WT/TPR/M/378  
6 February 2019  
(19-0657) Page: 1/32 
Trade Policy Review Body   
23 and 25 October 2018  
  
TRADE POLICY REVIEW  
VANUATU  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr Eloi Laourou (Benin)  
CONTENTS  
 
1  INTRODUCTORY REMA RKS BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT  BY THE REPRESENTATI VE OF VANUATU  ................................ .... 4 
3  STATEMENT BY THE DISCUSSANT  ................................ ................................ ................  8 
4  STATEMENTS BY MEM BERS  ................................ ................................ ........................  11 
5  REPLIES BY THE RE PRESENTATIVE OF VANU ATU AND ADDITIONAL C OMMENTS  ....... 25 
6  CONCLUDING REMARK S BY THE CHAIRPERSON  ................................ .........................  31 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies provided 
by Vanuatu  are reproduced in document WT/TPR/M/ 378/Add.1  and will be available online at 
http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/3 78 • Vanuatu  
 
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  1  INTRODUCTORY  REMARKS BY THE CHAI RPERSON  
1.1.  The first Trade Policy Review of Vanuatu was held on 23 and 25 October 2018. The Chairperson, 
H.E. Mr Eloi Laourou (Benin), welcomed the delegation of Vanuatu headed by Mrs. Roline Tekon, 
Acting Director General Ministry of Foreign Affairs, International Cooperation and External Trade; 
the rest of the delegation; and the discussant, H.E. Ambassador Sheryl K. Spencer  (Jamaica) . 
1.2.  The Chairperson recalled the purpose of trade policy reviews and the main elements of 
procedures for  the meeting. The report by Vanuatu  was contained in document WT/TPR/G/37 8, and 
that of the WTO Secretariat in document WT/TPR/S/37 8. 
1.3.  Questions by the following delegations had been submitted in writing before the deadline: 
Brazil; Chinese Taipei; New Zeal and; European Union; United States; Canada; Japan; and Argentina . 
The following delegations submitted written questions after the deadline: Australia; Korea, Rep. of; 
and China . 
1.4.  Since its accession, Vanuatu 's economy had  witnessed considerable fluct uations . On the one 
hand, it had  performed reasonably well on average, with an annual GDP growth rate of around 2.3% 
and low inflation rates. On the other hand, large parts of the country had been  devastated by 
Category 5 Cyclone Pam in 2015, bringing the year 's growth to zero. Hence Vanuatu 's vulnerability 
to natural disasters and the weakness of its infrastructure were some of the mo st important 
challenges it faced  in achieving higher economic growth and attracting more investment.  
1.5.  Vanuatu 's GDP per capita was now some US$2,900, and its graduation from LDC status was 
expected i n a few years. Agriculture played  a key role in Vanuatu 's economy, with around 80% of 
the population depending on subsistence farming.  The agriculture sector accounted  for over 20% of 
GDP and virtually all merchandise expor ts. The services sector accounted  for about two thirds of 
Vanuatu 's GDP, whereas the industrial sector, in the absence of a strong man ufacturing base, mainly 
consisted  of construction and utilities.  
1.6.  Trade was very importa nt for Vanuatu 's economy, with the combined value of exports and 
imports exceeding 100% of GDP. Cattle and logs were the main merchandise exports, while 
manufactured goods, food products and live animals were the main import items. In services trade, 
which  was in surplus, tourism was by far the most important generator of foreign exchange.  
1.7.  Against this background, it was not surprising that trade issues figure d prominently in 
Vanuatu 's policy obj ectives. Vision 2030, which laid  down Vanuatu 's long-term deve lopment goals, 
aimed  to achieve stability, sustainability and prosperity by 2030 through increasing trade and 
investment opportunities and reducing barriers, increasing access to markets for exports, requiring 
all new trade agreements to demonstrate tangib le benefits in the national interest, and stimulating 
economic diversification. Vanuatu 's Trade Policy Framework, which had been  prepared in 2012 and 
was currently being updated, had  the objectives of mainstreaming trade into its national 
development strat egy, and enhancing development through increased exports of goods and services.  
1.8.  While Vanuatu granted  at least MFN treatment to all its trading partners, it was party to several 
overlapping regional agreements, all of which were in the South Pacific, name ly the Melanesian 
Spearhead Group, the Pacific Island Countries Trade Agreement (PICTA), and the Pacific Agreement 
on Closer Economic Relations (PACER).  
1.9.  With regard to trade policy, the tariff was Vanuatu 's main trade policy instrument. Vanuatu 's 
average applied MFN tariff in 2018 was 9.3%. All but two tariff lines were ad valorem , and 26% of 
tariff lines were duty-free. For three tariff lines, applied rates exceed ed bound rates. Although a law 
on trade contingency measures had been  enacte d in 2013, no such measures had  yet been taken. 
Import prohibitions applied  to various agricultural products, while alcoholic beverages, certain drugs 
and foods were subject to import licensing. During the period under review, Vanuatu adopted 
legislation to give effect to the WTO Agreement on Customs Valuation and also significantly reduced 
customs cl earance times. While Vanuatu had  not yet ratified the Trade Facilitation Agree ment, it had  
notified its Category A, B, and C commitments to the WTO.  
1.10.   Vanuatu was open to fore ign investment, which was actively encouraged through the Vanuatu 
Investment Promotion Authority. For some activities, such as tourism or retail shops, the operation WT/TPR/M/3 78 • Vanuatu  
 
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  had to  meet minimum thresholds specified in the relevant legislation. A few other activiti es were 
reserved for Vanuatu citizens, these include d exporting sandalwood and kava; manufacturing 
handcrafts; and road transport.  
1.11.   The Chairperson drew Members ' attention to areas, among others, where they were interested 
in having more clarity. These incl uded: trade facilitation and ratification of the Trade Facilitation 
Agreement; notifications; protection of intellectual property rights; risk management for imports; 
import prohibitions and licensing; transport services; and support to the agriculture sec tor. 
1.12.   This meeting was a good opportunity for Members to discuss in greater detail issues of interest 
to them and of systemic importance to the multilateral trading system. The Chairperson looked 
forward to a fruitful exchange.  
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  2  OPENING STATEMENT BY  THE RE PRESENTATIVE OF VANUATU ( MRS. ROLINE TEKON ) 
2.1.  Mr. Chairman, Good morning and thank you for giving me the opportunity to take the floor.  
2.2.  Mr Chairman, I bring warm greetings from the Government and the people of Vanuatu  to you, 
the distinguished WTO M embers, the Director General of the WTO , the Staff of the WTO Secretariat, 
the WTO Tec hnical Assistance Facilitator, d onors and observers.  
2.3.  Let me convey the apologies of the Minister of Foreign Affairs, International Cooperation and 
External Trade Hon. Ralph Regen vanu who is not able to be present today due to unforeseen 
circumstances. It is therefore with great honour that I present this opening statement of the first 
Vanuatu Trade Policy Review (TPR) on behalf of the Government of the Republic of Vanuatu. I also 
wish to register at this juncture, our deepest appreciation for the understanding of the membership 
on the delays of our submissions.  
2.4.  Chair, my statement will focus on two main themes. Firstly, the Vanuatu 's national trade policy 
and its implementation and , secondly , our responses to some of the issues in the WTO Secretariat 's 
reports.  
2.5.  Briefly by way of background, the Republic of Vanuatu is an Island State located in the South 
Pacific Ocean. It consists of 83 volcanic islands with the population of approxi mately 270,000 people. 
80% of the population live in rural areas where subsistence farming, fishing and production of cash 
crops such as kava, coconut and cocoa are the main sources of their livelihood.  
2.6.  Chair, Vanuatu became the 157th WTO M ember on the 24th of August  2012, and it is our 
conviction that this first Trade Policy R eview exercise would give us the opportunity to show the 
world the progress in implementing its trade policies, implementation measures and practices. This 
exercise also allows the G overnment to reassess its policies and implementation plans. Vanuatu 
expresses its commitment to the Multilateral rules -based system of the WTO which provides 
predictabi lity and certainty for all WTO M ember in parti cular the small and vulnerable M embers li ke 
Vanuatu.  
2.7.  Vanuatu values the importance of the trade policy review and reiterate its commitments to the 
transparency mechanism of the WTO. We remain committed to the monitoring and evaluation of our 
engagement and consequently carryout further reforms to  strengthen our trading regime and 
obligations.  
2.8.  This TPR also come s at an important time as Vanuatu prepares for graduation from its LDC 
status in 2020. The loss of trade preferences and other important privileges will need to be taken 
into account in the  national development strategies and trade policies.  
2.9.  Vanuatu 's national development strategy, Vision 2030 , commonly known as the Peo ple's Plan, 
sets out the G overnment 's vision and priorities aimed at achieving stability, sustainability and 
prosperity. To  achieve this Vision, the Government is committing itself to increase trade and 
investment opportunities, reduce barriers to trade and investment, stimulate economic 
diversification, increase market access and ensure trade agreements deliver benefits to th e 
economy.  
2.10.   Vanuatu 's economy has grown at an average annual rate of 2.3% after Vanuatu 's accession 
to the WTO in 2012. In 2017, Vanuatu 's economic growth forecast was revised upwards by 
0.2 percentage point from 4.3 % in the budget to 4.5 % in April 2018. V anuatu will continue to 
undertake structural and economic reforms, considering that trade is a cross cutting issue, therefore, 
inclusive economic growth is paramount for our sustainab le development. We remain cogniz ant of 
the fact that the private sector is an engine for growth for our economy, thus the importance of 
improving the business environment so it can be more conducive to them.  
2.11.   Chair, over the last decade, trade in s ervices has been the main export contribu tor for 
Vanuatu. Trade in services contributes approximately  69% to the overall GDP, two times higher than 
that of trade in goods, 80% of which comes from the tourism sector. Over the last decade, Vanuatu 
has become an increasingly popular tourist destinat ion. Tourism represents nearly 2/3 of the GDP.  WT/TPR/M/3 78 • Vanuatu  
 
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  2.12.   In the area of Mode 4 movement of natural persons, since 2007, Vanuatu has benefited from 
the Recognised Seasonal Employment (RSE) with New Zealand and in 2009 the Seasonal Workers 
Programme (SWP) with Austra lia. Vanuatu workers accounted for 40% of total RSE and SWP 
numbers in 2017/18. Vanuatu is currently the highest sending country of seasonal workers under 
the two employment schemes and the future prospects look promising.  
2.13.   On Vanuatu 's national Trade Policy, since Vanuatu became a M ember of the WTO in 2012, 
there has been significant development in various areas. Vanuatu adopted its first national Trade 
Policy Framework in 2012 with the objectives to mainstream trade into Vanuatu 's nat ional 
development strategy; enhance development thro ugh increased exports of goods and  services, 
guide and inform the workings of Vanuatu 's National Trade Development Committee (N TDC); inform 
trade negotiations;  and facilitate increased inflows of Aid for Trade (AFT).  
2.14.   Chair, I am pleased to inform this B ody that since July 2018, the Vanuatu Governm ent has 
been working to moderniz e its national Trade Policy Framework (TPF) in order to demonstrate 
tangible benefits and stimulate economic diversification and investment opportunities.  
2.15.   The National Trade Development Committee (NTDC) is the highest institution that was 
established in 2012 to oversee all the trade related matters and to monitor the implementation of 
the Trade Policy Framework (TPF). The NTDC is u nder the Ministry of Tourism, Trade, Commerce, 
Industry, and Ni -Vanuatu Business and convenes its meetings on a quarterly basis. The Committee 
is chaired by the Deputy Prime Minister. Members of the NTDC include Private sectors 
representatives, Director Ge nerals of key government Ministries, Directors and Head of statutory 
bodies responsible for trade developments. Recommendations from the meetings are monitored and 
evaluated in a trade policy implementation matrix.  
2.16.   The NTDC also makes decisions on the for mation of sub -committees to handle technical trade 
related issues. Vanuatu would therefore like to announce an achievement from the NTDC meeting, 
in setting up of a National Trade Facilitation Steering Committee (NTFSC), this committee 
commenced its operat ion since 18 July 2017. The main objective of the NTFSC is to identify trade 
facilitation issues and to oversee the implementation of the WTO Trade Facilitation Agreement. The 
NTFSC convenes its meeting s four times a year and reports to the NTDC. Vanuatu h as submitted its 
TFA notification and is now in the process of ratification. Vanuatu will appreciate further support 
from our partners in identifying the support needed for the category C provisions of the TFA and the 
implementation of the Agreement.  
2.17.   Chair, I will now provide our responses to some of the issues highlighted in the WTO 
Secretariat 's report and the questions from the distinguished Members  namely Brazil, Chinese Taipei, 
New Zealand, European Union, United States, Canada, Japan and Argentina, an d those who have 
submitted after the dateline like Australia, the Republic of Korea and China.  
2.18.   Vanuatu wishes to commend the efforts and commitment made by the Secretariat for the 
comprehensive report that was put forward, it complements the Vanuatu nation al report. These two 
reports were of high value, covering almost all the trading sectors in Vanuatu, including trad e in 
goods, trade in services, i nvestments and intellectual property rights. In addition, I would like to 
express my appreciation and gratitu de for all the hard work done in compiling these reports.  
2.19.   Vanuatu is working towards submitting  all its notifications such as a griculture (exports 
subsidies); IPR (Article 69 in conjunction with the TRIPS Council Decis ion of 1995); TRIMs 
Agreement; import  licensing procedures; quantitative restrictions; customs valuation; rules of 
origin; the integrated d atabase for imports for 2016; SCM State Trading Enterprises; and GATS.  
2.20.   The recent establishment of the Bureau of Standards in 2017 oversees the development and 
adoption of standards. Vanuatu is committed to submitting its TBT and SPS notifications in due 
course. The IPR Office needs more technical and financial support to improve Vanuatu 's IPR 
protection and notification.  
2.21.   On the trade -related ass istance provid ed to Vanuatu, at this juncture , I would like to express 
our gratitude and appreciation to the Institute for Training and Technical Cooperation (ITTC) for 
facilitating the increasing number of our government officials who participated in vari ous WTO 
technical capacity building trainings since our accession to this Organization. Since 2014 , over WT/TPR/M/3 78 • Vanuatu  
 
