Trade Agreements
Solomon Islands is a party to various international trade agreements. These are agreements between two or more different governments which define certain rules governing the way that products that are bought and sold internationally are treated.
More information about trade agreements can be found on Wikipedia.
One of the most common things to be included in trade agreements is a limit on the amount of import duty a government can charge on goods coming into the country. Import duty is a tax charged by a government when goods cross the border coming into their territory. At present, Solomon Islands Government charges a 10 per cent import duty on most goods. Many trade agreements define the maximum level of duty that could be charged.
Solomon Islands is a party to several trade agreements which limit import duties:
- The General Agreement on Tariffs and Trade, one of the World Trade Organization agreements.
Solomon Islands is also a party to other agreements in trade-related areas, which do not include binding commitments on Solomon Islands limiting the country's import duties:
- The South Pacific Regional Trade and Economic Cooperation Agreement between Forum Island Countries, Australia and New Zealand; and
- The Pacific Agreement on Closer Economic Relations between Forum Island Countries, Australia and New Zealand.
