WORLD TRADE  
ORGANIZATION  WT/TPR/M/215 
10 June 2009 
 (09-2811) 
Trade Policy Review Body 
6 and 8 May 2009  
 
 
 
TRADE POLICY REVIEW 
 
SOLOMON ISLANDS 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Istvan Major (Hungary) 
 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF SOLOMON ISLANDS 4 
III. STATEMENT BY THE DISCUSSANT 8 IV. STATEMENTS BY MEMBERS 11 
V. REPLIES BY THE REPRESENTATIVE OF SOLOMON ISLANDS AND ADDITIONAL 
COMMENTS  25 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 34 
 
Note:   Advance written questions by WTO Memb ers and the replies provided by Solomon Islands 
are reproduced in document WT/TPR/M/215/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/215 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The second Trade Policy Review of Solomon Is lands was held on 6 and 8 May 2009.  The 
Chairperson H.E. Mr. Istvan Major (Hungary) welc omed the delegation of Solomon Islands, headed 
by Mr. Wiliam Haomae, Minister of Foreign A ffairs and External Trade, and the discussant, 
Mr. Jaime Chun-Wei HO (Singapore).   
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by  Solomon Islands was contained in document 
WT/TPR/G/215 and that of the WTO Secretariat in WT/TPR/S/215. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegation of Solomon Islands:  the United States;  Australia;  
the European Communities; Canada, and Japan.  All advance questions, as well as the responses 
received from the delegation of Solomon Isla nds are reproduced in WT/TPR/M/215/Add.1. 
4. The following delegations had submitted written questions after the two-week deadline:  
Korea and Chinese Taipei. 
5. The Chairperson said that he had considered  the Secretariat and Government Reports 
prepared for this meeting.  Both reports noted that  economic growth since the end of civil strife in 
2003 had been robust but highly dependent on the unsu stainable exploitation of forestry resources.  
The reports described reform efforts to deve lop sources of balanced growth.  These included 
improvements in customs procedures, tariff reductions, the rationalization of fiscal incentives, and the adoption of new laws on foreign investment, state- owned enterprises, and civil aviation.  In this 
respect, he believed that Members would be inter ested in learning more about how Solomon Islands 
authorities planned to consolidate recent reforms, and what were their future policy priorities to 
achieve more balanced growth.  With respect to tariffs, the report by Solomon Islands noted that 
Solomon Islands planed to conduct "a comprehensive review and rati onalization of current MFN tariff 
policy".  He noted that Members would like to ha ve detailed information from the Solomon Islands 
delegation on the rationale a nd objectives of this review. WT/TPR/M/215 
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  II. OPENING STATEMENT BY THE REPRES ENTATIVE OF SOLOMON ISLANDS 
6. I am delighted to be here in Geneva to discu ss Solomon Islands’ trade policy with you all. On 
behalf of my Government, I would like to thank the Secretariat for their report (WT/TPR/S/215).  
Alongside Solomon Islands’ Policy Statement (WT/TPR/G/215), it provides a comprehensive account of the state and direction of change of the country ’s trade policy and practice.  I shall take this 
opportunity to reemphasise some of the most important challenges and opportunities that Solomon 
Islands currently faces in improving its trade policy for the benefit of its people and major trading partners. 
7. It has been more than a decad e since Solomon Islands’ first Trade Policy Review in 1998.  
The intervening years have been a challenging time for the country, with a period of ethnic violence 
and civil unrest referred to as the ‘tensions’.  The civil unrest severely undermined the basic 
functioning of Government until the intervention of the Regional Assistance Mission to Solomon Islands (RAMSI) restored security in 2003.   
8. In the years since the intervention began, the economy has rebounded strongly and 
Government has worked hard to rebuild its physi cal and institutional infrastructure to pre-tension 
levels.  Donor support has been instrumental in th is process, and highly effective in restoring the 
competence of key Government agencies.  However,  it has been narrowly focused in a few strategic 
areas, and in reality many of the line ministries ha ve received negligible s upport and have recovered 
little of their prior operations.   
9. Many ministries were severely affected by the tensions. And this further weakened their 
capacity to comply with WTO obligations includin g those relating to notifications. Building the 
capacity of these ministries will be a lengthy and challenging process.  
10. In this context, my Government is pleased to  note that the Director-General in his recent 
statement has highlighted some of our concerns in the following words:  “We could make better use of 
technical assistance, focus more on the capacity of  members to comply with their notification 
obligations and better prepare them for a more e ffective peer review. We could better operationalize 
Trade Policy Reviews. We could also redesign  notification formats so that they become 
multipurpose”.  
11. To this end, my Government welcomes any support that can be offered by the WTO 
Secretariat and its Members to build institutional capacity to enable us to participate effectively in and 
benefit from the multilateral trading system.  Further, we fully support any simplification of notification procedures that would reduce the admi nistrative burden on least-developed countries such 
as Solomon Islands. 
12. Aside from the tensions, Solomon Islands is al so subject to external shocks. In 1998, the 
Government faced serious challenges with the dec line of logging exports resulting from the Asian 
financial crisis. Today, the country is also facing the dual threats of imminent exhaustion of supply of 
logs, coupled with a contraction of demand in logging exports due to th e global economic crisis. 
Unfortunately, Solomon Islands does not have the capacity to provide broad stimulus packages 
similar to those that have been provided by richer nations.  
13. Given the limited options that we have, my Gove rnment is obliged to prioritise needs and the 
protection of our rural communities.  The Government w ill have to take great care to ensure that all 
these economic challenges we currently face do not have  similar social and political repercussions to 
those experienced in the wake of the As ian financial crisis in the late 1990s.  WT/TPR/M/215 
 Page 5 
 
 
  14. Solomon Islands is also very prone to natu ral disasters such as cyclones earthquakes and 
tsunamis. For example, the recent cyclone in 2005 an d the tsunami in 2007 affected major parts of the 
country. These natural disasters destroyed lives, basic infrastructure, homes and crops. The Government had to divert funds that were mean t for development projects in order to address the 
problems caused by natural disasters.  
15. In addition to the challenges that we fa ce within the Government itself, our economic  
recovery has been narrowly based on unsustainable levels of growth in the logging sector.  The 
decline of logging exports poses a serious challenge  on Government revenue and this will undermine 
our objectives of using trade as a tool to fight pove rty.  The decline in the logging exports will also 
hinder us from achieving our Millennium Development Goals.  
16. It is within this unsettling context that So lomon Islands’ current trade policy should be 
viewed.  I hope that the current challenges that So lomon Islands is facing will help the Members to 
understand why it has been difficult for us to comply fully with our WTO commitments.   However, I would like to reaffirm Solomon Islands’ full comm ittment to the rules-based multilateral trading 
system. The Government will make every effort, within the confines of its administrative and 
financial constraints, to ensure that its trade po licies and practices are brought in line with the WTO 
rules. 
17. I am certain that various programmes managed by my Ministry under the Enhanced 
Integrated Framework programme will accelerate the implementation of many of the necessary changes. This will also assist Solomon Isla nds to comply with its WTO obligations. 
18. Solomon Islands is sincerely committed to usin g targeted liberalisation programmes to reap 
economic benefits in the areas where it has compara tive advantage.  The Government does not have 
the institutional capacity to successfully implemen t broad-ranging, simulta neous reform. The only 
way in which we can benefit from trade liberalisati on is to focus on areas where we have competitive 
advantages. This approach will enable us to main tain strong local ownership of the liberalisation 
programmes. In this context, the Government deci ded to unilaterally cut its average import duties 
from 23 per cent to around 9 per cent since the last Review.   
19. However, given the lack of available data  on Solomon Islands’ ec onomy and Government’s 
weak analytical capacity, this recent initiative to lower tariffs is viewed as an experimental measure.  
We hope that the data we are currently gathering on  the impact of this reform on trade volumes and 
revenue will confirm the expected net benefits of this move.  
20. Solomon Islands is committed to evidence-base d policy making. And in this context, the 
Government was only able to take such a bold and experimental measure to lower its tariffs in a 
context of such sparse information because we were aw are that we have sufficient flexibility to adjust 
our tariffs in the event that the move does not pr oduce the desired results. We believe that this 
exercise illustrates the importance of policy space. 
21. Solomon Islands looks forward to a successful c onclusion of the Doha Round. To this end, I 
would like to urge all WTO Members to ensure that  the development dimension is placed at the core 
of the Doha Round.  In this context, Solomon Islands  is pleased to inform th e Members that it is one 
of the six least developed countries that have alr eady bound one hundred per cent of their tariff lines.  
This is significantly more than what the LDCs ar e required to do in the Doha Round.  During the 
entire period under review, the vast majority of So lomon Islands’ applied ra tes have remained well 
below our bound rates. 
22. Another area in which my Government perceiv es immediate liberalisation to be a particular 
priority is within the telecommunications sector. The Government is currently engaged in active WT/TPR/M/215 
Page 6  
 