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  250 WTO training activities have been completed by Ni -Vanuatu either on line or through face to 
face training. Vanuatu has also participated in the Int ernship program me, there are almost seven 
representatives who have participated in the six months WTO Internship program me and the Ten 
months French Irish Internship program me. These programmes have shaped and built the capacity 
of our government officials  in the multilateral trading system and will contribute to the 
implementation of our obligations.  
2.22.   In addition, Vanuatu calls on the WTO Secretariat to enable our officials to participate in the 
Young Professional Programme in order to address the geographi cal imbalance. Vanuatu uses this 
opportunity to call, once more, to partners for a renewed commitment to support the WTO Technical 
Assistance Programme.  
2.23.   In terms of aid for trade support, Vanuatu as an LDC is currently accessing support under the 
Enhanced  Integrated Framework (EIF).  In Vanuatu, the EIF and its predecessor, the Integrated 
Framework (IF), have positively contributed to the trade -mainstreaming work since 2007 with the 
initial Diagnostic Trade Integration Study, support to the cooperatives ent repreneurship training and 
the review of the Customs Duties Act.  
2.24.   The EIF ‑backed Tourism Infrastructure Project is a major breakthrough in terms of Aid for 
Trade coordination and EIF capacity to leverage additional resources. A total of US$18.8  million were  
raised for the project. The Government of New Zealand contributed  to US$15,593,400, in addition 
to US$3,150,000 from the EIF Trust Fund and US$61,900 from the Government of Vanuatu. The 
successful completion of the Project in 2017 is a success story for V anuatu and has paved the way 
for our women entrepreneurs to be involved in Po rt Vila Handicraft Market House.  
2.25.   Furthermore, in July 2018, Vanuatu launched the e -Trade Readiness Assessment on the 
project to establish a National Single Window for trade in Van uatu. This Single Window project will 
be launched in January 2019. In the same juncture, Vanuatu is also exploring the possibility of 
establishing its own Trade Portal and we are  pleased to inform you all that  this is becoming a reality 
this week through t he assistance of a n UNCTAD specialist currently in country. Vanuatu would 
therefore like to thank the EIF, Government of Australia, World Bank and UNCTAD for the support 
provided to implement these national trade projects.  
2.26.   Chair, while we are currently ben efitting on the Duty -Free Quota Free Market Access, Vanuatu 
is due to graduate from the LDC Group on 4 December 2020.The Government has established a 
National Coordination Committee to oversee the smooth transition process befor e graduation. 
Vanuatu calls on Members to technically and financially support our smooth transition, but most 
importantly post -graduation in providing special support measures for vulnerable countries like us. 
Vanuatu is the world 's most at risk country for natural hazards, especiall y from cyclones, 
earthquakes, volcanic activities and tsunamis as verified by the UN University World Risk Index. For 
instance, on 13 March 2015 , Vanuatu was badly battered by a tropical cyclone PAM so the key 
economic sectors of agriculture and tourism wa s been destroyed in a span of 24 hours and had 
impacted 60% of the GDP, followed by droughts, two cyclones and the displacement of people from 
a whole island due to the volcanic eruption.  
2.27.   Vanuatu would appreciate further support in the area of sea and lan d transport services that 
contribute  to our agriculture development  which remains a major constraint to our economic 
development. The 11th European Development Fund provided by the European Union is focusing on 
the rural development in three main areas suc h as cattle, coconut, fruits and v egetables.   
2.28.   Chair, I would like to announce another milestone achievement of the Vanuatu Government 
after joining the WTO:  the establishment of the Vanuatu Permanent Mission in Geneva since 
20 February 2018.  
2.29.   Vanuatu also  wishes to acknowledge the continuous support and contributions made by ACP, 
PIFS, LDC, SVES groupings on behalf of the Vanuatu Government in the different committee 
meetings that were usually held at the WTO for the past years.  With the establishment of o ur Mission, 
we are now committed to work closely with you all, follow and support the negotiation processes 
and making sure that our national interests are reflected in the committee meetings and the 
multilateral trade agreement as a whole.  WT/TPR/M/3 78 • Vanuatu  
 
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  2.30.   Chair, Vanuatu  values the importance of the Transparency Mechanism. Vanuatu  notes the 
questions raised by M embers regarding Vanuatu 's outstanding notification obligations and therefore 
we wish to reiterate our commitments to addressing these outstanding notifications an d will work 
progressively towards convening a national workshop on notification scheduled for next year to 
address the difficulties faced by the various national agencies in responding to the notification 
obligations.  
2.31.   Finally, Chair, Vanuatu wishes to rea ssure its continued participation and commitment to the 
multilateral trading regime. As an LDC; inclusivity, transparency and special and differential 
treatment are cardinal principles for our participation in the WTO. Therefore, after its graduation i n 
2020, the multilateral rules -based system of the WTO should provide appropriate flexibilities to 
better integrate small vulnerable M embers such as Vanuatu.  
2.32.   I wish to reiterate my sincere appreciation and deepest gratitude for all your support to 
Vanuatu dur ing this process.  
2.33.   Chair, with these remarks I thank you for your attention.  
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  Let me begin by recogniz ing the presence of Ms. Roline Tekon, Acting Director General in the 
Ministry of Foreign Affairs, International Cooperation an d External Trade, and Head o f delegation, 
as well as other senior o fficials from Vanuatu.  
3.2.  Today, we have been afforded an opportunity to be a part of history in the making and I am 
pleased to participate as a Discussant in this inaugural Trade Policy Revi ew of Vanuatu. We are all 
aware of the difficulties involved in preparing for a TPR, as the required efforts often outstrip the 
already stretched capacities of most developing countries and LDCs.  
3.3.  Therefore, I wish to commend Vanuatu for the strides made si nce the country 's accession to 
the WTO in August 2012, only six years ago, and also convey best wishes to its esteemed delegation 
for a memorable and successful TPR.  
3.4.  Chair, y our introductory remarks, along with the pr esentation made by the Head of d elegation 
of Vanuatu, have indeed been insightful and effective in setting the stage for our deliberations today.  
3.5.  As we undertake this review process, I am reminded of the many similarities existing between 
Vanuatu and my own country, Jamaica, our shared status as Small Island Developing States (SIDS) 
and the considerable challenges in the pursuit of our objectives for sustainable economic growth and 
development. These include a narrow economic base, high susceptibility to natural disasters, 
vulnerability to external shocks and strong reliance on exports.  
Vulnerability to Natural Disasters  
3.6.  As reflected in the report by Vanuatu, climate change poses significant risks to its successful 
and effective integration into the global trading system. In 2015, the Wor ld Risk Index ranked 
Vanuatu as the country with the highest risk to natural disasters. Natural disasters have cost Vanuatu 
dearly, in terms of infrastructural damage, supply chain disruptions and, inevitably, increased 
pressure on the government 's already  stretched resources with which to attend to the needs of 
communities in the form of disaster recovery. The World Bank, for example, has estimated that the 
2015 passage of category 5 Tropical Cyclone Pam, which struck 22 of Vanuatu 's 83 islands, affected 
67% of the population and racked up infrastructural damage amounting to US$447.1 million, that is  
approximately 64% of Vanuatu 's GDP. Indeed, the Secretariat r eport in Table 1.4 shows that there 
was a sharp decline in export of goods  and services in 2015 and 2016 relative to what obtained in 
2014.  
Economy  
3.7.  I am happy to see in the r eport by Vanuatu, that it is recovering from the impact of Cyclone 
Pam, especially the services sector, which contributes 69% to GDP and employs 30% to 40% of the 
local population.  
3.8.  Further, Vanuatu has been making considerable strides in improving its economic and trading 
performance, since its accession to the WTO. The country 's economy has been experiencing steady 
growth at an average rate of approximately  2.3% per annum, while the GDP per capita is reported 
to have risen to US$2,900. Efforts are also being made to keep inflation rates within target.  
3.9.  Looking ahead, the economic prospects for the country remain very positive for the 2018 to 
2020 period, wit h Vanuatu aspiring to graduate from LDC status by 2020 . I would like to t ake this 
opportunity to emphasiz e that Vanuatu 's graduation from LDCs status should not serve as a basis 
for curtailing the quantum of "aid for trade " resources, or the flexibilities accorded to the country  by 
its multilateral and bilateral partners. The graduation should, instead, incentivise the acceleration of 
targeted intervention and partnership to further build economic and trade capacity, as well as to 
cushion the embedded risks  posed by climate change and other factors.  
Main Economic Sectors  
3.10.   As indicated in both reports and mentioned previously, the services sector is the mainstay of 
Vanuatu 's economy, contributing over two -thirds of the country 's total GDP. It is noted that the  WT/TPR/M/3 78 • Vanuatu  
 
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  sector is largely driven by tourism which is a major foreign exchange earner and provider of 
employment, while the telecommunications (ICT) and transport subsectors, among others, have 
been gaining increased momentum during the last decade. The in -roads m ade by Vanuatu in ICT is 
particularly encouraging given the continuous global paradigm shift into the New Industrial 
Revolution. Vanuatu 's future success in international trade will be largely influenced by the extent 
to which businesses integrate their pr oduction and commerce with ICT. This could be an area for 
continuing reflection by Vanuatu 's development partners.  
3.11.   In addition, Vanuatu also relies heavily on agricultural trade, particularly copra and kava, as 
well as cocoa, coffee and beef. Despite exper iencing high volatility within the global market in respect 
of the trade in copra, positive net growth was recorded in the sector. Not surprisingly, priority is al so 
being placed by the Vanuatu G overnment on fisheries management and enhancing sustainable 
domestic fisheries and aquaculture development. Given the importance of the fisheries sector for 
employment and food and nutrition security, especially in rural areas, home of over 80% of the 
population, the current negotiat ions on fisheries subsidies are u ndoubtedly  important to the country. 
This indicates that Vanuatu 's development interest largely depends on an outcome with favourable 
special and differential treatment for small island states, and one that preserves policy space for 
support to be given to  fisherfolk in improving their competitivene ss, fishing practices and 
value -added production.  
3.12.   The blue economy presents enormous opportunities  as well . The World Bank estimates that 
the blue economy generates US$3 to US$6 trillion to world GDP. In this re gard, global rules will have 
to accommodate and foster the aspirations of small developing countries such as Vanuatu.  
3.13.   As a small vulnerable state, Vanuatu 's industrial sectors are not immune to fluctuations in 
global oil prices, as fossil fuel accounts for  an annual average of over 13% of imports. Additionally, 
the WTO 's and IMF 's downward revision of their outlooks for global trade and global growth, 
respectively, present risks to Vanuatu 's projection for growth in trade, investment inflows, tourism 
receip ts, as well as economic activities in other sectors.  
3.14.   At the same time, the policies which are being implemented by the country, including 
investment reforms spearheaded by the Vanuatu Investment Promotion Agency (VAIPA), the 
National Industrial Policy (NIP ) and the National Energy Road Map (NERM) appear to be effective 
and focused in the right direction. They should therefore be encouraged and strengthened in order 
to yield maximum economic results.  
3.15.   In the area of Intellectual Property Rights, we note the p ositive steps taken by Vanuatu since 
2000 to formally establish and strengthen the country 's Intellectual Property protection regime, 
including the establishment of the Vanuatu Intellectual Property Office (VanIPO) in March 2012, the 
signing of a technical  cooperation agreement with WIPO and the current move by VanIPO to establish 
separate patent and Design Divisions. I wish to emphasize the importance of ongoing technical 
assistance and support to bolster Vanuatu 's efforts in this area.  
Trade  
3.16.   Vanuatu shou ld be commended on the adoption of its Trade Policy Framework, which is 
currently being updated. Indeed, much of the country 's success is attributed to its Trade Policy 
Framework. It is also encouraging that Vanuatu 's Trade Policy Framework is focussed, inter alia , on 
mainstreaming trade into the country 's national development strategy, Vision 2030, and enhancing 
development through increased exports of goods and services.  
3.17.   The reports presented have further underscored the linkages and coordination existing  
between the Ministry of Foreign Affairs, which has primary responsibility for trade, and other 
ministries, department and agencies with trade -related mandates.  These synergies and the 
joined -up approach to trade policy planning and implementation can only  augur well for the country 
in the attainment of its objectives and should be further strengthened.  
3.18.   It is noted that Vanuatu has not yet ratified the Trade Facilitation Agreement, although it has 
notified its Categories, A, B and C commitments to the WTO. We encourage the country to take 
steps to ratify the Agreement as soon as possible. I  have noted the achievement reported this WT/TPR/M/3 78 • Vanuatu  
 
