DTIS, Volume I - Enhanced Integrated Framework (EIF)

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The preference offered by Japan on dried skipjack applies to both developing and leastdeveloped countries, so a change in status will not affect this preference. As an LDC, Maldives’ exports of canned tuna enter the EU free of duty. This product now represents around 15 per cent of total exports and is therefore very significant. 21 However, developing country exports to the EU of canned tuna attract tariffs of 12 per cent. Analysis of the relative competitiveness of canned fish production in Maldives indicates that Maldives already sells in Europe at above world (duty paid) price in the order of US$2-3 per case of 24 cans. The higher Maldives price is also partly a function of quality. But if an additional 12 per cent was required to be paid in duty, current EU importers may well source cheaper supplies. Fresh/chilled tuna loins constituted 4 per cent of exports in the first half of 2005, of which the vast majority were destined for the EU market. At present, these exports enter duty free but will attract the MFN rate of 18 per cent when the Maldives loses LDC status. Current exporters believe it would be very difficult for them to compete should the MFN duty be payable, due to the high production and freight costs. Over and above these very real losses, Maldives will experience a loss of “potential” where future export development and diversification could be constrained by the lack of LDC preferences. Already, Maldives has “natural” disadvantages relating to high transport costs with high production costs (all electricity is generated from imported oil), high cost of inputs to production (all inputs have to be imported) and high cost of transport of the final product. Without the additional preferences accorded to LDCs, Maldives will be less able to produce and sell competitively. This is a serious consideration since, after graduation, the Maldives will no longer be able to benefit from the duty-free-quota-free market access agreement for LDCs that was reached at the WTO’s Hong Kong Ministerial Conference in December 2005. A second area of possible loss from graduation is technical cooperation. Several WTO agreements encourage trade-related technical assistance and support to least developed countries to enable them to fulfill their obligations. Accordingly, there is a real risk that after graduation, Maldives would have reduced access to technical assistance and support. The third consequence concerns WTO agreements. In some of these agreements, the benefits for LDCs take the form of non-binding commitments. These are provisions, which simply encourage developed members to provide “special” consideration to these countries without any specific details or legally required commitments. These include Article XI (2) of the Marrakech Agreement; Article 10 (1) of the SPS Agreement; Article 12.8 of the Technical Barriers to Trade Agreement; Article 3 (3) of Agreement on Import Licensing Procedures; Article IV (3) of GATS; 6 (d) of Annex on Telecommunications in GATS; and Article 66(2) of TRIPS. 21 15% of total exports for first half 2005 and approximately 16% of non-textile exports in the previous four years 37
Several provisions such as Article 11.8 of the Technical Barriers to Trade Agreement and Article 67 of the TRIPS Agreement encourage support and provision of technical assistance without any commitments. A number of provisions allow longer phasing in periods for least-developed countries of specific commitments, but in each case, these periods have expired: Article 14 of the SPS Agreement; Article 5 (2) of the TRIMS Agreement and Article 27.3 of the Subsidies Agreement. Finally two provisions are the same for developing countries as they are for least developed countries, but least-developed countries have a specific mention: Article 8 of the Understanding of Balance of Payments Provisions and Article 5(3) of the TRIMS Agreement. This leaves six areas where least-developed countries receive specific and concrete benefits greater than other developing countries. Under Article 15 (2) of the Agreement on Agriculture, least developed countries are not required to reduce subsidies or agricultural import tariffs. Since Maldives operates no agricultural subsidies (production or export), this is not an issue. Maldives has already bound 100 per cent of its tariffs, including agriculture. These bound rates are generally substantially higher than applied rates, so that any commitments to reduce bindings will have little real effect in the short and medium term. Under Article 6.6 (a) of the Agreement on Textiles and Clothing, least developed countries enjoy more preferential treatment, but this agreement has since expired and has no relevance. Under Article 27 (2) of the Agreement on Subsidies and Countervailing Duties, the prohibition on the use of export subsidies is not applied to Annex VII countries (least developed). However, Maldives does not have any export subsidies and is unlikely to have any in the future, so this provision has little relevance. Article 66(1) of TRIPS Agreement provides a 10-year implementation period for LDCs that can be extended (subject to agreement from the Council on TRIPS). The Council has granted further extensions to LDCs that have not yet fully implemented their commitments. However, the laws relating to TRIPS have been drafted in the Maldives and are currently being translated into Dhivehi. Parliament is expected to pass this legislation during 2006. Article 24 (1) and (2) of the Understanding of Procedures Governing the Settlement of Disputes provides for more consideration to be given by members to LDCs and procedures which allow arbitration by the DG of WTO to resolve any dispute amicably, in the interests of a least-developed country. LDCs have less frequent trade policy reviews and the WTO Secretariat provides technical assistance in the preparation of the government’s Report. Since most developing 38
