RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/TON/4 
12 March 2003 
 (03-1397) 
Working Party on the 
Accession of Tonga  
 
 
 
DRAFT REPORT OF THE WORKING PARTY  
ON THE ACCESSION OF THE KINGDOM OF TONGA  
TO THE WORLD TRADE ORGANIZATION 
 
Introduction  
1. The Government of the Kingdom of Tonga applied for accession to the World Trade 
Organization in June 1995.  At its meeting on 15 November 1995, the General Council established a 
Working Party to examine the application of the Government of Tonga to accede to the World Trade 
Organization under Article XII of the Marrakesh Agreement establishing the WTO.  The terms of 
reference and the membership of the Working Party are reproduced in document 
WT/ACC/TON/2/[Rev.6]. 
2. The Working Party met on 26 April 2001; and ………………... under the Chairmanship of 
H.E. Mr. S. Harbinson (Hong Kong, China). 
Documentation provided  
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Tonga (document WT/A CC/TON/3), the questions submitted by Members 
on the foreign trade regime of Tonga, together with the replies thereto, and other information provided 
by the authorities of Tonga (WT/ACC/TON/ 4; WT/ACC/TON/5; ………..……), including the 
legislative texts and other documentation listed in Annex I. 
Introductory statements  
4. The representative of Tonga said that the Kingdom  of Tonga was a small island nation with 
limited human and financial resources and a fragile ecosystem, highly vulnerable to natural disasters 
and adverse external changes.  Rising sea levels repr esented a direct threat to his country.  Tonga's 
economy relied heavily on imported goods and a few ex ternal financial sources.  The trade balance 
deficit was largely financed by remittances from Tongans living abroad.  The main industry, the 
fishing industry, had witnessed significant improve ments over the past decade, but its performance WT/ACC/SPEC/TON/4 
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was undermined by weather disturbances and high transportation costs.  These factors made it 
difficult for the country to attract foreign investment.   
5. In Tonga, accession to the WTO was seen as a powerful instrument  to enhance trade security, 
create new trade and investment opportunities, and strengthen multilateral cooperation.  It was 
considered important to foster competitiveness and development and help Tonga better integrate into 
the world trading system.  His Government had put in place a national mechanism to coordinate 
accession to the WTO, and had taken a number of measu res to bring Tonga's trade regime in line with 
WTO requirements.  The 1996 Harmonised System Nomenclature had been introduced.  Tonga had 
established a National Codex Alimentarius Committ ee.  Tonga had also become Member of the 
World Intellectual Property Organization (WIPO) in July 2001, and new legislation had been drafted 
to ensure compliance with WTO TRIPS regulations. 
6. Members of the WTO welcomed the applicati on from the Kingdom of Tonga to join the 
Organisation.  Members were impressed by the effo rts undertaken by Tonga so far, but noted that 
further work would be required, particularly in the area of legislation, for Tonga to be in compliance 
with WTO requirements.  WTO Membership was seen by some Members as a powerful tool for 
Tonga to achieve its developmen t objectives and reduce the business costs for local enterprises.  
Members looked forward to a rapid and smooth accessi on process, resulting in terms that would strike 
an appropriate balance between the rules and requirements of the WTO and Tonga's level of 
development.   
7. The Working Party reviewed the economic polic ies and foreign trade regime of Tonga and 
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members of the Working Party on the various aspects of Tonga 's foreign trade regime, and on the terms and 
conditions of Tonga's accession to the WTO are summarized below in paragraphs 8 to [142]. 
ECONOMIC POLICIES  
Monetary and fiscal policy
 
8. The representative of Tonga said that the central bank, the National Reserve Bank of Tonga, 
was responsible for the formulati on and implementation of Tonga's monetary policy in coordination 
with the Ministry of Finance.  The main objectiv es of Tonga's monetary policy were to ensure a 
sufficient level of foreign exchange reserves to meet  import requirements, maintain a stable exchange 
rate for the national currency - the Pa'anga (TOP),  and to slow the increase in bank lending to the 
private sector.  Instruments used to this end in r ecent times included adjustments of interest rates and 
increases in mandatory reserve requirements for the commercial banks.    WT/ACC/SPEC/TON/4 
 Page 3 
 
 
9. Fiscal policy aimed primarily at balancing th e budget (an objective wh ich had been achieved 
in recent years);  increasing the efficiency of  government services;  promoting private sector 
development through the application of stricter economic, financial, and e nvironmental criteria for 
borrowing together with improved debt recording and reporting systems;  improving public debt 
management;  and strengthening the monitoring  and management of public enterprises.   
10. A tax reform programme was under considerati on with a view to moving emphasis from trade 
to internal taxes and enhancing the effectiveness of  the tax administration.  Under this programme, 
individual and corporate income taxes would be modifi ed to ensure greater fairness.  The details and 
timing of the programme, which would have to be carefully planned to avoid any loss of revenue, 
would depend on the terms of Tonga's accession to the WTO.   
Foreign exchange and payments  
11. The representative of Tonga said that the value of the currency of Tonga - the Pa'anga - was 
pegged to a basket including the currencies of the United States, Japan, Australia and New Zealand.  
The Foreign Exchange Control Act (Cap 103) provid ed for foreign exchange controls.  Under the 
Foreign Exchange Control regulations (Section 2), currency transfers outside the territory of Tonga 
required authorization by the Minister of Finan ce, which was generally granted provided Tonga's 
international reserves were deemed  adequate and the transaction was considered beneficial to Tongan 
exports.  Acquisition of foreign financial assets was o fficially prohibited, but this restriction was not 
effective, and a repatriation requirement was not being monitored.  Commerc ial banks were required 
to report any transaction exceeding TOP50,000 to th e National Reserve Bank, and were allowed only 
to hold working balances in foreign currencies, up to a limit of TOP1 million.  Forward exchange 
cover was currently not permitted for imports;  cove r for squash exporters required approval from the 
Ministry of Finance.   
12. He added that Tonga had been a member of the International Monetary Fund (IMF) since 
1985.  Tonga's representative on the IMF Board of G overnors was the Minister of Finance or, in his 
absence, the Governor of the National Reserve Bank of Tonga.  Tonga had accepted the obligations of 
Article VIII, Sections 2, 3, and 4 of the Articles of Agreement of the IMF on 22 March 1991.  Tonga's 
international reserves had amounted to TOP34.1 million in mid-1999. 
13. Asked about restrictions on forward exchange c over for imports and further plans to extend 
the convertibility of the Pa'anga and liberalise capital  flows, the representative of Tonga replied that 
no changes were foreseen in the regime affecting paym ents and capital movements for the time being.  
He stressed that Tonga's foreign exchange system was free of restrictions on payments and transfers 
for current international transactions.  WT/ACC/SPEC/TON/4 
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Investment regime
 
14. The representative of Tonga said that th e 1978 Industrial Development Incentives Act, 
Cap. 114 (the IDI Act) regulated both domestic and foreign investment.  The Act aimed at fostering 
the establishment of manufacturing, processing, and assembling industries;  tourism projects, including accommodation, vessels, sport facilities and t ourist sites;  service-oriented repair activities;  
and agricultural and fishery enterprises.  Incen tives were provided through a system of tax 
exemptions.  Potential benefits included (i) income tax holidays including, for non-resident investors, 
on the withholding tax for up to five years;  (ii) accelerated depreciation of assets;  (iii) exemption 
from customs duties on imported capital goods for up to two years;  (iv) duty drawbacks on imported raw materials and components;  (v) a 50 per cent ex emption from Port and Services Tax;  and (vi) the 
right for non-resident companies and shareholders to  repatriate profits and capital gains.  Any person 
wishing to benefit from these incentives had to appl y for a Development Licence to the Minister of 
Labour, Commerce and Industry.  Be nefits granted depended on the na ture of the project and were 
listed in the Development Licence.   
15. Applicants for Development Licences were re quired to complete a form and provide 
information on the nature of the project, its cost a nd financing;  employment requirements, including 
the employment of expatriate staff;  potentia l markets for the products;  details on the incentives 
sought;  information on the experience and financial background of the applicant and all shareholders;  
and needs for electricity and water.  In addition,  applicants were request ed to submit financial 
statements or bank references indicating their fi nancial strength, and a business plan including 
information on proposed production, market prosp ects, financial matters, personal arrangements, 
office and land lease, and cash flow projections for the first three years of activity.  In the case of tourism prime facility projects, a construction plan  duly approved by the Ministry of Health and 
Ministry of Work was required.  A TOP200. 00 fee was charged for each application for a 
Development Licence.   
16. Applications were examined by a Standing  Advisory Committee established within the 
Ministry of Labour, Commerce, and Industry.  The Committee included the Minister and Secretary of 
Labour, Commerce and Industry;  the Secretary of Finance;  the Managing Director of the Tonga 
Development Bank;  the General Mana ger of the Bank of Tonga;  the Director of the Central Planning 
Department;  and ad hoc members as required.   The Committee made recommendations to the 
Minister.  Applicants were informed in writing of th e decision and, in case of approval, of the terms of 
the licence.  The licence could be used to obtain a work permit – or Temporary Residence Visa – from the immigration authorities.  Licence holders had to  register their company with the Registrar of 
Companies as provided for in the Companies Act, Ca p. 27.  Registration was subject to the approval  WT/ACC/SPEC/TON/4 
 Page 5 
 
 
of the Privy Council.  Although not specifically stated  in the Act, in case of rejection the refusal to 
deliver a licence could be appealed to the Ministry  of Labour, Commerce, and Industry.  In 1998, 68 
projects involving a total investment of TOP14 m illion had been approved, mainly in manufacturing 
and agriculture.  By 1998, 1,104 licences had been  delivered, leading to the creation of 1,072 
businesses, of which 860 were still active.   
17. Domestic and foreign investors were entitled to  the same benefits and subject to the same 
procedures.  However, in the case of foreign inv estment the Committee would study the extent to 
which the project provided substantial and continui ng benefits to the people and economy of Tonga 
and include these considerations in the recommenda tion to the Minister.  The Committee examined 
whether the project (i) involved the processing of local  resources;  (ii) substantially contributed to 
local added value;  (iii) was labour intensive;  (i v) had export potential;  (v) contributed to import 
substitution;  (vi) had a reasonable level of local pa rticipation;  (vii) would have a multiplier effect 
leading to the creation of ancillary enterprises;  (viii) was likely to complement other domestic 
manufactures;  (ix) and satisfied any other criteria the Committee might consider relevant.   
18. Several Members were seriously concerned a bout the discretionary powers exercised in 
investment approval decisions in Tonga and some of  the criteria used in deciding whether to grant a 
licence for foreign investment.  These Members obser ved that the benefits provided under the IDI Act 
would seem, in law or in fact, to be continge nt upon export performance,  import substitution local 
content requirements.  The concerns raised by Me mbers are discussed below in further detail in the 
sections "Industrial policy, including subsidies" a nd "Trade-Related Investment Measures (TRIMs)". 
19. The representative of Tonga stressed that his G overnment encouraged foreign investment, and 
the criteria listed in the Act had consequently not been  applied in practice.  He added that Parliament 
had recently passed a new law - the Foreign Invest ment Act - with a view to bringing Tonga's 
legislation into line with WTO provisions.  The ne w Law would become effective as of the date of 
Tonga's accession to the WTO.   
State ownership and privatization  
20. The representative of Tonga said that a large number of services, infrastructure, and 
commercial activities had traditionally been government -funded.  In 1998, his Government retained a 
stake, either through equity or loans, in 26 enterp rises, including public utilities.  About 6 per cent of 
the population worked in the public sector.  No sp ecial privileges were gran ted to these enterprises, 
which, in his opinion, did not have any significan t influence on the level or direction of Tonga's 
imports or exports.   WT/ACC/SPEC/TON/4 
Page 6  
 
21. Tonga's public utilities included the Tonga Wa ter Board, established under the 1978 Water 
Board Act, Cap. 92, and responsible for the supply of water in the main populated areas;  the Tonga 
Electric Power Board, created under the Tonga Electri c Power Boards Act, Cap. 93, to generate and 
supply electricity throughout Tonga;  the Tonga  Broadcasting Commission, established under the 
Broadcasting Commission Act, Cap. 100, which op erated public radio services;  and the Tonga 
Telecommunications Commission, created under th e Telecommunications Act, Cap. 96, which 
provided domestic telecommunications services and re gulated private radio and television services.  
Private sector representatives participated in th e Board of Directors of these enterprises.   
22. His Government aimed at rationalisation of public sector activities, including through 
privatization.  A Cabinet Sub-Committee had been es tablished to plan the restructuring of government 
commercial activities, and a Government Invest ment Unit (GIU) to develop a programme of 
privatization.  Since 1998, his Government had privatised the Port Authority, the Tonga 
Telecommunication Commission, the Royal Beer Co. Lt d, and the Machinery Pool, and plans existed 
to liquidate the Primary Product Company.  The G overnment Store, which used to supply the public 
and private sector with hardware and other pr oducts had ceased operations in 1999, except for the 
disposal of goods undergoing processing.  A list of  enterprises with State ownership as per 30 June 
2002 is provided in Table 1.  He expected the priv atization programme to be completed over a period 
of 5 to 10 years.  He confirmed that Tonga mainta ined no restrictions on foreign participation in the 
privatisation programme. 
Pricing policies
  
