INTERIM ECONOMIC PARTNERSHIP AGREEMENT BETWEEN

Chairperson: H.E. Mr José VALENCIA (Ecuador)

1.1.  The 113^th Session of the Committee on Regional Trade Agreements (hereinafter "CRTA" or the "Committee") was convened in Airgram _WTO/AIR/RTA/39/Rev.1 dated 6 June 2025.

1.2.  Under Agenda Item 7.3, the CRTA considered the Interim Economic Partnership Agreement between the United Kingdom (UK) and the Pacific States, comprising Papua New Guinea, Fiji, Samoa, and the Solomon Islands, goods (hereinafter "the Agreement" or "iEPA"). The Chair stated that the Factual Presentation had been prepared by the Secretariat on its own responsibility in full consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for Regional Trade Agreements (document _WT/L/671).

1.3.  The consideration would encompass three notifications: the first notification regarding the original entry into force of the Agreement between the UK on one side and Papua New Guinea and Fiji on the other side, as well as two additional notifications about the accessions of Samoa and the Solomon Islands to the Interim EPA. Overall, preferential treatment between the UK and the four Pacific States had been in force since 1 January 2021 under either the Agreement or the Memorandums of Understanding that had preceded the accessions. Relevant notifications were made on 22 December 2022, either jointly by the Parties or by the United Kingdom alone, under Article XXIV:7(a) of the GATT 1994 as an agreement establishing a free trade area in goods (documents _WT/REG413, _WT/REG414 and _WT/REG415). The text of the Agreement and the Annexes were available on the Parties' official websites and in the WTO RTA database. The Factual Presentation (document _WT/REG413/1 - _WT/REG414/1 - _WT/REG415/1) and the Questions and Replies (document _WT/REG413/2 - _WT/REG414/2 - _WT/REG415/2) had been distributed.

1.4.  The representatives of Fiji, speaking on behalf of the Pacific States, delivered the following statement:

1.5.  I have the honour to deliver this statement on behalf of the Pacific States - Fiji, Papua New Guinea, Samoa and Solomon Islands - as the Committee considers the Interim Economic Partnership Agreement (iEPA) between the United Kingdom and the Pacific States. At the outset, we thank the Secretariat for its comprehensive Factual Presentation. We also extend our appreciation to the United Kingdom for outlining the key elements of the Agreement and for its continued partnership and constructive engagement with the Pacific region.

1.6.  Chair, the main exports of the Pacific states to the UK include animal and vegetable oils, prepared foodstuffs, machinery, and miscellaneous manufactured goods. We are pleased to note that all of our top 25 global exports enter the UK duty‑free, either under the UK's MFN regime or as a result of this Agreement. For our small island developing economies, this Agreement has ensured continued reliable and predictable access to one of our key export markets following the United Kingdom's departure from the European Union. Such access remains critical not only for the resilience of our existing export sectors, but also for fostering potential sectors that support our long‑term development aspirations for economic diversification and structural transformation. Complementing these efforts, the Agreement provides immediate and largely duty‑free access to the UK market, while allowing the Pacific states to implement our liberalisation commitments progressively in line with national development priorities. This flexibility is especially important for safeguarding vulnerable sectors and managing adjustment at a pace appropriate to our unique economic circumstances.

1.7.  Chair, the Pacific states acknowledge the commitment within the Agreement to establish a comprehensive EPA, and we therefore view this Agreement as a first step towards broader development cooperation and partnership with the United Kingdom. The Pacific States are committed to the effective implementation of this Agreement to support our shared efforts to deepen regional and global economic integration. We also take this opportunity to thank Members for their engagement at the meeting today. I thank you, Chair.

1.8.  The representative of United Kingdom delivered the following statement:

1.9.  Thank you Chair and we thank Fiji for their statement as well. We are delivering this statement in relation to the Interim Economic Partnership Agreement between the Pacific Island States of Papua New Guinea, Fiji, Samoa and Solomon Islands (here after referred to as the Pacific partners) and the United Kingdom, which came into effect on 1 January 2021. Samoa and the Solomon Islands formally acceded to the UK‑Pacific EPA in March 2022. The Agreement is open for other Pacific Island countries to join.

1.10.  The Agreement provides immediate duty-free quota-free access to the UK market for all goods from Pacific states except arms and ammunition. For the Pacific States, liberalisation of duties is more limited and phased over a longer period.  The Agreement reaffirms the strong relationship between the UK and our Pacific partners, which is built upon our long-standing historical ties and shared trading values. We are pleased that the Agreement continues to play a vital role in providing continuity and certainty for businesses that trade between our countries, and we look forward to seeing further growth in the coming years.

