Proposal for a COUNCIL DECISION establishing the European Union position within the relevant instance of the World Trade Organization on the accession of Samoa to the World Trade Organization
Date: 2011-11-11
Institutions: European Commission
Subjects: Samoa, World Trade Organisation, accession to an agreement

EUROPEAN COMMISSION 

Brussels, 11.11.2011 
COM(2011) 732 final 

2011/0331 (NLE) 

Proposal for a 

COUNCIL DECISION 

establishing the European Union position within the relevant instance of the World 
Trade Organization on the accession of Samoa to the World Trade Organization 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Overview of the Terms of Samoa's Accession to the WTO 

I. INTRODUCTION 

Members of the World Trade Organization (WTO) and Samoa have reached the concluding 
stage  of  an  agreement  on  the  terms  for  Samoa's  accession  to  the  organization.  This  comes 
after 13 years of negotiations, which began when Samoa submitted its application to join the 
WTO  in  1998.  Samoa's  request  for  accession  has  been  examined  in  accordance  with  the 
guidelines  set  out  in  the  WTO  General  Council  Decision  of  10  December  2002  on  the 
accession  of  least-developed  countries  (LDCs)  and  there  must  now  be  a  Council  Decision 
approving the terms of Samoa's accession, before the EU can formally support Samoa's entry. 

A summary of the terms of the accession is set out below. 

II. SUMMARY OF TERMS OF SAMOA'S WTO ACCESSION BY SECTOR 

The average final bound rate (FBR) of Samoa is 21%.  

The final bound average in different industrial sectors fluctuates from the lowest averages of 
13.5% in pharmaceuticals and 16% in chemicals till the highest averages of 30% in footwear 
and toys. 

Out of 5,315 tariff lines in Samoa's schedule, only 23 will not reach its FBR at the moment of 
accession, and will consequently have an implementation period. The implementation period 
is till 2017 for 16 industrial tariff lines: ball bearings, navigation instruments, bicycles; and till 
2022 for 7 agriculture tariff lines: wheat, barley, chewing-gum.  

These average levels for tariffs are quite reasonable considering the LDC status of Samoa, the 
small  size  and  vulnerability  of  its  economy,  and  its  insular  character.  Past  EU  practice  in 
relation  to  LDCs  has  been  to  accept  as  reasonable  these  tariff  levels  for  comparable-sized 
economies. Samoa is participating in the negotiations of a comprehensive EPA as part of the 
Pacific-group of ACP countries. 

Industrial Goods 

–  The average FBR for non-agricultural products is 22.3%.  

–  Most of industrial sectors are bound at average tariffs below 25%, with peaks of 

30%.  

–  The  highest  levels  tariffs  are  found  in  footwear  and  toys  (final  bound  tariffs  are 

30%).  

–  Pharmaceutical tariff lines present the lowest average bound tariffs at 13.5% and 

chemical products are bound at the relatively low average level of 16%. 

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Agricultural goods 

–  On agricultural goods the FBR average is 19.6%.  

–  The agriculture peaks are 35% in chocolate, coffee, tobacco and pet food; 65% in 
fresh  vegetables  and  fish.  Cereals  such  as  wheat,  barley  and  rice  are  bound  at 
tariff levels between 10% and 15%. 

Services  

Samoa's  schedule  of  specific  commitments  in  services  is  very  satisfactory  considering  its 
LDC  status.  Samoa  will  undertake  market  access  and  national  treatment  commitments  in  a 
broad range of services sectors, including professional, computer and other business services, 
communication  services  (courier  services  and  telecommunications),  construction,  private 
educational, environmental, financial (insurance and banking) and tourism services.  

Protocol commitments 

In the final, multilateral stage of the accession process, WTO Members collectively sought to 
ensure  the  basic  compatibility  of  Samoa's  trade  laws  and  institutions  with  WTO  rules  and 
agreements,  setting  these  out  in  the  Protocol  of  accession  and  Working  Party  Report.  The 
following issues are of particular interest to the EU: 

Trading rights 

Samoa has confirmed that from the date of accession, its laws and regulations relating to the 
right to trade in goods and all fees, charges, and taxes levied on such rights would be fully in 
conformity  with  its  WTO  obligations.  In  particular,  Samoa's  import  licensing  system  for 
alcohol  –  which  merged  the  right  to  import  and  the  right  to  distribute  -  will  have  been 
amended,  including  the  establishment  of  a  temporary  licence  to  allow  the  licence  holder  to 
import and sell liquor on a temporary basis, and the delinking of the right to import and the 
right to distribute. 

