WT/TPR/M/391

23 October 2019

(19-6960) Page: 1/36

Trade Policy Review Body

11 and 13 September 2019

TRADE POLICY REVIEW

SURINAME

MINUTES OF THE MEETING

Chairperson: H.E. Mr. Manuel A.J. Teehankee ()

CONTENTS

1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ...... 2 2 OPENING STATEMENT BY THE REPRESENTATIVE OF ...... 4 3 STATEMENT BY THE DISCUSSANT ...... 11 4 STATEMENTS BY MEMBERS ...... 15 5 REPLIES BY THE REPRESENTATIVE OF SURINAME AND ADDITIONAL COMMENTS ..... 29 6 CONCLUDING REMARKS BY THE CHAIRPERSON ...... 35

Note: Advance written questions and additional questions by WTO Members, and the replies provided by Suriname are reproduced in document WT/TPR/M/391/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.

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1 INTRODUCTORY REMARKS BY THE CHAIRPERSON

1.1. The third Trade Policy Review of Suriname was held on 11 and 13 September 2019. The Chairperson, H.E. Mr. Manuel Teehankee (Philippines), welcomed the delegation of Suriname, headed by H.E. Mr. Stephen Tsang, Minister of Trade, Industry and Tourism; H.E. Mr. Reggy Nelson, Permanent Representative of Suriname to the WTO; the rest of the delegation; and the discussant, H.E. Mr. Peter Brño (Slovak Republic).

1.2. The Chairperson informed Members that as stated in the Addendum to the Airgram for this meeting (WTO/AIR/TPR/89), the United Nations Industrial Development Organization (UNIDO) had requested to attend, as an ad hoc observer, the upcoming Trade Policy Review of . Thus, if there were no objections, he suggested that Members granted UNIDO observer status for this meeting, and accordingly invited the representative of UNIDO to participate in Peru's TPR meeting, as had been done in the past.

1.3. The Chairperson recalled the purpose of trade policy reviews and the main elements of procedures for the meeting. The report by Suriname was contained in document WT/TPR/G/391 and that of the WTO Secretariat in document WT/TPR/S/391.

1.4. Questions by the following delegations were submitted in writing before the deadline: Peru; Canada; European Union; ; ; ; ; ; and . The following delegations submitted written questions after the deadline: Indonesia; ; ; and .

1.5. At the time of the previous Trade Policy Review of Suriname in 2013, Members had commended Suriname for its prudent macroeconomic policies that had enabled it to weather the global economic crisis without resorting to any protectionist measures. They had also appreciated the steps that had been taken to improve the trade and investment environment. At the same time, Members had voiced concerns about outdated national laws and the quality of governance. In particular, many Members had noted that several pieces of legislation were at various stages of development, and that some of them had already been in the process of being prepared at the time of the previous Review in 2004.

1.6. With regard to tariffs, some delegations had welcomed the reduction in the average applied MFN tariff during the review period, but had also noted that some applied tariffs were above bound rates which was a result of adopting CARICOM's common external tariff. Suriname had also been urged to bear in mind the need to comply with other WTO commitments, such as those relating to notifications.

1.7. For the current Review, it was important to note that, since its last TPR, Suriname went through a severe economic crisis triggered by significant commodity terms of trade and internal shocks. In 2015 and 2016, GDP declined by 3.4 and 5.6%, respectively. peaked in late 2016, at about 60%, public debt levels increased significantly, from 32% of GDP in 2013 to some 80% in 2018, and the current account deficit increased considerably. Per capita GDP in US dollar terms was substantially lower than at the time of the last Review. However, on the positive side, a slow recovery of Suriname's economy was underway since 2017, when real GDP grew by 1.7%. The economy continued to strongly depend on minerals, with 90% of exports being and oil.

1.8. As for trade policy, the institutional environment remained largely unchanged since the last Review. Suriname is a member of CARICOM and applies the common external tariff with few exceptions. The policy environment was still characterized by a backlog in the adoption of important trade-related laws and a resort to ad hoc decisions to fill this gap. This continued to impact on the predictability of the trade regime, raising concerns about governance issues and resulting in high costs of doing business, as reflected in some of the advance written questions submitted by Members.

1.9. The Chairperson drew Members' attention to the following additional areas, among others, where Members were interested in having more clarity. These included: the legal framework for investment and the role of InvestSur; measures to improve the business environment, and to increase transparency in the economy and the predictability of the trade regime; tariffs; protection

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- 3 - of intellectual property rights; and the state of draft laws on anti-corruption, competition, public procurement, telecommunications, trade facilitation and customs procedures.

1.10. This meeting would be a good opportunity for Members to discuss in greater detail issues of interest to them and of systemic importance to the multilateral trading system. The Chairperson looked forward to a productive exchange of views.

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2 OPENING STATEMENT BY THE REPRESENTATIVE OF SURINAME (H.E. MINISTER TSANG)

2.1. I would like to take this opportunity to express our heartfelt sympathies to , our sister CARICOM nation who have been devastated by the hurricane Dorian. The Caribbean Nations are connected not only geographically, but mainly by their people. Our thoughts and prayers are with the people of the Bahamas. They will not stand alone, we have, we must and we will provide further support to rebuild their beautiful island. The devastation on the island is enormous and it may be a testament to the disastrous effect of climate change to the Caribbean nations and to the world.

2.2. We would like to thank the WTO Trade Policy Division for their support and facilitating this two-day session of our Trade Policy Review and allow me to start and to further elaborate on Suriname's trade policy.

2.3. We have received written questions from Brazil, China, Colombia, United States, Canada, Dominican Republic, Iceland, European Union, Peru, Argentina, Indonesia, Singapore, Trinidad and Tobago and these questions were answered and sent to the WTO Secretariat for dissemination to Member States. This is our third Trade Policy Review and I will be elaborating on developments occurred after our second Trade Policy Review in 2013.

2.4. As the Chair pointed out, shortly after our trade policy review, Suriname had an economic recession in 2015 due to the fall of commodity prices for gold and oil.

2.5. This resulted in drastic decrease of our income and a restructuring of our financial economic policy. We lowered government spending dramatically and, in the process, we created a sovereign wealth fund, to prepare for future commodity price drops.

2.6. We also implemented a national procurement policy based on the framework created by the CARICOM. We managed to stabilize our economy without a financial bailout. Today, we are slowly but surely coming out of this crisis.

2.7. Suriname is a country rich in natural resources. We are roughly about 4 times the size of , with only 560.000 people. With 93% forest coverage we have the highest percentage of forest coverage in the world, which is pristine Amazon jungle. We export much logs from the forest.

2.8. The drop-in commodity prices hit us hard and we could have opted to chop down 1% of the jungle, sell the wood and be out of the crisis much quicker. To put it into perspective, 1% of our forest is about 100 times the total area of Geneva. We could have even gone to 90% forest coverage and still be the highest forest covered country in the world, but we decided to commit the country to maintaining and preserving 93% of our rainforest, in line with the UN SDG 3, 13, 15 and 17 for environmental protection.

2.9. And instead, we made the decision to find alternative ways of generating income from the forest.

2.10. That is why we, the Republic of Suriname, held the first High Forested and Low Deforestation (HFLD) climate finance conference in February this year, with the objectives to strengthen cooperation, collaboration and exchange of knowledge and experience among the HFLD countries.

2.11. The objectives were to:

• Develop joint strategies and positions to help maintain our intact forests and preserve forest cover; • Make international communities more aware of the significant global importance of HFLD countries and their productive landscapes in combating climate change; • Share knowledge about technical and financial mechanisms available or in development with regard to climate finance for the HFLD nations; and • Strengthen the payment structure for ecosystem services that will be used to advance sustainable development whilst mitigating the risk of forest destruction and biodiversity loss.

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2.12. The drop-in commodities plunged us in an economic crisis, because we were too much dependent on our natural resources from the extractive industries. If one thing, the crisis led to drastic and necessary measures to speed up our economic reform. In a way, the crisis may have been a blessing.

2.13. Among other measures for reform, we are now focusing on:

- updating our legislation; - upgrading our human capital through education reforms; - upgrading our social security; - strengthening of our regional trade and commitments; - developing the green economy; and - implementing policies to develop other sectors.

2.14. And I want to elaborate on these issues in further detail.

With respect to updating our legislation

2.15. The challenge for us is the lack of finance and lack of expertise. The process to pass legislation in the Parliament is tedious and we have many laws in final draft pending processing in the Parliament. In the past 9 years, the parliament has invested heavily in upgrading the staff and technical expertise to assist in the development of new legislation. And, also, much investment is made in security and efficiency of the parliamentary processes. Although we have a huge backlog in updating the legislation, we have been making great progress in the recent years.

2.16. One of the priorities of the Government is to fight corruption and, therefore, we have passed the anticorruption law in 2017. To support the anticorruption law, we passed a series of legislations, most notably:

• the Law on annual reporting (2017); • the Law on electronic transactions (2017); • the government procurement law (2017), with an amendment in 2019 to further regulate the government procurement; • the amendment of the notary office law (2018); • the Law audit office Suriname (2018): and • the Law on chartered accountants (2018).

2.17. Furthermore, we have been working on a series of legislations to improve the economy of doing business in Suriname, most notably:

• The Suriname Energy authority act (2016); • The amendment of the commercial code to include Limited Liability Companies (2016); • The saving and stability fund law (2017) aka the Sovereign Wealth Fund; • The company and professions law (2017); and • A Center for innovation and productivity law (2019).

2.18. The Ministry of Trade, Industry and Tourism has drafted many laws, which are now pending processing in the parliament. Most notably are:

• the Law on Intellectual Property; • the Privacy Law; • the Law on Mediation; and • the Law on Commercial Competition.

2.19. Furthermore, the Ministry of Finance is working on drafting a revised investment law in order to promote and attract Foreign Direct Investment to Suriname. And we are working on a legislation to create industry parks and Free Trade Zones to attract more value-added processing to our natural resources.

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With respect to upgrading our human capital through education reforms

2.20. The Government of Suriname acknowledges the importance and the need for skilled labour.

2.21. The Ministry of Trade, Industry and Tourism is working with the Ministry of Education, Science and Culture to develop curricula to integrate entrepreneurship and environment awareness in our education system. Also, the education system is continuously being reformed to today's standards by including ICT and we are building more and more schools in rural areas. We recently launched a FAB node in the Amazon, together with French and Brazil and we held the first FAB academy in the 3 countries.

With respect to upgrading our social security

2.22. The Government acknowledges the importance of social stability to the business climate and is working on social housing projects with the private sector and building more hospitals in remote areas. Also, many legislations have been adopted by the Parliament, most notably:

• A general pension law (2014); • A law on basic health insurance (2014); • A law on the convention on the rights of persons with disabilities (2015); • A law on equal renumeration convention (2016); • A law on minimum wage (2019); and • A law on parental leave (2019).

With respect to strengthening our regional trade and commitments

2.23. Suriname is a member of the Caribbean Financial Action Taskforce (CFATF) and has launched the National Risk Assessment. We are currently working diligently on implementing measures for the NRA.

2.24. To expand trade and tourism, we will be focusing on South-South and non-traditional markets. One of our main priorities is to work on the connectivity in the region.

2.25. In cooperation with the private sector, we have successfully developed routes to Cuba and Panama, and we are continuously working on developing more flight routes in the region.

2.26. Suriname is strategically located were we can function as a hub for transport and tourism for the Caribbean region and South America. We have direct flights to Europe, the United States, Panama and the Caribbean.

2.27. We believe that with the development of our tourism sector we can strengthen other sectors as well and bring local MSMEs to the global value chain of tourism.