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  morning in establishing a National Trade Facilitation Steering Committee and congratulate Vanuatu 
in that regard.  
3.19.   It is also note d that some Members have pointed to the need for Vanuatu to improve 
compliance with its notification obligations to the WTO. It is, however, understood that, like other 
developing and LDC Members of the WTO, technical and capacity building support may be r equired 
in this area. In that context, I have noted Vanuatu 's commitment to work towards improvement on 
this issue . 
Final r emarks  
3.20.   In summary, the reports before us indicate clear signs of progress. The Government of 
Vanuatu is therefore on the right trajec tory towards the attainment of its National Development 
Plan, as well as the Sustainable Development Goals. However, while much has been achieved, some 
challenges remain to be overcome. With continued clear and consistent policy making, strong 
institutiona l framework, effective inter -agency coordination and collaboration, fiscal discipline and 
the creation of an enabling environment for trade and investment, Vanuatu should succeed in 
meeting its key economic and developmental targets, ahead of its next Revi ew. 
3.21.   Moreover, the recent establishment of its Permanent Mission to the WTO should further 
complement these efforts, and will augur well for the country 's enhanced participation and 
integration within the multilateral trading system.  
3.22.   It is also anticipated  that the outcome of this Review will contribute to efforts to strengthen 
Vanuatu 's capacity to implement trade policies and to increase the benefits to be derived from its 
engagement in international trade. Thank you  Chair. 
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  4  STATEMENTS BY MEMBER S 
BRAZIL  
4.1.  Brazil commends the G overnment of Vanuatu for the promotion of economic diversification and 
stability through the adoption of its National Sustainable Development Plan - Vision 2030. The plan, 
which sets the goal of achieving a stable, sustainable and pros perous country by 2030, is a 
fundamental initiative to strengthen Vanuatu 's economy, especially with regards to measures 
designed to reduce trade barriers and promote an improved business environment.  
4.2.  On a less positive note, Vanuatu has not submitted any  notifications to the WTO on its SPS 
measures. Moreover, the procedure for obtaining a quarantine -based import permit has been 
causing significant delays in the release of cargo arriving in the country. In this regard, we encourage 
Vanuatu to step up its e fforts to address the issue. As a positive development, we thank the 
Delegation of Vanuatu for the answer provided on this subject.  
4.3.  Bilateral trade relations are very modest but have potential for growth. Brazilian exports to 
Vanuatu are basically made up of fuel oil, hewing tools and seats while imports are mainly composed 
of tableware and hydraulic valves. There are certainly opportunities for diversification.  
4.4.  Brazil continues to follow with interest domestic developments in Vanuatu regarding its trade 
policy. Let me conclude  by wishing the delegation of Vanuatu a successful Trade Policy Review.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.5.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu commends Vanuatu on 
its effor ts to liberalize its trade regime and integrate further with the global economy since its 
accession to the WTO in 2012. We have also noted the various initiatives, policies and legislative 
actions undertaken by Vanuatu during the review period to increase trade opportunities, stimulate 
economic diversification and improve the regulatory framework.   
4.6.  We are pleased to see that, according to the IMF, the outlook for Vanuatu 's economy is 
expected to fully recover from the effects of Cyclone Pam in the near fut ure. Though there may be 
further challenges ahead, such as fiscal deficit or an increase in public debt, we believe that with its 
continuous efforts and structural reforms, Vanuatu can gradually turn its economy into one of 
sustainable growth.   
4.7.  I am also pleased to report that our bilateral trade has grow n significantly over the past 3  years. 
In 2015, two -way trade between us amounted to just 1.7 million US dollars. In 2017, it  was up to 
2.6 million, an average annual growth rate of 22%. Our imports from V anuatu in 2017, mainly 
fishery products, accounted for US$1.71 million of the total. We look forward to developing further 
opportunities to expand our economic relations with Vanuatu in the future.  
4.8.  We are confident that Vanuatu is committed to maintaining  the core values of the WTO, and 
that it will continue to support the Multilateral Trad ing System. In the Secretariat r eport, Vanuatu is 
encouraged to bring all its notifications up to date in such areas as agriculture, IPR and so on. In 
addition, we would  like to see its ratification of the Trade Facilitation Agreement completed as soon 
as possible.   
4.9.  In conclusion, I wish Vanuatu every success with its programmes of economic and social 
reform, as well as a constructive and successful trade policy review.  
NEW  ZEALAND  
4.10.   New Zealand welcomes this opportunity to comment on the T rade Policy Review of Vanuatu. 
The relationship between Vanuatu and New Zealand is strong with a number of significant milestones 
occurring in the last 12 months including the 30th annive rsary of the New Zealand mission being 
established in Port Vila, and the establishment of a Vanuatu High Commission to New Zealand.  
4.11.   We are pleased to be able to work closely with Vanuatu as a key member of our Pacific 
neighbourhood. Like New Zealand, Vanua tu is a member of the Pacific Islands Forum and participates WT/TPR/M/3 78 • Vanuatu  
 
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  in initiatives to expand trade in the region. New Zealand and Vanuatu are also signatories of the 
Pacific Agreement on Closer Economic Relations (PACER) Plus – a milestone trade and development 
agreement for the Pacific region.  
4.12.   New Zealand encourages and watches with anticipation Vanuatu 's efforts to attend to all of 
its domestic processes required to ratify PACER Plus in coming months in order to support the entry 
into force of this agre ement. We are interested to hear from Vanuatu how its progress towards 
ratification is proceeding.  
4.13.   New Zealand notes the growing importance of services to Vanuatu, accounting for 69% of 
GDP. In turn this reliance translates into a significant employment provider.  New Zealand is 
interested in hearing more on the contribution in this sector to tourism and the interplay with 
Vanuatu 's launch of a "trade mainstreaming " programme.  
4.14.   Given the regular impact and risk of natural disasters (and the reminder of the devastat ing 
impact Tropical Cyclone Pam had in 2015) on Vanuatu 's productive sectors, New Zealand is 
interested in measures being taken by Vanuatu to highlight productive policy to assist farmers in 
developing disaster resilient crops.  
4.15.   New Zealand notes the challe nges being faced by Vanuatu 's rural households where the 
majority of 83% still lack access to electricity, compared to 20% of urban households. New Zealand 
recognises the development needs of low income households and is keen to learn what additional 
measu res, including the transition to renewable energy, Vanuatu is considering increasing  access to 
basic energy services in rural areas in particular.  
4.16.   With regards to subsidies, New Zealand commends Vanuatu on their transparent and open 
fisheries sector.  
4.17.   New Zealand is interested in Vanuatu 's views on the effectiveness of the Investment Service 
Centre pilot scheme in terms of improving FDI facilitation.  
4.18.   In conclusion, New Zealand commends the ste ps taken by Vanuatu and recogniz es the 
challenges faced. We welc ome Vanuatu 's perspective on the issues that will be raised during these 
two days and wish Vanuatu a successful review.  
EUROPEAN  UNION  
4.19.   The EU would like to highlight some of the positive developments that have taken place during 
this period under review.  
4.20.   The EU commends Vanuatu 's strong commitment to the multilateral trading system and, as 
reflected by its accession to t he WTO, its support for a rules -based system. We also commend its 
strong efforts to graduate from Least Developed Country (LDC), status in 2020.  
4.21.   This being Vanuatu 's first review since its accession to the WTO in 2012, we are pleased to 
note that Vanuatu provides a good example of how participation in the WTO can help a small and 
remote country boost its economy. Trade is very important for Vanuatu 's economy and its share of 
GDP has increased since 2011.  
4.22.   Even though Vanuatu was hit hard by the Category 5 Cyclone Pam in 2015, it has managed 
to develop its economy, in particular in the service sector, which is accounting for about 2/3 of its 
GDP. Its service exports are dominated by tourism (about 80%) which recovered well in 2016 and 
2017.  
4.23.   However, the continued volcanic eruptions on Ambae island and the evacuation of the island 's 
11,000 habitants to relocation sites on Maewo, Pentecost and Sa nto islands have resulted to rising 
food prices in Ambae and the surrounding islands. Nevertheless, although the destruction of crops 
on Ambae has caused localised food price inflation, we note that it has not affected Vanuatu 's wider 
economy.  WT/TPR/M/3 78 • Vanuatu  
 
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  4.24.   Vanuatu has a unique environment, with tropical forests, green coastal plains and coral reefs. 
Due to its geographic location and conditions Vanuatu is, as described in the reports, very vulnerable 
to climate change, which we need to keep in mind when discussing issue s related to trade and 
environment in the WTO.  
4.25.   Vanuatu 's policy document, Vision 2030, aims to, inter alia, increase trade and investment 
opportunities and reduce barriers, and stimulate economic diversification to spread the benefits of 
growth and increa se economic stability. The EU encourages Vanuatu to continue its economic reform 
efforts. In this context, the EU also notes that Vanuatu has made efforts to fight corruption and to 
improve transparency. The EU encourages Vanuatu to continue on this path a nd to reinforce its 
institutions to ensure a fair, transparent and predictable legal environment.  
4.26.   The EU welcomes Vanuatu 's notification of its Category A, B and C commitments under the 
WTO Agreement on Trade Facilitation in January 2018. However, it has not yet ratified the Trade 
Facilitation Agreement. The EU calls on Vanuatu to complete its internal legislative process for 
securing prompt approval of the Trade Facilitation Agreement.  
4.27.   Let me also recall that the EU is an important trade partner of Vanuat u, and that together 
with its Member States, a donor for development aid in Vanuatu. The 11th European Development 
Fund foresees support for the country amounting to €43 million for the period 2014 -2020 and 
cooperation covers areas such as good governance,  gender equality and environmental 
sustainability.  
4.28.   Being a LDC, Vanuatu benefits from the EU 's unilateral Generalized Scheme of Preferences 
(GSP) - from specific arrangement - the "Everything But Arms (EBA) ", which offers duty -free and 
quota -free access to  the EU market for all products — except arms and ammunition. We hope that 
Vanuatu would consider acceding to the existing EU -Pacific Economic Partnership Agreement (EPA) 
between the EU and Pacific States (Fiji and Papua New Guinea) in the near future in o rder to maintain 
full duty -free-quota -free access to the EU market, as the EBA preferences would otherwise no longer 
apply to Vanuatu three years after graduation from LDC.  
4.29.   Mr Chairman, the EU has submitted a handful of questions. We are particularly inter ested to 
know the reasons for Vanuatu 's prohibition of beef import from the EU, and would like to receive 
information about when Vanuatu intends to ratify ILO Convention 138 on minimum age.  
4.30.   On behalf of the EU, I look forward to a constructive exchange of views during this Trade 
Policy Review and wish Vanuatu 's delegation the best of success.  
UNITED  STATES  
4.31.   We first would like to note that the United States is committed to maintaining strong 
engagement with the members of the Pacific Islands Forum as part of  our Indo -Pacific Strategy.  
This month senior U.S. trade officials spent a week in the South Pacific meeting with members of 
the public and private sectors to discuss ways in which the U.S. and Pacific Island Forum members 
can increase trade ties through the U.S. GSP program.  Since Vanuatu 's accession to the WTO, we 
have also worked with the Pacific Islands Forum to update the South Pacific Tuna Treaty, provided 
more than $2 million in foreign aid assistance following Tropical Cyclone Pam and are currentl y 
expanding the size of our mission to Papua New Guinea, Vanuatu and the Solomon Islands.  
4.32.   The United States congratulates Vanuatu on its first Trade Policy Review since becoming the 
157th member of the WTO in 2012 and commends the government of Vanuatu for  its commitment 
to ensuring the people of Vanuatu benefit from international trade to the greatest extent possible.  
Officials from Vanuatu have engaged with the WTO Institute for Training and Technical Cooperation 
to improve their understanding of WTO pri nciples, taken advantage of opportunities to learn how to 
better utilize the U.S. GSP program and are working with the Pacific Islands Forum to voice the 
interests of the South Pacific 's economies in other regional bodies such as APEC.  The U.S. recognizes  
these efforts and believes Vanuatu and other Pacific Island nations ' participation in global trade fora 
such as the WTO is important in ensuring their trade interests are considered and they form part of 
the global economic development process.  WT/TPR/M/3 78 • Vanuatu  
 
