72750 v1 World Trade Indicators 2009/10 Samoa Trade Brief Trade Policy start negotiating PACER plus, a free trade agreement that would include Australia and New Zealand as well During the 1990s, Samoa instituted major trade policy as the Forum Island Countries and that would cover and tax reforms. The 1994 Value Added Goods and goods, services, and investment.3 The EU is currently Services Tax (VAGST) laid the foundation for negotiating a comprehensive regional Economic significant reductions in tariff rates. In the late 1990s Partnership Agreement (EPA) with all 14 signatories tariffs were reduced on most business inputs from of PICTA. In the meantime, Samoa continues to between 20 and 42 percent to 10 percent, and on most benefit from the “Everything But Arms� initiative consumption goods from between 50 and 60 percent under which its exports have duty-free and quota-free to between 10 and 20 percent. Tariff reforms have access to the EU market. continued as part of the WTO accession process. Samoa has continued progress on structural reform, including liberalization of telecommunications and Behind the Border Constraints financial sectors. In terms of the conduciveness of its institutional environment to business, Samoa is ranked 57th of 183 External Environment countries in the Ease of Doing Business index for 2009. With relatively low cost per container but long The simple average of the rest of the world tariff faced time to export and import, the country ranks 88th in by Samoan exports is 10.1 percent. When taking into the Trading Across Borders subcategory of the index, account the volume of exports it is 8.7 percent, with which looks at the extent of trade facilitation in the the rate faced by agricultural goods and non- country. The number of required documents to export agricultural goods significantly different, at 0.3 and 9.2 and import into and out of the country are comparable percent, respectively. Over the course of 2008, the real to the regional averages. Samoa faces limitations effective exchange rate of the Samoan tala appreciated because of its geographical isolation. These include by 4.8 percent, making exports less competitive. limits on available resources and infrastructure and also dependence on imports for many necessities Samoa has ratified the Pacific Island Countries Trade including fuel and food (Samoa is dependent on Agreements (PICTA), together with 10 other countries imports for 100 percent of cereal consumption).4 out of 14 members of the Pacific Islands Forum (the Forum Island Countries) that signed it in 2001.1 PICTA, an agreement for free trade in goods, and, in Trade Outcomes future, services, falls under the broader Pacific Agreement on Closer Economic Relations (PACER) During 2008, Samoa’s total trade grew by less than that in addition to the Pacific Island Countries also one percent in nominal U.S. dollar terms.5 The includes Australia and New Zealand.2 In August 2009, Samoan economy is heavily reliant on agricultural leaders of the Pacific Island Forum have agreed to exports. Fresh fish, which has been rising as a share of all exports in recent years, comprised 77.3 percent of all exports in July 2009.6 Taro was the second largest export at 6 percent in the same month, down from 9 Unless otherwise indicated, all data are as of August 2009 percent in June 2008.7 Its largest export market is and are drawn from the World Trade Indicators 2009/10 American Samoa, which mostly imports fish.8 Exports Database. The database, Country Trade Briefs and decreased in 2008 by 25 percent, driven by a fall of Trade-at-a-Glance Tables, are available at 42.6 percent in the last quarter of the year over the http://www.worldbank.org/wti. same quarter in 2007. In the first two quarters of 2009, the price of fish rose, but Samoan fish exporters still If using information from this brief, please provide the experienced considerable decreases in the value of following source citation: World Bank. 2010. “Samoa exports due to a fall in demand to nearly half its value Trade Brief.� World Trade Indicators 2009/10: Country Trade from the previous year. As of early 2009, the tourism Briefs. Washington, DC: World Bank. Available at industry does not appear to have been negatively http://www.worldbank.org/wti. World Trade Indicators 2009/10 Samoa Trade Brief affected by the global recession,9 contributing to a rise References in total exports in the first quarter of 2009 despite the decline in fish exports. In July, the number of tourist Bilaterals.org. April 2009. “PACER & PICTA.� arrivals reached its highest level for 2009, with the Bilaterals.org. June 29, 2009. . tourists.10 Since Samoa is largely dependent on imports Central Bank of Samoa. August 20, 2009. “Foreign Trade for its supply of both food and fuel, the increases in Report: Export by Commodity.� June 2009 . in the value of imports of 2.3 percent in nominal U.S. Economist Intelligence Unit (EIU). 2008. Country Profile dollar terms in 2008. Since that time prices have fallen 2008: Samoa. EIU. July 23, 2009 period in 2008.11 ———. 2009. Country Report: Samoa. EIU. July 23, 2009 . global economic downturns due to the importance of International Monetary Fund (IMF). June 2007. “Samoa: remittances and tourism, which combined account for Selected Issues and Statistical Appendix.� IMF almost half of GDP.12 Remittances were 25.8 percent Country Report No. 07/184. IMF. June 30, 2009 of GDP in 2008. Most of these are from Samoans . United States, and Australia.13 These remittances ———. August 2009. International Financial Statistics provide foreign exchange necessary to allow Samoa to maintain its large trade deficit (imports were 16 times (Country Tables). IMF. July 2009. 2009, gross private remittances declined marginally, by Kelsey, Jane. April 2004. “Big Brothers Behaving Badly: 0.2 percent, due to a substantial fall in the number of The Implications for the Pacific Islands of the motor vehicles transferred to Samoan households. Pacific Agreement on Closer Economic Relations FDI in 2007 was 0.5 percent of the country’s GDP. (PACER).� Pacific Network on Globalisation (PANG). . Notes New Zealand Ministry of Foreign Affairs and Trade. 1. Bilaterals.org, April 2009. December 3, 2008. “Samoa.� . April 2004, p. 18. Pacific Islands Forum Secretariat. September 10, 2009. 3. Pacific Islands Forum Secretariat, August 2009. “Regional Trade.� . 5. All data in this section is from IMF, 2009 (except ———. August 2009. “Fortieth Pacific Islands Forum: remittances data) unless otherwise noted. Forum Communique.� September 10, 2009. 6. EIU, 2008, p. 15. . 2008. World Bank. June 5, 2008. “Addressing the Food Crisis: 9. EIU, 2008, p. 12. The Need for Rapid and Coordinated Action.� 10. Central Bank of Samoa, July 2009, p. 9. World Bank, Washington, DC. 11. Central Bank of Samoa, July 2009, p. 6. 12. IMF, 2007, pp. 5. 13. New Zealand Ministry of Foreign Affairs and Trade, 2008.