23. The representative of Tonga said that Tonga a pplied price control on basic necessities to 
protect consumers, in particular low income fam ilies.  Maximum prices were set for these goods to 
prevent wholesale and retail suppliers from taking advantage of local monopoly conditions resulting 
from the small size of the economy.  An exhaustive list of these commodities is provided in Table 2.  
None of these products, except for bread, were pr oduced locally, and State-owned enterprises did not 
operate in the markets of price controlled goods.  Pr ices for services, local agricultural products, fish 
caught locally, ex-bond goods, and Export Board sales were determined freely by market forces.   
24. The legal basis for Tonga's price controls was the 1988 Price and Wage Control Act, 
Cap. 113.  Controls were enforced by the Comp etent Authority Committee, established within the 
Ministry of Labour, Commerce, and Industry, and chaired by the Minister.  Other members of the Committee included the Minister of Finance, Secr etary of Labour, Commerce and Industry, Deputy 
Secretary of Commerce, and three representatives  of the private sector.  The Committee met on a 
monthly basis and was responsible for setting ma ximum prices, monitoring minimum wages, and  WT/ACC/SPEC/TON/4 
 Page 7 
 
 
carrying out controls, including on-site inspections at traders' premises.  The Committee could request 
traders to submit oral or written information on prices, wages and working hours and, in case of 
violation, to prohibit the sale of the incrim inated goods until prices had been modified.   
25. Responding to specific questions, the representative of Tonga said that controls were carried 
out at the point of sale, and not at the border, as the primary purpose of the price controls was to 
protect the interests of consumers.  He confirme d that Tonga's price controls did not affect the 
valuation of goods for customs purposes.  Except fo r standard size bread (454 grams) and petroleum 
products, for which the Committee determined the maximum wholesale and retail prices, the Committee controlled the wholesale and retail marg ins, i.e the maximum percentage mark-up on 
landed cost for wholesale transactions, and the maximum allowed mark-up on wholesale costs for retailing.  He provided detailed information on th e mark-up calculations in Annex A of document 
WT/ACC/TON/5.   He added that his Governme nt had no plans to reduce the number of goods 
subject to price control, although some discussions had taken place on this matter, and confirmed that 
all products within the listed categories were s ubject to price control without exception.   
26. [The representative of Tonga stated that Tonga  would apply its price control measures in a 
WTO-consistent fashion, and take  into account the interests of exporting WTO Members as provided 
for in Article III:9 of the GATT 1994.  Tonga would also publish the list of any goods and services 
subject to price controls in its Official Gazette.  The Working Party took note of these commitments.]  
Competition policy
 
27. The representative of Tonga said that Tonga  had no specific legislation addressing 
competition issues, and had no plans to introduce such legislation.   
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
28. The representative of Tonga said that Tonga ha d become a sovereign and independent State 
within the British Commonwealth of Independent  States in 1970.  Tonga was a constitutional 
monarchy headed by His Majesty the King Taufa'ah au Tupou IV, who had acceded to the throne in 
1965.  The current Constitution had been promulga ted the same year.  The King chaired the Privy 
Council - comprising the Prime Minister, Ministers of the Crown and the two Governors of Ha'apai 
and Vava'u, all appointed by His Majesty – which a dvised and assisted His Majesty in his functions.  
The Cabinet, the second branch of the executive, was composed of the Ministers of the Crown and the 
Governors.  Cabinet Ministers held office until their retirement.   WT/ACC/SPEC/TON/4 
Page 8  
 
29. Legislative powers were exercised by the Legislative Assembly, made up of Privy 
Councillors and Cabinet Ministers, sitting as nobles;  nine representatives of the nobles, elected by the 
nobles;  and nine representatives of the people elected  every three years by universal suffrage.  The 
Assembly was the only organ empowered to adopt laws  (Clause 55 of the Constitution).  Bills had to 
be passed three times by the majority of the Assembly members before being presented to His Majesty for Royal Assent, and became law upon publi cation.  The Governors we re responsible for the 
implementation of laws within their district.   
30. Judicial power was exercised by the Magistrates' Court, the Court of Appeal, the Supreme 
Court and, for land-related matte rs, the Land Court.  Judges were appointed by His Majesty in 
Council.  The Magistrates' Court was the lowest court, dealing with criminal and civil cases for which the sanctions foreseen by the law would not exceed TOP1,000 – or three years imprisonment in the 
case of criminal charges.  The Land Court was the supreme court in charge of land related cases, 
including hereditary estate taxes and town allotment mortgages.  Tonga's present judicial system did 
not provide for specialized administrative or comme rcial courts.  Administra tive decisions could be 
appealed under the Supreme Court Act.   
31. [The representative of Tonga confirmed that from the date of its accession, Tonga’s laws 
would give foreign and dom estic importers and exporters the ri ght to appeal administrative action 
relating to matters subject to WTO provisions to an independent body in full conformity with WTO 
obligations, including Article X:3(b) of the GATT 1994.  The Working Party took note of this 
commitment.] [The representative of Tonga confir med that from the date of accession to the WTO, 
Tonga would abide by the provisions of WTO relating to judicial and administrative decisions, including Article X:3 of the GATT 1994.  The Working Party took note of this commitment.] 
32. Policies related to foreign trade were formulat ed and implemented by the Ministry of Labour, 
Commerce and Industry, in cooperation with the Minist ries of Finance;  Police;   Health;  Agriculture 
and Forestry;  and Fisheries.  His Governme nt had established a Trade Coordination Committee 
chaired by the Minister of Labour, Commerce and I ndustry to coordinate the work of the various 
government entities.  Border control fell under the competence of the Minister  of Finance, who was 
also responsible for customs duties, and taxes a nd excises, as well as the issuance of import licenses 
for some products.  The Minister of Police, Fire Services and Prisons was in charge of immigration.  
He granted entry and resident permits and issued import licenses for restricted products.  The Minister 
of Agriculture and Forestry, the Minister for Fisherie s and the Minister for Health regulated matters of 
public health, quarantine and phytosanitary measur es related to importation and exportation.  The 
formulation and implementation of policies affecting trade in services involved the Tonga Visitors 
Bureau, Tonga Telecommunications Commission, T onga Electric Power Board, the Ministries of  WT/ACC/SPEC/TON/4 
 Page 9 
 
 
Finance, Civil Aviation, Education, Justice, and Po rts and Marines.  While trading regulations were 
set out in laws and regulations, residual discre tionary powers could also be exercised by the 
competent Minister when required.   
33. The private sector could influence the legisla tive process through consultations held with the 
Ministries through associations such as the Tong a Chamber of Commerce, the Small Business 
Association, the Tonga Tourist Association, the Society of Accountants, the Tonga Business and 
Professional Women's Federation Inc, and the Law Societ y.  In the reform of trade legislation, the 
Ministry of Labour, Commerce and Industry c onsulted with the private sector via its 
Government/Private Sector Consultative Committee.   
34. The representative of Tonga acknowledged that implementing legislati on would have to be 
adopted in a number of areas to ensure compliance with WTO regulations.  He presented an overview 
of legislative action resulting from the WTO accession process in document WT/ACC/TON/7, noting 
that adequate and timely technical assistance woul d be needed to help Tonga in implementing these 
measures.  He confirmed the readiness of the his Gove rnment to work with the Working Party to help 
identify any further legislative deficiencies.  In response to a specific question concerning the 
procedures to be followed for the ratification of Tonga's Protocol of Accession, he said that the 
Accession Package would have to be approved by the Privy Council.   
35. [The representative of Tonga confirmed that Tonga would apply the provisions of the WTO 
Agreement, including Tonga’s Protocol, unifor mly throughout its customs territory and other 
territories under Tonga’s control, any special economic  zones, and other area s where special regimes 
for tariffs, taxes and regulations are established.  The Working Party took note of this commitment.] 
POLICIES AFFECTING TRADE IN GOODS  
Trading rights (the right to import and export)  
36. The representative of Tonga said that the Licences Act, Cap. 47, required any natural or legal 
person carrying on any business or calling specified in  a schedule to the Act to take out a licence and 
pay an annual fee.  The schedule covered a wide range of commercial activities, not necessarily linked 
to external trade.  The decision to  issue a licence was not discretionary  or subject to specific criteria, 
but rather a simple "pay-and-serve" process.   
37. He added that a new Business Licences Bill would repeal the Licences Act Cap. 47, and 
introduce a simple, transparent procedure for the i ssuance of business licences.  The new legislation 
aimed at bringing Tonga’s rules in this area into lin e with best international practice and the rules of WT/ACC/SPEC/TON/4 
Page 10  
 
the WTO, i.e. Articles VIII:1(a), XI:1 and III: 2 and 4 of the GATT 1994.  The new Act required a 
licence to be issued provided the proposed activity w as not prohibited;  the applicant was 18 years of 
age or older;  in case of partnerships, that all partne rs were at least 18 years of age;  and - for foreign 
investors - possession of a valid foreign investment registration certificate.  Any holder of a valid business licence could engage in impor tation or exportation without r estriction.  Concerning business 
licence fees, regulations would be issued stipul ating that these fees would be no higher than the 
approximate cost of the services rendered.   
38. [The representative of Tonga confirmed that fro m the date of accession, Tonga would ensure 
that its laws and regulations rela ting to the right to trade in goods and all fees, charges and taxes 
levied on such rights would be in full conform ity with its WTO obligations, including Articles 
VIII:1(a), XI:1 and III:2 and 4 of the GATT 1994 a nd that it would implement such laws and 
regulations in full conformity with these oblig ations.  The Working Party took note if this 
commitment.] 
1. Import Regulation  
Customs tariff
 
39. Noting that Tonga initially applied the Standa rd International Trade Classification (SITC), 
and that Tonga's Parliament had rejected proposed  changes to Tonga's classification system, some 
Members urged Tonga to implement a customs classi fication system in line with the international 
standard (the Harmonized System).  Trade tax es being an important component of government 
revenue, Tonga was also encouraged to take  steps to diversify its revenue base.   
40. The representative of Tonga replied that Tonga levied customs duties in  accordance with the 
Customs and Excise Act, Cap.67.  Tonga did not acco rd any tariff preferences, thus a single set of 
tariff rates was applied to all imports regardless of  country of origin.  Tonga had implemented the 
Harmonized System (HS 96) on 1 May 2000.  Import duties were mostly in the 0-30 per cent range, 
but higher rates were applied on motor vehicles, va ns and trucks (45 per cen t);  petroleum (35 per 
cent);  and beer, spirits, tobacco and cigarettes (rates ranging from 150 to 330 per cent ad valorem  or 
specific duty amounts, if higher).  The weighted average level of customs duties had amounted to 18.5 per cent in 1995.   
41. He added that two studies had been commission ed on reform of the tax system.  The 
proposals contained in these studies and their effect on the economy and government revenue would be reviewed carefully before any decision would be taken.  Changes in the tax system would have to 
take into account the implications of accession to the WTO.    WT/ACC/SPEC/TON/4 
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Other duties and charges  
42. The representative of Tonga said that, in add ition to customs duties, Tonga levied a 
20 per cent ad valorem  Port and Services Tax in accordance with the Port and Services Tax Act 
(Cap.71).  The tax applied to all imported goods ex cept those fully or partially exempt under the 
Industrial Development Incentives Act.  Among the tax-exempt items were essential goods such as 
educational, scientific and cultural books, documents  and materials;  fertilizers;  insecticides, 
pesticides and fungicides for agricultural use;  agricu ltural machinery, implements and tools;  timber 
milling machinery;  and stock feed and seeds. 
43. Some Members stated that the Port and Services Tax did not appear to meet the requirement 
of Article VIII of the GATT 1994, and requested that  it be eliminated in the context of Tonga's 
accession to the WTO.  Questions were also raised  about the WTO-consistency of Tonga's wharfage 
dues. 
44. The representative of Tonga acknowledged that  the Port and Services Tax should be 
considered an "other duty or ch arge" within the meaning of Article II of the GATT 1994, and recalled 
that Tonga had offered to bind its Other Duties a nd Charges at zero during the negotiations on market 
access for goods.  The Port and Services Tax woul d accordingly be removed in accordance with a 
timetable to be specified in Tonga's Sche dule of Concessions and Commitments on Goods. 
45. Concerning the wharfage dues, these were le vied according to Sections 5 and 16 of the 
Wharves Act 1992 (Cap.138) and Amendments 1997,  1998 on goods landed at or exported from the 
principal harbours and airports in Tonga.  The Po rts Authority charged wharfage on all cargo passing 
through the International Port of Queen Salote Wharf, such as TOP22 on petroleum products in bulk 
(per 1,000 litres or part thereof), and a terminal fee of TOP110 per containe r or TOP4.30 per ton.  
Having re-examined the dues levied under the Whar ves Act, Tonga recognized that these were also 
"Other Duties and Charges" on imports.  Tonga was a ccordingly prepared to take legislative action to 
remove the wharfage dues as from the date the zer o binding on ODCs would come into effect.   
46. [The representative of Tonga confirmed that  Tonga did not apply duties and charges on 
imports other than ordinary customs duties, with  the exception of wharfage dues and the Port and 
Services Tax to be applied through [date], as re corded in Tonga's Schedule of Concessions and 
Commitments on Goods.  Any other such charges applied to imports after accession would be in 
accordance with WTO provisions.  He further confirmed that Tonga would not list any other charges in its goods schedule under Article II:1(b) of the GATT 1994, binding such charges at [.. per cent] 
from the date of accession and at "zero" from [d ate].  The Working Party took note of this 
commitment.] WT/ACC/SPEC/TON/4 
Page 12  
 
