'Friendly islands' in an unfriendly system: Examining the process of Tonga's WTO accession

Abstract

Tonga became the 151st member of the World Trade Organization (WTO) in July 2007. This article considers the issues that Tonga faced during its WTO accession process, and the potential impact of the reforms it has made in compliance with the terms of its accession. It notes that WTO membership may offer some benefits to Tonga, including improved market access for its exports and the provision of technical assistance. The taxation and regulatory reforms necessitated by accession might also have some positive development effects. However, this article argues that the costs of WTO accession outweigh these benefits. This is because Tonga faced numerous challenges during its accession process, which led it to agree to substantial trade concessions. In addition, the 'special and differential' (S&D) treatment provisions intended to assist developing countries like Tonga once they become WTO members are inadequate. While this article focuses on Tonga, the issues raised are relevant to other Pacific SIDS engaged in WTO accession negotiations, including Vanuatu and Samoa. © 2010 The Author. Asia Pacific Viewpoint © 2010 Victoria University of Wellington.