bring together administration of c opyright with other areas of intellectual property or will it 
remain separate, currently handled by the Ministry of Culture and Tourism as opposed to the 
Registrar General?  
Solomon Islands Mission in Geneva is currently in discussion with WIPO on this issu e 
and we are hopeful to join in 2017, though no date can at present be given. Cabinet 's 
endorsement is first required as well as the finalisation of the Intellectual Property 
Strategy, to determine whether we need to accede to certain conventions prior to 
joining. The international IP strategies Solomon Islands is considering acceding to are 
WIPO and Berne Convention.  
The Ministry of Culture and Tourism will cover Traditional Knowledge and Registrar 
General 's Office in the Ministry of Justice and Legal Affa irs will cover the remaining 
areas. This is the situation as it currently stands.  
3 Trade Policies and Practices by Measure  
3.3 Measures Affecting Production and Trade  
3.3.5 Intellectual property rights  
Page 39,  paragraph 3.96 
Question 64  
What is the curre nt status of the national IP strategy, which has been in development since 2014?  
The National IP Strategy is currently in draft form and is undergoing national processes 
for finalisation and approval by necessary stakeholders.  
3 Trade Policies and Practice s by Measure  
3.3 Measures Affecting Production and Trade  
3.3.5 Intellectual property rights  
Page 39,  paragraph 3.98 
Question 65  
Approximately what  percent age of the 10 to 20 copyright registrations per year are made by 
foreign applicants from outside Solom on Islands?  
Upon further investigation of these figures, it transpires that the figure provided was 
erroneous, taken from a previous report published by Ministry of Justice which was later 
rescinded. Having confirmed with the Registrar General, Solomon Isl ands does not have 
a copyright registration facility and therefore no registrations were made by foreign 
applicants from outside Solomon Islands. We understand that according to the WTO 
Secretariat 's report, it identified 10 to 20  registrations and as such , we take 
responsibility for providing the figures in error. Solomon Islands will request that the 
Secretariat remove this reference in their report. Solomon Islands Government has 
indicated that the next priority will be to finalise the IP Strategy.  WT/TPR/M/ 349/Add.1  
 
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4 Trade Policies by Sector  
4.1 Agriculture, Fisheries, and Forestry  
4.1.3 Forestry  
Page 43,  paragraph 4.22 
Question 66  
The report notes the importance of logging as a major export and source of livelihood for a large 
proportion of the Solomon Islands populatio n, and that Solomon Islands forest resources could be 
completed depleted by 2020.  The report further notes indication of a strong prevalence of under -
declared or illegal logging.   Illegal logging and associated trade is a significant challenge facing the 
Asia-Pacific region, with adverse economic, environmental, and social impacts -- INTERPOL 
estimates that trade in illegal timber accounts for 10 -30% of all timber products traded globally.  
As a significant tropical timber producer, what steps is the SIG tak ing to combat illegal logging and 
ensure that its timber products are legally harvested and exported?  
With the introduction of ASYCUDA World, Customs and Excise in Solomon Islands is able 
to improve compliance through tracking and recording of data. Solom on Islands 
Government is committed to ensuring that the revenue obtained from timber products is 
filtered back into the domestic economy and spent on education and healthcare 
programmes, for example. However, the resources required to ensure that the timbe r is 
not harvested illegally are significant and beyond that which is available to us. Further, 
some of the logging companies operating in Solomon Islands avoid compliance 
measures in place leading to a significant difference between the price at which the  log 
is bought and sold on the world market. The Solomon Islands recognises that illegal 
logging is a significant problem and is currently working to improve its compliance 
measures in this sector.  
Trade Policy Review Report by Solomon Islands (WT /TPR/G/349) 
2 Trade and Trade Related Policies  
2.4 Intellectual Property  
Page 8,  paragraph 2.6 
Question 67  
The SIG report acknowledges that the Solomon Islands ' intellectual property laws are not in 
compliance with its obligations as a WTO member.  Will the legislat ive reforms currently under 
discussion that are referenced in the government report bring the Solomon Islands into compliance 
with its WTO obligations related to intellectual property?  
At this early stage of the discussion, Solomon Islands has not yet iden tified the ways in 
which it needs to improve its compliance in order to meet WTO obligations. However, 
one of the objectives of the draft IP strategy is to ensure Solomon Islands meets its 
international obligations. The current draft IP strategy will then identify what legislative 
changes need to be made in order to reach compliance. Solomon Islands is working to 
ensure that we reach compliance, however it must also be noted that faced with 
considerable resource constraints conformance is likely to take tim e. WT/TPR/M/ 349/Add.1  
 