Tariff rate quotas, tariff exemptions
 
47. The representative of Tonga said that Tonga di d not apply tariff rate quotas on any product, 
and had no intention to introduce such quotas. 
48. Tariff exemptions were granted according to th e Customs and Excise Act.  The coverage of 
the exemptions required a legal basis and could not be extended administratively.  Goods subject to 
duty exemption were goods for the use of the reig ning Sovereign, the Government of Tonga, or 
accredited diplomatic representatives and technical assistance officials;  personal effects and 
accompanied luggage of passengers (within specified limits);  ground equipment, fuel and lubricants 
for air services;  educational, scientific and cultura l articles;  charitable gifts;  marine life-saving 
equipment;  patterns, samples, advertising matte r and documents;  religious goods;  and trophies, 
medals and photographs.  A more detailed descripti on of such goods (mostly not by HS number) was 
provided in document WT/ACC/TON/4, pp. 22-25.  The coverage of the import duty exemptions and 
exemptions from Port and Services Tax were not identical.   
49. [The representative of Tonga confirmed that upon Tonga’s accession to the WTO, any tariff 
quotas and tariff exemptions would only be implemented in confor mity with the relevant WTO 
provisions including Article I of the GATT 1994 and the TRIMs Agreement.  The Working Party took 
note of this commitment.] 
Fees and charges for services rendered  
50. Some Members reminded Tonga that GATT Article VIII provided that all fees and charges be 
limited to the approximate cost of the services rende red, and not to constitute  an additional fiscal tax 
on imports.  As Tonga's 20 per cent Port and Servi ces Tax and wharfage dues, based on length and/or 
internal space, did not appear directly related to th e cost of any particular customs service, Tonga was 
urged to bring its fee structure into conform ity with the requirements of GATT Article VIII. 
51. The representative of Tonga acknowledged that the Port and Services Tax and the wharfage 
dues were fiscal charges, and as such would be d ealt with as "Other Duties and Charges" within the 
meaning of GATT Article II (see section above).  His Government would cons ider the establishment 
of a system whereby the users paid for the trade-re lated services rendered by  public institutions.  He 
added that the Ports Authority collected berthage  fees on all overseas vessels including general cargo 
vessels, fishing boats, gas carriers, tankers, squash  pumpkin vessels etc.  These charges, which in his 
view were of purely commercial na ture, covered the use of berth a nd all associated fixtures, facilities 
and services.  He also provided detailed inform ation on quarantine fees paid by exporters of 
agricultural products, which is reproduced in Table 3.  WT/ACC/SPEC/TON/4 
 Page 13 
 
 
52. [The representative of Tonga confirmed that a ll fees and charges imposed by Tonga on or in 
connection with importation or exportation would be  operated in conformity  with the relevant 
provisions of the WTO Agreement, in particular Ar ticles VIII and X of GATT 1994.  From the date of 
accession, Tonga would not apply, introduce or re introduce any fees and charges for services rendered 
that were applied to imports on an ad valorem basi s.  Information regarding the application and level 
of such fees and charges, revenues collected and their use, would be provided to WTO Members on 
request.  The Working Party to ok note of these commitments.] 
Application of internal taxes  
53. The representative of Tonga said that imported and domestically-produced beer (HS number 
2203.0010) was subject to an excise tax of TOP0. 83 per litre or 55 per cent ad valorem, whichever 
was higher.  Beer was, for the time being, the only product on which excise duty was levied.   
54. [The representative of Tonga stated that upon accession to the WTO, Tonga would apply its 
internal taxes on tobacco, alcoholic beverages and beer in conformity with GATT obligations, in 
particular Article III, 1 and 2 and negotiate on the level of its import duties on these products.] 
55. Value added tax (VAT) had not been introduced in Tonga, but a sales tax of 5 per cent was 
levied on most goods and services.  Exempt from sales tax were goods and services sold to the 
reigning Sovereign or to the Government;  goods sold among vendors or businesses for the purpose of 
further retailing, manufacturing or processing before being sold to the public;  local agriculture, livestock and fisheries products sold at local markets and farm gates by indivi dual sellers;  goods sold 
by street vendors such as handicrafts, woodcarvings, clothing and peanuts;  tickets for international 
travel sold to patients upon approval and certifica tion by the Minister of Health;  building materials 
used in residential construction (exemption certificat e to be issued by the Minister);  and goods 
destined for exportation.   
56. Some Members noted that Tonga's sales tax ex emption on local agriculture, livestock and 
fisheries products, and goods sold among vendors and businesses, involved elements that might 
discriminate against imports.  Tonga was invited to provide further clarification on how these 
exemptions would not conflict with the pr ovisions of Article III of the GATT 1994.   
57. The representative of Tonga replied that the sales tax exemption on local agriculture, 
livestock and fisheries products applied only to very  small individual producers.  Domestic products 
sold by large local firms were subjected to sales tax.  Small producers had been exempted due to 
difficulties in tax collection and the disproportiona te costs involved in collecting relatively small 
amounts of sales tax.  In this respect, Tonga's practice did not differ from that of many Members of WT/ACC/SPEC/TON/4 
Page 14  
 
the WTO.  As to goods sold among vendors and bus inesses, imported goods required registration with 
the Inland Revenue Department to qualify for the sal es tax exemption.  However, he did not consider 
this requirement an obstacle to trade as the onl y purpose of the registration procedure was to 
administer the collection of revenue.   
58. [The representative of Tonga confirmed that fro m the date of accession Tonga would apply its 
domestic taxes in full compliance with the relevant  provisions of the WTO, including Articles I and 
III of the GATT 1994, in a non-discriminatory manner to imports from all WTO Members and to 
domestically-produced goods.  The Working Party took note of this commitment.] 
Quantitative import restrictions, includin g prohibitions, quotas and licensing systems
 
59. The representative of Tonga said that Tonga  prohibited imports of certain items, and 
importation of some goods was restricted and required  a special licence.  The items affected by these 
provisions are enumerated in Tables 4(a) and 4(b) , respectively.  He added that Tonga had not 
established specific import quotas for any product, and had no plans to introduce such quotas.   
60. Some Members requested more information on the rationale behind the import prohibition on 
fireworks, Tonga's definition of indecent articles a nd seditious matter, the justification for the current 
restrictions on imported motor vehicles, brandy, wh isky and rum, eggs, and cabin and ships biscuits, 
and any plans to modify or remove these import restrictions.   
61. The representative of Tonga replied that the Minister of Police could authorize importation of 
fireworks.  Tonga did not manufacture its own firewo rks.  Indecent articles and seditious matter were 
defined in accordance with the usual discretionary definition.  Motor vehicles had been included on 
the "restricted list" to monitor imports for road safety reasons, and licences were issued freely by the 
Minister of Finance and the Minister of Police unless a vehicle was deemed unsafe.  Importation of eggs was monitored and restricted for the protection of local poultry farms.  Tonga restricted imports 
of spirits for health reasons:  He added that Tonga  was ready to remove its licensing requirements for 
eggs, cabin and ships biscuits, brandy, whisky, and rum from the date of its accession to the WTO.   
62. The representative of Tonga added that any pers on or firm wishing to import goods into 
Tonga needed an import licence, covering each i ndividual consignment.  Mixed consignments 
required separate licences.  The li cences were issued by the Licensing Unit at the Ministry of Labour, 
Commerce and Industries according to the Licenses Act,  Cap. 47.  Except for the restrictions noted 
above, the licensing system was liberal, and procedures were simple and straightforward.  Incomplete 
applications, or failure to abide by established proce dures, might lead to rejection of an application:   WT/ACC/SPEC/TON/4 
 Page 15 
 
 
However, applications could be re-submitted and refusals could be appealed to the Minister for 
Labour, Commerce and Industries, or referred to the court system.   
63. Licences were not transferable among importers, but  carried indefinite validity and no penalty 
applied to unused licences.  The system had been  revised to eliminate discriminatory treatment of 
foreigners, and import licences were now granted au tomatically to Tongans and non-Tongans alike.  
A Trading Licence Screening Committee, which had been considering each application lodged by 
non-Tongans, had been abolished.  Although the licensing system facilitated the monitoring of 
imports and the collection of statistics, he acknowle dged that its principal purpose was to generate 
revenue for his Government.  In 1999, import licences had raised more than TOP200,000 (about 
US$140,000).  The licensing fees, differentiated by type  of product, are enumerated in Table 5.   
64. Some Members reminded Tonga that Article 1:2 of the Agreement on Import Licensing 
Procedures stated that licensing procedures shoul d be administered in conformity with GATT 
provisions.  Article VIII of the GATT 1994 provided for all non-tariff import fees and charges to be 
limited in amount to the approximate cost of th e services rendered, and not to constitute a tax on 
imports or exports.  Moreover, the Agreemen t on Import Licensing Procedures required licensing 
systems to be operated in a transparent, predictabl e, fair and equitable manner, and it was noted that 
the private sector had expressed dissatisfaction with  Tonga's system of import (and export) licensing.  
Tonga was consequently urged to bring its licensing arrangements into conformity with the WTO.   
65. The representative of Tonga replied that his G overnment was reviewing the issues raised.  
Taking into account of the views of WTO Members, hi s Government would be prepared to abolish the 
current procedures, thereby removing the import licensing fees as from the date of Tonga's accession to the WTO.   
66. [The representative of Tonga confirmed that, from the date of accession, Tonga would not 
introduce, re-introduce or apply quantitative restrict ions on imports, or other non-tariff measures such 
as licensing, quotas, prohibitions, bans and other restri ctions having equivalent effect that cannot be 
justified under the provisions of the WTO Agreemen t.  The legal authority of the Government of 
Tonga to restrict or prohibit importation of goods  into Tonga would be applied from the date of 
accession in conformity with the relevant requirements of the WTO, in particular Articles XI, XII, 
XIII, XVIII, XIX, XX, and XXI of the GATT 1994, and the Agreements  on Agriculture, the 
Application of Sanitary and Phytosanitary Measure s, Import Licensing Procedures, Safeguards, and 
Technical Barriers to Trade.  The Worki ng Party took note of these commitments.] WT/ACC/SPEC/TON/4 
Page 16  
 
Customs valuation
 
67. The representative of Tonga said that Tonga was using the Brussels Definition of Value 
(BDV) system for the purposes of customs valuation.  The present system, set out in the Customs and 
Excise Act, was not based on transaction value as experience had shown that invoices presented to customs in Tonga in some cases did not reflect the price actually paid or payable.  Tonga recognised 
that its present valuation rules did not conform to  WTO requirements, and planned to introduce a new 
WTO-compatible system as rapidly as possible.  However, given the length of time needed to 
implement the new customs valuation rules, his Government would request a transitional period 
permitting it to complete this process after Tonga's accession to the WTO.   
68. In order to assist Tonga in evaluating the key areas where additional legislation and 
institutions might be necessary, a Member remind ed Tonga that transaction value as defined in 
Article 1 of the Agreement on the Implementation of  Article VII of the GATT 1994 was the preferred 
method of appraisement, followed by the transacti on value of identical merchandise, the transaction 
value of similar merchandise, the deductive value, co mputed value, and finally the fallback method.  
Article 7 of the Agreement prohibited appraisals based on (i) the selling price in the country of 
importation;  (ii) a system providing for the acceptance for customs purposes of the higher of two 
alternative values;  (iii) the price of goods on the do mestic market of the country of exportation;  (iv) 
the cost of production other than computed values having been determined for identical or similar 
goods;  (v) the price of goods for export to a country  other than the country of importation;  (vi) 
minimum customs values;  or (vii) arbitrary or fic titious values.  Tonga's legi slation would also have 
to provide adequate protection for the treatment of confidential information in accordance with 
Article 10 of the Agreement;  transparency provis ions ensuring the publication of laws, regulations, 
judicial decisions and administrative rulings rega rding the valuation of merchandise (Article 12);  
provisions granting importers the right to a written explanation of how judicial and administrative 
valuation decisions had been dete rmined (Articles 11.3 and 16);   and bonded entry of merchandise 
allowing importers to withdraw goods against suff icient surety or deposit to cover the ultimate 
payment of customs duties when the final determ ination of the customs value was being delayed 
(Article 13). 
69. The representative of Tonga replied that Tonga had decided to introduce a new system of 
customs valuation rather than trying to convert its  present system.  He did not expect major problems 
for Tonga to implement Article 1 of the WTO Cu stoms Valuation Agreement (transaction value) 
correctly, provided that WTO Members would make available the necessary technical assistance.  All 
other concerns raised by the Members would be addressed in new legislation, and Tonga would 
provide a copy of the proposed Bill once complete d.  He proposed that Tonga would complete the  WT/ACC/SPEC/TON/4 
 Page 17 
 
 
work to conform with the requirements of the Agre ement on the Implementation of Article VII of the 
GATT 1994 in accordance with the action plan reproduced in Table 6. 
Table 6:  Legislative action plan regarding customs valuation  
Action Target date from receipt of  
adequate technical assistance 
Parliamentary consideration and passage of 
legislation for WTO-consistent valuation rules.  One year 
Establishment of implementing regulations. 
 Two years 
Recruitment of personnel, obtaining facilities and 
equipment. Establishment of databases. Two and a half years 
Development of manuals and operating procedures. Two and a half years 
Training of at least 15 of ficials, customs officers and 
private sector people. Three years 
Implementation of legislation Three year s after receipt of adequate technical 
assistance or date of accession, whichever is later. 
Note : The length of the tran sitional period will be agreed during the negotiations for accession, when the 
availability of adequate technical assistance is clarified.  
 
