WORLD TRADE WT/LDC/HL/12/Add.11
27October 1997
ORGANIZATION(97-4688)
High-Level Meeting onIntegrated Initiatives for
Least-Developed Countries 'Trade Development
COUNTRY-SPECIFIC ROUND TABLES: DOCUMENTATION
Vanuatu
Addendum
Documentation fortheRound Table Meeting forVanuatu.WT/LDC/HL/12/Add.11
Page2
ASSESSMENT OFTECHNICAL COOPERATION NEEDS RELATING TOTRADE
(Based ontheCheck-List forConducting Trade-Related
Technical Cooperation Needs Assessment)
A. Trade Policy
(a) What arethesectors thatyoubelieve haveunexploited orunderexploited export potential?
Fiveeconomic sectors haveunexploited orunderexploited export potential:
Agriculture:
Greateremphasiscouldbegiventocommercialproductiontosupplementsubsistenceproduction.
Considering themagnitude andproductive capacity oftheruralpopulation, Vanuatu could expand its
production ofspecialized crops forexport. Kava presently hasthegreatest potential, given thewide
demand inthePacific region andinlarge manufacturing countries, particularly withregard tothe
pharmaceutical usesofkava.
Livestock:
Thequality ofVanuatu 'sbeefisinternationally recognized ashigh. There isthepossibility
ofpromoting organic meat from Vanuatu inregional andAsian "niche" markets thatareinterested
insuchproducts.
Fisheries:
Insufficient benefits haveaccrued tothepeople ofVanuatu fromtheexploitation ofthefishing
resources ofthecountry. Foreign vessels havesofarbeenthelargest beneficiaries offishing activities.
Substantial value added opportunities could besought inVanuatu through theprocessing offish,an
areawhich atpresent isabnormally underexploited.
Tourism:
Thetourism sector, which already employs some 5,000 people inVanuatu, offers substantial
opportunities forexpansion, considering thewealth ofenvironmental resources, natural beauty and
cultural richness ofthecountry. Thepotential forexpansion ofthesector, which isanalyzed inthe
Government 'sMaster PlanfortheDevelopment ofTourism (April 1995), liesintraditional hotel-based
tourismactivitiesaswellasspecializedformsoftourism,inparticular,thoserelatingtoculturaltraditions
andenvironmental assets inruralareas. (Thenumber ofvisitor arrivals grew byanaverage 14per
centperannum between 1986 and1996).
Offshore financial services:
Although ithasnotgrown substantially intherecent past, theoffshore services sector has
potential tobecome amajor source ofearnings forthecountry. Important conditions foritssuccess
willbetheachievement ofpolitical stability, thedevelopment ofindigenous professional skills, and
adjustments tothelegalbaseforoffshore activities inorder toincrease theinternational competitiveness
ofthecentre.WT/LDC/HL/12/Add.11
Page3
(b) Could youplease define your country 'sperspective ofthereasons forchanges inthe
structure anddirection ofexports andimports?
Little diversification hasbeenobserved inthestructure ofexports overthelastfiveyears.
Copra hasbeenthecountry 'sfirstexported product formany years. Itsshare oftotalexports grew
from33percentin1993to46percentin1996. Between 1994and1996, thevolume ofcopra exported
byVanuatu increased by14percent, while thatofcocoa exports decreased by27percent. The
structural problems thatobstruct thediversification oftheeconomy (seequestion B(c)below) explain
thissituation.
Inthedirection oftrade, theonlysignificant change thathastaken place intherecent pastis
thegrowing share ofBangladesh asadestination forexports (31percentin1996). Thisreflects
Vanuatu 'sexports ofcopra toBangladesh, acountry withcopra-processing capacities. Before 1996,
theEuropean Union wasthefirstdestination forVanuatu exports (37percentin1995), followed by
Japan andAustralia. Thelatter remains theprincipal source ofimports (43percentin1996).
Itmustbenoted thatexports ofservices account foragrowing share ofthetotalforeign exchange
earnings ofthecountry. Considering theprospects forexpansion ofthetourism andoffshore services
sectors, itcanbeanticipated thatthecurrent account ofVanuatu willeventually demonstrate greater
reliance onthebalance ofservices thanonthebalance ofvisible trade.
(c) What have been theobjectives oftrade policy inthemost recent period, compared to,
say,twodecades ago?
Since independence anduntilrecently, Vanuatu 'strade policy favoured production forthe
domestic market overproduction forexport. Import substitution under protection hasresulted inhigh
coststructures intheeconomy. Thenewobjective oftradepolicy istoestablish anopentrading regime
inorder topromote greater competitive production ofgoods andservices forexport. Thisnew
orientation isenvisaged intheframework ofthenewComprehensive Reform Programme (CRP), which
aimsatenhancing themachinery ofgovernance, redefining theroleofthepublic sector (with afocus
onefficiency), andpromoting private sector-led growth while inducing greater social equity.
Inthiscontext, itisenvisaged thatthegovernment willwithdraw fromthenumerous commercial
activities inwhich ithasbeenpresent (e.g.livestock, abattoir, fisheries, tourism, etc.)andconcentrate
oncreating anenvironment ofstability andconfidence inwhich theprivate sector canflourish. An
overriding objective istoprovide reliable andaffordable transport andmarketing services totraders
inallparts ofthecountry, andtoencourage greater agricultural production forforeign markets.
Implementation ofthenewtrade policy willbeundertaken from 1998 inthecontext ofthe
implementation oftheCRP andaccession ofVanuatu toWTO. Itwillinvolve ageneral reduction
andsimplification ofimport duties, tariffication onproducts thathavebeensubjected toquantitative
restrictions, theremoval ofallexport taxes, andthereplacement oftheturnover taxbyavalue-added
tax.Allimport licences thatgivemonopolies willberevoked inorder toendunfair trade practices.
Forgoods notsubjected tobans, import prohibition willbereplaced bytariffmeasures oreliminated.
Marketing ofprimary commodities (copra, cocoa, coffee, kava) ispresently controlled bythe
Vanuatu Commodities Marketing Board (VCMB), which alsolicenses private kavaexporters. Inthe
future, itisintended thatallmarketing services willbeprovided bytheprivate sector. However, the
VCMB retains itspresent rolesothatshipping services toremote parts ofthecountry benot
discontinued.WT/LDC/HL/12/Add.11
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Ontheregional scene, trading opportunities offered bytheMelanesian Spearhead Group Trade
Agreement willbemore fullyexploited.
(d) What aretheMinistries incharge oftrade policy matters, including formulation,
implementation,enforcementandmonitoring?Howiscoordinationmade?Whataretherespective
rolesoftherelevant Ministries (giveparticular attention totariff policies andother policies directly
affecting exports andimports ofgoods andservices)?
Inthepresent Government structure, thefollowing departments dealwiththedifferent aspects
oftrade policy:
Department ofIndustry, Trade andCommerce: responsible fortheformulation ofdomestic
andinternational trade policy.
Department ofCustoms andTaxes: responsible fortheimplementation ofalltariff policies,
including concessions relating toinvestment incentives.
