A three days workshop on the World Trade Organization Notification Requirements began at Tanoa International Hotel, Nuku’alofa on 15 April.

The World Trade Organization WTO’s Notification Requirements is an instrument that it introduced to ensure transparency in multilateral trading, through the filing of notifications made by each Member, and reviewed by the relevant bodies of the WTO.

Dr Edwini Kessie, a director of the WTO Agriculture and Commodities division, who was in Tonga for the workshop, stressed the importance for Tonga to notify the WTO, at least six months before it implemented legislation or a Cabinet decision. He pointed out that the last time Tonga notified the WTO on an issue relating to its Trade Policy was during 2010-11.

He stressed that the objective of the workshop is to go through relevant obligations, and assist Tongan officials so that they can actually do the necessary notification.

“I think Tonga should be able to fulfil its obligation, and we hope that after this workshop, Tonga clear the backlog that it has got.”

Deputy Prime Minister, Hon. Semisi Kioa Lafu Sika, the guest of honour also spoke at the workshop opening.

Rules of trade

The World Trade Organization WTO is the only global international organization, dealing with the rules of trade between nations.

In 2016, the WTO had 164 members. Tonga became a WTO member on 27 July 2007.

According to a report of a review of Tonga’s Trade Policy by the WTO in 2014; Tonga faced a ‘backlog of reforms’ that are required to modernize and streamline its legal and regulatory frameworks for economic development.

Tonga’s imports were reported to outstrip its exports by at least 10:1 annually, and over 50% of its imports are for fuel and food.

Tonga derives an increasing share of government revenue from Excise Taxes and a broad-based Consumption Tax. In 2012-13, government raised almost $55 million in revenue from the consumption tax on imports and domestic production, compares with nearly $30 million from Excise Taxes and $14.7 from import duties.

The WTO also noted in its 2014 report that Tonga faced a backlog of reforms to modernize and streamline its legal and regulatory frameworks, including in the area of agriculture and related Sanitary/Phytosanitary measures, air and maritime transport and telecommunications.