  negotiations with the incumbent monopolist, Solomon Telekom, to establish a legal basis for the early 
termination of an exclusive license that would otherwise extend until 2018. 
23. Given the early state of negotiations, it would be premature to prejudge the outcome, in 
particular the date on which additi onal firms will be permitted to ente r or the possible continuation of 
any restrictions on market access.  Nonetheless, my  Government will make every effort to bring 
negotiations to a mutually satisfactory conclusion wi thin the coming months. It will also ensure that 
substantial improvements are made to the priority subsectors of cellular telephony and internet access. 
24. Solomon Islands has also undertaken positive re forms in the area of investment.  A new 
Foreign Investment Act which was adopted in  2005 simplified the registration and approval 
procedures. The number of activities reserved for do mestic investors was also reduced from 54 to 14. 
In addition, the Government passed the new Company Act and the Companies Liquidation and 
Receivership Act in April 2009 to create an investment friendly environment. The Government will continue to review its investment laws to re duce the cost of doing business in Solomon Islands. 
25. My Government knows from experience that trade liberalisation is not sufficient on its own to 
stimulate the type of sustainable, pro-poor economic  growth that we seek.  For small, vulnerable 
economies such as Solomon Islands, transportation problems including the long distance from major 
markets, supply-side constraints as well as market a ccess barriers make it very difficult for us to reap 
the benefits of trade liberalisation. 
26. In order for Solomon Islands to derive the ma ximum benefits from trade liberalisation, we 
need Aid for trade to improve infrastructure, build productive capacity and strengthen Government 
services that are necessary to facilitate trade and economic growth.  
27. The Government also faces serious challenges in  the development of the fisheries sector.  
Solomon Islands presently enjoys high preferential ta riffs into the European Union on tuna, a product 
which has enormous export potential for us.  However,  the Government is concerned that its capacity 
to utilise these preferences is being hampered by stringent sanitary and phytosanitary (SPS) 
requirements that are imposed by the European Community.  
28. Solomon Islands needs additional assistance to upgr ade its Competent Authority to be able to 
comply with the stringent EU sanitary and phytosanit ary requirements to achieve List One status. We 
are concerned about the rate at which non-tariff ba rriers including official and private standards as 
well as requirements relating to Illegal, Unreported a nd Unregulated (IUU) fishing are proliferating. If 
these issues are not addressed effectively, it will be very difficult for small island nations like 
Solomon Islands to benefit from trade.  
29. We are very grateful to the European Comm ission for coming forward with a substantial 
assistance programme to address these problems.  W ithout such aid, countries like Solomon Islands 
have little hope of ever keeping pace with the advanc e of technical standards in developed countries.  
30. Solomon Islands is also concerned about the er osion of preferences as a result of the tariff 
liberalisation both at the multilateral as well as at the regional level.  We would like to urge all WTO 
Members to find a lasting trade and development solution to this problem. 
31. Like other least developed economies, we are re liant on the effective and timely provision of 
Aid for Trade in order to adequately address all of these varied concerns. For Solomon Islands, Aid 
for Trade is coordinated and managed through the In tegrated Framework process.  Solomon Islands’ 
first Diagnostic Trade Integration Study was presente d to a national validation workshop in December 
last year. The final version is expected to be finalised within the next few weeks.    WT/TPR/M/215 
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  32. Despite the many challenges of successfully co mpleting such a comprehensive assessment of 
the trade-related priorities of the country in an ar ea in which very little research so far exists, we are 
pleased to be nearing the implementation phase. The Integrated Framework process has so far been 
highly effective in ensuring that Aid for Trade priorities are determined by the most important 
stakeholders in-country and not donor driven.  It will  also ensure that funds are predictable, effective 
and additional to historical resources.  In this co ntext, we would particularly like to thank the IF 
Secretariat, whose timely and effective response to  the problems faced by earlier IF countries have no 
doubt smoothed Solomon Islands’ e xperience with the programme. 
33. We look forward to the programme becoming even  more streamlined this year, when the UN 
Office for Project Services takes over much of  the operational support of the scheme.  The 
Government is optimistic that this improvement w ill effectively address many of the delays Solomon 
Islands faced in the early stages of our programme.  I am delighted to note that many of the Aid for 
Trade concepts proposed in our draft DTIS have al ready been converted into draft project proposals, 
ready for discussion with potential donors.  In additi on to bilateral discussions, we hope that these will 
be favourably considered by donors at a Regiona l Round Table Meeting of Pacific island countries 
with interested donors next month in Samoa. 
34. It is clear to me that the challenges my Gove rnment faces are by no means unique to Solomon 
Islands, but many are shared by other small, vul nerable economies and leas t developed countries.  
Solomon Islands would like to thank various groups such as th e LDCs, SVEs and ACP countries 
which have been supporting the needs of smaller Me mbers. This has helped us to gain a greater 
understanding of how the multilateral trading system can accommodate our particular needs.   
35. Solomon Islands will continue to work with all the WTO Members to ensure that all its trade 
problems are addressed. We are fully committed to  the multilateral trading system as it provides 
predictability and transparency which is impor tant for promoting trade and investment. The 
multilateral trading system acts as an insurance policy which protects small countries like Solomon 
Islands from being further marginali sed from the global trading system. 
36. However, in order to ensure that the WTO delivers benefits for all including the poorest 
Members like Solomon Islands, I would like to clos e by urging Members of the importance of fully 
implementing the commitments that they made to LDCs in 2001 in Doha which were captured in the 
following words:  “We recognize the particular vulnerability of  the least-developed countries and the 
special structural difficulties they face in the gl obal economy. We are committed to addressing the 
marginalization of least-developed countries in int ernational trade and to improving their effective 
participation in the multilateral trading system. We recall the commitments made by ministers at our 
meetings in Marrakesh, Singapore and Geneva, and by  the international community at the Third UN 
Conference on Least-Developed Countries in Brussels, to help least-developed countries secure 
beneficial and meaningful integration into the multilateral trading system and the global economy. 
We are determined that the WTO will play its par t in building effectively on these commitments under 
the Work Programme we are establishing”.  
37. Solomon Islands firmly believes that trade can pl ay a vital role in lifting thousands of people 
from economic malaise, underdevelop ment and poverty.  We will c ontinue participating in the 
multilateral trading system with the hope that our concerns will be fully addressed and that all the 
pledges on Aid for Trade and promises to support LD Cs to participate in and benefit from trade 
liberalisation will be fulfilled.   WT/TPR/M/215 
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  III. STATEMENT BY THE DISCUSSANT (MR. JAIME CHUN-WEI HO (SINGAPORE)) 
38. Since the last time we reviewed the Trade Policy of Solomon Islands , developments there 
have been dominated by the instability and the lengt hy dislocations of the so-called "tensions" from 
1999 to 2003. Even before the tensions, relativel y strong economic performance in the early 1990's 
was eventually checked by the Asian Financial Crisis.   
39. My remarks this morning will focus on tw o areas: recognising some of the positive 
developments that have taken place since the end of the tensions, and drawing attention to the dangers 
that still lurk in the near future .  In the seeds of Solomon Islands' recent recovery also lie warnings 
that should be heeded in good time. 
40. For now, with the good work provided by th e Regional Assistance Mission to Solomon 
Islands (RAMSI) since July 2003, the country has taken definitive steps towards recovering from the 
traumas of the early years of this decade.  Some  political stability has returned, and economic growth 
has been encouraging.   
41. Since 2003, Solomon Islands has benefited from an  economic recovery that has exceeded 5% 
every year.  In 2007, growth reached a remarkable  peak of 10.3%.  Estim ates for growth in 2008 
range from 5% to 7%.  Despite this, the fact is th at Solomons remains an LDC, and still ranks as one 
of the poorest Pacific Islands. As I describe the ove rall picture of Solomon Islands' economy, I believe 
some of Solomon Islands' more immediat e challenges will also become apparent. 
42. First, trends in the overall sectoral compositi on of Solomon Islands economy are worrying.  
The economy is dominated by the agriculture, forest ry and fishery sectors, and this is a trend which 
has in fact deepened in recent years.  The sect ors in 2007 comprised 57% of Solomon Islands GDP, 
compared to 44% in 2000.  While services still commands a healthy chunk of GDP at 37%, this 
represents part of a downward trend since 2000, when the percentage was approximately 45%.  
Attention will no doubt have to be focused on how Solomon Islands  can effectively diversify its 
economy as it heads towards an imminent depletion of logging resources.   
43. In terms of fiscal policy, Solomon Islands has ta ken on a generally expans ionary stance.  Both 
fiscal spending and revenue have in  general been expanding rapidly si nce 2003.  The Solomon Islands 
government has in recent years made efforts to stre ngthen and clarify its fiscal regime.  Tariff rates 
have been lowered, primarily to reduce evasion,  and efforts to streamline through automation and 
rationalise tax exemptions have contributed to this.   
44. Linked to Solomon Islands' fiscal stance is inflation. On a 3-month moving average, inflation 
rose to 16% in June 2008, from 10% at end 2007.  Th e IMF has suggested that rapid private sector 
credit growth since 2004, its expansionary fiscal polic y, and the rise in international commodity prices 
have of course been contributory factors.   
45. Reflective of the expansion of Solomon Islands ' economy since the end of the tensions, total 
merchandise trade also grew by 187% between 2000 and 2007.  Given the structure of the Solomon 
Islands economy, it is no surprise that primary products, which represent some 99% of exports, 
contributed largely to the overall boom in exports.  Imports – of which manufacturing is by far the 
largest sector – also grew substantially, from a value of $69 million in 2002 to $251 million in 2007.  
As for trade in services, Solomon Islands has enjo yed a trend of growing surpluses from 2002.  This 
surplus, however, is expected to diminish in 2008. 
46. The key challenge facing the economy of Solomon Is lands in the medium, if  not short term, is 
its ability to diversify its economy beyond the current  overdependence on logging.  The end of the 
road is clear: logging is already e xpected to decline this year, and r esources will become negligible in  WT/TPR/M/215 
 Page 9 
 
 
  the coming years.  As I have described, exports are heavily skewed towards timber, and as such 
contribute immensely to government tax revenue.  Once logging hits its inevitable decline, it is 
essential that the physical, government and human re source infrastructures are in place to tap on other 
sources of growth, such as mining (in particular gold), palm oil production, tourism and services.   We look forward over the course of this TPR, to listening  to the views of the Solomon Islands on how it 
plans to undertake these vital structural reforms,  the timelines involved, and how, where necessary, 
the international community can assist in the process. 
47. Separately, a running theme in the Secretariat’s report on the overall economy of Solomon 
Islands is the need to strengthen government ins titutions, and a lack of predictability in rules, 
regulations and legislation.  This is a theme wh ich will also recur as I now go into Solomon Islands’ 
specific trade regimes and policies.    
48. Despite the country’s dependence on trade, the Secretariat’s report has noted that [quote] 
“trade policies have not received the required attention in the country’s overall development 
strategies.”  Given its limited resources, Solomon Isla nds has focused its attention to a larger extent 
on the development of regional and other trade agre ements, and has admittedly taken a lower priority 
towards participation at the WTO and the multilatera l trading system.  While the government is aware 
of its WTO commitments, many have unfortunately not been implemented.  Since the establishment 
of the WTO, Solomon Islands has also only made th ree notifications – two of which were related to 
the notifications on the Pacific Islands Countri es Trade Agreement (PICTA) and the Melanesian 
Spearhead Group (MSG).  Besides these agreements , Solomon Islands is party to several other 
regional economic arrangements such as the Pacifi c Islands Forum, SPARTECA – the South Pacific 
Regional Trade and Economic Cooperation Agreemen t with Australia and New Zealand, and the 
Pacific Agreement on Closer Economic Relations (PACER).   
49. In tariffs, Solomon Islands has taken steps over the years to lower its simple average applied 
MFN rate, cutting the rate from 23% to approximately 9%  in 2008.  All of its tariffs have also been 
bound, generally at a rate of 80%.  The highest bo und rates of between 90% and 150% apply to goods 
such as meat, processed fish, bottled water and photoc opying machines.  It is noteworthy, however, 
that several applied rates exceed their bindings, fo r example, as they relate to various alcoholic 
beverages.  As reflected in the questions submitte d, I am sure this is something members would 
appreciate clarification on. 
50. As recognised by the Secretariat, up to 82% of all ad valorem  tariff lines have an MFN rate of 
10%, and another 17% have a rate of 5%.  Of these, the highest ad valorem  rate of 15% applies on six 
tariff lines comprising alcoholic preparations, vinega r, chemical preparations for photographic uses, 
precious metal ores and concentrates, and metal scrap and waste.   
51. As we look into Solomon Islands ’ various other trade policy instruments, one realises that 
“discretion” is an over-riding factor in the governme nt’s use and recourse to trade measures.  Allow 
me to use several examples from th e Secretariat’s report:  the application of internal taxes is 
discriminatory and inconsistent. The Secretariat lists  several such examples, ranging from differential 
tax rates for imports and domestic goods, to numer ous exemptions from goods taxes;  under the 
Customs and Excise Act, the government may also issue orders prohibiting imports of “any goods 
whatsoever”, or from “any particular place”;  wh ile the Solomon Islands government has also not 
submitted any notification on the implementation of the TBT Agreement, nor adopted legislation to 
implement the TBT Agreement, it also does not main tain an inventory of technical regulations or 
conformity procedures in force;  and the government  also has "wide discretion" in prohibiting exports, 
and exempting export profits from income tax.   
52. I would understand if soon, if not by now, the representatives from Solomon Islands are 
wondering why Members of the WTO regularly subject  themselves to such a Trade Policy Review!  WT/TPR/M/215 
Page 10  
 