2.28. We are strengthening our bilateral relations with our CARICOM member states in the form of jointly developing CARICOM enterprises and joint initiatives. In this we have offered and provided land for the CARICOM member states who are mostly islands and who are vulnerable to natural disasters. Every year during the hurricane seasons, livestock and crops on the Caribbean islands are destroyed. With this programme, countries can grow their own crops and secure their own supply on Surinamese soil, that is blessed with no natural disasters like hurricanes and earthquakes. We believe that this programme is a win-win for all participants and will jumpstart trade with our fellow member states.

2.29. Jointly, we are talking about developing the transportation sector (maritime and air) to improve intra-regional trade. Furthermore, the development of multi destination tourism where not only the well-known sun, sand and beaches but also our pristine rain forest with its rich flora and fauna can become part of the tourist experience.

2.30. Suriname took the initiative for the establishment of the CARICOM Interactive Marketplace and Suspension Procedure (CIMSuPro). The initiative to setup this CIMSuPro arose from the burdensome process when requesting a suspension of the Common External Tariff. To ease this

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- 7 - process, the CIMSuPro Portal was developed. This portal was presented by Suriname at the Thirty-Seventh Meeting of the COTED in November 2013, where it was also officially approved.

2.31. The CIMSuPro portal provides a platform in which entrepreneurs from the CARICOM can offer their products, from raw materials to end products. CIMSuPro is also the virtual counter where a company can request exemptions from import duties.

2.32. Thus, the aim of CIMSuPro is to promote trade and production within CARICOM.

2.33. Through CIMSuPro, you can easily see what products are available within CARICOM.

2.34. This platform/portal will be the place where suppliers and demanders of products are directly linked with each other directly. To some extent, buyers from all over the world will have access to this portal, once it is fully operational. This platform will not only shorten the suspension procedure process but will also have transparency within it.

2.35. The first group of training is scheduled for October 2019. Once all the users have been trained the portal will be fully operational, and we expect that by the end of this year.

2.36. Suriname is part of the Caribbean but is also on the mainland of South America, and we are in the process of joining ALADI and to expand our market to the continent. We are seeking support from other ALADI members to join.

2.37. Suriname is also a member of the OIC and we have established the first Sharia Bank in the region. Currently, we are working on developing halaal standards and we are providing Muslim Friendly Tourism workshops and training to entrepreneurs.

With respect to developing the green economy

2.38. The green economy will be evident throughout our policy making. It will also be most evident in the branding of Suriname as an ecotourism destination.

2.39. The Government of Suriname has started the process of banning single use plastics and we have started implementing the ban on Styrofoam as of May 2019. Banning single use plastics is costly, but we are working with the private sector and we are seeing more and more development of alternative products and sustainable industries in Suriname.

2.40. The energy policy will focus on sustainable generation via solar, water and biogas.

With respect to implementing policies to develop other sectors

2.41. The policy is to diversify the economy to be less dependent on our extractive industries, and to develop more sustainable sectors like trade, and tourism.

2.42. The extractive industries are threatening our forests and as such we are trying to create awareness in the hinterlands and to move the young people away from illegal mining by providing sustainable alternatives.

2.43. For instance, we have successfully started a project with the Amerindians for nontimber forest products and we very recently had the first shipment of 500 litres of Tuhka oil, extracted from certain rare nuts in the amazon, to the United States. This is a project funded by the IDB.

2.44. Also, there are many tourism projects we have started in the hinterlands to provide an alternative to the extractive industries.

2.45. The policy is to raise awareness and have the people have access to and choose the sustainable ways of income.

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Trade

2.46. The Republic of Suriname is well aware of the fact that lowering trade barriers is one of the most obvious means of encouraging trade. However, it is the lowering of these barriers that are the most difficult for developing countries. Tariffs are a major source of government income and therefore lowering these "barriers" have a great impact on developing countries.

2.47. Opening markets or making them more accessible can be beneficial, but in many cases such as in the case of the Republic of Suriname it requires readjustment which is achieved over time. With that being said, I strongly believe in the multilateral trading system, and I am aware that there is still much work for the Republic of Suriname that needs to be done in order to achieve a better position in this global trading system.

2.48. Trade remains a primary focus and, as such, we have been working on improving our Ease of Doing Business. We have adopted the new law on companies and professions, which makes it much easier to start a business in Suriname. To improve the Ease of Doing Business in Suriname, most notably is that we are working with a Singaporean company to build an Electronic Single window for trade, which is scheduled to launch a phase one working pilot on the 27th of September 2019.

2.49. The Suriname Electronic Single Window (SESW) is a web-based portal that will further be developed into an overall-platform in which with just a click you will be able to find all trade related information, as well as acquire the necessary permits/licenses to engage in the multilateral trading system.

2.50. By implementing a SESW, we are underscoring the importance of trade facilitation arrangements to enhance the transparency and expedite the procedures for the trade in goods.

2.51. Also, as of December 2018, Suriname is a member of the World Customs Organization (WCO).

2.52. With the huge development of the oil and gas industry in our neighbouring country Guyana, we see many opportunities. The region now is of great interest to multinationals, and this year we started the near shore explorations and we are hopeful that we will share the successes of Guyana. Nevertheless, the policy is to focus on the spin off from the oil and gas industries, such as supplying the multinationals and development in tourism. We have started workshops to inform and educate the private sector about the requirements to do business with multinationals. Also, with the standards bureau, we are working on new standards to elevate our private businesses to international standards.

2.53. The Government of Suriname is also committed to further developing Micro, Small and Medium Enterprises (MSME) through several programmes specifically setup for MSM enterprises. Technical support is provided in the form of training, guidance and information on related issues regarding MSME. One of the problems for MSME in Suriname is the access to finance. A guarantee fund for MSM Entrepreneurs has been setup in order for entrepreneurs to have access to loans that were not accessible in the past.

2.54. For example, those start-up businesses who have no collateral in order to secure a loan. With this new approach, we aim at structurally strengthening the MSMEs which are the backbone of our country. Besides strengthening our MSMEs, the Government of Suriname is currently focused on developing policy directed towards converting Suriname into a major food producer and supplier of the Caribbean.

2.55. We started a programme with a loan from the IDB to improve the business climate and innovation for the private sector (SUBCIP) and it has yielded very good results.

2.56. Through a grants programme within SUBCIP, called the innovation for firms Suriname (IFS), we are supporting innovative enterprises to start-up and to grow. The programme has been very successful, and we are in the final and third round of grants and we are looking forward to continue the programme.

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Agriculture

2.57. The strategy is to increase and diversify the export of agricultural products by first increasing the agricultural production in a sustainable way. The effort to achieve this strategic goal is a shared responsibility between the private sector and the Government. The Government of Suriname has decided to create conditions to support the agricultural sector, which are necessary if we want to become a major food provider for the Caribbean.

2.58. Increased horticultural production and sustainable market-access achieved for 1 000 small-scale farmers and improved food safety capacities and standards achieved for private sector and public institutions is the main purpose of the Suriname Agriculture Market Access Project (SAMAP). This is the current focus of the Government directed towards agriculture development. The SAMAP project is aimed at increased, more competitive and safer production of selected crops (in particular and ).

2.59. The components of this project are:

1. Sustainable production and value chain development; 2. Strengthening food safety capacities and standards and their application to the private sector; and 3. Project coordination, management and implementation.

2.60. Alongside SAMAP, the Government of Suriname in cooperation with the UNFAO and UNIDO have set-out another project, namely the Accelerator for Agriculture and Agro-industry Development and Innovation (3ADI+). This is an integrated programme that brings together technical assistance, public finances and private investment through coordination to develop inclusive and sustainable value chains and market systems.

2.61. This programme is being implemented by UNIDO as a pilot in 3 countries, namely Bangladesh, Tanzania and Suriname. The chosen commodity to be strengthened in Suriname is the pineapple. We are also strengthening our and cassava industry with the financial assistance from the European Union.

2.62. The Ministry of Agriculture, Animal Husbandry and Fisheries has developed an agricultural master plan and is currently working on several aspects to achieve its goals set up in the National Development Plan.

2.63. We are working on a new legislation for the creation of a National Food Safety Agency. This will ensure that all products produced comply to national and international food safety standards. With the new SPS measures of the EU, our exporters have suffered much losses and we need a National Food Safety Agency to ensure that we have the tools and that we create policy to adhere to international standards.

2.64. Suriname is also seeking to expand its livestock. We are seeking technical assistance in sustainable livestock production. Also, in setting up innovative animal housing and husbandry systems. We are currently restructuring policies to move towards a sustainable fisheries regime.

Mining

2.65. Although we want to diversify our economy, the main income remains from our mining and oil and gas industries.

2.66. In 2017, Suriname joined the Extractive Industries Transparency Initiative (EITI) to improve transparency in order to attract FDI.

2.67. We recently discovered large deposits of diamonds in Suriname, that were smuggled out of the country. This year, we passed the Law on the Kimberley Process Certificate scheme of the World Diamond Council Association, which paved the way for Suriname to develop a diamond industry.

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Tourism

2.68. Tourism has been identified as one of the most important industries to diversify our economy.

2.69. Suriname has been declared the most forested country in the world by the due to its 93% forest coverage, and is a nature haven for seekers of peace and quiet. Our country is part of the Amazon rainforest which is of great importance to the world.

2.70. We have presented the National Strategic Tourism Plan in 2017 and we are working with Israel to develop a tourism masterplan by the end of this year. Also, we are working with private sector clusters to develop more tourism products and tourism facilities.

2.71. The two main pillars of the tourism product of Suriname are its pristine nature and its diverse culture. The nature pillar for ecotourism is obvious. Concerning the cultural pillar, we have a multicultural society which we are very proud of. If you just look at our delegation, you will see our diverse society reflected. Indigenous and Marroon tribes in the interior, Jewish society, Muslim and Hindu, Chinese, Javanese are just some of the groups that live in harmony with each other.

2.72. Please allow me to present to you a short promotional video of destination Suriname. And I hereby proudly and warmly welcome you to come to Suriname as your next tourism-destination.

2.73. Thank you and we hope to see you on Friday where we will be hosting a small tasting with Surinamese snacks and drinks.

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3 STATEMENT BY THE DISCUSSANT

Introduction

3.1. I wish to welcome the Head of delegation of Suriname, Mr. Stephen Tsang, Minister of Trade, Industry and Tourism, and his team. At the same time, I would like to express my appreciation to the Government of Suriname and to the WTO Secretariat for the prepared Reports. I have volunteered with pleasure to serve as discussant. For me, a European, this is an exotic South American country, 93% covered by tropical rainforest and three times bigger than Slovakia but with only 10% of the amount of citizens of my own country. It was for a simple reason: it was an excellent opportunity to study in more detail not only the economic and trade performance of Suriname, but also to learn more about the history, the citizens, the political system, the culture and other information to fill completely the mosaic, which may help me understand better Suriname.

General summary on economic and trade

3.2. Now, before I touch upon more specific topics suggested for more detailed discussion, let me mention briefly the basic features of Suriname's economy, changes from the last Review, and the latest developments in macroeconomic figures.

3.3. Suriname is defined as a small economy with a low level of diversification of industrial enterprises. The share of manufacturing industry in GDP creation represents 15%, mining 6.5%, agriculture 9%, fisheries 3.6%, and services 54%. As far as trade is concerned, currently the main export commodities are gold and fuel, 80%-90%, and the rest is agriculture products such as , , and fish. and aluminium, the most important export goods in 2006, are no longer produced, due to the closure of the main mine in 2016.

3.4. The most important trade destinations in exports are Switzerland; , China; and the European Union.

3.5. Suriname's imports are dominated by machinery, mineral fuels, and prepared foodstuffs. The United States, the European Union, and Trinidad and Tobago are Suriname's most important sources of imports.

3.6. As per the Report, since its last Trade Policy Review in 2013, Suriname's economic performance has been highly volatile, with annual GDP growth rates fluctuating between -5.6% and +2.9%. Per capita GDP is now about USD 6,500, down from USD 8,800 in 2012. A slow recovery of the economy is underway, with an expected GDP growth rate of 2% in 2019.

