WTO accession
24 August 2012
Population
245,619
2011 data - Sources: UNCTAD, World Bank, WTO, UN Comtrade

Vanuatu undertook a Diagnostic Trade Integration Study (DTIS), which was validated in November 2007 with support from UNDP.  A Trade Policy Framework has subsequently been adopted in 2012 and is currently being implemented.

Description of the projects (objectives and interventions)

Under the EIF, Vanuatu is starting implementation of a Tier 1 project in support of their National Implementation Arrangements (NIAs).

Under the Integrated Framework (IF), Vanuatu benefited from one Window II project to provide legislative assistance to the Department of Customs to review the customs duties Act and related legislation, and to have a comprehensive update of the Act; support to WTO accession process; and entrepreneurship training to cooperatives. The National Implementation Unit (NIU) (and now the Trade Development Division) was also established in 2007 under the IF Window II project.

Main progresses to date

Vanuatu validated a Mainstreaming Trade Roadmap in 2011, a process supported by the EIF and UNDP. The Roadmap has subsequently been adopted by the Council of Ministers and contributed to the vision and basis for the Trade Policy Framework (TPF) as well as their Tier 1 project. The Roadmap has been a key input into Vanuatu's Trade Policy Framework, adopted in 2012. It takes forward the diagnostics from the DTIS and other studies, together with the Trade Mainstreaming Roadmap – financed through the EIF and implemented by UNDP – to provide economic development guidance.

Outcome 1: Sufficient Institutional and management capacity built in EIF countries to formulate and implement Trade related strategies & implementation plans
Outcome IndicatorBaseline2013201420152016
O1.1 Tier 1 ' Support to NIAs' project completed or under implementationN/AYes
O1.2 EIF Country with complete, up-to-date validated DTIS Action MatricesN/AN/A
O1.3 Level of capacity of NIU to perform fiduciary programme management for Tier 1 projectN/A3
O1.4 Country with up-to date trade strategiesN/AN/A
O1.5 Country with quality trade strategyN/AN/A
O1.6 Country with quality trade strategy implementedN/AN/A
Outcome 2: EIF countries mainstream trade into their national development strategies and plans
Outcome IndicatorBaseline2013201420152016
O2.1 Trade in PRSP and/or National development strategiesN/AN/A
O2.2 Existence of productive sector strategies integrating the trade dimensionN/AN/A
O2.3 Functioning public/private consultation mechanismN/AN/A
Outcome 3: Coordinated delivery of trade related resources (funding, TA etc.) by donors & implementing agencies to implement country priorities following adoption of DTIS Action Matrix
Outcome IndicatorBaseline2013201420152016
O3.1 Availability of an annual rolling implementation overview integrating all trade-related government & donor-supported activities (including gender & environment)N/AN/A
O3.2 Frequency of government and donor consultations on trade-related mattersN/AN/A
O3.3 UN CEB Cluster activities based on DTIS Matrix priorities in EIF CountriesN/AN/A
O3.4 Country with joint donor initiatives in the trade area (such as need assessment; strategy formulations; programming; pooled funding; M&E; etc.)N/AN/A
Outcome 4: EIF Countries secure resources in support of initiatives that address DTIS Action Matrix priorities
Outcome IndicatorBaseline2013201420152016
O4.1 Country with implementation plan integrating DTIS/Action Matrix priorities and indicating financing needs to be met through ODAN/AN/A
O4.2 Country where a Government budget exists for implementation of its trade strategyN/AN/A
O4.4 Number of projects funded by donors related to the DTIS Action MatrixN/AN/A
O4.4.1 Amount of projects funded by donors related to the DTIS Action Matrix (Million USD)N/AN/A

On 24 August 2012, Vanuatu became the 157th member of the WTO. The IF has been cited as a key instrument in Vanuatu's ability to successfully accede.

Vanuatu's Trade Policy Framework was adopted in 2012 building on Vanuatu's Trade Mainstreaming Roadmap.