  Whether or not they do, please allow me to make  several further points which I hope will make it 
understandable, if not palatable. 
53. First, there is much to be said and admired of  how the peer review process in Geneva has 
contributed to the functioning of the multilateral trading system through greater transparency and 
overall understanding of all its members’ trade policies and trade measures.  I would hazard to say 
that it is unique in how it has always been carried out in a balanced, and generally non-confrontational 
manner.  The Trade Policy Review process is of cour se a key element.  It is a process of mutual 
exchange, which encapsulates over the course of two da ys, what happens day in and day out in all the 
other committees and bodies of the WTO.  In this re gard, I can only encourage Solomon Islands to 
consider greater participation in the WTO.  At th e very least, it would be an unequal commitment to 
be subject to such reviews, without being able to also do the same, and ask th e same questions at other 
TPRs of members of interest to Solomon Islands. 
54. The delegation from Solomon Islands will no doubt  have seen and reflected on the many 
written questions that have been ra ised by Members.  We will also  soon hear from other Members. 
These questions address both systemic as well as specific questions regarding Solomon Islands’ 
economy and trade policies and measures.  In answer ing them, I would hope that these questions will 
find themselves replicated within the agenda of the government’s own internal  reviews and reforms.  
Many of the questions will have at their core, the basic question of capacity-building, the need to 
improve or strengthen Solomon Islands’ internal ru le-making capabilities, and boosting transparency.  
In this, participation at the WTO, whether thro ugh implementing key agreements such as the TBT 
Agreement, notification of measures, participati on at key committees, or in bodies such as the TPR, 
should not be seen as a diversion or a distraction, but a crucial contribution.   
55. If I may make a final point in conclusion.  So lomon Islands’ trade-to-GDP ratio is high – in 
the range of approximately 150%.  As with another island economy with which I am rather more 
familiar, I am sure that the Solomon Islands is aw are of the fundamental importance of trade to its 
overall development.  This, however, does not me an that Solomon Islands, as with other trade-
dependent economies, need be totally at the mercy of the trends in global trade.  This is particularly 
pertinent during these times of great economic uncerta inty.  Nonetheless, trade policies can and must 
be forward-looking and coherent, in providing inpu ts into an overall economic development strategy 
that stays ahead of global trends.   I hope this TPR  contributes in some form to Solomon Islands’ trade 
policy debates at home.  WT/TPR/M/215 
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  IV. STATEMENTS BY MEMBERS 
UNITED STATES 
56. We recognize the challenges facing the Solomon Islands during the period of this review, 
including its narrow economic base and need to de velop long-term sources of balanced growth, and 
the consequences of political instability between 199 9 and 2002.  We also recognize the efforts of 
Prime Minister Sikua and his government to meet th ese challenges through a reform program aimed at 
diversifying the economy and reaching out to foreign investors. 
57. There have been a number of positive developm ents on trade and investment policy since the 
last review in 1998.  First, we commend the impr essive measures taken to reduce tariffs.  During the 
time period of this review, the simple average applied MFN rate has declined significantly from 
almost 23 percent in 1998 to around 9 percent in 200 8.  Tariff dispersion also fell sharply, with most 
products carrying a rate of 10 percent.  We appl aud efforts to automate customs procedures to 
enhance control and revenue collecti on.  In addition, the efforts to revise tax and investment codes, 
including by shortening the negative list of investment  restrictions as part of the Foreign Investment 
Act of 2005, are important and positive steps in making the Solomon Islands more attractive to 
foreign investors. 
58. Though the United States is not one of the Solomon Islands’ top trading partners, our 
countries had $6.5 million in total bilateral goods trade last year.  Consistent sources of U.S. imports 
from the Solomon Islands during the review period ha ve been shells and fish, while leading U.S. 
exports include machinery and fish.  We hope to grow our trade in coming years. 
59. As pointed out by the discussant Mr. Ho, we would like to highlight  our growing concern 
about unsustainable logging in the Solomon Islands .  We note that the Solomon Islands relies on 
natural resources, specifically timber harvesting and log exports, for its economic welfare.  
Unfortunately, as the Secretariat Report points ou t current levels of harvest and export are not 
sustainable; that is, according to the Secretariat’ s report, logging exceeds th e sustainable harvesting 
rate by a factor of three or more and, the governme nt’s own report points out that logging is estimated 
to decline rapidly over the next two years.  In our view, these problems underscore the importance of 
having a policy framework that will enhance the pr ospects for economic diversification and help 
avoid environmental problems.  This is perhap s the most important message of this review. 
60. The Secretariat’s report draws attention to wea knesses in the legal frame work for the forest 
sector, including the problem of false declaration of export quantities and the species of wood being exported.  These are serious problems.  We are intere sted to learn more about the steps being taken by 
the government to address these problems including, by  participating in initiatives designed to build 
capacity for sustainable forest management.  In this  context, it is important to note that many timber-
importing countries, including the United States and China – the Solomon Islands' primary export market for logs – have been working together to promote the legal sourcing of timber products and to 
combat illegal logging.  We encourage the Solomon Is lands to complete the steps needed to adopt and 
effectively implement new forestry legislation.     
61. As the Secretariat’s report notes, the Solomon Islands also has significant fishery resources, 
but governance issues including inadequate data collection on catches pose challenges.  We hope that 
in view of the importance of fisheries to its  economy, the Solomon Is lands will support stronger 
disciplines on fisheries subsidies in the DDA negotiations, including particularly the access 
arrangements for foreign vessels.  Concerning access arrangements, the South Pacific Tuna Treaty 
among the United States and the Solomon Islands and other countries in the region can serve as a 
model.  The Treaty’s strong focus on sustainability  conditions, along with the requirements for the WT/TPR/M/215 
Page 12  
 
  U.S. fishing fleet and provisions for technical assistance, has been highly beneficial for all 
participants. 
62. We welcomed the opportunity to submit written questions to the delegation of the Solomon 
Islands on a number of issues.  We thank the delega tion of the Solomon Islands for its attention to our 
questions and will examine the written responses we  have just received with great interest. 
63. First, in light of the current issues in the timber sector, we would be interested in learning 
more about the government’s plans for economic dive rsification and for building a stronger legal and 
institutional capacity, and its priorities in those areas. 
64. Second, we would like to get an update on the government’s future plans for trade and 
investment liberalization in several areas.  On ta riffs, the Secretariat’s report notes that the Solomon 
Islands maintains applied tariffs in excess of bound  rates and that it has not yet fully adopted the 
Harmonized Description and Coding System.  Other issues on which we would find updates useful are:  the excise tax discrepancy  that currently exists between imported and domestic goods; the 
potential for further improvements in the investment  climate particularly streamlining of business 
licensing procedures, particularly by provincial au thorities; and the strengthening of overall property 
rights.  We would welcome more information on the government’s current plans for addressing these 
issues. 
AUSTRALIA 
65. The Solomon Islands is confronted by serious economic challenges. It is a least developed 
country in the Pacific which relies heavily on imports  and has a narrow export base. At the same time 
it faces the external pressures of a depressed global economic climate. However, Australia recognises 
that Solomon Islands has taken positive steps, includi ng in its trade policy, to address these challenges 
since the last review in 1998, and we support Solomon Islands in these efforts. Australia is also pleased to note from the Secretariat’s report th at economic growth has increased since 2003.  
66. We welcome measures that Solomon Islands ha s taken to liberalise its economy. Solomon 
Islands has liberalised its foreign investment regime  and, as we note from the Secretariat’s report, has 
overseen a significant decline in th e simple average applied MFN ta riff rate. We encourage Solomon 
Islands to continue with state-owned enterprise reform, which has the dual benefits of reducing 
pressure on the Budget and enabling private sector de velopment.  We hope that the regulations 
required to implement key provisions of the Stat e Owned Enterprises Act 2007 will soon be enacted.  
We also welcome the entry of competitors into  the Solomon Islands telecommunications market, 
which we expect will bring substan tial benefits to private sector de velopment and the welfare of the 
population.  We are very encouraged to see that the process to enable this is already underway. 
67. We would note, however, that some applied tariff rates exceed their bindings, and urges 
Solomon Islands to ensure that bound tariff rates are adhered to and that the tariff regime is 
implemented consistently and in a transparent manner. We have also noted that internal taxes can vary 
for imports and like domestic goods, and urge Solomon Islands to apply its inte rnal tax regime in a 
non-discriminatory manner. We encourage Solomon Is lands’ efforts to address the challenges posed 
by a projected decline in exploitable forestry res ources, clearly a major challenge, and we encourage it 
to do this through more effective enforcement of forestry-related regulati ons, and support additional 
efforts to promote and enable growth in other export-oriented sectors.   
68. In order to meet the challenges that lie ahead , Australia would encourage the Solomon Islands 
Government to adhere to the strategy outlined in  its Medium Term Fiscal Strategy.  Effective 
implementation of this Strategy will be key to addressing current and future economic challenges.  
Efforts to prioritise spending, to ensure ongoing expe nditure is high quality and directed to supporting  WT/TPR/M/215 
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  basic services, and to pursue mechanisms to support long-term growth are critical to the maintenance 
of a sustainable budget and building a pros perous future for Solomon Islands.   
69. Australia is a major donor to Solomon Islands and the second largest source of Solomon 
Islands imports.  Our support for So lomon Islands is spearheaded by  our bilateral aid program under 
the Australia-Solomon Islands Partnership for Deve lopment, and our continued commitment to the 
Regional Assistance Mission to Solomon Islands (RAM SI).  Australia is the lead contributor to 
RAMSI, supporting the areas of law and justice,  economic governance and improving the machinery 
of government.  
70. We will continue to support Solomon Islands’ economic devel opment through the Australia – 
Solomon Islands Partnership for Development, si gned by Prime Ministers Sikua and Rudd on 27 
January this year. We hope the Partnership will assi st Solomon Islands make faster progress towards 
the Millennium Development Goals, support Solo mon Islands’ pursuit of sustainable economic 
growth strategies and support its efforts to undertake appropriate economic and public sector reform. 
To this end, the Partnership focuses on four ag reed priority areas – improved service delivery, 
improving economic livelihoods, improving economic infrastructure, and addressing economic and 
fiscal challenges.  We also look forward to closer  engagement with Solomon Islands on trade policy, 
in particular in the PACER Plus negotiations. 
71. As a major development partner, we welcome the Solomon Islands Government’s efforts to 
respond proactively to the impacts of the global economi c crisis.  Australia will continue to work with 
Solomon Islands and other Members to support appr opriate responses to these challenges, including 
conclusion of the Doha Round as soon as possible.   
72. Our questions for this review reflect the stre ngth of our interest in the Solomon Islands’ 
market, and addressed aspects of the Solomon Is lands economy including agriculture, competition 
policy and price controls, and forestry. We than k the Solomon Islands delegation for its early 
responses to these questions and we look forward to discussing these as this review proceeds. We 
encourage Solomon Islands to continue to liberalise its trade and investment policies, and hope that 
this review will contribute to the reform process. 
CANADA 
73. Bilateral trade in goods between Canada and Solomon Islands has fluctuated considerably 
over the past 11 years.  Since the last review of Solomon Islands in 1998, Canada's main goods 
exports to Solomon Islands have c onsisted of industrial goods and e quipment, while its main imports 
from Solomon Islands have been coconut oil, ornamental fish and reptiles. 
74. Since its last review, the political situation in Solomon Islands has been volatile, and the 
country has experienced certain political tensions.  This led, inter alia , to a rapid increase in the 
national debt, and a weak economic performance, a nd could have spelled the ruin of the country's 
small and vulnerable economy had Solo mon Islands not taken the specific steps that were necessary to 
prevent that from happening.  In fact, trade incr eased by 185 per cent between  2000 and 2007, and the 
value of exports almost tripled. 
75. Canada would like to congratulate Solomon Islands for the many proactive measures it has 
taken to improve its trade and investment climate. In  particular, we would like to highlight that since 
its last review in 1998, Solomon Islands has decrea sed its simple applied MF N tariff rates from 23% 
in 1998 to around 9% in 2008, improved its custom s administration through automation and adopted a 
new Foreign Investment Act that streamlined, si mplified and liberalized its foreign investment 
regime.  WT/TPR/M/215 
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  76. Canada recognizes the importance that Solom on Islands places on regional integration and 
encourages the pursuit of regional trade agreements  in the Pacific Islands region. These types of 
partnerships may help Solomon Islands impr ove its institutional capabilities by engaging in 
commercial activities on a smaller scale with similar markets that have similar goals and interests. 
Canada also recognizes the contribution that So lomon Islands has made to the World Trade 
Organization, and to the current round of negotiatio ns. It is one of the six LDC WTO Members that 
has bound 100% of its tariffs and has co-sponsored a number of proposals in the rules and trade facilitation negotiations.  
77. Canada commends Solomon Islands extraordin ary turnaround in its economy and its 
demonstrated willingness to reform its trade polic y regime. For example, the publication of tax 
exemption reports by the Ministry of Finance and Treasury will ensure great er transparency to the 
government’s tax exemption policies.  However, th ere are still areas that would benefit from further 
attention. Many of Solom on Islands’ trade and investment irritants appear to be symptoms of a lack of 
an institutional framework. Moving forward, Solo mon Islands would benefit from a formal trade 
policy framework that would address additional transp arency challenges such as the ambiguity of land 
ownership and the unclear process of in corporation and business registration. 
78. Canada would also note that the over explo itation and undervaluation of Solomon Islands’ 
main export, timber, is especially of concern as the forestry sector accounts for 10% of Solomon 
Island’s GDP, 65% of exports and nearly 20% of  tax revenue.  Pursuing a more diversified 
commodity market would help balance Solom on Islands’ revenue base and would dampen the 
negative effects felt by the inevitable depletion of timber, a scarce resource.  
79. Canada recognizes the challenges faced by sma ll economies like Solomon Islands in realizing 
fully the benefits of trade liberalization. We ar e pleased to see that between 1999 and 2008, Solomon 
Islands participated in 130 technical assistance seminars through the WTO Secretariat and would 
encourage further efforts to build its institutiona l capacity. Canada encourages Solomon Islands to 
continue along its path of greater transparency and predictability and assume a long term perspective 
when formulating changes to its trade policies.  
80. In conclusion Canada is very pleased to par ticipate in this second trade policy review of 
Solomon Islands. We have submitted a number of qu estions and look forward to reviewing Solomon 
Islands’ responses. 
EUROPEAN COMMUNITIES 
81. At this time hardly any country is not fee ling the strain of the global economic slowdown. 
Collapsed commodity prices are weighing nega tively on economic growth of Solomon Islands. 
Nevertheless, the country’s shor t to medium term economic ass essment is worrying beyond these 
external factors due to its heavy dependence on the logging industry that is on the brink of resource 
depletion. With the logging production declining possibly by as much as 50% in the next two years, the need for diversification of economic activity is particularly urgent for Solomon Islands.  
82. Several industries – agriculture, fisheries, mini ng, tourism – surely hold potential, but a lot 
remains to be done before they can emerge as  alternative drivers of economic growth. The 
government of Solomon Islands, with the support of international community, will have to address a 
broad range of issues. The greatest priority in our view should be attached to reducing the cost of doing business, including by streamlining business registration, fostering competition in the telecommunications and financial sectors and inves ting in transport infrastructure; clarifying 
land ownership and strengthe ning public finance, notably throu gh broadening the ta x base and better 
revenue collection and administration. The recent reforms, notably of state-owned enterprises and 
taxation, are important and commendable steps forward and we encourage the government of  WT/TPR/M/215 
 Page 15 
 
