 
 RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/VUT/5 
3 September 1998 
 (98-3372) 
Working Party on the 
Accession of Vanuatu Original:   English 
 
 
 
ACCESSION OF VANUATU 
 
Communication from Vanuatu  
 
 
 The following communication, dated 7 August 19 98, has been received  from the Department 
of Trade, Industry and Investment of th e Government of the Republic of Vanuatu. 
 
_______________ 
 
  The Marrakesh Agreement Establishing the World Trade Organization and the Multilateral 
Agreements annexed to it contai n transitional periods for delaying the application of some 
Agreements or some of the provisions of some  Agreements.  Least-developed countries such as 
Vanuatu are exempted from certain obligations such as reduction commitments under the Agreement 
on Agriculture.  Also, some Agreements contain transitional arrangements for phasing out measures 
that may not be in conformity with WTO rules.   Upon accession to the World Trade Organization, the Republic of Vanuatu will assume obligations and acquire rights un der the Agreement Establishing the WTO and under the Multilateral 
Agreements and Understandings a nnexed to the WTO Agreement. 
  The Government has, during the informal meeti ng in June 1998, indicated that it is willing to 
bring its laws into conformity w ith its WTO obligations by the date  of accession but that transitional 
arrangements will be necessary in order to  implement several protocol measures. 
 
 The discussion below considers first several of the important protocol issues including 
TRIPS, Agreement on Customs Valuation, SPS and TB T Agreements and outlines the justification for 
transitional arrangements.  In the second section,  non-tariff measures (NTMs) and other issues 
specific to the case of  Vanuatu ar e considered and what actions the Government of Vanuatu will take 
to bring its trade regime into conformity with its WTO obligations under va rious covered agreements. 
The third section consolidates, in time frame matrix  format, the proposed actions of the Government 
to assure compliance with obligatio ns outlined in sections I and II. 
  
I. GENERAL PROTOCOL ISSUES  
A. IMPLEMENTATION
 OF THE  TRIPS  AGREEMENT 
 As Vanuatu has mentioned in previous subm issions to the Working Party it maintains two 
pieces of British legislation that it inherited from th e colonial period.  These are the Registration of 
United Kingdom Trade Marks Act [Cap.81] and Re gistration of the United Kingdom Patents Act 
[Cap.80].  This legislation predates the TRIPS Agre ement and will be revised with assistance of the 
Australian Intellectual Property Organisation (AIPO).  Technical assistance from WIPO was formally WT/ACC/SPEC/VUT/5 
Page 2  
 
 requested in June 1997 and while draft Pacific legi slation has been forwarded, there has been no 
consultation  from WIPO experts.  Ho wever, WIPO has recently indicated  that it is not in a position to 
respond to the request for technical assistance at this  point.  As a result, the Government of Vanuatu 
has requested technical assistance from the Australia n Intellectual Property Organisation.  Once this 
technical assistance has been provided we expect to bring legislation before the House in the 
November 1998 sitting of Parliament.  However, le gislation will extend beyond the introduction of 
new intellectual property legislation as there will  have to be numerous amendments to related 
legislation.    Vanuatu is keenly aware that changes to inte llectual property legislation are necessary but by 
no means sufficient to assure full conformity with WT O obligations.  There will need to be revisions 
to the Criminal Code to assure conformity with Article 61 as well as revisions to the Customs Act to 
assure that customs officers have adequate legal au thority to facilitate the protection of intellectual 
property rights holders from count erfeits and trade mark piracy.  There will also be a need to 
introduce legislation to protect confidential info rmation which does not exist at the moment in 
Vanuatu. 
  There will also need to be training of officer s in several government departments.  The most 
important is the training and recruitment of an officer in the Vanuatu Financial Services Commission which will be charged with the day-to-day implemen tation of patents and trademarks administration. 
Other offices that will require training will include  the Department of Customs, the Department of 
Trade and the Police and Attorney-General’s cham bers.  There is a gene ral lack of knowledge 
throughout these key divisions over the obligations that  the TRIPS Agreement creates.  It is for this 
reason that the Government of Vanuatu seeks a two- year period in which it will employ and train the 
relevant officials to a point where the legislation can be effectively implemented.  While the passage 
of legislation can be achieved by the end of 1998, the implementation of the infrastructure and 
ancillary facilities will require two years.  It is felt that the obligations under the TRIPS Agreement 
can be fully operational by 1 March 2001, which is  well in advance of the date that LLDCs have 
under the Agreement to implement their obligations.   B. IMPLEMENTATION
 OF THE  AGREEMENT  ON CUSTOMS  VALUATION 
 At present Vanuatu employs the Brussels system  of valuation as outlined in Schedule III of 
the Import Duties (Consolidation) Act [Cap.91].  The Customs Department implements these laws 
and has generally had very few valuation disputes.  It is the intention of the Government of Vanuatu 
to bring legislation before Parliament in the November session that will bring Schedule III provisions 
into conformity with its obligations un der the Agreement on Customs Valuation.  
 