Department ofForeign Affairs: focalpoint forVanuatu 'srelations withinternational agencies
suchasWTO andUNCTAD, andwithregional trading partners withwhich Vanuatu hassigned bilateral
orregional agreements (substantive aspects oftradepolicy aredealtwithbytheDepartment ofIndustry,
Trade andCommerce).
Department ofCooperatives: training andbusiness-related activities.
Office oftheNational Council ofWomen: business advice, training.
Other public orstatutory bodies dealing withparticular trading sectors: Vanuatu Commodities
Marketing Board (which hassolepurchasing rights forexports ofcopra andcocoa, asstipulated by
theVanuatu Commodities Marketing Board Act); National Tourism Office andNational Planning
Office (which coordinate theimplementation oftheTourism Master Plan); Vanuatu Financial Services
Commission (which regulates andfacilitates thedevelopment oftheoffshore services sector andacts
astheRegistry ofCompanies).
TheCRPenvisages thatthere willbeaMinistry ofTrade andBusiness Development, with
aMinister focusing onpromoting ni-Vanuatu business development. ThisnewMinistry willbegiven
theresponsibility ofcoordinating, interalia,business-related training activities.
(e) Howaretheprivate sector andacademic institutions associated withtheformulation and
conduct oftrade policy?
Theinvolvement oftheprivate sector intheformulation andconduct ofthenational tradepolicy
hasgained significant importance intherecent past,through theparticipation ofvarious economic actors
inthepolicy reform process. TheComprehensive Reform Programme envisages theinvolvement of
theprivate sector inallaspects ofpolicy-making onamore systematic basis. Itmust benoted that,
intheagricultural sector, there havealways beenconsultations withgrowers andproducers inthe
decision-making process. Inthetourism sector, theelaboration ofthe1995 master planalsolargely
involved tourism operators.
TheGovernment hasusedtheservices ofconsultants fromtheUniversity oftheSouth Pacific
(aswellastheSouth Pacific Forum Secretariat) intasks relating tovarious aspects ofnational trade
policy.WT/LDC/HL/12/Add.11
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(f) What aretheinstitutions inyour country thatcanplayaroleintheimplementation of
atrade-related project atthelocal level? State their roles?
Avariety ofinstitutions other thanprivate enterprises canplayaroleintrade-related projects.
Some18enterprisesdealingwithtradeingoodsorservicesareownedbytheStateinproportions
ranging from10percentto100percent. These corporations pertain tosectors suchascattle farming,
livestock development, abattoir, cocoa, coffee, fishing, electricity generation, ruralretail, stevedoring,
airtransport, tourism, andtelecommunications.
TheVanuatu Commodities Marketing Board buysandexports agricultural produce.
Cooperative societies (associated inafederation) carry outvarious commercial transactions
involving thesupply ofgeneral merchandise, particularly inrural areas.
Some church groups andothernon-governmental organizations arealsoinvolved indeveloping
localbusinesses.
(g) What arethemain lawsandregulations dealing withtrade policy -onexports andimports?
Please provide ashort description ofeach.
Thekeyinstruments regulating international trade are:
- theImport Duties (Consolidation) Act(Cap. 91)(Harmonized System of...)
- theImport ofGoods Control Act(Cap. 176)
- theProvincial Government Act1994
- theBusiness Licence Act(Cap. 173)
- theInternational Business Companies Act(1992)
- theRegistration ofUnited Kingdom Trade Marks Act(Cap. 81)andRegistration ofUnited
Kingdom Patents Act(Cap. 80)
- theLabour (Work Permits) Act(Cap. 187)
- theChambers ofCommerce andIndustry ofVanuatu ActNo.4of1995, which provides for
theestablishment oftheChamber ofCommerce andIndustry ofVanuatu andtheestablishment
oflocalChambers ofCommerce andIndustry.
Texts tobeintroduced are:
- aForeign Investment Act(tofacilitate theprocess offoreign investment)
- anewInvestment Code (relevant totrade-related investment)
- anActintroducing abroad-based consumption tax(value-added tax)WT/LDC/HL/12/Add.11
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- aVanuatu Government Property andCommercial Functions Act(toformaNational Investment
Trust tohold shares ofgovernment companies andprescribe standards onwhich their
performance willbejudged).
(h) What arethemain instruments oftrade policy (onexports andimports)?
Imports:
- import duties: theirreduction willbephased overatenyearperiod from theendof1997;
- there isanexcise taxondomestically produced beer;
- VanuatuwillabolishlicensingrequirementsthatcontravenetheWTOAgreementonAgriculture;
- inthefuture, tariffs willbetheprincipal instrument oftrade policy (should anymeasure of
protection bedeemed necessary);
- quantitative restrictions onrice, sugar, tobacco, andcanned mackerel willbeeliminated;
seasonal restrictions onpotatoes willbereplaced byaseasonal tariff;
- service taxandlicence feeswillbeincorporated intocustoms duties;
- import tariffexemptions (subject tojustification andonlyforeconomic activities thatcontribute
significantly totheeconomic development ofVanuatu).
Exports:
- there havebeenexport taxes oncopra (4percent), kava(3percent), beef(2percent), cocoa
(7percent); theywillbeeliminated bymid-1998.
(i) IncaseyouareaWTO Member orareintheprocess ofacceding, howisyour country
preparing itself tocomply withtheWTO Agreements?
TheWTO Working Party ontheAccession ofVanuatu isscheduled tomeetinJanuary 1998.
Vanuatu hasalready accomplished substantial work todevelop itsoffers forgoods andservices in
preparation forbilateral market access negotiations.
Vanuatu isprepared tobring allrelevant lawsandregulations inconformity withitsobligations
under theWTO Agreements. Thismainly involves amendments totheImport Duties Actandtothe
currentrulesoncustomsvaluation.Vanuatuisnotconsideringadoptinganyanti-dumping,countervailing
orsafeguard measures legislation. Itwillrevise existing legislation andintroduce newlegislation to
allow compliance withtheAgreement onTrade-Related Aspects ofIntellectual Property Rights.
(j) What isthestate offamiliarity withtheWTO framework:
- among government andgovernment-related agencies?
- intheprivate sectors?
Anumber ofcivilservants, mainly from theDepartments ofTrade andCustoms, havebeen
familiarized withtheWTO framework through regional ornational training orsensitization seminars
ontheoutcome oftheUruguay Round, organized bytheWTO, UNCTAD, andtheForum Secretariat.
Other officials ininstitutions such astheChamber ofCommerce andIndustry andtheVanuatuWT/LDC/HL/12/Add.11
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Commodities Board havealsoattended training events onthissubject. There ishowever, asubstantial
needforfurther training ofofficials insectoral ortechnical areastowhich some oftheWTO Agreements
arerelevant.
Familiarity withtheWTO framework ismuch more limited intheprivate sector.
(k) What areyour technical assistance requirements withregard toyour compliance with
theWTO Agreements?