 
  Solomon Islands to vigorously build upon them. In th is regard, the delegation could perhaps update us 
in more detail on further fiscal reform plans a nd any related results of the strengthened policy 
dialogue with the donors launched in th e context of the ongoing economic crisis. 
83. There are areas where Solomon Islands will benefit from increasingly aligning its trade 
regime with the WTO rules and thus making it mo re open, transparent and predictable. I would 
mention specifically the development of legal and in stitutional infrastructure for the application of the 
TBT and SPS Agreements; bringing customs valuati on in conformity with WTO requirements; and 
clarifying import licensing requirements and procedur es. Solomon Islands’ should also make the most 
of the opportunity provided by its participation in  the Integrated Framework to strengthen its trade-
policy formulation as an integral part of its overa ll development strategy, identify in more detail its 
trade-related needs and priorities and ensu re efficient assistance in this regard. 
84. The EC and Solomon Islands have been partne rs since the country’s independence in 1978. 
While due to the distance our share of trade has been relatively modest, the large EC market still 
offers valuable opportunities for Solomon Islands in some sectors, aided by preferential access. Since 
2008 Solomon Islands’ exports have  entered the EC duty and quota free under the “Everything but 
Arms” scheme for LDCs. 
85. Furthermore, we are moving forward in our tr ade relations with ongoing negotiations of a 
regionally oriented Economic Partnership Agreement that involves 13 other Pacific ACP countries. The full EPA should cover trade in goods, including provisions on TBT, SPS and trade facilitation, 
plus a development chapter, fisheries chapter, social and environmental issues and competition. 
Inclusion of services and trade related areas like IP R and government procurement remains open. The 
EPA process is accompanied by significant development assistance.  
86. In the context of our broader development rela tions, the EC has been one of the main donors 
to Solomon Islands through various channels . Through the European Development Fund around 
155 million Euros have been delivered in total, with assistance in recent years going mainly for 
sustainable rural development with an emphasis on capacity building. 
87. Allow me to comment here on the concern over the loss of fisheries preference in the EC 
market as a result of the DDA expressed by the go vernment of Solomon Islands in its TPR report.  
88. First, I should recall that the EC accounts fo r below 10% of Solomon Islands' total exports. 
Any potential negative effects of preference erosion in the EC market would thus be limited relative 
to those potentially experienced in So lomon Island’ larger export markets.  
89. Second, while preference erosion is in the na ture of MFN liberalisation and cannot be an 
argument against the latter, there is recognition among WTO Members in the DDA negotiations that 
in certain sectors some less developed countries such as Solomon Islands face particular logistical and 
technological disadvantages compared to other deve loping countries and where preferences have as a 
result been a major contributor to their competitiv e position. Fisheries are a case in point which is 
why many fish products have been included in a list of products that shall benefit from a longer 
implementation period to reach their final rates.  This should offer sufficient time to preference 
beneficiaries to adjust to the new situation, notably as assistance has also  been forthcoming for 
countries committed to enhancing their competitiveness.  
90. As regards fisheries specifically, the EC has b een providing Solomon Islands with an annual 
financial contribution since 2006 under the Fisherie s Partnership Agreement. Third, the ongoing EPA 
negotiations aim, among, others at significant impr ovement of the rules of origin for fisheries 
products exported to the EC from the Pacific ACP countries.  WT/TPR/M/215 
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  91. Let me wrap up by referring again to the need to keep up and reinforce the reform processes 
to attract more investment and create conditions  conducive to economic diversification through 
sustainable development. I would like to assure th e government of Solomon Islands of our continued 
support for its development efforts, including through the contribution of the EPA.   
JAPAN 
92. After the civil strife in Honiara in 2003, economic growth in Solomon Islands has been 
dramatic mainly due to the export of primary produc ts including logs and fishes. As the Secretariat 
report points out, however, Solomon Islands have an  economic structure, heavily reliant on a narrow 
commodity base and foreign aid flows. This kind of structure is not necessarily in accordance with 
sustainable development. It is also recognized as vulnerable to world economic conditions, including 
current global financial and economic downturn. 
93. Japan, nevertheless, is pleased to mention that despite the abovementioned economic 
structure, the Government of Solomon Islands ha ve proceeded customs refo rm in accordance to tax 
systems in other countries, as well as economic reform through trade-related technical assistance from 
the WTO. Japan is of the view that in order to achieve sustainable development, one of the urgent 
issues in Solomon Islands is a structural refo rm on its economy such as an expansion of the 
manufacture sector. In this regard, Japan hopes Solomon Islands to take further measures to this end. 
94. Taking this opportunity, Japan would like to e xpress its intention to further strengthen the 
relationship between the two countries, through on-going grant ai d and technical cooperation to the 
Government of Solomon Islands. 
95. I very much appreciate the delegation of Solo mon Islands for providing its answers to the 
advanced written questions from Japan this morning. 
96. In conclusion, Japan would like to reiterate its  hope that Solomon Islands will continue to 
promote structural reform and to further participate in the WTO, with an aim to achieving sustainable 
development through trade as well as to benef iting from the multilateral trading system. Japan 
sincerely hopes that this TPR gives an excellent opportunity also for the WTO Members to understand 
the challenges and development needs of Solomon Islands.  
REPUBLIC OF KOREA 
97. In reviewing the government report and the S ecretariat report, Korea notes the potential as 
well as the challenges Solomon Islands faces today.  Having gained independence in 1978, it has had 
to endure years of political instability. In this cont ext, economic growth has been achieved in earnest 
only since the early part of this decade. Taking th is into consideration, the economic performance of 
the Solomon Islands since 2003 is quite noteworthy with average annual real GDP growth at around 
7.3% for the years 2003 through 2007.  
98. However, as the Secretariat report states, this gr owth was due in large part to over dependence 
on logging, bordering on over-exploitation. With gloom y forecast over the present and future status of 
its forest resources and thus its economy in general,  it is clear that the Solomon Islands needs to 
reflect upon the course of its future, and subsequent ly decide upon a path through which it will pursue 
its economic development objectives in a sustainable manne r. In view of the difficult decisions that lie 
ahead, my delegation hopes that this TPR will serve to provide some food for thought to the Solomon 
Islands.  
99. The Secretariat report highlights in many in stances the over exploitation of the Solomon 
Islands’ forest resources. However, in light of the activities of several socially responsible companies,  WT/TPR/M/215 
 Page 17 
 
 
  all hope is not lost. One case in point is the activity of Eagon Group from Korea. Through two 
subsidiaries incorporated in the Solomon Isla nds, Eagon Resources Development in the island of 
Choiseul and Eagon Pacific Plantation Ltd. in th e island of New Georgia, Eagon embarked on an 
ambitious afforestation project in the neighborhood of  313 million square meters , or roughly one half 
the size of my capital city, Seoul, since the ea rly 1990s. Eagon has afforested eucalyptus trees, 
terminalia trees, and acacia tree s among others, and now, after some 15 years of care, are reaping the 
benefit of its efforts. Recently, it has built a pr ocessing plant through which it will process its logged 
trees into ply-wood boards or veneer boards, there by adding value to its expor ts. According to Eagon, 
its activities continue to this day, afforesting 9.9 million square meters of land every year to ensure 
that the activities of its two subsidiaries is economically and environmentally sustainable. 
100. The activities of Eagon’s two s ubsidiaries not only provide economic benefits to the Solomon 
Islands, but also a positive model that could possibly be transplanted and adapted into other logging 
areas. In this context, I believe it will be worthwhi le to request the views of the delegation of the 
Solomon Islands on this issue.  That is:  1) request  an explanation on its policy towards afforestation, 
2) whether it is included as a condition in the logg ing licenses, and if so, 3) what they are, and 
whether 4) there are mechanisms in place to conf irm that the afforestation requirements are met. 
Lastly, 5) it would be worthwhile to hear whether there are any plans within the government to introduce incentive measures such as tax breaks to induce afforestati on, or to induce these logging 
companies to export in processed form rather than as a primary commodity.  
101. Apart from the logging industry, the Solomon Is lands is home to significant fish resources, 
and also the site of one of the greatest, epic battl es of the Second World War.  To this delegation, 
these are fertile grounds for a fledging fisheries industry and a robust tourism industry. In this 
connection, my delegation would lik e to get better acquainted with the blueprints of the Solomon 
Islands to develop and nurture these two industries, and what assistance, if a ny, are sought to ensure 
that its plans becomes a reality. 
102. With respect to the tourism industry in particul ar, conventional wisdom points to the need to 
conclude a high number of ambitious air services agre ements to ensure ease of access to tourists. 
However, according to the Secretariat report, the numb er of ASA that the Solomon Islands is a part to 
is only six, mainly with neighboring island states in  the Pacific. My delegation would like to inquire 
whether there is a particular reason for this low fi gure, and whether it has plans to further expand its 
ASA network in the future. 
103. Two weeks ago my delegation submitted a numbe r of advanced written questions further 
inquiring on the FDI regime of the Solomon Islands . On behalf of my delegation I would like to 
express our gratitude for the answers provided this morning. My delegation will review the answers 
provided, and revert on Friday if necessary.  
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
104. My delegation is pleased to learn from the Secretariat Report that Solomon Islands' trade 
policy underlines its attachment to the multilate ral trading system, and Solomon is gradually 
becoming integrated in the economic groups within its region in order to increase its trade flows and 
enhance cooperation.  We are also pleased to note the success of Solomon Islands in resuming 
economic growth from 2003, with particularly br isk performance in 2007 and 2008.  After carefully 
examining Solomon Islands' investment and trade related measures, we conclude that these measures 
constitute no trade barriers for our investors and expor ts.  However, we suggest that the pace of trade 
and other policy reforms needs to be accelerated in  order to make better use of its comparative 
advantage in mining, fisheries and other activities. WT/TPR/M/215 
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  105. My delegation has been a longstanding trading partner of Solomon Islands, and proud to be 
engaging in many bilateral technical cooperation proj ects in the area of agricu lture, fisheries, health, 
education, and information technology, aiming at facilitating Solomon Islands' capability to 
implement the WTO agreements and incorporate its  economy into the multilateral system.  We will 
continue to work closely with the Solomon Islands authorities in this direction. 
106. In conclusion, my delegation is pleased to note that the further development of the 
multilateral trading system remains the top priority of Solomon Islands' external trade policy, and we 
are therefore pleased to cooperate closely with So lomon Islands in pursuit of a successful outcome for 
the DDA. 
BRAZIL 
 