 While changes in relevant legislation can be  brought soon to the existing system, the training 
of officials in this area is time consuming.  This is especially so given that officials have very little 
practical experience with any valuation systems, and no experience with a system as complex as the new WTO rules in the area.  Moreover, there will be a need to amend the current computer system to 
assure that the correct base is taxed.  There ar e at present no manuals and regulations on the conduct 
of valuation for customs purposes.  
 
 Vanuatu will be seeking technical assistance from WTO Members, the Forum Secretariat, 
UNCTAD, as well as the WCO to help bring its ex isting system into conformity with the Customs 
Valuation Agreement.  Vanuatu, with financia l assistance from the European Communities and 
technical assistance from UNCTA D, will be introducing the ASYCUDA programme in 1999 which 
will also facilitate the proper implementation of a customs valuation system. 
  As a result Vanuatu feels that, while it is able to bring legislation before Parliament rather 
expeditiously, the ancillary services and related matters  cannot be dealt with quickly.  Vanuatu is of  WT/ACC/SPEC/VUT/5 
 Page 3 
 
 
 the view that a proper implementation of regulations, training, adjustment of computer systems and 
manuals will take a minimum of two years.  We therefore seek a delay on implementation of the obligations for a period of two years until 1 January 2001.  C. AGREEMENT
 ON TECHNICAL  BARRIERS  TO TRADE 
 Vanuatu seeks a time-limited delay for the a pplication of some provisions of the Agreement 
on Technical Barriers to Trade for a period of three years as from the date of Vanuatu’s accession to the WTO.   As has been mentioned Vanuatu has no techni cal regulations and these remain a contractual 
matter between buyer and seller.  As has been outlin ed in responses to questions of the Working Party 
technical regulations exist in construction and there are also food health standards.  However, given 
the rapid changes that are presently occurring with re gard to standards and th eir regulation globally, 
Vanuatu will have to take a more active role in  this area in future.  Vanuatu does not possess the 
resources to implement a national system of standards.  However, this is a very common predicament 
throughout the Pacific island region with only the la rgest and most developed of the island States 
being able to maintain national standards organizations.  As a r esult, the recent Forum Economic 
Ministers Meeting held in Fiji in July 1998 manda ted the undertaking of a study of whether trade 
facilitation measures in standards can be  achieved through a regional facility. 
  As a result, Vanuatu expects that an appropriate  regional infrastructure to deal with standards 
issues will be created in the coming three years a nd standards that will appl y in Vanuatu, along with 
other South Pacific island countries, will be establis hed through this organization.   At the end of three 
years it is expected that regional arrangements will be in existence that will provide the WTO with a 
regional focal point that will be able to undertake th e establishment of standards in a manner that is in 
full compliance with the TBT Agreement.  
 