3.7. Inflation peaked in late 2016 at about 60% but fell to 6% in 2018. Public debt levels increased significantly, from 32% of GDP in 2013 to some 80% in 2018.

3.8. Merchandise exports and imports both fell significantly during the period under review. Total merchandise exports declined 50% from USD 2.4 billion in 2012 to slightly over USD 1.2 billion in 2016, before rebounding to USD 1.4 billion in 2017. Merchandise imports peaked in 2013 at USD 2.3 billion but fell also approximately 50% to about USD 1.2 billion in 2016 and 2017. Trade figures for 2018 are not available.

3.9. Services is the main economic activity in Suriname, and consistently constituted around 55% of GDP in the period 2012-17. Around two thirds of the workforce is employed in various services sectors, with wholesale and retail trade as the most dominant one. In recent years, hotels and restaurants and other tourism-related services showed considerable growth.

3.10. Suriname's commercial banking sector was not subject to much change over the last six years. There are still nine active banks, of which three are wholly owned by the State. Of the other six, one is majority-owned by the State, and another has a 10% state ownership. In November 2018, the IMF concluded its Article IV Consultation with Suriname, noting its relatively good financial soundness indicator. As per the report, Suriname's is not independent.

3.11. The number of participants and the size of Suriname's insurance market remained stable since the last Review. Twelve companies are still active.

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3.12. The legislative framework on telecommunications services remained unchanged since the previous Review. A new Telecom Law extends coverage to mobile, text and data services. The process is expected to be finalized in 2019.

3.13. Suriname's main port has been facing continuous challenges over the past six years. The most immediate challenge remains the enlargement of the Suriname River and the subsequent increased accessibility for larger Panamax ships and oil tankers. Suriname has major plans to further expand its port capacities, to the region as a hub.

3.14. Under the GATS, Suriname scheduled commitments in several telecommunications, air transport, and tourism and travel services.

3.15. Suriname's current account deficit increased strongly between 2013 and 2015, when it decreased to 16.2% of GDP. It fell in 2016 and 2017, mainly due to sharply falling imports, improved terms of trade, and recovering exports, but increased again during the first three quarters of 2018. Suriname's gross international reserves fell from USD 775 million in 2013 to USD 330 million in 2015, before increasing again to USD 581 million in 2018.

3.16. State ownership remains important in many sectors of the economy. Partially or fully state-owned entities are important in oil, banking, agriculture, energy and utilities, transportation, and tourism. Progress on has been slow. Except for the privatization of Suriname's company, no other took place during the period under review.

3.17. Suriname is a member of CARICOM, enjoys preferential agreement with EU-CARIFORUM (EPA), and gets improved market access with MERCOSUR.

Legislative framework and trade policy regime

3.18. Suriname's institutional environment remains unchanged since the last Review. It is characterized by a strong backlog in adopting important trade-related laws. Crucial legislation on topics such as customs, foreign investment, mining, trade facilitation, value-added taxes, competition, standards, and intellectual property has been pending, often for more than ten years. In practice, a relatively large discretionary decision power and the practice of "ad hocism" have led to low predictability of the trade regime, concerns about governance issues, and high costs of doing business.

3.19. On the positive side, it is worth mentioning that, to modernize and facilitate government communication, coordination and information exchange, several e-government projects were initiated in recent years.

3.20. Since 2015, ASYCUDA World has been applied for customs clearance. Some 50% of consignments are physically inspected. Suriname joined the World Customs Organization in November 2018. Its legislation on customs valuation is based on the WTO's Customs Valuation Agreement. Suriname has not yet ratified the Trade Facilitation Agreement (TFA), but it submitted its Category A commitments under the TFA in November 2015. It has also established a National Trade Facilitation Committee.

3.21. Suriname does not have a generic competition law. A competition law and a consumer protection law have been under preparation for many years, but no date for enactment is foreseen. There is no stand-alone law on procurement, and present rules allow for numerous alternatives and flexibilities. A draft Intellectual Property Rights Bill has been pending for several years.

3.22. Despite a relatively well-defined and clear legislative procedure, there is a backlog regarding many important trade-related laws, and the adoption has been pending for a long time. I am glad to hear that some of them have been approved and some of them are in the pipeline. So, I hope this positive message will continue.

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Topics for discussion

1. Diversification in the economy

3.23. The Government intends to seek out, or support through capacity-building, companies that will use local inputs for export or international products compensate for the use of local inputs instead of imported ones; improve the production capacity and quality of local producers; give infrastructure incentives; and modernize the system of intellectual property rights.

3.24. Aside from clusters in the traditional economic and wealth-creating sectors, such as mining, agriculture and forestry, many new ones have been earmarked for capacity development and support - palm-oil, coconut, cassava and cocoa production; pineapple production; aquaculture, in particular fish and ; tourism and creative industries, to mention some of them.

3.25. What concrete steps have been undertaken by the Government to reach these ambitious plans?

3.26. Foreign investment, particularly in the mining sector, plays an important role in Suriname's capital formation. Annual inflows exceeded USD 300 million in 2016, but fell in 2017.

3.27. Suriname continues to support and encourage foreign investment, to help diversify its economy, with a relatively open investment regime. To facilitate investors' understanding of Suriname's laws, procedures, regulations and reporting requirements, the Investment Law foresaw the establishment of InvestSur. However, instead, the Government created the Investment and Development Corporation of Suriname (IDCS) in April 2012. This institution sought investment to support Suriname's sustainable and long-term economic development by acting as a "one-stop shop" for investors. It also recommended specific sectors, such as agriculture, mining, fishery, renewable energy, construction, and services, to potential investors. Specifically, it tried to attract investors through the privatization of many of Suriname's state-owned companies, and the creation of joint ventures.

3.28. The IDCS, however, ceased to exist in 2018, and was replaced by InvestSur, the investment agency originally foreseen in the Investment Law. InvestSur was officially launched in November 2018.

3.29. Clarification on the operation of the IDCS and/or InvestSur as an important institution for the support of general development ambitions contained in the five-year development plans would be useful.

2. Legislative framework - adoption and implementation of laws

3.30. As per the Report, many important trade-related laws and their adoption have been pending, sometimes for more than ten years. Crucial legislation on topics such as customs procedures, foreign investment, trade facilitation, VAT, competition, standards, intellectual property rights, and consumer protection is at various stages of development but fails to be agreed upon and adopted. This also has been clarified by the Minister.

3.31. More detailed updated information on a broad spectrum of laws important for the improvement of Suriname's legislative framework would be appreciated.

3.32. About 30% of Suriname's tariff in the HS2007 classification is bound. Applied rates in 2019 exceeded bound rates for 597 tariff lines, or 9.5% of Suriname's tariff. The application of tariffs above the bound rate is subject to a request for negotiations under Article XXVIII.

3.33. What is the intention of the Government to consolidate this problem? I got written answers from you today. I quickly went through them, and I think that the solution is also underway by Suriname.

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3. Realization of the five-year operational plans

3.34. Suriname's economy faces fiscal, monetary, and structural vulnerabilities and challenges. Poor infrastructure, heavy dependence on the mineral sector, burdensome procedures, a large backlog in adopting crucial legislation, and a lack of economies of scale, contribute to the high cost of doing business and a relatively undiversified economy. The World Bank's Doing Business list currently ranks it 165th out of 190 economies, so no real change compared to 2013.

3.35. Overall economic and trade policy objectives are laid down in five-year development plans. The key objectives include the diversification of the economy, an improvement of the business climate, and increased participation in international and regional markets.

3.36. In the operational plans for the period 2017–21, part of Suriname's trade policy objectives is clearly taking a new direction, moving away from controlling its market to establishing the conditions to benefit more from trade, and to make the market more efficient, accessible and predictable for local, regional and international traders and investors.

3.37. How successful are, and to what extent will the Government fulfil, the above-mentioned objectives in the context of problems just mentioned? What strategy and updated priorities have been undertaken in the institutional and legislative framework, and the implementation of goals, as well?

3.38. Finally, I wish Suriname a fruitful and smooth Review, with preferably positive future-looking conclusions.

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4 STATEMENTS BY MEMBERS

PERU

4.1. Peru wishes to express its solidarity with the people and Government of the Bahamas, and to convey deep condolences on the destruction and loss of life suffered by the Bahamas during the recent passage of hurricane Dorian.

4.2. Peru notes with satisfaction the measures taken by Suriname to diversify and stabilize its economy, to promote international trade and to boost foreign direct investment. Among these positive developments, we would like to highlight the upcoming implementation of a single window for trade, the establishment of an investment agency and the negotiation of economic integration agreements, both within the region and with partners outside the .

4.3. We also welcome the steps taken by Suriname for the development of agriculture and the food industry, placing emphasis on the sustainability of production. As regards the fisheries sector, we should also point out the importance attributed to the preservation of the biological diversity of marine resources, and to their sustainable exploitation, through the negotiation of disciplines on fisheries subsidies, which is also of great interest to Peru. In the area of tourism, the plans for transforming eco-tourism into a sustainable industry for the coming 20-30 years are also worthy of note. These policies, coupled with the commitment of the Government of Suriname to protect 93% of its tropical rainforest, reflect the country's awareness of the importance of sustainable development as a crucial component of economic development. In light of this priority, and within the framework of the current review, the delegation of Peru has submitted a question regarding the management of forestry resources, and wishes to thank Suriname in advance for its response.

4.4. As a WTO member, Peru believes that strengthening the multilateral trading system is essential for sustained economic development and the stability of international trade. In this regard, we agree with the questions raised by other Members concerning the tariffs applied by Suriname in excess of bound levels, and the importance of binding unbound tariff lines in order to promote trade predictability. We would also like to emphasize the obligation to comply with the notification requirements provided for in the various agreements upon which this Organization is based. To this end, it is important for Suriname to make firm plans to establish a diplomatic Mission in Geneva.

4.5. At the bilateral level, there is a rising trend in our total annual trade, due largely to an increase in Peruvian chemical and textile exports to Suriname. In future, we expect to identify additional potential export and import sectors that will further consolidate this relationship for our mutual benefit.

4.6. With these comments, and on behalf of the Peruvian delegation, I would like to wish Suriname every success in its third trade policy review.

CANADA

4.7. The economy of Suriname was greatly impacted in the last few years by the reduction of commodity prices and the termination of alumina production. We recognize the challenge of managing fiscal and current account deficits in this context.

4.8. During the period in review, Canada maintained a significant investment presence in Suriname's mining sector, which continues to dominate Suriname exports and greatly contributes to its economy. The Canadian company IAMGOLD has developed Suriname's largest gold mine. Canada was pleased by the announced expansion of a second mine in 2017 following a significant gold discovery at Saramacca. This will extend IAMGOLD's mining operations in Suriname for another 30 years, providing stable, long-term support for Suriname's economic development.

4.9. Indeed, the Government of Suriname appears to recognize the importance of implementing policies that promote trade, growth and development. I would like to highlight two such areas.

4.10. First, we applaud Suriname's efforts to facilitate the registration of new businesses, which should continue to improve Suriname's investment framework.

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4.11. Second, we are encouraged by the announced implementation of Suriname's Electronic Single Window for processing documentation related to the import, export and transit of goods. This will reduce the time required to obtain an export or import license, and will help facilitate business and trade.

4.12. While there has been good progress during the review period, we note that there are still areas where further improvements would contribute to Suriname's trade and economic performance. Let me outline a few.

4.13. First, Canada encourages Suriname to ratify the Trade Facilitation Agreement and submit the required notifications as soon as possible. This would expedite the movement of goods across borders, improve the transparency and predictability of trade, and reduce costs.

4.14. Second, Canada would strongly encourage Suriname to join the Joint Statement Initiatives, including the Structured Discussion on Investment Facilitation for Development. This Discussion aims to improve transparency and predictability of investment measures; streamline administrative procedures and requirements; and enhance international cooperation and stakeholder relationships. Working through these issues may help Suriname fulfil its Vision 2035 and InvestSur objectives.