107. As Brazil has expressed in previous occasions, we recognize least developed Members, and 
the Solomon Islands are a case in point, in their e ndeavour to promote economi c diversification and to 
reduce vulnerability.  We are acutely aware of the So lomon Islands' legitimate concerns in relation to 
preference erosion in the negotiating Round, particular ly in the fisheries sector. Brazil firmly believes 
that trade liberalization at the multilateral level mu st proceed in a manner which respects fundamental 
differences and asymmetries in  the  levels of development of the WTO Members. 
108. In this context, Brazil stresses once again that developed Members, as well as developing 
Members in a position to do so, should put their hum an and financial resources at the disposal of 
vulnerable economies by developing programmes on aid for trade and by providing real and 
undistorted market access to products originating from them. 
109. We would like to reaffirm, however, our belie f that a successful conclusion of the trade 
negotiations will not only translate into tangi ble economic opportunities as a result of improved 
access to foreign markets and less distortive domestic  practices.  It will also provide a means to 
greatly attenuate the effects of a severe economic do wnturn that, ifnot countered by wise policy, is 
likely to have a heavy negative impact on all Member s, regardless of development levels. Developing 
countries, particularly the LDCs, since they may lack social safety nets, are likely to be hit the hardest. 
110. Let me briefly turn now to our economic bilate ral ties. Even though bilateral trade figures are 
still very modest, not reaching 0.5 million dollars per year, we are pleased to observe that, more 
recently, there has been an increase in trade flows, particularly after the end of the tensions in the 
Solomon Islands in 2003.  Annual figures in the last 3 years are each greater than the total amount of 
the trade that took place in the 15 years before 2003.  The way for trade between our countries is thus 
open. We hope that it maintains  its growth tendency in the years ahead. 
111. As the report by the Government points out, th e possible depletion of logging resources and 
the adverse global may negatively impact the recent positive growth trends in the Solomon Islands.  
We encourage the country to continue its efforts to sustain economic devel opment.  Brazil believes 
that international trade and cooperation may have an important role to play in this process, and we 
stand ready to promote them in the WTO.  
MAURITIUS 
112. Distance notwithstanding, Mauritius and Solomon Islands share common economic 
perspectives in many ways. As Small Islands Developing States (SIDS) and net food importing 
countries, we face similar challenges in our pursuit of sustainable development. We are both Members 
of the ACP Group and are subjected to almost similar challenges in th e context of the EPA 
arrangements with the EU.  Furthermore, as me mbers of the group of Small and Vulnerable 
Economies (SVEs) at the WTO, we are committed to  advancing a common agenda in the multilateral  WT/TPR/M/215 
 Page 19 
 
 
  trading system. We, therefore, seize the opportunity of this review to thank and congratulate the 
Pacific Island Forum Secretariat, which also repr esents the interests of the Solomon Islands, for its 
highly valuable contribution in the different areas of the Doha negotiations and in furthering the 
objectives of the SVEs. 
113. Outside Geneva, Mauritius and the Solomon Islands  interact regularly within the Alliance of 
Small Island States (AOSIS) in New York and w ithin the Commonwealth Group. These interactions, 
underpinned by a strong sense of solidarity, allo w our two countries to push forward our common 
vision for the smooth integration of SIDs into the global economy and for our interests to be 
acknowledged in global processes, including in th e climate change and sustainable development 
deliberations. 
114. As the two reports reveal, the difficult political  situation in the period of 1999-2003 has had 
its effects in the economy of the Solomon Islands .  We are pleased, however, that, with stability 
regained, the Solomon Islands has been able to re verse the tide and enhance its economic performance 
over the recent years as a result of some major economic reforms. Development partners and institutions have welcomed the upward movement. So does Mauritius.  
115. On the macro economic front, the fiscal performance has improved as a result of tax reform 
aimed at improving revenue collection. With regard to monetary policy, the Central Bank of Solomon 
Islands has taken appropriate measures to address th e rising inflationary pressure Important measures 
have also been implemented to facilitate foreign di rect investments by streamlining to a great extent 
the investment regime as evidenced by the new Foreign Investment Act in 2005.  This has, to a large 
extent helped in simplifying investment-related proce dures.  It is worth noting in this regard that the 
number of activities reserved to domestic invest ors has dropped significantly.  Other business reforms 
were enacted in 2008 to improve the ease of doi ng business and to attract further investments. 
Enhancing the business and investment climate is a ke y ingredient to sustained economic growth in a 
context of fierce global competitiveness. We would, th erefore, encourage the Solomon Islands in this 
direction, keeping in mind that improving the investment and business climate, to be successful, 
should also be accompanied by investment in and productive and develo pment-oriented sectors 
including health, education and ag riculture and infrastructure.  
116. With regard to reforms in other areas, we note w ith interest that those in the area of customs, 
such as increased automation and risk profiling, have helped improve customs procedures and 
enhance revenue collection. These measures are comme ndable and are a gateway to trade facilitation. 
117. In the civil aviation sector, the government of Solomon Islands has adopted new civil aviation 
legislation in November 2008 to promote fair comp etition, whereas in telecommunications, it is intent 
on liberalizing the sector. There has also been im provement in the SPS area through new measures 
regarding animal plant import specifications and th e opening of a facility to conduct food tests. All 
these attest the government’s willingness to reform and modernize the economy. We would, again, 
encourage the Solomon Islands in these efforts whic h form part of an overall plan of streamlining 
trade policies in the national development strategy. 
118. Just as in other developing countries, the So lomon Islands still faces the challenge to fully 
exploit its economic potential. To a large extent, th is has to do with the widely–documented inherent 
constraints of a small and vulnerable economy, including economic diversification difficulties and 
vulnerability to external factors and adverse clim atic conditions. Diversification of the economy and 
expansion of the export base remains one of the key challenges of the Solomon Islands to move away 
from the high dependency on the declining logging sector .  Moreover, efforts at building resilience are 
being further challenged by the international food, energy and financial crisis. As a SID, Mauritius 
can fully understand these development concerns a nd remains supportive of development strategies of 
the Solomon Islands in trying to overcome vulnerability.   WT/TPR/M/215 
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  119. As illustrated in both reports, this vulnerability,  in the case of the Solomon Islands, is strongly 
linked to its logging sector. There are very legitimate concerns that the fiscal position of the country is 
likely to deteriorate in the near future in view of  the imminent decline in the logging sector activity, 
which is presently one of the key economic sector  of the economy and which accounts for nearly 75% 
of total exports.  
120. The anticipated decline in this vital sector combined with many structural difficulties in other 
sectors, including transport financia l and trade-related infrastructure, as well as preference erosion in 
traditional export markets highlight the urgency for appropriate macro-economic policies. We are, in 
this respect, gratified by the commitment of the Government to formulating such sector-specific 
policies, including those related to stimulating gr owth in non-logging emerging sectors such as gold, 
mining, palm oil and tourism and those aimed at re building trade-related infrastructure and improving 
health and education outcomes a nd delivery of public services. 
121. We hasten to add that, however, that the So lomon Islands, as a vulnerable SID and an LDC, 
requires special consideration in terms of, inter alia , development assistance, support in policy 
advocacy, and adequate flexibility in the multilatera l trading system. From a WTO perspective, we 
cannot overemphasize the vital importance of effectiv e, country-driven Aid for Trade in sustaining the 
efforts of the Solomon Islands in addressing its  economic needs and building productive capacities 
through major economic reforms as partly identified  through the Diagnostic Trade Integration study 
under the Integrated Framework programme.  Mauritius,  therefore, joins others in pleading with the 
development partners of the So lomon Islands to redouble their efforts under the Aid for Trade 
Initiative. 
122. In concluding, Mauritius assures them of our c ontinued collaboration a nd support at the WTO 
both on a bilateral level and within the ACP. 
NIGERIA 
 
123. Nigeria is quite pleased to be part of this ev ent and also wish to notes that Solomon Islands 
has been a Member of the WTO since 1996, and h as faces major resource and capacity constraints in 
participating in the Multilateral trade negotiations  and the regular work of the WTO which put the 
country’s authorities interest very limited. 
124. If the Secretariat report on this review is something to go by, I must express Nigeria’s 
appreciation to the Government and people of Solomon Islands for its several regional trade 
arrangements in the Pacific. It is also commendable barring its position as a no resident Least 
Developed Country (LDC) Member in the Pacific that  its simple average applied MFN rate declined 
significantly from 23 percent in 1998 to 9 percent in 2008. Its tariff dispersion has also fallen sharply, with the vast majority of items carrying a 10 percent rate. 
125. Comparatively, Nigeria has a lot in comm on with Solomon Islands. For instance, both 
countries depends on agriculture as one of the larg est economic sectors and a source of livelihood for 
most their population.  Nigeria would like at this juncture, to encourage Solomon Islands to diversify 
its exports potentials with a view to  increasing its foreign exchange earnings. 
126. However, in the Secretariat Report, we note that Solomon Islands does not maintain non-
preferential rules of origin. In this regard, my delegation would like to know from the delegation of 
Solomon Islands which rules of origin the country applies under the MFN. 
127. It is gratifying to note that Solomon Isla nds has liberalized and simplified its foreign 
investment regime since its last Review with a vi ew to facilitating and encouraging FDI: Nigeria is  WT/TPR/M/215 
 Page 21 
 
 
  therefore, convinced that with these measures the country would in crease the flow of FDI’s thereby 
improving the living standard of its people. 
128. As indicated in the Secretariat Report that, Solo mon Islands has not adopted any legislation to 
implement the TRIPS Agreement and in this rega rd never made any notif ication under the TRIPS 
Agreement or a submission to the TRIPS Councils.   It would be interesting to hear from the 
delegation of Solomon Islands how they can address health emergencies and public health. 
129. Nigeria wishes to express support to Solomon Isla nds in all its developmental and aspirations 
and would like to call other Members of the WT O to ensure that Solomon Islands overcomes its 
developmental challenges. 
TONGA ON BEHALF OF THE OTHER PACIFIC ISLANDS WTO MEMBERS AND 
OBSERVERS 
 
130. The challenges that Solomon Islands faces is shared by small and vulnerable economies of the 
Pacific who are heavily dependent on a few commod ities for exports, the importance of trade taxes as 
a major source of Government Revenue, and the vulnerability to economies to external shocks. 
131. Despite the numerous challenges, its commenda ble to note the efforts made by the Solomon 
Islands Government since its last trade policy review  to strengthen and clarify its fiscal regime, tariff 
rates have been lowered significantly, automatino of  customs process and adoption of risk profiling to 
enhance revenue collection.  Also the reforms introduced to enhance its investment regime. 
132. The future prospect for Solomon Islands ' economy is favourable given the supporting 
infrastructures and conducive policy environment is created. 
133. I wish to add my voice to what previous speaker s raised with regards to Aid for Trade, and 
urge Members to consider how best they can assist Solomon Islands and other smaller economies to meet their capacity and supply side constratins, in order to effectively utilize the market access 
provided under GSP schemes afforded by developed country Members. 
HONDURAS 
134. We are pleased to observe, in the Report of the Secretariat, that economic growth in Solomon 
Islands resumed in 2003 thanks to domestic de mand and logging exports.  We also welcome the 
country's efforts to achieve balanced growth and its  progress in reducing the level of tariff dispersion, 
streamlining customs procedures, rationalizing fi scal incentives, and adopting new legislation on 
investment, State-owned enterprises and civil aviation. 
135. In the multilateral area, we note from the Report that Solomon Islands has been a member of 
the WTO since 1996, and is the only least developed country Member in the Pacific;  however, it has 
no representation in Geneva, a fact which considerably limits its pa rticipation in the negotiations, 
although it does receive WTO trade-related technical  assistance and support for trade capacity 
building from multilateral agencies a nd bilateral donors.  Continued technical assistance to Solomon 
Islands is essential in most trade policy areas. 
136. Similarly, whether Solomon Islands can find so lutions to its problems and improve conditions 
in the country will depend on how it handles the cu rrent challenges.  We are referring, among other 
things, to the over-exploitation of forestry resources, infrastructure problems, and problems in the services, fiscal and public spending areas.  Conseque ntly, we encourage the authorities to pursue their 
work and to seek improvements in all areas as well as a higher level of development. WT/TPR/M/215 
Page 22  
 
  TANZANIA 
 
137. We are happy to participate in this 2
nd TPR of Solomon Islands precisely because we share 
common challenges as LDCs.  This TPR has allowed us to have a better understanding of Solomon 
Islands trade regimes and their policies and aspirations. 
138. We commend Solomon Islands for the progress ach ieved, despite challenges they face as sea-
locked country particularly in the area of economi c reform programmes in wh ich trade and investment 
liberalization play a key role. 
139. We have taken note that Solom on Islands is benefiting from non-reciprocal preferences, while 
also participating in various preferential trade arrangements particularly in the fishery sector. 
140. We also appreciate the Solomon Islands firm commitment to the multilateral trading system 
(MTS) including the finalization of the Doha Devel opment Round with development as a central issue 
of the negotiations. 
141. The numerous interventions, questions in partic ular by Members regarding the TPR should be 
taken as a testimony of their interest in Solomon Is lands trade regime.  Certai nly, they value Solomon 
Islands efforts to improve their enviro nment and consequently reduce poverty. 
142. As an LDC that is highly dependent on foreign trade, Solomon Islands has a lot to gain form 
the DFQF market access promised by developed co untries and developing countries in a position to 
do so; and the accompanied provision of financial an d technical assistance to address the supply-side 
constraints including SPS and TBT related requirement s.  So, LDCs call for the operationalisation of 
this DFQF facility. 
143. LDCs also strongly believe th e immediate operationalisation of the EIF as alluded by Hon. 
Minister Haomae and Aid for Trade interventions will definitely assist LDCs including Solomon Islands to address the supply side constraint s and build their productive and trade related 
infrastructure. 
INDIA 
144. I consider that the choice of our discussant is very apt for the review. Apart from Singapore 
being one of the two largest exporters to Solomon Islands and sharing almost identical climate. I 
consider there are many policy areas too in for example in socio – economic sectors which could 
provide useful inputs to Solomon Islands as  it moves in the direction of overcoming the tensions  and 
launching itself on the path of econom ic development for the benefit of  its people. Jaime has provided 
useful insights into the trade policies and practices of Solomon Islands.  
145. We take note of today’s cabinet reshuffle and recent changes in high level of administrative 
set up.  We hope these changes will hasten refo rms and development in Solomon Islands.  We 
welcome the launch of Truth and Reconciliation Co mmission in Solomon Islands and hope its work 
will help in ushering in a new era of peace and st ability in Solomon Islands, so essential for the socio-
economic development of the country.  
146. Reading about Solomon Islands, I was pleasantly struck by its diversity. A country of less 
than half a million is home to more than 120 indigenous Melanesian la nguages.  The economy is 
dependent on trade in timber, cocoa, copra, fish & fish products, palm oil . Over 75% of the labour 
force in Solomon Islands is engaged in  subsistence farming and fishing.    WT/TPR/M/215 
 Page 23 
 