 At present any questions regarding the limited range of technical standards can be addressed 
to the Trade Department which will act as the national focal point for all such inquiries. 
 D. AGREEMENT
 ON THE  APPLICATION  OF SANITARY  AND  PHYTOSANITARY  
MEASURES 
 As indicated in various responses to previous questionnaires circulated by the Working Party, 
Vanuatu has a very limited range of sanitary and phytosanitary restrictions.  These measures will be 
applied in full accordance with the requirements of the SPS Agreement and be based on a thorough 
scientific risk assessment.  This raises the qu estion of whether Vanuatu, as an LLDC, has the 
resources to assure the scientific capacity to implem ent its obligations under the SPS.  In the past, 
Vanuatu has relied upon pest risk assessment from othe r countries in the region such as New Zealand.  
  Vanuatu recognizes that it does not have the res ources or the capacity to undertake pest risk 
assessment nationally and, as in the case of the appl ication of TBT in Vanuatu, there is a need for 
regional co-operation.  To that end, studies have been commissioned by the Forum Secretariat and the 
Secretariat of the Pacific Communities (formerly the South Pacific Commission) on possible means 
that may be available to develop a regional capacity.  At present some pest risk assessment is 
undertaken by using the PRA of developed countr ies in the region where the product in question 
comes from a country with similar conditi ons to those prevailing in Vanuatu.  
  While Vanuatu believes that its existing SPS restrictions are WTO compatible as existing 
measures are based only upon scientific evidence of  potential risk and have  no other foundation; it 
will only be with the development of a regional scien tific facility that all WTO Members in the South 
Pacific will be able to be in complia nce with the longer term obligations. WT/ACC/SPEC/VUT/5 
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 II. ISSUES SPECIFIC TO VANUATU’S TRADE REGIME  
A. REMOVAL
 OF NON-TARIFF  MEASURES   
 Vanuatu has already indicated to  the Working Party that it has a number of NTMs that will be 
eliminated prior to accession to the WTO.  Table I below outlines the full range of NTMs and their 
WTO justification or removal.  These are outlined in the table below:  
 
Table I 
Non-Tariff Measures - Justification and/or Required Actions  
 
Item HS 96 Classification Non-Tariff Measure Justification/Timetable 
for Removal 
Screen printed T-shirts 
(with Vanuatu motif 
and embroidery) 61.09 Import licence – Ban Removal and 
replacement with tariff 
of VT 500 per unit or 
70%, whichever is greater 
Firearms and ammunition 93.04-93.06 Import licence Article XX 
Liquor and spirits 22.08 Import licence- 
automatic Article XX 
Pornographic material N.A. Import ban Article XX(a) 
Rice 10.06 Subject to import 
licence issued by Vanuatu Co-op Fed. 
with commission of 
3-4% Vanuatu commits to 
eliminate these commissions and 
remove theses NTMs 
prior to accession 
Flour 11.05-11.06 " " 
Sugar 17.01 " " 
Canned fish 16.04 " " 
Tobacco products 24.01-24.03 " " 
Plants and other products controlled by 
CITES N.A. Import licence from the 
Vanuatu Quarantine 
Service Article XX - pending 
WTO/CTE decision 
   Vanuatu will be seeking technical assistan ce from developed WTO Members to provide 
drafting assistance to bring, where this is indi cated, these measures into conformity with WTO 
obligations.  
  B. OTHER
 REFORM  MEASURES   
 In response to the consolidated list of questions provided by the Working Party 
(WT/ACC/VUT/2 and WT/ACC/VUT/4), Vanuatu provi ded in Annex II (WT/ACC/VUT/6) a list of 
laws that would have to be brought into conf ormity with its WTO obligations.  Through the 
Comprehensive Reform Programme many of the issues were addressed.  Table II below shows which of these measures have already been legislated.  Most notably changes in work permits and the 
Investment Act are either before Parliament or have already been passed.    WT/ACC/SPEC/VUT/5 
 Page 5 
 
 
 Table II 
Summary of Proposed Reforms and Measures as of June 1997  
(WT/ACC/VUT/6) 
 
Issue Relevant 
Legislation WTO Article Vanuatu 
Government 
Commitment Present Status 
Provincial 
government power to raise import duties (Qu. 10) Provincial 
Government Act (1994) Article III Provinces to be 
prohibited from taxing trade To be introduced 
Import duty same 
irrespective of nationality 
(Qus. 13 and 14) Import Duties 
(Consolidation) Act [Cap.91]  
 
" Point System for 
import duty exemption based 
on nationality to 
be abolished Abolished under 
CRP 
7% service tax 
cannot be named 
service tax and must be renamed surcharge (Qu. 19)  
 