70. [The representative of Tonga confirmed that  Tonga would apply fully the WTO provisions 
concerning customs valuation as from [an agreed date],  including the Agreement on the 
Implementation of Article VII of the GATT 1994.  The Working Party took note of this commitment.] 
Rules of origin  
71. The representative of Tonga said that importe rs were required to provide a combined 
certificate and invoice for imported goods, including de tails regarding the country of origin.  Other 
than this requirement, Tonga applied no specific rules of origin. 
72. A Member stated that Tonga should implemen t the Agreement on Rules of Origin - under 
which Tonga would have certain obligations includ ing in regard to the transparency of laws, 
regulations and practices regarding rules of origin - from the date of accession.  Tonga should abide 
by the transitional disciplines of Article 2 of th e Agreement from the date of accession, and upon 
completion of the international work programme for the harmonisation of rules of origin, Article 3 of 
the Agreement would also apply to Tonga. 
73. [The representative of Tonga confirmed that, from the date of accession, Tonga’s preferential 
and non-preferential rules of origin would comply fully with the WTO Agreement on Rules of Origin, 
including the provisions of Article 2(h) and Annex II , paragraph 3(d) of the Agreement, i.e., that for 
non-preferential and preferential rules of origin, respectively, the customs authority will accept WT/ACC/SPEC/TON/4 
Page 18  
 
requests from an exporter, importer or any person w ith a justifiable cause for an assessment of the 
origin of the import.  The Working Party took note of this commitment.] 
Preshipment inspection
 
74. The representative of Tonga said that that Tonga's legislation had no provision for pre-
shipment inspection. 
Anti-dumping, countervailing duties, safeguard regimes  
75. The representative of Tonga said that Tonga had no specific legislation providing for the 
imposition of anti-dumping, countervailing duty, or safeguard measures, and that Tonga had no plans 
to introduce such legislation. 
76. [The representative of Tonga confirmed th at Tonga would not apply any anti-dumping, 
countervailing or safeguard measures until it had impl emented appropriate laws  in conformity with 
the provisions of the WTO Agreements on these matters.    Tonga would ensure the full conformity of 
any such legislation with the relevant WTO provisions, including Article VI and XIX of the 
GATT 1994 and the Agreement on the Implementation of  Article VI, the Agreement on Subsidies and 
Countervailing Measures and the Agreement on Safeguard s.  After such legislation was implemented, 
Tonga would only apply any anti-dumping duties, countervailing duties and safeguard measures in 
full conformity with the relevant WTO provisi ons.  The Working Party took note of these 
commitments.] 
2. Export regulation  
Customs tariffs, fees and charges for services rende red, application of internal taxes to exports  
77. The representative of Tonga said that the require ments applicable to exportation were broadly 
similar to those affecting imports.  Thus, a pr ospective exporter in possession of a valid business 
licence should proceed to obtain an export licence fo r each consignment to be sold abroad.  Export 
licences were issued by the Ministry of Labour, Commerce and Industries against payment of fee, 
differentiated according to the product exported.  The fees applicable for export licences are listed in 
Table 7.  Tonga did not levy export duty on any item.   
78. Some Members noted that GATT Article VIII al so covered export fees and charges, which 
accordingly should be limited to the approximate cost of the services rendered.  Tonga was 
encouraged to bring its export licensing fee struct ure into conformity with the requirements of GATT 
Article VIII.    WT/ACC/SPEC/TON/4 
 Page 19 
 
 
79. The representative of Tonga replied that his Government was reviewing the export licensing 
fee structure in the light of the views of WTO Members.  
Export restrictions  
80. The representative of Tonga said that Tonga prohi bited exportation of raw coral and specified 
Tongan cultural articles.  Certain other items were r estricted and needed speci al authorization to be 
exported.  Approval from the Director of Health was required for exportation of medical biological 
and organic products;  chemicals;  drugs including narcotic and barbiturat es;  poisons;  and second-
hand clothing.  The Director of Agriculture authori zed exports of veterinary biological and organic 
products;  animals, birds, fish and reptiles;  insects and gastropods;  plants and fungi;  seeds;  and trees 
and timber.  No quantitative restrictions applie d to exports from Tonga, but - as noted above – a 
general export licensing procedure, applied on a consignment basis, was being enforced for revenue 
purposes. 
81. Asked to explain the export restrictions on agricu ltural products, he added that exports of rare 
and indigenous species (plants and animals) were restricted for environmental reasons.  Size and 
maturity, as well as requirements established in the country of importation, were determining factors 
in the exportation of some agricultural products.  Tonga subjected medical, biological and organic 
products to quarantine to prevent the spread of diseases, and narcotics-related drugs and chemicals 
were restricted.  He cited health reasons to jus tify Tonga's export restriction on second-hand clothing.  
He confirmed that the application and approva l procedures were identical for Tongans and non-
Tongans. 
Export subsidies  
82. The representative of Tonga said that TongaTrad e had been established as a "search engine" 
for local producers exploring new potential ma rkets overseas. TongaTrade identified the markets 
through research and gap analysis, assisted and f acilitated the development of exporters' marketing 
skills, and facilitated the developmen t and implementation of market management plans for groups of 
products.   
83. Export financing was available from the normal commercial banking system or through the 
Tonga Development Bank (TDB).  The TDB provi ded facilities including term loans - on purely 
commercial terms - for the production of commodities such  as squash, vanilla and root crops;  loans to 
cover costs such as freight, inputs (e.g. fertilizer and chemicals) and marketing;  as well as loans to 
companies purchasing export commodities, such as vanilla .  Together with the Ministry of Agriculture 
and Forestry, the TDB administered an export diversification fund whereby the TDB provided loans WT/ACC/SPEC/TON/4 
Page 20  
 
to companies or registered societies for all matters  pertaining to the export of produce.  The fund had 
assisted in the development of squash exports in th e early 1990s.  All credits extended under this fund, 
in all TOP1.05 million, had been fully repaid.  In addition, a Venture Capital Fund had been 
established to provide equity capital support for the development of viable private sector projects.  
Capital was only provided to successful companies wi shing to expand their activities.  The facility 
was available to any type of business and not calcula ted in relation to exports, but priority was given 
to projects promoting exports or import substituti on, foreign exchange earnings, the creation of 
employment, training opportunities and the intr oduction of new skills.  The maximum amount 
invested in a single project was TOP50,000 (about US$35,000).  Only three projects had been financed over a period of three years.   
84. The Tonga Reserve Bank had established an export guarantee scheme to guarantee loans from 
overseas sources.  However, this scheme had never b een used.  The Government of Tonga had, on an 
ad hoc basis, provided support to growers of s quash pumpkin against losses caused by drought and 
other natural disasters.  He stressed these measure s had never involved any export price or similar 
guarantee.   
85. The representative of Tonga added that Tonga  benefitted from a number of export market 
development programmes and schem es administered elsewhere.  The Forum Secretariat’s export 
market development programme financed marketi ng missions to Australia, New Zealand and Japan 
for companies in Tonga with export potential.  Th e programme was offered through the offices of the 
South Pacific Trade Commission in Sydney (Australia), Auckland (New Zealand) and Tokyo (Japan).  
These offices also financed trade fairs and exhibitio ns to promote products from the Pacific Islands.  
The Forum Secretariat supported private sector deve lopment in Pacific Island Countries, and operated 
a marketing support fund directed towards export-orie nted industries.  In addition, the Commonwealth 
Secretariat had funded participation by Tongan comp anies in trade fairs and exhibitions and provided 
technical assistance to export-oriented industries in  Tonga.  The ACP-EU Centre for Development of 
Industry financed marketing studies and capital fo r joint ventures between European Communities' 
and Tongan enterprises, especially those with an  export orientation, and the European Commission, 
through the European Development Fund, had funded market studies for export-oriented industries in 
Tonga and assisted in the production of  promotion and marketing material. 
86. Tonga operated an import duty drawback scheme whereby drawback could be claimed by a 
holder of a Development Licence in respect of importe d semi-finished products and/or raw materials, 
including packaging materials used in the processing, manufacturing or assembly of products if a determination had been made that the finished g oods were primarily for ex port.  In addition, the  WT/ACC/SPEC/TON/4 
 Page 21 
 
 
Industrial Development Incentives Act encouraged  export oriented manufacturing by providing 
certain duty exemptions for products impor ted by these type of industries.   
3. Internal policies affecting foreign trade in goods  
Industrial policy, including subsidies  
87. The representative of Tonga said that the Industrial Development Incentives Act, 1978 
reflected the industrial development policies of hi s Government.  Tonga's strategies and policies for 
the manufacturing sector included encouraging privat e sector development to enable the government 
to withdraw from direct involvement in manufactur ing and marketing;  improved efficiency through 
skills training;  promotion of export-oriented ma nufacturing;  development of traditional and non-
traditional agricultural products ha ving potential for added value th rough processing, notably cassava, 
kava, vanilla and pumpkins;  and the establishment of TongaTrade as a centralised agricultural and 
commodity export promotion wing of the Ministry of Labour, Commerce and Industries.   
88. Some Members stated that some of the benef its granted to holders of Development Licences 
issued in accordance with the Industrial Develo pment Incentives Act such as exemption from income 
tax for up to five years;  exemption from withholding tax for the same period;  accelerated 
depreciation of assets, customs duties exemptions on imported goods;  and a 50 per cent exemption 
from the Port and Services Tax would - to the extent  that these benefits were made contingent on 
export performance or import substitu tion in law or in fact - appear to violate the WTO Agreement on 
Subsidies and Countervailing Measures.  Tonga was thus urged to amend the Industrial Development 
Incentives Act.   
89. The representative of Tonga replied that no im port duty or tax exemption had been granted on 
the basis of export performance or import substi tution.  However, the Industrial Development 
Incentives Act would be replaced by new legislation to be applied from the date of Tonga’s accession 
to the WTO.   
Technical barriers to trade, sanitary and phytosanitary measures  
(a) Standards and certification  
90. Some Members stated that Tonga would need  to implement fully the WTO Agreement on 
Technical Barriers to Trade as of the date of WTO accession, and requested detailed information on 
Tonga's standards and inspection regime, includ ing participation in international standards 
organizations such as the Codex Alimentarius Commission or the Organization of International 
Epizootics, procedures for incorporation of interna tional standards into Tonga's standards regime, any WT/ACC/SPEC/TON/4 
Page 22  
 
deficiencies in the present regime, and the steps T onga would be taking to remedy these deficiencies 
prior to WTO accession.  Tonga was reminded that  the WTO TBT Agreement did not require Tonga 
to implement standards in any area, but any sta ndards and conformity assessment systems introduced 
in the future would need to be c onsistent with WTO requirements.   
91. The representative of Tonga said that Tonga had no specific Standardization Act or technical 
regulations in place.  The Public Health Act 1992, which empowered the Minister for Health to make 
regulations in relation to food standards, had so fa r not been used for this purpose.  Thus, Tonga had 
not adopted any technical regulations, standards or conformity assessment procedures to date, and had 
no plans to do so.  Foreign goods entering Tonga we re accordingly not subject to any particular 
standards-related procedures or re quirements.  As to the establishment of a TBT Enquiry Point, the 
WTO Desk at the Ministry of Labour, Commerce and Industries would serve this function. 
92. [The representative of Tonga stated that Tonga  would ensure that no technical regulations, 
standards and conformity assessment procedur es are adopted or implemented until Tonga has 
implemented appropriate laws en suring conformity with the provisions of the Agreement on 
Technical Barriers to Trade.  Tonga would ensure th e full conformity of any such legislation with the 
Agreement on Technical Barriers to Trade.  The Working Party took note of these commitments.] 
(b) Sanitary and phytosanitary measures
 