 
  147. The diplomatic relations between India and Solomon Islands were established in 1987.  
Solomon Islands established its Honorary Consulat e in New Delhi in 2003.  India’s trade with 
Solomon Islands at present is quite modest.  
148. India has been offering assistance to Solomon Islands by allocating training scholarships 
annually in diverse fields under the ITEC programme , which Solomon Islands has been utilising well.  
For the year 2008-09 India has increased the number of scholarships from 5 to 8.  
149. Under India’s Regional Assistance Initiatives fo r Pacific Island countries, a grant-in-aid had 
been approved for supply of equi pment and materials for social and economic programmes and for 
sustainable development. India extended assistance for relief and rehabilitation of Tsunami victims, 
which struck Solomon Islands in 2007.  
150. India fully supports technical assistance needs of  Solomon Islands. We hope FICs will be able 
to quickly finalise their process of identifying a nd prioritising their trade and development needs 
under the Aid for Trade Initiative.  
151. My delegation has posed some questions to So lomon Islands.  We did not find their mention 
Chairman in your opening remarks nor in documenta tion circulated this morning. These mainly are 
concern Government plans and policies to improve infrastructure, diversify it tradable basket, 
business environment.   We would be happy to handover a copy of them today and look forward to 
receiving responses from Solomon Islands.  
FIJI 
152. The Solomon Islands is one in a minority of L east Developed Countries that has increased the 
binding coverage of their tariff lines to 100% – quite  a remarkable achievement  for a country that has 
also gone through a lot of socio-political and ec onomic challenges during the period under review. 
153. Further, they have also succeeded in reducing their average applied rate from a high 23% to a 
relatively low 9%.  As a trade partner of the Solo mon Islands in both the multilateral and plurilateral 
spheres, we congratulate them on this positive de velopment which provides the necessary ingredient 
of greater predictability for her trading partners.  In light of these positive developments in a Least 
Developed Country, we would like to appeal to  the Members to recognize and appreciate the 
significance of these developments as well as their associated opportunity costs on her economy;  and 
to allow countries such as the Solomon Islands th e necessity of policy space retention and flexibility 
as an earned compromise. 
154. In the set of advance written questions posed  to the Solomon Islands, there have been 
expressions of interest to the effect that they narrow the gap between bound and applied rates in the 
interest of greater predictability.  Notwithstanding the fact that as a trading partner we would benefit 
from such a development, it will simply be overl y ambitious and beyond the mandate of the current 
Round to expect such LDCs to substantially incr ease and/or maintain a 100% binding coverage, while 
at the same time be expected to drain the a dditional water or policy space between their bound and 
applied rates. 
155. In the South-South regional trade agreement am ongst Pacific Island countries (which we refer 
to as the Pacific Island Countries Agreement or PICTA), we are certainly practising what we preach in the are of Special and Diffe rential Treatment by way of the developing countries in the group 
taking up higher reduction commitments and accord ing lower reduction commitments and longer 
implementation periods to our LDCs and Small Island States. WT/TPR/M/215 
Page 24  
 
  156. On a separate issue, we would also like to  commend the Solomon Islands for their bold and 
ambitious plans to liberalize their telecommunicati ons sector;  in tandem with their recognition that 
encouraging competition in this crucial area will not only be pivotal in maintaining existing and 
attracting new foreign investment;  but also in filtering down the benefits of reduced prices and 
improved services to the public in general.  In an era where the tradable currency of information is as 
good as gold, Fiji has also unilaterally liberali zed our telecommunications sector and we have 
witnessed first hand how the benefits of cheaper a nd more efficient telecommunication services have 
positively tipped the scale in outnumbering the economic costs of such policy shifts;  indiscriminately 
multiplying these benefits down to those at the bottom rung of the social and economic ladder.  In the 
area of mobile telephony, for instance, it is a clear indication that liberalization of the 
telecommunications sector is a step in the right dir ection towards the corporate social objectives of the 
major players, when you see people in the rura l areas enjoying the benefits of mobile phone 
technology;  which several years ago used to be a status symbol of only the elite in our country. 
157. As members of the small and vulnerable econo mies in the ACP Group, amongst others, Fiji 
fully empathizes with the global and domestic cha llenges facing the Solomon Islands.  We also fully 
support the appeal for technical assistance to  assist them to overcome these challenges. 
158. In closing I hope that existing and potential donor countries would step up to the opportunity 
to assist the Solomon Islands to translate at l east some of their economic development plans and 
millennium development goals into reality. 
BARBADOS 
159. Barbados would like to commend the Solomon Is lands on the efforts they have made to 
enhance their trade policy. We recognize that they  have faced many challenges and these challenges 
as outlined are clear. These are the same kind of challenges that confr ont many LDCs and small island 
states. As a Small Vulnerable Economy Barbados fu lly understands the complexity of the situation 
and empathizes with the Solomon Islands in th eir efforts to reform their trade policy. 
160. It is clear that the Solomon Islands and countri es similar to the Solomon Islands need all the 
help they can get to allow them to play a great er part in the international trading system. WTO 
Members should therefore seek to conclude the D oha Round in a manner which does not  impose any 
additional burden on countries like the Solomon Is lands as they seek to integrate themselves more 
fully into the multilateral trading system  
161. We fully appreciate the contribution which the Solomon Islands, through the pacific islands 
forum, have been making to the work of the SVEs a nd urge them to continue their engagement in the 
process.    WT/TPR/M/215 
 Page 25 
 
 
  V. REPLIES BY THE REPRESENTATIVE OF SOLOMON ISLANDS AND 
ADDITIONAL COMMENTS 
162. As an LDC, we were pleased to note the level of support and interest that was displayed by 
Members in our trade policies.  We would also li ke to express our special thanks to those Members 
who submitted questions including those who took the floor to highlight the positive things that we 
have done as well as those areas that warrant improvement. I would like to assure you that my 
Government will take these recommendations seriously . We will make every effort to ensure that all 
the necessary action is taken to align our trade policies with our WTO obligations. 
163. Most of the questions that were raised by  Members on Wednesday have in fact been 
addressed in our written responses which were circul ated on Wednesday. We hope that Members had 
an opportunity to peruse these responses. We have also provided some written responses to some of 
the questions that were raised by Members afte r the two weeks deadline as well as those that were 
raised by Members during the first day of the Trade Policy Review (TPR). 
164. This morning, I would like to take some time to  respond to some questions that were raised 
by Members and I will do so according to three thematic areas namely: Economic and Institutional 
Environment, Trade Policies by Measure, and Sectoral Policies.  
165. Under the theme “Economic and Institutional Environment”, I w ould like to first talk about 
the economic framework. Solomon Islands is slow ly recovering from the political tensions and 
economic growth has been positive during the recen t years averaging about 7.3 per cent between 2003 
to 2007.  However, economic growth is threatened by external factors such as natural disasters and the 
current global economic crisis.  So lomon Islands was also severely affected by the Asian financial 
crisis as well as the increases in prices of food and fuel in 2008. And the Gove rnment had to eliminate 
import duties on rice to ease the burden on consumers.   
166. The logging indusrty contributes about 18 per cent to GDP, about 75 per cent to total exports 
and around 17 per cent to total tax revenue. However,  the global economic crisis has already led to a 
reduction in the prices of, and demand for, Solomon Is lands’ main exports.  This has resulted in lower 
revenue from export duties. The demise of this sect or will have serious socia-economic consequenes 
on our economy.  
167. Furthermore, the price of copra, fish, palm oil and cocoa has also been affected by the global 
crisis. This has harmed export receipts and increased  the pressure on the country’s foreign reserves.  
Foreign reserves had declined to around 2.6 mont hs of import cover at the end of March 2009 
compared to 3 months in March 2008.  Prelim inary revenue data fo r March 2009 show that 
collections from the two major sources (Customs and Inland Revenue) were lower than budget and 
the same month last year. The decline in exports  as a result of the global crisis has dampened 
economic growth and GDP growth is expected to decline around 5 to 7 per cent in 2009.  
168. However, the Government has taken a number of measures to address the enormous 
challenges that the economy is facing and some of these include:   
169. Budgetary measures. The Government has in troduced a 10 per cent reservation on 2009 
Budget expenditures and is also controlling payroll expenditure. And will only fund prioritized project 
under the development budget. 
170. Tax reform. The Government is also cons idering implementing new revenue measures 
including increasing excise duties on alcohol and tobacco. WT/TPR/M/215 
Page 26  
 
  171. The Government is taking a number of measure s to encourage the growth of a stronger 
private sector.  Some of these measures include:  the implementation of the new Secured Transaction 
Act, 2008 and the establishment of a new Secured Tr ansaction Registry, 2009;  the implementation of 
the new Companies Act 2009 and Companies (Ins olvency and Receivership) Act 2009 and the 
establishment of a new Companies Registry, 2009;  the introduction of a new Corporate Trustees 
Law, 2009–2010;  the review and reform of busin ess registration and licenses regime, 2009–2010;  
the review and reform of enforcing contracts, 2009–2010;  the review and reform of Investment 
Policy, Law and Promotion, 2009–2010;  the review  and reform of property registration;  improving 
the performance of key SOEs providing services like water, energy and air services. 
172. In 2008, the Central Bank also tightened monetary policy in order to arrest excess liquidity in 
the banking system and to protect foreign reserve s amongst other things.  This action was taken 
because the excess liquidity overhang that is driving credit growth has directly contributed to the rise 
in import payments, high inflation and downward pre ssure on the foreign reserves. Whilst it is still too 
early to judge with certainty, so far the measures ar e producing the desired results.  Inflation peaked at 
23.5 per cent in September 2008, and slowed down to  a provisional 17.8 per cent in March 2009 (the 
fall in oil prices has also contributed to the declin e); import growth has slowed to 14 per cent in 2008 
from 46 per cent in 2007; and the decline in foreig n reserves has stabilized at around 2.6 months of 
import cover since November 2008.  The measures ha ve also led to a rise in deposit rates from a 
weighted average deposit rate of 0.6 per cent in 2007 to 3.0 per cent in 2008, a welcome development 
following many years of very low deposit rates. These measures are being continuously reviewed and 
will be adjusted and amende d as and when appropriate. 
173. The above-mentioned measures are consistent  with Basle requirements, and were 
implemented with input and guidance from both th e Australian Prudential Regulation Authority and 
the IMF.  These measures did not constrain comme rcial banks’ activities because commercial banks 
in Solomon Islands actually reported record profits  in 2008 and are comfortable with the supervisory 
guidelines. There are several consultative mechan isms in place for the Central Bank of Solomon 
Islands (CBSI) and commercial banks to discuss mone tary policy and regulatory issues before they 
are implemented.   
174. The Government is currently updating its Medium Term Fiscal Strategy to reflect changes in 
Solomon Islands and the global economy.  Full deta ils of planned reforms are contained within the 
Medium Term Fiscal Strategy a nd Medium Term Development Stra tegy. The Government has also 
been engaged with donors to discuss how they might a lter or speed up their delivery of programs in 
such a way as to bolster foreign reserves. This  will help the Government to implement its 
development projects and boost economic growth. 
175. Solomon Islands will continue to  diversify its economy into other sectors such as agriculture, 
fisheries, mining and servcies, in particular tour ism. The Government will also continue to pursue 
reforms which will make it easier to do business  in Solomon Islands. And some of the measures that 
have been considered in this context include th e implementation of the Secured Transactions Act, 
company registries and the development of infrastructur e such as roads and wharv es to facilitate trade.  
176. There were a number of questions on Foreign Investmnet and my delegation has provided 
comprehensive answers to these questions. However, I would like to reiterate that Solon Islands will 
continue to reform its investment regime to make it more liberal, tr ansparent and predictable. In 2005, 
the Government passed the Foreign Investment Ac t which simplified the registration and approval 
process.  Since then, about 554 applications were re ceived and only three were rejected  because ethey 
fell under the restricted list. The Act also est ablished the Investment Facilitation Committee and 
empowered it to review the decision of the Registrar upon appeal by applicants that are refused a certificate.   WT/TPR/M/215 
 Page 27 
 