The Plan Long Act Short (PLAS) 2009-2012 has provided the focus for Government action over the four year period. A review of the PAA undertaken in 2010/2011 enabled the MTCIT to include trade priorities identified in the Trade Policy Framework, introducing performance indicators on trade in services.

Vanuatu has policy frameworks for tourism, SMEs, industry, and cooperatives. Additionally, sectoral policies for agriculture, telecommunications, energy and foreign economic policy are under preparation and are being guided by the Trade Policy Framework.

The National Trade Development Committee (NTDC) established and operating as the core inter-Ministerial dialogue mechanism on trade, also bringing in the Private Sector, Donors and other partners.

Trade Development Division established undertaking the functions of the NIU

Vanuatu's DTIS was finalized in 2007.

Context

In the context of Outcome 1, the FP is Mr. Sumbue Antas, Director of the Department of External Trade, MTCIT, and the DF is Australia/AusAID (who took over from the EU as the outgoing DF in July 2012). The NSC functions are undertaken by the National Trade Development Committee (NTDC), which was created as a broad forum for dialogue among the Government, the private sector and civil society on trade policy issues. The NTDC is chaired by Minister of Trade, Commerce, Industry and Tourism, with the DG of MTCIT as the Vice-Chair, and aims to meet on a quarterly basis. The NTDC establishes strategies, priorities and provides recommendations to the Development Committee of Officials (DCO) for further adoption by the Council of Ministers. It also aims to be a coordinating body among DPs on trade related issues.

The NIU is directly overseen by the FP. The principle division undertaking the functions of the NIU is the Trade Development Division (TDD) in the same department. The TDD is currently staffed by the Principle Trade Development Officer and a Senior Finance Officer and will be supported by a Senior Economist and an EIF Manager. The NIU is also supported through a resident ODI fellow based in the Department, a senior ITA in the Ministry. 

Vanuatu's DTIS was finalized in 2007 with the support of UNDP.

In May 2012, Vanuatu approved a Trade Policy Framework, which takes forward the diagnostics from the DTIS and other studies, together with the Trade Mainstreaming Roadmap financed through the EIF and implemented by UNDP.

In the context of Outcome 2, the Priorities and Action Agenda (PAA) 2006-2015 sets out the Government's national priorities towards the vision of an educated, healthy, and wealthy Vanuatu. This includes creating an enabling environment for private sector led economic growth and improving the investment environment. The Plan Long Act Short (PLAS) 2009-2012 has provided the focus for Government action over the four year period. A review of the PAA undertaken in 2010/2011 enabled the MTCIT to include trade priorities identified in the Trade Policy Framework, including performance indicators on trade in services.

Vanuatu has policy frameworks for tourism, SMEs, industry, and cooperatives. Additionally, sectoral policies for agriculture, telecommunications, energy and foreign economic policy are under preparation and are being guided by the Trade Policy Framework.

Public-private dialogue mechanisms in Vanuatu are currently weak; however, in line with the Trade Mainstreaming Roadmap, the Government of Vanuatu plans to establish a National Trade Council (NTC) as a forum for high-level dialogue with the private sector on trade issues. The NTC will be chaired by the Prime Minister, will meet on an annual basis and will review progress on the Mainstreaming Trade Roadmap.

In the context of Outcome 3, the Trade Policy Framework has an implementation matrix, which outlines support from various DPs. Additionally, in July 2011, the PIFS undertook a review of TRTA in Vanuatu, which highlights support from the ADB, Australia, the EU, Japan, New Zealand and the USA.

Few formal mechanisms for donor coordination exist specifically for trade. However, the Prime Minister's office is responsible for overall aid coordination and includes thematic officers as well as M&E functions. Vanuatu is currently in the process of agreeing upon a set of principles for development cooperation named the Port Vila Declaration on Aid Effectiveness, which will be in alignment with the Cairns Compact and the Pacific Principles of Aid Effectiveness. The NTDC has recently been reconstituted and forms a basis for donor dialogue with the Government and other stakeholders.

Donors appear to be supportive of activities outlined in the Trade Policy Framework.