4.15. Third, and in order to thrive, the private sector needs transparency and predictability regarding labour mobility. Accordingly, Canada encourages Suriname to ensure that its labour mobility framework provides the certainty necessary for the private sector in order to help attract business and investment.

4.16. Finally, Canada notes that Suriname has taken steps to improve its government procurement regime via the 2015 amended Accounting Law. At the same time, we believe that the country's procurement framework would benefit from further strengthening. Therefore, Canada suggests that Suriname continue its efforts to align its domestic procurement regime with international standards. In that regard, Suriname may wish to consider becoming an observer to the WTO Agreement on Government Procurement.

4.17. We thank Suriname for its responses to our advance questions and look forward to a constructive exchange of views.

COLOMBIA

4.18. I would like to begin by highlighting the great challenges Suriname is currently facing. As mentioned in the report by the Secretariat, Suriname is the smallest sovereign State in South America, and 93% of its surface area is covered by tropical rainforest. Most of its rather small population live in the coastal area, making it one of the least densely-populated countries in the world, a feature which has created setbacks in its productive and transport infrastructure.

4.19. Taking these factors into consideration, Suriname maintains an open economy with largely positive results. Nonetheless, perhaps the main challenge to the country's economy is the concentration of its exportable supply in primary products, which makes Suriname extremely sensitive to fluctuations on the international market. This was evident between 2015 and 2016 when the economy suffered a sharp slowdown, largely due to the closure of mines producing its two main exports, bauxite and aluminium.

4.20. At the moment, gold and mineral fuels are Suriname's main exports, and together amount to more than 80% of exported goods. Their leading destinations are Switzerland; the European Union; and Hong Kong, China, with only a few exports to CARICOM, and practically none to the countries of South America. As shown in the Secretariat report, the current export structure, which is experiencing stagnation in absolute values, is set to create serious economic repercussions for the country.

4.21. There is very little trade between Colombia and Suriname, totalling slightly under USD 5 million in 2018. Colombian exports, comprising 57% agricultural products and 43% industrial goods, amounted to USD 4.8 million. Colombia's imports from Suriname were far fewer, amounting to only USD 75,000. However, we must point out that most of these imports were industrial goods (57% of the total amount): mainly animal feed preparations, crankshafts and cranks, tractor parts

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- 17 - and centrifuges. This is even more the case this year: by June 2019, 100% of exports from Suriname to Colombia were industrial products.

4.22. We wish to take this opportunity to launch an appeal to the distinguished delegation of Suriname: given the clear economic complementarity between our countries, it is important to explore the possibility of forging stronger and improved strategic trading alliances that will surely reap tremendous benefits for both parties.

4.23. Other subjects in the policy review that merit attention are the importance of the agricultural and service sectors to the Surinamese economy. In 2017, they accounted for 9% and 55% of GDP, respectively. These two sectors are also the country's chief employers and together they account for approximately 77% of total employment, with services engaging two-thirds of the entire active workforce. Despite the importance of these two sectors, in both agriculture and services, Suriname reported a trade balance deficit in 2017.

4.24. Agricultural exports are limited to a few products, chief among them, bananas, which represent more than half of these exports; rice; and to a lesser extent, vegetables. The main destination for banana and exports is the European Union, and in the case of rice, and Brazil.

4.25. In terms of trade in services, the dominant subsectors are wholesale and retail trade. In recent years, the most tradable services, particularly in the tourism sector (hotels, restaurants, etc.), experienced a tremendous increase. Between 2012 and 2016, the annual number of tourists grew constantly, rising from 240,000 in 2012, to 257,000 in 2016. The origin of tourists has remained constant over the past ten years, with more than half coming from Europe (mainly from the ), and the remainder from South America and the Caribbean.

4.26. Suriname is an important WTO Member. The country was a GATT contracting party and a founding Member of the Organization. It has taken limited, yet effective, action within the WTO, grants at least MFN treatment to all Members, and has never been called before a panel. It has not yet ratified the Trade Facilitation Agreement, nor has it accepted the amendment to the TRIPS Agreement, two processes that we hope will be concluded satisfactorily.

4.27. Suriname's report presents a rather promising overview. The Government is striving to undertake meaningful changes to diversify and strengthen economic productivity through the measures foreseen under the latest development plan, "Nationaal Ontwikkelingsplan 2017-2021". It is also establishing an investment agency, "InvestSur", and has been working with the World Bank to update its investment policy framework. One area of particular interest to Colombia is the design of a trade defence policy, and we look forward to receiving further information on this process.

4.28. During its second trade policy review in 2013, all Members highlighted the manner in which Suriname had overcome the international financial crisis through its orthodox monetary policies, and without resorting to protectionist measures. We are sure it will confront the current challenges in the same spirit.

4.29. In conclusion, we wish Suriname every success in its trade policy review and we urge its representatives to strengthen the country's presence at the WTO, so as to ensure a multilateral trading system that works in a better, more inclusive fashion.

EUROPEAN UNION

4.30. The EU welcomes this opportunity to discuss such developments. Indeed, the Trade Policy Review Mechanism is especially important for countries like Suriname, where foreign trade represents 130% of the GDP.

4.31. As noted by Minister Tsang, Suriname shows signs of recovery from the recent economic crisis, when the worldwide drop in international commodity prices in 2015 and the cessation of alumina mining in the country significantly reduced government revenue during the past few years. Suriname's GDP grew 2% in 2018 and is expected to grow further in 2019 and 2020. Inflation has declined significantly; also, unemployment declined, and increased gold production helped lift exports.

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4.32. Of course, many challenges remain for Suriname's Government to keep the country on a path of sustained and inclusive growth. A lot will depend on Suriname's commitment to responsible monetary and fiscal policies and on the introduction of structural reforms to liberalize markets and promote competition. It is clear that Suriname has potentials and opportunities for increased production and export and a free and sustainable trade is part of the solution.

4.33. As noted by the discussant, the services sector is the main economic activity in Suriname, contributing consistently to around 55% of GDP in the period 2012-2017. Reforms in the regulatory framework and legislation will lead to improve growth for the services sector.

4.34. Agriculture is also an important economic sector in Suriname, providing employment and income to around 17% of the economically active population. Minister Tsang referred to the importance of diversification in the Surinamese economy. Agriculture is precisely one of the sectors to invest in to diversify. In this context, it is worth noting, that the 11th EDF National Indicative Programme (NIP) for the period 2014-2020 (EUR 13.8 million) has identified sustainable agriculture as the priority sector. The agricultural programme aims to achieve an increased, more competitive and safer production of selected crops, through an enabling environment and enhanced capacities of the private sector and institutions.

4.35. The bilateral relationship between Suriname and the EU is important. Over the years, together with its Member States, the EU has become a major political and economic partner of Suriname.

4.36. The EU-CARIFORUM Economic Partnership Agreement (EPA) remains the cornerstone of our relationship. The EPA is provisionally in force since 2008. Suriname has not yet ratified the EPA and a national congress, held in 2018 in order to review the impact of the EPA, showed that the business community requires more research and analysis. The EU looks forward to that and the ratification of the EPA.

4.37. The EPA ensures duty and quota free access to the European markets. Almost 25% of Surinamese export products, including aluminium, gold, oil, rice, fruit and vegetables, shrimp and fish go to the EU market. The EPA is crucial for the export of agricultural products and opening a potential for further product diversification as well as for a deeper regional integration process. It also facilitates access to assistance for private sector development under the 11th EDF for an effective implementation of the EPA and capacity building.

4.38. Further, the EU has recently conducted a very successful Political Dialogue with Suriname led by Minister of Foreign Affairs, HE Mrs. Yldiz Pollack-Beighle under article 8 of the ACP-Cotonou Agreement in Paramaribo. The EU is now also engaged in the promotion of European business interests conducive to Foreign Direct Investment in Suriname.

4.39. The EU is indeed an important investment partner for Suriname. As FDI flows are important to Suriname because they can attract greater investment opportunities, updating the current investment law can indeed encourage greater transparency and sustainability for investments

4.40. The EU in its questions has raised several issues, inter alia regarding competition policy, agriculture, services and customs and we thank Suriname for providing the replies, which we are examining carefully. We appreciate Suriname's commitment and on-going efforts to facilitate trade and investment and we are hopeful that it will address any concerns we may have in this regard.

4.41. On behalf of the European Union, I wish Suriname a very successful review.

UNITED STATES

4.42. We recognize that Suriname does not maintain a Permanent Mission in Geneva and therefore wish to start this Trade Policy Review by commending Suriname's willingness to engage with the Secretariat and Members by participating today.

4.43. As noted in the Secretariat's report, the last six years for Suriname's economy have been characterized by significant volatility, with annual GDP growth rates fluctuating between -5.6% and + 2.9%. In spite of this turbulence during the period of review, the United States recognizes Suriname's continued efforts to integrate into the world economy.

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4.44. As a member of the and Common Market (CARICOM) since 1995, Suriname has pursued trade policies in line with CARICOM on matters of economic integration, cooperation, and the coordination of positions in trade negotiations. However, since the last TPR in 2013, the Secretariat reports there have been few changes in Suriname's institutional environment. The United States wishes to highlight the importance of adopting important trade related legislation on topics such as customs, foreign investment, mining, trade facilitation, value-added taxes, competition, standards, and intellectual property. We believe implementation of modern laws CARICOM supports and ratification of WTO treaties, such as the WTO Trade Facilitation Agreement (TFA), are important steps to increase trade within CARICOM, the United States and other trading partners.

4.45. We note there are additional areas that would benefit Suriname's integration into global markets. Suriname's 2018 proposal to the WTO to adjust its WTO bound rates is a concern to the United States as a principal or substantial supplier for many of the products identified in the proposal. While this was not mentioned in the Secretariat report of the Government report for this review, we would like clarification of its tariff rates.

4.46. The United States views intellectual property (IP) as an important tool to foster creative industries, promote entrepreneurship and fuel economic growth. As such, the United States is interested to know more about the draft bill on intellectual property that has been pending for several years. The Secretariat report indicates that although Suriname is a member of various IP-related agreements, implementation is lagging. We had specific questions on the geographical indications (GI) provisions in the draft IP bill, whether the copyright obligations in the Berne Convention were implemented, and the types of protections and enforcement provisions that the draft bill would provide for copyright and trademark violations.

4.47. The United States appreciates the opportunity to engage in this dialogue and looks forward to continued work with Suriname both bilaterally and within the WTO to facilitate trade and investment between our two countries.

BRAZIL

4.48. Let me first congratulate our neighbouring country for its commitment to the WTO and to this exercise, which can be more demanding for non-resident Members. Brazil takes positive note of the resumption of the Suriname's economic growth and the increase of its exports since 2016.

4.49. In 2018, Brazil was Suriname's fifth largest exporter: bilateral trade reached USD 35,5 million last year, consisting of USD 33,4 million in Brazilian exports and USD 1,1 million in imports. In bilateral trade, rice is the main product exported by Suriname (95% of the overall exports), whereas manufactured goods accounted for 90% of the Brazilian exports, mainly Mechanical and electrical machines as well as processed meat.

4.50. Bilateral trade flows have much room for expansion. The lack of proper infrastructure connecting both countries, such as roads and regular ship service lines, hinders our trade flows. In addition, as a member of CARICOM, Suriname's common external tariff remains quite high: while the average bound and applied tariff are 18.3% and respectively, in the agricultural sector they reach 19.8%% and 19.5%. Tariff peaks are also applied (7.3% of all tariff lines), resulting in import barriers.

4.51. According to the Secretariat report, there have been no fundamental changes in Suriname's trade policies since the last Trade Policy Review in 2013. One the one hand, that's positive since it signals stability and predictability, on the other hand, it shows there is some homework to do in terms of tariff reduction.