TheGovernment ofVanuatu needs technical assistance tocomplete theprocess ofacceding
totheWTO. Thisinvolves, interalia, support ininformal bilateral consultations withAustralia and
NewZealand onVanuatu 'sapplication tojointheWTO, andfurther assistance inamending Vanuatu 's
market access commitments asaresult ofthese bilateral consultations.
Once ithasbecome amember oftheWTO, Vanuatu willneed helpinimplementing its
obligations withrespect tonotification procedures. There willalsobeamajor needfortraining of
officials dealing withtrade policy ingeneral andcustoms matters inparticular. Training seminars
willneedtobeempirical (based onnumerous concrete examples) fortradeandplanning officials, and
more technical forcustoms officials andgovernment lawyers dealing withintellectual property rights
andother legalsubjects.
(l) Inwhich specific areas oftheWTO Agreements doyouhave technical assistance needs
(e.g.market access, agriculture, rules (anti-dumping, subsidies, import licensing, rules oforigin,
safeguards etc.), TBT andSPS, Services, TRIPs)?
Vanuatu willneedtechnical assistance toamend theImport Duties Actinaccordance with
customs-related commitments andwithaviewtomaintaining orimproving Government revenue levels.
Vanuatu willalsoneedtechnical assistance toincorporate intodomestic lawsitsobligations
under theWTO Agreement onImplementation ofArticle VIIoftheGATT 1994.
Vanuatu hasalready approached theWorld Intellectual Property Organization fortechnical
assistance torevise andimprove domestic legislation toallow compliance withtheprovisions ofthe
Agreement onTRIPs. Vanuatu lawsinthisregard willbeWTO-consistent within three years ofthe
country 'saccession.
(m) What isyour assessment ofyour existing trade analysis andnegotiating capacities, both
multilateralandbilateral,inareasalreadycoveredbytheWTOAgreementsandothertrade-related
areas, e.g.competition policy andtrade andenvironment?
Thetradeanalysis capacity inWTO-related areas isrelatively limited, butcould increase over
timeifconsistent efforts arepursued totrainandsensitize relevant officials intheDepartments ofTrade
andCustoms, theReserve Bank ofVanuatu, andtheNational Planning Office.
Thenegotiating capacity ofni-Vanuatu officials hasalready toacertain extent beentested since
thebeginning oftheaccession process. Intheabsence ofacorps ofcommercial diplomats, Vanuatu
however relies onasmall number ofofficials whoarefamiliar enough withthemultilateral trade
framework totakepartintradenegotiations. Thisimplies thatsubstantial external support intheform
ofadvisory services willberequired before aswellasafteraccession.WT/LDC/HL/12/Add.11
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Innewareasofanalysis ornegotiations suchascompetition policy ortradeandtheenvironment,
thenational capacity isverylimited, andni-Vanuatu officials willneedthecooperation ofUNCTAD
insensitization andresearch activities. Itmustbenoted thatthesubject oftrade andtheenvironment
isofparticularinteresttoVanuatu,consideringthepotentialofthecountrywithrespecttotheexportation
of"green" products facing environment-related standards inlarge importing countries, andthe
commitment topromote sustainable development inVanuatu.
B. Obstacles toTrade Expansion
Supply constraints, including institutional bottlenecks
(a) What arethemain bottlenecks inhibiting thedevelopment ofasustained export capacity
ofgoods andservices (e.g.customs facilitation, freight charges, quality management, elimination
ofcumbersomelegalandadministrativeprocedures,paucityofhumanskills,accessatinternational
prices toimported inputs, orinadequate telecommunication, portandtransport facilities etc.)?
- Land-locked countries mayfaceadditional problems, suchashaving toshipusing
costly orunreliable transport andports systems. Incasethisapplies toyour
country, please indicate suchproblems. What kindoftechnical assistance would
helpyouwork outthese problems?
Infrastructure:
Most trading businesses inVanuatu areaffected bydeficiencies inthequality andaccessibility
ofthecountry 'sinfrastructure, particularly withrespect totransport services andmarketing facilities.
Inruralareas, where mostni-Vanuatu live,businesses arefaced withsevere logistical problems, which
entail highcosts andlosses ofcompetitiveness.
Skills andattitudes:
Other obstacles tolocal business development include thelackofbusiness skills, andthe
traditional attitudes ofmost people thatarenotconducive torisk-taking, capital accumulation, and
profit.
Land:
Inorder tofacilitate theuseofleases ofcustom landascollateral forloans, legislation and
amendments tothecountry 'sconstitution willallow theregistration ofcustom landtoestablish clear
ownership oftheland, inorder tominimize theriskofdisputes. (However, itwillnotbepossible
forthelandtopassoutofcustom ownership.)
Shipping:
Shipping iscostly andoften unsteady intheislands. Inthecontext ofcompetition inlocal
maritime transport, theshipping business isshared bytoomany vessels, andprofit margins arenot
largeenough toallow proper maintenance andreplacement ofvessels. Asaresult, exporters orpotential
exporters inthemost remote islands areverydisadvantaged.
(b) Arethere anyinstitutional bottlenecks, which mayimpede theefficient conduct ofyour
country 'strade policies? Provide details. Forexample, what aretheproblems perceived bytheWT/LDC/HL/12/Add.11
Page9
different actors, e.g.exporters, producers, service providers (banks, insurance companies, quality
control,transportersetc.),professionalassociationsandMinistries?Areproblemsmainlyperceived
intheareaof:
(i) human resources
(ii) management oftheinstitution
(iii) financial andmaterial resources
(iv) communication
Themostserious institutional bottleneck hampering tradedevelopment hasbeenthedifficulty
toobtain funding support fromnational lending institutions. TheDevelopment Bank ofVanuatu was
originally established toimprove ni-Vanuatu access tocredit fortrading ventures. However, theBank
hasgradually become similar toacommercial bank, demanding loansecurities thathaveexcluded most
ruralpeople. TheNational Bank ofVanuatu hasalsoconcentrated onlow-risk lending. Onereason
forthisdeficiency ofthefinancial sector hasbeenthefinancial difficulties thatthese institutions have
experienced asaresult ofthepolitical influences theyhavebeensubjected to.Another reason seems
tohavebeenalackofdialogue andcoordination between theGovernment, theprivate sector andthe
concerned financial institutions.
(c) What arethemain bottlenecks toexport diversification ?
Historically, thelong-standing policies ofpromoting small businesses through protection and
import substitution havefailed tostimulate thediversification oftheeconomy. Presently, inthenew
context ofexport-propelled growth, therearestillstructural obstacles tocompetitiveness thatplayagainst
investment, risk-taking anddiversification oftheeconomy. These obstacles include thelackofbusiness
culture andbusiness-oriented motivation among most rural people, thelackofaccess tocapital for
potential investors (such as,forexample, small entrepreneurs intourism-related hospitality), andthe
lackofbusiness andtechnical skills among entrepreneurs.
