An effective framework for trade policy in Tonga

Tonga’s trade policy framework has gradually evolved over the past two decades. This evolution was important as in the past ten years regional and multilateral economic integration initiatives have intensified in the Pacific region. Pacific island states have responded with various level of effectiveness. The ability of Pacific island governments to participate in international trade negotiations has been the centre of attention of international institutions. Emphasis has been placed on capacity building of government officials to deal with highly legalistic regional and multilateral trade arrangements. However, less attention has been given to the effectiveness of the national trade policy architecture for implementing trade policy. This short paper discusses key challenges that have confronted the Tongan trade policy framework over the past ten years and how the policy framework has evolved in response to the pressures. The paper argues that there is room for improvement and a new, consolidated policy framework is suggested based on the lessons learnt.