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  2 Trade and Trade Related Policies  
2.6 Intellectual Property  
Page 8,  paragraph 2.6 
Question 68  
What is the status of the consultations on legislative reforms specifically for reform of the 1987 
Copyright Act?  What changes are currently anticipated to be  made to the copyright law via 
legislative reforms?  What is the expected timeline for reforming the copyright law?  Is there a 
planned order for addressing the reform of the various areas of intellectual property?  
The consultations on the legislative reform s, specifically Copyright Act indicate that the 
regulation is to be revised and updated. At this time, Solomon Islands is yet to conduct 
consultations on revising the Act; and the strategy which recommends revising the Act 
has only just been drafted. The u pdated Act is expected to be drafted within one year of 
implementing the IP Strategy, finalised within two years of implementing the IP 
Strategy and implemented within three years. As the IP Strategy is still in draft form, it 
is not possible to say at thi s point when the revised Copyright Act will be implemented. 
Within the IP Strategy, there is a draft implementation plan which details the key tasks 
to complete over the next five years with responsible agencies indicated.  
3 Trade Negotiations and Relation ships  
3.3 Multilateral Trading Arrangements under the WTO  
3.3.3 Fisheries subsidies  
Page 10, paragraph 3.12  
Question 69  
Please elaborate on the economic and environmental impacts of fisheries subsidies that the SIG 
has seen as a result of fisheries subsidi es provided by other WTO Members.  Additionally, does the 
SIG provide fisheries subsidies to its fishing industry?  If yes, please describe the type of assistance 
provided.  Has the SIG notified any such programs to the WTO Subsidies and Countervailing 
Measur es Committee?  
Due to the nature of the resource, identifying specific impacts economic and 
environmental impacts at the national level of fisheries subsidies provided by other WTO 
Members is a challenge. In discussing fisheries subsidies Solomon Islands co nsiders this 
issue from a regional perspective, given the nature of the resource. Our intention is to 
ensure that the value of the resources captured in and around the EEZs of the Pacific 
Islands stays in the region.  
From an ACP perspective, our aim from e ngaging in the WTO Fisheries Subsidies 
discussions is to bring about greater discipline of fisheries subsidies that contribute to 
overcapacity and overfishing, as well as to eliminate IUU fishing. Intrinsic to this issue 
is providing LDCs with special and differential treatment, namely that nothing shall 
prevent an LDC from imposing subsidies that do not contribute to overfishing and 
overcapacity.  
As a member of the Small and Vulnerable Economies grouping at the WTO, Solomon 
Islands is calling for enhanced SDT on the basis that fisheries are critically important to 
our economy. We seek to limit subsidised competition from the developed countries and 
large non -LDC Members and support SDT for SVEs on the grounds that fish is one of the 
few resources available to us for current and future development efforts.  
Fisheries are a crucial source of income and employment, and contribute directly to 
economic growth, food and nutrition security. For Solomon Islands, fish also represent a WT/TPR/M/ 349/Add.1  
 
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vital share of total exports and  make a significant contribution to revenue through 
access fees, as well as providing critical opportunities for value addition. Overfishing, 
however, is undermining fisheries ability to support food security and development. On 
an aggregate level stocks a re faced with depletion.  Today, 58 % of the stocks are fished 
at maximum levels with no room to grow, while the share of overfished stocks increased 
from 10 % in 1974 to over 31 % in 2013. Fisheries subsidies, estimated at over 
35 billions of dollars annually , are a major factor contributing to overfishing and 
overcapacity. This is particularly the case of harmful subsidies granted to large -scale 
industrial fishing in areas beyond national jurisdiction, targeting straddling or highly 
migratory stocks in the hi gh sea and close to the EEZ of developing countries.  
For the Solomon Islands, the biggest issue faced is with respect to subsidies provided by 
the governments of Distant Water Fishing Nation WTO Members, specifically to the  
longline fleets that has resulte d in increased fishing effort in the southern albacore 
fishery. Though the southern albacore fishery is not biologically overfished, catch rates 
are being pushed down because there is too much fishing effort of these species. This is 
an economic problem ra ther than a biological one for Solomon Islands and the rest of 
the Pacific nations involved in this particular fishing activity, and significantly affects the 
viability of Pacific Island longline fleets. Despite a lack of data at the national level, it is 
important to note that Solomon Islands is a significant participant in the albacore 
fishery with an allocation of 11,500 tonnes under the Tokelau Arrangement. These 
subsidies offered to longline fleets, mainly for fuel, means that they are able to continue  
operations, whilst their competitor companies in the Pacific Islands are struggling. 
These subsidies are likely to be directly impacting the total catch available to Solomon 
Islands longline fleets impacting the amount of processing and value addition we can 
create.  
Solomon Islands Government believes that it does not provide subsidies to its fisheries 
industry in the traditional sense (fuel and/or capital assistance).  
__________