4.52. Brazil and Suriname are committed to strengthening their economic relations and cooperation. Suriname has been an associate member of MERCOSUR since 2013 and hope to deepen this fruitful partnership going forward. Last year, Brazil and Suriname signed a bilateral Cooperation and Facilitation Investment Agreement, which will help to boost foreign direct investments in both countries.

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4.53. Brazil continues to follow with interest domestic developments in Suriname's trade policy. We have submitted some questions and wait for the answers.

4.54. Let me conclude by wishing our neighbours a very successful Trade Policy Review.

ARGENTINA

4.55. Argentina observes with great interest that, following a period of fluctuating economic performance, the economy of Suriname has slowly begun to recover and is expected to grow by 2% in 2019.

4.56. In terms of bilateral engagements, Argentina is pleased by the signing of the Strategic Partnership Framework Agreement between Suriname and MERCOSUR in June 2013, and we furthermore welcome the fact that Suriname has been granted the status of associate member in MERCOSUR. Argentina currently exports motor vehicles and sunflower oil, among other things, to Suriname, and we hope to further increase trade between our countries.

4.57. As regards trade facilitation, it is worth drawing attention to the fact that Suriname formalized its accession to the World Customs Organization (WCO) in November 2018. Moreover, in the same vein, although it has not yet ratified the Trade Facilitation Agreement, Suriname has notified its Category A commitments, and has established a National Trade Facilitation Committee.

4.58. During this trade policy review, Argentina has commented on public sanitary and phytosanitary control bodies. More specifically, we have consulted Suriname about the sanitary requirements to be fulfilled in order to gain access to the market, and we wish to thank the Surinamese authorities in advance for their due consideration of this matter.

4.59. In reiterating our appreciation of this renewed opportunity to exchange comments on the trade policy of Suriname, we would like to once again draw attention to the relevance of this exercise, in all its aspects, and to wish the Surinamese authorities a successful conclusion of this review.

ICELAND

4.60. Since the last review in 2013, Suriname experience economic downturn in 2015 and 2016 but the economy is now showing signs of recovery, with an expected GDP growth rate of 2% in 2019. Iceland welcomes the various initiatives that Suriname has undertaken aiming at more diversification of the economy, an improvement of the business climate, as well as increased participation in international and regional markets.

4.61. On the occasion of the 11th in Buenos Aires last December, more than 120 WTO Members and Observers launched a joint declaration on women and economic empowerment that aims at, inter alia, sharing best practices and working together here at the WTO to remove barriers for women's economic empowerment and increase their participation in trade. This declaration is the fruit of the Trade Impact Working Group that was established under the auspices of the International Gender Champions–Geneva, that Iceland is co-chairing with Sierra Leone and the ITC.

4.62. The trade policy review provides an excellent opportunity to share best practices in this field. Iceland submitted advance written questions on the participation of women in the economy of Suriname. We wish to thank Suriname for the responses to our written questions. We will review the answers thoroughly and request clarifications as necessary during the course of this TPR. The answers are very useful as we implement the joint declaration on trade and women's economic empowerment and gather best practices.

4.63. Iceland appreciates Suriname's active engagement in WTO and their continued support for the multilateral trading system. We wish the delegation of Suriname every success for their third Trade Policy Review.

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CHINA

4.64. In the review period, the Suriname's economic performance has been volatile. However, we are impressed by the efforts of Suriname to make its economy more competitive and stable, and pleased to see that Suriname's economy is rebounding from 2018, with an expected GDP growth rate of 2% in 2019. We congratulate for its achievement in trade facilitation, especially the implementation of The Suriname Electronic Single Window (SESW) in this month, and encourage Suriname to implement the development plan for 2017-2021, and continue to take appropriate economic measures to achieve development goals of accelerating growth while safeguarding stability.

4.65. Multilaterally, we are pleased to see that Suriname grants at least MFN treatment to all its trading partners, and submitted three notifications during the review period, especially notified the Preparatory Committee on Trade Facilitation of Suriname's Category A commitment. As Suriname is an original member of the WTO, and looking into the possibilities to open a mission in Geneva, we look forward to Suriname's more active participation in the WTO-related activities to uphold the fundamental principles of this Organization, support each other on multilateral international arenas and collectively safeguard the rule-based multilateral trading system.

4.66. The Secretariat report describes that Suriname's institutional environment is characterized by a strong backlog in adopting important trade-related laws. In this regard we wish to encourage Suriname to improve investment laws and regulations, the visa convenience and residence permission to establish a more attractive environment for business and investment.

4.67. Bilaterally, China values and has been enjoying close and friendly relation with Suriname ever since the establishment of diplomatic ties in 1976. Especially during the period under review, even Suriname's exports and imports has had a difficult time, the economic and trade cooperation between the two countries has been developing fast and smoothly. Two-way trade rose very quickly, contracting and labour service cooperation was well under way. In 2017 and 2018, the total amount of the bilateral trade reached USD 204 million and USD 268 million, which increased by 23% and 31% continuously. Especially in 2018, China was Suriname's fourth largest source of imports, and the export from Suriname to China was more than doubled. China and Suriname are having a broad cooperation, such as the successful infrastructure construction projects of the international airport, low-cost housing projects, and successful technical cooperation. China and Suriname signed the Belt and Road Initiative construction MOU last year, and we are willing to align the Belt and Road Initiative with the development strategies of Suriname to enhance cooperation and communication. We believe such cooperation will not only benefit the two countries but also boost the economic growth in the region.

4.68. To conclude, I wish Suriname's delegation every success in the third review.

INDONESIA

4.69. This TPR has provided a forum for Indonesia to understand further on how Suriname administers international trade, and on how Suriname can benefit from WTO consistent trade tools in managing international trade.

4.70. This TPR is also an important platform for Indonesia to explore further avenues in improving our bilateral trade relation with Suriname. By the numbers, bilateral trade activities between Indonesia and Suriname have been declining.

4.71. Between the year 2014 up to 2018, this declining trend in bilateral trade demonstrated an average yearly pace of -2.42%. This fact is further confirmed by the declining trend of Indonesian export to Suriname, which recorded an average yearly pace of -3.54%.

4.72. Indonesia is of the view that there are rooms for improvement in our bilateral trade. We view that our discussions leading up to this TPR meeting has provided insights into this joint effort for trade improvement.

4.73. Indonesia believes that in order to attain the main objectives to Suriname's trade policy, which include an improvement of the business climate and increased participation in international and

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- 22 - regional markets, there needs to be in place a greater degree of transparency in the rules and regulations on trade and related investment being adopted and enforced.

4.74. This will ensure the presence of a business environment with minimal discretionary decision- making habits, in which businesses can conduct trade routines with a higher degree of predictability – and most definitely at a lower cost of doing business.

4.75. We have forwarded our inquiries, related to the above concerns, in written questions that we have submitted.

4.76. We, in this regard, wish to express our deep appreciation to the delegation of Suriname for the responses we have received, to our advanced written questions, amongst others:

• on the strategy to address the lack of transparency in business and investment approval processes, bearing in mind that the promotion of a more business and investment-friendly economy requires that the government of Suriname take definitive steps to legislate and regulate its business and investment approval procedures; • on efforts to increase the level of efficiency and effectiveness of border risk assessment procedure on imported goods; • on the division of roles, between the private sector and the government, to provide a favourable conditions towards converting Suriname's food production sector into a major food producer and supplier of the Caribbean; and • on the types of Government support being provided as part of the policy towards making Suriname a food production hub.

4.77. Further, last but not least, we look forward to Suriname's response to our question on the progress of the revision process to the 2001 Investment Law. Hence, we also wish to get more information on how and the effectiveness of effort of the InvestSur investment agency to cope with various challenges, such as in minimizing the risk of corruption and favouritism.

4.78. Let me conclude by wishing the delegation of Suriname a successful process in the remaining phase of this TPR.

SINGAPORE

4.79. Allow me to highlight three points. First, Singapore welcomes Suriname's efforts to diversify and modernize its economy. As a fellow small country, Singapore understands the challenges faced by Suriname, including a high degree of dependency on a narrow base of goods and services that can be exported to finance development. Hence, one way that small countries like Suriname and Singapore have undertaken to overcome the limitations of size is to leverage on regional economic integration. In this context, we are heartened that Suriname has taken steps to participate in the CARICOM Single Market and Economy, which will help to integrate its economy regionally. Another positive step that Suriname has undertaken is to strengthen support for entrepreneurship and MSMEs as key drivers of economic growth and sources of employment. In addition, we are pleased that Suriname is collaborating with a Singapore company to implement the Suriname Electronic Single Window from September 2019, this will go a long way towards enhance transparency and predictability in its export and import processes, which in turn will stimulate trade and investment.

4.80. Second, Singapore welcomes Suriname's intention, as expressed in its Government report, to consider establishing a Permanent Mission in Geneva. This will be an important step as it will greatly enhance Suriname's ability to broaden and deepen its contributions to the WTO. We also look forward to Suriname's ratification of the Trade Facilitation Agreement and hope that Suriname can consider accepting the amendment to the TRIPS Agreement, as well as participating in the Information Technology Agreements. We encourage Suriname to fulfil its notification obligations, and to avail itself of the technical assistance offered by the Secretariat to enhance its capacity. The WTO's monitoring function is a crucial aspect of the Organization, and Members' timely and complete notifications contribute to the predictability and transparency of the rules-based multilateral trading system.

4.81. Third, Singapore looks forward to expanding bilateral trade with Suriname. Although bilateral trade in goods between Singapore and Suriname is currently small, there is potential for growth. In

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- 23 - particular, we note from the Secretariat's report that Singapore ranked as Suriname's No. 2 trading partner in Asia in 2017 in terms of merchandise exports from Suriname. Singapore also accounted for 22% of Suriname's forestry exports. Both sides should continue to identify new areas to broaden and deepen our bilateral ties.

4.82. In this context, we welcome the recent visit of Minister Tsang and his colleague Minister of Foreign Affairs, Yldiz Pollack-Beighle, to Singapore last month. Besides attending the Signing Ceremony of the Singapore Convention on Mediation, the Ministers held fruitful discussions on ways to grow our bilateral relationship, including by facilitating greater business and tourism exchanges. Both sides also discussed the common challenges and interests of small states, including how to combat climate change.

4.83. Singapore looks forward to continuing our cooperation with Suriname and collaborating in new areas such as ICT and e-government initiatives. We wish Suriname every success for this TPR.

TRINIDAD AND TOBAGO

4.84. Trinidad and Tobago notes the commitment of the Suriname to the CARICOM Single Market and Economy as well as its efforts to strengthen its trade partnerships in the region. According to the Secretariat's report, Trinidad and Tobago is an important source for imports for Suriname. This country's exports to the latter in 2017 were reported to have constituted 2.6% of Suriname's total exports. Like Suriname, this country has also signed the CARICOM Multilateral Air Services Agreement.

4.85. We also recognize the commitment to achieving objectives relating to the diversification of the economy and the provision of the required capacity development and support in this regard. Efforts towards improving the business climate to stimulate entrepreneurship are also noteworthy.

4.86. We commend Suriname on the finalization and implementation of its Electronic Single Window (ESW). Trinidad and Tobago recognizes the economic setbacks faced by Suriname as a developing country and applauds the efforts made towards streamlining import, export and transit procedures, and the fulfilment of its commitments under the WTO Agreement on Trade Facilitation (TFA).

4.87. Given that the SESW is expected to be implemented in September 2019, Trinidad and Tobago would wish to enquire about any best practices or lessons learned that Suriname may wish to share from achieving this major milestone towards creating a more facilitative trade and business climate.

4.88. Trinidad and Tobago is aware that designing and implementing a risk management system is a robust undertaking, especially for developing WTO Members such as Suriname. In light of this, Trinidad and Tobago would wish to encourage Suriname to continue to seek out donor funding for large projects under the TFA such as a risk management system.