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  4.33.   Vanuatu h as committed to ensuring international trade continues to serve as a focal point of 
its long -term development plans. As noted within its National Development Strategy, Vanuatu 's 
trade policy objectives are to stimulate sustainable and equitable growth by i ncreasing trade and 
investment opportunities, increasing access to markets for local exports, requiring all new trade 
agreements demonstrate tangible benefits in Vanuatu 's national interest, and stimulating economic 
diversification. These objectives seem appropriate and reasonable ways to deepen Vanuatu 's 
integration into the global economy and increase the benefits to Vanuatu 's people from international 
trade.  
4.34.   The Secretariat report notes that Vanuatu has developed multiple initiatives to improve access 
to credit, including the establishment of a National Financial Inclusion Task Force, the launching of 
a National Financial Inclusion Strategy and the creation of bank -operate d financial literacy programs. 
We would encourage Vanuatu to continue these efforts  as access to credit remains the largest 
constraint for local agriculture development, a significant issue considering agriculture accounts for 
more than one -fifth of Vanuatu 's GDP and nearly a ll of its merchandise exports.  
4.35.   Noting the services sector accou nts for nearly two -thirds of Vanuatu 's GDP, the U.S. 
appreciates the steps Vanuatu has taken in making commitments under GATS across several 
services sectors. Regarding merchandise exports, while Vanuatu has notified its Category A, B, and 
C commitments wi th respect to the WTO Trade Facilitation Agreement (TFA), it has not yet rati fied 
the TFA as noted earlier. The United States encourages Vanuatu to do so.  Ensuring ratification of 
the TFA will also help address customs and trade facilitation issues, suppo rting Vanuatu 's agricultural 
exports sectors.  
4.36.   As noted in the Secretariat report, Vanuatu has outstanding notifications to the WTO in several 
areas including customs valuation, import licensing procedures and subsidies and counte rvailing 
measures. We encou rage Vanuatu, and other WTO members, to maintain their commitment to 
submit notifications to the best extent possible to ensure the proper functioning of WTO agreements.  
4.37.   The United States commends Vanuatu for its efforts in combating IUU fishing activities  
through its 2014 Fisheries Act, a positive step in ensuring the integrity of fisheries  management 
within the region. As part of its National Fisheries Sector Policy document, Vanuatu notes that room 
for improvement remains with respect to monitoring and e nsuring the proper treatment of workers 
on fishing vessels. Recognizing the resource constraints Vanuatu faces, the United States encourages 
officials in Vanuatu to develop adequate policies to ensure adherence to international labo ur 
standards.  
4.38.   The Unite d States would also encourage further domestic regulatory reforms to continue 
improving Vanuatu 's business enabling environment.  Vanuatu currently ranks 90th out of 
190 economies on the World Bank 's Ease of Doing Business Index, with its lowest scores in dealing 
with construction permits (151st), trading across borders (143rd), enforcing contracts (135th), an d 
starting a business (128th). Streamlining this process would facilitate trade,  investment and growth.  
4.39.   The United States appreciates Vanuatu 's effort s to prepare for this review and commends 
Vanuatu for its demonstrated accomplishments i n trade and investment reform. The United States 
wishes the delegation of Vanuatu a successful review, and we look forward to continued dialogue 
with Vanuatu and other members of the Pacific Islands Forum at the WTO and on a bilateral basis.  
CANADA  
4.40.   Since its accession to the WTO in 2012, and as noted in the Secretariat report, the Vanuatu 
government has made good progress in the implementation of policies that promote gr owth and 
economic development.  
4.41.   In the face of many challenging circumstances, I welcome Vanuatu 's commitment to the 
multilateral system supporting a rules -based structure for international trade and commerce. Broad 
and comprehensive policy reforms together  with trade liberalization are  key to the long -term 
development, economic growth and prosperity of Vanuatu.  
4.42.   Canada enjoys a deep and positive relationship with Vanuatu. Our relationship is centered on 
mutual interests such as climate change, economic deve lopment and gender parity. Canada is WT/TPR/M/3 78 • Vanuatu  
 
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  engaged in initiatives supporting climate adaptation and resilience, female merchants in rural and 
urban markets and promoting the role of women in leadership positions. These projects are 
contributing to inclusive econ omic development and addressing environmental challenges in the 
country.  
4.43.   I would now like to take this opportunity to highlight four areas in particular where Vanuatu 
has taken significant steps toward improving their economy:  
4.44.   First and foremost, we are very pleased  to see that Vanuatu has a long -term approach to their 
economic and trade policy. Vanuatu 's development plan called Vanuatu 2030 – The People 's Plan, 
launched in January 2017, focuses on social, environmental and economic goals. Canada is hopef ul 
that this policy will lead to important improvements in the lives of the people of Vanuatu, particularly 
for the empowerment of women, as well as the country 's business environment and climate change 
resilience.  
4.45.   Second, we are encouraged by the governm ent's openness to foreign direct investment and 
recognition of the important impact it can have on econ omic and business development. We 
encourage the work of the Investment Service Center pilot in 2017 and look forward to s eeing it 
fully functional. We also look forward to seeing the development of a National Investment Policy to 
ensure coherence in existing and future sectoral policies.  
4.46.   Third, I salute the Government 's launch of information and communication technologies 
policies. The Universal Access P olicy has enabled the rapid development of the telecommunications 
services sector. The mobile access rate increased from 12% in 2007 to 85% in 2017 and access is 
currently available to 98.8% of the population.  
4.47.   Fourth, I would like to compliment Vanuatu for the ambition it demonstrates in its sustained 
involvement in the WTO. I am pleased that Vanuatu is in the process of establishing a Permanent 
Mission in Geneva. The mechanisms put in place to support their cou ntry's involvement in the WTO, 
will become increasingly valuable as Vanuatu nears graduation to developing country status. 
Consistent with its inclusive approach to trade, which seeks to ensure that the benefits and 
opportunities of trade are more widely s hared, Canada was also pleased to endorse the WTO Joint 
Declaration on Trade and Economic Empowerment alongside Vanuatu at the 2017 WTO Ministerial 
Meeting in Buenos Aires. Lastly, I would also like to encourage Vanuatu to ratify the Trade Facilitation 
Agreement and am pleased to note that Vanuatu has notified its category A, B and C commitments 
to the WTO.  
4.48.   We also commend Vanuatu for its work towards expanding trade in the Pacific region though 
the Pacific Island Countries Trade Agreement (PICTA) and as a  signatory to the Pacific Agreement 
on Closer Economic Relations (PACER) Plus.  
4.49.   Despite all this progress and these promising initiatives, there remain areas which would 
benefit from furthe r attention on the part of the G overnment. We are concerned by Vanu atu's 90th 
rank on the 2018 World Bank Ease of Doing Business Index, and particularly the 135th rank on the 
on the ease of enforcing contracts, the 143rd rank in trading across borders, and the 151st rank in 
dealing with construction permits. Improving per formance in these areas will facilitate commercial 
activity and contribute to economic growth.  
4.50.   Taking into consideration the accomplishments Vanuatu has made since its accession to the 
WTO in the economic and regulatory environment for trade; Canada stress es the importance of 
timely notifications.  
4.51.   We have submitted written questions with respect to the protection of property rights with a 
view to deepen our understanding of Vanuatu 's trade and investment regime.  
4.52.   In closing, we wish Vanuatu a very successfu l first Trade Policy Review, and we look forward 
to a constructive exchange of views this week.  
  WT/TPR/M/3 78 • Vanuatu  
 
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  JAPAN  
4.53.   We would like to express our sincere appreciation for the dedicated efforts made by Vanuatu 
and the WTO Secretariat to prepare the insightful reports sh ared with the members in advance of 
today 's review. We imagine that Vanuatu must have encountered many difficulties in developing its 
report as this is the first time for it to experience the TPR. We are sure that this experience will 
enhance Vanuatu 's cap acity so that it will be able to meet the deadline for submitting the report 
next time.  
4.54.   I would also like to add that we appreciate receiving the answers from Vanuatu to our written 
questions on IPR issues. We encourage Vanuatu to develop a solid foundatio n for protection and 
enforcement of IPR.  
4.55.   Looking into Vanuatu 's economic situation, we would like to underscore the importance of 
recovery from serious damages caused by continuous natural disasters. To this end, trade and 
foreign direct investment are cru cially important. Specifically, the service sectors, which account for 
about two thirds of Vanuatu 's GDP, are keys to earning foreign exchange. Tourism is one particularly 
promising service sector as Vanuatu can attract many foreign tourists with its beaut iful landscapes 
and pure blue oceans.  
4.56.   For a successful tourism sector good infrastructure is important,  as it is for various sectors. 
So, considering Vanuatu 's lack of infrastructure as well as its industries ' lack of competitiveness, it 
is definitely mea ningful for the country to open up its economy in order to facilitate participation of 
advanced foreign enterprises and accelerate its economic development. In this regard, we truly 
appreciate Vanuatu 's provision of non -discriminatory treatment to foreign enterprises in many 
sectors such as finance and telecommunications.  
4.57.   We also appreciate Vanuatu 's dedicated efforts to submit notifications to the WTO. For 
example, Vanuatu provides domestic support measures for its key industry of agriculture. We are 
convinced that such efforts in the area of notification definitely contribute to enhancing the 
predictability and transparency of Vanuatu 's market. Aside to that, Vanuatu requires business 
licenses in many sectors, including for fishing, which is also a key in dustry for the country. We 
encourage Vanuatu 's continuous efforts to apply such regulations in a non -discriminatory manner. 
Additionally, we appreciate Vanuatu 's active engagement in the ongoing negotiations in the WTO on 
different issues such as fisheries  subsidies.  
4.58.   Other than WTO activities, we welcome Vanuatu 's active participation in the global market 
through pursuing RTAs with several countries.  
4.59.   In conclusion, we truly appreciate Vanuatu 's dedicated efforts to observe its commitment to 
the WTO since it s accession in 2012. We wish Vanuatu a successful and productive first TPR, and 
look forward to hearing of further progress regarding its trade policy at its next TPR, by which time 
we hope Vanuatu will have graduated from LDC status.  
ARGENTINA  
4.60.   Argentina i s most interested to note that annual economic growth in Vanuatu has averaged 
2.3% since the country joined the WTO in 2012. Despite being among the WTO Members most 
exposed to natural disasters of various kinds, Vanuatu has managed to achieve relatively s table 
economic growth. Its GDP is expected to increase by 3.4% in 2018 and 3.8% in 2019, and to stabilize 
at around 2.6% in 2020.  
4.61.   As regards bilateral relations, Argentina is pleased to report that our first ambassador to 
Vanuatu presented his credentials to the President on 7 August of this year. This event will 
undoubtedly lead to a deepening and expansion of relations between our two countries, and to a 
reinforcement of the bonds of friendship that unite us. We have also entered into a technical 
cooperat ion agreement under which we will implement development programmes and projects 
jointly, exchanging experts, organizing human resources training, and sharing materials and 
equipment, among other possible activities.  WT/TPR/M/3 78 • Vanuatu  
 