More generally, thelackofeconomies ofscalethatcanbeachieved ontheouterislands explains
thedifficulties thataremetinseeking profitability innewbusiness ventures. Thesmallness and
remoteness thatcharacterize theeconomic environment ofmostprojects inruralareas andtheouter
islands explain thelimitations toare-specialization oftheeconomy. These island-specific factors are
compounded bythelackoftrade efficiency inthemicroeconomic environment ofenterprises, which
essentially results from thelackofskills andcapital referred toabove.
(d) Ifinvestment intheproduction ofgoods andservices isinadequate, what arethemain
reasons? Please elaborate them (e.g.structural constraints, difficulties inattracting foreign
investment, limited enterprise development, financing, lackofappropriate technology, et.c)
Vanuatu 'sattitude toforeign direct investors hasbeenambivalent inthepast: sometimes
welcoming andsometimes unwelcoming, ifnothostile. Alackofstability intheGovernment 'sattitude
andpolicy (withsometimes theuseofdetrimental arbitrary powers obstructing investment) hastherefore
been among thenegative factors affecting investment. New legislation intheframework ofthe
Comprehensive Reform Programme willprevent these negative influences.
Thelackofasufficient skilled labour force, ofprofessional services, andofanappropriate
trade-related infrastructure arealsofundamental reasons forthereluctance ofmany entrepreneurs who
might havechosen Vanuatu ashostcountry. Thisfactor, however, doesnotseem tohaveaffected
thetourism sector asmuch asithasaffected themanufacturing factor: hotel developers haveoften
provided theirownmanagement skills andcontributed todevelop theirownbasic infrastructure.WT/LDC/HL/12/Add.11
Page10
Among potential investors inactivities oftrade ingoods, aninsufficient access toappropriate
andsteady sources ofsupply hasoften caused alackofinterest inVanuatu asahostcountry. The
absence ofanaffluent localmarket andthedistances tolargemarkets haveofcourse alsoledtoinvestors '
cautiousness.
Itisnowadmitted thatthesystem ofbusiness licence feeshasbeenunfriendly tobusinesses.
The4percenttaxonturnover, withitscascading effect affecting producers athigher value-added
levels, hasdiscouraged specialization.
(e) Isthere anational policy toencourage export-related investment opportunities? Please
elaborate. What arrangements areinplace forreviewing, drafting, negotiating contractual
arrangements withforeign investors?
Vanuatu 'spolicy onforeign investment willbestructured through anewForeign Investment
Act,involving a"one-stop shop" offering investors afriendly interface withthepublic authority. It
willbeaunittoassist investors inalltheirdealings withGovernment departments.
Atpresent, Government mayofferaspecial status toinvestment procedures thatqualify and
havebeensubmitted forapproval. Thisgenerally excludes verysmall projects, although Government
doesnotdiscourage small-scale foreign investment. Some ofthemainincentives toinvestors arethe
absenceofincometax,corporatetax,estateduties,successionduties,capitalgainstaxes,andwithholding
taxes. Projects seenasbeneficial tothecountry canattract customs dutyexemptions. A50percent
reduction onthebusiness licence feecanbegranted tonewinvestors forthefirstthree years.
Asreflected intheComprehensive Reform Programme, political andeconomic stability are
regarded asvitalconditions forattracting foreign investors.
ThenewForeign Investment Board (FIB) willreview andmake recommendations oncontractual
arrangements withforeign investors. TheFIBwillbethesoleinstitution empowered todoso.
(f) What arethemain obstacles tothetransfer, development andacquisition oftechnology?
Isthere anynational policy/strategy inthisarea? Please elaborate.
There arenoobstacles tothetransfer oftechnology inrelation toforeign investment. Alimiting
factor, however, isthescarcity oftheskilled labour forcethatwillbeabletotakepartintheexploitation
ormaintenance oftransferred technology.
There isnonational policy ontransfers oftechnology. There is,however, aneffort toconsider
theimpact oftechnology transfers ontheenvironment inthecontext ofthenational policy forsustainable
development.
(g) What areyour technical assistance orother assistance needs with respect tosupply
constraints?
There isageneral needfortechnical assistance forimproving themicroeconomic trading
environment andincreasing trade efficiency inallparts ofthecountry. Thisincludes:
- introducing aninter-island cargo planning system thatwillincrease thereliability ofdomestic
maritime transport andcontribute tothegeneral competitiveness ofthemostremote parts of
thecountry;WT/LDC/HL/12/Add.11
Page11
- introducing UNCTAD 'sAutomated System forCustoms Data(ASYCUDA) withaviewto
increasing theefficiency ofcustoms services forthebenefit oftraders aswellasGovernment;
- studying thepossibility ofdeveloping (orstrengthening) micro-credit facilities forthebenefit
ofsmall enterprises, particularly inrural areas;
- supporting themove toestablish acredit guarantee scheme;
- establishing aTrade Point inPort-Vila toenhance traders 'access totheglobal network of
information thatwillallow cost-efficient promotion ofproducts andtrading opportunities;
- amulti-subjectprogrammeoftrainingandsensitizationforenterprisesandnationaltrade-support
organizations willbenecessary toallow afullunderstanding oftheabove-listed facilities.
Trade promotion andtrade support services
(h) Doyour enterprises, especially small andmedium enterprises, experience difficulties in
expanding their exports? What arethese problems inthemajor export sectors?
Thedifficulties faced bysmall enterprises inexpanding theirexports arecaused bythemain
structural weaknesses thathavebeendescribed above, namely, thelackofadequate infrastructure,
thelackofentrepreneurial andmanagerial skills, theinsufficient access tofinancing facilities, andthe
lackofaccess toinformation onmarkets. Considering theseverity ofthese bottlenecks duetothe
consequences ofisland-specific smallness andremoteness, trade development ishampered although
thecontext oftrade liberalization andglobalization offers newtrading opportunities. Thisiswhya
good understanding ofthiscontext anditsreflection inthenational trade policy, though necessary,
willnotbeenough toenhance thechances ofthecountry toexpand itstrade ingoods andservices
andavoid marginalization from theglobal economy.
Enterprises intheagricultural sector havegreatdifficulties tofindadequate orsufficient trade
financing intheabsence ofamechanism tomake micro-credit facilities available tosmall
producers/exporters.
Fishing enterprises, particularly those intheouter islands, havenoscope forestablishing
processing activities intheabsence offunding support andconsidering therisksofunsteady deliveries
between theislands andabroad.
Small potential entrepreneurs intourism-related activities (bungalows, localrestaurants, etc.)
areoften unable torealize small tourism projects intheabsence ofwillingness orcapacity, onthepart
ofthefinancial sector, tosupport theirventures, oreventohelpthem toimprove theirprojects.
(i) Whataretheproblemsforyourenterprisesinobtainingreliableandup-to-dateinformation
onexport/import business opportunities?