93. The representative of Tonga said that the Quaran tine Division of the Ministry of Agriculture 
and Forestry and the Ministry of Health was re sponsible for Tonga's sanitary and phytosanitary 
measures relating to foreign trade in animals, pl ants and related products.  The principal pieces of 
SPS-related legislation were the Plant Quarantine Act (Cap 127) 1988 together with the Amendments 
to that Act and its associated Regulations 1995 a nd Fee Regulations 1997;  the Animal Diseases Act 
(Cap 146) 1978;  and the Public Health Act 1992 an d the Amendments to that Act.  The Quarantine 
Act Cap. 77, gave the Director of Health powers to  impose quarantine restrictions for the protection of 
public health.  Imports regulations  required a code of conduct for im ports and the release of imported 
goods, including initiation of pest risk analysis or pest risk assessment.  He confirmed that Tonga had 
the capability of doing its own risk assessments.  Tonga 's legislation did not refer specifically to 
scientific evidence, but regulations were, in fact, based on this principle.  Tonga had no measures 
establishing tolerances for the use of  additives or contaminants.   
94. Asked to what extent Tonga's standards aligne d with relevant international standards, the 
representative of Tonga added that Tonga based its  SPS measures on international standards to the 
extent possible.  Tonga was a member of the OIE (International Office for Animal Diseases), the 
International Plant Protection Convention (IPPC) an d the Codex Alimentarius Commission, and also  WT/ACC/SPEC/TON/4 
 Page 23 
 
 
received assistance from regional organisations, in particular the Secretariat of the Pacific Plant 
Protection Organisation (PPPO) and, on the animal side, the Secretariat of the Pacific Community.  
The Plant Quarantine Act and its Amendments were a ligned with international standards such as those 
of the FAO (Food Agriculture Organisation) and the IPPC.  The Pacific Plant Protection Organisation operated actively to set standards fitting to Pacific requirements.  Such standards were submitted to 
the member countries (Forum Island Countries incl uding New Zealand and Australia) for funding and 
implementation.  In addition, the PPPO reviewed an d drafted standards regulations of any member.  
The PPPO met every three years, and Tonga repr esented the Polynesian Is land Countries in the 
executive committee.  Tonga used F AO and OIE standards as a basis for its own standards relating to 
animals and animal products.  Regarding the princi ple of equivalence, Tonga recognized different 
measures achieving the same level of protection, and based its regulations in this respect on those of 
Australia and New Zealand.  Importation was onl y prohibited when necessary to protect human, 
animal or plant life and health.  A list of products prohibited in accordance with the Plant Quarantine Act and in the Animal Diseases Act is reproduced in Table 8.   
95. Some Members requested more detailed informati on and specific legislative references to be 
able to evaluate Tonga’s SPS re gime and its consistenc y with the WTO Agreement on the Application 
of Sanitary and Phytosanitary Measures.  For releva nt legislation or administrative procedures not yet 
in place, Tonga was asked to indicate when these laws  or procedures would be developed.  A Member 
noted that Tonga's regime did not appear to be consistent with the SPS Agreement on the issue of 
transparency.  Tonga would need to have notificatio n procedures in place so that its trading partners 
could be made aware of changes in Tonga's quarantine measures, for example, quarantine 
arrangements against foot and mouth disease.   
96. In reply, the representative of Tonga noted that three new Acts had been passed by the 
Legislative Assembly in 2002, namely the Anim al Diseases Bill (Amendment) Act, the Agricultural 
Commodities Export Act, and the Pesticides Act (2002).  FAO and South Pacific Commission 
consultants had assisted in the drafting of this legislation, which should be in conformity with 
international requirements.  Tonga did not yet have legislation making observation of the SPS 
Agreement mandatory.  Such legislation, together  with regulations containing the administrative 
procedures necessary to administer the SPS Agreement,  would come into force as from the date of 
Tonga’s accession to WTO.  The regulations would specify, for instance, the enquiry point, the 
authority responsible for making notifications to  the WTO, the publication to be used for the 
publication of proposed measures, the procedure to  be used for taking comments into account, the 
Government body responsible for de veloping regulations, conducting ri sk assessments and control, as 
well as inspection and approval procedures.   WT/ACC/SPEC/TON/4 
Page 24  
 
97. Tonga did not yet have the technical infrastructure in place required to implement the SPS 
Agreement, including an operational SPS Enquiry Poin t.  However, Tonga was ready to respond to all 
reasonable questions regarding its sanitary and phyt osanitary measures, which should be addressed to 
the Director of Agriculture at the Ministry of Agriculture and Forestry.  The Ministry was seeking 
financial assistance for the development of an SPS information web site, and would welcome any 
funding provided by WTO Members as part of th eir capacity building assistance to developing 
countries.   
98. Concerning quarantine measures against food and mouth disease, Tonga had taken 
precautionary measures by not allowing importation of animals or animal product from foot and mouth disease infected countries and regions.  Tonga watched high risk vessels coming from infected countries, and screened air passengers arriving from infected destinations.  He stressed that 
importation of the items listed in Table 8 was not prohibited per se , but that the pest risk analysis 
system used by Tonga required those applying for import permits to provide technical and biological 
data to the Ministry of Agriculture and Forestry indicating that the species were free of the regulated 
quarantine pest concern or, if an effective treatme nt was available, import permits would be issued 
with additional quarantine requirements.   
99. [The representative of Tonga confirmed th at Tonga would apply the Agreement on the 
Application of Sanitary and Phytosanitary Measu res from the date of accession without recourse to 
any transition period.  The Working Pa rty took note of this commitment.] 
Trade-Related Investment Measures (TRIMs)
 
100. The representative of Tonga said that, other than the measures set out in the Industrial 
Development Incentives Act (1978) in relation to  the Development Licence programme, Tonga had 
no specific measures related to investment in trad e-related businesses.  These measures were, in his 
view, not inconsistent with the WTO Agreement on Trade-Related Investment Measures, and Tonga 
therefore did not intend to notify any measures under the Agreement.   
101. Having reviewed the Industrial Development Incen tives Act, some Members considered that 
the Act referred to import substitution, export pe rformance or local content criteria which would 
constitute trade-related investment measures.  It was noted that, even though these provisions did not 
appear to be applied in practice, the possibility to deny or revoke an industry's licence if export 
requirements were not met qualified as a TRIM.  Members sought a commitment that the Industrial 
Development Incentives Act would be amended, and th at the revised Act and associated practices and 
decision-making procedures would be consistent w ith the WTO, including the TRIMs Agreement.  WT/ACC/SPEC/TON/4 
 Page 25 
 
 
102. The representative of Tonga replied that the Industrial Development Incentives Act would be 
repealed and replaced by the Foreign Investment Act.   
103. [The representative of Tonga said that Tonga would not maintain any measures inconsistent 
with the TRIMs Agreement and would apply th e TRIMs Agreement from the date of accession 
without recourse to any transition period.  The Wo rking Party took note of this commitment.]   
State trading entities  
104. Noting that the Government of Tonga had a st ake in 26 enterprises, some Members requested 
Tonga to provide information on any state tradi ng enterprises operating under exclusive or special 
privileges in relation to imports or exports.  Speci fic questions were raised concerning the activities of 
Tonga Investments Ltd., Frisco, Primary Produce Limited, Royal Beer Co. Ltd., Leiloa Duty Free Shops (Tonga) Ltd., Sea Star Fishing Co. Ltd, Tonga Timber Ltd., and the Government Supplies 
Department.   
105. The representative of Tonga replied that, in his view, Tonga maintained no State-trading 
enterprises as defined by GATT Article XVII a nd the Understanding on the Interpretation of 
Article XVII of the GATT 1994.  Tonga Investment s Ltd. was a holding company established in 1971 
to manage businesses carried out by its subsidiaries - Frisco Hardware Ltd., Homegas Ltd. and 
Primary Produce Export Ltd.  Frisco sold hardwa re and construction materials - mostly imported 
goods - in competition with private enterprises.  Primary Produce Limited was essentially a shell 
company established to collect debts, and would be wound up as soon as possible.  His Government 
no longer owned shares in Royal Beer Co. or any ot her manufacturing facility in Tonga.  Leiola Duty 
Free Shops, Sea Star Fishing Co., and Tonga Timber Lt d. competed with privately-owned firms.  The 
Government Supplies Department, which had been purchasing goods for resale, had been ceased operations on 30 June 1999.   
106. [The representative of Tonga confirmed that Tonga would apply its laws and regulations 
governing the trading activities of State-owned en terprises and other enterprises with special or 
exclusive privileges and would act in full conformity  with the provisions of the WTO Agreement, in 
particular Article XVII of the GATT 1994 and the U nderstanding on that Article  and Article VIII of 
the GATS.  Tonga would notify any enterprise falling within the scope of Article XVII.  The Working 
Party took note of these commitments.]   WT/ACC/SPEC/TON/4 
Page 26  
 
Free zones, special economic areas
 
107. The representative of Tonga said that Tonga had no designated free zones or free economic 
zones.   
Government procurement  
108. The representative of Tonga said that no specifi c procedures applied to goods and services 
purchased within Tonga.  He confirmed that local  suppliers did not benefit from any preferential 
margin in government procurement.  His govern ment had appointed agents in Australia and 
New Zealand to handle procurement of goods and services to be obtained outside Tonga. 
109. Procurement of supplies was organized through public tender, open to all local and overseas 
suppliers.  All bids were evaluated at the closi ng date of the Tender, and the lowest-price bidder 
would be awarded the contract or order.  A speci fic form ("Overseas Requisition") would be prepared 
for winning bids from overseas.  The form was endorsed by Treasury and approved by the Prime 
Minister before being sent to the Government Agen t in the country concerned.  The Overseas Agent 
would place the order with the supplier, arrange tran sportation, verify specification expedites etc., pay 
the supplier and bill the Government of Tonga.  
110. Asked whether Tonga intended to initiate negotiations for accession to the Agreement on 
Government Procurement, the representative of Tonga  noted that this plurilateral agreement had not 
been drawn up with the situation of very small deve loping countries, such as Tonga, in mind.  Few, if 
any, Tongan government contracts would be covere d due to the value thresholds applied under the 
Agreement.  Moreover, large contracts were of ten implemented in the context of economic aid 
programmes, which would be cove red by the procurement rules of the organisations concerned. 
Trade in Civil Aircraft  
111. A member noted that Tonga exempted ground equipment and technical supplies required for 
use at airports in connection with air services from customs duty, and asked whether Tonga would 
consider binding its customs duties and other revenue charges on civil ai rcraft and parts at zero in its 
Schedule of Concessions and Commitments on Goods.   
112. The representative of Tonga confirmed that ground equipment and technical supplies for use 
at airports in connection with air services were ex empt from customs duties.  He added, however, that 
such goods were not exempt from Port and Services Tax.  In the market access negotiations, Tonga 
had already offered to bind its "Other Duties and Charges" at zero, while the bound rate of duty on 
civil aircraft and parts remained to be determined.    WT/ACC/SPEC/TON/4 
 Page 27 
 
 
Agricultural policies  
113. The representative of Tonga said that the polic ies of his Government regarding trade in 
agricultural products did not differ significantly from  those applicable to trade in general.  The 
establishment of TongaTrade and the facilities offe red by the Tonga Development Bank were aimed 
at encouraging the development and diversificati on of agricultural and commodity exports.  He 
stressed that Tonga had not introduced any price support or export subsidy measures.  He confirmed 
that expenditures for infrastructural  facilities required for th e facilitation of export were limited to the 
provision or construction of capital works only, and di d not constitute subsidies to inputs or operating 
costs.  The fees paid by exporters for these types of facilities were commensurate to the costs of the 
services rendered.   
114. The policies of his Government were geared  towards diversifying the agricultural sector 
through strengthening and developing infrastructural  and support mechanisms such as the introduction 
of new crop varieties, market development, new quarantine and new me thods of treatment for 
produce, and to provide continuous assistance to farmers.   
115. The representative of Tonga provided informa tion on domestic support and export subsidies 
in agriculture for the period 1996/97 to 1998/99 in document WT/ACC/SPEC/TON/3 and Revision 1.  
He noted that all support recorded during this pe riod qualified as "Green Box" measures exempt from 
the reduction commitment.  His Government provide d a number of general service measures, mainly 
through the Ministry of Agriculture and Forestry, in part financed by donor countries and agencies.  
The figures provided in the supporting tables incl uded external assistance provided through the 
government system.   
Trade-Related Intellectual Property Rights (TRIPS)  
1. General  
116. The representative of Tonga provided information on the implementation of the WTO 
Agreement on Trade-Related Aspects of Intell ectual Property Rights (TRIPS) in document 
WT/ACC/TON/6.  The main pieces of legislation re gulating intellectual property in Tonga were the 
Industrial Property Act 1994, the Protection of Ge ographical Indications Act 2001, the Protection of 
Layout-Designs (Topographies) of Integrated Ci rcuit Act 2001, the Copyright Act 2002, and the 
Protection of Unfair Competition Act 2002.  Respons ibility for all matters related to intellectual 
property rested with the Ministry of Labour, Comme rce and Industries.  Tonga had become member 
of the World Intellectual Property Organisation on 14 June 2001, and had been a party to the Paris WT/ACC/SPEC/TON/4 
Page 28  
 
Convention for the Protection of Industrial Propert y and the Berne Convention for the Protection of 
Literary and Artistic Works as of the same date.   
117. The representative of Tonga acknowledged that fu rther work would be needed to implement 
new legislation.  He accordingly requested that  Tonga be granted a transitional period permitting 
Tonga to complete this process after its accession to the WTO.  An action plan to achieve WTO 
conformity, proposed by Tonga, is reproduced in Table 9.  He stressed that th e timeframe indicated in 
Table 9 relied upon the provision of technical assistance by WTO Members.   
Table 9:  Action Plan covering Trade-Related Aspects of Intellectual Property Rights (TRIPS)
 
Action Target date from receipt of  
adequate technical assistance 
Parliamentary passage of TRIPS-consistent 
legislation on copyright and related rights, patents, 
trademarks, industrial designs, geographical 
indications, layout designs of integrated circuits, and 
protection of undisclosed information (trade secrets) Done 
Establishment of Intellectual Property (IP) Office. Done 
Establishment of implementing regulations. 
 One year  
Obtaining facilities and equipment. One year 
Development of manuals and operating procedures. One and a half years 
Training of at least 15 o fficials, customs officers and 
private sector people as well as educators in TRIPS 
issues. Two years  
Readiness to participate in regional and international 
IP administrative cooperation (Forum Island countries, PCT, Madrid Protocol, etc.). Two years 
Implementation Two years after r eceipt of adequate technical 
assistance or date of accession, whichever is later. 
 