 
  177. The Foreign Investment Act provides national treatme nt in almost all investment activities.  It 
also makes reference to both the Convention on the Settlement of Investment Disputes Between States 
and Nationals of Other States (ratified by Solo mon Islands in 1981) and the APEC non-binding 
investment principles. 
178. Furthermore, the new Company Act passed in March 2009 will significantly shorten the 
registration process. The Governement is currently  working on addressing issues pertaining to the 
regulation of businesses by both the central and pr ovincial Government with a view to further 
facilitate foreign investment. 
179. The Government is also considering reforming its  laws relating to land registarion to make it 
easier for foreign investors to have access to land.  A Bill will be presented to Parliament in 2009 to 
further facilitate the registration of customary la nd by adopting aspects of traditional knowledge and 
systems into the determination of customary owne rship.  A customary land reform unit has been 
established within the Department of Lands, whose focus is on raising awareness of the benefits of 
registering customary land in the provinces.   
180. Some of the steps that have been taken by th e Government to facilitate investment include:  
the promulgation of the Insolvency and Receivershi p Act, 2008;  the promulgation of the Companies 
Act in March 2009 with the assistance from the ADB ;  the Foreign Investment Act, 2005, supported 
by the World Bank through the Foreign Investment Advisory Service;  the project to simplify 
investment policy in May 2009. 
181. Full details of planned reforms are contained w ithin the Medium Term Fiscal Strategy and 
Medium Term Development Strategy. 
182. With regards to Trade Policy, Solomon Islands  has made some remarkable progress. As was 
noted by many Members on Wednesday, Solomon Is lands is one of the six LDCs that have bound 
100 per cent of their tariffs. The Government has also lowered its tariffs from an MFN average of 
about 23 to 9.1 per cent in 2007. Solomon Islands is not  yet ready to bind its tariffs at the low applied 
rate. However, in the long term the Government will consider making further commitments based on 
its level of development as well as its trad e, development and financial needs.  
183. Solomon Islands is also adopting a stepping stone  approach to trade liberalization. It is 
participating in various regional initiatives and is already liberalizing its tariffs under the Pacific 
Island Countries Trade Agreement (PICTA) as well as the Melanesian Spearhead Group Trade 
Agreement (MSG). These initiatives will comple ment what the Government is doing at the 
multilateral level. Solomon Islands is also participating in the la bour mobility arrangement called the 
Recognised Seasonal Employer (RSE) scheme which allows Solomon Islanders to work in New 
Zealand on a temporary basis and this has benefite d our people greatly.  We urge other developed 
countries to provide similar initiatives to smalle r countries like Solomon Islands as these types of 
schemes have direct and tangible benefits to our pe ople and the economy in general. They also enable 
us to exploit our comparative advantage in lo w skilled labour whilst overcoming the problem of 
distance from major markets. 
184. The Government has also been pursuing tempor ary movement of its people to Europe under 
the Economic Partnershsip Agreemen t and is looking forward to receiving a favourable response from 
the EC on this issue.  Solomon Islands is eager to establish a scheme with Canada to find employment 
for caregivers as soon as support from donor partners is  forthcoming.  As indicated in the writtten 
responses, all WTO Members will be notifed of all the regional arrangements that Solomon Islands is 
negotiating once they are finalised.  WT/TPR/M/215 
Page 28  
 
  185. As I pointed out in my opening statement on Wednesday, most institutions were affected 
during the tensions and this further weakened their capacity to comply with WTO obligations 
including those relating to notification, bound ra tes, transparency and non-discrimination amongst 
other things.  Despite these challenges, I would lik e to take this opportunity to reaffirm Solomon 
Islands’ commitment to the multilateral trading system and to assure all Members that the 
Government will make every effort, within the conf ines of its administrative and financial resources, 
to comply with relevant WTO obligations. This is  an area where a lot of technical and financial 
assistance will be required, and my Government we lcomes any support that the WTO as well as its 
Members can provide. If technical and financial assistan ce is forthcoming, it is expected that all the 
concerns raised by Members will be addressed fully. 
186. With regards to services, Solomon Islands is  currently reviewing its regulatory framework 
and is also in the process of negotiating the PICT A trade in services agreem ent. Once these processes 
are finalised, Solomon Islands will consider e xpanding its services commitments under the General 
Agreement on Trade in Services (GATS). However, trade liberalisation will only be undertaken in 
accordance with the fl exibilities that are accorded to LDCs.  
187. All the issues pertaining to Solomon Islands’ institutional framework are being addressed in 
the context of the Enhanced Integrated Framework and it is expected that the Diagnostic Trade and 
Integration Study (DTIS) will be finalised and im plementation will begin in 2009.  The DTIS will 
assist in  addressing many of the concerns raised by Members.  
188. Under the second theme “Trade Policies by Measure”, my Government has noted all the 
concerns that have been raised pertaining to cust oms issues. In this contex t, I would like to assure 
WTO Members that all the necessary measures will be undertaken to comply with the Customs 
Valuation Agreement. The Government has also drafted legislation that would facilitate the 
application of the 2007 version of the HS. However,  effective technical and financial assistance will 
be needed to ensure that these laws are implemented.  
189. With regards to questions that were raised on tariff reform and bindings, as noted by a number 
of WTO Members on Wednesday, Solomon Islands is one of the six LDCs with 100 per cent binding 
coverage. The Government has also undertaken autonomous liberalization during the period under 
review and the simple average applied MFN rate ha s declined from 23 per cent in 1998 to 9.1 per cent 
in 2009. About 82 per cent of tariff lines have a duty of 10 per cent and 17 per cent are levied at 5 per 
cent. The Government was able to undertake th ese reforms because it was fully aware that the 
requisite policy flexibility would allow it to adjust its  tariffs up to the bound rate  in times of difficulty.  
Binding tariffs at this very low level would eliminate this important policy flexibility. 
190. Solomon Islands is grateful for the flexibiliti es that have been offered to LDCs under the 
Doha Development Agenda (DDA), in particular th e exemption of LDCs from applying the formula. 
In this context, Solomon Islands will not be requi red to bind its current low applied MFN tariffs. The 
Government needs this flexibility to be able to ad just its tariffs, within bound rates, to take into 
account a number of international developments.  
191. The Government is fully committed to adhering to  the core principles of the WTO, including 
transparency and predictability, as this is vital to  promote trade and economic growth.  To this end, 
we will continue to review our tariffs with a view to  binding them at lower rates.  However, this will 
be done in a gradual and progressive manner taking into account our level of  development, revenue 
and industry development needs, as well as our  administrative and institutional capacity.   
192. Many Members raised the issue of tariffs ex ceeding their bound rates. Solomon Islands would 
like to inform Members that the tariffs being referred to constitute a small percentage. The 
Government will take the necessary me asures within the next 12–24 months to ensure that this issue is  WT/TPR/M/215 
 Page 29 
 
 
  resolved. We will also  review the goods tax rate in the context of the overall tax reform programme 
as articulated in the DTIS to ensure th at it will not discriminate against imports. 
193. With regards to import licensing requirements, I would like to inform Members that the 
Government will take the necessary action to ensu re that these measures are notified to the WTO. 
194. Concerning the question on rules of origin that  was raised by one Member, Solomon Islands 
would like to advise all  Members that the Govern ment only mantains preferential rules of origin 
under its regional trade agreements and does not ha ve non-preferential rules of origin. There is no 
need for non-preferential rules of origin becau se Solomon Islands’ tariff structure does not 
discriminate between WTO Members and non-WTO Members. Solomon Islands does not, therefore, require WTO Members to satisfy any rules of origin in order to qualify for the MFN tariff. 
195. We have noted that most of the questions th at were raised by Members relate mainly to 
notifications, transparency and technical standards.  As I indicated above, the Government lacks the 
necessary capacity to introduce various trade laws  and submit notifications including those on the 
TBT and SPS Agreements.  However, the Government is currently looking for technical and financial 
assistance to draft and implement various trade-re lated laws including those relating to the SPS and 
TBT Agreements.  Once the resources are secured, the relevant measures will be notified to the WTO. 
196. The Government is also working with the regiona l organisation (the Secretariat for the Pacific 
Community-SPC) to address all issues pertaining to the SPS Agreement.  
197. The Government will amend its laws to ensure  that draft SPS measures are notified within 
stipulated timelines to allow Members to comment  on measures before they are finalised.  The 
Government is fully committed to transparency an d will work with the WTO Secretariat as well as 
Member countries to ensure that all issues pertai ning to SPS measures are addressed.  The SPC is also 
assisting Solomon Islands to update its pest list. Furthermore, Solomon Islands is working with SPC 
to amend its biosecurity legislation. 
198. I would like to emphasize that Solomon Islands needs assistance to participate in standard-
setting bodies such as the OIE, IPPC and Codex. At the moment, standards are designed mostly by 
developed countries and do not adequa tely reflect the concerns of most developing countries. We 
need technical and financial assistance to be able to participate effectively in these bodies and to be 
able to implement our commitments under the SPS Agreement.  
199. My Government provides systematic tax con cessions on export profits, in accordance with 
Article 27.2(a) of the Agreement on Subsidies a nd Countervailing Measures.  The purpose of these 
concessions is to support export-le d economic development. However, other incentives, such as those 
extended to Guadalcanal Plains Palm Oil Ltd were ex tended in the aftermath of the tensions in order 
to compensate firms which had suffered substantial damage to their property during the civil unrest.  
At the time, Government did not have the res ources to extend immediate compensation.  These 
exemptions are not linked to export performan ce or incorporation into exported products. 
200. With regards to Government Procurement, th e Office of the Auditor General has found many 
instances of non-compliance with national procuremen t practices.  This is a real concern to my 
Government.  However, in order to address some of these issues, each ministry has established a Tender Committee to authorise tenders larger than  $50,000, and the Government has established a 
Central Tender Board to authorise tenders larger than $100,000. A review of all of the Government’s 
Financial Instructions is underway, and the chap ter pertaining to supply chain management and 
tendering processes will receive partic ular attention.  Further educati on is also required to bring all 
ministries’ awareness of the Financ ial Instructions up to scratch. WT/TPR/M/215 
Page 30  
 