Thefewlarge enterprises operating inthecountry donotfacemajor problems inacceding
totrade information, evenwithout using theexisting facilities provided bytheDepartment ofTrade
ortheChamber ofCommerce andIndustry. Most other enterprises, however, aretoosmall andremote
from international trade circles tobeabletoobtain information onvitalfactssuchasthestateof
competition attheregional orinternational levels, therelevant foreign markets andtheirevolution,
orpossibilities forpurchasing foreign supplies atbetter terms. Thisisrelevant tocommodities markets
aswellastrade inmanufactured products (foreign procurement).WT/LDC/HL/12/Add.11
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Inorder tocomplement theefforts thataremade andwillbepursued bytheGovernment and
thechamber ofCommerce andIndustry toimprove access totrade information, itisdesirable that
serious consideration begiven totheestablishment ofaTrade Point inPort-Vila (andtheorganization
ofrelevant training andsensitization accordingly) inorder toallow small operators tohaveaccess to
appropriate information ontheinternational markets onwhich theyshould bepresent, andpromote
theirproducts through Internet atalowcost.
(j) Canyour enterprises offer products ofinternationally acceptable design, quality and
packaging toforeign buyers? Ifno,what aretheproblems?
Toalarge extent, quality andrelated standards aredetermined onanadhocbasis directly
between suppliers andforeign importers. There ishowever acommitment, under theComprehensive
Reform Programme, tostrengthen agricultural inspection services forrelevant internationally traded
products.
Considering thepotential forexport ofnatural products thatwillfaceenvironment or
health-related standards inmany importing countries, itisintheinterest ofVanuatu tobewellinformed
about theevolution of"green consumerism" andrelated trends, andwhenever thiswillbepossible,
totakepartinthedefinition ofquality, labelling andpackaging standards attheinternational level.
Thework ofUNCTAD intheareaoftrade andtheenvironment isrelevant toVanuatu inthisrespect.
(k) What problems, other thaninterms oftrade policy, doyouanticipate indeveloping the
export ofservices (e.g.computer software, tourism)?
Twokeysectors ofinternational trade inservices, tourism andoffshore services, arealready
welldeveloped inVanuatu, andprobably offer thegreatest potential forexpansion offoreign
exchange-earning possibilities.
Themainproblems relevant totheexpansion oftourism services arethedifficulties toattract
international investors todevelop thehotelandrelated infrastructure ofthecountry, andtheobstacles
faced bysmall entrepreneurs indeveloping tourism-related ventures. Efforts toimprove theeconomic
andinfrastructural environment ofthecountry, asenvisaged inthetourism master plan, aretherefore
ofutmost importance, considering thatthepotential interest infurther developing tourism inVanuatu
already exists (seethesuccess oftheexisting bungalow rental sector intheouter islands).
Developing theoffshore financial sector willtoagreater extent depend onanumber of
policy-related step, which thegovernment isdesirous oftaking (political stability, enhanced
competitiveness oftheoffshore products, human resource development).
Development ofother international services suchascomputer services orsupport services to
thefilmindustry willdepend ontheemergence ofagreater awareness, among ni-Vanuatu, ofthemerits
ofadiversified service economy, which willimply improvements orexpansion ofdomestic and
professional services.
(l) What arethetechnical/professional problems encountered bytrade support institutions
(e.g.trade promotion council, chamber ofcommerce, exporters association, etc.)inyourcountry
providing their services toexport/import enterprises?
Themain national institutions thatcanprovide support totrading enterprises inVanuatu are
theVanuatu Commodities Marketing Board, theChamber ofCommerce andIndustry, andthe
Development Bank ofVanuatu (export promotion willalsobeamong theresponsibilities ofthenewWT/LDC/HL/12/Add.11
Page13
Foreign Investment Board). Theexpertise ofthese institutions aslimited bythesmallness oftheir
technical staff, andtheirlimited financial means donotallow themtoprovide thesustained assistance
thatsmall operators would expect (particularly intheouter islands).
Technical assistance willbeneeded bythenewMinistry forBusiness Services todevelop the
supporting capacity ofthisinstitution.
(m) Whatproblemsanddeficienciesexperiencedbyenterprisesintheirinternationalpurchasing
andinventory management?
International purchasing, likemosttransactions involving ni-Vanuatu enterprises, ifany,of
small ormedium sizehaverationalized theirinternational purchasing transactions andseekthebest
purchasing terms onaregular andsystematic basis. Purchasing channels areoftenverylimited anyway,
considering theremoteness ofthecountry from large transport routes. Forinternational purchases
thatarenotcompetitively sourced areassociated withhightransport costsbecause ofthegeographical
situation ofthecountry, patterns ofinternational purchases involving highglobal costs often hinder
global competitiveness, including forexport activities thathaveanimported input content.
Inventory management isrelatively basicamong mostmedium-sized enterprises, andvirtually
non-existent among most small enterprises.
(n) What arethepresent availability andarrangements fortrade finance facilities (e.g.export
credit guarantees, etc.)? Arethere anyperceived deficiencies inthisarea?
There isasizeable gapbetween thecommercial banking activities thatarecarried outbythe
financial institutions (mainly withrisk-free borrowers) andthefewinformal credit arrangements that
existwithin communities. There isanimportant needtofillthisgapbyproviding ruralpeople with
accessiblelong-termcredit,withoutwhichmanyviable(thoughsmall-scaled)projectscannotberealized.
Itisrecognized thattheformal banking system cannot meetalltheneeds oftheruralpopulation.
TheDevelopment Bank ofVanuatu nolonger provides lowinterest loans butoperates ofafully
commercial basis. Measures topromote small-scale andinformal lending arenecessary.
TheComprehensive Reform Programme envisages todiversify therange oflending options
forsmall businesses, including micro-credit facilities. Itproposes thatanewentity becreated tooffer
acredit guarantee scheme forsmall business loans andbusiness advisory services. Theloanguarantee
scheme should allow commercial banks toshare withtheGovernment theriskoflending tosmall
businesses forproductive investment.
There isalsoaproject tointroduce supervision ofthecredit unions andallow them totake
anactive partinthesupply ofcredit tosmall enterprises.
(o) What arethemain problems inthewayofimproving export/import management skills
ofyour business enterprises? Doyouhave training programmes inyour country? What are
thedeficiencies?
Weaknesses inthecountry 'ssystem ofeducation andtraining costmuch totheprivate sector
andhamper economic development. Skilled workers arescarce inVanuatu, which entails ahighdegree
ofdependence oncostly expatriate labour.WT/LDC/HL/12/Add.11
Page14
TheGovernment iscommitted toimprove theeducational system intheperspective ofbusiness
development.
Training programmes formanagement skills areoffered bytheGovernment 'sTraining Centre
(forcivilservants), aswellastheInstitut National deTechnologie duVanuatu (INTV).
TheCRPenvisages thatthenewMinistry ofTrade andBusiness Development willbegiven
theresponsibility ofcoordinating allbusiness training activities, including those oftheChamber of
Commerce andIndustry. TheCRPalsoplans thatahuman resource development planwillbeprepared,
afterwhich itwillbenecessary toorganize funding arrangements forvocational training. Astrategy
toinvolve moreni-Vanuatu inbusiness toexploit competitive market opportunities isofvitalimportance
forthecountry.
(p) Does your trade representation service actively promote your trade? What arethe
weaknesses?