Foreign investment 

Samoa has engaged in a revision of its Foreign Investment Act. Samoa confirmed that from 
the date of accession, it would comply with WTO requirements including its commitments set 
out in Samoa's Schedule of Specific Commitments in Services. This concerns specifically the 
administration of the Reserved and Restricted lists of economic activities as regulated by the 
Foreign Investment Act. 

Customs valuation 

By  the  date  of  accession,  Samoa's  customs  valuation  legislation  and  regime  will  have  been 
brought into conformity with the WTO Agreements on customs valuation. 

Areas where transition period have been requested 

Internal taxes to imports: Samoa will have to bring the tax treatment of imported and domestic 
primary products into conformity with WTO provisions (i.e. amend the Value Added Goods 
and  Services  Tax  (VAGST)  Act  to  address  the  current  exemption  from  the  VAGST  of 
primary producers which are, in all cases, small producers who sell their produce at the local 

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market)  within  three  years  of  accession.  At the  end  of  this  period,  Samoa  will  in  particular 
report  to  the  General  Council  of  the  WTO  on  the  amendment  or  elimination  of  the  tax 
exemption  at  stake.  The  transitional  period  will  be  used  to  devise  the  most  appropriate 
legislative reform, taking account of Samoa's domestic agricultural sector, the administrative 
constraints  faced  by  the  Ministry  in  charge  of  administering  VAGST  and  the  political 
sensitivities associated with the reform. 

Intellectual  Property  Rights:  by  the  date  of  accession,  Samoa  will  have  passed  legislation 
bringing  its  intellectual  property  scheme  into  conformity  with  the  TRIPS  Agreement;  full 
implementation will be ensured by July 2013. 

III. RECOMMENDATION 

In submitting the terms of Accession of Samoa to the WTO for approval by the Council, the 
Commission  considers  these  terms  as  representing  a  balanced  but  ambitious  package  of 
market  opening  commitments,  which  will  bring  substantial  benefits  to  Samoa  and  its  WTO 
trading partners alike. 

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2011/0331 (NLE) 

Proposal for a 

COUNCIL DECISION 

establishing the European Union position within the relevant instance of the World Trade 
Organization on the accession of Samoa to the World Trade Organization 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 91, 
100(2) and 207(4) first subparagraph, in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

On  15  April  1998  the  Government  of  Samoa  applied  for  accession  to  the  Agreement 
establishing the World Trade Organization (WTO), pursuant to Article XII of that Agreement. 

A  Working  Party  on  Samoa's  accession  was  established  on  15  July  1998  in  order  to  reach 
agreement on terms of accession acceptable to Samoa and all WTO Members. 

The Commission, on behalf of the Union, negotiated a comprehensive series of market opening 
commitments on the part of Samoa which satisfy the Union's requests and are in line with the 
development level of Samoa. 

(4) 

These commitments are now embodied in the Protocol of Accession of Samoa to the WTO. 

(5) 

Accession to the WTO is expected to make a positive and lasting contribution to the process of 
economic reform and sustainable development in Samoa. 

(6) 

The Protocol of Accession should therefore be approved. 

(7) 

(8) 

Article XII of the Agreement establishing the WTO provides that the terms of accession are to 
be agreed between the acceding Member and the WTO, and that the Ministerial Conference of 
the  WTO  approves  the  terms  of  accession  on  the  WTO  side.  Article  IV.2  of  the  Agreement 
establishing  the  WTO  provides  that  in  the  intervals  between  meetings  of  the  Ministerial 
Conference, its functions shall be conducted by the General Council. 

Accordingly,  it  is  necessary  to  establish  the  position  to  be  taken  by  the  Union  within  the 
relevant  instance  of  the  WTO,  be  it  the  Ministerial  Conference or  the  General  Council  of  the 
WTO, 

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HAS ADOPTED THIS DECISION:  

Sole Article 

1. 

2. 

The position to be taken by the European Union within the relevant body of the WTO on the 
accession of Samoa to the WTO, is to approve the accession. 

This decision shall enter into force on the day of its adoption.  

Done at […], 

For the Council 
The President 

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