4.89. In the above regard, we wish to thank Suriname for the consideration of our suggestions and recommendations. We are pleased to learn that they will be taken on board when developing your policy.

4.90. We extend our best wishes to Suriname for its ongoing efforts towards improving its trade policy regime and for a successful Trade Policy Review.

DOMINICAN REPUBLIC

4.91. The Dominican Republic shares close ties of friendship with Suriname, as a partner of our country within the framework of the bilateral agreement between the Dominican Republic and CARICOM, and also through the Economic Partnership Agreement between the Caribbean Forum of African, Caribbean and Pacific States (CARIFORUM) and the European Union (EPA), which Suriname applies provisionally, pending ratification by its Parliament. It must be stressed that these Agreements have allowed for preferential treatment in the trading of goods and services, which has produced tangible benefits for both our countries.

4.92. In this context it is necessary to point out that the trade relationship between the Dominican Republic and Suriname has developed to such an extent that Dominican exports totalled

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- 24 - an amount of USD 6,932,000 in 2017, having risen by 13.5% from USD 6,107,000 in 2016. The same positive trend was seen in 2018, when exports reached a total of USD 7,486,000, according to statistics provided by the Dominican Ministry of Industry, Trade and MSMEs and the Directorate-General of Customs (DGC).

4.93. Among the chief items that the Dominican Republic exported to Suriname between January and December 2018, were cement, with a total value of USD 2,833,000, followed by forged iron bars, to the tune of USD 1,567,000. Other leading exports include lubricating oil; mixed condiments and mixed seasonings; cartons, boxes and cases, of corrugated paper or paperboard; threaded plastic lids, with or without an interior seal; and mineral or chemical fertilizers containing the three fertilizing elements nitrogen, phosphorus and potassium.

4.94. According to DGC data, imports from Suriname amounted to USD 1,869,000 in 2018. The main import products included fuel oils (fuel), totalling USD 1,317,000; games, operated by coins, banknotes, bankcards, tokens or by other means of payment other than bowling alley equipment; and tilapia.

4.95. According to the report by the WTO Secretariat, gold and fuel are Suriname's main exports, with Switzerland; Hong Kong, China; and the European Union being the most important export destinations. In terms of agricultural products, we note that bananas form the major proportion of these exports, especially to the European Union, followed by rice.

4.96. Trinidad and Tobago, the United States and the European Union are the sources from which Suriname gets its main imports, namely, machinery, mineral fuels and prepared foodstuffs.

4.97. It would appear that mining activities form the major attraction for foreign direct investment.

4.98. We wish to underline the fact that according to the WTO Secretariat report, to date, Suriname has never appeared before the , nor has it ever initiated any action related to contingency measures. It has no national content requirements, does not grant export subsidies, and has no export processing zones. There are also no government-sponsored or operated export insurance, finance or guarantee programmes.

4.99. Since the last trade policy review, the economy of Suriname has faced a number of challenges. We nevertheless note that projections for 2019 show a 2% GDP growth rate and a reduction in the fiscal deficit of around 6%. The service sector generates the bulk of Suriname's economic activity, accounting for approximately 55% of GDP.

4.100. We note the positive thrust of the initiatives undertaken by the Government of Suriname as part of its 2012-2016 Development Plan, which cover consumer protection, the development of a national competition policy, improvement of the policy on the registration of standards, promotion of small and medium-sized enterprise interests, and improvement of the business climate. Similarly, we appreciate the extent to which Suriname's trade policy has been enshrined in the five-year national development plans right up to the latest period covering 2017 to 2021.

4.101. In keeping with this, the 2017-2021 Multi-Annual Development Plan identifies tourism as one of the key sectors from which greater economic growth can be generated. Suriname has simplified visa requirements and procedures for tourists, and this has had a positive impact on the sector.

4.102. It is worth mentioning that Suriname has submitted the following notifications to the WTO: on the technical regulation establishing minimum requirements for the basic hygiene and food safety of bread and banquet producers; to the Preparatory Committee on Trade Facilitation regarding its Category A commitments, and on the renegotiation of Schedule LXXIV tariff concessions pursuant to Article XXIV:6 and Article XXVIII:5 of the General Agreement on Tariffs and Trade (GATT) 1994.

4.103. Relative to this last topic, the Dominican Republic reiterates its statement in Note Verbale No. 18-0120 of 11 September 2018, in which it indicates the goods for which our country reserves its principal or substantial supplier rights. In addition, through that Note Verbale, the Dominican Republic requested the Government of Suriname to provide relevant information on the structure of the CARICOM Common External Tariff, to show that the new customs duties would not

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- 25 - have a greater general incidence than prevailing duties, pursuant to Article XXIV:5. The Dominican Republic reserves its corresponding rights in this respect.

4.104. Furthermore, we take note of the communication dated 10 September 2019 from the Surinamese Ministry of Trade, Industry and Tourism, which is being sent to our authorities in the capital. We wish to express our willingness to discuss the matter contained in that correspondence, as well as the issues we have raised. At this juncture, we hope that during the week of 14 to 18 October this year, we might be able to convene a meeting on the topic with the participation of officials from our capital.

4.105. Regarding the questions posed by the Dominican Republic within the framework of this trade policy review, we hereby acknowledge that we received the relevant replies on 10 September 2019, and we shall also be transmitting them to our authorities.

4.106. Finally, we recognize the effort that the Surinamese authorities have put into this trade policy review, and we wish them an effective implementation of the development plans that will lead ultimately to positive economic and trade performance.

INDIA

4.107. Since the last Trade Policy Review in 2013, the economy of Suriname has witnessed considerable volatility with GDP growth rate fluctuating from -5.6% to +2.9%. The key reasons for this fluctuation was significant commodity terms of trade and internal shocks merchandise imports and exports of Suriname also declined during the period with coal and fuel emerging as the main items of export replacing bauxite and aluminium. However, we note from the reports that with efforts of the Government, the economy is on a path of recovery with expected GDP growth rate of 2% in 2019. We commend the Government of Suriname for its sustained efforts and measures to promote economic growth and address the challenges. These include the development plan 2017-21 which aims at diversifying the economy, improving business environment, attracting foreign investment, stabilizing the economy and addressing human development indicators.

4.108. and Suriname share close, warm and friendly relations with strong cultural and historic linkages between both countries as nearly 27% of Suriname's population comprises of people of Indian origin who have contributed significantly to the growth and development of the country. Trade between both countries which stood at USD 110.14 million, though modest, has considerable potential to gain in areas including iron and steel, electrical machinery and equipment, pharmaceuticals, textiles, agricultural products, chemicals and other areas.

4.109. India also has a vibrant development partnership cooperation with Suriname which includes lines of credits extended for implementation of the following projects:

(i) Line of Credit project of USD 27.5 million for electrification of Pikin Saron area and upgradation of transmission network and infrastructure substation; (ii) Line of Credit of USD 11.123 million for upgradation of milk processing plant; and (iii) Line of Credit of USD 20 million for rural electrification through solar energy under International Solar Alliance programme.

4.110. Besides, India is also extending assistance for projects in various other areas including irrigation, crafts, information technology, healthcare, and other technical and humanitarian assistance.

4.111. Professionals from Suriname also avail of training programs under the Indian Technical and Economic Cooperation Programme in various institutions in India in areas including rural development, banking, ICT, new and renewable energy, etc.

4.112. To conclude, Suriname is a small and open economy and is blessed with mineral reserves and natural resources. We wish the Government of Suriname success in its plans and future endeavours to address economic growth and challenges and look forward to working closely to strengthen our ties with Suriname in all areas including trade and economic ties. We wish the delegation of Suriname a productive and successful TPR.

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GUYANA

4.113. Suriname is an important member of the Caribbean Community (CARICOM), as well as a strategic partner in the Guiana shield in the Amazon on the South American mainland.

4.114. We recognize the economic challenges that has face recently, we applaud the steps Suriname is taking to modernize its cross-border infrastructure for regional and international trade and investment. Suriname's ongoing efforts to implement the WTO Trade Facilitation Agreement is noted and the establishment of the Electronic Single Window with the support of the World Customs Organization (WCO) and UNCTAD demonstrate, as an example, the very serious commitment to further integrate into the global economy and participate effectively in the multilateral trading system.

4.115. We encourage Minister Tsang and his team to press ahead with these trade reforms which will continue to deliver tremendous benefits to the private sector, consumers and the public sector.

4.116. We appreciate Suriname's emphasis regarding the large proportion of its landmass covered by tropical rainforest and that the member has committed to keep protecting over 90% of this bio-diverse asset, not only for its own benefits in sustainable forest management, eco-tourism and green energy initiatives, but as a deliberate response and contribution to the global community of nations seeking a more sustainable life on planet earth. Trade and environment are increasingly important and policy space for countries that contribute to combating climate change and related global changes should be increasingly recognized, especially as it affects the agricultural sector and food security initiatives.

4.117. Small economies continue to make big sacrifices in the multilateral trading system in this context. The small vulnerable economies of the Caribbean Community do so generously, and our sister member state Suriname upholds this tradition in no small way.

4.118. Guyana congratulates Minister Tsang and his Government for the trade reforms in Suriname and urges increased efforts at global and national trade policy coherence recognizing the importance of increased multilateral system participation. We wish the delegation of Suriname a very productive third Trade Policy Review.

BARBADOS

4.119. We wish to express our sincere appreciation to Minister Tsang for his thought-provoking statement. His country's perspectives have certainly given us reason for cautious refection as we in the WTO continue to contemplate a reformative agenda that at least for us, must effectively bring the most vulnerable amongst us, more fully into the multilateral trading system, including by allowing them the necessary policy space and policy options to plan for and respond to existing and emerging economic and environmental challenges.

4.120. We recognize that since its last Trade Policy Review in 2013, Suriname like many small vulnerable economies, experienced fluctuations in its growth and economic realities having recorded annual GDP growth of 2.9% in 2013 and after three years of negative growth rebounded to 1.7% in 2017. These fluctuations have mainly been attributed to systemic internal factors, as well as substantial changes in the country's export and production base, chief among these were the country's shift away from the production of bauxite and aluminium, towards the production of gold and fuel, which have emerged as the country's main export products.

4.121. is heartened to see that while recovery remains slow, Suriname is expected to experience growth of 2% in 2019. We therefore take note that in seeking to maintain and accelerate this growth and achieve its overall economic and trade policy objectives, Suriname has developed a five-year development plan for the period 2017-21. The main objectives of which are to diversify the economy, improve the business climate, and increase its participation in international and regional markets. Of particular note is the Government's efforts with respect to trade facilitation aimed at increasing exports and bolstering economic competitiveness. We do note that while some technical assistance and capacity building has been acquired in the area of trade facilitation, more will be required in this and other areas. It is important that special and differential treatment and the provision of technical assistance and capacity building remains accessible to small developing

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- 27 - countries like Suriname in current and future agreements if they are to more fully integrate into and effectively benefit from the multilateral trading system.

4.122. As sister countries in the Caribbean Community (CARICOM), Barbados and Suriname we aim to achieve economic and political integration, harmonization and interdependence through the CARICOM Single Market and Economy. At the international level, we share a strong belief in the principles and benefits of multilateralism. We are encouraged to hear that Suriname is exploring the possibility of establishing a Mission in Geneva and look forward to welcoming them. For us, this speaks to Suriname's the confidence in and commitment to the multilateral trading system, as well as the continued relevance of the WTO to small developing countries like ours in the CARICOM region.

4.123. In conclusion, Barbados joins others in wishing Suriname a successful conclusion to its third Trade Policy Review.