"  Abolition Abolished in July 
1998 with reform 
of M-duty and introduction of VAT 
MSG Trade Agreement  Article XXIV Notification to 
Committee on Regional 
Arrangements To be notified 
upon accession 
Rights of sojourn of managers and 
investors Labour (work 
permits) Act 
[Cap.187] GATS Revise laws to 
increase rights of 
investors Revised under 
CRP 
   The Government of Vanuatu is proposing to bring all relevant tr ade laws into conformity with 
its WTO obligations in one session in late 1998.  Al l issues still unresolved will be dealt with at that 
time.  This is contingent upon technical assistan ce from developed WTO Members with legal drafting 
obligations.    The majority of the issues identified by the Working Party and by the Government of Vanuatu have been addressed through the Comprehensive Reform Programme.  A total of 41 pieces of legislation are or have recently been before the Vanua tu Parliament.  A list of the relevant legislation 
appears in Annex I (WT/ACC/VUT/6) and copies of the legislation are available in the Secretariat 
(Accessions Division, Room 1126) for consultation.   
III. ACTION PLAN 
 The Government of Vanuatu wishes to propose to the Working Party an action plan on 
implementation of its WTO obligations that is  based upon the above request for transitional 
arrangements.  The Working Party seeks confirma tion that all legislation is WTO compatible. 
Vanuatu has agreed to provide the Working Party w ith a copy of the relevant legislation but has 
sought some time-bound deferral of obligations as part of the special and differential treatment rights 
under the Marrakesh Agreement.   WT/ACC/SPEC/VUT/5 
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 Table III 
WTO Activities for 1998
 
 
Issue Activity Comments 
Revision of legislation as 
outlined in Tables I and II above Recruitment of legal drafters 
from Australia to prepare legislation Dependent upon technical 
assistance from Australia 
TRIPS Attendance at regional WIPO 
seminar Already completed 
SPS Regional Training Seminar to 
be provided by FAO/Forum/SPC November 
ACV Revision of customs legislation  
to assure compliance with ACV Due in November/December 
sitting of Parliament - dependent upon technical 
assistance from Australia 
ACV Regional Training Seminar for 
Customs officials on the 
Agreement on CV To be held in September 
 
  In the last quarter of 1998, the Government of  Vanuatu intends to complete all legislative 
changes that pertain to WTO obligations and then move to assure that the administration of trade 
policy is fully compliant with WTO obligations by  strengthening the releva nt departments through 
training and recruitment of appropriate staff.  Th ere will need to be recruitment of a permanent 
multilateral trade officer in the Department of Trad e as well as recruitment of staff in the Vanuatu 
Financial Services Commission to deal with obligat ions under the terms of the TRIPS Agreement.  
These staff will almost certainly require training as well the provision of ancillary services.  Table IV 
below outlines the proposed activities in 1999: 
 
Table IV 
WTO Activities for 1999
 
 
Issue Activities Comments 
General WTO Compliance Recruitment of WTO desk 
officer Funding to be approved by PSC 
TRIPS Passage of legislation in first 
quarter to make Vanuatu’s laws WTO compatible Dependent upon AIPO 
assistance 
 " National TRIPS seminar for 
private sector and training of officials Seek technical assistance from 
Australia or New Zealand 
ACV Commencement of ASYCUDA 
programme Dependent upon EC funding 
 
" National training seminar Seek technical assistance from 
Australia or New Zealand 
TBT and SPS Forum studies to be undertaken 
on regional facilities for dealing with standards and SPS Will notify to WTO by end 
1999 
   WT/ACC/SPEC/VUT/5 
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  The final year of the adjustment to full compliance with WTO obligations will be 2000 in 
which the Government of Vanuatu will seek further training and attachments for key personnel in the 
area of  WTO related areas.  In 2000 there will also  be further enhancement of the capacity of the 
Customs Department because UNCTAD’s ASYCUDA programme will be fully operational. Activities for the year 2000 are outlined in Table V below: 
 
Table V 
WTO Activities for 2000
 
 
Issue Activities Comments 
General WTO compliance Trade Policy Course attachment 
for WTO desk officer Dependent upon acceptance by 
WTO 
TRIPS Attachment of officer to 
Australia’s AIPO Dependent upon assistance 
ACV Attachment of officers, 
adjustment of computer systems to ACV valuation techniques Dependent upon ASYCUDA 
TBT and SPS Results of Forum study to be 
implemented Dependent upon agreement 
from other Forum countries and funding 
 
 
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