Finally, in the context of Outcome 4, Vanuatu is preparing an implementation matrix for the Trade Policy Framework that provides a three-year implementation plan.

Active donors in TRTA include:

• ADB (private sector development activities including focus on financial services, inter island shipping, state-owned enterprises rationalization). • Australia (infrastructure, economic reform and governance, and service sector support (telecommunications, education) as well as the support of a senior Trade Advisor).

• EU (economic growth and employment creation, human resource development (vocational training). The EU's Primary Sector Growth Support Programme includes support to trade and agriculture.

• Japan (environment/climate change and social services and sustainable economic development with a focus on infrastructure development, particularly on Port Vila's main wharf).

• New Zealand (rural development (focussing on tourism and agriculture/forestry), education and governance).

• UK (a recent Trade Advocacy Fund project has been developed and support provided through ODI fellows).

• USA (support through the Millennium Challenge Account has focused on road rehabilitation).

Furthermore, a review of TRTA support to Vanuatu was undertaken by the PIFS in July 2011.

DTIS Update

Approved Budget
200,000
Board Approval Date
24/09/2013
Disbursement
0
Expenditure Reported
0
Phase
Implementation

NIA Support - Phase 1

Starting date / End date
09/12/2013
Approved Budget
900,000
Board Approval Date
24/09/2013
Disbursement
820,000
Expenditure Reported
692,823
MOU Approval Date
26/11/2013
MOU Expiry Date
27/11/2017
Phase
Implementation

Support to the regeneration of the tourism portside and seafront precincts in Port Vila – Vanuatu Tourism Infrastructure Project

Starting date / End date
14/09/2015
Approved Budget
3,150,000
Board Approval Date
18/12/2014
Disbursement
2,106,000
Expenditure Reported
1,818,859
MOU Approval Date
25/07/2015
MOU Expiry Date
31/08/2017
Phase
Implementation

Project Manager

Mr. Ben TOFOR
NIU, EIF Manager
Ministry of Tourism, Trade, Commerce, and Ni-Vanuatu Business
George Pompidou Area, Port Vila, Vanuatu, PBM 9056
Port Vila, Vanuatu
Tel: +678 25674

NIU Coordinator

Mr. Willie LUEN
Department of Trade, Industry & Investment, Principle Officer
Ministry of Tourism, Trade, Commerce and Ni-Vanuatu Business
Private Mail Bag, Rue de Montfort, Georges Pompidou
Port Vila, Vanuatu
Tel: +678 25 674

Donor Facilitator

Mr. Matthew HARDING
Director - Governance for Growth Program
AusAID
PO Box 342
Port Vila, Vanuatu, Vanuatu
Tel: +678 27752/46, +1281.30434782609

UNDP Contact

Ms. Virisila RAITAMATA
UNDP
, Vanuatu
Tel: -

Other

Mr. Karan NAGPAL
ODI Fellow and Trade Advisor at Government of Vanuatu, Trade Advisor at Government of Vanuatu
Ministry of Tourism, Trade, Commerce and Ni-Vanuatu Business
PMB 9056
Port Vila, Vanuatu
Tel: +678 25674
Mr. Andrea GIACOMELLI
Senior Trade Adviser
Ministry of Tourism, Trade, Commerce and Ni-Vanuatu Business
George Pompidou Area, PBM 9056
Port Vila, Vanuatu
Tel: +678 25674
EIF Trade Impact Stories
Vanuatu Annual Progress Report 2013
Vanuatu Diagnostic Trade Integration Study (DTIS) November 2007
Vanuatu Action Matrix 2007
Aide-Mémoire
Glimpses from Comoros, Lesotho, Maldvies and Vanuatu
VANUATU: Trade and services, rehabilitation and promoting cultural heritages
EIF Project supports efforts to rebuild Vanuatu's vital tourism infrastructure
EIF ED Address at Launch of the Vanuatu Tourism Infrastructure Project (VTIP)
THE EIF AT THE 5TH GLOBAL AID FOR TRADE REVIEW
Stories from the ground - Chad, Lesotho, Nepal and Vanuatu
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