JAMAICA ON BEHALF OF THE ACP GROUP

4.124. Since the launch of its Development Plan for 2017-2021, Suriname's economy has proven resilient despite a turbulent and volatile landscape. After contracting by 2.1% in 2017, the economy rebounded to register GDP growth of approximately 1.2% in 2018. This is further expected to increase to 2% in 2019. Measures taken by the Government to stabilize the economy have produced positive results, including an improved balance of payment and a major reduction in the rate of inflation within the country from 60% in 2016 to 6% in 2018. This figure is expected to decline even further to an estimated 5.4% in 2019 and has enhanced the trade and investment climate within the country.

4.125. Despite the dominance of services as the main economic activity in Suriname with an average contribution to GDP of around 55%, like many ACP states, the agriculture and fisheries sectors are important contributors to the country's economy. The Government of Suriname has also adopted initiatives, in collaboration with the private sector and international organisations to utilise natural resources such as fertile land, while developing agricultural productive capacity, towards expanding the country's agricultural output, including for export. The ACP Group further notes the goal of the Government of Suriname to protect 93% of its forests in keeping with global efforts to promote sustainable development. This is projected to have positive spillover effects on economic development and trade, through the creation of opportunities in sectors such as eco-tourism and green energy.

4.126. The ACP Group wishes to commend the active steps being undertaken by the Government of Suriname to expand and diversify its export base, which has long been dependent on a few commodities, through a series of reforms aimed at attracting foreign investment to boost sectors such as tourism and non-timber forest products. In connection with this, the country has also introduced simplified visa procedures to further bolster growth in its tourism sector.

4.127. Positively also, special focus has also been placed by the Government of Suriname in stimulating the growth of its micro-, small-, and medium-enterprises (MSMEs) with assistance programmes being provided through an Entrepreneurs Desk set up by the Ministry of Trade, Industry and Tourism which are aimed at guiding entrepreneurs in setting up their firms. This has, inter alia, enabled entrepreneurs to access credit which was a major challenge in the past.

4.128. In recognition of the important role of trade as the engine of economic growth and development, Suriname has also been working towards making its trading system more open by strengthening its engagement globally, as well as regionally with its CARICOM partners within the CARICOM Single Market and Economy. In addition, the Government is also undertaking measures to expand trade through its targeting of the Surinamese Diaspora as a niche export market. Linked to this, Suriname has also been making investment in upgrading its air, land and marine transport including air and seaports to reduce transport costs. This is expected to facilitate increased movement of goods both regionally and globally.

4.129. Positive mention should also be made of the measures adopted by the Government of Suriname, following on its accession to the World Customs Organization in 2018, to facilitate trade and reduce costs through the recent introduction of an Electronic Single Window platform that will

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- 28 - greatly enhance transparency and predictability for traders in the country. This platform will facilitate all customs clearances and fulfilment of regulatory requirements. Moreover, the platform will also provide a tracking service to follow the status of consignment release.

4.130. The ACP Group congratulates the member of State Suriname for the strides made since its last review and its continuous efforts to strengthen its participation as a dynamic actor in the multilateral trading system in furtherance of its development objectives. We wish Suriname every success in this review.

JAPAN

4.131. With regard to its customs procedure, highly evaluates Suriname's efforts to facilitate trade. For example, Suriname has been implementing the ASYCUDA World system since 2015. This is a system of customs clearance that facilitates the calculation and collection of customs duties and other charges, and helps with risk analysis for smooth clearance of goods. Moreover, according to the Government's report, we note that the Suriname Electronic Single Window will come into effect as of September 2019. This system will provide great benefits for traders as: it will allow traders to submit documents related to export and import electronically, it will make customs declarations possible at single entry points, it will reduce the amount of time and administrative procedures required, and it will promote communication between traders and public authorities. Japan commends such efforts by Suriname to promote trade facilitation and is confident that these will enhance the transparency and predictability of its trade.

4.132. On the other hand, we still have concerns regarding the time required for clearance. According to the Secretariat's report, the average time to import is still two or three days. We are concerned that long clearance times will weaken Suriname's international competitiveness and could act as a trade barrier. Therefore, we encourage Suriname to make the best use of the ASYCUDA World system and the Suriname Electronic Single Window to reduce the time needed for clearance.

4.133. Regarding trade policies, Japan appreciates Suriname's active participation in the WTO negotiations. We are pleased to see that Suriname submitted its Category A commitment under the Trade Facilitation agreement in November 2015 and has also established a National Trade Facilitation Committee in 2016. On the other hand, the report by the Secretariat says that Suriname has neither ratified the Trade Facilitation Agreement nor submitted its Category B and C commitments. We hope that Suriname will ratify the Trade Facilitation agreement and submit its Category B and C commitments soon. This would facilitate our analysis of the need for assistance.

4.134. Now, let me briefly touch upon Suriname's WTO tariff bindings. According to the Secretariat' s report, Suriname's applied rate in 2019 exceeded its bound rate for many tariff lines. We also recognize that this issue is subject to a request for negotiations under Article XXVIII, and we are highly interested in how Suriname will settle this matter with other members. Japan hopes that we will be able to arrive at a solution in the near future.

4.135. With regard to the situation surrounding Suriname's industries, both the Government's report and the Secretariat's report indicate that the limited number of exports of goods such as gold and fuel is one of the reasons behind the country's economic vulnerability. Therefore, we expect Suriname to make further efforts to accelerate its industrial diversification for the stability and development of its economy.

4.136. In conclusion, we wish Suriname a successful and productive TPR, and look forward to hearing of further progress regarding its trade policies at its next TPR.

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5 REPLIES BY THE REPRESENTATIVE OF SURINAME AND ADDITIONAL COMMENTS

5.1. First of all, thank you to Mr. Chair, Ambassador Manuel A.J. Teehankee from the Philippines, and the discussant Ambassador Peter Brno from the Slovak Republic.

5.2. Thank you to the WTO Trade Policy Review Division: Willy Alfaro, Arne Klau and Bernard Kuiten for their excellent advice.

5.3. Thank you to all the Member States that came to support us and a special thank to Peru, Canada, Colombia, the European Union, the United States, Brazil, Argentina, Iceland, Indonesia, Singapore, Trinidad and Tobago, the Dominican Republic, India, Guyana, Barbados, Jamaica, the ACP Group, and Japan for their remarks on the first day of our TPR.

5.4. We received many excellent recommendations and we are sure to take them back home for further consideration.

5.5. There were similar recommendations made by various Member States and we have grouped them together. I'll start with commenting on the remarks made by more than one Member State and then I'll comment on the ones from individual Member States.

5.6. Several Member States (Peru, Colombia, USA, Brazil, Argentina, Indonesia, Singapore and the Dominican Republic) recommended to improve bilateral trade with Suriname.

5.7. We welcome bilateral trade, and we are focusing on non-traditional markets. I want to say that we are in the process of joining ALADI and we seek sponsorship from ALADI members to join. Also, we are working on connectivity to new markets, which we deem essential for bilateral trade. We are open to bilateral discussions to enhance our economic relations with any country that is interested.

5.8. Several Member States (Peru, Colombia, China, Singapore; and Barbados) recommended Suriname to set up a Permanent Mission in Geneva in their remarks.

5.9. The Ministry of Foreign Affairs has already started the process to set up a Mission in Geneva. Consultations have been conducted with the Government of Switzerland. And we have had talks with our CARICOM sister Nation Barbados for the possibilities of cooperation. Suriname acknowledges the importance of a Permanent Mission in Geneva to allow us to participate more actively in Global matters.

5.10. Several Member States (Peru, Canada, the United States, China, and Singapore) recommended for timely notification by Suriname.

5.11. The Government of Suriname acknowledges the need to adhere to notification requirements. It is a problem of finance and expertise for us. We seek technical assistance from the WTO and from Member States to adequately comply.

5.12. Several Member States (Canada, Colombia, the United States, Argentina, China, Singapore, the Dominican Republic, and Japan) recommended to ratify the TFA and Trips.

5.13. The draft legislation for TFA and Trips have already been sent to the Council of Ministers, and after its approval, the process of ratification can be started.

5.14. The European Union and Indonesia have recommended to update the current investment law in their remarks.

5.15. Investsur is established in 2018 and is currently working on a new investment law, with our stakeholders.

5.16. China, Jamaica and the ACP Group have recommended ease of Visa and residency requirements.

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5.17. Suriname implemented the tourist card aka the visa on arrival system in 2011 to make it easier for tourists and visitors to come to Suriname. We are continuously trying to make it even easier for visitors to enter the country. We recently launched the E-visa/E-tourist card via online application, and we are in a continuing process of making the service more accessible and user friendly.

5.18. We agree with Barbados and Trinidad and Tobago that technical assistance and capacity-building must be available for developing countries within the WTO. Small vulnerable economies often lack the finances and expertise. Only with technical assistance can there be a level playing field, and that should be what the WTO should stand for.

5.19. Peru recommended Suriname to diversify its economy with ecotourism and fisheries. We fully agree and, as a matter of fact, we have identified ecotourism as one of the main pillars to develop tourism in Suriname. With respect to fisheries, we are working on new procedures to regulate the industry, the biggest challenge is to monitor and fight illegal fishing and smuggling in Surinamese waters.

5.20. Canada recommended Suriname to join the Joint Statement Initiatives including the structured discussion on investment facilitation for development. We will present this to the Ministry of Finance and InvestSur for their consideration.

5.21. Canada also advises to work on transparency and predictability in labour mobility, which we will suggest to the Ministry of Labour for their consideration.

5.22. Furthermore, Canada recommended Suriname to be an Observer to the WTO Government Procurement Agreement.

5.23. The Government of Suriname places high value on transparency in government procurement.

5.24. We have implemented the Integrated Financial Management and Information System (IFMIS), which is a unique software that will help us to better control budget and expenditures throughout the entire Government of Suriname, to make the system totally transparent. We are using best practices from around the world to help us move our nation forward.

5.25. We passed the law on government procurement in 2017 and amended it in 2019 to comply to international standards. We are in the process of our National Risk Assessment and we will continue to introduce more economic reform. The suggestion to be an Observer to the WTO GPA to further improve transparency will certainly be relayed to the NRA committee for consideration.

5.26. The European Union recommended Suriname to ratify the CARICOM-EU EPA.

5.27. Ratification of the EPA is currently pending in Parliament to be put on agenda for processing.

5.28. The United States had 2 questions:

• to clarify current tariff rates, under article 28 GATT.

5.29. I want to report that we are currently in the negotiation phase for the tariff rates.

• Request for more information on the draft bill IP (GI's, Copyright in the Berne convention). Does the bill provide protection and enforcement of copyright and trademark violations.

5.30. The answer is: yes, the new draft IP law will provide protection and enforcement of copyright and trademark violations.

5.31. Brazil recommended Suriname to work on upgrading the infrastructure.

5.32. We acknowledge the need for connectivity for trade and tourism. With respect to infrastructure, we are currently seeking FDI to build bridges and infrastructure to our neighbouring countries: Guyana, French Guyana and, of course, Brazil.

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5.33. Iceland recommends that we join the Joint Declaration on Women and Economic Empowerment in Trade of the trade impact working group. We will gladly take this into consideration.

5.34. We warmly welcome China's offer to support the alignment of the Belt and Road Initiative with our National Development Strategy. And we welcome further discussions with China on this matter.

5.35. We also welcome Singapore's offer to make use of their ICT technical assistance.

5.36. We gladly share our best practices on Electronic Single Window implementation with Trinidad and Tobago

5.37. India recommended Suriname to make use of the training programmes under the Indian Technical and Economic cooperation programme and the projects that they are currently doing in Suriname. We are very grateful to India's support and assistance, and we look forward to even greater cooperation.

5.38. We thank our neighbour, Guyana, for their support to Suriname's green initiative and commitment to the environment.

5.39. Japan recommended that Suriname notifies category B and C.

5.40. I want to report that on 4 September, we already submitted Category B and C notifications.

5.41. And, with that, I believe I have commented on all remarks made by the Member States. I want to conclude by thanking you once again for the excellent recommendations and the support that me and my team have experienced here.