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  4.62.   In relation to trade policy, we would li ke to highlight Vanuatu's efforts to integrate trade in its 
national development policy and to foster development through increased exports of goods and 
services. We are confident that Vision 2030, Vanuatu's policy plan, will improve economic conditions 
and access to export markets in the period to 2030, and will help the country to diversify its 
economy.  
4.63.   Argentina commends the fact that, as part of its trade policy, Vanuatu has entered into 
preferential trade agreements with other countries and territories  in the South Pacific under the 
Melanesian Spearhead Group (MSG) Trade Agreement, the Pacific Island Countries Trade Agreement 
(PICTA), and the Pacific Agreement on Closer Economic Relations. The fact that Vanuatu grants at 
least most -favoured -nation treat ment to all its trading partners is also noteworthy.  
4.64.   Argentina is pleased to note that most business activities in Vanuatu are open to foreign 
investment, although some restrictions apply in a few specific sectors pursuant to the relevant 
legislation. With  regard to customs, it should be noted that customs clearance time has been 
considerably reduced after a new dock was opened in 2018.  
4.65.   We would also like to highlight that Vanuatu does not use tariff rate quotas or seasonal tariffs 
and that it has bound all  its tariff lines. However, we note with concern that average 
most-favoured -nation tariffs in the agricultural sector are close to 16.9%, which is above the average 
tariff applied in the non -agricultural sector.  
4.66.   Lastly, Argentina takes a positive view of t he developments in competition policy that are 
under way, driven, in particular, by the formulation of a law on competition and consumer protection. 
It also commends the efforts of Vanuatu's Intellectual Property Office, which was established in 
2012, to s et up a Patents Division and a Design Division.  
4.67.   In conclusion, while reiterating our appreciation of this renewed opportunity to exchange 
information and reflections on the trade policies and practices of Vanuatu, we would like to draw 
attention once again  to the importance of this exercise in transparency, in all its aspects, and to 
wish the authorities of Vanuatu a successful conclusion to this review.  
AUSTRALIA  
4.68.   Australia is committed to supporting Vanuatu 's integration in the global trading system, 
reflecting our shared interest in a strong, open, rules -based system. We welcome ongoing progress 
in the development and updating of Vanuatu 's Trade Policy Framework.  
4.69.   Australia is working with Vanuatu through a number of initiatives, including the Enhanced 
Integration Framework, the Pacific Islands Forum Secretariat, Pacific Agreement on Closer Economic 
Relations (PACER) Plus, and bilateral programs.  
4.70.   Australia remains committed to ensuring that the PACER Plus delivers tangible benefits for 
Vanuatu and other signatory countries from  day one of entry into force.  Australia, like Vanuatu, is 
working hard to ratify this agreement. We welcome Vanuatu 's interest in utilising trade -related 
support provided under the PACER Plus Readiness Package to help prepare for ra tification. Australia 
looks forward to Vanuatu 's active engagement in shaping the Development and Economic 
Cooperation Work Program under PACER Plus, which will provide an additional channel of support 
for Vanuatu to address its priority aid for trade need s. 
4.71.   Australia congratulates Vanuatu on notification against all categories in the WTO Ag reement 
on Trade Facilitation. We look forward to Vanuatu 's ratification of the TFA.  
4.72.   We also value Vanuatu 's reform efforts to introduce an Electronic Single Window Syst em for 
traded goods. Vanuatu is a leader in the Pacific in undertaking this ambitious reform, supported by 
the Enhanced Integration Framework and the Australian Department of Foreign Affairs and Trade. 
An Electronic Single Window System for traded goods wi ll enable substantial improvements in the 
costs, ease and security of traded goods crossing Vanuatu 's borders.  
4.73.   We also recognise positive developments in trade in the key sector of agriculture and 
understand that discussions are underway to initiate a Memo randum of Understanding between the WT/TPR/M/3 78 • Vanuatu  
 
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  Vanuatu Ministry of Agriculture, Livestock, Forestry, Fisheries and Biosecurity, and the Australian 
Centre for Intern ational Agricultural Research. This will enhance collaboration and provide a further 
boost to the agric ulture sector.  
4.74.   Australia congratulates Vanuatu in becoming the largest labour sending country under 
Australia 's Seasonal Worker Programme. Over 3340 ni -Vanuatu workers participated in the Seasona l 
Worker Programme in 2017 -18. Australia is also pleased to welcome Vanuatu into Australia 's new 
Pacific Labour Scheme, following the signing of a Memorandum of Unders tanding in September this 
year. Vanuatu is well placed to take advantage of the opportunities on offer.  
4.75.   As a final remark, as highlighted in the repo rts, Australia notes the significant impact natural 
disasters have on Vanuatu 's trade, and that of the region more broadly. To better understand and 
address the trade -related challenges that arise from natural disasters, Australia is supporting the 
WTO to explore this issue in more detail, with a particular focus on Pacific Island countries.  
4.76.   Australia applauds Vanuatu 's commitment to its various reforms, and its encouragement of 
economic growth and we wish Vanuatu a successful and constructive trade policy review.  
REPUBLIC  OF KOREA  
4.77.   Korea has developed a stable and sound economic relationship with Vanuatu since the 
establishment of diplomatic relations in 1982. Even though the trade volume overall is not large, 
bilateral trade in general has been gradually ex panding. To be specific, bilateral trade reached 
US$16  million in 2017, up from US$6.5 million in 2012 when Vanuatu acceded to the WTO. Over the 
review period, the volume of annual bilateral trade hit a record high of US$25 million as of 2014. 
Taking into account the complementarity between the two countries, Korea hopes that its economic 
partnerships with Vanuatu will continue to expand and develop in the future.  
4.78.   Let me now turn to the overall performance of the Vanuatu economy. Vanuatu has achieved 
an ave rage annual growth rate of 2.3% since its accession to the WTO despite the damages left by 
Cyclone Pam in 2015. The importance of trade for its economy, that is, the ratio of combined value 
of exports and imports to GDP, also had been increased from 93% in  2011 to 106% in 2016. We 
think that the trade policy framework prepared in 2012 and the one currently being updated have 
played crucial roles for the development of Vanuatu 's economy. The objectives of the trade policy 
framework were set to mainstream tra de into Vanuatu 's national development strategy as well as 
to enhance development through an increased export of goods and services. In particular, 
Vision  2030 aims to achieve stability, sustainability and prosperity in Vanuatu by 2030 through the 
increase  in trade and investment opportunities and the reduction of barriers, which will in turn 
enhance the access to markets for export.  
4.79.   With regard to the Trade Facilitation Agreement (TFA), Korea welcomes the notification of the 
Categories A, B and C commitme nts. We hope that Vanuatu will expedite the TFA ratification process 
and implement the obligations of WTO notifications in the areas of agriculture, intellectual property 
rights (IPR), Trade -Related Investment Measures (TRIMs), IL, quantitative restriction , etc. Vanuatu, 
pursuant to its accession to the WTO, committed to not imposing any discrimination against foreign 
participation in its government procurement. The Vanuatu Tenders Board Act requires the principles 
of seeking the best value for money while promoting open and effective competition. We hope that 
Vanuatu will positively consider the application of the Agreement on Government Procurement (GPA) 
in the near future.  
4.80.   My delegation has submitted, albeit somewhat late, our written questions to Vanuatu  
regarding regional trade agreements (RTA), import licensing, etc. We would like to thank Vanuatu 
for providing written replies to our questions. We will study them carefully.  
4.81.   In our modern global economy, trade is a crucial instrument for economic develop ment. Trade 
is the bridge connecting individual economies to the world economy  - it is also a major contributor 
to development at large.  
4.82.   In this context, Korea hopes that Vanuatu will expand its free trade network and continue to 
constructively participat e in the WTO multilateral trading system.  WT/TPR/M/3 78 • Vanuatu  
 
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  4.83.   In closing, we would like to express our sincere appreciation once again to the delegations of 
Vanuatu for their hard work and wish them every success in this first TPR.  
CHINA  
4.84.   We are pleased to see that since 201 2 Vanuatu 's economy has grown at an average annual 
rate of around 2.3% despite the impact of Cyclone Pam. We have confidence that with an estimated 
real GDP growth rate of 4% in both 2017 and 2018 according to the  IMF, Vanuatu will fully recover 
from the e ffects of Cyclone Pam soon. We hope Vanuatu could achieve stability, sustainability and 
prosperity through implementing its policy document, Vision 2030. China continues to be available 
to assist its efforts.  
4.85.   It is laudable that Vanuatu has strongly suppor ted the multilateral system and rejected the 
unilateralism since its accession to the WTO. It is committed to continue to make modifications to 
existing laws and regulations, and implement various measures to assure compliance with its 
commitments in the W TO. In this regard, we are encouraged by Vanuatu 's notification to the WTO 
on its commitments in Categories A, B, and C of Trade Facilitation Agreement. Meanwhile, we are 
looking forward to Vanuatu 's early ratification of Trade Facilitation Agreement.  
4.86.   Recent years have seen rapid growth of China -Vanuatu bilateral economic and trade 
cooper ation. Since 1 January 2015, China has granted zero -tariff treatment to 97% of products 
originating from Vanuatu as an LDC. And a new agreement on economic and technical co operation 
between China and Vanuatu was signed in August 2017.  
4.87.   In 2017, the bilateral trade in goods reached 79.8 million USD, increased by 16%, in which 
China 's imports from Vanuatu increased by 184%. China is cu rrently Vanuatu 's fifth largest source 
of imports, mainly petroleum and its products, telephone sets, cars and related parts. China is one 
of the main investing countries in Vanuatu. In the first 7 months of this year, China has invested in 
Vanuatu US$3.95 million.  
4.88.   China has provided eco nomic and technical assistance to Vanuatu over a long period of time, 
such as constructions, medical teams, training programs and humanitarian assistance, which has 
supported Vanuatu 's economic and social development. After Vanuatu was attacked by Cyclone PAM 
in March 2015, China immediately provided emergency humanitarian assistance worthy 30 million 
RMB. 
4.89.   China will further promote cooperation with Vanuatu through the Belt and Road Initiative. The 
first China International Import Expo will be held in Shang hai, and Vanuatu has confirmed to join 
us. We readily welcome more Vanuatu enterprises and products to China.  
4.90.   To better understand the latest development of Vanuatu 's trade policy, we have submitted 
some written questions in areas of agriculture, customs p rocedures and trade facilitation. We 
appreciate the replies provided by Vanuatu to our questions which we would duly study.  
4.91.   Currently, the WTO is facing s ystemic challenges that have to be dealt with the entire 
Membership. China would work with Vanuatu and  other Members to uphold the fundamental 
principles of this Organization, resist unilateralism and protectionism, and collectively safeguard the 
rule-based multilateral trading system.  
4.92.   To conclude, I wish this Review a complete success.  
INDIA  
4.93.   Since its accession to the WTO in 2012, the economy of Vanuatu has grown at an average 
rate of around 2.3%. Recently in 2018, the economy registered a higher growth rate of 4.5%. 
Vanuatu 's economy is mainly dependent on agriculture, subsistence level farming and fis hing. Trade 
in agriculture, fisheries, tourism, offshore financial services is important for Vanuatu. The country is 
also attracting significant foreign direct investment in the areas of tourism, telecommunication, food 
and wood processing. Being a small i sland country, Vanuatu also faces various challenges which 
include vulnerability to external economic stocks, susceptibility to natural disasters, narrow 
economic base, increasing pressure of population on land and addressing high public debt, poverty WT/TPR/M/3 78 • Vanuatu  
 