  201. The proposed, revised, Financial Instructions explicitly prohibit the purchase of goods based 
solely on preferred brands. The G overnment will consider establishing a formal procedure for bidder 
complaints. Currently, Solomon Islands is par ticipating in the regional study on Government 
Procurement under PICTA which seeks to liber alise Government Procurement and promote 
transparency and best Government Procurement standards.  
202. Competition is an issue that is very important  to Solomon Islands.  The small size of our 
economies and the distance from foreign markets often enables firms to charge monopoly prices.  This is true even in markets which are usually competitive without regulation in larger economies.  
Solomon Islands sets direct limits on the price of  many goods, including fuel and basic foodstuffs. 
The Government understands the need to actively mon itor such controls to make sure they fairly 
balance the needs of retailers and consumers.  In fact, the Government conduc ted a detailed review of 
the cost structure of fuel retailers in 2008, which resulted in an increase in the permitted mark-up of 
diesel fuel in Honiara.  Despite outdated legislati on, in practice such controls are no longer based on 
brands.  References to brands that remain will be  removed next time the legislation is reviewed. 
203. Solomon Islands also has a history of complicat ed procedures for business licensing.  This is 
exacerbated by the complex relationship between cen tral and provincial governments, a relationship 
that is continuously evolving and politically sensi tive.  However, an active work programme is 
systematically addressing these problems.  Reform of  the business registration and licensing regime is 
planned for 2009 and 2010. 
204. In small Pacific economies, there are many markets in which competition is not sufficient to 
deliver the services that people desperately need , and state-owned enterprises have often been 
necessary to supplement the private sector.  Ho wever, others have placed an unnecessary and 
unaffordable burden on the State’s finances, a nd Government is conti nually reviewing their 
performance with a view towards restructuring or pr ivatising those which are not currently performing 
well.  The Government recently privatised Home Fi nance Ltd. In future, Solomon Islands will take 
greater care to notify these SOEs to the WTO Secretariat where appropriate. 
205. Intellectual property is another area in whic h my Government lacks capacity.  A revised 
Copyright Act has been passed by Parliament, but we lack the institutional resources to implement it.  
The Ministry of Health appreciates the special and differential treatment provided to LDCs to improve access to patented pharmaceuticals, but in practice do es not have the capacity to take advantage of the 
opportunities it provides. The Government will make  every effort, within the confines of its 
administrative and financial resources, to ensure that  its laws are brought into conformity with the 
relevant provisions of the TRIPS Agreement. To this  end, the Government looks forward to technical 
cooperation under Article 67 of the TRIPS Agreement to assist it with implementation, especially in 
those areas that have direct benefits to Solomon Islands.  
206. With regards to Sectoral Policies, it is importa nt to note that agriculture, mainly palm oil, 
copra and cocoa play a vital role in supporting rura l livelihood in Solomon Islands. The recent fall in 
the world price of these commodities ha s lead to a significant drop in production, especially in copra.  
Many rural communities depend on these crops as their main source of cash income. These 
communities will be hit hard, and poverty will incr ease. However, the Government is taking some 
measures to improve the income of these smallholders.  Some of the plants are old and the Government is assisting farmers to replant.  Furt hermore, the Government supports value addition in 
these commodities to maximise the return from exports. 
207. As highlighted above, forestry plays a vital role in the economy. And as rightly noted by 
many Members, the decline of logging exports poses a major challenge to our society.  Export 
receipts and tax revenue from logging are alrea dy falling.  The progress of my Government to 
improve the legislative framework has been diffi cult and slow.  I hope Members will appreciate the  WT/TPR/M/215 
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  tremendous practical problems that our Customs and Forestry services face in trying to monitor 
logging exports that are shipped directly from the coast of one thousand islands. 
208. However, I am pleased to note the support that  Australia has provided in terms of forestry 
management.  In recent years, their support has be en instrumental in increasing reforestation and 
improving environmental sustainability.  The Co mmonwealth Development Cooperation has also 
been successful in large-scale repl anting in Kolombangara. I hope that my Government will shortly be 
able to make use of the very generous offer of  assistance from the European Commission for further 
reforestation. 
209. I would like to thank several Members for thei r interest in recent developments in our 
telecommunications sector.  Negotiations to end th e exclusive license of Solomon Telekom are still 
ongoing, but we hope very much that they will reach a successful conclusion within the next month or 
so.  My Government has a draft Telecommunications B ill prepared to be put to Parliament as soon as 
the license has ended, perhaps ev en in the June 2009 session. The Bill covers issues such as 
interconnectivity requirements, competition, and access to land.  My Government hopes to be able to 
issue an additional license for mobile telephone se rvices this year, and to have set up a new 
Telecommunications Commission to issue further licenses in early 2010. 
210. With regards to transportation, my Governme nt aims to improve air transport services and 
lower prices by liberalising the sector and improving infrastructure.  The Gove rnment intends to ratify 
the Pacific Islands Air Services Agreement shortly.   We have already issued six air licenses to 
domestic operators, and new firms have  entered international routes in the last two years.  However, 
enormous challenges remain.  The first is to co mplete much-needed improvements to our airport 
infrastructure, and to maintain that infrastructure properly.  The second is to ensure that our remote 
rural communities continue to receive the services that they depend on, ev en when these services are 
not commercially viable.  Their continued economic development relies on it. It is clear that the 
Government does not have the financial resources to  invest as much as is needed in this area, and 
support from interested donors will be crucial. 
211. With regards to a question on professional qualif ications, I would like to inform you that 
Solomon Islands is not a major provider of higher e ducation, and does not train lawyers, engineers or 
architects.  All of the qualifications recognised by  our professional associations are foreign. Those 
professional associations are responsible for determin ing what qualifications are sufficient to practice 
in the domestic market. 
212. It is clear that the challenges and obligations that Solomon Islands faces as an LDC are 
enormous. To this end, we would like to urge all the Members to honour their Aid for Trade 
commitments and to ensure that Solomon Islands receives a fair share of Aid for Trade resources. 
There is a need to ensure that Aid for Trade is additional, effective, operational and demand driven. 
We look forward to actively participating in the second Global Review on Aid for Trade in July. We 
also invite Members to participate in the Pacifi c Round Table Meeting on Aid for Trade that will be 
held in June 2009 in Apia, Samoa. 
213. Solomon Islands has not been able to answer some of the questions adequately due to time 
constraints.  In many cases, the institutional capacity  does not exist to respond to enquiries within the 
period of time provided.  In others, line ministries do not routinely record sufficient information to be able to respond adequately.  We understand that sufficient time is provided to answer additional 
questions after the Trade Policy Review (TPR). Howe ver, there is not sufficient time to prepare for 
the TPR and to consult with all the agencies and answer all the written questions that are submitted 
two weeks before the TPR. In this context, Solomon Is lands would like to request that the time that is 
given to LDCs to respond to written questions be extended to one month instead of two weeks.   WT/TPR/M/215 
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  214. With these few words, may I on behalf of my Government once again convey our 
appreciation for the interest expressed in our TPR .  The TPR has helped us to consolidate our 
understanding of WTO rules. We hope that Members have also gained a greater understanding of our 
trade policies and practices, as well as the challeng es that we currently face. We look forward to 
working with all Members to ensure not only a su ccessful conclusion of the DDA but also the smooth 
functioning of the rules-based multilateral trading system.    
DISCUSSANT 
215. I am encouraged and heartened that the delega tion has been able to respond to quite a few 
questions.  I also appreciate the many frank explanat ions and responses, particularly as they pertained 
to explaining the depth of existing institutional constraints in Solomon Islands.  In many of the 
responses, I must add that Solomon Islands has al so well illustrated how far it has progressed since 
the tensions, for example, on trade liberalization and efforts to promote private sector growth. 
216. If I could, I would characterise the discussions over the last two days into two clear themes:  
First, core to the questions raised was the question of sustainability ; not just environmental 
sustainability, but also economic and institutional sustai nability – in terms of the diversification of the 
Solomon Islands economy, the need to increase tran sparency and predictability to promote long-term 
trade and investment, and of course the need to build up its human resource capacities.   
217. The responses that we have received from Solo mon Islands provide what I see as the second 
theme: and that is realism .  The fact is that Minister Haomae’s comments on the first day, the written 
responses, and the Minister’s comments today, point ve ry clearly to the real constraints of LDCs and 
SVEs such as Solomon Islands.  I applaud Solom on Islands for what has been a successful TPRB, 
despite these constraints.  The next point of realis m then is the clear importance of Aid-for-Trade and 
other forms of technical and financial assistance in  helping Solomon Islands participate more fully 
and benefit from participating in the multilateral trading system. 
218. In the responses provided by Solomon Islands, I also see two clear groups of questions and 
responses: those that related to the Solomon Isla nds economy and economic policies in general, and 
those related to trade- and WTO-related issues.  The responses to the first category of questions, 
which included clarifications on the tax regime, budg et, fiscal and monetary policy, privatisation and 
specific sectoral issues such as forestry and aviati on, were laudable, and contributed greatly to our 
understanding of the Solomon Islands economy. 
219. On the second category, many of the questions posed by members focused on whether, when, 
how and to what extent Solomon Islands inte nded to honour its WTO commitments through 
implementing the various agreements and through notif ications.  The answers are sobering, but at the 
same time, put the question back to the members who asked the question: how can Solomon Islands 
be helped, to build up its capacity to do so. 
220. This brings me to my concluding points.  I hope that the delegation from Solomon Islands has 
found this TPR useful.  To ensure that LDCs such  as Solomon Islands continue to gain as much as 
possible from this exercise, and to en sure that the effort put into preparations are best paid off, it may 
be useful to consider, where requested, an in stitutionalised follow-up process, whereby difficulties 
raised by members such as Solomon Islands at th eir TPR can be tracked and reviewed a period after 
the TPR, and the Secretariat where possible, can ass ist in issues such as building capacity towards 
notification commitments.  Particularly for me mbers such as Solomon Islands who do not have 
resident Missions in Geneva, such a follow-up pro cess, could further facilitate their participation in 
the WTO.  WT/TPR/M/215 
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  221. Finally, let me say that I appreciate the effo rts made by Solomon Islands to reaffirm its 
commitment to participating in the WTO and multila teral trading system, and like Solomon Islands, I 
also look forward to a speedy conclusion to th e DDA that does not deviate from its development 
origins. 
 
 WT/TPR/M/215 
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  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
222. This second Trade Policy Review of Solomon Is lands has shed light on Solomon Islands' 
trade and investment policies, and the context in  which these policies have been formulated and 
implemented since its previous Review in 1998.  We  owe this to the constructive participation of the 
Solomon Islands delegation, led by Minister Haomae and Ambassador Ma'ahanua, our discussant 
Mr. Ho, and Members who took part in the discussion. 
223. This has been an enlightening Review.  At the outset, allow me to underline Members' 
unqualified support for Solomon Islands' ongoing refo rm efforts.  Members have particularly 
commended efforts to liberalize the investment regi me, reduce tariffs, and undertake customs reform.  
These were considered key steps towards decr easing Solomon Islands' heavy dependence on the 
forestry sector as the principal engine of growth.  However, Members urged Solomon Islands to 
accelerate the pace of macroeconomic and structural re forms to achieve fiscal sustainability, diversify 
its economy, and improve living standards.  In this  regard, Solomon Islands noted that, although it did 
not have the institutional capacity to implement broad economic reform, it wa s committed to targeted 
liberalization programmes to reap economic be nefits in areas of comparative advantage. 
224. Members highlighted the need to strengthen in stitutional capacity, especially for trade policy 
formulation and implementation.  Solomon Islands  noted that, as a result of earlier civil unrest, 
rebuilding institutional capacity would be a le ngthy process and would require continued and 
concerted support from Members.  Solomon Islands was encouraged to enhance its participation in the 
multilateral trading system, including by making regular  notifications to the WTO.  Solomon Islands 
reaffirmed its commitment to the multilateral trading system, and stated that it would make every 
possible effort to submit outstanding notifications. 
225. Members congratulated Solomon Islands for the unilateral reduction of the level and 
dispersion of MFN applied tariffs, and the binding of its entire tariff schedule.  However, some Members stressed the need to comply fully w ith WTO binding commitments.  Some Members 
underscored the need to address the discriminatory a pplication of certain internal taxes.  Solomon 
Islands reiterated that it is working to bring several  aspects of its tariff and tax regimes in line with 
WTO disciplines.  Members expressed appreciation fo r the recent improvements in the administration 
of customs procedures.  Replying to Members' e nquiries, Solomon Islands noted that it would need 
additional technical and financial assistance to co mply with its multilateral commitments on customs 
valuation, SPS and TBTs. 
226. Members welcomed the liberalization and simp lification of Solomon Islands' investment 
regime, but highlighted the need to continue effo rts to improve the business environment, including 
through the reform of business licensing and registra tion requirements.  Solomon Islands noted that 
the recent adoption of the Company Act and other legisl ation was an important step in this direction. 
227. Members urged Solomon Islands to strengthen natural resource governance, particularly in 
the forestry sector, where harvesting rates were well above sustainable levels.  Solomon Islands 
indicated that it was fully committed to reforming forestry legislation and strengthening institutional 
capacity to promote sustainable practices.  Me mbers commended Solomon Is lands for adopting new 
legislation on civil aviation, a key step to foster  tourism and other sectors.  In response to queries 
about progress in liberalizing telecommunications  services, Solomon Islands noted that it was 
engaged in active negotiations to end the incumbent' s exclusive licence.  We thank the delegation of 
Solomon Islands for their timely responses to written questions. 
228. I would like to close this meeting by thanki ng the delegation of Solomon Islands for their 
constructive participation in this Review.  The pe rsonal engagement of Minister Haomae in this 
exercise reflects Solomon Islands' commitment to the multilateral trading system and is highly  WT/TPR/M/215 
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  appreciated by us all.  We now have a much clearer  picture of your trade policies and practices, and 
the challenges before you to advance trade and inv estment liberalization.  I encourage Members to 
assist Solomon Islands in every way they can.  I also hope that the widespread appreciation and 
support voiced by Members during your second Trade Policy Review will provide added impetus to 
consolidate and deepen the refo rm process launched in 2003. 
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