Vanuatu 'stradepromotion isconducted onanadhocbasisthrough thecountry 'sparticipation
intrade fairsandother events organized bytheChamber ofCommerce andIndustry orprofessional
associations. Vanuatu hasnotrade representative attached toanyofitsdiplomatic missions abroad.
Forthepromotion oftourism activities, Vanuatu isrepresented bytheTourism Council oftheSouth
Pacific, ofwhich itisamember.
(q) Briefly describe yourtechnical assistance needs intheareaoftrade promotion andsupport
services?
Considering theutmost importance oftraining andsensitization activities toenhance business
management andvocational skills andimprove trade promotion andsupport services, there isaneed
formulti-faceted technical assistance, atleastthrough theprovision ofperiodic advisory services, and
ideally through theassignment ofaresident adviser foraperiod oftwoyears.
Aresident adviser could carry outthree types oftechnical cooperation activities topromote
andsupport trade development andcould assist allforeign exchange-earning sectors except tourism
andoffshore services:
- training andadvisory services intheestablishment andmanagement ofbusinesses (including
theareaofimport management);
- establishment andoperation ofaTrade Point, withrelevant training togroups ofpotential users;
- attracting newinvestors byapromotion campaign regionally andinternationally.
(Thesame resident adviser could provide assistance intrade policy matters inthecontext of
accession toWTO.)
Market access
(r) What areyour main market access problems?
Vanuatu faces thechallenge oferosion inEU-granted trade preferences fortreecropproducts
(copra, coffee, kava). Considering thegradual alignment ofsuchpreferences withGSPpreference
levels, Vanuatu willeventually facesevere competition fromlargecopra producers suchasBangladesh.WT/LDC/HL/12/Add.11
Page15
(s) What specific problems orbarriers, andinwhich countries, aremost troublesome for
your exporters?
Market access hasnotdiminished, butthekeyissue isthatofcompetitiveness onexisting
markets, which entails thedesirability ofacceding tonewmarkets where thecompetitive pressure will
belower. Envisaging anewdirection oftrade inthecontext ofglobal trade liberalization anderosion
oftrade preferences istherefore themain problem faced byVanuatu exporters ofcommodities. The
lackofinformation onmarkets ingeneral andnewtrading opportunities on"niche" markets inparticular
isalimiting factor, andexplains thelackoftrade expansion anddiversification.
(t) Regional andsub-regional trading arrangements (RTAs): please listRTAs towhich your
country belongs. Areyousatisfied withtheperformance withthese RTAs? Please state the
problems ofeach. Doyouhave suggestions onhowtosolve these?
Vanuatu isamember oftheMelanesian Spearhead Group Preferential Trade Agreement with
Papua NewGuinea andtheSolomon Islands (andeventually, Fiji). TheMSG Trade Agreement, which
comprises 150tariff lines, isWTO-consistent. TheAgreement states theintention ofitsmembers to
eliminate trade barriers onsubstantially alltrade tofacilitate thefreeflowofgoods andservices.
SPARTECA, aschedule oftrade preferences between Australia andNewZealand andSouth
Pacific Forum members, willbegradually "eroded" through thealignment ofthepreference with
Australia andNewZealand 'sGSPlevels asaresult oftheUruguay Round.
(u) Arethereanyproblemsinutilizingexistingmarketaccesspreferences,suchasGSP,GSTP?
Please state thenature ofproblems relating toeachofthese.
Theonlyproblem, inthisregard, concerns theapplication ofrules oforigin. When WTO
andtheWorld Customs Organization havecompleted theirformulation ofnewcriteria fortheapplication
ofrulesoforigin inthelightoftherelevant WTO Agreement, Vanuatu willformulate itsownmodalities
forcomplying withrules oforigin obligations.
(v) What areyour technical assistance needs withrespect tomarket access?
Abetter knowledge oftheGeneralized System ofPreferences andtheconditions attached to
itsfunctioning (rules oforigin inparticular) isdesirable andimplies theprovision oftechnical assistance
intheform ofadvisory services andtraining/sensitization seminars.
C. Technical Assistance
(a) Totheextent thiskindofinformation iseasily available, could youplease briefly describe
what trade-related assistance youhave received over thepastfiveyears from bilateral and
multilateral sources andwhatprojects/programmes arepresently under consideration inthisarea?
Theonlytrade-related technical assistance thatVanuatu hasreceived inthepastfiveyears was
theprovision ofatrade adviser bytheCommonwealth Fund forTechnical Cooperation (CFTC) for
oneyearin1993-1994.WT/LDC/HL/12/Add.11
Page16
(b) Please summarize your technical assistance needs aswellasother needs asreflected in
thecheck-list. Please rank them interms ofpriority.
Technical assistance needs inconnection withVanuatu 'stradedevelopment canbesummarized
intothree areas ofintervention:
Advisory services:
With regard toaccession toWTO, changes tolawsandregulations inthelight ofWTO
obligations, bilateral andmultilateral trade negotiations (including intheEU-ACP framework);
Technical assistance:
Fortheestablishment ofaTrade Point, theimprovement oftradeefficiency (maritime transport,
customs, micro-finance), thepromotion offoreign investment;
Training:
Intradepolicy, tradeefficiency (including theuseoftradeinformation technology), andbusiness
development matters.
(c) Inthelight oftheinformation youhave been abletoprovide sofarinresponse tothe
questions inthischeck-list, what types ofinformation are,inyour view, stillmissing orcould
beimproved upon? Inorder toassist youinproviding thismissing information, would youneed
technical assistance?
Inthelightoftheproblemsthathavebeendescribedabove,theGovernmentofVanuatuconsiders
thatasignificant steptoencourage abetter participation ofVanuatu intheglobal economy could be
achieved through thedevelopment ofanational publication ontheimplications ofglobalization for
Vanuatu. Suchpublication should explain, inanon-theoretical language, theconditions thatthecountry
should meet inorder toexpand itstrading possibilities andachieve re-specialization withaview to
enhancing standards ofliving. Itwillbeentirely illustrated withobservations andsituations relevant
toVanuatu andcould contain meaningful comparative aspects referring toothersmall island developing
States, particularly those thathavealready demonstrated success inexport-led development.
Thetargetpopulationwouldprimarilyconsistofschoolleavers,socialscienceteachers,potential
entrepreneurs, senior civilservants andlegislators, butcould alsoencompass awider public. The
publication, intheformofabooknotexceeding 100pages, could becommercially produced andsold
atasmall price, oralternatively distributed freeofcharge byanational authority totherelevant target
population.VanuatuwouldliketoconsidertherealizationofsuchprojectincooperationwithUNCTAD.
While UNCTAD would coordinate therealization ofthepublication (with asmuch localsubstantive
input aspossible, suchasrelevant national research findings), thepublishers andprinters ofthebook
could befound inVanuatu.
(d) Does your country have thetechnological capacity andhuman resource tomake useof
thenewinformation/communication technology toolssuchasCD-Rom, theInternet etc.? What
assistance would youneedtoenable yourcountry tousethese toolsinthecontext oftraining and,
more generally, inthecontext oftrade development?