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  and infrastructural challenges. We commend the government of Vanuatu for its efforts to address 
these challenges with various measures including reforms in the economy, improved delivery of 
services, promoting investments and a business -friendly  environment an d efforts to widen the 
economic base.  
4.94.   India shares warm and friendly relations with Vanuatu. In 2014 an d 2016, two India -Pacific 
Island  Coopera tion Summit Forums have further strengthened and deepened our relations with 
Pacific Island countries including V anuatu.  
4.95.   Several initiatives and projects have been launched at the forums which include setting up of 
a special adaptation fund; increase in grant -in-aid projects; assistance for capacity building and 
human resource development with various training progra ms in India under India 's Technical 
Education Programme; strengthening development cooperation partnership in areas like healthcare, 
climate change, disaster risk management; projects for tele -education and telemedicine; 
establishing an institute for susta inable coastal and ocean research, a centre for training in space 
applications and IT laboratories.  
4.96.   A trade office for Pacific Island countries has been set up in New Delhi which will support 
development of MSMEs, extend assistance for promoting trade in a griculture, food processing and 
increasing yields of rice and sugarcane. Vanuatu is an active partner in these initiatives and projects. 
Besides, India is also assisting Vanuatu in project s in the areas of information communication 
technology, solar and ne w and rene wable energy and has extended  humanitarian assistance for 
cyclone Pam.  
4.97.   Chair, before I conclude, let me reiterate India stands committed to strengthen and deepen 
its development cooperation partnership with countries including Vanuatu under the I ndia-Pacific 
Island Cooperation framework.  
4.98.   We wish the delegation of Vanuatu a productive and successful TPR.  
SINGAPORE  
4.99.   We note the growing role of trade in Vanuatu 's economy, as well as positive developments 
that have taken place . Total trade accounted for 106% of GDP in 2016, up from 93% in 2011. Annual 
GDP growth has also grown at an average rate of 2.3% since its accession to the WTO in 2012. We 
also further welcome Vanuatu 's ongoing effort to update its Trade Policy Framework to "mainstream " 
trade in to the national development strategy and enhance development through increased exports 
of goods and services.  
4.100.   We are encouraged that Vanuatu has submitted its Category A, B, and C notifications under 
the WTO Trade Facilitation Agreement (TFA). However, we note that Vanuatu has yet to ratify the 
TFA, and we hope that it will do so as soon as possible. This will allow Vanuatu to avail itself to the 
flexibilities and technical assistance opportunities built into the Agreement. We also similarly hope 
that Vanua tu will ratify the Protocol amending the TRIPS Agreement in the near future.  
4.101.   Singapore recogniz es that capacity constraints may have limited Vanuatu 's participation in 
the WTO thus far. That said, we strongly encourage Vanuatu to consider devoting resource s towards 
enhancing its engagement in the WTO , especially given the growing role of trade in its economy. We 
note that there are some gaps in Vanuatu 's record of WTO notifications including in the areas of 
customs valuation, import licensing, and Agricultu re (export subsidies). We strongly urge Vanuatu 
to fulfil its notification obligations as soon as possible. Transparency is an essential pre -requisite to 
a predictable, rules -based trading system, which benefits all Members including  Vanuatu. The WTO 
Secre tariat, other relevant international organisations and development partners have capacity 
building and technical assistance programmes that could be of interest to Vanuatu in this regard. 
Finally, Singapore is also concerned that Vanuatu continues to apply  MFN tariffs on three lines in 
excess of its bound rates. This is an issue with systemic implications and we urge Vanuatu to bring 
its tariff regime into conformity with its WTO commitments as soon as possible.  
4.102.   We wish Vanuatu every success in its first Tr ade Policy Review.  
  WT/TPR/M/3 78 • Vanuatu  
 
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  GUATEMALA  
4.103.   We note that, as detailed in the report presented by the Secretariat, Vanuatu's economy is 
based principally on agriculture, fishing and tourism and that 80% of the population is dependent 
on agriculture. Land reserved exclus ively for cultivation makes up 40% of the country's 
1.2 million -hectare surface area. Commodity export prices and external demand have continued to 
drive the production sector in recent years. Forecasts indicate that the country's economy will 
expand by 3. 1% in 2018.  
4.104.   We note that Vanuatu is classified as a least developed country (LDC) and is exposed to 
natural disasters because of its geographical position. According to the United Nations World Risk 
Index, Vanuatu is the world's most at -risk country for na tural disasters, facing the specific risks of 
cyclones, volcano eruptions, earthquakes, and tsunamis. Despite this, Vanuatu has managed to 
achieve relatively good levels of economic development.  
4.105.   Coconut plantations cover most of the 40% of the country's su rface area that is reserved for 
agriculture. A 2007 agriculture census recorded around 9.7 million coconut trees planted on about 
119,384 hectares of land. It is important to emphasize that while the country's main agricultural 
export is copra, there are s till many opportunities for growth.  
4.106.   Fishing policy is focused on improving fisheries management and designed to facilitate access 
to the credit necessary to improve infrastructure and market access, guarantee product safety, 
create added value, encourage s ustainable growth and promote employment. This policy is crucial 
as 80% of the population live in rural areas and are dependent on fishing for food security.  
4.107.   Tourism also makes a significant contribution to GDP, accounting for 20%. According to the 
World T ravel and Tourism Council, travel and tourism directly supported 11,000 jobs, or 14.4% of 
employment, while its total contribution to employment, including jobs indirectly supported by the 
industry, was 39%, or 30,000 jobs.  
4.108.   Guatemala and Vanuatu have maint ained friendly relations over the years, as reflected by 
the close links forged in the Group of Small, Vulnerable Economies at the WTO. Despite the 
geographical distance between us, discussions within the Group have enabled us to identify more 
clearly the key characteristics and challenges common to our two countries and thus to combine 
efforts in seeking joint solutions.  
4.109.   In concluding, Guatemala would like to wish Vanuatu a rewarding and successful first Trade 
Policy Review.  
SANTA  LUCIA  
4.110.   Vanuatu is a small island developing state grappling with many of the same  developmental 
challenges being confronted by many SVEs, including generating economic and employment 
opportunities for its people, all the while addressing some other realities, the  harsh and unforgiving 
realities associated with climate change -related risks , in addition to seismic and volcanic threat s 
which continue to plague Vanuatu.  
4.111.   Vanuatu has nonetheless engaged a programme of economic reform and renewal , as 
encapsulated in Visi on 2030 , and that is , to my mind , an example of best practice, which others 
could replicate , and we wish the delegation of Vanuatu continued success in this endeavour.  
4.112.   My delegation also notes Vanuatu 's engagement in the Enhanced Integrated F ramework and 
believes that the re -development of Port Vila,  which I have had the opportunity to visit , is an example 
of best practice and is focused on realizing real economic opportunities for the people of Vanuatu 
and, in particular, women. This is an example of effec tive triangular cooperation that Vanuatu has 
benefitted from , and been a contributor to.  
4.113.   In the face of these challenges, Vanuatu has continued to demonstrate its commitment to 
the multilateral trading system, both through concrete steps taken to adhere to its obligations to 
this House, but also in the force and visibility of its representation at the WTO. Indeed, Vanuatu has WT/TPR/M/3 78 • Vanuatu  
 
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  been a constructive partner and has brought the spirit of Tangaroa  to problem  solving and addressing 
some of the more i ntractable challenges faced by M ember states.  
4.114.   In closing, allow me to congratulate the delegation of Vanuatu,  and wish Vanuatu a 
successful Trade Policy Review.  
CENTRAL  AFRICAN  REPUBLIC  ON BEHALF  OF THE LDC GROUP  
4.115.   During its first period of review, Vanuatu showed a c ertain dynamic of economic strength, 
with an average annual growth rate of 2.3 %, according to the Secretariat report.  
4.116.   The Vanuatu economy is mainly driven by the services sector, and especially tourism. Then 
comes the industrial and manufacturing sector an d the agricultural sector.  
4.117.   The Government of Vanuatu has achieved important regulatory reforms.  As noted, 
Vanuatu 's, Vision 2030is a  comprehensive development policy  aimed at achieving a stable, 
sustainable and prosperous country in the years to come.  In particular, this policy encourages trade 
by promoting investment, and providing economic opportunities for all members of society.  
4.118.   It is laudable that Investment incentives cover both agricultural production and the 
manufacturing sector with the aim of inc reasing the processing and value -adding of exported 
products and goods. This will have a beneficial effect on jobs and incomes for the population.  
4.119.   Vanuatu 's economy is stimulated by investments in infrastructure, including real estate, and 
by a relatively strong domestic demand.  
4.120.   Despite the preponderance of the services sector in Vanuatu 's GDP, the country is seeking 
to strengthen its primary sector by diversifying agricultural production and exploiting on a rational 
and sustainable basis its fishing resour ces. 
4.121.   Vanuatu also manages rigorously its monetary policy and seeks to avoid inflationary 
pressures while giving sufficient space to its banking system to finance economic activity.  
4.122.   While Vanuatu has surmounted setbacks from natural disasters and is on trac k to graduate 
soon from the LDC status, it must be recalled that even after graduation, WTO must work with 
Vanuatu to ensure the ease of graduation with the necessary flexibilities to phase into the new status 
in the WTO.  In addition, the debilitating and  severe impact from periodic disasters that are 
particularly devastating for s mall vulnerable island States.  
4.123.   On behalf of the LDC Group, the Central African Republic wishes Vanuatu every success in 
its structural reforms and development, as well as a full success of its Trade Policy Review.  
SOLOMON  ISLANDS  
4.124.   Solomon Islands align its statement with the statement made by Papua New Guinea on 
behalf of the Pacific Islands WTO M embers. As one of our closest small Pacific island developing 
countries in the region,  we join in solidarity with you as you go through this transparency exercise 
in the next couple of days.  
4.125.   Both the Secretariat report and the national report  of Vanuatu tell a story, a story similar to 
that in many small pacific islands  countries, where its  economy is concentrated on few commodities 
such as copra, cocoa, kava and fisheries, yet the level of resilience demonstrated by Vanuatu in the 
face of major challenges is remarkable.  
4.126.   Vanuatu 's economy is driven by i ts services sector, which account s for 87% of total exports 
in 2017 and contribute s around 69% to Vanuatu GDP. The t ourism sector alone, which is the 
mainstay of Vanuatu economy, contributes 20% to Vanuatu GDP and generate s employment 
opportunities for its people. However, this crucial sector i s constantly vulnerable to natural disasters 
due to the impact of climate change. In 2015 for example, tourist s' arrival was down by 17% as a 
result of the impact of cyclone Pam.  WT/TPR/M/3 78 • Vanuatu  
 
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  4.127.   At the multilateral level, Vanuatu membership to the WTO is very important fo r its overa ll 
development. The concessions  it made to open its economy during its accession and its recent 
decision to establish its Mission here in Geneva is a testament to its commitment and trust on the 
WTO and on the multilateral trading system.  
4.128.   With i ts average MFN applied tariff rate of 9.3% and 100% binding coverage, Vanuatu is one 
of the most open economies in the WTO.  
4.129.   Its guiding documents , namely  the Trade Policy Framework, National Development Strategy, 
and Vision 2030 provide the roadmap that ad dress the development needs of its people.  
4.130.   Vanuatu is making development progress. In a few years it will graduate from the LDC status.  
4.131.   However, Vanuatu will still need the support of Members of this O rganization to help further 
its development priorities  and also to enable it to sustain the progress it made and to mitigate the 
challenges ahead.  
4.132.   Finally, Solomon Islands wish the delegation of Vanuatu all the success for the remaining 
days of its review process.  
PAPUA  NEW  GUINEA  ON BEHALF  OF THE PACIFIC  ISLANDS  WTO  MEMBERS  
4.133.   This TPR comes after a few months of establishing its Mission in Geneva in February 2018. 
This milestone achievement signifies the commitment of the Vanuatu Government to the WTO and 
the multilateral trading system , and we look forward to working with Vanuatu to pursue the common 
trade interest s of your country and that of the Pacific I slands in the WTO.  
4.134.   Vanuatu is an important Member of the Pacific Gr oup and indeed of the regional and 
subregional t rade arrangements in the pacific region such, as the MSG, Trade A greement , PICTA 
and the recently  concluded PACER Plus. These efforts indicate the gradual and incremental approach 
to our integration and form the building blocks for our global integration, including the WTO. 
Members will recall Vanuatu's accession to the WTO was one of the longest accession negotiations 
in the WTO.  
4.135.   It took 17 years for Vanuatu to become a Member of the WTO in 2012. A long journey of its 
accession reflects the consultative and inclusive process that the successive governments had put 
in place for Vanuatu to attain full WTO membership. The in-depth  consultation process ensures that 
all national stakeholders, in particular the  Government , private sector , and non-government 
organization s in the different commitments of  Vanuatu in goods, services and other WTO 
agreements.  
4.136.   The Vanuatu country report and the WTO Secretariat report provide evidence that Vanuatu 
has been making progress on the political and economic fronts to implement its WTO obligations 
and commitments. Vanuatu is one of the Article XII member countries made significant commitments 
in its goods schedule of concessions  and special commitments in 9 out of 11 services sector s under 
the GATS.  
4.137.   To complement its accession to the  WTO, Vanuatu formulated its trade policy framework in 
2012. This trade policy framework is currently under review. Vanuatu reports a high  contribution of 
services sector , at 69% of GDP and employing between 30% and 40% of the local population. The 
tourism sector, in particular , contributes more towards the country 's economic growth and 
development.  
4.138.   The contribution of the services sector in Vanuatu's economy sets a  clear example for many 
island countries that rely heavily on goods , to learn from Vanuatu's experience and invest more in 
developing the services sector. The country's economy, however, still depends on a narrow range of 
exports , mainly raw  products  such as copra, cattle, cocoa, kava, fisheries, and logs. 
4.139.   Vanuatu , like many island  countries, is prone to natural disaster s that have a devastating 
effect on the country's economic activities. The two reports indicate the economic cost in million s of 
dollars caused by the 2015 tropical cyclone Pam  on Vanuatu. The trade  and economic implication s WT/TPR/M/3 78 • Vanuatu  
 