2. Substantive standards of protection, includi ng procedures for the acquisition and maintenance 
of intellectual property rights  
(a) Copyright protection  
118. The representative of Tonga said that the Copy right Act No. 20 of 1985, revised in 1987 and 
1988, had provided some protection to literary and dramatic works.   However, the Act was not 
entirely compliant with the TRIPS Agreement, and its entry into force had been delayed due to lack of 
implementing copyright regulations.  The Act requi red revision to provide protection for computer 
programmes as literary works under the Berne Conven tion 1971;  databases by copyright;  rental 
rights for owners of rights in films, sound r ecordings, phonograms and computer programmes;  
protection to broadcasting organization to control the use of the broadcast signals for a minimum of  WT/ACC/SPEC/TON/4 
 Page 29 
 
 
20 years;  and to protect performers from una uthorized recording and broadcasting of live 
performances.   
119. He added that Parliament had passed a new law - the Copyright Act - in 2002, thereby 
providing legislation on copyright and related rights in full conformity with the requirements of the 
TRIPS Agreement.   
(b) Trademarks, including service marks  
120. The representative of Tonga said that tradem arks were protected in accordance with the 
Industrial Property Act 1994, Part V and VI.  Prot ection for well known trademarks or service marks  
was provided for in Part V, Section 26 (2) (e) of the Act.  He noted that some  provisions of the TRIPS 
Agreement, notably Articles 15.4 (nature of the go ods and services), 17 (exceptions) and 20 (special 
requirements), had not been included in Tonga's existing legislation. 
(c) Geographical indications, including appellations of origin  
121. The representative of Tonga said that geogra phical indications were protected under the 
Protection of Geographical Indications Act 2001.  Th e Act, was in his view, in full compliance with 
the requirements of the TRIPS Agreement.   
(d) Industrial designs  
122. The representative of Tonga said that industr ial designs, including textile designs, were 
protected under the Industrial Property Act 1994 (Par t IV) and the Intellectual Property Regulations 
1998. 
(e) Patents  
123. The representative of Tonga said that the scope of patentability, the rights conferred by a 
patent and the criteria under which non-voluntary licences were granted, were laid down in the 
Industrial Property Act 1994 and in the Industrial Property Regulations  1998.  The Act had been in 
force since 1 February 2000. 
(f) Plant variety protection  
124. The representative of Tonga said that plant varieties were protected under the Industrial 
Property Act 1994 and the Industrial Property Regulations 1998.   WT/ACC/SPEC/TON/4 
Page 30  
 
(g) Layout designs of integrated circuits
 
125. The representative of Tonga said that layout designs  of integrated circuits were protected in 
accordance with the Protection of Layout-Designs (T opographies) of Integrated Circuit Act 2001.   
(h) Requirements on undisclosed information, including trade secrets and test data  
126. The representative of Tonga said that Tonga had no specific legislation addressing this 
subject-matter.  However, section 3 of the Tonga Ci vil Law Act stipulated that the Court should apply 
the common law of England and the rules of equity  where there was no applicable law in place in 
Tonga. 
3. Measures to control abuse of intellectual property rights  
127. The representative of Tonga said that measures to  control the abuse of intellectual property 
rights were included in the Protection of Unfair Competition Act 2002.   
4. Enforcement  
128. The representative of Tonga said that Tonga woul d need technical assistance to complete the 
necessary legislative changes, i.e.  the introduction of provisions addressing civil judicial procedures 
and remedies, provisional measures, administra tive procedures and remedies, special border 
measures, and criminal procedures, as well as to car ry out additional steps to implement and enforce 
the TRIPS Agreement, e.g. the training of pers onnel and the development of infrastructure.   
Policies affecting trade in services  
129. The representative of Tonga said that services account ed for more than 50 per cent of Tonga's 
GDP.  While the Ministry of Labour, Commerce  and Industry was responsible for formulating 
policies related to services sectors, there was no comprehensive policy and individual services sectors 
were regulated independently.  Overall, the regulat ory structure was very simple.  The Licensing Act, 
Cap 47, which covered most services, required servi ces providers to hold a licence obtained against 
payment of an annual fee (detailed information on the fee structure was provided in document 
WT/ACC/TON/3, pages 29-31).  Tonga's legisla tion contained no specific provisions regulating 
monopolies, safeguard measures, international paymen ts, or government procurement of services.  
Access for foreign services suppliers was subject to a 25 per cent local participation requirement in retail, construction, and tourism services needing no  special equipment and skills.  This restriction 
was implemented for economic development purposes.    WT/ACC/SPEC/TON/4 
 Page 31 
 
 
130. He added that Tonga applied fully the most-fa voured-nation principle to trade in services, 
including in the recognition of professional qualif ications.  He considered Tonga's laws and 
regulations on certification for foreign qualification in compliance with the provisions of the General 
Agreement on Trade in Services (GATS).  Tonga ha d no national qualification standards of its own, 
but applied those of other countries when necessary.  In the case of medical practitioners, the Director 
of Health applied the standards of Australia, Canada, New Zealand, th e United Kingdom, and the 
United States, in accordance with the Medical Regist ration Act, Cap 75.  Requests were dealt with 
case-by-case when recognition of foreign professional qualifications involved countries not explicitly 
mentioned in the relevant legislation.   
131. Legal services were regulated by the 1989 Law Practitioners Ac t.  The Act required any legal 
practitioner to be included in the Roll of Law Practit ioners held by the Supreme Court, to possess a 
practising certificate, and be a member of the T onga Law Society.  Membership in the Tonga Law 
Society required documented professional knowledge and experience in common law jurisdiction, 
minimum three character re ferences, and an expressed intent to  practice law in Tonga.  Appearance 
before Tonga's Supreme Court required a diploma in law from the University of South Pacific or at 
least a Bachelor’s degree in law from a recognised un iversity.  Foreign lawyers were subject to the 
same rules as domestic legal practitioners.  The re presentative of Tonga confirmed that foreign legal 
firms and lawyers were allowed to provide consulta tions on legislation other than that of their home 
state.   
132. Financial services were regulated by the 1991 Financial Institutions Act.  Licenses were 
delivered by the Ministry of Finance based on inquiries by the National Reserve Bank of Tonga, 
which supervised the activities of banks, and appr oval of the Privy Council.  The annual licence fee 
amounted to TOP3,000.  Financial services licenses were not subject to numerical or geographical 
limitations.  In 1998, three commercial banks we re operating in Tonga in addition to the Tonga 
Development Bank.  He confirmed that Tonga a llowed the establishment of new foreign commercial 
banks, merchant banks and other fi nancial services companies both in the form of wholly-owned 
subsidiaries or direct branches.  Tonga also pe rmitted the establishment of new foreign life and non-
life insurance companies, insurance brokers and agencies, and insurance underwriting and 
management companies servicing the domestic market.   
133. Tonga's telecommunications market had been  opened up following the adoption of the 
Communications Act 2000.  The Government however retained a monopoly on the provision of domestic telecommunication services through the T onga Telecommunication Company, a majority 
public owned company, whose Board was chaired ex officio  by the Prime Minister.  International 
communication services, previously delivered by a foreign-owned supplier through a franchise WT/ACC/SPEC/TON/4 
Page 32  
 
agreement with his Government, were now operated by Tonga Telecommunications International Ltd.  
As to Internet services, two mobile services provide rs offered international communication services in 
addition to the land-line facilities.   
134. Under the 2000 Communication Act, any person or  company wishing to deliver domestic or 
international communication services, including televisi on, radio, internet, and mobile phone services, 
could apply for a licence.  Licenses were delivered by the Privy Council under conditions set out by 
the Council, including (i) the approval by the Tonga Telecommunication Commission of the technical 
operating details of the service, (ii) sufficient funds to establish and maintain such a service, and (iii) 
payment of an annual licence fee (TOP5,000 in 2000) .  In addition, with a view to monitoring 
developments in the telecommunication sector and en suring fair competition, approval by the Cabinet 
was also required.  A licence was granted for five years and could be renewed every two years 
thereafter.  The transfer of a licence was subject to the approval of the Privy Council.  Licenses could 
be revoked in case of non-payment of the licence f ee, and lapsed after 12 months of non-use.  The 
licence holder was expected to exercise "self-censo rship" in respect of cultural sensitivities.   
135. As to accountancy services, licenses were deliv ered by the Ministry of Labour, Commerce 
and Industry.  Approval from the Tonga Society of Accountants was not needed, and no market 
access restrictions were imposed on foreign accountan ts and foreign accounting firms to practice in 
Tonga.  Education services had been opened to fore ign providers, and several  religious institutions 
had established secondary schools.  Other academic in stitutions, such as the University of the South 
Pacific Extension Centre, provided degree-level courses.   
136. Specific regulations applied to  shipping and electricity-related services.  Shipping licenses 
had to be endorsed by the Ministry of Marine and Ports, and the Tonga Electric Power Boards verified 
qualifications and services to be provided before i ssuing licenses for electricity-related services.  The 
representative of Tonga confirmed that no specific requirements applied to practice engineering, 
computing and architectural services in Tonga,  except possession of a licence delivered by the 
Ministry of Labour, Commerce and Industry.   
Transparency
 
Publication of information on trade  
137. The representative of Tonga said that the Govern ment Printing Department published all laws 
and regulations affecting trade, wh ich were sold to the public at affordable prices.  Information on 
laws and regulations was also available free of charge from the WTO Section at the Ministry of 
Labour, Commerce and Industries.    WT/ACC/SPEC/TON/4 
 Page 33 
 
 
Notifications  
[to be completed] 
Trade agreements  
138. The representative of Tonga said that Tonga did not grant preferences to any trading partner.  
He added that Tonga was a member of the South Pacific Forum, a political grouping of independent 
and self-governing States in the South Pacific.  Th e South Pacific Forum had been established in 1971 
to develop a collective response to regional issues.   Tonga was also a party to the South Pacific 
Regional Trade and Economic Co- operation Agreement (SPARTECA), signed in July 1980.  The 
SPARTECA Agreement was a preferential non-recipr ocal trade agreement whereby Australia and 
New Zealand extended duty free and unrestricted  or concessional access for virtually all products 
originating in the Forum Island members, i.e. Cook Islands, the Federated States of Micronesia, Fiji, 
Kiribati, Marshall Islands, Nauru, Niue, Papua New Guinea, Solomon Islands, Tonga, Tuvalu, 
Vanuatu and Western Samoa.  The Agreement in cluded provisions for general economic, commercial 
and technical co-operation and safeguard provisions  against product dumping.  He confirmed that 
Tonga did not provide any duty-free or concessional access to products originating in Australia and 
New Zealand under this Agreement.   
139. Tonga and Fiji had signed a bilateral trade agre ement in 1995, aimed at facilitating the free 
flow of agricultural produce.  The Agreement w as non-reciprocal, having been formulated shortly 
after a bilateral quarantine protocol had been estab lished for 20 agricultural items imported into Fiji 
from Tonga.  A joint committee met bi-annually to discuss matters of mutual trade interest.   
140. He added that Tonga had participated in th e Regional Long-Term Sugar Agreement, running 
from 1995-1998.  Under this Agreement, Fiji had s upplied agreed quantities of sugar to Kiribati, 
Solomon Islands, Tonga, Tuvalu and Western Samoa at pre-determined prices.  The Agreement had 
been administered by the Forum S ecretariat, located in Suva (Fiji) .  Tonga's entitlement had been 
allocated among private firms based on their requests without any form of price subsidy.   
141. Tonga was also a signatory to the Lomé Convention between the European Communities 
(EC) and 70 countries in Africa, the Caribbean a nd the Pacific (ACP), whereby the EC extended non-
reciprocal trade preferences to the ACP States.   
142. [The representative of Tonga stated that his Government would observe the provisions of the 
WTO, including Article XXIV of the GATT 1994 and Article V of the GATS in its trade agreements.  The Working Party took note of this commitment.] WT/ACC/SPEC/TON/4 
Page 34  
 