Internet isavailable inVanuatu, butfewni-Vanuatu areyetfamiliar withitandabletooperate
Internet applications. Inthecontext oftheestablishment ofaTrade Point, thenecessary training wouldWT/LDC/HL/12/Add.11
Page17
beconducted inorder toenable relevant officials inthepublic andprivate sectors tooperate thetrade
information component oftheTrade Point.WT/LDC/HL/12/Add.11
Page18
Integrated Response
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion A(k):
Technical requirements asregards
compliance withWTO Agreements
TheGovernment ofVanuatu needs
technical assistance tocomplete the
process ofacceding toWTO. This
involves, interalia,support in
informal bilateral consultations with
Australia andNewZealand on
Vanuatu 'sapplication tojointhe
WTO,and further assistance in
amending Vanuatu 'smarket access
commitments asaresult ofthese
bilateral consultationsWTO -Assistance atthetechnical level
willbeprovided toVanuatu in
itsaccession process tothe
WTO. Thetiming willbein
lightofprogress intheaccession
process.
UNCTADUNCTAD willassist inthisregard
(with theassistance oftheForum
Secretariat) through studies,
advisory services andtraining.*
Once ithasbecome aWTO member
Vanuatu willneedhelpin
implementing itsobligations with
respect tonotification procedures.WTO Assistance willbeprovided to
Vanuatu forthereview andreform
ofitsregulatory system in
conformity totheWTO rules.
*Funds arerequested.WT/LDC/HL/12/Add.11
Page19
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(k)(cont.):
There willbealsoamajor need for
training officials dealing withtrade
policy ingeneral andincustoms
matters inparticular.
Training seminars willneedtobe
empirical (based onnumerous
examples) fortrade andplanning
officials ,andmore technical for
customs officials andgovernment
lawyers dealing withintellectual
property rights andother legal
subjects.UNCTAD UNCTAD toundertake training
seminars torespond tothis
request.*
IMF FAD willprovide assistance in(1)
reviewing customs legislation and
regulations, including thecustoms
valuation system, toadapt them to
WTO requirements; (2)reforming
theimport tariff; and(3)advising
oncomputerization issues.
WTO Anational seminar onthe
multilateral trading system willbe
undertaken
(1998 )
-Specialized regional seminars
and/or workshops onWTO
provisions willbeorganized
(1998 and1999) forAsiaand
Pacific region.
-athree-week trade policy course
forEnglish-speaking Least-
developed countries willbeheld
(1998 and1999).
*Funds arerequested.WT/LDC/HL/12/Add.11
Page20
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion A(l):
Specific technical assistance needs:
-Vanuatu willneedtechnical
assistance toamend theImport Duties
Actinaccordance withcustoms-
related commitments andwiththe
viewtomaintaining orimproving
government revenue levels.UNCTAD UNCTAD toassist the
Government ofVanuatu in
simulating thefiscal andtrade
policy implications of
commitments fortariff changes,
andaccordingly, advise onthe
revision ofVanuatu 'stariff
schedules inthelightofthese
commitments.*
IMF SeeA(k)
-Vanuatu willalsoneedtechnical
assistance toincorporate intodomestic
lawsitsobligations under theWTO
Agreement onimplementation of
Article VIIoftheGATT 1994.WTO Assistance willbeprovided to
Vanuatu Customs andExcise
Department foraligning its
customs valuation legislation with
theWTO Agreement. Thetiming
willbeinlightofprogress inthe
accession process.
Vanuatu hasalready approached the
WIPO fortechnical assistance to
revise andimprove domestic
legislation toallow compliance with
theprovisions oftheAgreement on
TRIPs.Vanuatu Laws inthisregard
willbeWTO-consistent within 3
years ofthecountry 'saccessionWTO Assistance willbeextended to
Vanuatu inaccordance withthe
cooperation Agreement withWIPO
andWTO providing forWIPO
legal-technical assistance relating
toTRIPS Agreement. Thetiming
willbeinthelightofprogress in
theaccession process.
*Funds arerequested.WT/LDC/HL/12/Add.11
Page21
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion A(m):
Assessment oftheexisting trade
analysis andnegotiating capacities
Thetrade analysis capacity inWTO-
related areas isrelatively limited,but
could increase overtimeifconsistent
efforts arepursued totrainand
sensitize relevant officials inthe
Departments ofTrade and
customs,the Reserve Bank of
Vanuatu, andthenational Planning
Office.UNCTAD Capacity-building relevant totrade
analysis willbeincorporated inthe
national training programme (trade
policy component), mentioned in
A(k).*
WTO Thetrade policy course (seeA
(k)above) willcontain ageneral
training forenhancing negotiating
skills forparticipation in
multilateral trade negotiations.
Thenegotiating capacity ofni-
Vanuatu officials hasalready toa
certain extent beentested since the
beginning oftheaccession process. In
theabsence ofacorps ofcommercial
diplomats,Vanuatu however relies on
asmall number ofofficials whoare
familiar enough withthemultilateral
trade framework totakepartintrade
negotiations.This implies that
substantial external support inthe
form ofadvisory services willbe
required before aswellasafter
accession.UNCTAD UNCTAD toprovide advisory
services.*
WTO Please refertoWTO response
immediately above.
*Funds arerequested.WT/LDC/HL/12/Add.11
Page22
Technical assistance needs identified
inthequestionnaireOrganization Response
Question A(m) (cont.)
Innewareas ofanalysis of
negotiations suchascompetition
policy ortrade andenvironment ,the
national capacity isverylimited and
Ni-Vanuatu officials willneedthe
cooperation ofUNCTAD in
sensitization andresearch activities. It
must benoted thatthesubject oftrade
andtheenvironment isofparticular
interest toVanuatu, considering the
potential ofthecountry withrespect
totheexportation of"green"
products facing environment-related
standards inlarge importing counties,
andthecommitment topromote
sustainable development inVanuatu.UNCTAD UNCTAD torespond tothese
individual requests through, inter
alia,studies andworkshops.*
*Funds arerequested.WT/LDC/HL/12/Add.11
Page23
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion B(g):
Technical assistance needs asregards
tosupply constraints
There isageneral needfortechnical
assistance forimproving the
microeconomic trading environment
andincreasing trade efficiency inall
parts ofthecountry.This includes:Agencies indicated awillingness to
cooperate withthegovernment to
identify specific needs in
operational terms andestablish
priorities. Further consultations
withthegovernment willbe
necessary todevelop specific
projects andprogrammes andto
explore funding.
-introducing aninter-island cargo
planning system thatwillincrease the
reliability ofdomestic maritime
transport andcontribute tothegeneral
competitiveness ofthemost remote
parts ofthecountry
-introducing UNCTAD 'sAutomated
System forCustoms Data
(ASYCUDA) withtheviewof
increasing theefficiency ofcustoms
services forthebenefit oftraders as
wellasGovernmentUNCTAD Pipeline project tobeimplemented
regionally through theForum
Secretariat.
-studying thepossibility ofdeveloping
(orstrengthening) micro-credit
facilities forthebenefit ofsmall
enterprises, particularly inrural areas
Supporting themove toestablish a
credit guarantee scheme.