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  of a natural disaster on Van uatu is a genuine trade concern that should be associated with the 
environmental discussions  but must be addressed on its own merit s. 
4.140.   The Vanuatu Government has undertaken national reforms in various sector s, including 
standards and security , fisheries , to make trade policy work for the country.  
4.141.   This first Trade Policy Review offers a valuable opportunity for Vanuatu to stock and 
re-energize its efforts in identifying the challenges and opportunities that its membership to the WTO 
has channelled to date . While we commend the positive steps taken by Vanuatu to improve its trade 
policy and implementation, we also recognize that new challenges present themselves, including 
implementing its WTO obligations  in light o f capacity constraints. We note  the fact that Vanuatu will 
be graduating from LDC to a developing country , and this would exacerbate the challenges.  
4.142.   In this connection, we commend the WTO Secretariat for the assistance it has provided to 
Vanuatu  in training one of the officials in the last six years. The Pacific Islands F orum also h as 
contributed towards capacity -building of one of the officials, through hosting of one of the interns in 
the Mission here in Geneva.  
4.143.   In conclusion, we call on the WT O Members and development  partners to assist Vanuatu in 
addressing the remaining challenges, including the national reforms, WTO implementation through 
capacity building and technical assistance provided to the LDCs.  
4.144.   On behalf of the Pacific Group WTO Members, I wish Vanuatu every success in its trade policy 
review.  
  WT/TPR/M/3 78 • Vanuatu  
 
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  5  REPLIES BY THE REPRE SENTATIVE OF VANUATU  AND ADDITIONAL COMM ENTS  
5.1.  Chair, thank you for giving us the floor once again to provide some answers to the observations 
made during the 1st day of Vanuatu 's TPR.  
5.2.  Vanuatu would like to commend the discussant, H.E . Ambassador Spencer for her insightful 
and constructive observations and comments.   
5.3.  Chair, while a reality for Vanuatu as SIDS and an LDC, with the limited resources and capacities, 
we rema in committed to the multilateral t rading system and its transparency mechanism process.  
5.4.  Chair, Vanuatu is one of the most open economy since our accession to the WTO in 2012.  
5.5.  Chair, I would like to briefly respond to some observations raised and I would k indly 
recommend that M embers study careful the replies already submitted.  
5.6.  Pertaining to the general observatio ns made by the majority of the M embers during the 
interactions, we wish to provide the following responses.  
5.7.  We take note of the questions raised on "ease of doing business in Vanuatu ". And we wish to 
reassure the floor that this remains a priority for the Government. This is reflected in the Economic 
pillar of the Vision 2030 – The People 's Plan, and it is believed that having this in place will im prove 
business opportunities in Vanuatu.  Furthermore, the establishment of online portals for investment 
in Vanuatu will facilitate efforts to boost eco nomic development initiatives.  
5.8.  Trade Facilitation Agreement - Vanuatu would like to reassure W TO M embers  that it is 
committed to ratifying the Trade Facilitation Agreement in 2019.  
5.9.  On notifications - Vanuatu has taken good note and will endeavour to implement its 
commitments under the WTO on al l the areas raised by Members.  
5.10.   On diversification – we take no te of the comments from fellow M embers and wish to assure 
the floor that the Vanuatu Agriculture Policy 2016 -2025 and Vanuatu Vision 2030 are currently being 
rolled out to accommodate this process.  
5.11.   With regards to IPR – Vanuatu is pleased to advise that th ere is significant progress on this.  
5.12.   I will now provide responses to individual country observations.  
Australia and New Zealand  
5.13.   On the subject of r atification of PACER Plus, we wish to  first of all congratulate New Zealand 
for being the first country for r atifying the PACER Plus agreement and  inform the respective member 
countries that like other signatories to the agreement, Vanuatu is still undertaking its internal 
processes of ratification.  
New Zealand  
5.14.   Vanuatu 's contribution to the services sector , especially in the area of tourism, has been 
further strengthened with the launching of the "Trade Mainstreaming " Programme . 
5.15.   Additionally, Vanuatu has also taken measures in the productive sector to assist farmers in 
developing disaster resilient c rops. Th is is addressed in our reply in p age 8 of document RD/TPR/987.  
5.16.   Furthermore, on the observation of the additional measures in the area of access to electricity, 
including the transition to renewable energy, please refer to our respond on Section 4: Trade Po licies 
by Sector, sub -section title: Mining and Energy - page 6 of document RD/TPR/987 .  WT/TPR/M/3 78 • Vanuatu  
 
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  5.17.   On the subject of the effectiveness of the Investment Service Centre pilot scheme in terms of 
improving FDI facilitation , our response can be found on p age 5 of docume nt RD/TPR/987 
Section  2.4 -Investment Regimes.  
European Union  
5.18.   On the subject of Vanuatu 's prohibition of beef import from EU, please to refer to page 10 of 
document RD/TPR/987 and we note the additional questions provided to us, we will respond within 
the deadline accorded to us.  
5.19.   On the subject of Vanuatu 's intention to ratify IL O Convention 138 on minimum age,  Vanuatu 
takes note of the point raised and will endeavour to have the ratification in a timely manner.  
5.20.   We also take note of the point on accession t o the EPA and will notify the membership of our 
position once our internal processes are completed.  
United States of America  
5.21.   In relation to access to credit for local agriculture development, we wish to inform M ember 
countries that the Government is addres sing this as a priority under the Vanuatu Agriculture Policy 
2016-2025.  
5.22.   On the point pertaining to l abour rights and proper treatment  of workers on fishing vessels, 
we acknowledge the issue and wish to advise that the matter is being addressed.  
5.23.   Furthermor e, we wish to enlighten the member countries that the Government is addressing 
the issue of domestic regulatory reform.  
Canada  
5.24.   We take note of the M ember country 's statement.  
5.25.   On the subject of the p rotection of IP R, our response is provided on p age 18 of document 
RD/TPR/987 . 
Japan  
5.26.   On fisheries negotiations, we w ish to reassure the respective M ember country that Vanuatu 
will continue to ac tively participate in the WTO fi sheries subsidies negotiation.  
Argentina  
5.27.   On the subject of TRQs, we note the observati on raised.  
Republic of Korea  
5.28.   In relation to the Agreement of Procurement (GP A), our written response is on p age 23 of 
document RD/TPR/987. The current system is regulated by the Vanuatu Tenders and Contracts Act . 
China  
5.29.   On the observations raised in the ar eas of agriculture, customs procedures and trade  
facilitation, please refer to p age 24 of document RD/TPR/987.  
India  
5.30.   We note the Trade Office for the Pacific in New Delhi and will commit ourselves to fully utiliz e 
the opportunity it present s.  WT/TPR/M/3 78 • Vanuatu  
 
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  Singapore  
5.31.   We note your observations on the MF N tariffs on three lines in excess of its bound rates.  
Central African Republic  
5.32.   We note your observation and thank you for highlighting to us the challenges Vanuatu 's LDC 
graduation  will face . However , we would like to echo the call for flexibilities including loss of trade 
preferences given our vulnerability to calamities.  
Guatemala, St Lucia, Papua New Guinea and Solomon Islands  
5.33.   We note your observations and acknowledge your supporting  and encouragin g remarks.  
5.34.   Chair, with these remarks , I thank you for your attention.  
DISCUSSANT  
5.35.   I would like to use this opportunity to t hank Ms. Roline Tekon, Head of d elegation and the 
team from Vanuatu for the hard work and preparation towards this Review. I also thank Ms. Tekon 
for her comprehensive intervention  on Tuesday  which not only drew attention to progress which are 
being made by Vanuatu at the domestic level, including new developments, but also addressed 
issues raised in the Secretariat 's report. Respons es were also provided to specific questions raised 
by Members, as part of the process. This was a clear indication of the strength of the inter -agency 
coordination mechanisms already in place at the national level, and which we know from the reports 
that t he country has worked hard to build. This is an area in which we see Vanuatu as a Small Island 
Developing State providing a positive inspiration to other Members.  
5.36.   Further, this Tra de Policy Review was characteriz ed by a high level of interest and participa tion 
of Members, many of whom share strong historical ties with Vanuatu in a wide range of areas, 
including but not limited to trade.   
5.37.   Approximately ninety (90) written questions were received from some twelve delegations. 
There was also strong participat ion by delegations which commended Vanuatu on the review and 
the reports presented. Members also highlighted the close relationship existing among Vanuatu and 
the neighbouring countries within the Pacific region and initiatives which are currently being pu rsued 
in the  trade and economic domains.  
5.38.   In general, Members highlighted that since the country 's accession to the WTO in 2012, 
significant progress has been achieved on multiple fronts, including in the country 's economic and 
trading performance. They obs erved the continuing strong contribution of the services sector to the 
country 's economic growth and development and indicated that this should be further encouraged, 
along with targeted interventions in other economic sectors such as agriculture and fishe ries, 
telecommunications (IC T), transportation and energy. Vanuatu was also commended for its efforts 
to graduate from LDC status by 2020.  
5.39.   Several delegations also made positive reference to the strides which are being made by the 
country towards the imple mentation of its National Trade Policy Framework, as well as its National 
Development Strategy, Vision 2030, otherwise known as the People 's Plan. These efforts, along with 
the establishment of its Permanent Mission in Geneva in February 2018, were applaud ed. 
5.40.   Members also noted that active steps are being made by Vanuatu to enhance its participation 
within the multilateral trading system; reduce barriers to trade; increase trade and investment 
opportunities; stimulate increased economic diversification; exp and market access for the trade in 
key commodities and services and optimize economic and other benefits derived from trade 
agreements to w hich the country is signatory. In addition, Members welcomed Vanuatu 's notification 
under the Trade Facilitation Agre ement, of its Categories, A, B and C commitments to the WTO, the 
establishment by Vanuatu of its National Trade Facilitation Steering Committee in July 2017 and the 
current steps which are being taken by its Government to complete the ratification of the T rade 
Facilitation Agreement. It is our hope t hat this process will be finaliz ed within the shortest possible 
timeframe.  WT/TPR/M/3 78 • Vanuatu  
 
