WTO after Cancun: the perspective of Vanuatu

Transcription

1 WTO after Cancun: the perspective of Vanuatu

2 Introduction Vanuatu is a group of 83 islands in the southwest Pacific with a population of 200,000. It has UN least-developed country status owing to frequent tropical cyclones and earthquakes. 75% of people are subsistence farmers. Exports, worth around US$20 million annually, go mostly to Australia, Japan and Europe. There is no income tax. Government revenue mostly comes from import tariffs and VAT.

3 Some issues at Cancun What do they mean for Vanuatu? 1. Agricultural market access 2. Subsidies 3. Singapore issues 4. Accessions of Nepal and Cambodia

4 1. Agricultural market access Market access to Europe and the US is less of an issue for Vanuatu As an LDC we have free access to most large markets: eg.. EU/ EBA, Australia/ SPARTECA Agricultural exports are undiversified and small Copra and cocoa each make up about 30-40% of total exports Kava exports are volatile Coffee production was 12 tonnes last year

5 Most exports go to Australia, the EU and Japan Exports by destination, VT million Australia EU Japan New Caledonia Bangladesh NZ Korea

6 2. Subsidies International subsidies aren t t of major direct importance to Vanuatu Most of the commodities that Vanuatu produces aren t t internationally subsidised - eg.. kava, copra and cocoa It is unlikely that Vanuatu will soon diversify into new agricultural exports. eg. cotton or fruit and vegetables

7 Exports are not directly affected by international subsidies Exports, US$ million, 2003 Copra Cocoa Cattle Forestry Kava

8 3. Singapore issues Collectively, these matter for Vanuatu The tiny size of the government and civil service means it would be difficult to cope with more issues being added to a new round of trade negotiations. Vanuatu is not really keen on either a plurilateral approach or the inclusion of all the Singapore issues. Unbundling might be feasible.

9 Ranking the Singapore issues for Vanuatu: 1. Trade facilitation TF could help Vanuatu. An existing agreement (PACER) aims to establish a regional trade facilitation programme. 2. Transparency in government procurement This might be relatively acceptable because Vanuatu is so small it is obvious where government buys things

10 3. Trade and competition Only partly relevant to Vanuatu 4. Trade and investment There are major fears over greater liberalisation of investment. Vanuatu has been particularly vulnerable to unscrupulous investors There is a desire to protect the unique environment Local people are very sensitive about retail and wholesale trade

11 4. Accessions of Nepal and Cambodia This was one of the most important issues for Vanuatu at Cancun Nepal and Cambodia s s accessions may set a precedent for Vanuatu We are now in the process of re-starting accession What will this involve?

12 Bilaterally requesting certain amendments to terms agreed in 2001 The main area of concern is services. The existing services schedule liberalises too many sectors. There are concerns over at least: Retail and wholesale trade Health, education and environmental services Audiovisual services Legal, professional and technical services

13 Further issues for Vanuatu These mostly concern the difficulties of a small country coping with accession and WTO membership The Vanuatu delegation at Cancun was three people. This compares with Japan and the US with around 150 each We couldn t t follow all the meetings that we wanted to Collective knowledge of the WTO is not as high as big countries

14 We find it difficult to fund WTO membership Total annual government spending is only US$60 million Vanuatu already owes US$170,000 in unpaid fees. Annual fees for Vanuatu as an observer are around US$20,000 Trips to Geneva are expensive

15 So far there is no definition of a small economy. Vanuatu will be watching the outcome of the working group on small economies There are also concerns over the issue of TRIPS and public health Vanuatu wants to make sure it is able to take advantage of the TRIPS and public health waiver.

16 In conclusion: We hope that we are able to join on appropriate terms Vanuatu sometimes feels too small to pull the WTO load

17 WTO documents

18 Thank you very much