Conclusions
 
143. The Working Party took note of the explanati ons and statements of Tonga concerning its 
foreign trade regime, as reflected in this Report.  The Working Party took note of the commitments 
given by Tonga in relation to certain specifi c matters which are reproduced in paragraphs 
[……………………………………………and …..] of this Report.   The Working Party took note that 
these commitments had been incorporated in paragra ph 2 of the Protocol of Accession of Tonga to the 
WTO. 
144. Having carried out the examination of the foreign trade regime of Tonga and in the light of 
the explanations, commitments and concessions ma de by the representative of Tonga, the Working 
Party reached the conclusion that Tonga be invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Article  XII.  For this purpose, the Working Party has 
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this Report, and 
takes note of Tonga's Schedule of Concessions and Commitments on Goods (document WT/ACC/TON/../Add.1) and its Schedule of Sp ecific Commitments on Services (document 
WT/ACC/TON/../Add.2) that are annexed to the draft Protocol.  It is proposed that these texts be 
adopted by the General Council when it adopts th e Report.  When the Decision is adopted, the 
Protocol of Accession would be open for acceptance by Tonga which would become a Member thirty 
days after it accepts the said Protocol.  The Working Party agreed, therefore, that it had completed its 
work concerning the negotiations for the acce ssion of Tonga to the Marrakesh Agreement 
Establishing the WTO.    WT/ACC/SPEC/TON/4 
 Page 35 
 
 
ATTACHMENTS 
Table 1:  Enterprises with government ownership in mid-2002  
Organization Percentage of Government 
Ownership Number of Shares 
1999/2000 
Air Pacific Limited <5 70,400 
Bank of Tonga 4 120,000 
Export Produce Treatment Services Ltd. 20 40,000 
Frisco 99 99 
Hawaiian Air <5 208 
Home Gas 99 99 
International Dateline Hotel 99 5,999,999 
Leiola Duty Free 60 600,000 
Pacific Forum Line Limited Approx. 5 1,271,956 
Primary Produce Ltd. 99 99 
Royal Tongan Airlines 99 12,000,000 
Sea Star Fishing Co. Ltd 70 42,000 
Shipping Corporation of Polynesia Ltd 100 10,000 
Tonga Development Bank 100 1,400,000 
Tonga Investment Ltd 99 100 
Tonga Telecommunications International Ltd 100 6,712,466 
Tonga Timber Limited 99 1,889,999 
Tonga Corporation 100 250,000 
 WT/ACC/SPEC/TON/4 
Page 36  
 
Table 2:  Products subject to price control
 
Commodity Tariff Line Item 
Flour 11.02 
Sugar 1701.0000 
Butter 0405.0000 
Margarine 15.17 
Baby Milk 0402.1000 
Tea 0902.0000 
Rice 1006.0000 
Coffee 0901.0000 
Cocoa 1801.0000 
Edible Oils of all types 15.01 – 1516.0000 
Cheese and Dripping 15.01 
Salt 2501.0000 
Infant Food Preparations 19.01 
Motor Vehicles 87.04 
Motor Cycles 87.11 
White Benzene 2710.0020 
All Lubricant Oils 2710.0070 
Insecticides 3808.1000 
Herbicides 3808.3000 
Fungicides 3808.2000 
All chemicals and fertilisers for agricultural use 3101.0000 – 3105.0000 
Motor Vehicle spare parts 87.08 
Liquid petroleum products  27.10 
Motor Spirit 2710.0010 
Kerosene 2710.0040 
Diesel not available 
Bread of standard size 1905.1010 
  WT/ACC/SPEC/TON/4 
 Page 37 
 
 
Table 3:    Quarantine fees levied on exports of agricultural goods  
FUMIGATION 
Small Chamber  (1.1 m3) $10.00 
All other fumigation chambers including sheet fumigation. $7.75 per m3 or part thereof (maximum of 
$130.00 per container and/or chamber). 
HEAT STERILISATION 
Sterilisation of goods by heat in an oven $7.75 per 0.2m3 or part thereof (maximum of 
$130.00 per container and /or chamber) 
WASTE DISPOSAL 
Disposal/incineration of quarantinable material e.g. war ships  $0.40 per hour or part thereof. 
STEAM CLEANING 
Per consignment $15.00 per hour or part thereof. 
COLD STORAGE 
Cool room/refrigerator $0.02 per kg per 24 hours or part thereof 
Freezer $0.04 per kg for the first 24 hours and $0.02 
per kg per 24 hours or part thereof, thereafter. 
INSPECTION AND CLEARANCE: 
EXAMINATION FOR IMPORT OR EXPORT 
Documentation (Certificates and permits) $4.00 
Examination of a container system unit $2.00 
Examination of motor vehicle $4.00 
Examination of goods at airports for issuing of a 
Phytosanitary Certificate (Max. 15 mins) $2.00 
Examination of goods, other than at an airport for the 
issuing of a Phytosanitary Certificate (Max. 30 mins) $4.00 
AIRCRAFT CLEARANCE 
Light Aircraft $50.00 
Narrow-bodied aircraft (untreated) $80.00 
Narrow-bodied aircraft  (treated) $50.00 
Wide-bodied aircraft (untreated) $120.00 
Wide-bodied aircraft (treated) $60.00 
SHIP CLEARANCE 
Vessel of more than 25 metres in length $50.00 
Vessel of 25 metres or less in length $20.00 
POST-ENTRY QUARANTINE 
Bench space per month (per 0.5 m3 or part thereof) $7.75 
Potting Material, chemicals and other related expenses At cost 
OVERTIME 
For aircraft and passenger cl earance at Airports;   
       Weekdays $4.00 per hour 
       Weekends & Public Holidays $5.00 per hour 
Other than aircraft and passenger clearance at Airports $2.00 per hour 
MISCELLANEOUS FEES 
Hire of forklift and driver $25.00 per hour 
Any other activity not specified in these Regulations $4.00 per officer per half hour or part thereof 
including travelling time 
Note :  All fees are  stated in Tongan Pa’anga.  
Source:  Adapted from Tonga Government’s Gazette Supplement Extraordinary, No.7, 24 Friday 1997, “The 
Plant Quarantine Fees Regulation 1997”.  WT/ACC/SPEC/TON/4 
Page 38  
 
Table 4(a): Goods prohibited to import into Tonga
 
1.  Counterfeit coin, currency notes or stamps. 
2.  Indecent articles (obscene books, paintings, drawings, cards, lithographic or other engravings, 
photographs, prints, films or other indecent products  or articles except for pr ivate purposes) [Schedule 
II, Part 1 (Section 35) PROHIBITED AND RESTRICTED IMPORTS] 
3.  Goods bearing the royal Arms of the Kingdom of Tonga, unless importers holds his Majesty's 
authority. 
4.  Goods bearing any trade name or trade mark being or claiming to be the name or trade mark registered 
under the Registration of United Kingdom Trade Mark Act. 
5.  Fireworks, unless given permission by Minister of Police. 
6.   All books and any written or printed matter, sounds and visual recordings subject to copyright law. 
7.  All books and any written or printed matter and sou nd and visual recordings which advocate violence, 
lawlessness or disorder. 
8.  All toxic or hazardous wastes. 
9.  Goods the importation of which is prohibited by any other law in force in the Kingdom. 
10.  Goods the importation of which is restricted by any other law in force in the Kingdom except in 
accordance with such law.   WT/ACC/SPEC/TON/4 
 Page 39 
 
 
Table 4(b): Goods requiring a special import licence  
HS Number Description Permission required & Ministry involved Application 
Fee 
93.03 Firearms and ammunition  licence issu ed by the Minister of Police $10.00 
3602.000 Explosives of all kinds including 
fuses and detonators  licence issued by the Mi nister of Police Nil 
9304.0000 Noxious, stupefying or tear gas in 
any form and all weapons and instruments or appliances for firing 
or using such gas containers or 
cartridges for such weapons or other 
instruments or appliances  written permission of the Minister of Police Nil 
2208.3010 Brandy and whisky  certified to the satisfaction of the Collector 
of Customs that it has been matured in 
wood for three years* Nil  
2208.4010 Rum  certified to the satisfaction of the Collector 
of Customs that it has been matured in 
wood for two years* Nil  
87.04 
87.11 Motor vehicles, motor cycles and 
motor scooters  licence issued by the Minister of Finance 
and the Minister of Police (for public safety 
purposes and records keeping)   Nil 
87.04 Left hand drive motor vehicles  licen ce issued by the Minister of Police (for 
public safety purposes and records keeping)  Nil 
4007.0010 Eggs  licence issued by the Minister of Finance* Nil  
1905.9010 Cabin and ships biscuits  licence issued by the Minister of Finance * Nil 
 Goods the importation of which is 
restricted by any other law in force in 
the Kingdom except in accordance 
with such law.   
 *  Tonga is prepared to remove its licensing requirements for eggs, cabin and ships biscuits, brandy and 
whisky, and rum as at the date of its accession to the WTO. WT/ACC/SPEC/TON/4 
Page 40  
 
Table 5:  Import licence fees levied on a consignment basis
 
Nature of import Fee 
Importer of meat, fish or poultry 10.00 
Importer of eggs 10.00 
Importer of salted meat 10.00 
Importer of canned meat 10.00 
Importer of butter 10.00 
Importer of sugar, flour, salt, milk powder or rice 10.00 
Importer of tea, coffee, milo, etc. 10.00 
Importer of other grocery goods 10.00 
Importer of motor vehicles (right-drive) (per vehicle) 15.00 
Importer of motor cycl e (per cycle) 5.00 
Importer of motor vehicles (left-drive) (per vehicle) 15.00 
Importer of beer or ale 10.00 
Importer of spirituous liquor 30.00 
Importer of cigarette s and tobacco 30.00 
Importer of soap, soap powder, detergents, etc. 30.00 
Importer of timber as building material 10.00 
Importer of other building materials 10.00 
Importer of light machinery and equipment (per unit/set) 20.00 
Importer of heavy machinery and equipment (per unit/set) 50.00 
Importer of chemicals, compounds and mixtures 10.00 
Importer of other dry products or items 10.00 
Importer of other products in liquid form 10.00 
Importer of fertilisers 10.00 
Importer of fungicides, insecticides or pesticides 10.00 
Importer of petroleum products including lubricants 20.00 
Importer of liquid paraffin gas 20.00 
Importer of  hardware goods 10.00 
Importer of computers, radios, televisions, electrical goods 10.00 
Importer of other electrical or  electronic components 10.00 
Importer of vehicle and machinery parts 10.00 
Importer of goods for privates sell 20.00 
Importer of other goods * 5.00 
* No licence is required for consignments under 200 kilograms (by ship) or 60 kilograms (by air).  WT/ACC/SPEC/TON/4 
 Page 41 
 
 
Table 7:  Export licence fees  
Category of exporter Fee per consignment (T$) 
Exporter of frozen fish 20.00 
Exporter of  shellfish 10.00 
Exporter of live fish and molluscs 30.00 
Exporter of marine products for medical purposes 20.00 
Exporter of corals, shells, etc. 20.00 
Exporter of beche-de-mer 20.00 
Exporter of other marine products 20.00 
Exporter of meat and poultry 10.00 
Exporter of live birds 50.00 
Exporter of vanilla 10.00 
Exporter of bananas 10.00 
Exporter of coconuts products 10.00 
Exporter of  drinking coconut 10.00 
Exporter of squash 20.00 
Exporter of swamp taro 10.00 
Exporter of watermelon 10.00 
Exporter of vegetable produce 10.00 
Exporter of giant taro 10.00 
Exporter of ginger 10.00 
Exporter of coffee or cocoa 10.00 
Exporter of coffee or cocoa beans or cultivars 10.00 
Exporter of other agricultural produce 10.00 
Exporter of manufactured goods 10.00 
Exporter of processed goods 10.00 
Exporter of other produce and commodities 10.00 
Exporter of handicrafts 10.00 
Exporter of other goods 10.00 
* Licences are required only for cons ignments exceeding 200 k ilograms by ship and 60 kilograms by air. WT/ACC/SPEC/TON/4 
Page 42  
 
