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RESTRICTED WT/TPR/W/122 13 January 2017 (17-0235) Page: 1/37 Trade Policy Review Body DRAFT MINUTES of the MEETING* HELD on 13 A RESTRICTED WT/TPR/W/122 13 January 2017 (17-0235) Page: 1/37 Trade Policy Review Body SOLOMON ISLANDS DRAFT MINUTES OF THE MEETING* HELD ON 13 AND 15 DECEMBER 2016 Delegations are invited to submit factual corrections, if any, on their own statement to the Secretariat (Mrs Barbara Blanquart: [email protected], or to [email protected]) no later than 27 January 2017. Organe d'examen des politiques commerciales ÎLES SALOMON PROJET DE COMPTE RENDU DE LA RÉUNION* TENUE LES 13 ET 15 DÉCEMBRE 2016 Les délégations sont invitées à soumettre leurs éventuelles corrections factuelles concernant leurs propres déclarations au Secrétariat (Mme Barbara Blanquart: [email protected], ou [email protected]) le 27 janvier 2017 au plus tard. Órgano de Examen de las Políticas Comerciales ISLAS SALOMÓN PROYECTO DE ACTA DE LA REUNIÓN* CELEBRADA LOS DÍAS 13 Y 15 DE DICIEMBRE DE 2016 Las delegaciones pueden enviar a la Secretaría (Sra. Barbara Blanquart: [email protected], o [email protected]) a más tardar el 27 de enero de 2017 las correcciones fácticas que deseen introducir en sus propias declaraciones. _______________ * In Original language only/En langue originale seulement/En el idioma original solamente. WT/TPR/W/122 • Solomon Islands - 2 - TRADE POLICY REVIEW SOLOMON ISLANDS DRAFT MINUTES OF THE MEETING Chairperson: Ms Irene Young (Hong Kong, China) CONTENTS 1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ....................................................... 3 2 OPENING STATEMENT BY THE REPRESENTATIVE OF SOLOMON ISLANDS .................... 5 3 STATEMENT BY THE DISCUSSANT .............................................................................. 10 4 STATEMENTS BY MEMBERS ........................................................................................ 14 5 REPLIES BY THE REPRESENTATIVE OF SOLOMON ISLANDS AND ADDITIONAL COMMENTS ..................................................................................................................... 29 6 CONCLUDING REMARKS BY THE CHAIRPERSON ......................................................... 36 Note: Advance written questions and additional questions by WTO Members, and the replies provided by Solomon Islands are reproduced in document WT/TPR/M/349/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/W/122 • Solomon Islands - 3 - 1 INTRODUCTORY REMARKS BY THE CHAIRPERSON 1.1. The third Trade Policy Review of Solomon Islands was held on 13 and 15 December 2016. The Chairperson, Ms. Irene Young (Hong Kong, China), welcomed the delegation of Solomon Islands headed by the Honourable Mr. Milner TOZAKA, Minister of Foreign Affairs and External Trade; the delegation from Solomon Islands; and the discussant, Mrs. Dalia KADIŠIENĖ (Lithuania). 1.2. The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of the procedures for the meeting. The report by Solomon Islands was contained in document WT/TPR/G/349 and that of the WTO Secretariat in WT/TPR/S/349. 1.3. Questions by the following delegations had been submitted in writing before the deadline: Australia; European Union; Canada; Chinese Taipei; and the United States. The following delegations submitted written questions after the deadline: New Zealand and Thailand. 1.4. At the previous TPR meeting in May 2009, Members had recognized the various challenges facing Solomon Islands, had expressed their support for its ongoing reform efforts, and had urged it to accelerate the pace of macroeconomic and structural reforms, in order to achieve fiscal sustainability, diversify its economy, and improve living standards. Members were pleased to note that during this review period, Solomon Islands had indeed taken steps to strengthen its public financial management framework, its taxation system, and monetary policy framework. Now there was also a National Development Strategy setting out the country's economic policy in the next 20 years, and remarkably it contained Solomon Island's first formal trade policy framework. The Chairperson saw this as a positive response to Members' comment at the last TPR that the country needed to strengthen its institutional capacity, especially for trade policy formulation and implementation. 1.5. Solomon Islands had a relatively open investment regime, thanks to the liberalization efforts which Members had commended at the last TPR. This time, Members continued to express a strong interest in this area, asking questions about foreign investors' participation in various sectors and the discriminatory treatment they faced. These were issues that the country would need to address if it was to boost its relatively low and declining FDI inflows. 