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  5.41.   Members, in their interventions, raised concerns about outstanding notifications, including on 
SPS measures, as well as the matter o f import licenses. A number of M embers also made reference 
to the country 's ranking in the World Bank 's Ease of Doin g Business Index and the need to more 
effectively streamline the processes to promote increased trade and investment flows to the country.  
5.42.   Vanuatu highlighted the need for additional support in a number of areas to further bolster 
efforts and initiatives which are already underway. These include: training for young p rofessionals; 
sea and land transport services to sup port agricultural development , aid for t rade support, technical 
and capacity -building support, inclu ding in the development of its intellectual property p rotection 
regime, as well as to enhance compliance in its reporting and notification obligations un der the 
various WTO Agreements.  
5.43.   In conclusion, I was privileged to have participated as a Discussant in Vanuatu 's Trade Policy 
Review. I wish to, again, heartily commend Vanuatu on what I believe is a successful Trade Policy 
Review and to further reiterate our joint commitment to supporting its continued efforts in the 
pursuit of its developmental goals and more importantly, the country 's enhanced participation and 
integration within the WTO and the multilateral trading system. I further wish to acknowledge the 
support rendered by Vanuatu 's Geneva Mission, including its Ambassador and Deputy Permanent 
Representative, as well as from the WTO Secretariat team.   
5.44.   I also wish to thank all M embers for their participation, as well as the Chairman, H.E. 
Mr. Eloi Laorou, for the able way in  which you have  steered these meetings and for your guidance 
through this review. T hank you.  
MALAWI  ON BEHALF  OF THE ACP GROUP  
5.45.   Since its accession in 2012, Vanuatu has continuously proven to be a strong supporter of the 
multilateral trading system. The cou ntry recognizes that trade plays an important role in its economic 
development, and continues to undertake policy initiatives and reforms consistent with its 
commitments and obligations at the WTO.  
5.46.   Governments initiatives include the "trade mainstream " program, which aims at informing its 
domestic constituencies on trade  related policies affecting them. Looking at macroeconomics 
indicators, Vanuatu 's economy has maintained a stable growth, averaging 2.3% since 2012. Despite 
facing difficulties subsequent to  a hard hit by the infamous Category 5 Cyclone PAM in 2015, 
Vanuatu 's economy showed resilience and was able to achieve macroeconomic stability through 
monetary policy; foreign reserves and inflation in 2017 and overlapping to the first the first quarter 
of 2018. We also salute the role of its government in engaging in infrastructure development 
projects, which have led to strong confidence in its economy, and expanding its industry sector and 
created jobs.  
5.47.   Vanuatu 's economy has showed a relatively good gro wth, and resilience over the years. This 
is illustrated in the fact that the country is predicted to graduate from its LDC status in a few years. 
Yet important challenges will remain for Vanuatu to overcome. Vanuatu is one of the most cyclone -
prone countie s on earth, and where damages have strong negative effects on its economy. In 2015, 
the infamous Tropical Cyclone PAM that hit the country, exposed the vulnerability of its economy, 
particularly the agriculture sector in which subsistence farming accounts for 80% of its population. 
In view of Vanuatu 's graduation, we call on all WTO Members to continue supporting Vanuatu, 
through various multilateral mechanisms such as Aid for Trade, the EIF, or through the granting of 
policy space, for the country to overc ome future challenges after graduation.  
5.48.   The ACP Group congratulates Vanuatu for all of its continuous efforts and reforms supporting 
its objectives domestically and globally. To conclude, the ACP Group wishes Vanuatu every success 
in implementing initiativ es that seek to improve its economy, and call on all Members to continue to 
support Vanuatu in seizing opportunities, and to overcome the challenges ahead.  
EUROPEAN  UNION  
5.49.   Let me first thank the delegation of Vanuatu for the comprehensive overview presented last 
Tuesday and today of the main developments occurred during the review period. The EU is pleased WT/TPR/M/3 78 • Vanuatu  
 
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  to note that this review has been very useful for better understanding the trade policy of Vanuatu 
and hopes that it will duly take into account some of the challenges highlighted by Members.  
5.50.   The EU appreciates the timely replies provided to the EU questions. As you have noted, we 
have submitted only one follow -up question related to import of beef from Europe on which we are 
seeking further clarification and confirmation.  
5.51.   In conclusion, the EU thanks Vanuatu for their constructive participation in this exercise.  
UNITED  STATES  
5.52.   We sincerely thank you, the Head of delegation Mrs. Tekon, and Ambassador Spencer for your 
insightful remarks this morning. We would also like to express our appreciation to the Secretariat 
and to the entire Vanuatu delegation for their constructive and diligent efforts throughout their firs t 
Trade Policy Review. Congratulations on a successful review.  
5.53.   We recognize all of the hard work involved in the review process and thank the delegation for 
the detailed responses provided to our questions. Our authorities in Washingto n are reviewing them  
carefully.  
5.54.   We applaud the G overnment of Vanuatu on the steps it has taken to promote economic growth 
and to ensure the centrality of trade in its long -term development plans. Vanuatu 's average annual 
growth rate of 2.3% since 2012 and its expected growth rate of 4.5% in 2018 is a testament to its 
economic resilience. We further commend Vanuatu on its commitment to the WTO and its sustained 
work towards graduating from LDC status in 2020.  
5.55.   We note with particular interest Vanuatu 's commitment to ratify the Trade Facilitation 
Agreement and to address outstanding notifications. We are pleased to hear that Vanuatu is taking 
steps towards these outcomes through the work of the National Trade Facilitation Steering 
Committee and by convening a workshop in 2019 to address issues faced by national agencies in 
meeting notification requirements. We are glad that Vanuatu will continue to pursue regulatory 
reforms that support the business environment.  
5.56.   Finally, we look forward to Vanuatu 's continued active engagement in  the WTO and increased 
future presence in Geneva. Please accept our best regards and our wish for safe travels to those 
returning to capital.  
JAPAN  
5.57.   Japan highly commends Vanuatu 's intention towards ratification of the Trade Facilitation 
Agreement. It defin itely contributes  to facilitation of trade and the economic development in 
Vanuatu.  
5.58.   Also, Japan truly appreciates Vanuatu 's continuous efforts for its active engagement in the 
fisheries subsidy negotiations.  
PAPUA NEW  GUINEA  ON BEHALF  OF THE PACIFIC  GROUP  
5.59.   I wish to commend  Vanuatu for presenting its trade policy report and for the response that 
they ha ve been able to submit to this R eview. Vanuatu had undertaken comprehensive commitments 
in its WTO accession back in 2012 but, like other LDCs and Pacific Isl and states, remains in the 
margins of the global trading system.  
5.60.   Vanuatu faces capacity constraints, non -tariff barriers and high trade costs , which limit its 
ability to benefit from the trade agreements under the WTO. In addition, the growing frequency an d 
intensity of natural disaster s in our region also affects Vanuatu 's ability to develop its trade capacity. 
It is notable , though, to see that Vanuatu had  adopted its first National Trade Policy Framework in 
2012 and this framework is currently under revi ew to modernize it, improve its effectiveness and 
facilitate the mainstreaming of trade into national poli cies including  sectoral policies. The current 
National Trade Policy Framework is carried by the National Trade Development Committee , 
comprising gover nment departments, private sector and partners  present in Port Vila . WT/TPR/M/3 78 • Vanuatu  
 
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  5.61.   The Committee  chaired  by the Minister of Trade , reflects the high -level commitment that 
Vanuatu places  on its trade policy. The new Trade Policy F ramework would also contribute to the 
better coordination of trade -related reforms and the implementation of the regional and subregional 
trade arrangements.  
5.62.   The Pacific Group notes Vanuatu 's ongoing efforts to make its trade policy comprehensive and 
transparent, and encourages Vanuatu to continue with the implementation of the remaining reforms. 
The Pacific Group also calls on the WTO Members and other partners to assist Vanuatu,  as we stated 
previously in our opening statement , to provide required techni cal assistance and capacity building 
to full y implement its reform and in its trade capacity.  
5.63.   On behalf of the Pacific WTO Members, I wish Vanuatu every success.  
MRS.  ROLINE  TEKON  (HEAD  OF DELEGATION)  
5.64.   As this is the first ever TPR of Vanuatu, we would like  to take this opportunity to convey our 
sincere appreciation and gratitude to the WTO Secretariat for the work it has done to facilitate this 
process , and to the D iscussant for the very valuable and constructive intervention at the beginning 
of this proces s. This has positively set the scene for a fruitful review.  
5.65.   Vanuatu 's vulnerability to natural calamities requires a multilateral solution  that WTO 
Members consider including in the multilateral trade discourse . The trade and economic implications 
of the n atural disaster on Vanuatu and other island countries is a genuine trade concern that should 
not be associated with the environmental discussion but must be addressed on its own merit.  
5.66.   We wish to reiterate that , after our LDC graduation in 2020, the multil ateral rules base d 
system of the WTO should provide appropriate flexibilities to better integrate small vulnerable 
Members , such as Vanuatu.  
5.67.   At this juncture, I wish to acknowledge the Members with which Vanuatu has bilateral 
cooperation , and have contributed greatly to the economic prosperity and added value to the 
livelihood of our people. Through your generous support , the Government of the Republic of Vanuatu 
has achieved various priority objectives under the Vision 2030.  
5.68.   In closing, I  wish to thank all the Members that have contributed to this process by submitting 
their very important questions to us. These questions have , and will , assist us in better shaping our 
trade policies in order to effectively participate in the WTO negotiati ons and comply with the WTO 
rules and obligations. Thank you for your attention.  
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  This first Trade Policy Review of Vanuatu has offered us a good opportunity to deepen our 
understanding of recent developments in, and challenges to, its trade, economic, and investment 
policies. I would like to thank the delegation from Vanuatu headed by Mrs. Roline Tekon, Acting 
Director General in the Ministry of Foreign Affairs, International Cooperation and External Trade, for 
their constructive engagement throughout this exercise. I would also like to thank our discussant, 
Ambassador Cheryl Spencer, Permanent Representative of Jamaica to the WTO, for her interesting 
and insightful remarks, as well as the 19 delegations which took the  floor, for their active 
participation in this Review.  
6.2.  Members noted Vanuatu 's considerable strides in improving its economic and trade 
performance since its accession to the WTO in 2012. They highlighted that, despite the extensive 
damage caused by Cyclon e Pam in 2015 and Vanuatu 's considerable exposure to natural disasters 
and climate change, it had managed to achieve reasonable growth rates and been able to maintain 
a positive economic outlook. Vanuatu 's per capita GDP has reached US$2,900, and its gradu ation 
from LDC status is expected in a few years.  
6.3.  Members commended Vanuatu on its national development strategy launched in 2017, 
Vision 2030, and the adoption of a trade policy framework in 2012, which both focus on 
mainstreaming trade and investment int o the overall development agenda. While commending 
Vanuatu for these achievements, Members also noted the challenges remaining in some areas, 
including the need to step up efforts to diversify the production and export base, as well as alleviating 
poverty and promoting social inclusion, particularly in rural areas.  
6.4.  Against the background of the growing role of trade in its economy, Vanuatu 's initiatives to 
integrate into the multilateral trading system were greatly appreciated. Members valued Vanuatu 's 
strong commitment to the WTO and welcomed its recent opening of a permanent mission in Geneva. 
Members noted Vanuatu 's active pursuit of regional integration and the conclusion of free trade 
agreements, most notably in the South Pacific.  
6.5.  Members praised Vanuat u for its open trade and investment regime, with relatively low average 
tariffs and considerable reductions in customs clearance times. In that context, some concerns were 
expressed regarding applied rates exceeding bound rates for a few tariff lines. Noti ng the importance 
of comprehensive policy reforms together with trade liberalization, Members also underlined the role 
that technical assistance had played in improving Vanuatu 's business environment and enhancing 
the understanding of WTO principles. Membe rs commended Vanuatu on the notification of its 
category A, B, and C commitments under the Trade Facilitation Agreement, but also noted that the 
country had not yet ratified it. Members strongly encouraged Vanuatu to ratify the TFA in the near 
future. Memb ers also urged Vanuatu to fulfil its notification obligations in areas such as agriculture, 
SPS, TBT, customs valuation, import licensing, and contingency measures.  
6.6.  On investment, Members praised Vanuatu 's general openness to FDI and its recognition of the  
important impact it can have on economic development. At the same time, Members encouraged 
further domestic regulatory reforms to continue improving Vanuatu 's business environment with a 
view to facilitating commercial activity and stimulating growth. Mem bers also took note of Vanuatu 's 
positive steps to establish and strengthen an intellectual property rights protection regime, including 
the institution of the Vanuatu Intellectual Property Office.  
6.7.  On agriculture, many Members noted the significance of th is sector for Vanuatu 's exports and 
rural development, and encouraged Vanuatu to further support the improvement of rural living 
standards, for example through better access to credit and basic energy services. On fisheries, 
Members appreciated Vanuatu 's active role in the WTO negotiations on fisheries subsidies and 
commended it for its efforts to combat illegal, unreported and unregulated (IUU) fishing activities. 
On services, Members noted that this sector is the mainstay of Vanuatu 's economy, contributin g 
about two thirds to GDP. It was recognized that due to Vanuatu 's increasing popularity as travel 
destination, the sector is largely driven by tourism, which is a major foreign exchange earner and 
provider of formal employment. The information and communi cations technology (ICT) and transport 
subsectors have also gained important momentum during the past years.  WT/TPR/M/3 78 • Vanuatu  
 
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  6.8.  Vanuatu has provided answers to all of the written questions, around 90, raised by Members. 
This TPR will be successfully concluded once Vanuatu ha s replied to all outstanding follow -up 
questions that emerged during the meeting in a month 's time. I hope that the discussion held during 
this Review will prove useful to Vanuatu in the continued implementation of economic and trade 
reforms and in its pur suit of policies to achieve sustainable growth.  
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