-establishing aTrade point inPort-
Vilatoenhance trader 'saccess tothe
global network ofinformation that
willallow cost-efficient promotion of
products andtrading opportunities.ITC/
UNCTADTheestablishment ofaTradepoint
willbeincorporated inanational
program oftechnical cooperation
under which ITCwillprovide
specific components intrade
information management.
*Funds arerequested.WT/LDC/HL/12/Add.11
Page24
Technical assistance needs identified
inthequestionnaireOrganization Response
Question B(g)(cont.) :
-amulti-subject programme of
training andsensibilization for
enterprises andnational trade-support
organizations willbenecessary to
allow afullunderstanding ofthe
above-listed facilities.UNCTAD/
ITCSeeimmediately above.
Anational training programme
including training ofbusinessmen
willbeincorporated inthefuture
National Trade Development
Programme.*
*Funds arerequested.WT/LDC/HL/12/Add.11
Page25
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion B(q):
Technical assistance needs intrade
promotion andsupport servicesAgencies indicated awillingness to
cooperate withthegovernment to
identify specific needs in
operational terms andestablish
priorities. Further consultations
withthegovernment willbe
necessary todevelop specific
projects andprogrammes andto
explore funding.
Consider theutmost importance of
training andsensitization activities to
enhance business management and
vocational skills andimprove trade
promotion andsupport services,there
isaneedformulti-faceted technical
assistance ,atleastthrough the
provision ofperiodic advisory
services ,andideally through the
assignment ofaresident adviser fora
period oftwoyears.
Aresident adviser could carry out
three types oftechnical cooperation
activities topromote andsupport trade
development andcould assist all
foreign exchange-earning sectors
except tourism andoffshore services:
-training andadvisory services inthe
establishment andmanagement of
businesses (including theareaof
import management)
-establishment andoperation ofa
Trade Point,with relevant training to
groups ofpotential users
-attracting newinvestors bya
promotion campaign regionally and
internationally.
(Thesame resident adviser could
provide assistance intrade policy
matters inthecontext ofaccession of
WTO)ITC ITCispresently implementing a
regional project inimport
management which benefits
Vanuatu.
Thisprogramme willbeextended
ifrequested.*
*Funds arerequested.WT/LDC/HL/12/Add.11
Page26
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion B(v):
Technical assistance inmarket access
Abetter knowledge ofthegeneralized
System ofpreferences andthe
conditions attached toitsfunctioning
(rules oforigin inparticular) is
desirable andimplies theprovision of
technical assistance intheform of
advisory services and
training/sensitization seminarsUNCTAD UNCTAD torespond inthe
context ofitsRegional Programme
forAsiaandthePacific.*
*Funds arerequested.WT/LDC/HL/12/Add.11
Page27
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion C(b):
Summary oftechnical assistance needs
according topriority
Technical assistance needs in
connection withVanuatu 'strade
development canbesummarized into
three areas ofintervention:
Advisory services :withregard to
accession toWTO, changes tolaws
andregulations inthelightof
obligations, bilateral andmultilateral
trade negotiations (including inthe
EU/ACP framework)WTO Assistance atthetechnical level
willbeprovided toVanuatu inits
accession process totheWTO.
Thetiming willbeinlightof
progress intheaccession process.
Assistance willbeprovided to
Vanuatu forthereview andreform
ofitsregulatory system in
conformity toWTO rules.
Anational seminar onthe
multilateral trading system willbe
undertaken.
(1998)
-Specialized regional seminars
and/or workshops onWTO
provisions willbeorganized
(1998 and1999) forAsiaand
thePacific region.
-Athree-week trade-policy
course forEnglish-speaking
least-developed countries will
beheld(1998 and1999). This
trade-policy course willcontain
ageneral training for
enhancing negotiating skills for
participation inmultilateral
trade negotiations.
*Funds arerequested.WT/LDC/HL/12/Add.11
Page28
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
Assistance willbeprovided to
Vanuatu Customs andExcise
Department foraligning its
customs valuation legislation with
theWTO Agreement. Thetiming
willbeinthelightofprogress in
theaccession process.
Assistance asnecessary willbe
extended toVanuatu inaccordance
withthecooperation Agreement
withWIPO andWTO providing
forWIPO legal-technical assistance
relating toTRIPS Agreement. The
timing willbeinthelightof
progress intheaccession process.*
IMF AtVanuatu 'srequest, FAD will
provide assistance in(1)reviewing
customs legislation and
regulations, including thecustoms
valuation system, toadapt them to
WTO requirements; (2)reforming
theimport tariff; and(3)advising
oncomputerization issues.
UNCTAD UNCTAD willassist inthisregard
(with theassistance oftheForum
Secretariat) through studies,
advisory services andtraining.*
Technical assistance: forthe
establishment ofatrade point, the
improvement oftrade efficiency
(maritime transport, customs, micro-
finance), thepromotion offoreign
investmentITC/
UNCTADTheestablishment ofaTradepoint
willbeincorporated inanational
program oftechnical cooperation
under which ITCwillprovide
specific components intrade
information management.
Anational training programme
including training ofbusinessmen
willbeincorporated inthefuture
National Trade Development
Programme.*
*Funds arerequested.WT/LDC/HL/12/Add.11
Page29
Technical assistance needs identified
inthequestionnaireOrganization Response
Question C(b)(cont.) :
UNCTAD Fortheintroduction of
UNCTAD 'sAutomated System
forCustoms Data(ASYCUDA)
withtheviewofincreasing the
efficiency ofcustoms services for
thebenefit oftraders aswellas
government, there isapipeline
project tobeimplemented
regionally through theForum
Secretariat.
Training: intrade policy, trade
efficiency (including theuseoftrade
information technology), andbusiness
development matters.WTO Please refertoanswer immediately
above (under "Advisory services").
Thetrade policy course will
include ageneral training for
enhancing negotiating skills for
participation inmultilateral trade
negotiations.
UNCTAD Please refertoanswer immediately
above (under "Advisory services").
Capacity-building relevant totrade
analysis willbeincorporated inthe
national training programme (trade
policy component), mentioned in
A(k), above.*
*Funds arerequested.WT/LDC/HL/12/Add.11
Page30
Technical assistance needs identified
inthequestionnaireOrganization Response
Inreply toquestion C(d):
Technology capacity andhuman
resources
Internet isavailable inVanuatu,but
fewni-Vanuatu areyetfamiliar with
itandabletooperate Internet
applications.In thecontext ofthe
establishment ofaTrade point, the
necessary training would beconducted
inorder toenable relevant officials in
thepublic andprivate sectors to
operate thetrade information
component ofthetrade PointWTO TheWTO willprovide one
computer totheDepartment of
Industry, Trade andCommerce.
Thiswillinclude alink-up tothe
Internet. (1998)
Training onaccess anduseof
Internet resources andofCD-Roms
willbeprovided. (1998)
UNCTAD/
ITCPlease refertothetworesponses
toB(g).
*Funds arerequested.