5.42. And my sincerest gratitude to my team who have been excellent and have worked very hard these past few days.

5.43. Please join us at the gallery afterwards, where we welcome you all for a small tasting of Surinamese flavours. I thank you.

DISCUSSANT

5.44. At the outset, let me thank Mr. Stephen Tsang, Minister of Trade, Industry and Tourism, and the whole delegation of Suriname for their efforts made to reply to the additional questions raised on Wednesday.

5.45. Before I touch upon more specific topics suggested for more detailed discussion, let me repeat briefly the areas of Suriname's economy which attracted the most frequent interest of Members, where, on one side, more critical interventions were highlighted and, on the other side, many positive comments had been mentioned.

Challenges

• Suriname's economic performance has been highly volatile, with a low level of diversification. • Merchandise exports are limited to some products, mostly raw materials and agriculture products. • Suriname's current account deficit increased again, due to repeatedly worsening terms of trade. • The institutional environment is characterized by a strong backlog in adopting important trade-related laws, which led to low predictability of the trade regime, concerns expressed about governance issues, and high costs of doing business. • Applied rates in 2019 exceed bound rates for almost 10% of items of HS2007.

5.46. On the positive side:

• Inflation declined significantly to 6% in 2018.

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• Slow recovery of the economy is underway, with an expected GDP growth rate of 2% in 2019. • Regional integration efforts will bring positive results. • Several e-government projects were initiated in recent years. • ASYCUDA World has been applied for customs clearance. • Suriname joined the World Customs Organization in November 2018. • Its legislation on customs valuation is based on the WTO's Customs Valuation Agreement. • Suriname submitted its Category A, B and C commitments under the TFA, and also a National Trade Facilitation Committee has been established.

Topics for discussion

1. Diversification in the economy

2. Legislative framework - adoption and implementation of laws

3. Realization of the five-year operational plans

5.47. Many of the concerns mentioned the day before yesterday were phased out in the introductory statement of Minister Stephen Tsang in all the three above-mentioned areas. Steps undertaken by Suriname's Government to face the crisis, by adopting drastic and necessary measures aiming to speed up economic reform, are welcomed. Updating of legislation, implementing policies to develop other sectors, strengthening of regional commitments, developing a green economy, upgrading human capital and social security, among others, deserve thorough attention.

5.48. In more concrete steps, the adoption of the Anticorruption Law and related legislation, the Law on Electronic Transactions, the Law on Annual Reporting, the Government Procurement Law, and a series of pieces of legislation to improve the economy and doing business in Suriname had been approved during the last three years. These and other steps of the Government to fulfil the overall economic and trade policy objectives led to the diversification of the economy. The improvement of the business climate should be commended.

5.49. In this context, I would like to encourage Suriname's Government to continue in these efforts and to adopt the other pending laws, namely the Law on Intellectual Property, the Privacy Law, the Law on Mediation, the Law on Commercial Competition, which are in the last phase of approval in Parliament. Some important laws also mentioned by several Members were not submitted for approval yet, and they remain a matter of concern.

5.50. As a high priority, the revision of the Investment Law aiming to promote and attract FDI should be considered, along with legislation to create industrial parks, and free trade zones to create an interesting environment for more value-added and diversified production.

5.51. Clarification on the operation of InvestSur as an important institution for the support of general development and investment is still on the agenda.

5.52. State ownership remains important in many sectors of the economy. Progress on privatization has been slow. Acceleration of the privatization process, creation of joint ventures, and an open regime for FDI would speed up production capacities, diversify production, support the creation of MSMEs, and enable better integration through global value chains in many sectors. Consequently, growing services' demand will further boost the economy, which will lead to increased participation in international and regional markets.

5.53. The positive approach of Suriname's environmental policy to preserve rain forests, the green energy policy which is focusing on generation via solar, water and biogas, and the development of ecotourism are definitely right strategic decisions.

5.54. This is also the case for government support to developing MSMEs, where several programmes and technical assistance are provided. However, a lack of finance has been indicated.

5.55. Finally, during the two-day exercise, we can acknowledge that Suriname's Government made good progress in the stabilization of the economy. It adopted important legislation for its stability,

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- 33 - diversification and integration. At the same time, it is clear that, in many areas, further efforts are inevitable. No doubt, the implementation of adopted strategies and laws will play a crucial role in gaining desired progress.

5.56. Last but not least, I would like to join those Members who explicitly recommended the opening of a Permanent Mission of Suriname in Geneva. This may activate the efforts of the Government to participate in negotiations in important areas, such as e-commerce, services, and investment facilitation, among others, and better work on the transparency and predictability of its trade policy regime.

5.57. I congratulate Suriname for a successful TPR. Thank for your cooperation and I wish the delegation a safe return home.

EUROPEAN UNION

5.58. The EU would like to first thank Suriname for the comprehensive overview presented on Wednesday and this morning of the main developments occurred in its trade and economic policy during the review period.

5.59. The EU notes that this third Review of Suriname has been helpful for better understanding the main developments in the trade policy of Suriname carried out in these last years and the challenges that Suriname is facing in the future.

5.60. The EU hopes that Suriname will duly take into account some of the few challenges highlighted by Members during this Trade Policy Review. For instance, we would like to invite the Government of Suriname to pay attention to the comments made by other Members on the government procurement process, which remains ambiguous, and the fact that there is no stand-alone law on procurement. We take note of the update provided this morning regarding the government procurement law. We would like to highlight that a number of EU companies experience some uncertainty, when they have been awarded a contract. Awarded contracts are cancelled and put out for tendering again for reasons that are unclear to companies. We would very much appreciate an update on the work with the IADB and CARICOM to standardize the procurement system in Suriname.

5.61. The EU would like to acknowledge the progress made and like to encourage Suriname to continue in its ambitious efforts to reform its economy.

5.62. We would also like to thank Suriname for having provided timely and comprehensive replies to the questions raised by the EU. The answers gave useful clarifications on the issues we had raised and show Suriname's commitment to further legal reforms.

5.63. In this context, we would like to underline again the importance of the CARIFORUM-EU Economic Partnership Agreement for bilateral trade relations and trade opportunities it creates. We would like to invite Suriname to not delay further the reforms and the EPA ratification. Again, we take good note of the update provided this morning in the statement by the Minister.

5.64. We would like to highlight the importance of the appropriate implementation of the EPA tariff reduction schedule for economic operators in Suriname and manufacturing sector to increase the economic competitiveness of markets and production.

5.65. We are looking forward to our continued cooperation in all the relevant multilateral and plurilateral and bilateral fora.

5.66. Finally, on behalf of the EU, I would like to congratulate Suriname for concluding this productive and successful review.

UNITED STATES

5.67. The United States would like to sincerely thank the members of the delegation of Suriname for their preparation and constructive participation in this Trade Policy Review. We also thank

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Ambassador Peter Brño for his clear and informative insights. And, as always, the Secretariat for the excellent work.

5.68. We greatly appreciate the presentation by Minister Tsang on the various efforts underway in Suriname to create and foster a more investor- and trader-friendly environment. We believe that these initiatives, if combined with implementation of modern trade legislation, as mentioned by many Members in their remarks, will contribute to Suriname's overall regional and global competitiveness and integration in world markets. For example, the tangible commercial and economic benefits from initiatives such as the Electronic Single Window system, highlighted by the Minister in his day 1 remarks, will only be fully realized in conjunction with critical policy reforms such as ratification and swift implementation of the WTO Trade Facilitation Agreement, and by providing traders the necessary transparency on Suriname's current applied tariff rates.

5.69. We thank Suriname for their responses to all our written questions, as well as responses from Minister Tsang to the two questions from our day 1 statement.

5.70. The United States appreciates the opportunity to engage in this dialogue and looks forward to continued work with Suriname, both bilaterally and within the WTO to facilitate trade and investment between our two countries.

5.71. Please accept our best regards and safe travels for your return home.

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6 CONCLUDING REMARKS BY THE CHAIRPERSON

6.1. The third Trade Policy Review of Suriname has offered us a good opportunity to deepen our understanding of recent developments in, and challenges to, its trade, economic, and investment policies. The more than 130 advance written questions submitted by 13 Members and the 18 delegations that took the floor during the first day underline the importance attached by Members to Suriname's trade and investment policies and practices. The statements, questions, and replies voiced in the course of this Review have highlighted the fact that Suriname is a generally open economy, with strong historical and economic links to many parts of the world, that is rich in natural resources and for which trade is essential for development.

6.2. I would like to thank Suriname's delegation, led by the Honourable Minister of Trade, Industry and Tourism, Stephen Tsang, for its active participation in this exercise. I would like to thank our discussant, H.E. Mr. Peter Brno, Permanent Representative of the Slovak Republic, for his insightful remarks, and all the delegations that took the floor for their valuable contributions to this Review.

6.3. Members took note of Suriname's difficult and highly volatile economic environment since 2013, coupled with a relatively low level of diversification, which had led to a decline of per capita GDP in US dollar terms. At the same time, Members noted that more and meaningful reforms could help Suriname develop and diversify by improving conditions for trade and investment. In this respect, it was noted that while some constraints and challenges, such as poor infrastructure, are shared with countries at a similar stage of development, others are related to outdated national laws and public administration shortcomings that could be improved. Against this background, Members welcomed the Government's objective, as outlined in its Development Plans, to improve the business climate, advance the investment framework, and diversify the economy. Indeed, many Members agreed that an improvement of the business environment was key for diversification of Suriname's economy and an increased participation in international markets. With a view to promote foreign investment, Members encouraged Suriname to facilitate the registration of new businesses, minimize discretionary decision-making, and make approval processes more transparent and predictable.

6.4. Members commended Suriname on the recent implementation of the Electronic Single Window, hoping that this measure would contribute to significantly reduce clearance times and enhance transparency in import procedures. They also welcomed Suriname's accession to the World Customs Organization in November 2018. On tariffs, Members noted that for nearly 600 tariff lines applied rates continued to exceed bound rates and encouraged Suriname to successfully conclude renegotiations under Article XXVIII in the near future. Some Members also found that there was scope for Suriname to reduce its applied tariffs.

6.5. At the same time, Members expressed concerns that approval and implementation of crucial legislation, on issues such as customs procedures, investment, trade facilitation, the VAT, mining, competition and intellectual property, had been pending, sometimes for more than ten years. As some of these draft laws had already been in the process of being prepared at the time of its last Trade Policy Reviews, in 2013 as well as in 2004, Members urged Suriname to address this backlog in adopting trade-related legislation. In this context, Members also encouraged Suriname to ratify the Trade Facilitation Agreement and to fulfil its notification obligations in the WTO. On WTO participation, various Members welcomed Suriname's plans to consider establishing a Permanent Mission in Geneva.

6.6. Some other issues were also raised by Members. They included: the ratification of already concluded preferential trade agreements; the role of the investment agency InvestSur; the risk management system for imports; plans to introduce legislation on contingency measures; the privatization of state-owned enterprises; the participation of women in the economy; sanitary and phytosanitary measures on imports; government procurement procedures; the management and preservation of forest resources; support for MSMEs; and the submission of category B and C commitments under the Trade Facilitation Agreement, for which the Minister just provided an update.

6.7. The above are some of the key issues that had emerged in our discussion. Once again, I thank Minister Tsang, the discussant, and Members for contributing to a very informative and interesting Trade Policy Review. I also wish to express my appreciation to the delegation of Suriname for its oral and written responses during the meeting and recognize that, with no Mission in Geneva, the

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TPR exercise must have been particularly challenging. I hope that the Suriname delegation will take into account and further reflect on the important issues and on the many constructive comments and suggestions that it has received during this Review. Suriname has provided answers to most written questions raised by Members. I look forward to receiving the answers to any outstanding questions within one month, at which point the Review will be successfully concluded.

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