1.6. Back in 2009, Members had commended Solomon Islands' customs reform. It was encouraging to see that continued efforts had been made to further improve the customs procedures, in particular through the adoption of new legislation giving effect to the WTO Customs Valuation Agreement. Members looked forward to receiving Solomon Islands' notification on the relevant rules. 1.7. In this connection, Members might recall having encouraged Solomon Islands to make regular notifications to the WTO. As could be seen from Members' advance written questions, the absence of these notifications remained a concern. Members were expecting the authorities to step up compliance in this regard. 1.8. Another issue that had been outstanding since the last TPR was about tariffs and charges. It was commendable that Solomon Islands had bound its entire tariff schedule and had reduced its tariffs unilaterally. However, it was also noted in the last TPR that some applied tariff rates had exceeded corresponding bound rates and certain internal taxes had been applied in a discriminatory manner. It seemed that improvements had yet to be made – hence the many advance written questions posed by Members this time. 1.9. Focusing on specific trade sectors, Members had noted at the last TPR Solomon Islands' commitment to reforming its forestry legislation. This was of paramount importance because forestry was a major source of revenue, and supported the livelihood of many people in the Solomon Islands. As Members had pointed out last time, there was an urgent need for the country to strengthen natural resource governance, where harvesting rates were well above sustainable levels. This was also the subject of some advance questions this time. It was useful to know what concrete measures the Government had taken to address this issue. WT/TPR/W/122 • Solomon Islands - 4 - 1.10. In their questions, Members also showed interest in other areas of trade policy, such as import licensing procedures, technical regulations and standards, sanitary and phytosanitary measures, state trading, government procurement, competition policy and intellectual property. In terms of trading sectors, questions were also asked about agriculture, fisheries, energy and mining, and transport. 1.11. This meeting was a good opportunity for Members to discuss in greater detail these issues, as well as other issues of interest to Members and of systemic importance to the multilateral trading system. The Chairperson looked forward to a fruitful exchange. WT/TPR/W/122 • Solomon Islands - 5 - 2 OPENING STATEMENT BY THE REPRESENTATIVE OF SOLOMON ISLANDS (HON. MR. MILNER TOZAKA) 2.1. It is with great honor that I stand before this room today to present the opening statement of the third Solomon Islands' Trade Policy Review, on behalf of the Government of Solomon Islands. For a country such as ours, which operates on the margins of the global trading system, this exercise gives us the opportunity to show the world the progress we have made to implement policy measures that will not only boost our trading capacity, but also enhance our economic growth prospects. 2.2. We recognize this process as an important activity to promote transparency in our Government processes, and safeguard the effective functioning of the multilateral trading system. Solomon Islands' remains deeply committed to opening up our trading regime for evaluation and scrutiny in order to promote and encourage further reforms that will strengthen our obligations under the WTO. 2.3. Allow me to recognize the outstanding commitment and effort shown on the part of the WTO Secretariat, and my own Government, to ensure the full completion of this review. The report that you see before you meets our expectations in terms of comprehensiveness and quality, and I would like to express my sincerest gratitude to all those who participated in the process to produce a study of such high standard. 2.4. Since the last Trade Policy Review in 2009, the Government of Solomon Islands has continued to pursue policies and reforms aimed at improving the economic and social livelihoods of our people, to reduce poverty and promote sustained and inclusive economic growth. Reforms to increase investment opportunities, to encourage greater participation of the private sector, and reinvigorate productive and resource sectors are just some of the efforts underway to achieve these commendable ambitions. 2.5. Given that the majority of the population lives in rural areas, our Government is not only focusing on the main productive areas in and around Honiara, the capital city of Solomon Islands, but also concentrating on expanding employment and labor mobility opportunities for the rural population, to promote income generation, maintain urban stability and reduce the risk of a return to the conditions that led to the period
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