Table 8:  Import prohibitions relating to animals, plants and related products
 
Plant 
Name Plants or plant material prohibited 
Banana, Abaca, other Musaceae Heliconi aceae Plants, corns and cut flowers 
All Beans of the species Ph aseolus All except seed 
Cassava (Manihol esculenta Grantz) All except tissue cultures 
Citrus All except fruit and seeds. Fruit from areas where 
citrus canker (Xanthomonas Campestris p.v. citri, (Has ee) Dye) Occurs.  All of 
Murraya spp. 
All palms including coconut All except seednuts and pollen from areas approved by 
the Minister 
Cacao and host plants of Cacao swollen shoot All except seed from Asia Pacific Region 
Coffe (Coffea spp.) All propag ating material except seed 
Maize (Zea mays L) All except seed 
Peanut (Arachis hypogaea L) All except seed 
Potato (Solanum tuberosum L) All except  tubers, true seed and tissue cultures 
Sorghum (Sorghum spp) All except seed 
Rubber (Hevea spp) All 
Taro and edible aroids (Alo casia spp, Colocasia spp, 
Xanthosoma spp nd Cyrtosperma spp) All except propagating ma terial, seed and tissue 
cultures 
Tomato  (Lycopersicon esculenum Miller) All except fruit and seed 
Orchidaceae All except tissue cultu res and seedlings in Sterile 
flasks. 
Animal 
Prohibition on importation or 
liberation of certain 
animals 7.  (1)   No person shall import or introduce into the Kingdom without prior approval of His 
Majesty’s Cabinet any animal or carcass of the species listed below:- 
  (a) any snake of any species whatever; 
  (b) any venomous reptile, or any living stage of any venomous amphibian, 
venomous fish or venomous invertebrate; 
  (c) any monkey of any species;    (d) any member of the squirrel species; 
  (e) any red fox or silver fox; 
  (f) any musquash (or muskrat);   (g) any hamster; 
  (h) any mongoose; 
  (i) any coypu (or nutria);   (j) any mink; 
  (k) any rabbit; 
  (l) any hare;   (m) any deer 
  (n) any opossum; 
  (o) any other animal that is likely to  become a nuisance or to cause injury or 
damage. 
 (2) No person shall without prior approval of Cabinet import or introduce into the 
Kingdom the egg, semen or carcass of any an imal specified in subsection (1) of this 
section. 
Source :  The Plant Quarantine Act and the Animal Diseases Act, Second Schedule, Regulation 31.  WT/ACC/SPEC/TON/4 
 Page 43 
 
 
ANNEX 1 
Laws, Regulations and Other Information Provided to the Working Party by Tonga  
- Industrial Development Incentive Act 1978 (Cap. 48) and Amendments 1990, 1992; 
- Act No. 11 of 4 October 1982 To Amend th e Industrial Development Incentives Act 1978; 
- Foreign Investment Act 2001; 
- Foreign Investment Act 2002; 
- Act No. 3 of 8 September 1947 (as amended, 1950, 1956 and 1984) To Make Provision For 
Controlling the Prices of Goods and Services and Wage Rates; 
- Protection Against Unfair Competition Act, 2001; 
- Chapter 27 of the Companies Act of 1988; 
- The Registration of Business Names Bill 1995 - A rrangement of Sections and Registration of 
Business Names Act, 2001; 
- Act No. 20 of 2 November 1993 To Amend the Licences Act; 
- Licence (Amendment) Act 1995 (Cap. 47); 
- Drafting Guidelines for Amendments to the Licences Act Cap. 47; 
- Application for Licence to Import Goods; 
- Act No. 29 of 16 October 1987 To Amend the Intoxicating Liquor Act; 
- Customs and Excise Act 1998 (Cap. 67) and Amendments; 
- Customs and Excise Act (1983) Part I:  Imports – Classification and Tariff; 
- Act No. 3 of 24 June 1992 to Amend the Customs Duty and Excise Act (Cap. 67); 
- Act No. 6 of 6 July 1927 (as amended, 1950, 1963, 1964, 1974, 1997 and 1988) To Impose 
Stamp Duties; 
- Port and Service Tax Act 1988 (Cap. 71); 
- Act No. 22 of 23 October 1990 To Am end the Port and Service Tax Act; 
- Act No. 11 of 1 September 1981 To Amend the Wharves Act; 
- Wharves Act 1992 (Cap. 138) and Amendments 1997, 1998; 
- List of Products subject to Wharfage Tax (conf erred by Sections 5 and 16 of the Wharves Act 
1992 (Cap. 138); 
- Schedule of Duty Free and Ports & Services Tax Free Goods; 
- Acts Nos. 6 of 3 November 1964 and 3 of 1985 To Impose a Tax Upon Fuel Imported into 
the Kingdom and Sold by the Importer; 
- Act No. 3 of 1 July 1986 To Impose a Tax Upon Retail Sales of All Goods and Services in the 
Kingdom of Tonga; 
- Information on Implementation and Administra tion of the Customs Valuation Agreement; 
- Agricultural Commodities Export Act of 2001, Section 4 – The Agricultural Commodities 
Export (General) Regulations 2001; 
- Draft Bill for an Agricultural Commodities Export Act; 
- Public Health Act 1992 and Amendments; 
- Animal Diseases Act of 1978, Section 13 – The Animals (Importation) Regulations 2001; 
- Animal Diseases Act 1988 (Cap 146); 
- Draft Bill for an Act to Amend the Animal Diseases Act 1978; 
- Pesticides Act of 2001, Section 22 – The Pesticides Regulations; 
- Pesticides – information and application form s for licenses, registration and user permits; 
- Draft Bill for a Pesticides Act; 
- Act No. 18 of 15 April 1928 (as amended, 1986 and 1988) Relating to Quarantine; 
- Plant Quarantine Act (Cap. 127) 1988; 
- Information on State Trading; 
- Act No. 10 of 30 September 1987 to Amend the Copyright Act of 1985; 
- Copyright Act 1988 (Cap. 121) and Amendments; 
- Draft Law on Copyright and Related Rights; 
- Copyright Act 2001; WT/ACC/SPEC/TON/4 
Page 44  
 
- Copyright Act 2002;  
- Industrial Property Act 1994 (Cap. 19); 
- Industrial Property Regulation 1998; 
- Act No. 19 of 9 November 1994 To Provide For the Registration and Protection of Patents, 
Utility Model Certificates, Industr ial Designs and Trade Marks; 
- Protection of Geographical Indications Act 2001; 
- Protection of Layout Designs (Topographies) of Integrated Circuit Act 2001; 
- Act No. 21 of 18 October 1989 To Provide Fo r Law Practitioners;  For Their Professional 
Conduct and Discipline;  For The Establishment of the Tonga Law Society and For Connected Purposes; 
- Act No. 16 of 15 August 1991 To Require Th e Registration Before Practice of Medical, 
Dental, Nursing, Midwifery and Other Health Professions in Tonga; 
- Act No. 13 of 7 August 1984 To Amend the Tonga Telecommunications Act, 1983; 
- Act No. 15 of 21 September 1989 To Regulate Broadcasting and Matters Related Thereto; 
- Act No. 22 of 30 October 1991 To Regulate th e Licensing and Supervision of Financial 
Institutions in Tonga and For Purposes Connected Therewith; 
- Act No. 15 of 15 August 1991 To Provide For a Comprehensive Health Service For Tonga; 
- Act No. 29 of 2 November 1992 To Deal with Public Health Services in Tonga; 
- Act No. 9 of 24 October 1949 (as amended, 1950, 1951, 1956, 1957, 1960, 1962, 1974, 1975, 
1981, 1983 and 1988) To Provide For the Estab lishment of the Tonga Electric Power Board 
For the Production, Control and Distribution of Electric Power Throughout the Kingdom and 
For Related Purposes; 
- Water Board Act (Section 28) Water Suppl y (Amendment) Regulations 1992 (Tonga 
Government Gazette Supplement Extrao rdinary No. 5 of 5 June 1992;   
- Act No. 19 of 5 July 1977 (as amended, 19 79, 1980 and 1990) To Control and Regulate 
Tourism by the Establishment of an Advisory Board and by the Introduction of a System of 
Licensing of Tourist Facilities and Matters Relative Thereto;  and 
- Act No. 16 of 31 March 1970 To Make Better Provision For the Control of Immigration. 
 
_______________ 
 
  WT/ACC/SPEC/TON/4 
 Page 45 
 
 
[Draft Decision 
ACCESSION OF THE KINGDOM OF TONGA 
Decision of […] 
 The General Council,  Having regard to  paragraph 2 of Article XII and paragr aph 1 of Article IX of the Marrakesh 
Agreement Establishing the World Trade Organizati on (the "WTO Agreement"), and the Decision-
Making Procedures under Articles IX and XII of th e Marrakesh Agreement Establishing the World 
Trade Organization agreed by the General Council (WT/L/93); 
 Conducting  the functions of the Ministerial Confer ence in the interval between meetings 
pursuant to paragraph 2 of Article IV of the WTO Agreement; 
 Taking note  of the application of the Kingdom of Tonga for accession to the Marrakesh 
Agreement Establishing the World Trad e Organization dated 9 December 1994; 
 Noting  the results of the negotiations directed toward the establishment of the terms of 
accession of the Kingdom of Tonga to the WTO Agreement and having prepared a Draft Protocol on 
the Accession of the Kingdom of Tonga; 
 Decides  as follows: 
 The Kingdom of Tonga may accede to the WTO Agreement on the terms and conditions set 
out in the Draft Protocol annexed to this Decision. 
_______________ WT/ACC/SPEC/TON/4 
Page 46  
 
DRAFT PROTOCOL 
ON THE ACCESSION OF THE KINGDOM OF TONGA 
Preamble
 
 The World Trade Organization (hereinafter referred to as the "WTO "), pursuant to the approval 
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement Establishing the World Trade Organizati on (hereinafter referred to as the "WTO Agreement "), and the 
Kingdom of Tonga,  
 Taking note of the Report of the Working Party on the Accession of the Kingdom of Tonga to 
the WTO Agreement reproduced in document WT/ACC/TON/[…], dated […] (hereinafter referred to as the "Working Party Report"), 
 Having regard to the results of  the negotiations on the accession of the Kingdom of Tonga to the 
WTO Agreement,  
 Agree as follows: 
PART I -  GENERAL 
1. Upon entry into force of this Protocol pursua nt to paragraph 8, the Kingdom of Tonga accedes 
to the WTO Agreement pursuant to  Article XII of that Agreement and thereby becomes a Member of 
the WTO.  
2. The WTO Agreement to which the Kingdom of Tonga accedes shall be the WTO Agreement, 
including the Explanatory Notes to that Agreement, as  rectified, amended or ot herwise modified by such 
legal instruments as may have entered into force before the date of entry into force of this Protocol.  This 
Protocol, which shall include the commitments referr ed to in paragraph [143] of the Working Party 
Report, shall be an integral part of the WTO Agreement. 
3. Except as otherwise provided for in para graph [143] of the Working Party Report, those 
obligations in the Multilateral Trade Agreements annexed to the WTO Agreement that are to be 
implemented over a period of time starting with the entry into force of that Agreement shall be 
implemented by the Kingdom of Tonga as if it had accepted that Agreement on the date of its entry into force. 
4. The Kingdom of Tonga may maintain a measure in consistent with paragr aph 1 of Article II of 
the GATS provided that such a measure was recorded in  the list of Article II Exemptions annexed to this 
Protocol and meets the conditions of the A nnex to the GATS on Article II Exemptions. 
PART II - SCHEDULES 
5. The Schedules reproduced in Annex I to th is Protocol shall become the Schedule of 
Concessions and Commitm ents annexed to the General Agr eement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Co mmitments annexed to the 
General Agreement on Trade in Services (hereinafter referred to as "GATS") relating to the Kingdom of 
Tonga.  The staging of the concessi ons and commitments listed in th e Schedules shall be implemented 
as specified in the relevant pa rts of the respective Schedules.  WT/ACC/SPEC/TON/4 
 Page 47 
 
 
6. For the purpose of the reference in paragraph 6(a)  of Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Conc essions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
PART III - FINAL PROVISIONS 
7. This Protocol shall be open for acceptance, by  signature or otherwise, by the Kingdom of Tonga 
until […]. 
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall 
have been accepted by the Kingdom of Tonga.  
9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-General 
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance by 
the Kingdom of Tonga thereto pursuant to paragrap h 9 to each Member of the WTO and to the 
Kingdom of Tonga.   
 This Protocol shall be registered in accordance with the provisions of Ar ticle 102 of the Charter 
of the United Nations.   
 Done at […] this […] day of […] in a single c opy in the English, French and Spanish languages, 
each text being authentic, except that a Schedule anne xed hereto may specify that it its authentic in only 
one of these languages. 
_______________ WT/ACC/SPEC/TON/4 
Page 48  
 
ANNEX I 
SCHEDULE […] – KINGDOM OF TONGA 
Authentic only in the … language. 
(Circulated in document WT/ACC/TON/…/Add.1) 
_______________ 
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES 
LIST OF ARTICLE II EXEMPTIONS 
Authentic only in the … language. 
(Circulated in document WT/ACC/TON/…/Add.2) ] 
__________