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Table 3 Summary of WTO Commitments and Vanuatu’s accession package, the relevant trade and investment principles that can influence on Nutrition Policy Space and anticipated impacts on Vanuatu’s national food environment

From: Analysing the impact of trade agreements on national food environments: the case of Vanuatu

Commitments under the WTO agreements

Relevant principles

Anticipated impacts on Vanuatu’s food environment

1. Not carry out pre-shipment inspection of imports with no plan to do so.

Harmonisation and international standards

Found in:

WTO: GATT, Agreement on Preshipment Inspection Article 2 & 3

Pre-shipment checks are considered a technical barrier to trade. Vanuatu does not carry out any preshipment inspection with no intention of doing so increasing the risk of receiving poor-quality food products that may hinder the enforcement of any food composition laws.

2. Not apply any anti-dumping, countervailing or safeguard measures until it had implemented appropriate laws consistent with WTO agreements.

Harmonisation and international standards

Found in:

WTO: GATT Article 6, Agreement on Subsidies & Countervailing Measures

With the intent to enable a government to act against dumping where it is hurting domestic industries or to cope with a sudden surge of foreign goods, Vanuatu agreed to not applying any of these measures. This increases the risk of low-priced food imports that may hinder the enforcement of domestic food regulations.

3. No intention of being part of the Government Procurement Agreement (GPA)

Transparency/Notification

Found in:

WTO: Government Procurement Agreement, TBT Article 2.9

GATS Article 3

While being first and foremost a trade instrument, the GPA is an important tool in addressing two key governance challenges: (i) ensuring integrity in the procurement process (preventing corruption on the part of public officials) and (ii) promoting effective competition among suppliers [28]. When neither of these are regulated, it can impact on public procurement processes including public food procurement (production, productivity, diversification, non-farm activities, social protection and nutrition-specific interventions) and targeted agricultural interventions. As such, public food procurement strategies to promote agricultural development and improve food security and nutrition may not offer optimal nutrition where pro-competitive, transparency-enhancing internal reforms are absent.

4. Submit all notifications required by any agreement

Transparency/Notification

Found in:

WTO: TBT Article 2.9

GATS Article 3

This is relevant and applicable to Vanuatu’s food environment. Any new or amended food rules/policy introduced will require appropriate notification to be given where there is a technical barrier to trade or services.

5. Apply an average final bound rate of 39.7% (43.6% for agricultural products and 39.1% for industrial products) and binding all of its tariffs.

Harmonisation and international standards

Found in:

WTO: TBT Article 2.4

Agreement on Agriculture

Tariffs can affect the flow of trade. While Vanuatu has agreed to bind all its tariffs, the relationship of tariffs on the influx of food imports is not straightforward. Vanuatu will need to consider other complementary actions, for instance, as a source of revenue generation, is revenue from tariffs on imported foods earmarked for public health promotion efforts.

6. Having no export subsidies applied to agricultural products from 2013 to 2019.

Harmonisation and international standards

Found in:

WTO: TBT Article 2.4

Agreement on Agriculture Article 8 and 9

For underdeveloped agricultural sectors like Vanuatu, moderate levels of border protection may be appropriate to promote productivity and provide the stability needed for producers to react positively to incentives. Export subsidies have been used to promote market access in import markets so Vanuatu’s commitment not to have any can safeguard against cheap food imports below production costs entering and undermining local producers.

7. Applying import duty exemptions for goods imported for agriculture, horticulture, livestock and forestry. These include plant machinery, materials, equipment, spare parts and accessories. In addition to this, agricultural incentives are offered to agricultural producers and aid-financed programmes of domestic support for agriculture within the de minimis ceiling of 10%, given Vanuatu’s LDC status.

Non-discrimination

MFN and National Treatment

Found in:

WTO: GATT Art.1.1 (MFN), Art 3.2 & 3.4. General exception XX(b) and Chapeau; TBT Art.2.1; SPS Art 5.5

Necessity

Found in:

WTO: Gatt Gen. exception XX(b); TBT Art 2.2; GATS Art.14

Harmonisation and international standards

Found in:

WTO: TBT Article 2.4

As an incentive, import duty exemptions can have a critical role in kick-starting agricultural productivity improvements and plays a role more broadly in promoting better outcomes in most dimensions of food security. This augurs well for Vanuatu’s Ministry of agriculture, livestock, fisheries, forestry and biosecurity and supports efforts of growing local, eating local and safeguarding for food nutrition and security.

8. Undertake specific commitments on 10 service sectors1 and 72 sub-sectors

Regulatory coherence

Found in:

WTO: TBT Article 2.7, 2.9 & 2. 10

GATS

The encouragement of FDI increases the availability of processed and ultra-processed foods and ultimately the consumption of these.

9. Progressively liberalising its business environment with few restrictions on investment to promote small local businesses.

Harmonisation and international standards

Found in:

WTO: TBT Article 2.4

GATS

Regulatory coherence

Fair and Equitable Treatment

The encouragement of FDI to promote local businesses will contribute to an increase in food preparations via domestic industries and the increased consumption of ultra-processed foods produced locally.

  1. 1Business; communication; construction and related engineering; distribution; education; environment; finance; health and social (hospital services & social services); tourism and travel-related; and transport services