1.11.  The text of the Agreement largely replicates the EPA negotiated between the Pacific States and the European Union in 2016, with some transitional changes. The Agreement's objectives include enabling the Pacific States to benefit from improved market access offered by the UK under the Agreement, pending conclusion of a comprehensive agreement. The Agreement aims to establish a free trade area between the Parties based on the common interest through the progressive liberalisation of trade. In addition, the Agreement provides for setting up appropriate dispute settlement arrangements and institutional arrangements, which we anticipate establishing at a future committee meeting between all the members, at a date yet to be decided.

1.12.  The Agreement was designed with an asymmetrical tariff schedule to support Pacific partners to grow their economies in a sustainable way. For example, the Agreement gives full duty‑free and quota-free market access for goods originating from the Pacific partners into the UK market and allows for Pacific partners to liberalise their tariffs progressively and gradually over period of 15 years. The Agreement also contains non-reciprocal safeguard provisions which allow Pacific partner States to introduce measures in the unlikely event that imports from the UK harmed or caused social or economic problems to their industry, notwithstanding the Agreement's General Bilateral Safeguards provision.

1.13.  The Agreement also provides cumulation arrangements. Subject to the conditions in the Agreement, products are considered as originating in Pacific partner States or the UK when incorporating inputs from the other Party, the EU, other African, Caribbean and Pacific EPA states, and the UK's Overseas Countries and Territories. Additionally, materials subject to MFN duty‑free treatment upon importation into the UK, and materials originating in other countries benefiting from preferential duty‑free quota‑free access to the UK market, can be considered as originating in a Pacific iEPA member State.

1.14.  In addition, the Agreement allows Pacific partners to maintain regional preferences with other Pacific countries and regions without having to extend them to the UK. Development cooperation is another core element of our partnership under this Agreement, and an essential factor for the realisation of its objectives. As a reciprocal, development-focused trade Agreement, liberalisation is undertaken in a manner which supports poverty reduction through economic development. We will look to broaden development cooperation in the future through enhancing trade in goods and building capacity.

1.15.  Finally, we note that with an eye to the future deepening of this relationship, the Agreement contains a Revision Clause wherein the Parties agree to review this Agreement in its entirety no later than five years after its entry into force. The Parties will be able to pursue negotiations in the future with a view to extending their partnership. In closing, we look forward to continuing to work closely with our Pacific partners in relation to this agreement and remain deeply committed to the continued strengthening of our trade relationships.

1.16.  The representative of Samoa delivered the following statement:

1.17.  Thank you very much, Mr Chairman. I also thank the Secretariat for the Factual Presentation and reaffirm Samoa's support to the collective statement of the Pacific parties as delivered by Fiji. From a national perspective, we see the UK‑Pacific iEPA as an Agreement that has the potential to contribute to Samoa's sustainable economic development through meaningful, genuine, and respectful partnerships and investment, and support to build the capacity of Samoa goods, exports, and, of course, expand the Agreement to include services and digital trade in the near future and towards the comprehensive iEPA. We also view the UK‑Pacific iEPA as an opportunity to encourage intra-pacific trade, and it is an important platform to strengthen our UK and Pacific States mutual economic interests. And with that, I thank you very much, Chair.

1.18.  The representative of Thailand noted the following:

1.19.  Thank you, Chair, for giving me the floor and thank to the Secretariat for preparing the Factual Presentation. My delegation appreciates the UK and the Pacific States (Papua New Guinea, Fiji, Samoa and the Solomon Islands) for their comprehensive presentations of the Agreement and for providing answers to our written questions which have deepened our understanding of the Agreement. We wish for the successful implementation of the Agreement. Thank you, Chair.

1.20.  The representative of European Union noted the following:

1.21.  The EU would like to thank the Parties for the comprehensive presentation and transparency provided. We wish the Parties success in the implementation of the Agreement.

1.22.  The Chair noted the consideration of the Interim EPA between the United Kingdom and the Pacific States had allowed the Committee to clarify a number of questions and concluded oral discussion of the RTA in accordance with paragraph 11 of the Transparency Mechanism. Any delegations wishing to ask follow‑up questions were invited to forward submissions in writing to the Secretariat by 24 June 2025 and Parties were asked to submit replies in writing by no later than 8 July 2025. In accordance with paragraph 13 of the Transparency Mechanism all written submissions, as well as minutes of the meeting, would be circulated promptly, in all WTO official languages, and made available in the WTO database on RTAs.

1.23.  The Committee took note of the comments made.

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