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FINAL R E P O R T Volume 1 MALDIVES
Page 3 and 4:
GSP HACCP HDFC HDI HIES HH HRD HS I
Page 5 and 6:
TRIPS TRTA TSA TTMP UAE UK UNCTAD U
Page 7 and 8:
CHAPTER 6: CUSTOMS SERVICES AND TRA
Page 9 and 10: major stakeholders as the basis of
Page 11 and 12: C. ECONOMIC TRENDS Buoyant GDP grow
Page 13 and 14: WTO members (through the Committee
Page 15 and 16: The recommendations cover these iss
Page 17 and 18: Requirements Action no. Action reco
Page 25 and 26: government, and lawmakers are elect
Page 27 and 28: . 4
Page 29 and 30: to Sri Lanka. However, by 2004 the
Page 31 and 32: This relatively high proportion of
Page 33 and 34: On an annual basis, total NFA of th
Page 35 and 36: elow provides data on the public in
Page 37 and 38: According to the estimates prepared
Page 39 and 40: Table 2.8: Damage to agricultural f
Page 41 and 42: II. Imports - Merchandise There has
Page 43 and 44: the relatively high rate of unemplo
Page 45 and 46: A. DESTINATION OF MERCHANDISE EXPOR
Page 47 and 48: Penetration of international market
Page 49 and 50: Overall, the importance of foreign
Page 51 and 52: on goods deemed luxury goods (e.g.
Page 53 and 54: the Japan and USA markets. 11 Fish
Page 55 and 56: The Modalities provide that the res
Page 57 and 58: emoved. However, in order to provid
Page 59: EBA. Appropriate transition arrange
Page 63 and 64: CHAPTER 4 POVERTY REDUCTION AND HUM
Page 65 and 66: Table 4.2: Poverty Gap Ratios per R
Page 67 and 68: produced locally and are readily av
Page 69 and 70: commerce, information and communica
Page 71 and 72: Table 4.3: Fishery Sector employmen
Page 73 and 74: This also requires policies that ta
Page 75 and 76: with routine functions of administe
Page 77 and 78: Applying for a license to invest in
Page 79 and 80: E. MINISTRY OF FISHERIES, AGRICULTU
Page 81 and 82: K. PRIVATE SECTOR STAKEHOLDERS Priv
Page 83 and 84: Overall, it is estimated that the c
Page 85 and 86: The cash is held and disbursed by t
Page 87 and 88: difficult to reach given the except
Page 89 and 90: system of micro-credit intermediari
Page 91 and 92: F. LAND, RAW MATERIALS AND SUPPLIES
Page 93 and 94: B. LABOUR MARKET REFORM About 44 pe
Page 95 and 96: Appendix The mixed record of the Ma
Page 97 and 98: legislation incorporates the initia
Page 99 and 100: CHAPTER 6 CUSTOMS SERVICES AND TRAN
Page 101 and 102: Maldives Port Authority • Respons
Page 103 and 104: the correct amount of customs duty
Page 105 and 106: suspense procedures, thus eliminati
Page 107 and 108: A new domestic terminal at MIA will
Page 109 and 110: There is need to clarify MAC’s na
Page 111 and 112:
Changes in the role and structure o
Page 113 and 114:
Significant improvements have been
Page 115 and 116:
CHAPTER 7 THE TOURISM SECTOR Chapte
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British market in 2001. In 2004, be
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Similarly, considerable demand was
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for imports of support infrastructu
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government revenues from the supply
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number of trainees that have been t
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established as a quality tourism de
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Maldives' unspoiled marine environm
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The Faculty works very closely with
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TOURISM ACT A key objective of the
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HRD studies and conduct of necessar
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D. ESTABLISH AN ENABLING BUSINESS E
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Main Recommendation No. 5: review a
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Main Recommendation No. 6: Scale-up
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CHAPTER 8 FISHERY SECTOR Chapter Pl
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processing under-performing more th
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per cent - see Table 8.4. The secto
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In the light of these market trends
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documentation, and administration.
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monitoring and evaluation dates fro
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and catering industry chefs demand
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It is expected that the trial fishe
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• Can seaming and retorting; •
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DTIS, Volume I - Enhanced Integrated Framework (EIF)

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